1376337 (4.25

H A U R A K I D I S T R I C T C O U N C I L 2015-25

HAURAKI DISTRICT COUNCIL HAURAKI LONG TERM PLAN Volume 1 of 2

shaping our future

HAURAKI DISTRICT COUNCIL 2015-25 Hauraki Long Term Plan

Table of Contents – Volume 1

Introduction and Overview A - 1 Message from the Mayor ...... A – 2 Audit New Zealand’s Opinion on the 2015-25 Hauraki Long Term Plan...... A – 4 What is the Hauraki Long Term Plan? ...... A – 7 What you can expect to see in this Plan ...... A – 9 Supporting Documentation ...... A – 11

Strategic Direction B - 1 Purpose and Role of Local Government ...... B – 2 Council Overview ...... B – 3 Community Outcomes ...... B – 4 Financial Strategy 2015-25 ...... B – 8 Infrastructure Strategy 2015-45 ...... B – 20 Financial and General Assumptions ...... B – 49

Submission Process and Consultation Outcomes C - 1 Submission Process ...... C – 2 Consultation Outcomes ...... C - 3 Key Capital Works Projects 2015-25 ...... C - 6

Decision making processes D - 1 Summary of the Council’s decision making and consultation approach ...... D – 2 Summary of the Council’s Significance and Engagement Policy ...... D – 3 Māori participation in decision making ...... D – 5

Group of Activities E - 1 Introduction to Group of Activities ...... E – 1 Governance and Leadership ...... E – 5 Roads and Footpaths...... E – 34 Water Supply ...... E – 45 Wastewater ...... E – 57 Land Drainage ...... E – 67 Stormwater ...... E – 76 Solid Waste ...... E – 84 Community Services ...... E – 91 Community Development ...... E – 112 Regulatory Services ...... E - 125

Statutory Reporting F - 1 Council-Controlled Organisations ...... F – 2 Council Organisations (those exempt from Council-Controlled Organisation reporting requirements) ...... F – 5 Variations between the Council’s Joint Waste Management and Minimisation Plan and the 2015-25 Hauraki Long Term Plan ...... F – 7 Variations between the Council’s Assessment of Water and Sanitary Services and the 2015-25 Hauraki Long Term Plan ...... F – 8

Appendices G - 1 Appendix 1: Council Committees, Council Controlled Organisations, Council Organisations and Management Team ...... G – 2 Appendix 2: Our Hauraki ...... G – 6 Appendix 3: List of Bylaws, Policies, Strategies and Plans ...... G – 12 Appendix 4: Legislation ...... G – 16 Appendix 5: List of Council’s Assets ...... G – 20 Appendix 6: One Network Roading Classification - Hauraki District Transition Plan ...... G – 22 Appendix 7: Glossary ...... G – 27

Table of Contents – Volume 2

Financial Statements H - 1 Prospective Statement of Financial Position ...... H – 2 Prospective Statement of Changes In Net Assets/Equity ...... H – 3 Prospective Statement of Comprehensive Revenue and Expense ...... H – 4 Prospective Cash flow Statement...... H – 5 Prospective Reserve Funds Statement ...... H – 6 Notes to the Financial Statements ...... H – 7 Balanced Budget Statement ...... H – 23 Capital Works Schedule ...... H – 24 Financial Prudence Benchmarks ...... H – 33

Funding Statements I - 1 Revenue and Financing Policy ...... I – 2 Prospective Funding Impact Statement for 2015-25 (whole of Council) ...... I – 32 Funding Impact Statement – Rating Implications ...... I – 33 Sample Properties ...... I – 43 Summary of rating changes by rate type ...... I – 45

2015-25 Rates Remission Policies J - 1 Rates Remissions – Natural Disasters and Emergencies ...... J – 2 Remission of Penalties ...... J – 3 Remission of Uniform Annual General Charges on Contiguous Rating Units in Separate Ownership, Used Jointly as a Single Entity ...... J – 4 Postponement of Rates Policy ...... J – 5 Remission of Excess Water Rates ...... J – 6 Remission of Water Rates to Particular Rating Units ...... J – 7 Remission of Rates Assessed in Error ...... J – 8 Remission of Rates on Multiple Owned Maori Freehold Land ...... J – 9 Remission of Wastewater Rates Assessed on Educational Establishments ...... J – 10 Rates Remissions - Rating of Low Value Land Units ...... J – 11 Rates Remissions – Voluntarily Protected Land ...... J – 12 Rates Remissions – Community, Sporting and other Organisations ...... J – 13 Rates Remissions of Multiple Dwellings in One Complex ...... J – 14

Introduction and Overview

What topics are covered in this section?

 Message from the Mayor  Audit New Zealand’s Opinion on the 2015-25 Hauraki Long Term Plan  What is the Hauraki Long Term Plan?  What you can expect to see in this Plan  Supporting documentation

SECTION

Introduction and Overview A - 1

Message from the Mayor

Hauraki District is, and will continue to be a great place to live. Our attributes are plentiful; with a great central location, rich fertile farming soils, beautiful scenic vistas, tourist spots, and a welcoming community. We are passionate to keep it this way, and through a number of initiatives, we believe that this can be achieved.

However, we have our challenges. Issues such as rates affordability, low economic growth in our small communities, little or no population growth and an ageing population are being faced by our District. How we respond to these challenges will determine and shape our future.

We are not alone with these issues and like many other rural Districts we are thinking strategically about how we are going to manage them. We want to allow our community to age positively, provide services affordably and ensure vibrancy and economic growth continues to ensure the longevity of our District and its townships.

This 2015-25 Hauraki Long Term Plan sets out our initiatives and aspirations to mitigate these challenges while providing our core services in a ‘business as usual’ manner. We have focused on planning for affordability, and have looked keenly at our rate distribution to apportion both general and targeted rates fairly across our District’s ratepayers.

With an average annual rates increase excluding water of 3.7% over the life of this Plan, we believe that we have achieved what we signalled three years ago in our Financial Strategy. We responded to concerns about our debt levels and whilst still prudently reducing our debt, we are now planning to do so at a slightly slower pace. This in turn will achieve smoother rates increases and allow our community to plan ahead for this household expense. We continue to constantly strive to manage our business to reduce unnecessary rate increases in the future.

2015 sees the culmination of an extensive upgrade programme for our water and wastewater treatment plants. This is a major achievement for the Hauraki District, and we are quite unique amongst New Zealand councils in the situation we now find ourselves in. Council set in place debt caps in order to ensure this work was affordable, and to ensure intergenerational equity. The infrastructural focus for the next thirty years therefore, is expected to be on maintenance, operations and renewals for parts of our reticulation network.

Emerging from a significant asset replacement and upgrade programme means that we can focus interests on other ways in which to help our community front up to the challenges described above. Economic growth has been identified as a key area to address this, and the consultation we have had with our community over the last few years has shown that there has been for the most part, support for this direction.

The Hauraki Rail Trail, proposed Kerepehi Food Hub, and residential subdivisions have all been key initiatives that we have focused on to encourage economic and population growth. To assist our ageing population and therefore to encourage positive ageing we are also actively seeking investors who have a focus on retirement initiatives.

Thank you to those who took the time to submit during the consultation phase of this Plan. We specifically consulted on our 2015-25 Financial Strategy and new 2015-45 Infrastructure Strategy and at the same time we also asked the community what it thought about our current and proposed economic development initiatives and overall direction.

A - 2 Introduction and Overview

The Council currently spends approximately $1million per year on economic development initiatives and as a result of the consultation process, we have decided to continue with our current approach. Essentially, we have agreed to continue with our current activities including our support to Destination Coromandel, township promotional organisations and information centres.

Work continues in earnest on collaborative projects within the Waikato region. Both at a Mayoral level and staffing level there has been increased emphasis on this approach along with opportunities for shared services. The four work streams of the Waikato Mayoral Forum (Roading, Economic Development, Planning and Governance and Waters) are progressing well, and the development of a Spatial Plan for the Waikato is also progressing. As the local government climate is continually changing and talk of amalgamation continues, we feel that it is prudent to collaborate with other local authorities and develop shared initiatives whilst maintaining ownership of local decisions.

I would like to thank you, on behalf of the Council, for taking the time to read this document and we look forward to working with you over the next 10 years.

JP Tregidga, JP, MNZM Mayor

Introduction and Overview A - 3

Audit New Zealand’s Opinion on the 2015-25 Hauraki Long Term Plan

[To be inserted allow three pages]

A - 4 Introduction and Overview

Introduction and Overview A - 5

A - 6 Introduction and Overview

What is the Hauraki Long Term Plan?

The 2015-25 Hauraki Long Term Plan (or HLTP) is the Council’s key strategic planning document that must be developed every three years. The Plan sets out what the Council proposes to do and what the Council proposes to spend, not only in the coming year, but over the next 10 years; with the most detail provided for in the first three years of the Plan. The Plan provides accountability to the community, and gives a long-term focus for the Council’s decisions and activities.

The Plan also sets out how the Council proposes to contribute to community well-being over the next 10 years, and how the Council will work towards achieving its goals for the community.

The Hauraki Long Term Plan provides a framework for linking all of Council’s other plans, policies and strategies together, such as the Annual Plan, the District Plan and Asset Management Plans.

With the adoption of the 2015-25 Hauraki Long Term Plan Council’s work programme for the following three years has largely been set. This means that if the Council wants to make a significant change away from what it said it would do in this Plan, it will need to consult with the community regarding that change prior to implementing it.

An Annual Plan is produced in the years between Hauraki Long Term Plans, to indicate to the community any proposed variations from what was originally planned in the Hauraki Long Term Plan for that year, on those variations. Annual Plans cover the period beginning 1 July to 30 June of the following year, and are the annual budgeting statement for that year only. Annual Plans will next be prepared in 2016/17 and 2017/18, as shown in the diagram below. For the year 2015/16 the Hauraki Long Term Plan serves as the Annual Plan, therefore a separate Annual Plan is not required.

Hauraki District Council Planning Cycle

2015 2016 2017 2018 2019 2020

2015-25 Hauraki Long Term Plan 2015-25 Hauraki Long Term Plan First three years in detail Up to ten years summary

2016/17 Annual Plan

2017/18 Annual Plan

2018-28 Hauraki Long Term Plan First three years in detail

2019/20 Annual Plan

Introduction and Overview A - 7

Although the 2015-25 Hauraki Long Term Plan is the Council’s best estimate (at the time of publication) of what it foresees will take place in the coming 10 years, the Council is not legally obliged to undertake all works stated in the document, and it can consider additional works in subsequent years that are not addressed in the Plan. If there is a significant change proposed to the programmes and projects detailed in the Long Term Plan Council can make an amendment to the Long term Plan; but only after a public consultation process. Minor decisions which are inconsistent with the Plan can be made, as long as the decision and the reasons are made fully known.

Supplementary note to readers

It is important to remember that because the 2015-25 Hauraki Long Term Plan is prepared to cover a 10 year period, the results that are presented in subsequent Annual Reports may vary from the information presented in this document. Changes in the economic climate, changes in demand, external events and other unknown factors all contribute to the need for the Council to remain flexible. Any variations from this Plan are likely to be minor. If they are not minor, then they will trigger the Council’s Significance and Engagement Policy. This means that community engagement will be undertaken in a manner appropriate to the matter or changes at hand. This document has been prepared to fulfil the requirements of section 93 of the Local Government Act, 2002 and the purpose of a ‘Long Term Plan’.

A - 8 Introduction and Overview

What you can expect to see in this Plan

The 2015-25 Hauraki Long Term Plan has been prepared for the community. That means it is the Council’s intention that the document is as meaningful to the reader as possible, describing Council’s intended directions, projects and programmes over the next 10 years and how it will report back to the community each year on its progress through each Annual Report. The following information will help to explain the purpose of each section within the document.

The 2015-25 Hauraki Long Term Plan is split into two volumes. Volume One provides an introduction and overview and highlights the Council’s strategic direction and activities that work towards achieving the Council’s vision for the future. Volume One also includes the Council’s Financial and Infrastructure Strategies, summarises Council’s statutory reporting requirements and detail information about the Council. Volume Two details the Council’s funding and financial statements, some of its financial policies, rating examples for sample properties, and financial prudence regulations.

The Council acknowledges that there is a lot of information within the Plan – the information is necessary to provide readers with a complete picture and in many cases is legislatively required.

If you would like to view the 2015-25 Hauraki Long Term Plan both volumes are available on Councils website www.hauraki-dc.govt.nz. Alternatively the Plan can be made available as a compact disc by request - contact the Council on 07 862 8609 or 0800 734 834 (from within the Hauraki District).

Document layout

Volume One This section explains what the 2015-25 Hauraki Long Term Plan is about and what you Introduction and can expect to see within this document. It also contains an introduction from the Mayor, Overview the Audit Opinion, and gives a brief description of the relationship that this Plan has with other Council documents. This section outlines the role and purpose of local government, Council’s mission and customer charter. It includes the Council’s Community Outcomes, which detail Council’s vision for the future of the Hauraki District and explains the link between these outcomes and Council’s strategic documents. The Strategic Direction section also includes the Strategic Direction Council’s key strategies and assumptions that have driven Council’s approach for the next ten year period:  the 2015-25 Financial Strategy  the 2015-45 Infrastructure Strategy, and  the 2015-25 financial and general assumptions. This section describes the Councils approach to decision making and consultation; using Decision Making the Significance and Engagement Policy (a summary of this policy is also provided). An Processes overview of Maori involvement in Council decision making is also included. This section outlines the consultation process undertaken for the 2015-25 Hauraki Consultation Document and the outcomes of that consultation; including an overview of Submission Process the decisions made regarding the Key Community Issues that Council sought feedback and Consultation on. Those key issues were: Outcomes  Financial Strategy and Infrastructure Strategy  Economic Development The Council presents 10 groups of activities in the 2015-25 Hauraki Long Term Plan. Groups of Activities Each group contains one or more of Councils activities that are presented together within and the Activities that Group due to their drivers, legislation or of service delivery. This section provides an within them overview of what is involved with these activities and includes plans for the future in

Introduction and Overview A - 9

Volume One terms of level of service, projects and the financial forecast for the next 10 years. The performance measures for each activity are also outlined with targets for measuring effectiveness of how Council delivered that activity. This section outlines the Council’s involvement in various Council Controlled Statutory Reporting Organisations (CCO’s), a summary of the Assessment of Water and Sanitary Services, and a summary of the Waste Management and Minimisation Plan.

This section includes general information about the Hauraki District and our Council - your Elected Members, the Council committee structure and management structure. It Appendices also includes supporting information to this Plan, including lists of current policies and other plans, by-laws, legislation and Council assets, and a glossary are also included.

Volume Two This section includes all of Council’s financial statements for 2015-25 that are required Financial Statements under the Local Government Act, 2002, including a full schedule of capital works. This section contains the Council’s funding policies, including the Revenue and Funding Statements Financing Policy, and detailed information about rating implications. Rates Remissions This section contains the Council’s Rates Remissions Policies. Policies

A - 10 Introduction and Overview

Supporting Documentation

How this plan relates to other Council documents

There are a number of other Council documents, bylaws, policies, strategies and plans which all feed into the 2015-25 Hauraki Long Term Plan – this is called supporting documentation. Along with internal documents, external drivers such as national strategies, plans and legislation also have an effect on the decisions made by the Council. The diagram below shows how these different documents help to form the basis of the 2015-25 Hauraki Long Term Plan.

Community Interests

Legislation Community Outcomes

Consolidated Hauraki Long Term Plan Bylaw

Council Policies Asset Management Key strategies and Plans plans (local, regional (Explained below) and national)

Consultation/ Professional advice/ Political direction

The Council’s overarching responsibility is to enhance community well-being through the implementation of the Hauraki Community Outcomes. It does this by ensuring all plans and strategies are developed and implemented with the Community Outcomes in mind. Examples of this include the internal operational plans including Asset and Activity Management Plans, and public policies such as the Positive Ageing Strategy and Contestable Social Fund.

The culmination of the Council’s policies, plans and strategies guide the Council in its decisions and are used as the core drivers for the 10 year period. The Council’s own documentation, however, is only part of its strategic direction for the Hauraki community.

The Council has legal obligations to ensure that the relevant initiatives and plans of Central Government and other agencies are taken into consideration in the development of the 2015-25 Hauraki Long Term Plan. There are many examples of these including the National and Regional Transport Strategies, National Policy Statements and National Environmental Standards, amongst others.

Introduction and Overview A - 11

Key national, regional and district plans, policies and strategies have been listed in the Appendices of this document. The key internal policies, plans and strategies for each group of activities are listed in each of the Groups of Activities sections within this document. Where a national or regional plan or strategy is a key driver for an activity, this is mentioned at the activity level.

Asset Management Plans

All local authorities have responsibility for, or take responsibility for, the delivery of many services to their communities. In general terms these are either activity based (e.g. regulatory services and community development) or asset based (e.g. infrastructure assets and community facilities).

For all of the Council’s asset based activities the Council has developed Asset Management Plans (AMPs) as the base documents for all long term planning for the assets and the services they deliver. These plans are continually reviewed and used as working documents, and are comprehensively reviewed as part of the Hauraki Long Term Plan development.

The Council has adopted a formal policy for the development of these AMPs to give guidance to staff on its requirements and has also adopted a policy for each individual AMP detailing the level of sophistication and detail required for these individual asset plans.

For asset based activities, life cycle planning for the asset from construction through to maintenance and eventual replacement is the key planning process and this forms the basis of all AMPs. These AMPs are the primary building blocks for delivery of all asset based activities and are reliant on a component level of understanding of each asset and network.

The objective of asset life cycle planning is to look at the lowest long term cost rather than ‘short term’ savings when making asset management decisions. Various assets are at different stages in their asset life cycle and different funding and management strategies are required to manage them.

Asset Management Plans are generally expected to cover the following key matters:

 Council’s rationale for involvement with the service the asset provides  the parameters of the activity  forecasting assumptions, uncertainties and risks  description of the asset (based on comprehensive asset data)  age and condition of the assets  levels of service  performance measures and targets  demand management  life cycle analysis  maintenance and operating costs over the planning period  capital expenditure over the planning period  renewal expenditure over the planning period  policy on depreciation of the asset (and its component parts) and funding of this cost  valuation of the asset (revaluation generally every three years)  improvement programme for the AMP

Each AMP provides the base data for the 2015-25 Hauraki Long Term Plan in relation to the items listed above. AMPs therefore have a key role in and key relationship with all the Council’s long term planning, and form the basis for this planning for all asset based activities.

A - 12 Introduction and Overview

Inputs to Asset Management Plans Outputs from Asset Management Plans

 Statutory requirements  Asset descriptions (history, age, location, etc.)  By-law requirements  Demand forecast  District Plan  Risk analysis/ Risk management strategies  Resource consents  Levels of Service  Council policies  Maintenance strategies and programmes  Community Outcomes  Renewal strategies and programmes  Assumptions  Capital strategies and programmes  Service levels  Operational plans  Significance and Engagement Policy  Business plans  Water and Sanitary Services Assessment  Annual Plan  Job descriptions  Assumptions  AMP Improvement Plans  Improvement programmes  Required manuals (e.g. NZTA)  Constraints (policy, financial, etc.)

Developed with Asset Management Plans Reporting from Asset Management Plans

 Hauraki Long Term Plan  Hauraki Long Term Plan  Service Level Agreements  Annual Report  Operational manuals  Water and Sanitary Services Assessment  Funding and Financial policies  Reports to Council/Management Team  Development levies - Policy  Depreciation calculations - Operational - Monitoring  Improvements required to AMPs  Performance assessment

The Council’s present Groups of Activities and Activities, as detailed in the 2015-25 Hauraki Long Term Plan, define which activities are subject to Asset Management Planning. These are:

Infrastructural Services  Roading  Utilities - Water - Wastewater  Drainage - Land Drainage - Stormwater

Community Services  Community Recreation - Swimming Pools - Waihi Events Centre - Sports Fields and Recreation Reserves  Community Facilities - Halls - Pensioner Housing - Public Toilets - Cemeteries - Non Recreation Reserves  Property - Council Owned and Managed Properties and Buildings

Introduction and Overview A - 13

A - 14 Introduction and Overview

Strategic Direction

What topics are covered in this section?

 Purpose and Role of Local Government  Council Overview  Community Outcomes  Financial Strategy 2015-25  Infrastructure Strategy 2015-45  Financial and General Assumptions

SECTION

Strategic Direction B - 1

Purpose and Role of Local Government

Legislative framework

All local authorities are required to work within many statutory frameworks. The key empowering act for local authorities is the Local Government Act, 2002.

Purpose of local government Section 10 of the Local Government Act, 2002 defines the purpose of local authorities as being:

 to enable democratic local decision-making and action by, and on behalf of, communities  to 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.

Section 10 also defines good-quality, in relation to local infrastructure, local public services, and performance of regulatory functions. It means infrastructure, services, and performance that are:

 efficient  effective  appropriate to present and anticipated future circumstances.

Role of local government Section 11 of the Local Government Act, 2002 defines the role of local authorities as being to:

 give effect, in relation to its district or region, to the purpose of local government stated in section 10  perform the duties, and exercise the rights, conferred on it by or under this Act and any other enactment.

These legislative requirements set the broad framework within which every local authority must work.

Key principles

There is further direction for local authorities in relation to their status and powers, in particular the principles relating to local authorities, contained in sections 12-14 of the Local Government Act, 2002. These can be viewed in full on the website www.legislation.govt.nz. All of the Council’s policy and strategic frameworks are developed to be in compliance with these requirements

B - 2 Strategic Direction

Council Overview

Our Mission Statement

It is the Council’s mission to:

 actively provide leadership to and advocate for the community  provide good quality infrastructure, services and regulatory functions  foster open-minded and two-way communication with the community  ensure the sustainable use and management of resources

…for the benefit of all who live in, work in and visit the Hauraki District.

Our Customer Charter Your

Your rights as a customer are:

 to be treated with respect needs,  to receive a timely and accurate response  to have access to relevant information.

Our commitment to you:

 We will respond to you promptly.

 Our staff will identify themselves. our  We will provide knowledgeable staff at first contact.  We will fairly interpret and apply the laws, by-laws and regulations.  Our services standards will be freely available.

 We will review feedback from our customers. focus

Customer feedback:

 We welcome feedback about our service.

 The Council has formal feedback procedures. Ask for an information brochure, or check out the “Suggestions” section on the website - www.hauraki-dc.govt.nz - to submit your feedback.

Strategic Direction B - 3

Community Outcomes

What are Community Outcomes?

The Council believes that to provide leadership and guidance in meeting its statutory purpose and role it is important for it to have clear aspirations and goals, and to include these in its Hauraki Long Term Plan.

The Council developed its Community Outcomes, as detailed below, to provide this clear expression of its aspirations and goals for now and the future. In developing its Community Outcomes the Council considered:

 What are our goals as a Council?  How do we want to be in the future?  What do we want to do for our community?

The Council believes that the Community Outcomes provide the Council and its community with positive ways to stimulate thinking about needs and priorities for today and the future when making decisions.

The Community Outcomes are now the adopted goals and aspirations that the Council aims to achieve in all aspects of its leadership, policy development and service delivery and to promote the interests of the community – now and in the future. These Community Outcomes are referenced throughout the Hauraki Long Term Plan and are also used to report back to the community on a regular basis through the Council’s Annual Report.

B - 4 Strategic Direction

What are Hauraki District’s Community Outcomes?

• We provide a range of services and • We are a proactive Council that provides facilities to meet our District's needs and leadership and communicates effectively expectations for a safe environment. with all sectors of our District. • We provide ongoing safe, well-managed • We advocate for the benefit of our District. and maintained core infrastructure. • We keep our District well-informed and • Our waste is collected, reduced, reused ensure information is available. and recycled responsibly. • We consider our District's views when • We are organised and prepared to deal making decisions. with natural hazards. Prepared Hauraki Prepared Interactive Hauraki Interactive

• We have a positive climate that • We provide an environment that encourages balanced and sustained encourages vibrant communities and an economic growth throughout our enhanced quality of life. District. • Our unique communities are protected • Our infrastructural services and facilities while balancing the needs of alternative are planned and developed to meet future lifestyles. demand. • We are advocates for the provision of • We actively encourage new opportunities quality social, educational, health and while continuing to support existing training services. ventures and service providers. • We encourage partnerships within the • We encourage further development of District for the delivery of services.

Progress Hauraki Progress tourism opportunities and facilities focusing on our heritage and eco-tourism. Lifestyle Hauraki Lifestyle

• We take a collaborative approach with • We plan for the wise use and both Mana Whenua and Tangata management of all land and resources for Whenua in our District. the continued benefit of our District. • We advocate for forums which ensure • Our natural and physical environments are involvement and consultation in decision- sustainably managed. making processes. • We have a shared respect for both • We ensure appropriate regard is made to economic growth and environmental taonga and culturally signficant matters. protection. • We encourage the development of • We support the protection of the District's partnerships for the delivery of services significant natural habitats and ecosystems. and programmes. Sustainable Hauraki Sustainable Kotahitanga Hauraki Kotahitanga

Strategic Direction B - 5

How do Community Outcomes fit in?

To help illustrate the relationship between Community Outcomes and the Council’s levels of service to the community, ‘icons’ have been used throughout the Long Term Plan. The icons symbolise the essence of what each Community Outcome means in a visual way, and help to show the link to what the Council is aiming to achieve in the future as it works towards community well-being. The icons representing each Community Outcome are as follows:

Prepared Hauraki

Kotahitanga Hauraki

Interactive Hauraki

Progress Hauraki

Lifestyle Hauraki

Sustainable Hauraki

The 2015-25 Hauraki Long Term Plan has a key role in linking together the Council’s goals, responsibilities and all of its plans and policies that contribute to progressing the Community Outcomes. As part of the Council’s decision making processes it must take into consideration its Community Outcomes.

The Council’s contribution toward achieving Community Outcomes is detailed in the Long Term Plan within each Group of Activities and individual Activities with the use of icons showing which Community Outcomes the levels of service primarily contribute to in each levels of service table. Some levels of service could contribute to more than one Community Outcome, but only the icon of the primary Community Outcome is identified. At the customer service level, the icons show the link between the projects and services the Council provides and that the community experiences regularly, and which Community Outcomes the Council is working towards achieving.

In order to track its progress towards achieving the Community Outcomes, the Council will report on its performance annually by producing an Annual Report. For each level of service, the Council will detail what projects and services have been completed or progressed, and how those have contributed to the achievement of Community Outcomes. The Annual Report must be adopted by 31 October each year and will be made available to the public in early November each year.

B - 6 Strategic Direction

Relationship of Community Outcomes to key strategic documents

The Council has developed policies and plans that provide direction to the Council and the community on how it will meet its statutory obligations and work towards meeting its Community Outcomes. These policies, strategies and plans provide key inputs into each of the Groups of Activities and Activities in the Long Term Plan.

The key documents that the Council has developed are as follows.

Plans District Plan The District Plan is a document that provides a framework for the sustainable management of the natural and physical environment of the District, assisting the Council to carry out its functions in order to achieve the purpose of the Resource Management Act, 1991. It provides the framework for development controls within the District.

Asset Management Plans For each of the Council’s asset based activities (Roading, Water, Wastewater, Stormwater, Land Drainage and Community Services) Asset Management Plans have been developed and are used to inform the asset based activities in the Long Term Plan. The Asset Management Plans detail all planning and operational matters for each asset and take a longer term view on the maintenance and replacement of these assets over their lifecycle. They ensure that the assets are able to meet the service delivery requirements set by the Council for each asset activity. These Plans also provide the information required to develop operational and capital budgets for the Long Term Plan.

Activity Management Plans For each of the Council’s non-asset activities (as detailed in the Long Term Plan) there has been an Activity Management Plan developed which informs the activity statements in the Long Term Plan. These Plans detail the framework within which the activity must operate, define the service levels that the Council will deliver, detail the key compliance matters to be met and provide the detail required to establish operational budgets as detailed in the Long Term Plan.

Policies Significance and Engagement Policy This statutory policy requires the Council to determine the degree of significance of any decision it is considering which, in turn, provides the Council guidance on the level of engagement with the community it should consider as part of the decision making process. This guidance is set out in schedule two of the Policy in the form of a community engagement guide.

Asset Management Plan Development Policy This policy sets the Council’s criteria for the development of Asset Management Plans and ensures that appropriate priority is given to forward planning for these assets. Each Asset Management Plan developed must be in compliance with the standards established by this Policy.

Climate Change Policy The Council has developed a Climate Change policy that informs its future planning for assets and activities and ensures that development of activities takes into account the future effects of climate change. In developing the Policy, the Council has determined to base the Policy on the mid-level projections of the Ministry for the Environment.

Strategic Direction B - 7

Financial Strategy 2015-25

1.0 Introduction

In developing this Financial Strategy, front of mind is the ability of ratepayers to pay for services, both today and in the future. Affordability of the Council’s services and the ability of ratepayers to pay for these are of concern to the Council.

The Council first prepared a Financial Strategy for the 2012-22 Long Term Plan as it was a new requirement at that time for all councils in New Zealand, resulting from changes to the Local Government Act, 2002.

This time around, the Council has had the ability to look back at its performance against the 2012-22 Financial Strategy. Previous performance against the 2012-22 Financial Strategy has been reported in the Council’s Annual Reports for 2012/13 and 2013/14. These are available on the Council’s website www.hauraki-dc.govt.nz.

The Council has not only considered previous performance when developing this Financial Strategy but also the likely future demand for Council services and what they will cost, as well as other changes that the Council might need to cater for over the life of the 2015-25 Hauraki Long Term Plan (Long Term Plan). The Council has also looked closely at the current demographic and social profile and trends expected in this arena.

This Strategy contains three direction statements that have informed the Long Term Plan and will guide decision making during the implementation of the Long Term Plan.

The Strategy also sets out the Council’s self-imposed limits on rates, rates increases (rates cap) and debt levels (debt cap) for the next 10 years and provides details for the borrowing and investment policies that underpin the Council’s financial management.

At the end of each financial year in its Annual Reports, the Council will report on its performance against the limits set out in the Strategy. The Government also requires the Council to report on a range of other financial indicators to assess overall financial health and prudence.

2.0 The Council’s Direction

The Council has set three financial directions which have informed its planning and will guide its decision making during the implementation of the Long Term Plan. These are similar to the 2012-22 directions.

Direction 1: To prudently reduce debt levels

Direction 2: To minimise and smooth rates increases

Direction 3: To manage the business well

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3.0 Community Profile

Between 2006 and 2013 the Hauraki District experienced an increase in level of social deprivation in almost all of our towns1. An increase in social deprivation means an increasing number of people do not have the same level of income and qualifications, or access to goods and services (such as communications, private car, home ownership) as other people in less deprived areas in New Zealand. It also means that, potentially, an increasing number of people are in a single-parent family or living in an overcrowded house.

The Hauraki District has a reasonably static and ageing population, and the number of elderly persons in the community, as a proportion of the total population, is expected to increase significantly.2The Council reasonably assumes that elderly people are more likely to live on fixed household incomes.

The Council also believes that many people in the District’s communities face day-to-day financial hardship and that this trend will continue. It is therefore necessary to be vigilant with Council expenditure and financially prudent so that the services that are provided continue to be affordable.

Population3 The District’s population is currently 17,811 people, with just over 11,000 dwellings. Over the next 30 years, the population is projected to remain relatively stable, with a slight long term decline. In the Paeroa and Waihi Wards the Council is expecting a small increase in the number of dwellings.

Basically, this means that the population (and therefore the ratepayer base) isn’t expanding and that overall, we will have the same or a similar number of ratepayers into the future to fund the services that the Council provides.

In 2013 the proportion of people aged 65 and over made up around 22% of the Hauraki District total population. This is above the national average of 14%. This trend is projected to continue and the proportion of people aged 65 or over in the District expected to increase to over 43% by 2045.

At the same time the number of people aged between 15 and 64 is projected to decrease.

This change in the demographic makeup will mean that the Council and other service providers are going to have to cater for a larger number of older persons in our communities. This factor may also have a flow-on effect to the makeup of the work force in the District.

Influenced by factors such as an increasingly ageing population, the Council is also expecting a decline in the average household size, decreasing from 2.3 residents per household currently, to around 2.1 in 2045.

Household Income In the Hauraki District, the median household income is considerably lower than the average household income in New Zealand4. The Hauraki Plains area has the highest average household income of $78,900 per year, which is above the New Zealand average of $63,800, however many of the District’s communities are well below the New Zealand average. The Waihi community has the lowest average yearly household income in the District of $45,100 followed by Paeroa at $46,900.

Whilst for the majority of people the greatest proportion of their income comes from wages or salary, overall, the District’s communities have a higher number of persons deriving their income from superannuation and means tested benefits than the New Zealand average. This is consistent with the social deprivation index ratings.

Furthermore, with an ageing population the Council would expect this trend to shift over time to an even greater proportion of its communities on fixed incomes of superannuation.

1 NZDep2013 Index of Deprivation 2 Rationale Growth Projections Report, 2014 3 Rationale Growth Projections Report, 2014 4 Status 2013 Demographic Profile Report

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Unemployment In 2014, the average unemployment rate for the Hauraki District was 8.5% for people aged 15 years and over, which is slightly higher than the New Zealand average of 7.1%.

In response to the unemployment rate and other factors, in 2013 the Council developed an Economic Development Strategy. The Council is focussed on how it can help the District move forward from the current economic climate, and develop a strong economic direction. In the Economic Development Strategy, the Council identified priority areas where it would take action in order to encourage and facilitate development proposals, especially those that promote opportunities for the Hauraki District.

Land use With a reasonably static population the Council assumes that land use will remain similar over the life of the Long Term Plan.

The Council has also assumed that there will be no significant change to the types of industry currently using and creating demand for its services; for instance, dairy will remain dairy.

4.0 The Council’s Financial Picture

Debt Over the last decade the Council has upgraded nearly all of its water treatment plants to meet NZ Drinking Water Standards, and upgraded its wastewater treatment plants to achieve resource consent conditions for wastewater effluent discharges. The focus over the next 30 years for infrastructure is expected to be on maintaining the existing water and wastewater infrastructure to current standards.

Because of the upgrades, the Council has higher levels of debt when compared to its historical debt levels. This has been foreseen for some time. Compared to other local authorities in similar situations with their asset upgrades, the Council is in a favorable financial position5. Once the upgrade work is completed, the need for debt will decrease. Over the life of the Long Term Plan debt is forecast to reduce by approximately 62% from the opening debt position.

The maximum forecast debt in the Long Term Plan is $45.9 million (in 2015/16), which is forecast to reduce to $16.0 million in 2025/26. Put another way, the Council is carrying $4,300 of debt per ratepayer in 2015/16 and this will reduce to $1,400 over the life of the Plan.

To ensure that the Council is being prudent with its debt repayment it has set four debt caps to observe. These are detailed in Section 5 of this Strategy. The forecast debt is comfortably within these limits.

The Council will continue to participate in the Local Government Funding Agency (LGFA). The LGFA is a cooperative to allow Councils to borrow at lower interest rates and have easier access to long term borrowing, which reduces the Council’s overall borrowing costs.

As well, the Council will continue to use internal borrowing to reduce overall borrowing costs.

The Council has an obligation to appropriately balance the funding of its activities over the life of its assets. For example, the life of a water treatment plant on the whole is about 50 years. The Council considers its repayment and funding plans so that today’s ratepayers pay their fair share, as do tomorrow’s ratepayers. This is known as intergenerational equity.

Rates The Council has a goal of minimising large increases and decreases in rates. It does this by spreading changes over several years, to avoid large movements in any one year. This means the Council runs temporary surpluses and deficits in the budgets to achieve a more even rates requirement year on year.

5 Local Government New Zealand, 3 Waters, National Information Survey 2014

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The focus on water and wastewater upgrades and its associated debt and interest costs has placed pressure on rates. The rates increases required as a consequence of the upgrades have been spread to minimise large movements. The forecast increases in the first few years of the Long Term Plan include some of the impact of these upgrades.

Rates increases excluding water are projected to average 3.7% over the life the Long Term Plan, with a 3.6% increase for 2015/16.

The Council has set a cap on rates increases for the first four years of 2.5% above inflation (the local government cost index), followed by a slightly reduced cap for the remaining six years. Further detail regarding the rates cap is contained in Section 6 of this Strategy.

Aside from interest on the Council’s debt, another significant driver of costs and rates requirements is depreciation. The Council funds the amount of depreciation to allow for the replacement of the Council’s capital assets. The Council has approximately $550 million in assets and most assets are depreciated over the life of the asset. Increasing the quantity of the Council’s assets will likely increase the amount of depreciation that is incurred, and ultimately increase the rates. Over the life of the Long Term Plan the Council is forecasting $85 million of depreciation.

The biggest areas of operating expenditure are the roading and water supply activities. On average these activities represent 23% and 19% of operating expenditure respectively. Inflation has a considerable impact on these particular activities as they are based on oil based products such as bitumen and plastic piping. On average, inflation increases the costs of the roading and utilities activities by $390,000 per year over the life of the Long Term Plan.

Due to reductions in other income sources in recent years (such as development contributions), a number of the Council’s activities have been running at a loss, specifically, the district and roading rate6 funded activities. The Council has been gradually increasing these rates to recover these deficits as well as to cover increases from inflation. This trend will continue so that by the end of this Long Term Plan these activities will be running surpluses to recover the past deficits.

On average, 80% of the Council’s revenue is generated by rates, with the balance being derived from subsidies, fees and charges. In the Long Term Plan, the Council is not projecting income from development contributions due to low growth forecasts.

Employee costs represent on average of 30% of the Council’s operating expenditure per annum and inflation increases this by approximately $200,000 per year over the life of the Long Term Plan.

Water Rates Water is a big part of the Council’s story. The Council has a number of water supply systems to service different needs - supplying water for residential, commercial, industrial and farming use. The farming sector is the largest consumer by volume, particularly for stock watering and dairy shed use. Approximately 4.5 million cubic meters of water is consumed each year through the Council’s supplies. An analysis of this consumption demonstrated that the majority is used by a small number of consumers.

Providing the water supply infrastructure is a costly exercise. This is because of the geographic distribution of the townships as well as an extensive rural reticulation network. There are nine water treatment plants to supply eight reticulated networks across a relatively small ratepayer base.

The Council has set two rates caps – one specifically excluding the water supply activity (as detailed above), and one for the water supply activity on its own.

Water rates increases are projected to average 2.0% over the life of the Plan, and a 2.0% increase is forecast for 2015/16.

Further details regarding the water rates cap are contained in Section 6 of this Strategy.

6 The Council’s district general rate and roading rates are assessed on all rating units in the District based on capital value. Refer to the Council’s Revenue and Financing Policy for more information about these rate types.

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Managing the business well As well as keeping attention focussed on debt and rates, the Council has considered what else it can do to be financially prudent throughout the period of the Long Term Plan. The Council will do this by:

 ensuring that the way Council business is conducted delivers services in a way that represents the best value for money and is most cost effective, including the consideration of shared services  carefully managing the capital works programme so as not to exacerbate the debt position  more accurately forecasting when capital projects will occur, and  considering the disposal of assets that are surplus to requirements.

5.0 Debt Caps

The Council has retained the four debt caps used in the 2012-22 Financial Strategy. These are:

1. Total net external debt7 will not exceed 175% of total revenue in any year. 2. Net interest expense is ≤ 15% of rates revenue in any year. 3. Net interest expense is ≤ 10% of total revenue in any year. 4. External net debt per rating unit is ≤ $5,000 in any year.

To arrive at an overall debt cap, the four debt caps above are calculated and the lowest value in any given year becomes the overall debt cap. For the period of this Strategy, the lowest in value is the net external debt per rating unit cap.

The Council is a member of the Local Government Funding Agency (LGFA), a co-operative to allow Councils to borrow at lower interest rates and have easier access to long term borrowing, which reduces the Council’s overall borrowing costs. The LGFA has a number of caps that its shareholders must adhere to and the Council’s Financial Strategy is well within these limits.

Forecast performance against caps The table below outlines the Council’s forecast performance against the target caps. It also outlines the LGFA limits where relevant.

Hauraki District Council Limit Commentary Total net external debt will not The LGFA has the same limit. In the Long Term Plan the Council is exceed 175% of total revenue in forecasting to remain well within this debt limit, with a peak of 136% (debt any year. to total revenue) in 2015/16. The Council has set its limit more conservatively than the LGFA. The Net interest expense is ≤ 15% of LGFA has a limit that net interest expense is ≤ 25% of rates revenue in rates revenue in any year. any year. The Council will remain well within this debt limit, with a peak of 9.5% in 2016/17. The Council has set its limit more conservatively than the LGFA. The Net interest expense is ≤ 10% of LGFA has a limit that net interest expense is ≤ 20% of total revenue in any total revenue in any year. year. The Council will remain within this debt limit, with a peak of 7.3% in 2017/18. Net external debt per rating unit is ≤ The LGFA has no equivalent limit. The Council will remain within this debt $5,000 in any year. limit, with a peak of $4,298 in 2015/16.

Overall, the Council believes its approach to debt to be financially prudent and appropriately conservative. The following graph shows the projected debt profile against the overall debt cap over the life of the Long Term Plan, as well as the projected debt profile of the 2012-22 Long Term Plan for comparison. The debt is forecast to reduce by $26 million over the period of the Long Term Plan.

Whilst the debt repayment appears quick, the Council’s 30 year Infrastructure Strategy demonstrates that the Council is now reaching the end of its current infrastructure investment peak. This is a driver of debt which isn’t projected to reoccur again until just beyond 2045.

7 External debt is defined as the debt that the Council owes to its external lenders, such as banks. Net external debt is external debt less Councils cash and other similar liquid assets.

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2015/ 2016/ 2017/ 2018/ 2019/ 2020/ 2021/ 2022/ 2023/ 2024/ Year 16 17 18 19 20 21 22 23 24 45 Forecast net external debt 45.9 44.7 44.6 41.8 37.8 33.6 30.4 26.3 21.4 16.0 ($ millions) Overall debt cap 53.3 53.6 53.8 54.0 54.2 54.4 54.6 54.9 55.1 55.2 ($ millions) Difference 7.4 8.9 9.2 12.2 16.4 20.8 24.2 28.6 33.7 39.2 ($ millions)

The table below outlines the forecast debt position against each of the debt caps listed above.

Total net Debt as a % of Debt per Interest cost to Interest cost to Year external debt total revenue Rating unit ($) total revenue total rates ($ millions) 2015/16 45.9 136% 4,298 6.9% 9.0% 2016/17 44.7 124% 4,175 7.1% 9.5% 2017/18 44.6 130% 4,148 7.3% 9.0% 2018/19 41.8 118% 3,867 7.1% 8.8% 2019/20 37.8 103% 3,487 6.5% 8.0% 2020/21 33.6 89% 3,089 5.9% 7.2% 5.1% 6.3% 2021/22 30.4 78% 2,784 26.3 66% 2,400 4.5% 5.5% 2022/23 21.4 52% 1,939 3.8% 4.7% 2023/24 16.0 37% 1,448 3.0% 3.7% 2024/25

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6.0 Rates Caps

The Council is required to set limits on rates and rates increases. As was the case in the 2012-22 Financial Strategy, the Council has again set two different rates caps: one being for all rates excluding water, and the other for water rates.

In the 2012-22 Hauraki Long Term Plan the Council chose to separate out the rates for water because combining the water rates cap with other rates would have distorted the picture for the rest of the Council’s activities. The high level of capital upgrades required in the water supply activity was forecast to drive water rates increases that were higher than those forecast for non-water rates. The Council felt that the cap for water rates needed to be isolated.

The Council has chosen to use the Local Government Cost Index (LGCI) in the rates caps as this reflects the costs incurred by the Council. While the Council appreciates that many ratepayers expect rates and utilities charges should not rise by more than the Consumer Price Index (CPI), the challenge for all councils is that over the last decade the costs of the Council’s inputs – such as energy, earthmoving and oil and petroleum type products used in roads – have consistently increased at a higher rate than the CPI.

The rates caps are as follows:

1. Total rates increases excluding water will be ≤ the forecast LGCI plus 2.5% in the first four years of the Long Term Plan, and ≤ the forecast LGCI plus 2% in the remaining years of the Long Term Plan. 2. Rates increases for the water activity will be ≤ the forecast LGCI plus 4% in any year of the Long Term Plan.

Total rates excluding water The following graph shows the forecast total rates revenue (excluding water) and the rates cap (excluding water) and highlights the tightness between the forecast rates revenue and the rates cap in the first four years of the Plan. The graph presents the rates cap of LGCI plus 2.5% for 2015/16 – 2018/19, and LGCI plus 2% for the remaining years.

35

Millions 30

25

20

Rates excluding water Cap f or rates excluding water 15

10

5

0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

The table below presents the information from the graph and further shows just how tight the forecast rates and rate cap position is for the first two years of the Long Term Plan in particular. For 2015/16 there is $200,000 difference between the forecast rates revenue and the rates cap. This position eases by 2018/19, hence the Council’s proposal to have a tighter rates cap in the later six years of the Long Term Plan.

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2015/ 2016/ 2017/ 2018/ 2019/ 2020/ 2021/ 2022/ 2023/ 2024/ Year 16 17 18 19 20 21 22 23 24 45 Forecast rates revenue 19.8 20.6 21.5 22.4 23.2 24.0 24.8 25.7 26.6 27.5 ($ millions) Rates cap 20.5 21.5 22.6 23.8 24.9 26.1 27.4 28,9 30.4 32.0 ($ millions) Difference 0.7 0.9 1.1 1.4 1.7 2.1 2.6 3.2 3.8 4.5 ($ millions)

This graph shows the forecast total rates increases and the rates cap for each year of the Long Term Plan.

6.0%

5.0%

4.0%

3.0% Rates excluding water increases

Cap f or rates 2.0% excluding water

1.0%

0.0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

The table below presents the information from the graph in more detail.

2015/ 2016/ 2017/ 2018/ 2019/ 2020/ 2021/ 2022/ 2023/ 2024/ Year 16 17 18 19 20 21 22 23 24 45 Forecast rates 3.6% 4.1% 4.2% 4.2% 3.5% 3.6% 3.4% 3.4% 3.5% 3.5% increase Rates cap expressed as a 4.7% 5.0% 5.0% 5.1% 4.8% 4.9% 5.0% 5.2% 5.4% 5.5% % total Difference 1.1% 0.9% 0.8% 0.9% 1.3% 1.3% 1.6% 1.8% 1.9% 2.0%

Water rates Water rates are based on consumption. Water consumption will vary year by year based on external factors to the Council, such as changes in weather which can drive demand.

Because of this variability and uncertainty, the Council acknowledges that the water rates cap may be breached in some years depending on external factors.

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The following graph shows the forecast total water rates revenue and the rates cap of LGCI plus 4%.

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12 Millions

10

8 Water Rates Revenue Cap f or water rates 6

4

2

0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

This graph shows the forecast water rates increases and the rates cap for each year of the Long Term Plan. As noted above, because of the variability and uncertainty regarding water consumption the Council sets the cap at LGCI + 4% so it does not have to explain breaches of the cap when there are changes in demand.

8.0%

7.0%

6.0%

5.0%

4.0% Water Rates Increases Water Rates Cap 3.0%

2.0%

1.0%

0.0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

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The table below presents the information from the graphs in more detail.

2015/ 2016/ 2017/ 2018/ 2019/ 2020/ 2021/ 2022/ 2023/ 2024/ Year 16 17 18 19 20 21 22 23 24 45 Forecast water rates 6.1 6.3 6.4 6.5 6.6 6.8 6.9 7.0 7.2 7.3 charges ($ millions) Water rates 6.4 6.8 7.2 7.7 8.2 8.8 9.4 10.1 10.8 11.7 cap ($ millions) Difference 0.3 0.5 0.8 1.2 1.6 2 2.5 3.1 3.6 4.4 ($ millions) Forecast 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% water rates increase Forecast 6.2% 6.5% 6.5% 6.6% 6.8% 6.9% 7.0% 7.2% 7.4% 7.5% LGCI + 4% 4.2% 4.5% 4.5% 4.6% 4.8% 4.9% 5.0% 5.2% 5.4% 5.5% Difference

7.0 Levels of Service

For every 10 year period, the Council develops levels of service statements. These statements outline to the community what they can expect from the Council when they use services and facilities. For the 2015- 25 period, customers can generally expect “business as usual” from the Council as only minor changes were considered in the preparation of the 2015-25 Hauraki Long Term Plan.

For the first time, the Council has prepared a 30 year Infrastructure Strategy which covers the roads, water, stormwater, wastewater and land drainage assets. The Strategy has in many respects confirmed what the Council expected - that the current state of its assets is good, largely owing to the significant investment in the water supply and wastewater network upgrades over the last decade (and due for completion in 2018). This means that the requirement for major upgrades or renewals should be less for the next 30 years.

Unique to the Hauraki District Council is the level of investment the Council makes in land drainage activities - approximately $1 million per year. This is typically a function of a regional council, and whilst the Waikato Regional Council provides investment in catchment management, flood and river control, land drainage is a sizeable activity for Hauraki District Council. A considerable portion of the northern Hauraki Plains lies at or below the normal high tide level in the Firth of Thames, and the remainder of the Plains is only slightly above this level, meaning that protection against high water tables, extreme weather events, high tides and river floods is essential to continuing occupation and use.

Capital expenditure required to maintain existing network infrastructure services The Council’s Asset Management Plans provide information on the condition of assets, expenditure that will be required to maintain and renew the assets, and the costs of developing additional capacity to cater for increased demand.

Shown below are the costs of capital expenditure on network infrastructure required to maintain existing services in the period of the Long Term Plan.

Capital expenditure planned Total capital expenditure for the activity Network Infrastructure for renewals (including renewals) Roading $20.8m $32.4m Stormwater $0.4m $1.1m Water Supply $7.3m $11.9m

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Capital expenditure planned Total capital expenditure for the activity Network Infrastructure for renewals (including renewals) Wastewater $7.2m $9m Land Drainage and Flood $1.2m $1.2m Protection TOTAL $36.9m $55.6m

Additional Demand Given the static growth forecast for the District, combined with the ”business as usual” approach to levels of service, the Council is not anticipating additional expenditure associated with meeting additional or changed demands for services.

8.0 Financial Policies and Investment Holdings

Policy on the giving of securities for borrowing The Council will secure its borrowings against rates revenue as per section 115 of the Local Government Act, 2002. Other forms of security may be considered if they will reduce the overall cost of borrowing.

Objectives for holding and managing financial investments and equity securities The Council does not currently hold equity securities (shares) for the primary purpose of earning a return on its investments. There are no plans to invest in equity securities during the term of the 2015-25 Hauraki Long Term Plan.

The companies in the table below are those in which the Council currently holds shares. There is no rate of return for these investments and the objectives for investment are noted in the table below.

Target rate Company Objective of holding equity of return New Zealand Local Government To ensure that the LGFA has sufficient capital to remain Funding Agency (LGFA) (0.4% ≥0% viable so that it continues as a source of debt funding. shareholding) To ensure that the LASS has sufficient capital to remain Local Authority Shared Services viable so that it continues as a provider of shared services ≥0% (LASS) (1.97% shareholding) to the Council. NZ Local Government Insurance To ensure the Council can obtain insurance to cover risks ≥0% Company Limited (0.5% shareholding) appropriately.

9.0 Supporting Information

Further information regarding the Council’s financial management is contained in the following documents:

Investment Policy: This policy sets out the Council’s approach to investments including the mix of investments, acquisition processes and risk management.

Liability Management Policy: This policy sets out the Council’s approach to borrowing, including interest rate exposure, liquidity and debt repayment.

Revenue and Financing Policy: This policy sets out how the Council will fund its operating and capital expenditure and how these costs are apportioned across the various rate types and ratepayers.

Accounting Policies: These policies outline a number of assumptions and policies with regard to accounting treatment and practices.

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Annual Reports : The Council’s Annual Reports detail previous performance against the 2012-22 Financial Strategy.

2015-25 Hauraki Long Term Plan Financial Assumptions: The Financial Assumptions section outlines a number of financial assumptions that have been built into the Council’s financial model.

All of this supporting information is located on the Council’s website: www.hauraki-dc.govt.nz.

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Infrastructure Strategy 2015-45

1.0 Executive Summary 1.1 The Council’s infrastructure The Council manages over $550million of infrastructure assets on behalf of Hauraki District Council ratepayers. This infrastructure includes:

 644km of roads (82% sealed) and 108km of footpaths  nine water treatment plants to supply eight reticulated schemes, with around 600km of pipe supplying 7,080 properties. There is an extensive supply to the rural community - around 80% of the total water sold  seven wastewater schemes and treatment plants and 160km pipe supplying 6,150 properties  90km of urban stormwater pipes and 40km of open drains  650km of rural land drainage canals and 50km of stop banks.

The road network represents over half of the infrastructure network by value, as illustrated in Figure 1-1 below (values shown in 2014 replacement cost), shown in millions.

Figure 1-1: Hauraki District Council’s infrastructure value

Land Storm water, Drainage, $50m $23m Waste water, $70m

Roads and Footpath $300m Water Supply, $120m

This Strategy provides a 30 year view of potential strategic issues and options in relation to these services and outlines a 30 year view of expenditure requirements.

By national standards, the local road network is considered to be in good condition, though the peat soil in many areas creates challenges with the level of expansion and contraction that can occur as a result of floods and droughts.

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There has been significant investment in the water supply and wastewater network over the last decade. The upgrades have been aimed at meeting the NZ Drinking Water Standards and achieving resource consent conditions for wastewater discharges. Once these upgrades are complete in 2018, the focus over the next 30 years is expected to be on maintaining and renewing the existing water and wastewater infrastructure to future standards.

The Council also manages a significant land drainage and flood protection network. This is unusual in New Zealand as most similar schemes are operated by regional councils. The legislative focus is on flood protection as a core service for territorial local authorities, however for Hauraki District, land drainage is of greater importance. The arrangements through which the service is provided are considered to work well and are expected to continue for the period of this Strategy.

Over the next 30 years, the District’s population is expected to remain relatively static, with a small decline from year 10 onwards. Any increase in demand for infrastructure services is more likely to be driven by industrial changes (e.g.: development of “wet” industries with greater wastewater disposal demands) or a ratepayer desire for expansion of the networks (e.g. water supply to Patetonga).

Figure 1-2: Infrastructure provided by Hauraki District Council

1.2 Significant Infrastructure Issues and Responses

Roads The main issue for the Council is the possibility of constrained funding which could place pressure on levels of service. The New Zealand Transport Agency (NZTA) currently funds 55% of the Council’s roading activity and although this percentage will increase over the next four years to 60%, funding has been flat lined in recent years, and in real terms this means an ongoing reduction in funding. The implementation of a national One Road Network Classification may also see a reduction in funding for low traffic volume roads.

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The Council’s response is to seek to extend pavement and surface lives as far as possible with minimal reduction in level of service.

Other less significant issues identified include:

 the potential for increased damage to roads arising from climate change  63km of road assessed as being under-width by at least 1m  the need to reduce road fatality/injury statistics to achieve NZTA targets  an ageing bridge inventory, expected to need significant replacement work over the next 30-50 years.

Proposed responses are summarised in Section 7.

Water Supply The main issues identified for water supply and the Council’s responses are as follows:

 There are many ageing alkathene and asbestos cement pipes. The Council will renew pipes when maintenance costs exceed replacement costs or when reliability no longer meets the level of service requirements. High criticality assets will be prioritised for inspection and renewal.  Some areas have higher levels of unaccounted water loss than the Council’s target of 30%. A prioritised leak detection programme is proposed.

Wastewater The issues identified for wastewater and the Council’s responses are as follows:

 There is currently no wastewater treatment capacity to support the Council’s intention to develop Hauraki Industrial Park (referred to as the Kerepehi Industrial Park in the Consultation Document) as a food processing hub. The Council is seeking a resource consent to upgrade the treatment plant but has resolved only to proceed with the work if sufficient industry interest is confirmed.  Waikato Regional Council defines overflows from wastewater networks as a prohibited activity in the Regional Plan. The Council plans to renew reticulation networks in Paeroa and Waihi where wet weather overflows are occurring. However, a target of zero overflows is not realistic and attempts to reach it would be costly. The Council proposes to work with other local authorities to achieve a permitted level of wet weather overflow in the next Regional Plan, as is common in most other regions in New Zealand.

Stormwater The issues identified for stormwater and the Council’s responses are as follows:

 There is a risk that obstruction of the overland flow path network over time will cause flooding. The Council intends to map the overland flow path network and develop a mitigation programme for high risk overland flow paths.  Climate change is expected to cause an increase in storm intensity and frequency. The Council will renew and build new stormwater assets designed for future storm return period events.

Land Drainage The Council’s land drainage schemes are well developed and will be maintained on an ongoing basis. The only potential issue is that the flood protection scheme provided by the Council in the north west of the District only provides protection for a 50 year return period event (less than Regional Council schemes which provide protection against a 100 year event). However there are no plans to upgrade during the period of this Strategy.

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Financial Forecasts The 30 year financial projections are outlined by each activity throughout this Strategy in detail, including the anticipated renewals and depreciation costs.

Throughout the 30 year period the Council anticipates its total operating expenditure will be $915million, broken down as follows:

Infrastructure Activity Operating Expenditure ($m) Water Supply $294.9 Wastewater $146.1 Stormwater $41.5 Land Drainage and Flood Protection $58.4 Roads and Footpaths $374.3 TOTAL $915.1

For the same period, the Council anticipates incurring $147million of capital expenditure, two thirds of which will be spent in the Roads and Footpaths activity. The breakdown of capital expenditure over the 30 year period by activity is as follows:

Infrastructure Activity Capital Expenditure ($m) Water Supply $26.5 Wastewater $16.9 Stormwater $3.3 Land Drainage and Flood Protection $2.7 Roads and Footpaths $97.6 Total $147.1

All financial information presented in this Strategy includes inflation, except for the graphs which present the renewals and depreciation expenses.

Summary The 30 year Strategy for the District’s infrastructure is to continue current levels of service to a gradually decreasing population over the time span covered by the Strategy.

This is to be achieved by timely and cost effective maintenance and replacement of assets, guided by realistic forecasting as to when these needs can be expected to arise.

Forecasting within present capabilities indicates no reason to expect sudden large expenditure peaks within the period of the Strategy.

A renewal model has been developed which will be refined on an ongoing basis. This will allow ongoing improvement to the accuracy of replacement forecasting.

2.0 Introduction 2.1 Purpose of this Strategy The Local Government Act 2002 Amendment Act, 2014 was passed on 7 August 2014, and includes a requirement for local authorities to develop an Infrastructure Strategy covering a minimum period of 30 years. In accordance with the Act, this Strategy aims to:

(a) identify significant infrastructure issues for Hauraki District Council over the period covered by the strategy (b) identify the principal options for managing those issues and the implications of those options.

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The Strategy is both informed by, and provides strategic direction to, the infrastructure Asset Management Plans. It is also intended to align with the Council’s Financial Strategy.

2.2 Overview of the Council’s Infrastructure Hauraki District Council owns and manages $560million of infrastructure assets (2014 replacement cost), including:

 644km of roads (82% sealed) and 108km of footpaths  nine water treatment plants to supply eight reticulated schemes, with around 600km of pipe supplying 7,080 properties. There is an extensive supply to the rural community - around 80% of the total water sold  seven wastewater schemes and treatment plants and 160km pipe supplying 6,150 properties  90km of urban stormwater pipes and 40km of open drains  650km of rural land drainage canals and 50km of stop banks.

2.3 District Context The District’s population is currently 17,811 people, with just over 11,000 dwellings. Over the next 30 years, the population is projected to remain relatively stable, with a slight long term decline. In the Paeroa and Waihi Wards the Council is expecting a small increase in the number of dwellings.

A brief summary of expected trends, as they may impact on the provision of infrastructure, is as follows:

 a stable or slightly declining population  an ageing population, already much older than the national average  social deprivation, which has increased over the last decade  a community with an average income significantly lower than the national average.

Overall, economic and social changes are not expected to drive any significant changes in demand for services, however the last three points above mean that rates levels are likely to be a key area of concern for the community.

The District is potentially at risk from a number of natural hazards: earthquake, tsunami, volcanic ash (from Auckland, Rotorua or Taupo eruptions), climate change and flooding, the latter being the most regularly experienced.

The Council’s Financial Strategy (above) 2015-25 Hauraki Long Term Plan contains further information of the community profile now and over the next 30 years.

2.4 Purpose of the Council’s Infrastructure Activities The infrastructure activities support a number of Hauraki community outcomes, as detailed in each Asset Management Plan. However, the primary focus of the roads and footpaths, stormwater and land drainage activities is supporting economic activity and protecting property. Water supply and wastewater services to rural, commercial and industrial customers also contribute to enabling economic activity but most importantly support public health and, for wastewater schemes, protect the environment.

Further details about how these assets support and improve public health and protect the environment are detailed in the Asset Management Plans.

The Council’s specific objectives for each activity are expressed through the levels of service and performance measures which are described in each Asset Management Plan and summarised in the Group of Activity sections of the 2015-25 Hauraki Long Term Plan.

The Asset Management Plans and other supporting material for the 2015-25 Hauraki Long Term Plan and this Infrastructure Strategy are available on the Council’s website www.hauraki-dc.govt.nz

Assumptions in relation to levels of service are covered in Section 8 of this Strategy.

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3.0 Water Supply 3.1 Background Since 2010 there has been approximately $16million invested in upgrading schemes to comply with NZ Drinking Water Standards, and consolidating schemes to be supplied by fewer but more resilient water sources. Kerepehi, Paeroa and Waihi upgrades are all due for completion by June 2015, with the Waitakaruru treatment plant upgrade due by June 2016. Other investment proposed relates to increasing treated water storage in the Plains area and ongoing consolidation of schemes to be supplied by only four treatment plants by 2018.

After 2018, unless there are unforeseen changes to regulatory standards (such as resource consent conditions at water takes or drinking water standards), no major upgrades are expected in the 30 year period.

Given the relatively young age of the schemes (most constructed since 1970), renewal requirements are expected to stay low. Figure 3.1 below indicates the approximate date of construction and hence the age profile of the water supply pipe network in 10 year brackets.

Figure 3-1: Age Profile of water supply pipes

Age Profile of Water Supply Pipes 200 180 160 140 Renewed

/

120 100 80 (km) 60 40 Constructed 20 ‐ Length 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2014 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

The likelihood of significant changes to water demand arising from population or land use changes is considered low and unlikely to cause demand to exceed the capacity of the networks in the next 30 years. Any upgrade is more likely to be triggered by:

 new ‘wet’ industry - it is estimated that each major scheme has capacity to support one additional wet industry, while any more would require upgrades  demand for expansion of the rural supply into the Patetonga area (this is considered less likely).

3.2 Issues and Options Ageing asbestos cement and alkathene pipes A significant network of alkathene water pipes was added to the network in the 1980s, some of which is starting to require higher rates of repair (although repair costs are very low). There is also a high proportion of asbestos cement pipes in the Council network which are projected to need replacing after an estimated 80–110 year lifespan. Options include:

 proactively replace, or

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 continue to repair on failure until maintenance costs exceed the cost of replacement, or reliability level of service targets are not met (preferred option).

Condition assessments of high criticality assets (those with a high consequence of failure) will occur when 80% of their expected life has expired, to more accurately determine the replacement date. At this stage this condition assessment programme has not been scoped and no specific budget has been provided – this is a future improvement area.

Natural and technical hazards Increased drought periods (due to climate change) may increase urban demand (garden watering etc) but in rural areas demand has been seen to reduce in droughts as milk production decreases. Overall, there is expected to be little impact on demand caused by climate change.

The water supply network could be adversely affected by earthquake (the majority of pipes are brittle in nature), volcanic ash (impacting the quality of raw water sources), major flood washouts and power supply failures. Details of mitigation strategies are included in the Council’s Asset Management Plans.

Management of unaccounted water loss While not considered a ‘significant’ issue, unaccounted water loss is high in some areas (Waikino and Karangahake), compared with the target maximum of 30% adopted by the Council. The higher levels of unaccounted water loss in these areas are believed to be caused by a combination of inaccurate water meters, and long lengths of small alkathene pipes which make leak location difficult. The high level of soil movement between seasons contributes to the level of pipe breakages/leaks.

Drivers for managing unaccounted water loss are to demonstrate good stewardship of the District’s water resource, and as an indicator of asset condition, which contributes useful information for renewal planning.

Options for managing unaccounted water loss include:

 acceptance of the current rates of water loss  undertaking a prioritised leak detection and meter testing programme where unaccounted water loss is higher than 30% (preferred option)  targeting a lower level of unaccounted water loss (not considered economically justified).

Implications of the second option are an initial cost of $20,000 to scope out the issue, and an ongoing annual budget of $18,500 for leak detection. Rectification works will be funded through meter and pipe renewal programmes.

3.3 Expenditure Forecasts The graphs in Figure 3-2 on the following page present the operating and capital forecasts for the water supply activity. These are based on the following key assumptions that outline the most likely scenario for the District:

 Level of service expenditure in the first three years will complete the scheme connectivity and drinking water upgrades.  Further regulatory changes are unknown and any associated investment has not been budgeted for (there are no signals from the government or industry to indicate changes).  Demand (quantity) will remain relatively unchanged, or at least will not increase to an extent that capacity upgrades are required.  Levels of service will remain unchanged, with the exception that as pipes are renewed they will be upgraded to meet Fire Fighting Standards where required, and built with more modern, resilient materials.  Provision for replacement of assets will be as forecast by the renewal model set out in the Asset Management Plan.  This uses a statistical distribution of failures ranging around the expected average service life for each type of pipe, as shown in Table 3.1 below, to estimate the probable remaining life, from which the probable replacement date is forecast. The Asset Management Plan presents a scenario analysis to show the level of confidence that the renewal budgets will be within specific bands.

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 Operational cost increases are inflationary only.

Table 3 1: Water supply pipe expected average service lives

Material Type Expected Asset Life (years) Alkathene 75 Asbestos Cement (AC) 95 Cast Iron 130 Concrete 120 Concrete Lined Steel 100 Everite <125mm dia 85 Everite >125mm dia 90 Poly Vinyl Chloride 100 Polyethylene 140 Unknown 70

There is a possibility of demand for water reticulation from currently un-serviced areas, such as Patetonga. This is considered unlikely in the next 30 years, unless its own water source quality deteriorates, affecting standards required for dairy farming (This is also considered unlikely).

Any significant capital works upgrades required to extend the network to new customers or provide supply to major new users would be considered on a cost recovery basis.

Figure 3-3 presents the total forecast depreciation and renewals. The significant gap between cumulative spend on renewals and depreciation is due to the relatively young age of most of the network, with renewal expenditure relatively low in the first 30 years, as illustrated in the graph in Figure 3-4.

Figure 3-2: Water supply operating and capital expenditure forecasts

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Figure 3-3: Water supply cumulative renewals and depreciation expenditure forecasts

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Figure 3-4: Long term renewal profile (pipe network)

Water Supply Pipe Renewal Profile 6,000,000

5,000,000

4,000,000 Period

in

3,000,000 ($) Spend

2,000,000 Renewal

1,000,000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 2085 2090 2095 2100

4.0 Wastewater 4.1 Background Many of the wastewater schemes were constructed in the last 40 years with around 80% of the pipe network built since 1976. Most of the network constructed pre 1976 is in Paeroa. Figure 4-1 indicates the construction periods and age profile of the wastewater pipe network.

As is typical for most wastewater schemes, infiltration and inflow affects the networks to varying degrees, and small areas of Paeroa and Waihi have significant problems.

Around a decade ago, all treatment plants were upgraded to meet the environmental standards required at the time (as set through resource consent conditions). These standards are aimed at ensuring that effluent discharges do not negatively impact receiving water quality.

Figure 4-1: Wastewater pipe network age profile

60,000

50,000 Renewed

40,000 /

30,000 (km)

20,000 Constructed

10,000 Length ‐ 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2014 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

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4.2 Issues and Options

Requirement for zero overflows from wastewater networks Waikato Regional Council has defined overflows from wastewater networks as a prohibited activity in the Regional Plan – unlike some other regional councils in New Zealand which do permit certain numbers of overflows (depending on the specific environment).

Currently infiltration and inflow is causing overflows in small areas in Paeroa and Waihi. Investigations indicate that the Waihi issue relates to manhole construction standards rather than pipe condition. In Paeroa, the treatment plant was upgraded around 10 years ago to manage high levels of wet weather flow. However, the deterioration within small areas of the township network will need work to rehabilitate the network to keep rates of infiltration in check over the next 10-20 years.

Notwithstanding these specific programmes, a target of zero overflows is considered unrealistic by the Council and would be extremely costly to achieve. Outside of the problem areas mentioned above, the District’s wastewater network generally complies with the target but achievement is likely to become more difficult as the network ages. Predicted climate change, expected to result in shorter and more intense storms, is also likely to make the target more difficult to achieve over time.

$2.7 million has been budgeted to replace the networks in affected areas.

Development of Kerepehi as a food processing hub The Council has identified Kerepehi for potential development as a food processing hub in the District. A consent application is being made to expand the wastewater scheme to enable this to occur, in anticipation of specific development applications.

Options for the Council are (assuming the consent application is approved):

 carry out the upgrades required to support a food processing industry, to encourage industry to come forward  wait for specific development applications before proceeding (noting that this may delay any industry developments).

The second option has been adopted for this Strategy – i.e. no budget has been allowed for the Kerepehi wastewater scheme upgrade.

4.3 Expenditure Forecasts Figure 4-2 on the following page presents the operating and capital forecasts for the wastewater activity. These are based on the following key assumptions:

 Regulatory increases to the environmental standards relating to the discharge of treated wastewater represent an unknown risk, but are not expected. Associated investment (such as to upgrade treatment standards) has not been budgeted for. Consent renewals are due within the time span of the 2015-25 Hauraki Long Term Plan.  Wastewater treatment levels of service will remain unchanged, apart from effluent upgrades resulting from a new de-sludging process at Waihi, and additional filtration at Paeroa to treat phosphorus (both required to achieve consent conditions).  Provision for replacement of assets will be as forecast by the renewal model set out in the Asset Management Plan.  This uses a statistical distribution of failures ranging around the expected average service life for each type of pipe, as shown in Table 4.1 below, to estimate the probable remaining life, from which the probable replacement date is forecast. The Asset Management Plan presents a scenario analysis to show the level of confidence that the renewal budgets will be within specific bands.  At some stage during the next 30 years the Waikato Regional Council Regional Plan is expected to permit an agreed level of overflow from wastewater networks. It is noted that, if the Regional Council continues its policy of zero permitted overflows, Hauraki District Council is unlikely to achieve the asset lives tabled below.

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Table 4 1: Wastewater pipe expected service lives

Material Type Asset Life (years) Alkathene 65 Asbestos Cement (AC) 80 Cast Iron 90 Concrete 100 Glazed Earthenware (GEW) 130 Poly Vinyl Chloride (PVC) 100 Polyethylene 100 Reinforced Concrete 125 Steel 65 Steel Cement Lined 80 Unknown 80

 Operational cost increases are inflationary only.  If the Kerepehi wastewater treatment upgrade proceeds, the capital cost implication could amount to $16m. The Council has resolved to only proceed if trade waste agreements are in place to utilise and pay for 70% of the treatment capacity. This would still mean that, for an unknown period, 30% of the cost would have to be borne by the Council.

With reference to the graph in Figure 4.3, the gap between depreciation and cumulative spend on renewals reflects the relatively young age of most of the network. Due to this, renewal expenditure is relatively low in the first 30 years, as illustrated in Figure 4.4, which also forecasts a future peak in pipe renewal expenditure beyond the 30 year span of the Infrastructure Strategy. Depreciation in excess of current replacement requirements evens out the future funding demand peak which would otherwise correspond with the peak in renewal expenditure.

Figure 4-2: Wastewater operating and capital expenditure projections

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Figure 4-3: Cumulative Renewals and Depreciation

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Figure 4-4: Long term renewal profile (pipe network)

Wastewater Pipe Renewals 3,500,000

3,000,000

2,500,000 Period

in 2,000,000

($) Spend 1,500,000

Renewal 1,000,000

500,000

0 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 2085 2090 2095 2100

5.0 Stormwater 5.1 Background The Council provides urban stormwater networks in all of the main towns. Most of these networks have been progressively built since the 1950s, as indicated in the age profile in Figure 5-1, though there are pockets of older areas in Waihi and Paeroa. A third of the network is less than 20 years old.

While it is thought that some older areas do not meet current stormwater design standards, there are few areas where flooding caused by reticulation capacity is a known issue.

There have been some pipe failures in recent years, though this is thought to be due to isolated areas of poor construction rather than an indication of network-wide condition.

New developments are required, at a minimum, to be hydraulically neutral and not increase peak runoff flows during flood events.

Discharge consents are in place at Whiritoa, the Plains, Waihi and Paeroa and are not due for renewal for another 25 years.

Figure 5-1: Stormwater pipe network age profile

25.00

20.00 Renewed

/ 15.00 (km) 10.00 Constructed

5.00 Length

‐ 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2014 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 1900

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5.2 Issues and Options

Maintaining the overland flow path network Overland flow paths are critical to the operation of the overall stormwater network, as the primary pipe network is only designed to carry a 1:10 year return period event. Currently, there is limited information on the location and operation of these flow paths, and no proactive inspection to ensure that people do not obstruct these flow paths (such as through fence construction or the filling of hollows).

The Council intends to map the overland flow path network, identify the potential for hazard depths or velocities of flow, and develop a mitigation plan for high risk flow paths.

Climate change Climate change is expected to increase the frequency and intensity of storms. In effect, this will lower the design capacity of the primary pipe network (e.g. what is currently a 10 year return period event may become an eight year return period).

The Council designs new and renewed stormwater infrastructure to expected future storm event return periods, however there is no plan to upgrade existing stormwater pipes other than as part of the renewal programme. Any shortfall in the capacity of the existing piped network resulting from climate change will be accommodated through the secondary overland flow path stormwater network.

5.3 Expenditure Forecasts The expenditure forecasts in Figure 5-2 are based on the following assumptions:

 Provision for replacement of assets will be as forecast by the renewal model set out in the Asset Management Plan  This uses a statistical distribution of failures ranging around the expected average service life for each type of pipe, as shown in Table 5.1 below, to estimate the probable remaining life, from which the probable replacement date is forecast. The Asset Management Plan presents a scenario analysis to show the level of confidence that the renewal budgets will be within specific bands.  The level of service improvements primarily relate to piping of open drains in Kerepehi, Turua and Ngatea. Projects have been prioritised based on maintenance costs and amenity value.

Table 5-1: Stormwater pipe expected service lives Expected Service Life Material Type (years) Asbestos Cement (AC) 85 Concrete and In situ casted 85 Corrugated Iron 60 Galvanised Steel Tube 70 Glazed Earthenware (GEW) 80 Novaflo 80 Polyethylene 100 Precast Concrete 85 Poly Vinyl Chloride (PVC) 100 Reinforced Concrete 130 Stainless Steel 80 Steel 80 Tin 80

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With reference to the graph in Figure 5.3, the gap between depreciation and the cumulative spend on renewals reflects that most of the network assets are still in the relatively early stages of their expected service lives, so that renewal expenditure is relatively low in the first 30 years. This is illustrated in Figure 5.4 which also forecasts a future peak in renewal expenditure in about 2090, beyond the 30 year span of the Infrastructure Strategy Plan. Depreciation in excess of current replacement requirements provides a hedge against a more sharply increased need for funding as the renewal peak approaches.

Figure 5-2: Stormwater operating and capital expenditure forecasts

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Figure 5-3: Long term stormwater cumulative renewals and depreciation expenditure

Figure 5-4: Long term stormwater renewal profile (pipe network)

Stormwater Pipe Renewals 3,000,000

2,500,000

2,000,000 Period

in

1,500,000 ($) Spend

1,000,000 Renewal

500,000

‐ 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 2075 2080 2085 2090 2095 2100

6.0 Land Drainage and Flood Protection 6.1 Background There are four drainage Districts managed by Drainage Committees, which are sub-committees of the Council.

Land drainage schemes are designed to not allow water to lie on the ground for more than 3 days, to protect pasture. However it is noted that the performance of Council-managed land drainage is highly dependent on the performance of regional flood protection schemes, which are not under the ownership or control of Hauraki District Council.

The Council does own and control some flood protection assets in the north west of the District (which lies outside the Waikato Regional Council river schemes).

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The Council is committed to maintaining the land drainage function, though nationally it is more common for regional councils to manage such assets.

6.2 Issues and Options

Flood Protection Standards in the North West The level of service provided by the Council’s flood protection schemes is lower than the regional average (50 years compared to 100).

Options include:

 continue to maintain to current level of service  upgrade to increased level of service (100 years)  negotiate with Waikato Regional Council to take over the flood protection scheme.

The option adopted for this Strategy is continued Hauraki District Council ownership and to maintain current levels of service.

6.3 Expenditure Forecasts Expenditure forecasts are presented in Figure 6-1 on the following page. These are based on the following assumptions:

 Open drains are maintained in perpetuity (i.e. not depreciated or renewed).  Sea level rise of around 250-300mm is expected over the 30 year period.  Increased intensity storms resulting from climate change will not trigger any scheme upgrades, and will be able to be dealt with through increased pumping.  The Council will continue to manage the land drainage network.  Assets are replaced on the lifecycles in Table 6-1.

Table 6-1: Land Drainage and Flood Protection Assets Expected Service Lives Expected Service Life Asset type (years) Flood gate structures 80 Flood gate components 50 Pump station structures 80 Pumps 25 Pump Screens 20 Motors & switchgear 25 Stopbanks: clay foundation 100 Stopbanks: peat foundation 20

With reference to the graph in Figure 6.2, the gap between depreciation and the cumulative spend on renewals reflects that many of the network assets are still in the early stages of their expected service lives, so that renewal expenditure is expected to be relatively low in the first 30 years. Peaks in floodgate renewal (2080) and pump replacement (2090) are anticipated beyond the 30 year span of the Infrastructure Strategy. Depreciation in excess of current replacement requirements provides a hedge against a more sharply increased need for funding as the renewal peak approaches.

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Figure 6-1: Land drainage and flood protection operating and capital expenditure projections

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Figure 6-2: Land drainage and flood protection cumulative renewals and depreciation expenditure

7.0 Roads and Footpaths 7.1 Background Hauraki District Council’s road network of 644km (82% of which is sealed) is generally in good condition relative to the national average, although the bridges in the network are ageing. Three bridges needed replacement in the last two years (Cadmans culvert, Pukahu culvert and Wires Ford).

The Council’s footpath network of 102km, serving mainly urban areas, has adequate capacity and is generally in good condition where it is provided. Not all urban streets have a footpath down both sides. An ongoing programme to renew and extend the network is subject to annual approval by Ward Committees and Council.

The age profile of the 137 bridges in the Council’s inventory is shown in Figure 7-1below, in age brackets of ten years.

Figure 7-1: Age profile of bridges

Age of Bridges Number of Bridges by 10 year age brackets 60

50

40

30

20

10

0 0‐45‐14 15‐24 25‐34 35‐44 45‐54 55‐64 65‐74 75‐84

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Traffic volumes have remained relatively static in recent years and are expected to remain so for the foreseeable future. If heavy vehicle volumes increase due to land use change (this is considered unlikely) this could become an issue on the thin pavement roads. Much of the road network is low lying and on weak sub-grades. Monitoring of traffic volumes, especially heavy vehicles, will continue to be an important input into the asset management system.

Costs have been trending downwards as the Council operates in a more constrained fiscal environment and looks to minimise lifecycle costs. For example, renewal cycles of low volume roads are being extended, which is likely to increase the interim maintenance.

In recent years, major rehabilitation has been occurring at the rate of 2-3 km per year. Modelling suggests that the long term requirement is in a similar range.

Currently the resurfacing programmes are based on a range of inputs such as condition surveys, age, treatment selection analysis and dTIMS (pavement modelling software), and confirmed by inspection.

The Council aims to extend the time between reseals as far practicable while still delivering an acceptable level of service.

Target seal lives are:

 10 years for arterial roads  14 years for collector roads  18 years for local roads.

The age profile of the road surfacing is shown in Figure 7.2 below.

Figure 7-2: Age profile of sealed road top surface

Road Surfacing Year of Construction Length (km) versus year of construction 90 80 70 60 50 40 30 20 10 0

There has in recent years been an increased focus on walking and cycling, with a strategy currently being implemented which will see approximately $90,000 per annum of subsidised investment in the walking and cycling infrastructure over a 10 year period. This includes work such as new footpath work, pram crossings, barriers, refuges and signs.

Indicative programmes have been drawn up for footpath replacement, spanning three years, and new footpaths, spanning eight years, based on a technical prioritisation process. Projects from the indicative programmes are approved annually by Ward Committees and Council.

The Council has a road safety performance target to reduce the number of fatal and serious injury crashes.

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Analysis of crashes which have occurred on District roads shows a random cause pattern. Two single vehicle crashes led to a coroner recommendation for safety improvements over the last 15 year period.

A crash reduction study carried out in the 2001-10 decade identified a number of minor safety hazards which are being addressed over time. No crash black spots were identified.

The annual number of fatal and serious injury crashes on District roads for the period 2009-2013, indexed in terms of vehicle kilometres travelled (vkt), is depicted in the graphs in Figures 7-3 and 7-4. The graphs show a comparison with New Zealand roads as a whole (source: New Zealand Transport Agency).

Figure 7-3: Hauraki District road fatalities 2009-2013

Comparison of HDC and New Zealand fatal crash numbers per 100m vehicle kilometres travelled (vkt) 3

vkt 2.5

2 100m 1.5 per 1 0.5 Fatality 0 2009/10 2010/11 2011/12 2012/13 2013/14 Financial Year

HDC fatal per 100m vkt NZ fatal per 100m vkt

Comparison with national numbers indicates that the incidence of fatal and serious injury crashes is higher for the District than nationally. If the road itself was identified as a cause in a high percentage of District crashes this could indicate that road improvements would be an appropriate way to address the difference.

This is not the case and therefore a need for significantly increased safety expenditure over the next 30 year period is not foreseen. Figure 7-4: Hauraki District road serious injuries 2009-2013

Comparison of HDC and New Zealand Serious injury per 100m vechile kilometres travelled (vkt) 9 8 vkt

7

6 100m

5 per

4 injury

3 2 1 Serious 0 2009/10 2010/11 2011/12 2012/13 2013/14 Financial Year HDC serious per 100m vkt NZ serious per 100m vkt

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7.2 Issues and Options

NZTA Financial Assistance The new One Road Network Classification adopted by NZTA may see changes to levels of service and NZTA funding for low volume roads. Options include:

 accept the level of service for subsidised road expenditure  supplement level of service with additional Council expenditure to maintain current levels of service.

The first option is considered the most likely scenario.

Climate change The expected increase in intensity of storms as a result of climate change may see a higher level of flooding and droughts, with associated road damage. Droughts may accelerate cracking and differential settlement. Sea level rise may impact coastal roads. Ongoing monitoring will occur, but at this stage no specific options have been scoped.

Under-width roads It has been assessed that around 63km of the Council’s roads are under-width by more than one metre. There are implications both in relation to road safety and durability (increased edge break). Options include:

 a proactive widening programme to bring roads up to standards  only upgrade in conjunction with area-wide rehabilitation projects.

The second option is considered the most likely scenario.

Road Safety The number of fatal and injury crashes on District roads needs to reduce to achieve NZTA targets for road safety. The Council is working with a Road Safety Group of key stakeholders to deliver a Road Safety Action Plan. Most initiatives relate to driver behaviour rather than road safety upgrades, although upgrades do occur as part of the minor improvements programme.

Bridge Renewals Most of the bridges on the network were constructed between 1935 and 1965, as shown in Figure 7.1. A substantial part of the bridge inventory will be coming to the end of its expected life within this 30 year period. Bridge replacements are initially programmed on the basis of their expected lives. These are then modified by the structural inspections, routine inspections and post major storm inspections, to develop a programme for renewals, maintenance and component replacements.

7.3 Expenditure Forecasts Figure 7-5 on the following page presents the expenditure forecasts for roads and footpaths. These are based on the following assumptions:

 No seal extensions will occur.  Renewal forecasts are based on the expected service lives of assets. Expected service lives of the various types of roading asset are shown in Table 7-1. Data accumulated over time will allow revision of the service lives, with a view to extending them as far as possible while still maintaining levels of service.

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Table7-1: Major road assets expected service lives Asset Asset Life (Years) Pavement base 80 Sealed pavement surface: Arterial roads 10 Collector roads 14 Local roads 18 Pavement surface (unsealed) 100 Timber bridge 50 Reinforced concrete bridge 100 Concrete footpath 50 Asphalt footpath 20

 Maintenance and renewal costs (before inflation adjustments) will reduce by about 10% over the next 30 years through cost efficiencies such as optimising pavement life, reduced levels of service for low volume roads and replacing ageing bridges.  Pavement rehabilitation of around 2 - 3km per year will be carried out, mainly of arterial and collector roads, with patching and resurfacing of local and low volume roads.  Pavement resurfacing of around 38km per year will be carried out – a reduction from recent years (averaging 48km). This is intended to maximise seal life without detracting from the riding quality delivered by the network.  There will be no significant changes to legislation or government policy, or any unforeseen events such as natural hazards.

Figure 7-5: Roads and footpaths operating and capital expenditure forecasts

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Figure 7-6: Roads and footpaths cumulative renewals and depreciation expenditure forecasts

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8.0 Financial Summary

The 30 year Strategy for the District’s infrastructure is to continue current levels of service to a gradually decreasing population over the time span covered by the Strategy.

This is to be achieved by timely and cost effective maintenance and replacement of assets, guided by realistic forecasting as to when these needs can be expected to arise.

Forecasting within present capabilities indicates no reason to expect sudden large expenditure peaks within the period of the Strategy from any causes other than major unpredictable events.

A renewal model has been developed which will be refined on an ongoing basis over the life of the Strategy. This will allow ongoing improvement to the accuracy of replacement forecasting.

8.1 Summary of Key Assumptions Levels of Service The most likely scenario for the District is as follows:

 Levels of service will remain largely unchanged, apart from incremental upgrades as part of the renewals programme as assets are upgraded to modern standards (e.g. replacing pipes with more resilient materials, widening road pavements to meet modern width standards as part of major pavement rehabilitation).  The exception to the scenario is the road network, where changes in levels of service are expected as the One Network Road Classification programme is implemented.

Demand The most likely scenario for the District is as follows:

 Demand for infrastructure services will remain relatively unchanged.  Capacity upgrades may be required (notably Kerepehi wastewater treatment plant) to accommodate new industry, but this has not been budgeted for.

Lifecycles The Council’s lifecycle management strategy is to maximise the useful and economic lives of its assets. By maximising the lives of the District’s assets, the Council is able to reduce the cost of the services to the community.

The primary mechanism that Council uses to maximise the lives of the District’s assets is through the management of:

 the consequential risks of an asset failing; and,  the duration, frequency and extent of interruptions to the service due to repair or replacement of an asset.

Assets with high failure consequences are rated high criticality, and assets where failure consequences have minimal impact on the community are rated low criticality.

The asset criticality determines the extent of the risk mitigation undertaken to limit the extent and frequency of any interruption caused by unexpected failure and/or repair/maintenance of the asset.

For the water, wastewater and stormwater pipe assets, the asset lives are estimated using a statistical model. The model simulates failure of pipe assets around a distribution curve centred on the average expected life (for example, asbestos concrete pipes fail over an 80-110 year range).

Further detail regarding lifecycles for major assets are summarised detailed for all assets in the Asset Management Plans.

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8.2 Implications of Uncertainty The Council has high levels of uncertainty in relation to assumptions in the following areas:

1. There could be future regulatory changes such as changes to Drinking Water Standards or Regional environmental policies and standards. Without any signals to the contrary, no change has been budgeted for. Typically, there is a long lead time for significant proposed change as well as industry consultation, and the Council would respond and plan as required.

2. The level of reliability of the asset information underlying the renewal forecasts varies by activity and by asset class, creating a medium to high level of uncertainty in the renewal forecasts. Data reliability will improve as more information is gathered through ongoing asset condition and performance monitoring programmes detailed in the Asset Management Plans. In the water supply, wastewater and storrmwater activities, the renewal models provide ranges of likely expenditure.

Insurance and risk management The Council manages the financial risk associated with natural disasters through the provision of insurance cover for 40% of the likely damage, along with the 60% from the Central Government under the National Civil Defence Emergency Plan.

The Council is planning to develop a Risk Management Framework for managing potential risks to the organisation, the scope of which will include consideration of the appropriateness and limits of the Council’s insurance programme.

8.3 Financial Forecasts All financial information presented in this Strategy includes inflation, except for the graphs which present the renewals and depreciation expenses. Further detail regarding the inflation assumptions can be found in the Council’s 2015-25 Hauraki Long Term Plan Forecasting Assumptions, on page 52 of this Section of the Hauraki Long Term Plan.

In delivering the infrastructure services, and addressing the identified issues outlined throughout the Strategy, the Council expects to spend the operating and capital expenditure set out in Table 8.1 over the 30 year period.

Table 8-1: Expected total operating and capital expenditure Operational Expenditure Infrastructure Activity Capital Expenditure ($million) ($million) Water Supply $294.9 $26.5 Wastewater $146.1 $16.9 Stormwater $41.5 $3.3 Land Drainage and Flood Protection $58.4 $2.7 Roads and Footpaths $374.3 $97.6 Total $915.1 $147.1

Figures 8.1 and 8.2 on the following page present the anticipated operating and capital expenditure over the 30 year period.

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Figure 8-1: Total operating expenditure forecasts for the infrastructure assets over the 30 year period

Figure 8-2: Total capital expenditure forecasts for the infrastructure assets over the 30 year period

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Figure 8-3 presents the total cumulative expenditure, across all activities, anticipated for renewals and depreciation.

Figure 8-3: Total cumulative renewals and depreciation expenditure forecasts for the infrastructure assets over the 30 year period

The gap between cumulative renewals and depreciation which increases until the middle 2020’s reverses its trend after this period indicating an increasing rate of expenditure on renewals over the latter part of the 30 Year Infrastructure period. The lifecycle management methodology forecasts a significantly increased need for renewal expenditure outside the 30 year period, which is expected to result in convergence of the two curves with cumulative renewals equalling cumulative depreciation at a future point.

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Financial and General Assumptions

In developing the Hauraki Long Term Plan, the council must make assumptions about the future and take positions on various issues, as they may or may not affect the council’s ability to meet required levels of service.

In this long term plan, assumptions are split into two categories:

 financial assumptions – financial and economic assumptions for example, valuations, inflation, interest rates. This section details significant forecasting assumptions and risks underlying the financial statements.

and

 general assumptions - assumptions that can be applied across all the work we do for example, climate change

These assumptions have underpinned the development of all aspects of the Hauraki Long Term Plan and its associated strategies and policies.

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Financial Assumptions

Level of Topic Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty 1. Inflation The forecast financial information includes That inflation will be significantly Medium Inflation is affected by external economic provision for inflation. The Council has used higher or lower than forecast. factors. forecasts of price level changes prepared specifically for the Local Government sector The Council’s costs and the income required to by Business and Economic Research Limited fund those costs will change by the difference (BERL) to calculate the inflation rate for each between the actual rate of inflation and the rate year of the Hauraki Long Term Plan. of inflation used in the forecast.

The BERL forecast inflation rates were set in The Council has relied on the current September/October 2014 and are listed in parameters the Reserve Bank is required to Figure 1 below. operate under in terms of inflation being held within the range of 1% to 3%. In year one of the Hauraki Long Term Plan there has been no inflation applied to A 1% increase in inflation would increase annual operational costs (with the exception of expenditure by approximately $310,000 and salaries). This is considered appropriate capital expenditure in 2015/16 by approximately given that the year one budget has been $120,000. prepared within six months of commencement of spend.

The inflation rates used for years 11–30 in the 30 Year Infrastructure Strategy are the average of the rate used in the Hauraki Long Term Plan for that activity over the next 10 years. 2. Growth Because of the low population growth That growth will be significantly Low The Council’s costs and the income required to forecast for the District and the available higher or lower than forecast. fund those costs will change by the difference capacity in the Council infrastructure, no between the actual rate of growth and the rate of universal growth factor has been applied to growth used in the forecast. The Council’s all operational expenditure. Where growth is current consent activity supports the anticipated that will create greater demand assumption. on services additional expenditure has been budgeted. 3. Interest Interest on Term Debt is calculated at That the interest rates will be Medium Interest rates are influenced by international between 5.4% in 2015/16 and 6.0% in significantly different from those economic factors. The Council will manage this 2024/25. This is the Council’s expected cost used in the calculations. through interest rate risk management

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Level of Topic Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty of borrowing and is based on market interest instruments authorised in the Liability rate expectations taking into account the Management Policy for external debt, and by proportion of the Council’s debt that is using internal borrowing as much as possible. covered by fixed interest rate instruments.

4. New Zealand Transport The Funding Assistance Rate (FAR) That the rate of subsidy will be High A 1% reduction in the FAR subsidy rate would Agency (NZTA) (government roading subsidy) is forecast to lower than the rates budgeted. amount to a reduction in subsidy income of range from 56% in 2015/16 to 60% in approximately $60,000. 2024/25. This is based on projections supplied by NZTA (the government funder of roading).

Implementation of NZTA’s proposed ‘One Network Road Classification’ (ONRC) may affect the Council’s subsidy income. A high percentage of the Council’s roads are low- volume local roads for which the ONRC is expected to prescribe a lower level of service than is currently provided by the Council, with a corresponding reduction in the amount of expenditure that is subsidised. 5. Carbon credits and It is assumed that the Council will not have to That the Council will have to Medium The Government’s future direction with regard to liabilities purchase carbon emission units (NZUs) purchase carbon emission units. carbon tax and/or carbon credits is unclear. under the New Zealand Emissions Trading Given that during the life of the Hauraki Long Scheme. No budget for the purchase of Term Plan there are several election cycles, it NZUs has been provided. can be assumed that the Government’s approach to carbon emissions may change. Furthermore, the Council assumes that it will continue to replant its forestry lots which As there has been no provision for such currently earn NZUs. expenditure, the requirement to purchase carbon emission units would likely result in additional cost to the Council. 6. Revaluation of assets It is assumed that the value of the assets will That the cost of Medium The Council periodically re-values its assets. be consistent with the valuations conducted. construction/replacing assets will This is set out in more detail in the Accounting be significantly higher or lower Policies and the Council’s Infrastructure than forecast by the valuations. Strategy. Land was last re-valued as at 30 June 2013. Buildings and Utility Assets were last re- valued as at 1 July 2014. Roading Assets were last re-valued as at 30 June 2014. The projections provide for changes in asset

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Level of Topic Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty valuations every three years based on capital works, retired assets and the amount of inflation over that period of time.

The value of the Council’s assets and subsequent depreciation expense may change as a result of changes in valuation methodologies or cost changes being significantly different to those projected. This could lead to an increase in rates. 7. Vested assets The Council has forecast that it will receive a That the Council will have more Low Vested assets can fluctuate considerably from minimal, but certain level of vested assets. assets vested thereby increasing year to year but the impact is ordinarily offset by The Council also assumes that the impact of the depreciation expense in a proportionate increase in rates revenue. It is vested assets will be neutral, in that the costs subsequent years that is not highly unusual that the Council would enter into associated with the additional assets will be offset by a proportionate an arrangement with a developer where the offset by a proportionate increase in rates increase in rates revenue. ongoing costs associated with the vested assets revenue. are disproportionate to the increase in rates revenue.

An example of where a vested asset may increase cost to the Council is where land is bequeathed to be maintained as a reserve, or similar. 8. Funding sources Sources of funds will be obtained as per the That the Council will not be able Low There is little risk that sources of funds will not Revenue and Financing Policy. The to fund its planned work be achieved given the Council’s ability to collect Revenue and Financing Policy also includes programme. rates. The main risk concerns capital the sources of funds for future replacement of expenditure, as that is primarily funded through significant assets, and both operational and borrowing. If the Council isn’t able to borrow to capital expenditure (the latter of which is the levels forecast than this could affect the primarily through borrowing). timing or viability of its capital works programme. 9. Capital expenditure On average, costs of major capital works will That some capital project costs Medium in The Council has a higher level of confidence not vary significantly from costs estimated at turn out greater than estimates years one to regarding the costs of capital projects in the the concept stage, and subject to general resulting in increased debt three but short-term but less certainty in the longer term inflation trends. levels. higher further due to possible fluctuations in the economy, out. growth patterns, consent conditions, etc. 10. Asset life It is assumed the useful lives of assets as That an asset will fail or wear out Low Asset life is based upon estimates by engineers recorded in the Council’s Asset Management significantly earlier than its and valuers and is therefore considered Plan approximate reality. estimated useful life. reasonably accurate.

NB: Asset lives are also detailed in the In the event of early expiration of assets, capital

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Level of Topic Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty Council’s Accounting Policies and also the projects could be brought forward which would Council’s Infrastructure Strategy. affect interest costs. Depreciation expense may also increase.

11. Unfunded replacement of It is assumed that the Council will not be That the Council will be called Medium The Council does not fund depreciation on these non-Council owned called upon to replace the following upon to replace assets that it halls as it does not own these assets. Further, community run assets community-owned assets, therefore the does not currently own, or fund they are run externally from the Council. The Council does not fund the depreciation on depreciation on. chance of being called upon to assist with these assets: replacement in a loss event is considered  Kaihere Hall medium given the number of halls and level of  Karangahake Hall community interest in these assets. The financial  Netherton Hall impact is difficult to determine as in the event of  Kaiaua Bowling Club Hall loss, it is unclear whether they would be  Kopuarahi Hall replaced at all and/or what the most appropriate  Patetonga Hall course of action would be.  Waikino Hall  Waitakaruru Hall.

12. Unfunded replacement of It is assumed that the Council will not be That the Council will be called Low The Council has chosen not to fund depreciation Council owned but called upon to replace the following assets, upon to replace a community on these listed halls and on all monuments and community-run assets therefore the Council does not fund the asset that is does not currently statues as it is not expecting to be called upon to depreciation on these assets: fund depreciation on. replace them.  Kerepehi Hall  Mangatarata Hall The chance of being called upon to replace one  Turua Hall of these halls in the event of loss is considered  All monuments and statues. low given the number of halls. The financial impact is difficult to determine, as in the event of The Council also does not fund depreciation loss, it is unclear whether they would be on the Hauraki Rail Trail as it is assumed that replaced at all and/or what the most appropriate the costs associated with replacement would course of action would be. not be borne by local government. With regard to monuments and statues, in the event of loss or damage, external funding or insurance may be sought should replacement of the monument or statue be required.

For the Hauraki Rail Trail, at the time of preparing this Hauraki Long Term Plan there is a lease arrangement in place for approximately 18 years on the rail corridor. The arrangements beyond the term of the lease are unclear.

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Level of Topic Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty

13. Development Given that the Council is projecting low That Development Contributions Low Recent trends indicate a low level of Contribution and/or growth, the potential revenue from and/or Financial Contributions Development Contributions and/or Financial Financial Contribution Development Contributions and/or Financial will be material in size. Contributions revenue. revenue Contributions is considered immaterial. To provide more certainty to rates, no In the unlikely event that the Council receives a Development Contributions and/or Financial considerable Development Contributions revenue is forecast. Contribution/Financial Contribution the revenue would be positive. 14. Infrastructure insurance That the Council has sufficient insurance to The risk is that in the event of a Low The council manages the financial risk replace its infrastructure assets in the event natural disaster the Council does associated with natural disasters through the of a disaster. not receive the insurance claim provision of insurance cover for 40% of the likely revenue necessary to replace its damage, along with the 60% from the Central infrastructure assets. Government under the National Civil Defence Emergency Plan.

Figure 1: BERL Forecast Inflation Adjustors % per annum change

Private Sector Year Ending Road Property Water Energy Staff Other Earthmoving Pipelines Wages June 2014 0.7 1.9 -2.1 1.3 1.9 1.8 2.8 -2.5 1.7 June 2015 0.4 1.9 4.7 4.2 1.6 1.5 1.7 1.8 1.7 June 2016 1.2 2.2 5.2 3.5 1.8 2.3 1.8 2.1 1.7 June 2017 1.4 2.4 3.8 3.8 1.9 2.5 2.6 2.5 1.8 June 2018 2.2 2.5 3.0 3.9 2.0 2.6 2.4 2.6 1.9 June 2019 2.4 2.6 3.2 4.1 2.1 2.7 2.0 2.8 2.0 June 2020 2.5 2.8 3.3 4.3 2.2 2.9 2.1 2.9 2.1 June 2021 2.7 2.9 3.5 4.5 2.3 3.0 2.3 3.1 2.1 June 2022 2.8 3.0 3.7 4.7 2.4 3.1 2.4 3.2 2.2 June 2023 3.0 3.2 3.8 4.9 2.5 3.3 2.5 3.4 2.3 June 2024 3.1 3.3 4.0 5.1 2.6 3.4 2.9 3.5 2.4 June 2025 3.3 3.4 4.2 5.3 2.7 3.6 3.1 3.6 2.5

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General Working Assumptions

Level of Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty 1. Population growth The population of the District will remain That population growth is Low Population projections have been based on historic stable during the life of the Hauraki Long higher than anticipated, trends seen in the Hauraki District and rating unit Term Plan. caused by an increase in growth research. The financial effect would be as births, a decrease in deaths, outlined below. or a change in migration. There are non-demographic factors (active Medium economic development programmes, re-zoning of That population growth is land, possible land use changes) that may have an higher than anticipated due influence on the future projected population of to other outside influences some Wards and/or settlements. These would take which could include growth a number of years to significantly affect growth. In in economic development addition, the trend towards commuting could see opportunities. increased migration into the District. The financial effect would be the need for more infrastructure to be paid for by increased rates and Development Contributions.

There is a chance that the assumptions used to project births, deaths and migration may be incorrect. Should the population decline, this may have an effect on income for the Council. The financial effect would likely mean a rise in rates due Low to a smaller number of rateable units.

That population growth is lower than projected, caused by increased deaths, decreased births or net migration. 2. Household size Actual average household sizes have That the trend continues at a Low Statistics show that average household sizes are decreased from 2.50 persons in 2006 to 2.39 higher rate, putting more decreasing at a slower rate than previously; it is in 2013. It is considered likely that this trend pressure on infrastructure therefore expected that this trend will slow down will continue and further decrease to 2.26 for due to additional rateable and be nominal for the life of the Hauraki Long the life of the Hauraki Long Term Plan. unit growth or uptake. Term Plan. If the rate of household size did decline faster than that anticipated, this would likely result in more infrastructure costs, which would be offset by additional rating units.

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Level of Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty

The financial effect would be a decrease in the That the trend does not Low rating unit growth and potentially an increase in continue, and household rates. sizes increase. 3. Demographic age Hauraki District is likely to have an That the demographics of Low Ageing population trends continue to be forecast by distribution for the increasingly ageing population with potentially the District are significantly Statistics NZ and have been confirmed over time. District up to 31% of the District population being different than that These projections could prove incorrect in the over 65 by 2025, and a further increase up to anticipated future and/or may be exacerbated by migration and 47% by 2045. higher or lower birth and death rates.

The table below shows previous and The financial effect would be on community projected age-distribution: services and likely to be minimal.

Age 2006 2015 2025 2045 0-14yrs 22% 19% 18% 13% 15-39yrs 26% 23% 22% 15% 40-64yrs 35% 34% 29% 25% 65+yrs 17% 24% 31% 47% 4. Rating Unit Growth It is assumed that that the growth in the That the growth in the Medium Rating unit growth is driven by the economy, number of rateable units will likely be 0.4% number of rating units will population growth and changes in demographics per annum. vary significantly to what is and lifestyle patterns. predicted. The total number of rating units has been The main financial impacts are increased/ forecast for each year of the Plan as follows: decreased rate funding from extra units.

2015/16 10,669 2020/21 10,884 2016/17 10,711 2021/22 10,927 2017/18 10,754 2022/23 10,971 2018/19 10,797 2023/24 11,015 2019/20 10,840 2024/25 11,059

5. Levels of Service It is assumed that demand for Council That there are significant Low The Council undertook a significant review of its services and community expectations changes in the community’s levels of service as part of the 2009-19 Long Term regarding the levels of service that the demands for levels of Council Community Plan processes. There was a Council provides, will not significantly change. service. thorough consultation process involved, and therefore the Council believes it has determined to its best ability the wishes of its community. There has been no indication through annual satisfaction surveys of any demand for change. Nor has any

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Level of Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty demand for change been apparent through the Hauraki Long Term Plan or Annual Plan processes. 6. Range of services The Council’s current range of services will That Central Government Medium Since the 1989 reforms, councils have been remain unchanged. will allocate responsibility for required to undertake additional services, some of additional services to local which had previously been operated by Central government. Government.

In recent times Central Government has been handing more social responsibility issues to councils, for example gambling and drug and alcohol policies. This is expected to be a trend that continues.

The financial effect of these types of central government delegations are hard to determine, but could be significant to the Council in terms of policy development and licensing processes.

Central Government’s current trend is to increase rather than decrease services required to be performed by councils. It is unlikely that this will That Central Government Low change over the life of the Hauraki Long Term will reduce the range of Plan. services required to be carried out by the Council through legislation. 7. Resource Consents Conditions of resource consents held by the That conditions of resource Low Although there are increasing community Council will not be altered significantly. consents are altered expectations regarding the environmental significantly when being performance of Council facilities, Waikato Regional renewed. Council is aware of the significant costs involved with upgrading infrastructure and has agreed to provide advanced warning of likely changes. Resource consents are normally granted for long periods (e.g. 20 years) and are usually anticipated well in advance. Although some impacts may be significant in the longer term, financial effects are difficult to predict. 8. National National Environmental Standards will That sections of the Low There are likely to be significant time and cost Environmental continue to be drafted and adopted by reviewed District Plan will implications for having to carry out reviews of the Standards (NES) Central Government. need amending in the short relevant District Plan sections, and to carry out term and on an ongoing Plan changes and other amendments as

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Level of Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty basis. necessary, in terms of staff time/cost, public consultation, and administration support. The time Low and cost will depend on the number of NES That amendments will be adopted and their content. required to the Council’s other planning documents. It is difficult to predict with any certainty the additional responsibilities likely to be allocated to councils pending the adoptions of new NES. The Medium financial effect could be the cost of additional staff That additional responsibility or implementation of new Standards. will be allocated to councils. 9. National Policy National Policy Statements will continue to be That sections of the Low There are likely to be significant time and cost Statements (NPS) drafted and adopted by Central Government. reviewed District Plan will implications for having to carry out reviews of the need amending in the short relevant District Plan sections, and to carry out term and on an ongoing Plan changes and other amendments as basis. necessary, in terms of staff time/cost, public consultation, and administration support. The time Low and cost will depend on the number of NPS That amendments will be adopted and their content. required to the Council’s other planning documents. It is difficult to predict with any certainty the additional responsibilities likely to be allocated to Medium councils pending the adoptions of new NPS. The That additional financial effect would be the cost of additional staff. responsibilities will be allocated to councils. 10. Operating There will be no significant changes to the That there will be event(s), Medium Due to climatic variation there is an increased Environment Council’s operating environment which have e.g. natural disasters, chance of extreme weather events in Hauraki not already been planned for. requiring work that cannot District. However the Council has faced be funded out of normal unexpected events in the past, and coped budgetary provisions. adequately. There are risk management plans in place for some activities and an Operative Emergency Management Plan.

Assets are unlikely to be lost other than through Low planned end of life renewal. Therefore the financial That there will be significant effect is difficult to predict, but the Council does asset losses. carry comprehensive insurance cover on infrastructural and community assets. Refer to the Financial Assumptions above.

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Level of Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty 11. Method of Service Services will continue to be delivered at the That the service may not be Low External influences may impact upon the Delivery same cost (inflation-adjusted). able to be delivered in the way/method that a level of service is delivered (for same manner, which could example a skilled labour shortage or staff turnover). impact the cost of providing Alternatively a more efficient method of delivering the same level of service. the same level of service may become available.

If the cost to provide the level of service was to change significantly then the Council would review That costs are increased Low/Medium the timing and amount of work programmed and significantly by commodity undertaken. The financial effect is difficult to prices or economic predict, however the Council has made an conditions such as allowance for costs escalation and inflation. recession. There is continued debate within Government on local government re-organisation. This debate centres on merging smaller councils and the possibility of Unitary Authorities. Although this is a Medium medium risk, it is unlikely to happen within the next That services are three years. The financial effect could potentially centralised and no longer bring savings to the community due to increased operated by the Council. purchasing power.

12. Waihou and Piako It is expected that the Hauraki Collective That the Settlement Deed Low The Council will need to make additional funding River Catchments Treaty Settlement Deed will include provision does not provide for this. commitments to allow it deal with five separate Iwi Post- Treaty for a co-governance entity responsible for on catchment issues. Settlement Co- developing a strategic vision and direction for Governance Entity water issues in the Waihou and Piako River The Council would need to make additional funding catchments. That the Treaty Settlement Medium commitments to meet its share of the co- provides for a wide ranging governance costs and there may be additional role for this co-governance policy/service delivery costs over time. At the time entity. of preparing the 2015-25 Hauraki Long Term Plan the legal status of the co-governance entity is unknown. 13. Asset Information Performance data for assets is assumed to Asset data results over- Low The forecast financial information is based on be accurate. estimate or under-estimate current Asset Management Plan information. the need for renewal or When any new information comes to hand, forecast replacement and its cost. financial information will be changed. The net effect overall may not be significant. 14. Sustainability The Council will act in a sustainable way That the Council does not Low In performing its role the Council must take a when making decisions on major assets and act in a sustainable manner sustainable development approach as prescribed activities. when making decisions. by the Local Government Act, 2002.

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Level of Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty

It is unlikely that this will change as a result of amendments to the Act. If it were to change, the financial effect would be hard to judge until the change was known.

Often, when considering options for asset or infrastructural work, an analysis of impacts will That in the course of Medium require an alternative and more expensive solution choosing sustainable to ensure mitigation of matters such as options, costs incurred are environmental effects. This can often end up being greater. a more expensive option for the Council but necessary to meet the needs of future generations. 15. Commodity Prices The Gross Domestic Product (GDP) of the That commodity prices are Low Commodity prices are generally subject to cyclical District is significantly dependent on the subject to a long period of highs and lows that are a result of international commodity prices for pastoral farming low returns. demand at the time. A sustained period of low products and gold. returns depresses economic growth and increases rate affordability issues.

A cycle of low commodity prices has an on-going effect on the local service industries that cater for the commodity producers. 16. Climate Change  Temperature in Hauraki District will likely That the temperature will Low There are currently 35 separate climate change rise 2.5ºC during the 21st century years, change significantly during scenarios that are being used and developed by although will most likely not alter the life of the Plan. the International Panel on Climate Change. All of significantly during the life of the Hauraki these scenarios show that the global warming of Long Term Plan. the planet will happen slowly, and not overnight.

If the temperature were to increase dramatically there would be large financial impacts due to a change in the level of service needed, particularly with regard to water supply for changing land use and also for land drainage.  Rainfall will be likely to decrease by That there is a significant Low There are currently 35 separate climate change 10mm in the Plains, 20 mm in Waihi and change in annual rainfall. scenarios that are being used and developed by 10mm in Paeroa as an annual average the International Panel on Climate Change. Both during the 21st century. During the life of the increase and decreased rainfall projections the Hauraki Long Term Plan, there is would likely occur over a period of 100 years, and likely to be little change. not within the next 10.

If rainfall was to dramatically increase or decrease

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Level of Forecasting Assumption Risk Reasons and Financial Effect of Uncertainty Uncertainty in the next 10 years, there would likely be a large financial impact due to increases in the levels of service needed for stormwater, drainage and water supply.  Major rainfall intensity will be likely to That rainfall intensity Low There are currently 35 separate climate change increase by 20% during the 21st century increases dramatically scenarios that are being used and developed by in Hauraki District. This will be a gradual during the life of the Plan. the International Panel on Climate Change. increase, and only minor effects will be Increased storm intensity projections would likely likely during the life of the Hauraki Long occur over a period of 100 years, and not within the Term Plan. next 10.

If storms were to dramatically increase in the next 10 years, there would likely be a large financial impact due to increases in the levels of service needed for stormwater, drainage and water supply.  Sea Level is likely to rise by 0.5m during That sea levels rise faster Low It is globally recognised that sea level will rise the 21st century. There is likely to be than the anticipated 100 around the world. New Zealand is expecting a rise little change seen during the life of the year projection. of 0.5m over the next 100 years, and has seen a Hauraki Long Term Plan. rise of 0.16m during the 20th century. Sea level rise is a gradual occurrence and is not likely to happen overnight.

Sea level rise will affect financial systems with regard to assets. Sea defences and coastal protection would most likely need increased funding requirements.

The Ministry for the Environment (MFE) has indicated that sea level rise will be 0.5m over the That current predictions are Low/Medium next 100 years, however there has been heated incorrect and may be debate about this prediction, and even the altered. possibility of increasing it up to 0.8m. The Council has resolved to go with the midline projections of MFE, therefore leaving the uncertainty of change at a medium level. The financial effect of this would be significant as it would amend all design specifications for the District and the District Plan.

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Submission Process and Consultation Outcomes

What topics are covered in this section?

 Submission Process  Consultation Outcomes  Key Capital Works Projects 2015-25

SECTION

Submission Process and Consultation Outcomes C - 1

Submission Process

The submissions process

The Council adopted the 2015-25 Consultation Document and its supporting information for the Proposed 2015-25 Hauraki Long Term Plan, and associated Statements of Proposal (Financial Policies and the proposed Fees and Charges schedule), on 11 March 2015. The Consultation Document, supporting information and concurrent Statements of Proposal were advertised for public consultation on 20 March 2015 and the submission period closed at 4.30pm on 22 April 2015. The Council invited feedback from members of the public and any organisations or agencies that wanted to express their opinion on any matter relating to the Consultation Document, the supporting information, the draft Financial Policies including the Development Contributions Policy, and the proposed Fees and Charges schedule for 2015/16.

To provide the community with the chance to stop in and chat to their local Elected Members the Council held Ward ‘drop in’ opportunities in each Ward. These ‘Have Your Say’ opportunities were held in Paeroa on Thursday 9 April, Ngatea on Friday 10 April and Monday 13 April, Whiritoa on Wednesday 15 April and Waihi on Friday 17 April 2015.

The Council received 83 submissions to the 2015-25 Consultation Document and supporting information. 30 submitters took the opportunity to speak to their submissions at the Hearing of Submissions meetings held on 27 and 28 May 2015 at the Council Chambers in Paeroa and the Council also made its decisions on both written and verbal submissions at these meetings. Each submitter was written to and advised of Council’s decision relating to their submission. The Hauraki Long Term Plan in its draft form was amended to reflect any changes the Council made as a result of the submission process and the final Long Term Plan was adopted on 24 June 2015.

C - 2 Submission Process and Consultation Outcomes

Consultation Outcomes

As part of the consultation process the Council also sought specific direction from the community on the following ‘key community issues’:

 The Financial Strategy and Infrastructure Strategy  Economic Development and Growth  Key District and Ward projects

As a result of the Special Consultative Procedure, a number of decisions were made at the Hearing of Submissions. These include:

The Financial Strategy and Infrastructure Strategy

There were no substantive changes as a result of consultation to these directional documents.

The Council received only two submissions regarding the draft 2015-25 Financial Strategy and these were in support of the directions outlined. No changes were made to the Financial Strategy following the consultation period; however, other changes throughout the Plan have meant that the rates and debt positions outlined in the Financial Strategy have shifted slightly, but the overall District average rates increase excluding water remains at 3.6% for the 2015/16 year with the average of the life of the Plan being 3.7%.

The Financial Strategy was adopted by Council on 24 June 2015 and became effective on 1 July 2015. The full Financial Strategy is located in Section B of this Long Term Plan.

The Council received three submissions regarding the draft 2015-45 Infrastructure Strategy and these were in support of how the Council had outlined the infrastructure challenges it faces and its proposed responses.

No changes were made to the Infrastructure Strategy as a result of the Hearing of Submissions; however, other changes throughout the Plan have meant that the financial information contained in the Infrastructure Strategy shifted slightly.

The Infrastructure Strategy was adopted by Council on 24 June 2015 and became effective on 1 July 2015. The full Infrastructure Strategy is also located in Section B of this Long Term Plan.

Economic Development Funding and Initiatives

As part of the public consultation process the Council sought community feedback on:  its proposed allocation of funding for economic development activities  whether or not the public supported the Council investing in a new wastewater treatment plant at Kerepehi;  the provision of further funding towards the construction of the Kaiaua to Kopu section of the Hauraki Rail Trail.

The submissions received regarding the proposed funding for economic development activities were predominantly divided between continuing to fund the current initiatives as detailed in the Consultation Document, and reducing expenditure on these current activities with the expenditure saved to be used for other economic development initiatives.

Submission Process and Consultation Outcomes C - 3

Following the discussions on the submissions received the Council decided to retain the funding proposed to economic development initiatives for the 2015/16 year as was outlined in the Consultation Document, with one exception. The Council has reduced the funding set aside for the Paeroa Visitor Centre by $10,000 per year as it is of the view that savings can be made on past operating costs.

The Council also decided to continue to pursue the ‘Food Hub’ proposal for another two years, and review this as part of the 2017/18 Annual Plan process. The Council may consider in the future making some funding contribution to upgrading the wastewater treatment plant at Kerepehi on a case by case basis. The Council will also further investigate options and costs for the development of a wastewater treatment plant at Kerepehi and will further consult with the community regarding that proposal.

As the majority of submitters supported the development of the Kaiaua to Kopu section of the Hauraki Rail Trail, the Council will aim to continue with the project; however, the funding requirement remains uncertain. At the time of writing, the success (or otherwise) of external funding applications were not yet known. The Council’s preference to fund its commitment is firstly through external funding, followed by proceeds from asset sales, use of the District Community Projects Assistance Fund, depreciation funding, or rate funding.

The Council’s $1million commitment to the development of the Kaiaua to Kopu section of the Hauraki Rail Trail has been recognised in the 2014/15 Annual Plan and in the opening balances of the 2015-25 Hauraki Long Term Plan. There is no additional financial commitment to the Hauraki Rail Trail for the Kaiaua to Kopu section in the 2015-25 Hauraki Long Term Plan. Depending on the outcome of the external funding applications, an additional commitment may be required and this will be considered as part of the 2016/17 Annual Plan process. At this time, no extra financial commitment has been recognised in the 2015-25 Hauraki Long Term Plan.

Other key changes as a result of the consultation process As a result of some submissions made during the consultation process, further work will take place to progress a number of matters raised at an operational level, such as addressing some specific localised service requests and the consideration of some smaller Ward related projects by Ward Committees.

It was also concluded that some matters raised through submissions, more applicable to other organisations outside of Hauraki District Council, were to be progressed and in general related to matters concerning state highways, regional social initiatives and cycleways connecting to the Hauraki District.

Of those decisions that were able to be made at the Hearing of Submissions, the following changes have been made and integrated into the Hauraki Long Term Plan for 2015-25.

Grants The Council resolved to make the following grants:  $5,000 per annum for three years to Age Concern to help support a range of services offered to the elderly.  $8,000 per annum for three years to Citizens Advice Bureau Hauraki, to contribute towards rental and power supply costs.  $500 per annum for ten years to the Kaiaua Community Library, with a review in three years, to contribute to stationary costs, small maintenance programmes costs and the fuel costs for collecting loan books from the Paeroa Library.  $500 per annum for three years towards rates for Paeroa Plunket through Council’s Rates Remission Policies.  $3,000 grant for the Kaiaua Community Hall in 2015/16 from the Plains Community Initiatives Grants and Donations budget, with the intention to consult with both the Kaiaua community and the Kerepehi community during the 2016/17 Annual Plan on the possibility of introducing a community hall rate for each community.

C - 4 Submission Process and Consultation Outcomes

Capital works  An additional $96,000 has been allocated for developments to Brennan Field in Paeroa including that of upgrading the lighting in 2017/18.  An additional $50,000 in 2016/17 has been included for the planning and design of the upper Seddon Street streetscape project in Waihi, to enable Council to consider in detail the continuation of the current architecture and streetscape already in place for part of Seddon Street.  $34,000 has been removed from the Paeroa Rural Drainage District budget for the piping of the roadside drain on Ngahutoitoi Marae Road as it outside the responsibility of the drainage committee.

Operational  $2,800 per annum has been added for three years to mow Coffey’s Walk; situated in Wellington Street and Victoria Street, Waihi as requested by the Waihi District Walkways Inc.  An additional $15,000 per annum has been included in the Council remuneration budget as awarded by the Remuneration Authority.  The Ward business rate has been reverted from Capital Value to an Annual Charge. This is contrary to what was proposed in the Draft Revenue and Financing Policy as for some ratepayers the large movements were considered and Council felt it needed to be readdressed and will be reconsidered in further detail during the next Annual Plan process.  Council has committed to preparing and/or improving the current service level agreements with a number of those organisations that receive financial assistance from Council during 2015 to improve levels of transparency through improved performance indicators, to improve organisational accountability and to ensure deliverables are appropriate for the money committed by Council.  Council decided to strategically review the overall placement of surveillance cameras across the District and develop a policy regarding the use of CCTV footage.

Policies The Council considered through the submissions process the following polices.  Fees and Charges for 2015/16  Rates Remissions Policies  Development Contributions Policy  Revenue and Financing Policy

These policies were all adopted subsequent to minor changes and are available on the Council’s website www.hauraki-dc.govt.nz

Future changes to the Long Term Plan Any major changes to this Plan required following 1 July, 2015 including for the introduction of significant projects, will be required to go through another full, formal public consultation process. This can be done at any time of the year, and would be publicly advertised for the community’s feedback. As noted previously in this Plan, any minor changes or variations will be proposed in an Annual Plan appropriate to the year.

Submission Process and Consultation Outcomes C - 5

Key Capital Works Projects 2015-25

Over the next 10 years, the Council will undertake many projects within our communities – those projects can range in scale from a new playground to a new water treatment plant. The following provides an overview of the key District and Ward projects. For further information about the capital projects planned, refer to each Group of Activities section, or view the full list of capital works detailed within the Financial Statements within Volume 2 of this document.

Key District Capital Projects

Project Year Total funding

Decommission the intake for the Kaimanawa water scheme, and connect to the Plains or 2015/16, 2016/17 $2.0million Paeroa water supply. Upgrade the Waitakaruru water treatment plant to comply with the New Zealand 2015/16 $1million Drinking Water Standards. Provide increased capacity of treated water 2015/16 $2.9million storage for the Hauraki Plains. Capital expenditure is planned for the roading activity including renewing existing 2015/16 - 2024/25 $32.4million infrastructure and also increasing the current safety levels of service provided. Pipe renewals to address infiltration of stormwater into the Paeroa wastewater 2015/16 - 2018/19 $2.2million network The Council will contribute 5% to the total estimated capital cost ($2.2million) of the 2015/16 $110,000 Muggeridge pump project. The Council will fund its share from the sale of assets.

Key Projects for the Paeroa Ward

Project Year Total funding Pukerimu Cemetery ashes wall and major 2015/16, 2016/17, 2017/18, $295,000 development 2018/19 Hutchinson Reserve development 2015/16 - 2018/19 $217,000 Wharf Street/Mackay Street development 2015/16, 2017/18 $517,000 Primrose Hill walkway to summit, cenotaph 2016/17 - 2018/19 $159,000 area development and car park extension Paeroa new kerb and channel 2016/17 - 2024/25 $582,000 Paeroa new footpaths 2016/17 - 2024/25 $689,000 Brenan Field development including lighting 2017/18 $96,000

C - 6 Submission Process and Consultation Outcomes

Key Projects for the Plains Ward

Project Year Total funding New Kaiaua public toilets 2017/18 $157,000 Turua jetty redevelopment 2016/17 $10,000 Turua domain car park development 2016/17 $15,000 Pioneer Park BBQ 2017/18 $20,000 Hugh Hayward domain watering system and 2015/16, 2016/17 $16,000 additional speed signs Upgrade of the Ngatea swimming pool 2016/17 $87,000 heating Ngatea main street entrances 2016/17 $41,000 Waitakaruru domain bitumen reseal, war memorial entrance and gates upgrade, and 2015/16, 2016/17 $38,000 car park renewals Plains new footpaths 2015/16, 2017/18, 2020/21 $67,000

Key Projects for the Waihi Ward

Project Year Total funding Waihi Cemetery fencing, new berm and 2016/17 and 2017/18 $48,000 ashes garden Morgan Park redevelopment 2016/17 $512,000 Gilmour Lake - lake edge footpath, signage, 2015/16, 2016/17 $70,000 BBQ and parking on George Street Pohutukawa Reserve changing rooms conversion, outside shower, and surf club 2015/16, 2016/17 $20,000 toilets Victoria Park installation of bike rack and notice board, removal of tunnel at the play area, remove or revamp skate bowl and 2015/16, 2016/17 $21,000 seating area, and upgrade dump station at toilets Waihi kerb and channel 2015/16 - 2024/25 $639,000 Waihi new footpaths 2015/16 - 2024/25 $464,000 Planning and design of upper Seddon Street 2016/17 $50,000 streetscape

Submission Process and Consultation Outcomes C - 7

C - 8 Submission Process and Consultation Outcomes

Decision making processes

What topics are covered in this section?

 A summary of the Council’s decision making and consultation approach  A summary the Council’s Significance and Engagement Policy  Māori involvement in the Council’s decision making

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Decision making processes D - 1

Summary of the Council’s decision making and consultation approach

On behalf of its community, the Council is required to make many decisions to meet statutory and operational requirements. Consequently Elected Members are constantly making decisions on behalf of the community - and the decisions vary in scope and scale from minor to very significant. In making its decisions, the Council must be guided by the decision making requirements that are contained in the many separate pieces of legislation it implements, but particularly in sections 75 to 87 of the Local Government Act, 2002. Through consultation, the Council provides opportunities for the community and other stakeholders to actively participate in decisions that affect the future well-being of the Hauraki District.

The consultation that the Council carries out with the community is guided by its Significance and Engagement Policy (which is summarised on the next page), and the consultation sections of the many separate pieces of legislation it implements, specifically sections 82 to 87 of the Local Government Act, 2002. Consultation and/or engagement are crucial to the Council’s decision making ensuring that the full range of perspectives is considered. Hauraki District Council takes pride in the way it communicates with its community. As an organisation responsible to the communities it serves, Hauraki District Council is committed to on-going and effective consultation and engagement.

Some decisions cannot be made by the Council on behalf of its communities unless explicitly provided for in the Hauraki Long Term Plan, and therefore must be made using the Special Consultative Procedure (SCP). The SCP is a prescribed consultation method that includes a statement of proposal (summary documentation including the policy or decision Council is consulting on), the opportunity to submit on that proposal, and generally a Hearings process (an opportunity to speak to your written submission). This ensures that decisions are considered by as many members of the community as possible within the wider context of a full consultative process, and they are also subject to independent auditing processes.

Recent amendments to the Local Government Act have reduced the number of prescribed SCPs required. However Council values this method of consulting with its community and will still consider using it in various circumstances.

Decisions that do not require the SCP are still considered by the Council and require a thorough and transparent decision making process, including a decision on the extent of consultation and community engagement required. Decision making templates have been designed and are used by staff to ensure all options are presented to Elected Members in a manner that demonstrates they have been assessed and considered and that engagement with the community is done at an appropriate level where necessary.

Operational decisions will generally not be subject to consultation or use such decision making processes as they are the responsibility of the Chief Executive.

D - 2 Decision making processes

Summary of the Council’s Significance and Engagement Policy

As a result of changes to the Local Government Act, 2002 in 2014, the Council’s previous Significance Policy and Consultation Policy were superceded. The new requirement for a Significance and Engagement Policy became the second generation policy for this task. The following information provides a summary of this Policy as required by schedule 10 section 11 of the Local Government, Act 2002.

The purpose of the Council’s Significance and Engagement Policy is to:

 enable the Council and the community to identify the degree of significance of particular issues that it is considering.  provide clarity about how and when the community can expect to be engaged in the decision making process.  inform the Council from the beginning of the decision making process about the level and type of engagement required.

The policy is also required to list Councils strategic assets which are assts owned by Council that it needs to retain if it is to maintain its capacity to achieve or promote outcomes determined to be important to the current or future well-being of the community.

The Significance and Engagement Policy assists Council in determining what the important issues are for its community and how it will involve the community in making those decisions. Community engagement is a process, involves all or some of the public and is focussed on decision-making or problem-solving.

In general, the more significant an issue, the greater the need for community engagement; however, each issue will be dealt with on a case by case basis when determining the level and type of community engagement required. The criteria for consideration of the level of engagement with the community are detailed in section 3 of the Significance and Engagement Policy.

Section 3.5 of the Policy sets a number of thresholds for the Council to consider when undertaking a process to determine the extent to which proposals and decisions are significant, and to determine the level of engagement required with the community. The thresholds that generally determine the level of consultation required are set out below. Reaching one of these thresholds will then prompt further investigation as to the level at which consultation is best set (i.e. inform; consult; involve; collaborate or empower):

 Individual issues, assets, or other matters that incur more than $1,000,000 in excess of budgeted expenditure, as identified in the Annual Plan and/or the Hauraki Long Term Plan, and/or more than $1,000,000 of unbudgeted expenditure.  Any transfer of ownership or control, or abandonment, of a strategic asset as defined by the Local Government Act, 2002 or listed in Part 3.4 of the Policy.  A decision that will, directly or indirectly, significantly affect the capacity of the Council to carry out any activity identified in the adopted Hauraki Long Term Plan.  Entry into any partnership with the private sector to carry out a significant activity.  A decision that will trigger a breach of one or more of Council’s Rates Caps as detailed in the Council’s operative Financial Strategy.  A decision that will trigger a breach of one or more of Council’s Debt Caps as detailed in the Council’s operative Financial Strategy.

Decision making processes D - 3

In general, the more significant an issue, the greater the need for community engagement. The following spectrum is used to show examples of the form of engagement used at which level. Differing levels of engagement may be required during the varying phases of decision-making on an issue, and for different stakeholders. 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.

Level Inform Consult Involve Collaborate Empower

What One-way Two-way Participatory Working together to The final decision does it communication communications process designed develop making is in the involve providing designed to obtain to help identify understanding of all hands of the public. balanced and public feedback about issues and views to issues and Under the LGA objective ideas on rationale, ensure that interests to work 2002, the Mayor information to alternatives and concerns and out alternatives and and Councillors are assist proposals to inform aspirations are identify preferred elected to make understanding decision making. understood and solutions. decisions on behalf about something considered prior to of their that is going to decision-making. constituents. happen or has happened.

Schedule one of the Significance and Engagement Policy lists the Council’s strategic assets. These are:

 the Roading network as a whole  the Land Drainage network as a whole  the Wastewater network as a whole  the Water network as a whole  the urban Stormwater network as a whole.  Memorial Halls in Ngatea, Paeroa and Waihi  pensioner housing.

Schedule 2 of the Significance and Engagement Policy is a community engagement guide. It provides a guide to the level and type of engagement that the Council should consider as appropriate consultation when making decisions on different issues, and the form and type of engagement required (highlighted version above).

The full Significance and Engagement Policy is available on the Council’s website www.hauraki-dc.govt.nz.

D - 4 Decision making processes

Māori participation in decision making

The Local Government Act, 2002 places responsibilities on Council to consult with Māori and to involve Māori in decision making processes. It also encourages the Council to assist Māori to take part in local government processes.

The Council acknowledges its responsibility under the Local Government Act, 2002 and will, during the life of the 2015-25 Hauraki Long Term Plan, be considering further initiatives to:

 identify matters and areas of interest to Hauraki Iwi  foster consultation with Hauraki Iwi and Tangata Whenua  foster capacity building of Māori to take part in decision making processes  provide information to assist Māori participation in decision making  consider options for capacity building of Tangata Whenua to better enable their participation in decision making processes  recognise the special status of Mana Whenua and take into account the Treaty of Waitangi in resource management decision making processes.

Particular programmes and initiatives that give effect to these responsibilities have been developed (as listed below) and will continue to assist the Council during the life of the Long Term Plan to develop further initiatives and programmes.

Community Outcomes

The Council has adopted a specific Community Outcome relating to its goals and aspirations for working with Māori, which acknowledges its responsibilities for involving Māori in its decision making processes. The Outcome states:

We take a collaborative approach with both Mana Whenua and Tangata Whenua in our District:

 we advocate for forums which ensure involvement and consultation in decision-making processes  we ensure appropriate regard is made to taonga and culturally significant matters  we encourage the development of partnerships for the delivery of services and programmes.

Consultative Committee on Water and Waste

The Council has had a Standing Committee on Water and Waste for many years and its role is:

 to provide a forum for regular and ongoing consultation on water and wastewater issues currently facing the District, with representation from special interest groups including iwi.  to have regular, open consultation on the issues of water and waste and make recommendations to the Council.

The six iwi with Mana Whenua status (as listed below) are entitled to appoint a representative to this Committee.

Decision making processes D - 5

Memoranda of Partnerships

The Council has acknowledged six iwi as having Mana Whenua (those with authority over the land) status within the District. It also acknowledges that some Māori in the District do not have Mana Whenua status but, as Tangata Whenua, are included in the Council’s responsibilities in relation to Māori.

Iwi with acknowledged Mana Whenua status are:

 Ngati Hako  Ngati Maru  Ngati Paoa  Ngati Tamatera  Ngati Tara Tokanui  Ngaati Whanaunga.

The Council currently has four Memoranda of Partnerships with individual iwi and is actively encouraging the development of two additional Memoranda of Partnerships. The Council will, during the course of this Long Term Plan, seek to develop Memoranda of Partnerships with Ngati Whanaunga and Ngati Tara Tokanui.

Mana Whenua Forum

The Council and iwi groups having Mana Whenua status in the Hauraki District Council rohe have established a Mana Whenua Forum. The first meeting of this Forum was held on 21 March 2012. This Forum works within a Heads of Agreement titled “Te Mana Whenua Forum Mo Te Rohe o Te Kaunihera”.

The role of the Forum is to:

 provide a mechanism whereby Māori, who have Mana Whenua status in respect to the jurisdictional boundaries within Hauraki District, can meet with the Council and participate meaningfully in decision making processes,  facilitate Mana Whenua contribution to the Council’s decision making,  consider any matter to promote the social, economic, environmental and cultural well-being of Mana Whenua.

The Hauraki Treaty Settlement claims that are currently in the process of being negotiated with the Crown, the Hauraki Collective and individual Hauraki Iwi, have resulted in Forum meetings being suspended in the interim. The treaty claims processes are the highest priority for Hauraki Iwi and have proven to be resource intensive both in terms of personnel and time. The Treaty Settlements are expected to reach draft Deeds of Settlement in 2015 and the Forum is hopeful that when this point is reached the Forum will resume its regular meetings.

The Forum is seen as a potentially valuable mechanism for furthering relationships.

Treaty of Waitangi Settlements

Hauraki Iwi are collectively and individually in the process of negotiating treaty settlements with the Crown; these processes have been underway for some time. A Hauraki framework agreement was agreed with the Crown in 2010 and this has set the process to be followed by the parties. Significant progress has been made on these settlement discussions and, although the various settlement negotiations are currently at different stages, it is expected that draft Deeds of Settlement will be achieved in 2015.

It is highly likely that the Hauraki Collective Treaty Settlement Deed will include the establishment of a co- governance entity for the Waihou, Piako and Coromandel catchments and that Hauraki Iwi (including representatives of upper catchment iwi), the Waikato Regional Council and the territorial authorities involved will be represented on this body. The purpose and role of this body will be finalised as part of the

D - 6 Decision making processes negotiation process. The Council expects to be involved, given that both the Piako and Waihou Rivers flow through the District and exit into the Firth of Thames.

The Council is currently negotiating with local iwi and the Central Government Office of Treaty Settlements for the co-governance of one reserve in Waihi and one reserve in Kaiaua that will form part of the settlements for two individual iwi. The finalisation of these co-governance agreements will take place in 2015/16 and will involve the future co management of these sites.

Decision making processes D - 7

D - 8 Decision making processes

Introduction to Groups of Activities

Groups of Activities - what are they?

There are ten Groups of Activities in this Plan.

In accordance with Schedule 10, part 1, section 2 of the Local Government Act, 2002 a Long Term Plan must include the following Groups of Activities:

 water supply  sewerage and the treatment and disposal of sewage  stormwater drainage  flood protection and control works  the provision of roads and footpaths and any other Group of Activities the Council believes should be included.

The Hauraki District Council has identified five additional Groups for inclusion in its 2015-25 Hauraki Long Term Plan. The Council has also altered the names of the legislatively required Groups for simplicity and to reflect the public’s understanding of these Groups, while still meeting the legislative requirements in accordance with Schedule 10 of the Act.

For some Groups of Activities the Council has chosen to focus on a single activity rather than breaking it down into its sub-activities. This was considered appropriate as the provision of these activities is seen by the public (and the Council) to be one activity. For example, the provision of water is of interest to the reader, rather than its separate components of water source, treatment, storage and distribution. These component parts are detailed in the accounting lines under the Water Supply activity.

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Introduction to Groups of Activities E - 1

Legislative Group of Also known as: Rationale for amendment Activities Water supply Water supply The Council has not changed the legislative name, however, throughout the text water supply is referred to as a single activity. The component parts of the activity are detailed in its accounting lines. Sewerage and the treatment Wastewater The Council has used the term ‘Wastewater’ to and disposal of sewage describe all references to the treatment and disposal of sewage since the year 2000, and the Council felt it was unnecessarily confusing to change the term again when the description Wastewater activity is all encompassing and simpler. Stormwater drainage Stormwater Removal of the word ‘drainage’ to avoid confusion for the Hauraki residents between the Stormwater and Land Drainage activities. The Land Drainage activity, which is so important and unique to just a small number of authorities including Hauraki District Council, is a separate activity to Stormwater. From the reader’s perspective there is only one primary activity in this Group of Activities and this is the provision of Stormwater. Flood protection and control Land Drainage and flood The addition of Land Drainage to the title for this works protection and control activity reflects the Council’s view that these two works, or alternatively Land elements of rural drainage are integrated. Land Drainage. drainage and flood protection and control both work towards achieving the same goals in terms of retaining the productive capability of the land, therefore these activities have been incorporated into one Group of Activities. The provision of roads and Roading The name has been simplified for improved footpaths readability and understanding. The Council has decided to refer to this activity as the Roading activity, as the term ‘Roading’ encompasses all roading and roading related activities such as footpaths, lighting, kerb and channel, street and road signs etc.

Additional Groups of Activities specific to Hauraki Rationale for addition District Council Governance and Leadership The need to highlight the significance of the Council’s Democracy, Iwi Liaison and Policy Development activities. Solid Waste An important infrastructural service activity that does not align with the legislatively defined Groups of Activities. Community Development Group of Activities incorporating Community Initiatives and Community Growth and their sub-activities, and is a necessary part of Council’s elective operations that focus on social and economic well-being. Community Services Group of Activities incorporating Community Facilities and Community Recreation and their sub-activities. In most cases there is either legislation or community expectation that Council will provide these activities. Regulatory Services Group of Activities incorporating Building Control, Resource Management Implementation, Community Protection and Animal Control are included as they demonstrate Council’s legislatively required regulatory roles.

E - 2 Introduction to Groups of Activities

What is contained in each Group of Activities?

In each Group you will find a series of headings, some included at a ‘Group level’ and some at the ‘Activity level’. Below is a description of what is covered under each heading.

What is the ………… activity and why is Council involved? A description of the Group of Activity or Activity and the rationale behind Councils involvement.

Which activities are involved in this Group? A list of the individual activities included within the Group where relevant.

Key legislative drivers Lists the key legislation relevant to the Group of Activities.

Relevant Policies, Plans and Strategies This section lists the different policies that the department is responsible for considering or implementing in providing the activity, as well as the plans and strategies that are written and maintained by the staff within the activity.

What are the significant negative effects on the local community? A list of identified negative effects that Council takes into consideration when undertaking planning for this activity.

What are the costs of operating the ...... group? A high level look at the 10 year accounting forecast for the activity including projected revenue and expenditure.

Funding Impact Statement for the ...... group Accounting lines showing the full impacts of funding and including operating surpluses or deficits.

How does the Council deliver the ...... activity? Provides a brief explanation of how the Council delivers the infrastructure or service that is included as part of this activity.

Demand Management This section outlines how the Council has planned to cater for the potential growth/decline in demand for a service.

Collaborative Projects This section explains Council’s involvement in projects where collaboration is being (or will be) achieved with other councils, organisations or agencies where there are benefits in doing so for the parties involved.

Introduction to Groups of Activities E - 3

Levels of Service and how Council measures them This details the current levels of service provided by the Council to users of the service, along with the means the Council uses to measure its achievements, and how they contribute to the Community Outcomes. The main Community Outcome being addressed is identified using the appropriate icon.

Mandatory Performance Measures (2015-25)* In 2014 Central Government imposed mandatory performance measures on local councils throughout New Zealand to enable benchmarking to be undertaken. These measures are prescribed for five of Council’s network services Groups of Activities. The mandatory measures are included within this section and within the underlying Asset Management Plans.

Changes to Levels of Service This section highlights any changes to the level of service between the 2012-22 and 2015-25 Long Term Plans.

Possible future changes to Levels of Service Possible changes to the agreed levels of service are identified and described along with the reason such changes may be considered by the Council.

Future Directions This section outlines any strategic initiatives, plans or actions the Council is aware of that may occur within the life of this Plan. Council does not have sufficient knowledge or information to include a budget for these in the current 2015-25 Hauraki Long Term Plan.

Programmed actions for 2015-25 This section provides details of future planning for the activity for the life of this Plan with a focus on the next three years. Where appropriate, brief descriptions are provided of the major and/or significant capital works, including a table showing the costs of those capital works programmes.

By doing all of the projects provided in the following sections we will be in a position to maintain our current levels of service throughout the life of this Plan. The Council will not only monitor and report to Council based on the performance measures you see, but also on the progress of the capital programmes. The Council will also report back to the public on capital works programmes through each year’s Annual Report. This section will give you a good indication of the works the Council thinks are required, while still being financially prudent.

Capital Works Schedule A list of the capital works scheduled and the year in which the work is planned is detailed; further information can be gained from the Asset Management Plans on particular projects.

What is the cost of operating the ...... activity? Provides a financial summary, by activity, of:  The operating costs of those activities over the 10 year life of this Plan listed by sub activity.  A summary of the operating revenue.

Note: Some sections do not apply to all groups or activities.

E - 4 Introduction to Groups of Activities

Governance and Leadership

What is the Governance and Leadership group and why is the Council involved?

The purpose of Local Government as defined in the Local Government Act, 2002 is to:

 enable democratic local decision making and action by and on behalf of communities  provide for local government to meet the current and future needs of communities for good quality infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses.

It is the Council’s mission to:

 actively provide leadership to and advocate for the community  provide good quality infrastructure, services and regulatory functions  foster open-minded and two-way communication with the community  ensure the sustainable use and management of resources …for the benefit of all who live in, work in and visit the Hauraki District.

The activities undertaken in the Governance and Leadership group collectively enable the Council to meet legislative and stewardship responsibilities, which are to:

 establish the District’s strategic direction based on the community’s needs as set out in this document - the 2015-25 Hauraki Long Term Plan  deliver the Hauraki Long Term Plan, the Annual Plan, the District Plan and the Annual Report  determine the services and activities to be undertaken by the Council  consult and engage with the community and specifically with Iwi on all significant issues  determine local policy and legislation in the best interests of the Hauraki community  determine policies, strategies and plans and service delivery approaches  administer various statutes and regulations  ensure the integrity of management control systems  safeguard public interest  report to ratepayers and residents.

Governance and Leadership E - 5

What activities are involved in Governance and Leadership?

Democracy The primary rationale for Governance of the Hauraki District arises from the local election process, in which communities elect a Mayor and Councillors to represent them on the Council and to make decisions on their behalf. The Council has a responsibility to provide leadership and stewardship for the community and to involve the community in decision making processes and long-term strategic planning.

Iwi Liaison The primary rationale of Iwi Liaison is to facilitate input from the Māori community into democratic and community decision making processes and to acknowledge the Council’s responsibilities (under various legislative requirements) to consult and work with Māori.

Policy Development The primary role of Policy Development is to establish strategic direction in all policy, strategy, by-law and planning matters.

The key strategic documents include the Hauraki Long Term Plan, the Annual Plan, the Annual Report and the District Plan.

Key legislative drivers

 Local Government Act, 1974  Local Government Act, 2002  Local Electoral Act, 2001  Resource Management Act, 1991  Local Government Official Information and Meetings Act, 1987.

Relevant Policies, Plans and Strategies

 Hauraki District Plan  Hauraki Long Term Plan  Annual Plan  Annual Report  Asset Management Plans  Activity Management Plans  Hauraki Consolidated Bylaw  Significance and Engagement Policy  Development Contributions Policy.

E - 6 Governance and Leadership

What are the significant negative effects on the local community?

All Governance and Leadership activities  Particularly strong and proactive voices and specific interest groups can potentially have considerable influence over the democratic decision making process.  There could be expectations that the Council will have the same priority for all Community Outcome initiatives.  The difficulty of balancing the needs and wants of differing sectors of the community, including residents versus out-of-District ratepayers.  Additional obligations and responsibilities can be placed on Councils by legislation; the legislation may or may not allow for any additional costs to be met.  National elections can result in new governments and substantial changes in national, regional and local priorities.

Democracy  Change in elected members has the potential to change adopted strategic direction.  Committee structures, roles and accountabilities can change after each triennial election.  Communication with all of the appropriate communities and groups can be difficult logistically, particularly in terms of resourcing for Council.

Iwi Liaison  Some policies could be seen to be advantageous for Māori and disadvantageous for other ethnicities.

Policy Development  Some policies take time to develop and consult on and therefore may take some months (or even years) to be adopted.  Policy can sometimes be of advantage to some individuals or groups at the expense of others.  The time it takes and cost to carry out changes to the District Plan can be significant.  The Policy Development activity is directed by legislation and Council direction, and is subject to change based on changing Government and Council priorities.  Stated actions in the Hauraki Long Term Plan may not eventuate therefore some community expectations may not be met.

Governance and Leadership E - 7

What are the costs of operating the Governance and Leadership group?

Budget Forecast Forecast ForecastForecastForecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Democracy 1,837 1,696 1,856 1,810 1,801 1,790 1,790 1,794 1,718 1,701 1,696 Iwi Liaison 52 72 73 75 76 78 80 82 84 87 89 Policy Development 991 714 722 868 752 769 932 808 828 1,009 875 2,880 2,482 2,651 2,753 2,629 2,637 2,802 2,684 2,630 2,797 2,660

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates ------General Rates 2,914 2,103 2,325 2,356 2,409 2,423 2,537 2,444 2,383 2,390 2,317 2,914 2,103 2,325 2,356 2,409 2,423 2,537 2,444 2,383 2,390 2,317

OPERATING SURPLUS/(DEFICIT) 34 (379) (326) (397) (220) (214) (265) (240) (247) (407) (343)

E - 8 Governance and Leadership

Funding Impact Statement for 2015-25 for the Governance and Leadership Group

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 2,913 2,103 2,325 2,356 2,409 2,423 2,537 2,444 2,383 2,390 2,317 Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts ------Total Operating Funding (A) 2,913 2,103 2,325 2,356 2,409 2,423 2,537 2,444 2,383 2,390 2,317

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 1,219 1,009 1,113 1,209 1,076 1,101 1,282 1,215 1,206 1,395 1,261 Finance Costs - (491) (454) (526) (580) (739) (942) (1,134) (1,375) (1,627) (1,757) Internal charges and overheads applied 1,656 1,960 1,988 2,066 2,129 2,271 2,457 2,598 2,794 3,024 3,151 Other operating funding applications ------Total Applications of Operating Funding (B) 2,875 2,478 2,647 2,749 2,625 2,633 2,797 2,679 2,625 2,792 2,655

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 38 (375) (322) (393) (216) (210) (260) (235) (242) (402) (338)

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase (decrease) in debt - 531 (423) (58) (1,001) (1,370) (1,150) (1,543) (1,547) (492) (855) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) - 531 (423) (58) (1,001) (1,370) (1,150) (1,543) (1,547) (492) (855)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service ------to replace existing assets ------Increase (decrease) in reserves 38 156 (745) (451) (1,217) (1,580) (1,410) (1,778) (1,789) (894) (1,193) Increase (decrease) of investments ------Total Applications of Capital Funding (D) 38 156 (745) (451) (1,217) (1,580) (1,410) (1,778) (1,789) (894) (1,193)

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (38) 375 322 393 216 210 260 235 242 402 338

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) 34 (379) (326) (397) (220) (214) (265) (240) (247) (407) (343)

Depreciation/Assets written off 4 4 4 4 4 4 5 5 5 5 5 Subsidies and grants for capital expenditure ------Development and financial contributions ------Vested Asset Income ------SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 38 (375) (322) (393) (216) (210) (260) (235) (242) (402) (338)

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

Governance and Leadership E - 9

Democracy

What is the Democracy activity?

Local Government in New Zealand is empowered by the Government through the Local Government Act, 2002 as well as other legislation, and operated through a local democratic system. Democracy for Hauraki District is defined as the governance of the Hauraki District by the District’s residents through their elected representatives. Democratic representation is currently considered to be the most appropriate way for the community’s voice to be heard. The Local Government Act, 2002 and the Local Electoral Act, 2001, determine the processes that ensure each community is fairly represented.

The Hauraki District community has elected 13 representatives from across the Paeroa, Hauraki Plains and Waihi Wards to:

 provide representative and accountable governance and leadership to the community  assess community related issues which affect the Hauraki District and make informed decisions on behalf of residents, ratepayers and stakeholders.

How does the Council provide the Democracy activity? Mayor and Councillors (Elected Members) The Mayor and Councillors are elected every three years. The Mayor is responsible for providing leadership to the Council and the people of the District. The Council provides governance, leadership and direction in community management through consultation, decision making, advocacy, facilitation and monitoring. Key documents which the Council and its community are guided by are the Hauraki Long Term Plan, the Annual Plan and the District Plan.

The Council exercises its responsibilities under the Local Government Act, 2002 as well as approximately 100 other Acts and associated regulations.

Section 14 of the Local Government Act, 2002 defines the principles that the Council must act in accordance with. A summary of these principles is as follows:

The Council should:

 conduct all its business in an open and transparent manner  deliver its priorities and services effectively  make itself aware of community views  have regard to the view of its communities when making decisions  provide opportunities for Māori to be involved in decision making  seek to collaborate with other local authorities  ensure financial prudence  ensure prudent stewardship of resources for the benefit of the District  plan for future management of its assets  when making decisions, take account of: - the diversity of its community’s interests and well beings. - the interests of the communities in the future. - the effect of its decisions.

The Council is required to prepare a Local Governance Statement which explains in detail its role, how it operates and other information on its local authority responsibilities. This Local Governance Statement is fully reviewed after each election, as well as being reviewed for currency every six months. The up to date version is available on the Council’s website www.hauraki-dc.govt.nz.

E - 10 Governance and Leadership

The Council conducts satisfaction surveys annually to assess users’ satisfaction with, and perception of, the effectiveness of Council services. The results help to ensure the Council is aware of the changing community perspective on an annual basis; the results are then reported in the Council’s Annual Reports. Near the end of the political term, the Council also conducts a triennial survey; this asks additional questions that will be topical and of interest to the new elected members after the triennial elections. The results inform the newly elected Council as it sets it goals and programme for the coming three years. The next triennial survey is due to be undertaken in 2016.

Council Structure Councillors are elected from three Wards as follows:

 Paeroa Ward: 4 Councillors  Plains Ward: 4 Councillors  Waihi Ward: 4 Councillors

The Mayor is elected from the District at large.

The Mayor has the right to appoint the Deputy Mayor, establish the committee structure of the Council and appoint the chairpersons of committees. However, these appointments can be changed by the Council. The Mayor also takes a lead role in setting the policy objectives for the Council.

Meetings and Committees The Council meets on the last Wednesday of each month at the Paeroa Council Office, commencing at 9:00am. Extraordinary meetings are scheduled as required. The Council has a number of other Standing Committees:

 Paeroa Ward Committee  Plains Ward Committee  Waihi Ward Committee  Operations Committee  Audit and Risk Committee  Judicial Committee  District Plan Committee  Consultative Water and Waste Committee  Mana Whenua Forum  District Licensing Committee  Drainage Committees.

The incoming Mayor reviews the committee structures of the Council after each triennial election. The last review of committee structures was in 2013. The next review will be in 2016.

The Council also has a number of small committees and sub-committees that meet as and when required to deal with specific matters, such as economic development and road safety.

Governance and Leadership E - 11

Your Mayor and Councillors

Mayor Mr John Tregidga, J.P., MNZM

(07) 862 8956

Waihi Ward Councillors Plains Ward Councillors Paeroa Ward Councillors

Mr Harry Shepherd, Mrs Gill Leonard, Mrs Julie Bubb, Chairperson J.P., Chairperson J.P., Chairperson (07) 863 7589 (07) 867 7535 (07) 862 7188

Mr Max McLean Mr Greg Harris Mr Paul Milner (07) 863 5151 (027) 4851 072 (07) 862 7759

Mr Ashley Tubman Mr Bruce Gordon Mr Toby Adams J.P. Deputy Mayor (07) 862 6993 (07) 863 8681 (07) 867 7436

Mrs Pam Keall Mr Donald Swales Mr James Thorp (07) 863 6996 (09) 232 2755 (07) 862 7782

E - 12 Governance and Leadership

Council Controlled Organisations A Council Controlled Organisation is an organisation where one or more local authorities control 50% or more of the voting rights or have the right to appoint 50% or more of the directors.

The Council is involved with two Council Controlled Organisations. Further details of these are provided in the Statutory Reporting section.

Council Organisations A Council Organisation is an organisation where the Council has an appointee; it also requires the appointee to formally have one vote.

The Council appoints representatives to a number of community organisations and each representative has a responsibility to monitor performance of that organisation and report to the Council. This requirement was introduced through the Local Government Act, 2002.

Representation Elected members are appointed to a number of different forums, committees, groups and organisations in order to represent the Council. The advantage of this is that it allows Councillors to get a better understanding of the views of their constituents (community) and to pass on the wider community view when necessary.

Currently, the Council is represented on the following groups (amongst others):

 Agewise  Creative NZ  Destination Coromandel  Hauraki Gulf Forum  Go Waihi  Joint Golden Cross Mine Closure Committee (with Waikato Regional Council)  Kaiaua Residents and Ratepayers Committee  Positive Paeroa  Regional Land Transport Committee  Regional Council Waihou Valley Scheme and Piako River Scheme Liaison Committee  Reserve Committees  Thames Valley Combined Civil Defence Emergency Management Committee  Waihi Arts Centre and Museum  Waihi Community Vision  Waihi Information Centre  Waikino Liaison Society  Whiritoa Community Liaison Committee  Whiritoa Emergency Management Centre Committee  Waikato Civil Defence and Emergency Management Group  Waikato Mayoral Forum.

More information on the Councillors and their responsibilities can be found in the Council’s Local Governance Statement which can be viewed at www.hauraki-dc.govt.nz. Additional information about Councillors, and Committees of Council, as well as Council Agendas and Council Minutes are available on the website.

Governance and Leadership E - 13

Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Target 2015-25 Outcome measurement

The Council will conduct all its business in an open and transparent manner.

Measure: Complaints No Complaints 2015-25: No complaints are Council and Committee received (upheld received upheld by the ombudsman meetings are conducted in by the (2013/14) relating to Council and accordance with legislative ombudsman) Committees meeting statutory requirements. processes. Measure: Council 100% of 2015-25: 100% of agendas are Agendas for meetings (other secretary’s agendas available on the internet and in than extraordinary checklist available the Council offices and meetings) of Council and its (2013/14) libraries two clear working Committees are publicly days before each meeting.

available at least two clear working days prior to the meeting date.

Elected members will provide governance and leadership for the Hauraki District Council

community. Measure: Annual customer New measure 2015-25: 75% of customers Customers are satisfied that satisfaction (2015) are satisfied Council makes decisions in survey their best interests.

When making decisions the Council will consider community views.

Measure: Council minutes New measure 2015-25: Engagement In the event that any (2015) programme adopted for 100% threshold is triggered in the of decisions that trigger a Council’s Significance and threshold. Engagement Policy, an engagement programme is adopted by Council.

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and the 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

When making decisions the Recent changes to the Local Government Act, 2002 have seen the requirement to Council will consider move from a Significance Policy to a Significance and Engagement Policy. The community views. revised policy came into effect in December 2014, and consequently reporting processes have been altered to accommodate the new requirements.

E - 14 Governance and Leadership

Possible future changes to Levels of Service

The Hauraki Long Term Plan includes levels of service which reflect community needs and expectations for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible changes to levels of service for the first three years in detail and, to a lesser extent, for the remaining years of the Hauraki Long Term Plan.

Level of Service Possible changes to Level of Service (years 2015/16-2017/18)

The Council will conduct all its Under the electoral system, triennial elections occur every three years with business in an open and transparent the next election scheduled for October 2016. Elections may result in a manner. change in the elected membership, and this provides for a potential change in direction or emphasis from that determined by the previous elected Council. This in turn could require a proposed change to the levels of service provided by the Council.

Elected members will provide There are a number of potential changes that can be made to the way in governance and leadership for the which the elected members govern the Hauraki District. Many of these Hauraki District community. potential changes may come about through legislation, and others may come about through community involvement.

The following are some changes that could potentially happen during the 10 year span of this document:

 Electoral System Review Prior to each triennial election, the Council must decide which electoral system to use for the election process. It currently uses the First Past the Post (FPP) system.  Māori Representation Every six years the Council must review whether Māori representation is an appropriate approach for Hauraki District Council. In 2011/12 the Council resolved not to create a Māori electoral seat. However, a poll was initiated by the community, and subsequently a postal vote poll closed on 1 May 2013. The results of the poll were that of the 5284 electors who voted (39.12% of total electors), 4249 did not wish to see a Māori electoral seat established, while 1015 did. The results of this poll are binding for the period 2013-2019. The next Māori representation review is due by 2019, but will be held in 2017/18. Irrespective of the timing of the Council review, valid community initiated polls can be demanded at any time.  Representation Arrangements Every six years the Council must review the structure of its representation. In 2012 the Council conducted a review and resolved to have a Mayor elected at large and four Councillors representing each of three Wards: Paeroa, Plains and Waihi.  New co-governance structures New co-governance structures arising from the Treaty of Waitangi settlement processes. Currently Hauraki iwi are collectively and individually involved in treaty settlement negotiations that will result in at least one co-governance structure for catchments. For additional information on this see the Iwi Liaison activity or the Decision Making section of this Hauraki Long Term Plan.

Governance and Leadership E - 15

Level of Service Possible changes to Level of Service (years 2015/16-2017/18)

When making decisions the Council  The Government has increased the priority for local government to focus will consider community views. on infrastructure, public services, and regulatory services and to ensure they are well planned and delivered in an efficient, effective and cost- effective manner. Further legislation may be considered in this area.  Social issues are an increasingly important matter for the Council as it has identified that there is a clear mandate from the community to improve the integrated provision of quality health and social services within the Hauraki District. The community supports the Council’s involvement as an advocate and partner on these issues.  In the future it is likely there will be new or additional changes to social policies as the Government considers social issues and passes new or amended social legislation.  By using Ward Committees, the Council encourages consultation and exchange of views at a local community level. This allows the development (within the wider Council policy framework) of local approaches and priorities.

Level of Service Possible changes to Level of Service (years 2018-25)

Elected members will provide Due to recent Local Government Act changes, there are a number of levels governance and leadership for the of service across the organisation that may alter once the effects of the Hauraki District community. changes become more understood. Many of the new requirements have already been catered for however it cannot be discounted that as time goes by, further changes will need to be made.

For the entire organisation there is the possibility of re-organisation/ amalgamation and/or greater shared services and collaboration. At the time of writing this Plan, there were no formal re-organisation proposals lodged with the Local Government Commission that include Hauraki District.

When making decisions the Council In recent years the Council has expanded its involvement with social service will consider community views. agencies, primarily in a facilitation and coordination role. This involvement arose directly as a result of the community wishes expressed through the Community Outcomes identification process in 2006, and has been continued.

The Council expects to continue to maintain an interest in and be involved in the coordination of social service agencies working towards the promotion of the Hauraki District Council Community Outcomes.

In most cases the Council is not a service provider, but works in partnership with other agencies, with the aim of improving community well-being. To date this has been predominantly achieved by raising awareness through education campaigns, aimed at reducing the harm that domestic violence, gambling and excessive liquor consumption can cause. If other initiatives are to be developed these will need to be considered based on the extent of the need at the time.

E - 16 Governance and Leadership

Collaborative Projects Communication A core approach of working collaboratively to enhance the District is achieved through working and communicating with local residents and ratepayers. The Council places emphasis on communication with residents and ratepayers, and knows that providing information to the community is important, just as the feedback received is important to assist in determining the delivery of services to the community.

The Council has a number of mechanisms whereby residents and ratepayers can either receive or provide information to/from the Council. These consist of:

 an email address [email protected] where issues can be emailed  area offices and libraries in Paeroa, Waihi and Ngatea  call centres which can be contacted on 0800 734 834 (from within the District) or 07 862 8609  the Council website www.hauraki-dc.govt.nz  the Hauraki District Council Facebook page  special consultative procedures which provide opportunities for feedback on specific matters  the annual and triennial satisfaction surveys  the monthly page in the Waihi Ward Reflections page in the Waihi Leader newspaper  the weekly HDC News page in the Hauraki Herald newspaper.

Please take advantage of any of the feedback mechanisms mentioned above to make your thoughts/suggestions known to the Council. The Council values feedback as it assists in its understanding of the community’s needs and aspirations.

Local Government New Zealand Local Government New Zealand is an organisation that represents the national voice of local government with the intention of ensuring effective local governance throughout New Zealand. Local Government New Zealand advocates on behalf of local authorities, and promotes and encourages best practice approaches.

Quarterly meetings are held within regions to:

 provide networking opportunities between councils  share best practice approaches  provide opportunity for working forums to be established on a geographic basis  provide direct two-way communication opportunities between local authorities and Local Government New Zealand.

Waikato Region Triennial Agreement After each council election cycle all councils in the Waikato Region must enter into an agreement (the Triennial Agreement) containing the protocols for communication and coordination between them for the next three years. In particular the Agreement must include a statement identifying the process for consultation on proposals for new Regional Council activities.

A new Triennial Agreement was completed following the 2013 elections.

Governance and Leadership E - 17

Hauraki Gulf Forum The Hauraki Gulf Forum was established under the Hauraki Gulf Marine Park Act, 2000 to promote and facilitate the integrated and coordinated management of the Gulf’s environmental, cultural, economic and recreational resources. Hauraki District Council is represented on the Forum by the Mayor, who is currently the chairman of the Forum.

The Forum meets on a quarterly basis to discuss issues affecting the sustainable management of the Gulf. Representatives of the Forum include:

 local authorities whose catchment waters flow into the Gulf  Iwi whose rohe covers the catchments that flow into the Gulf  relevant government departments.

Recently the Forum released the 2014 State of the Environment report (SOE) for the Hauraki Gulf, entitled “Sea Change”. The Hauraki District Council is one of the many agencies reporting back to the Forum on the environmental goals, strategies and implementation programmes addressing relevant strategic issues identified in the SOE report.

Future Directions Social Initiatives In previous years the Council had developed a number of social policies in response to new legislative initiatives and had expanded its involvement with social service agencies, primarily in a facilitation and coordination role. This involvement arose directly as a result of community support for the Council to become more involved in local social initiatives.

The Council expects to continue to maintain an interest in and be involved in the coordination with social service agencies and programmes that work towards the promotion of its Community Outcomes.

In most cases the Council is not a service provider, but works in partnership with other agencies, with the aim of improving community well-being. To date this has been predominantly achieved by raising awareness through education campaigns, aimed at reducing the harm that domestic violence, gambling and excessive liquor consumption can cause. If other initiatives are to be developed these will need to be considered based on the extent of the need at the time.

Elections The next election cycle for local government is in 2016. Although the 2015-25 Hauraki Long Term Plan sets the strategic goals for Hauraki District Council, there may be some changes in approaches and priorities as a result of possible changes in elected membership following the 2016 triennial elections.

Proposals for joining and amalgamating local government From time to time the Government considers the structure and makeup of local and regional government and develops proposals for consultation on possible changes. At present a number of re-organisation proposals throughout New Zealand are being considered by the Local Government Commission as a result of requests for re-organisation. There are presently no formal proposals that would affect the Waikato local authorities, but there could be proposals put forward for consideration during the life of this Plan.

E - 18 Governance and Leadership

What is the cost of operating the Democracy activity?

Budge t Fore ca st Fore ca st Fore ca st Fore ca st Fore ca st Fore ca st Fore ca st Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Democracy 1,837 1,872 2,005 1,983 1,980 2,027 2,112 2,188 2,206 2,288 2,316 Interest - (176) (149) (173) (179) (237) (322) (394) (488) (587) (620) 1,837 1,696 1,856 1,810 1,801 1,790 1,790 1,794 1,718 1,701 1,696

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates ------General Rates 1,885 1,364 1,551 1,457 1,551 1,535 1,491 1,503 1,408 1,283 1,301 1,885 1,364 1,551 1,457 1,551 1,535 1,491 1,503 1,408 1,283 1,301

OPERATING SURPLUS/(DEFICIT) 48 (332) (305) (353) (250) (255) (299) (291) (310) (418) (395)

Governance and Leadership E - 19

Iwi Liaison

What is the Iwi Liaison activity?

The Council, through the implementation of the Local Government Act, 2002, recognises Māori as an important group within the community and places a specific emphasis on:

 identifying matters and areas of interest to Hauraki Iwi  providing opportunities for Māori to be involved in decision making processes  fostering capacity building for Māori to take part in local government processes  acknowledging the relationship of Tangata Whenua with the natural environment  developing policies for consulting with Māori  recognising the special status of Mana Whenua (as opposed to Māori in general) and taking into account the Treaty of Waitangi in resource management decision making processes.

The Council has a commitment to developing its relationship with Hauraki Iwi and Māori both as good practice and to meet its statutory obligations under the Local Government Act, 2002 and other relevant legislation.

How does the Council provide the Iwi Liaison activity?

A Council staff member has responsibility for Iwi Liaison as part of their role; in particular to facilitate improved communication and understanding between the Council, staff and Māori by:

 ensuring compliance with legislative requirements as they apply to Māori involvement in local government processes  focusing on relationship building and on-going dialogue - with the development of a Mana Whenua Forum, with representatives from the Council and all the Iwi that hold Mana Whenua status in the District  focusing on relationship building and the development of Memoranda of Partnerships between the Council and Iwi groups that have Tangata Whenua status in the Hauraki District  providing advice to the Council on Māori issues and perspectives.

E - 20 Governance and Leadership

Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Target 2015-25 Outcomes measurement Mana Whenua Forum meets regularly to provide for ongoing dialogue between the Council

and Iwi groups who hold Mana Whenua status in the District. Measure: Council minutes No meetings 2015-25: four The Forum will meet four times per held (2013/14) meetings of Forum year. held per year

The Council will continue to develop its relationships with Tangata Whenua. Measure: Number of No additional 2015-25: Develop Additional Memoranda of Partnership Agreements agreements Memoranda of agreements are developed. (2013/14) Partnerships with Ngaati Whanaunga and Ngati Tara Tokanui Provide opportunities for Māori to be involved in Council decision making processes. Measure: Reports to the Tangata 2015-25: Tangata The Council will consult with Tangata Consultative Whenua Whenua will be Whenua on all Council applications Committee for consulted on consulted on all for wastewater and water consents. Water and Waste 100% of relevant applications applications for consents. (2013/14)

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and the 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

The Council will continue to Throughout the 2012-22 Hauraki Long Term Plan the Council had expected to be develop its relationships able to work with Iwi to progress two further Memoranda of Partnerships. Due to with Tangata Whenua. external priorities, this wasn’t able to take place. The performance measure has since been altered to progress two Memoranda of Partnerships with specific Iwi during the 2015-25 period.

Possible future changes to Levels of Service

The Hauraki Long Term Plan includes levels of service which reflect community needs and expectations in regard to the service for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible changes to levels of service.

Levels of Service Possible changes to Level of Service

Provide opportunities for It is expected that the Hauraki collective treaty settlement negotiations with the Crown Māori to be involved in will result in the establishment of a joint co-governance body for the Waihou, Piako Council decision making and Coromandel catchments. The purpose and role of this body will be finalised as processes. part of the negotiation process and will be the subject of new legislation.

Governance and Leadership E - 21

Levels of Service Possible changes to Level of Service

Legislation is variable in terms of the Council’s obligations to Māori. The references in legislation to Māori encompass the existing structures within which Māori participate in society in the broadest sense. While the legislation refers to Māori in some instances, practice has developed that ensures the structures and grouping within Māori are recognised in terms of their traditions, culture and relationships and in terms of the environment and other taonga. The Council must ensure that these distinctions are appropriately acknowledged. References to Māori in legislation can and do include iwi holding Mana Whenua status (including national, regional and tribal iwi organisations) and hapu on a local basis.

Levels of service are established at a District level but must include the levels of service established by the legislative drivers. Changes to levels of service are driven by legislative change, and by changes to Council’s policies, strategies and processes.

The treaty settlement processes being undertaken by the Office of Treaty Settlements and Iwi within the Hauraki Collective (of tribes) is likely to empower a new co- governance entity for the Waihou, Piako and Coromandel catchments, consisting of representatives from local government and Hauraki Iwi having Mana Whenua status in the area of those catchments. This co-governance entity is likely to be responsible for the oversight of the catchments and preparation of Resource Plans for the Waihou, Piako and Coromandel catchments. These Plans will be integrated into regional and district planning documents via Resource Management Act processes. Details of this co-governance entity will be finalised as part of the Collective Deed of Settlement. A draft Deed of Settlement is expected in 2015.

Concurrently with these negotiations individual Hauraki Iwi and the Crown are negotiating settlements of the individual Iwi claims and the majority of these are expected to reach a draft Deed of Settlement in the same timeframe.

Once the Deed of Settlement with the Collective has been signed the next step is for the Crown to draft legislation to give effect to this Deed of Settlement.

There will be financial implications for local authorities which, until the Treaty Settlements are enacted, cannot be quantified. What is certain is that the Council will have to meet its own costs in relation to the operational costs of the co-governance structure, and there will certainly be a staff requirement to meet the Council’s obligations.

Collaborative projects Relationship with Iwi The Council has adopted a specific Community Outcome relating to its goals and aspirations for working with Māori which acknowledges its responsibilities for involving Māori in its decision making processes. The Outcome states:

We take a collaborative approach with both Mana Whenua and Tangata Whenua in our District.  We advocate for forums which ensure involvement and consultation in decision making processes.  We ensure appropriate regard is made to taonga and culturally significant matters.  We encourage the development of partnerships for the delivery of services and programmes.

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Consultative Committee Water and Waste The Council has had a Standing Committee on Water and Waste for many years. Its role is to:

 provide a forum for regular and ongoing consultation on water and wastewater issues currently facing the District, with representation from special interest groups including Iwi  have regular, open consultation on the issues of water and waste and make recommendations to the Council.

The six iwi with Mana Whenua status (as listed below) are entitled to appoint a representative to this Committee. This provides iwi and the Council the opportunity to take into account the relationship of Māori and their culture and traditions to Māori ancestral land, water, sites, waahi tapu, valued flora and fauna, and other taonga during the Committees consideration of any decision.

Memoranda of Partnerships The Council has acknowledged six iwi as having Mana Whenua (those with authority over the land) status within the District. It also acknowledges that some Māori in the District do not have Mana Whenua status but, as Tangata Whenua, are included in Council’s responsibilities in relation to Māori.

Acknowledged Mana Whenua iwi are:

 Ngati Hako  Ngati Maru  Ngati Paoa  Ngati Tamatera  Ngati Tara Tokanui  Ngaati Whanaunga.

The Council currently has four Memoranda of Partnership with individual Iwi and is actively encouraging the development of two additional Memoranda of Partnerships. The Council will, during the course of this Hauraki Long Term Plan, seek to work with Māori on fostering and developing Māori involvement in local government.

Mana Whenua Forum The Council, along with iwi groups having Mana Whenua status in the Hauraki District rohe, have established a Mana Whenua Forum. The first meeting of this Forum was held on 21 March 2012. This Forum works within a Heads of Agreement titled “Te Mana Whenua Forum Mo Te Rohe o Te Kaunihera”.

The role of the Forum is to:

 provide a mechanism whereby Māori, who have Mana Whenua status in respect to the jurisdictional boundaries within Hauraki District, can meet with the Council and participate meaningfully in decision making processes  facilitate Mana Whenua contribution to the Council’s decision-making  consider any matter to promote the social, economic, environmental and cultural well- being of Mana Whenua.

The Hauraki Treaty Settlement claims, which are currently in the process of being negotiated with the Crown, the Hauraki Collective and individual Hauraki Iwi, have resulted in Forum meetings being suspended in the interim. The treaty claims processes are the highest priority for Hauraki Iwi and have proven to be resource intensive both in terms of personnel and time. The Treaty Settlements are expected to reach draft Deeds of Settlement in 2015, and the Forum is hopeful that when this point is reached the Forum will resume its regular meetings.

The Forum is seen as a potentially valuable mechanism for furthering relationships.

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Treaty of Waitangi Settlements Hauraki Iwi are collectively and individually in the process of negotiating treaty settlements with the Crown; these processes have been underway for some time. A Hauraki framework agreement was agreed with the Crown in 2010, and this has set the process to be followed by the parties. Significant progress has been made on these settlement discussions and, although the various settlement negotiations are currently at different stages, it is expected that draft Deeds of Settlement will be achieved in 2015.

It is highly likely that the Hauraki Collective Treaty Settlement Deed will include the establishment of a co-governance entity for the Waihou, Piako and Coromandel catchments and that Hauraki Iwi (including representatives of upper catchment Iwi), the Waikato Regional Council and the territorial authorities involved will be represented on this body. The purpose and role of this body will be finalised as part of the negotiation process. The Council expects to be involved, given that both the Piako and Waihou Rivers flow through the District and exit into the Firth of Thames.

The Council is currently negotiating with local iwi and the Central Government Office of Treaty Settlements for the co-governance of one reserve in Waihi and one reserve in Kaiaua that will form part of the settlements for two individual iwi. The finalisation of these co-governance agreements will take place in 2015/16 and will involve the future co management of these sites.

Future Directions Memoranda of Partnership The Council has signalled in its levels of service that it wishes to continue to negotiate Memoranda of Partnerships with Hauraki Iwi and has signalled that it will be seeking such memoranda with Ngati Tara Tokanui and Ngaati Whanaunga.

While a specific programme for the development of these Memoranda has not been set, the Council will be seeking to have negotiations with the relevant iwi authorities during the life of this Hauraki Long Term Plan.

Treaty Matters Following the treaty settlement processes, particularly those relating to the Hauraki Iwi, it is expected that new structures and initiatives encouraging collaboration and partnerships will evolve. Other than the joint co-governance body that is part of the current negotiations between the Crown and the Hauraki Collective, it is not known yet what these may be or what areas will be involved, but the Council is expecting to work with iwi in these as they evolve.

What is the cost of operating the Iwi Liaison activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Iwi Liaison 52 72 73 75 76 78 80 82 84 87 89 52 72 73 75 76 78 80 82 84 87 89

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates ------General Rates 46 67 71 71 79 82 83 87 90 88 94 46 67 71 71 79 82 83 87 90 88 94

OPERATING SURPLUS/(DEFICIT) (6) (5) (2) (4) 3 4 3 5 6 1 5

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Policy Development

What is the Policy Development activity?

Policy Development essentially helps to formalise the strategic direction of the Council through the preparation of strategies, plans and policy documents and the analysis and implementation of strategies and policies from Central Government and other organisations.

Whilst many policies are developed by the Council to address local issues or to achieve desired outcomes, the Council also has a responsibility to develop and review some policies, strategies and plans (and to report on these) under the Local Government Act, 2002, the Resource Management Act, 1991 and other relevant legislation.

How does the Council provide the Policy Development this activity?

The Policy Development activity involves the review and development of policies, plans and strategies for the benefit of the Hauraki District and also to meet relevant legislative requirements.

The Council has a commitment to working towards its Community Outcomes. The Council’s original Community Outcomes were developed in conjunction with the community in 2006. These Outcomes were instrumental in the development and adoption of the Council’s Youth Policy and Positive Ageing Strategy. In 2014 the Council reviewed its Community Outcomes.

The Council reports to the community on policy implementation and success through its Annual Report which is adopted in October of each year.

Strategic Planning Policy Development The majority of the Council’s policy development is undertaken or overseen by the Strategic Planning department which is responsible for the development and/or review of the following statutory policy documents:

 Hauraki Long Term Plan  Annual Plan  Annual Report  Asset Management Plans  external policy and strategy documents that do, or could, involve the Council  Council policies and strategies  local bylaws.

Strategic Planning also contributes to the development of Activity Management Plans and other internal or voluntary policies and strategies.

Some of the policies, strategies and plans that are developed/reviewed by the Council are required to undergo the ‘special consultative procedure’ which is outlined in section 83 of the Local Government Act, 2002. The special consultative procedure involves consultation with the community (the extent varies depending on the significance of the subject), usually via a submission process. The Council will generally advertise consultation in the form of a public notice and articles in the HDC News page in the Hauraki Herald newspaper and on the Council’s website www.hauraki-dc.govt.nz. Depending on the matter being consulted on, the Council may send a letter to key interested parties and in some cases an informative brochure/leaflet may be sent to residents and ratepayers.

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Resource Management Policy Development The Resource Management Policy Development sub-activity is responsible for the maintenance and review of the District Plan. This activity provides statutory direction to the Council and the public on planning and development for the Hauraki District.

The services provided are:

 developing and reviewing the District Plan in accordance with legislative requirements and the Council’s policy direction  researching and processing Council initiated District Plan Changes  processing privately initiated District Plan Changes  incorporating necessary policy elements from National Policy Statements, the Regional Policy Statement and National Environmental Standards into the Operative District Plan and operational procedures.

Finance

Planning and budget preparations are crucial to the Council’s operations. The Council’s finance department provides input to all of the Council’s key policy documentation, particularly the Hauraki Long Term Plan, the Annual Plan and the Annual Report.

Consultation

Within the Policy Development activity there are a wide range of responsibilities, requiring consultation with many people through meetings, forums and the formal statutory submission process. Consultation is coordinated in a number of ways and through a variety of processes. An example of some of the groups and consultation techniques used are:

 Strategic Planners Network  Local Government New Zealand  public consultation processes  Special Consultative Procedure  specifically focused consultation.

Levels of Service and how the Council will measures them

Community Method of Levels of Service Baseline Target 2015-25 Outcome measurement To plan the Council’s Policy Development in accordance with relevant legislative

requirements. Measure: Council checklist 100% adopted 2015-25: 100% of all All legislatively required on each issue within legislatively required policies, plans and strategies statutory documents are adopted within are adopted within statutory timeframes statutory timeframes. timeframes. (2013/14)

Significant decisions are made in a democratically accountable way. Measure: Council checklist 100% met 2015-25: 100% successful All decisions that are subject on each issue requirements completion of internal Special to the special consultative (2013/14) Consultative Procedure procedure meet the checklist.

requirements of the Local Government Act, 2002.

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Community Method of Levels of Service Baseline Target 2015-25 Outcome measurement Policy development is visible and accountable. Measure: Website 100% 2015-25: 100% of all draft Key draft or proposed policy electronic available on policy documents are available documents subject to records time on the Council’s website on consultation are available on (2013/14) time. the Council’s website by the notified date of availability. Measure: Customer 2014: 62% of 2015-25: 70% of customers Percentage of customers satisfaction customers satisfied satisfied with the consultation survey satisfied and engagement of Council’s major policies and strategies. The Council will develop local legislation.

Measure: Council minutes Review Bylaws are reviewed as required of 2016/17: Commence review of required, with all bylaws to bylaws no all bylaws. be reviewed by 2017/18. later than 2017/18

The Council meets its statutory requirements under the Resource Management Act, 1991. Measure: Council records 0 changes 2015-25: There are no All Changes and Variations and variations successful appeals or judicial to the District Plan are (2013/14) reviews on any Change or processed within statutory Variation to the Plan as a requirements. result of administrative or process matters.

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the customer understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

Policy development is In order to simplify interpretation, the performance measure regarding customers visible and accountable. understanding of decision making processes has been changed to measure customer satisfaction with the consultation and engagement of Council’s major policies and strategies.

Possible future changes to Levels of Service

The Hauraki Long Term Plan includes levels of service which reflect community needs and expectations for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible changes to levels of service for the first three years.

Level of Service Possible changes to Level of Service (years 2015/16-2017/18) To plan the Council’s Policy  Legislative changes take place regularly in Central Government. As these Development in accordance with are passed into law, the Council will develop or review policies and relevant legislative and Council strategies as appropriate. requirements.  From time to time there are additional collaborative responses which the Council will be asked to be a part of, which may involve policy work or direction.

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Level of Service Possible changes to Level of Service (years 2015/16-2017/18) Significant decisions are made in  The Council may review its consultation and decision making processes a democratically accountable way. as a result of altered statutory requirements. Also, as a result of experience the Council may review its consultation processes to ensure that all sections of the community are empowered to take part.

Policy development is visible and  Council’s key policies are available on its website www.hauraki-dc.govt.nz accountable. The Council will develop local  Additional legislative requirements could result in the need for the Council legislation. to develop additional local bylaws.

The Council meets its statutory  Incorporating the Kaiaua area of the previous Franklin District into the requirements under the Resource Hauraki District Plan will be considered during the three year life of this Management Act, 1991. Plan.

Collaborative Projects The Waikato Plan: Waikato: he reo kotahi Councils within the Waikato region are developing a Waikato Plan called Waikato: he reo kotahi (Waikato: one voice).

The Waikato Plan: Waikato: he reo kotahi will include:  an evidence-base for good decision making on matters such as future housing and settlement patterns; social, sporting and cultural developments; and the best places to build new facilities and infrastructure.  streamlined regulations, planning and funding programmes to create savings (there are currently over 600 strategies, polices, plans and bylaws in the combined councils of the Waikato).  making it possible for there to be a ‘one Waikato’ approach to central government when we are seeking their support for our issues.

The draft Waikato Plan: Waikato: he reo kotahi will be ready for public consultation in early 2016.

The website www.waikatoplan.co.nz contains more information.

Future Directions Local Government Act reform For the past five years (2010–2014) the Government has had a programme of reviews and changes to the Local Government Act, 2002 and changes to the regulatory frameworks that local government works within. The Government has not signalled further major changes to the Act. However, further changes to the Act may occur over the next three years in line with the Government’s developing priorities and legislative programmes.

Activity Management Plans Activity Management Plans are internal tools developed to ensure levels of service, budgets and work programmes are strategically prepared and programmed based on the Council’s policies and commitments in the Hauraki Long Term Plan. Activity Management Plans have been prepared for the majority of the Council’s activities, and these will be finalised and reviewed during the coming three year period.

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Policy Review Processes The Council maintains a significant number of policies and strategies as a result of many differing legislative requirements. Many of these policies are required to be regularly reviewed, often involving public consultation.

The Council has an adopted indicative schedule of future policy reviews. For those interested in being consulted in any of these future reviews, this schedule gives early notice of the review period.

Climate Change The Council has developed a clear policy direction on climate change. This policy direction is under active review as the science and policy directives relating to climate change are updated or become more definite. National and regional plans and strategies are being continually updated to provide further advice and recommend/impose requirements on the Council; the Council’s policy needs to be updated to include these matters should updated projections be developed by the Ministry for the Environment. The Councils Climate Change Policy can be viewed online at www.hauraki-dc.govt.nz

Emissions Trading Under the Kyoto Protocol, New Zealand agreed to reduce its greenhouse gas emissions back to 1990 levels by 2012, or pay for any excess. In order for New Zealand to meet its international obligations the Government has enacted an Emissions Trading Scheme (ETS) as the least costly way of putting a price on emissions and creating an incentive for all of us, especially businesses and consumers, to change our behaviour.

Emission trading schemes are based on the “polluter pays” concept and aim to shift the cost of greenhouse gas emissions onto those who cause them. New Zealand’s ETS has been phased in across production sectors between 2008 and December 2014, with all sectors to be included in the scheme by 2015.

The Council does not own and operate any major pastoral farming or landfill activities which would be subject to any emission controls, although the Council does have approximately 100 hectares of pre 1990 forestry. In accordance with the ETS the Council applied for and received compensation units for the qualifying pre 1990 forestry blocks. The Council will retain these units to offset any costs associated with the harvesting of those areas if they are not replanted.

Fees and Charges Fees and charges for the provision of Council services reflect organisational policy, particularly the Revenue and Financing Policy. All fees and charges made by the Council are subject to ongoing review to ensure:  continuing compliance with the Revenue and Financing Policy  movement towards compliance with the Revenue and Financing Policy  any major changes to the costs of particular activities fairly reflect legislative compliance.

The fees and charges review formed part of the consultation alongside the Hauraki Long Term Plan Consultation Document for 2015-25. Any future proposed amendments to the fees and charges during the life of this Plan will be notified by way of public notice, and will generally be subject to some form of community consultation.

A complete list of the Council’s fees and charges is available on the Council’s website www.hauraki-dc.govt.nz.

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National Policy Statements and Environmental Standards The Resource Management Act, 1991 enables the Ministry for the Environment to prepare National Policy Statements (NPS) and set National Environmental Standards (NES) for resource management purposes. Until recently there have been very few of either, but over the last few years a number of NPS and NES have either been brought into effect, or proposed.

Once NPS or NES are adopted by the Government, all regional and territorial authorities must amend any Proposed or Operative Plans and Policy Statements to give effect to them. The Council may make submissions on national public policy from time to time as considered appropriate. The following table lists the NPS that are currently in effect or under development.

National Policy Statements Status

Electricity Transmission In effect (April 2008) New Zealand Coastal Policy Statement In effect (December 2010) Renewable Electricity Generation In effect (May 2011) Freshwater Management In effect (August 2014) (this superseded the 2011 NPS) Urban Design Currently on hold Publicly consulted on 2011. 426 submissions received. Indigenous Biodiversity Currently on hold.

The following table lists the NES that are currently in effect or under development.

National Environmental Standards Status

Air Quality In effect (October 2004) Sources of Human Drinking Water In effect (June 2008) Telecommunications Facilities In effect (October 2008) Electricity Transmission In effect (January 2010) Assessing and Managing Contaminants in Soil to In effect (January 2012). Interim review currently Protect Human Health underway Currently on hold pending decisions on 2013 Ecological Flows and Water Levels freshwater reform Currently on hold pending decisions on 2013 Plantation Forestry Activities freshwater reform

Resource Management Act, 1991 Review The Resource Management Act (RMA) reforms produced the Resource Management (Simplifying and Streamlining) Amendment Act, 2009, which made changes to the processing of resource consents and established the Environmental Protection Authority.

The Government’s reform programme continued in September 2013; the purpose of these reforms was to help create a resource management system that delivers communities’ planning needs, enables growth, and provides strong environmental outcomes in a timely and cost-effective way.

Further changes to the RMA have been proposed that will build on the amendments made in September 2013. These proposals would make further amendments to the RMA and resource management in general. Main elements of the proposals include:

 clearer national direction and tools  single, local resource management plans that address future environmental and development priorities and cover all local, regional and national issues; replacing the range of planning documents we have today

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 simpler, faster and fewer resource consents  Māori interests and values to be considered earlier in resource management planning processes with solutions developed upfront  comprehensive management of natural hazards in planning and consenting  housing affordability addressed through explicit attention being paid to this issue in plans and changes to consenting arrangements to drive down consenting cost and improve timeliness.

Regional Policy Statements The Waikato Regional Council is currently finalising its Regional Policy Statement and the Council must give effect to specific provisions contained in this document. During the life of this Hauraki Long Term Plan:

 The Council will need to consider changes that may be required to its District Plan as a result of the adoption of the Regional Policy Statement. The Resource Management Act, 1991 requires territorial authorities in a region to give effect to the regional policy statement through their district plans provisions.  The Council will need to enter into a draft Local Authority Implementation agreement with the Waikato Regional Council, detailing programmes and timetables for a number of priorities contained in the Regional Policy Statement that will need to be implemented within Hauraki District by the Council or collaboratively with the Waikato Regional Council.

Triennial and Annual Satisfaction Survey Every year, the Council undertakes an annual satisfaction survey of Hauraki District residents and ratepayers. The purpose of the survey is to assess users’ satisfaction with services and facilities provided by the Council. Every three years, the Council not only undertakes the annual satisfaction survey, but asks additional ‘triennial questions’. The timing of this survey is before the local government elections, and the Council takes the opportunity to ask the community additional topical questions to inform the newly elected Council at the start of its three year term.

The Council uses the results of the satisfaction surveys to report against its level of service statements in its Annual Reports. The survey provides an indication to the Council of the community’s satisfaction with the current way services and facilities are delivered, and whether there are areas where the Council needs to pay particular attention in the future. The survey is carried out by phone, by an independent survey company.

Programmed actions for 2015-25 District Plan The Operative District Plan generally contains the environmental outcomes sought by the Council and the community. The Council commenced its first review of its District Plan in 2006 and incorporated current best practice (rather than undertaking a complete rewrite) and new legislative requirements into the framework of the existing Plan. The review was subject to extensive consultation processes and many opportunities were provided for public input. The review is now complete; appeals against the Proposed District Plan have been settled and the District Plan is now operative.

The Operative District Plan will still have to incorporate any future approved private plan changes, give effect to the Regional Policy Statement, and incorporate the Kaiaua area (formerly within the Franklin District Council).

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Asset Management Plans During 2010/11 the Council adopted a formal policy on the development of Asset Management Plans for Hauraki District Council assets, to ensure that the appropriate policy development mechanisms were in place for all of the Council’s assets. It also developed individual policy approaches for the planning and information requirements to be included in the different Asset Management Plans.

The Council is responsible for a large number of assets, with some assets being more critical to the operation of the Council’s activities than others. For example, the provision of water supplies and wastewater services is much more critical to the health, safety and well-being of the communities they service than some of the Council’s smaller assets such as public toilets and park benches. By developing individual policies that reflected risk management approaches the Council was able to determine the degree that individual Asset Management Plans were to be developed to.

Work will continue on updating the Council’s Asset Management Plans, as determined by the policy for each asset service provided by Council. The Council has a team approach to this project and the emphasis over the next three years will be on:

 review of the Council’s adopted Infrastructure Strategy  improvement of asset knowledge and condition data  annual improvement programmes  use of modelling tools for future asset assessment  re-assessing non-financial performance indicators for assets.

Policy The Council’s policies require regular review to ensure that they reflect current legislative requirements and the current views of the Council and/or the community. Previously, it was the Council’s best practice to review policies every three years, unless legislation required a policy to be reviewed more or less often than this. With an increasing number of policies to develop and review, the three yearly policy review cycle became impractical. Consequently the Council reviewed this to allow greater flexibility for policy reviews, so that they are spread more evenly over time.

The greater flexibility for policy reviews means that the Council can prioritise what policies need to be reviewed and when. For example, if a policy is required to be reviewed by legislation every three years then it will continue to be reviewed within this timeframe and will take priority. However, policies that have no legislative review timeframe may be reviewed less often, depending on the Council’s workload and the significance of the policy to the Council and the community. Although the three yearly policy review cycle no longer applies to all of the Council’s policies, the Council will continue to keep all of its policies as up-to-date as possible, with all polices being required to be reviewed at least once every six years, with most being reviewed more often.

Significant Natural Areas (SNAs) and Heritage Features Incentives Policy Under the Resource Management Act, 1991, it is a matter of national importance to protect areas of significant indigenous vegetation and significant habitats of indigenous fauna and historic heritage.

The District Plan provides for the protection and enhancement of Significant Natural Areas (SNA) and Heritage Features by mapping and scheduling of SNAs and Heritage features, and through the provision of rules for their retention and protection.

The Council has a SNA and Heritage Features Incentives Policy, to provide a financial incentive for property owners with SNAs or Heritage Features on their land who may require some financial assistance in order to enhance their protection. The policy will set aside a sum of money each year (up to $35,000) which can be applied for by SNA and Heritage Feature owners, to assist them with active maintenance/enhancement of those features.

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What is the cost of operating Policy Development?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Strategic Planning 697 443 453 594 472 483 639 508 521 694 551 RMA Policy 294 271 269 274 280 286 293 300 307 315 324 991 714 722 868 752 769 932 808 828 1,009 875

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates ------General Rates 982 672 703 828 779 806 963 854 885 1,019 922 982 672 703 828 779 806 963 854 885 1,019 922

OPERATING SURPLUS/(DEFICIT) (9) (42) (19) (40) 27 37 31 46 57 10 47

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Roads and Footpaths

What is the Roads and Footpaths activity?

Roads and footpaths provide essential infrastructure that support safety and community cohesion. The Council owns, develops and maintains a network of local roads and footpaths to ensure that people have access to, and can contribute to, a healthy and connected community. The community expects that the Council will provide the local roading (including footpaths) network.

The District is traversed by a number of state highways (2, 25, 26 and 27) which provide major national routes through the District. The local roading network connects at various points to the state highway network, which is owned, developed and maintained by the New Zealand Transport Agency (NZTA). The Council cooperates with NZTA to ensure a coordinated approach is taken to roading infrastructure in the District.

How does the Council provide the Roads and Footpaths activity?

The Council provides a network of local roads and footpaths throughout the District that is developed, maintained and managed along with associated assets. These include sealed and unsealed roads, road markings, and assets outside the trafficable road surfaces such as footpaths, kerb and channel, culverts, street and road signs, traffic islands, retaining walls, stormwater disposal, safety railings, bridges, street lighting and stock underpasses.

The Council owns and manages the local road network. Major through routes are designated state highways which are owned and managed by the New Zealand Transport Agency. The State Highways and local road networks combine to form the National Roading Network, which is vital to providing for the economic and social well-being of all people and communities.

For the Roading activity, the overriding transport legislation is the Land Transport Management Act, 2003 (LTMA). There are also a number of other policies and plans; both internal and external, relating to Roading which are listed below. The Council has taken steps to align its actions and targets with these documents and expects to continue to do so in the future.

The Council undertakes this activity to a set of agreed standards, utilising a combination of annual, and term contracts. Contract structures vary depending on the service being provided and range from maintenance of street signs, through to major pavement rehabilitation.

Key legislative drivers

 Land Transport Management Act, 2003  Local Government Act, 2002  Resource Management Act, 1991  Government Roading Powers Act, 1989  Biosecurity Act, 1993  Building Act, 2004  Electricity Act, 1992  Gas Act, 1992  Health and Safety in Employment Act, 1992  Telecommunications Act, 1987  Transport Act, 1976

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 Construction and Contracts Act, 2002  Hazardous Substances and New Organisms Act, 1996.

Relevant Policies, Plans and Strategies

 Land Transportation Asset Management Plan  Hauraki District Plan  Hauraki District Council Consolidated Bylaw  Hauraki District Council Engineering Manual  Development Contributions Policy  Hauraki Walking and Cycling Strategy (including an Accessibility Audit for Ngatea, Paeroa and Waihi)  New Zealand Transport Strategy  National Energy Efficiency and Conservation Strategy  New Zealand Energy Strategy  New Zealand Disability Strategy  National Total Mobility Review  The Accessible Journey  Waikato Regional Council Long Term Plan  Waikato Regional Policy Statement  Waikato Regional Community Outcomes  Waikato Regional Land Transport Strategy (2011-2041)  Waikato Regional Road Safety Plan  Waikato Regional Land Transport Plan  Waikato Region Walking and Cycling Strategy  Government policy statement on Land Transport Funding  Safer Journeys: A Road safety strategy to 2020 and updates  Infrastructure Strategy.

Demand Management

The Council’s roading and footpath network is currently under low to moderate pressure from increasing demands. The key demand drivers for the network are:

 traffic volume  produce to market  industry  social needs  asset condition  continued focus on road safety  tourism  pedestrian traffic  cycling  parking.

General increasing traffic trends can be expected to increase traffic volumes on arterial and collector roads within the District due to Hauraki District’s central location between the Auckland, Waikato and Bay of Plenty regions, although there may be some reduction in heavy vehicle traffic numbers resulting from increased use of the larger vehicles which are now permitted.

The dairy industry may intensify to a degree with increasing dependence on heavy commercial vehicles and machinery, although use of larger vehicles could reduce actual trip generation. Economic prospects over the term of the Plan are expected to be largely positive for all farming sectors, leading to some increases in lime, fertiliser and feed use and farm maintenance. The predicted scenario for the future is some intensification of farm processes which could lead to some increase in load movements.

Tourism within New Zealand is generally increasing, with travel by rental cars and campervans being popular. Hauraki District is effectively at the hub of tourist traffic routes between the Auckland, Waikato and Bay of Plenty regions and especially the traffic heading to the Coromandel Peninsula. Most of the

Roads and Footpaths E - 35 tourist travel within Hauraki District is on state highways; however Awaiti Road, Hauraki Road, East Coast Road and Waihi Beach Road are local roads with significant tourist traffic.

The development of the Hauraki Rail Trail also has the potential to continue increasing the tourist traffic through (and around) the Hauraki District.

There is a low level of demand from the community for improvement of the network levels of service. In the 2014 customer satisfaction survey 72% of respondents were satisfied with the quality of roads in the Hauraki District (excluding state highways).

What are the significant negative effects on the local community?

 Ongoing expenditure is required to maintain the roading network infrastructure to the appropriate and accepted standards for users of this service. The costs of maintaining this infrastructure are invariably passed onto the ratepayer.  There can be conflict between the use of the environment for the construction, maintenance and ongoing use of the roading network and cultural values.  During construction, physical works will generate dust, noise, vibration and inconvenience through delays, having a negative effect on the community and users.  Pollutants and sediments can wash off roads into the neighbouring ecosystems, having a negative effect on the receiving environment.  Road trauma (injuries and fatalities that occur through the use of the roads and footpaths) negatively impact the community.  Network unreliability, due to asset failure and growing traffic demands, can have negative impacts on the users of the roading infrastructure.

Collaborative Projects Land Transport Programme The Council prepares a Land Transport Programme that includes maintenance, renewal and a capital development programme for subsidised works spanning a 10 year period. This programme is considered by the New Zealand Transport Agency in the course of the approval of financial assistance to the Council from the National Roads Fund.

The 2015-25 Land Transport Programme, as it relates to Hauraki District, was included as supporting information to the Consultation Document for the 2015-25 Hauraki Long Term Plan. The consultation process for the 2015-25 Hauraki Long Term Plan also served to satisfy the consultation requirements for the Land Transport Programme in terms of Sections 15 and 16 of the Land Transport Management Act, 2003.

One Network Roading Classification The New Zealand Transport Agency (NZTA) and local government have jointly established the One Network Road Classification (ONRC). The ONRC involves categorising roads based on the functions they perform as part of an integrated national network. The classification will help local government and the NZTA to plan, invest in, maintain and operate the road network in a more strategic, consistent and affordable way throughout the country. The culmination of this work means that Council and other Road Controlling Authorities (RCA) throughout New Zealand now need to implement this framework.

NZTA has requested that Council (along with all other RCAs) develop a ‘transition plan’ outlining how they intend to make the transition to the new ONRC. The transition plan is a vital step in the process of bringing the work streams of all RCAs together to achieve the ultimate aim of consistent and effective asset management for roading. The transition plans should include the following key processes and milestones (among others):

 improving/finalising the classification of roads and working towards agreed outcomes

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 determining customer levels of service and identifying key gaps  identifying gaps in performance or network outcomes and obtaining stakeholder agreement to remedy gaps  planning investment programmes, and  identifying the stakeholder engagement requirements.

Improvement actions identified by Hauraki District Council’s Transition Plan (provided in full in Section G, Appendix 6) are outlined as follows:

 Complete network outcome measures to understand current position.  If the implications of the transition to ONRC customer levels of service (CLoS) have significant impacts on the current service provided to the community, consultation will be undertaken with the community and key stakeholders to ensure the community is informed and has an opportunity to provide feedback.  Upskill to meet requirements for developing the Business Case Approach (BCA).  Review strategic context of network and develop BCA for investment based on the ONRC CLoS.  Review / update the existing Asset Management Plan.  Develop the Land Transport Programme.  Amend and procure service contracts to meet desired outcomes.

The project is continuing to develop, so not all of the impacts for Hauraki District are known at this stage. However now that the road hierarchy has been reclassified it is evident that some of our road classifications will change (from higher classification to lower and vice versa) from those that are currently in place. Many of these changes will effectively be managed at a technical level (i.e. which roads are classified as Local, Collector and Arterial and the technical standards that would be applied). Those roads that have had reduced classifications will however have funding eligibility implications. If funding is reduced, the level of service the Council is able to provide may also have to be reduced. Council does not expect the changes to the level of service to create a significant tangible change to the driver experience across the network.

As part of the Long Term Plan hearings process, the Council approved the Transition Plan for Hauraki and also approved funding for an estimated $101,250 spread over three years for the implementation of the Transition Plan. This is approximately $33,000 per year and is able to be absorbed by efficiencies within the existing operational roading budget.

Road safety The Hauraki, Thames-Coromandel and Matamata-Piako District Councils, along with the Accident Compensation Corporation (ACC), Waikato Regional Council, New Zealand Police, New Zealand Transport Agency (NZTA), Road Transport Association New Zealand (RTANZ) and other key stake holders, are collaboratively working towards improving sub-regional road safety.

A Road Safety Action Plan has been developed and is reviewed and implemented annually. The Road Safety Action Plan focuses on driver and rider behaviour (speed, alcohol, intersections, fatigue, failing to keep left, inattention and use of helmets) and known hot (dangerous) spots. It also focuses on community education programmes, the encouragement of community safety initiatives, and the provision of resources to assist in improving the safety of roads.

The Road Safety Action Plan is implemented by an annual programme using resources agreed jointly by the New Zealand Transport Agency, New Zealand Police, Matamata-Piako, Thames-Coromandel and Hauraki District Councils. The Road Safety Action Plan identifies the key road safety issues facing the Eastern Waikato Districts, the actions for addressing these issues, and the methods of monitoring and reporting to show how these actions are being progressed and achieved.

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New Zealand Police For all roads in the Hauraki District - both state highways and local roads - the New Zealand Police, working with other agencies as needed, undertake the following functions:

 speed control  drink or drug driver enforcement  seatbelt use and education  visible road safety enforcement  commercial vehicle investigation and road user charges  crash attendance and investigation  traffic management  police community services  school road safety education.

New Zealand Transport Agency NZTA, in conjunction with other agencies as required, undertakes the following functions:

 policy advice  safety information and promotion  driver licensing  subsidy on the Council’s roading network costs  safety auditing  vehicle impoundment.

The NZTA subsidises the Council’s land transport activity expenditure at a Financial Assistance Rate (FAR). For the 2012-22 period, the base rate had been 53%. For the 2015-25 period the Financial Assistance Rate for Hauraki will be 56% in 2015/16, 57% in 2016/17, 58% in 2017/18 and incrementally increasing to 60% in 2023/24.

Combined tendering process for road works The Hauraki District Council has worked with Thames-Coromandel District Council for tendering processes for professional services and annual sealing contracts. It is expected that this will continue as long as it is seen to benefit both parties. A combined tendering process for street lighting projects is being considered for the future.

Waikato Regional Land Transport Strategy 2011-41 The Waikato Regional Land Transport Strategy (RLTS) was adopted by the Waikato Regional Council on 28 April 2011. The RLTS is the overriding plan for all land transport matters in the region. The purpose of the RLTS is to provide a framework for developing, maintaining and protecting the land transport system in the Waikato Region over the next 30 years.

The RLTS sets a direction to move the Waikato region away from a traditional road-based transport system to a multi-modal integrated transport system based upon a set of priorities, decision making and focused investment on strategic goals. The RLTS focuses on two key areas:

 development on strategic corridors  managing travel demand and encouraging alternative modes of transport.

The Strategy will guide the future investments in road, rail, walking and cycling and passenger transport services to ensure an integrated, safe, responsive and sustainable land transport system into the future. The RLTS has the following vision established by the Regional Transport Committee:

“An affordable, integrated, safe, responsive and sustainable land transport system that enhances the environmental, economic, social and cultural well-being of the population”.

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What does the RLTS mean for Hauraki District Council? The RLTS relies on key transport stakeholders for its implementation and contains a number of specific actions that Hauraki District Council is responsible for. The Council, in conjunction with regional transport partners, has been working collaboratively to implement the RLTS since its adoption.

The RLTS is also important to the District’s transport planning and funding, as projects and activities proposed by the Council must be consistent with the strategy incorporated in the Regional Land Transport Programme for national funding subsidies. In other words, the strategy has guided land transport investment for the District and has a major input into the 2015-25 Hauraki Long Term Plan.

Levels of Service and how the Council will measure them

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Access is provided to the network of local roads. Measure: Measured by 100% 2015-25: 100% of Time for road access to be network consultant arterial and arterial and collector restored to communities following collector roads providing access a 1 in 10 year climatic event (10% roads to communities open probability). restored within 24 hours, all within 24 other roads within 72 hours, other hours roads within 72 hours The pavement life of sealed roads is preserved. Measure: The Sealed New 2015-25: Maintain a That the road pavement is in Pavement Condition measure level of less than or good condition. Index equal to 7 (fair (This index is a condition) national formula for the New Zealand Transport Agency). The Council delivers a roading network that addresses safety and amenity issues. Measure: Annual Customer 72% of 2015-25: ≥ 70% of Percentage of customers satisfied satisfaction survey customers customers satisfied with the quality of roads in the satisfied District (excluding state highways). Measure: Measured by 100% meet 2015-25: 100% of all Traffic safety barriers are installed network consultant NZ traffic safety barriers and maintained in a fully standards meet NZ standards operative condition in accordance with NZ Standards. Measure: Measured by 100% of 2015-25: 100% Damaged, missing or leaning network consultant signs  regulatory/ signs are remedied on District remedied permanent/ roads within specified timeframes. within time warning signs within 7 days  safety connected signs within 2 days  all other signs within 6 weeks Measure: Measured by 83% within 5 2015-25: 85% within 5 All reported potholes on District network consultant days (for days for >100 vehicle roads are repaired within >100 vpd) or per day (vpd) roads specified timeframes. 14 days (for and within 14 days for <100 vpd) <100 vpd roads

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Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Measure: Measured by 80% of 2015-25: 100% of All programmed new footpaths network consultant programmed annually programmed are installed. footpaths footpaths installed in installed accordance with the agreed programme Measure: Measured by 95% of all 2015-25: >95% of all Issues reported to the Council network consultant reported reported issues are regarding state highways are issues are forwarded within one forwarded to the New Zealand forwarded working day Transport Agency. within one working day

Mandatory Performance Measures (2015-25)

The following table includes the Government’s mandatory performance measures that all councils are legislatively required to measure annually and report on in their Annual Reports.

Method of Measure Baseline (2012/13) Target measurement The change from the previous financial NZTA and police 2 fatal crashes and A reduction over year in the number of fatalities and serious reports. 5 serious injury three years of one injury crashes on the local road network, crashes in 2012/13 fatality and one expressed as a number. (Road Assessment serious injury crash Maintenance Management (RAMM) updating can have a six month lag between crash and updating). The average quality of ride on a sealed Measured by the Smooth travel Smooth Travel local road network, measured by smooth network consultant exposure at 96% in Exposure is higher travel exposure. 2012/13. than 96% The percentage of the sealed local road Measured by the New measure Between 5% and network that is resurfaced. network consultant. 10% of the sealed District road network is resurfaced annually The percentage of footpaths within a An annual survey New measure 100% of footpaths territorial authority district that fall within sample of 2.5%, with a defect rating the level of service or service standard for randomly selected greater than 5 are the condition of footpaths that is set out in across all ages of isolated for safety the territorial authority’s relevant document footpath within the and remedied within (such as its annual plan, activity network, of number of 7 days management plan, asset management tripping hazards per km plan, annual works programme or long defined by cracks, term plan). irregularities, broken areas, etc, by the network consultant The percentage of customer service Measured by the New measure 100% of requests requests relating to roads and footpaths to network consultant are responded to which the territorial authority responds within 10 working within the time frame specified in the long days*. term plan. * Replies will define the remedial work required and expected completion time.

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Changes to Levels of Service

The Council has made several changes to levels of service since the last Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

The pavement life of For the 2015-25 period, the Council is proposing a level of less than or equal to 7 sealed roads is (fair condition measured by a surface condition index - the lower the number the preserved. better the condition) for its sealed roads. This is a marginally reduced level (previous level 6-7 in the 2014/15 Annual Plan) as the Council has adopted a strategy to maximise the seal life of its roading network without compromising the asset by extending the period between reseals, where possible. The Council’s roading network had previously been maintained to a level higher than its peers.

Possible future changes to Levels of Service

This Plan includes levels of service which reflect community needs and expectations in regard to the service for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible future changes to levels of service.

Levels of Service Possible changes to Level of Service

Access is provided to the Improvements to the convenience and safety of access to the road system by network of local roads users, other than motor traffic, has had recent focus. There may be further national, regional and local policy initiatives that provide a requirement for increased levels of service for access to the roading system for users such as cyclists and pedestrians. The Council delivers a The future focus on safety issues may lead to a more definitive level of service than roading network that the current mandatory level of service and the safety barrier level of service. It is addresses safety and not expected that amenity issues will require more specific level of service attention amenity issues. than is currently provided. The pavement life of A conservative approach to the road resurfacing level of service in past years may sealed roads is preserved. have encouraged a resealing programme that did not fully utilise the potential seal life of roads. Seal lives are currently being extended and performance information gathered, while ensuring that pavement integrity and life is not adversely affected.

Future Directions

Current road classifications within the District have changed due to the ONRC discussed above. If funding is to be reduced based on revised classifications, the level of service the Council is able to provide may also have to be reduced.

Climate Change - Climatic changes can create extreme events such as droughts and flooding which could require significant unforeseen expenditure for this activity.

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Programmed actions for 2015-25 Capital Works – District Wide Overview The Council has planned $32.4million of capital expenditure for the Roads and Footpaths activity. Within that the total renewals budget for the 10 year period is $20.8million – that is money to retain the current levels of service. $11.6million is associated with increasing the current levels of service such as new footpaths and new kerb and channel.

The majority of capital expenditure is budgeted on a ‘network wide’ (District-wide) basis, and is then applied based on need.

$29.8million has been allocated for District-wide capital and renewal works over the ten year period, comprising the following:

 sealed road resurfacing – $8.1million (renewal)  drainage renewals – $1.5million (renewal)  pavement rehabilitation – $7.6million (renewal)  structures component replacements – $1.2million (renewal)  traffic services renewal – $1.5million (renewal)  other renewals – $556,000 (renewal)  minor improvements – $9.2million (level of service).

Capital Works Schedule – by Ward In addition to the District-wide budgets, funding has been allocated for specific Ward projects such as footpaths and kerb and channel. The total 10 year budgets for these projects are as follows:

Paeroa Ward Type of Capital Project Year Total Cost Expenditure Paeroa new footpaths 2015/16 – 2024/25 $689,000 Level of Service Paeroa new kerb and channel 2015/16 – 2024/25 $582,000 Level of Service

Paeroa footpath renewal programme 2015/16 – 2024/25 $48,000 Renewal

Plains Ward Type of Capital Project Year Total Cost Expenditure

2015/16, 2017/18, Plains new footpaths $67,000 Level of service 2020/21

Waihi Ward Type of Capital Project Year Total Cost Expenditure Waihi new footpaths 2015/16 – 2024/25 $464,000 Level of service Waihi new kerb and channel 2015/16 – 2024/25 $639,000 Level of service

Waihi footpath renewal programme 2015/16 – 2024/25 $124,000 Renewal

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available in Volume 2 of this document.

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What are the costs of operating the Roading activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Pavement Maintenance 1,200 1,248 1,265 1,293 1,428 1,461 1,506 1,550 1,598 1,651 1,708 Amenity Maintenance 517 436 442 452 464 476 489 503 519 535 554 Professional Services 411 550 558 570 584 598 614 632 651 671 693 Other Subsidised 1,291 1,301 1,298 1,355 1,342 1,350 1,396 1,453 1,514 1,566 1,625 Administration 419 421 430 439 448 459 471 482 495 510 524 Non-Subsidised Works 372 410 418 447 436 447 481 470 483 522 512 Public Transport 20 20 21 21 22 22 23 24 24 25 26 Depreciation/Assets written off 3,192 2,970 2,973 3,066 3,070 3,074 3,301 3,305 3,310 3,600 3,605 Interest 807 827 881 917 957 982 1,005 1,009 993 963 909 8,229 8,183 8,286 8,560 8,751 8,869 9,286 9,428 9,587 10,043 10,156

REVENUE Fees, Charges and Other Income 96 ------External Subsidies 3,327 3,275 3,314 3,614 3,663 3,723 3,873 3,950 4,094 4,240 4,355 Targeted Rates 481 3,945 4,263 4,571 4,900 5,309 5,771 6,151 6,555 7,005 7,468 General Rates 3,116 ------7,020 7,220 7,577 8,185 8,563 9,032 9,644 10,101 10,649 11,245 11,823

OPERATING SURPLUS/(DEFICIT) (1,209) (963) (709) (375) (188) 163 358 673 1,062 1,202 1,667

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Funding Impact Statement for 2015-25 for the Roading activity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 3,116 ------Targeted rates 481 3,945 4,263 4,571 4,900 5,309 5,771 6,151 6,555 7,005 7,468 Subsidies and grants for operating purposes 1,888 1,913 1,961 2,057 2,187 2,233 2,331 2,417 2,531 2,646 2,750 Fees and charges ------Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts ------Total Operating Funding (A) 5,485 5,858 6,224 6,628 7,087 7,542 8,102 8,568 9,086 9,651 10,218

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 3,762 3,904 3,937 4,074 4,210 4,286 4,441 4,560 4,716 4,896 5,041 Finance Costs 297 1,003 1,030 1,090 1,135 1,219 1,326 1,403 1,481 1,549 1,530 Internal charges and overheads applied 979 307 345 331 336 289 219 160 80 (2) (20) Other operating funding applications ------Total Applications of Operating Funding (B) 5,038 5,214 5,312 5,495 5,681 5,794 5,986 6,123 6,277 6,443 6,551

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 447 644 912 1,133 1,406 1,748 2,116 2,445 2,809 3,208 3,667

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure 1,440 1,363 1,352 1,558 1,476 1,489 1,543 1,533 1,563 1,594 1,605 Development and financial contributions 96 ------Increase (decrease) in debt 964 816 529 470 262 38 (161) (418) (702) (993) (1,348) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) 2,500 2,179 1,881 2,028 1,738 1,527 1,382 1,115 861 601 257

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service 916 871 893 1,298 1,046 1,137 1,213 1,212 1,275 1,321 1,355 - to replace existing assets 1,868 1,805 1,763 1,803 1,969 2,028 2,147 2,218 2,275 2,349 2,428 Increase (decrease) in reserves 163 147 137 60 129 110 138 130 120 139 141 Increase (decrease) of investments ------Total Applications of Capital Funding (D) 2,947 2,823 2,793 3,161 3,144 3,275 3,498 3,560 3,670 3,809 3,924

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (447) (644) (912) (1,133) (1,406) (1,748) (2,116) (2,445) (2,809) (3,208) (3,667)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) (1,209) (963) (709) (375) (188) 163 358 673 1,062 1,202 1,667

Depreciation/Assets written off 3,192 2,970 2,973 3,066 3,070 3,074 3,301 3,305 3,310 3,600 3,605 Subsidies and grants for capital expenditure (1,440) (1,363) (1,352) (1,558) (1,476) (1,489) (1,543) (1,533) (1,563) (1,594) (1,605) Development and financial contributions (96) ------Vested Asset Income ------SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 447 644 912 1,133 1,406 1,748 2,116 2,445 2,809 3,208 3,667

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Water Supply

What is the Water Supply activity and why is the Council involved?

The Water Supply activity provides domestic, commercial, industrial and agricultural water to the Hauraki communities. Water supply is a core service of Hauraki District Council; a sound water supply is a prerequisite to good public health and safety.

The Council owns and operates eight water supply networks that serve the main urban communities of Paeroa, Waihi and Ngatea; the smaller communities of Karangahake, Mackaytown, Waikino, Kerepehi, Waitakaruru and Turua; and the rural areas of the Hauraki Plains, Kaimanawa (rural area servicing Hikutaia/Maratoto area), and Ohinemuri (Paeroa rural). There are currently projects to decommission the four smallest treatment plants and serve their areas from the nearest major water treatment plant within the District.

Water is essential for people and animals. The Council provides sufficient quantities of treated water for public health, amenities, to reduce the risk of water borne diseases and provides adequate water supply for livestock farming. The Council undertakes this activity to meet the community expectation that safe water will be provided, as well as to meet statutory obligations.

The water supply service is paid for through user charges and targeted rates.

How does the Council deliver the Water Supply activity?

The water supply assets are grouped in networks which serve defined areas of the District. The Council provides the infrastructure for the delivery of water and manages and monitors the maintenance, renewal, replacement and expansion programmes.

The Council is involved in all facets of water supply within the District. Water sources for the various supply networks are established and consented. Water treatment plants are owned and operated to process the water to the standards required by the Ministry of Health. Pipe networks are managed and maintained to deliver water to consumers. The Council provides a rural supply to the Hauraki Plains and Ohinemuri areas, where groundwater quality is poor and surface water is insufficient to support the rural communities and farming activities.

The Council’s capital works programme aims to ensure that water supplies are in a position to meet demand which arises as a result of growth and other factors, as well as to meet the legislatively required New Zealand Drinking Water Standards.

Legislation requires the Council to identify where treated water supplies are required, and to either provide the supplies directly or maintain an overview of supplies which may be provided by others.

Hauraki District Council provides a water supply for fire fighting purposes in the towns of: Ngatea, Kerepehi, Turua, Paeroa, Waikino and Waihi.

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Water source The Council has Waikato Regional Council resource consents to collect water from nine rivers and streams to supply its water networks. The water treatment plants, raw water sources and consented volumes are:

 Paeroa - Waitawheta River (7,000 m³/day)  Kerepehi- Waihou River (15,000 m³/day)  Waitakaruru - Waitakaruru River (6,500 m³/day through two intakes)  Kaimanawa – Paiakarahi Stream (1000 m³/day) (scheduled for replacement of supply prior to 2018)  Mackaytown – Paraparakauri Stream (100 m³/day) (scheduled for decommissioning prior to 2016)  Karangahake - Groundwater Spring, located on Karangahake Mountain (100 m³/day) (scheduled for decommissioning prior to 2016)  Waikino – Mangakara Stream (250 m³/day) (scheduled for decommissioning prior to 2016)  Waihi - Walmsley Stream (3,500 m³/day) (a new raw water take from the Ohinemuri River is due to be commissioned in 2015).

Water treatment At the time of preparing this Plan, water was treated in nine water treatment plants and piped to eight individual water supply networks throughout the Hauraki District. The Mackaytown, Karangahake and Waikino existing small treatment plants will be decommissioned early in the term of this Hauraki Long Term Plan, and will be served from Paeroa and Waihi respectively. The Apakura Stream raw water resource consent expired on 30 June 2015 and the Huirau Road small treatment plant has been decommissioned. All of the Plains water is supplied from the Kerepehi and Waitakaruru treatment plants.

Water storage and distribution The nine water treatment plants in the Hauraki District supply treated water to 7,080 properties. Approximately 580 kilometres of pipelines transport water to connections across the network. More than 8,300 consumer water meters are installed across all the water supply systems.

The quality of water supplied varies throughout the District depending on the water source, scheme design and level of treatment.

The Hauraki District is unusual for a smaller rural authority in that nearly 80% of the water treated by the Council is consumed by the rural community for agriculture. On farms, the Council water supply provides drinking water to stock and is used within dairy sheds. Farm households also typically source their water from the public water supply. Farmers are not permitted to use the public water supply for irrigation purposes. The Plains water supply system covers an area of 33,000 hectares, and in addition to agricultural use in the rural Plains area, it supplies the townships of Ngatea, Waitakaruru, Kerepehi, Turua. The pipe system is pressurised by pumping from stations at Kerepehi and Waitakaruru.

Water for the Plains is taken from four separate sources and treated at three treatment plants (including Kaimanawa). The scheme was originally designed to provide each farm with 225 litres per hectare per day into consumers’ on-site storage over a 24 hour period. This design approach was aimed at affordability. The current system is sized on the basis of 450 litres per hectare per day. An ‘on-demand’ supply of this scale would require pipes, pumps and treatment plants significantly larger than those currently in use.

If there is significant intensification of dairy farming on the Plains, additional water sources and treatment capacity are likely to be required; however current indications from the industry are that this is very unlikely.

Outside of the public water supply systems, approximately 6,100 people on 4,060 properties in the District obtain their water supply from their own rainwater tanks, private bores, or a small number of minor piped networks at various schools and industries that serve more than a single premise.

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Legally, the Council is required to act:

 when potential health risks from water supplies (whether private or public) are identified  to ensure that all inhabited buildings have safe and adequate water supplies  to ensure that fire hydrants are installed in gazetted urban fire districts.

The Council must monitor and maintain the ongoing sufficiency, effectiveness and efficiency of the water supply systems.

Key legislative drivers

 Local Government Act, 2002 and the Local Government Act, 1974  Health Act, 1956  Health (Drinking Water) Amendment Act, 2007  Drinking Water Standards New Zealand, 2005 (revised in 2008)  Resource Management Act, 1991, and amendments  National Policy Statement for Freshwater Management

Relevant Policies, Plans and Strategies

 Water Supply Asset Management Plan  Water Supply Strategies  Hauraki District Council Engineering Manual  Development Contributions Policy  Hauraki District Plan  Operative Regional Policy Statement, Proposed Regional Policy Statement and Regional Plan  Hauraki District Council Consolidated Bylaw  Assessment of Water and Sanitary Services  Asset Management Planning Policy  Infrastructure Strategy  Hauraki District Council Financial Strategy 2015-25

Demand Management

The population of the Hauraki District is projected to remain virtually static over the life of the Hauraki Long Term Plan. However, the makeup of the Hauraki population is likely to change as the population ages, resulting in smaller household sizes. In relation to water supply, studies indicate that larger households use water more efficiently per person, as tasks such as dishwashing and clothes washing require a similar minimum volume of water irrespective of the number of people living in the dwelling.

Provision of stock and process water to dairy farms is a major demand factor, significantly affected by animal stocking rates. Dairy farms in the Hauraki District already operate amongst the higher stocking rates in New Zealand; however significant stocking rate increases beyond the capacity of the water asset are not anticipated during the term of this Plan. Demand may arise, however, from areas outside of those currently served as water quality standards within the industry increase. Whilst small additional areas can be fed from the current network, significant increases would require network upgrades.

Potential changes in demand for water supplied for agricultural purposes may arise due to the effects of climate change. As farmers experience longer dry periods and droughts, their milking seasons will shorten, which may result in lower demand for water for stock.

The water supply level of service to the rural area of the Plains, as agreed with users of the Plains supply, is currently to deliver the daily requirement of water over any given 24 hour period. Many properties connected to this supply have on-site water storage to ensure continuous water availability to households and stock.

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The Council is actively promoting the District as a potential location to set up business. Industrial users, depending on the nature of the industry, can be very large water users. For example, a water intensive industry could consume 1,000 cubic metres of water per day, which would represent roughly half the average daily consumption of the Paeroa water supply network. This is an area of risk due to the unknown demand that could be placed on the Council’s water supply network. The costs of increasing capacity to meet additional demands could, however, be passed on to any incoming or expanding industry.

The Council’s water supply capital works programme for 2015-25 continues to work towards meeting legislative requirements and standards for water quality, security of supply and additional capacity issues.

Collaborative Projects Education campaigns The Council currently works with Matamata-Piako and Thames-Coromandel District Councils and the Waikato Regional Council on water conservation initiatives. The councils operate a community education venture to raise the level of awareness of the impacts of water use on the environment and on infrastructural services. The Smart Water Use campaign is an example which is advertised each summer through newspapers, websites and radio advertising.

The Council provides funding to both the Enviroschools and Zero Waste education programmes in the District’s primary schools. These programmes address sustainable use of water.

Consultative Committee Water and Waste The Council has a Standing Committee in place called the Consultative Committee Water and Waste. This Committee was established to enable special interest groups to be informed of and contribute to important water and waste issues. This advisory Committee provides recommendations to the Council, made in conjunction with a number of participating community and stakeholder groups such as Federated Farmers, local iwi and the Forest and Bird Society.

What are the significant negative effects on the local community?

 The cost of compliance with Central Government imposed New Zealand Drinking Water Standards has resulted in increased costs to water users as the Council upgrades its water treatment plants.  The public water supply draws water from the rivers and streams within the District. This reduces the flow in the streams and is perceived to have negative environmental effects on this finite resource. This needs to be carefully managed by the Council.  The easy availability of and access to clean water that is safe to drink, for members of the community connected to the public water supply, can lead to wasteful use. There is a need to manage public expectations and encourage respect for this resource.  There are potential conflicts between the use of water and community expectations. Many believe they have a right to water, and that water should be free of charge. The cost of supplying treated water needs to be communicated to the community in order to promote understanding and knowledge.  As water infrastructure is expected to have a life of between 50-150 years, the costs of supplying water to communities can span more than one generation of ratepayers. If not responsibly managed and apportioned, one generation could benefit at the expense of another.

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Levels of Service and how the Council will measure them

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) The Council provides water supply services at agreed levels of service. Measure: Annual 2014: 63% of 2015-25: Equal to or Customers are satisfied with the customer customers greater than 60% of cost of water supplied by the satisfaction satisfied customers satisfied Council. survey Water services meet regulatory requirements. Number of No abatement 2015-25: No abatement Measure: abatement notices and or enforcement notices The water supply service is notices and enforcement received. operated in compliance with enforcement notices received regulatory requirements. notices received (2013/14) Good quality water is supplied to consumers. Measure: Annual 2014: 80% of 2015-25: Equal to or Customers are satisfied with the customer customers greater than 80% of water quality from Hauraki District satisfaction satisfied customers satisfied Council networks. survey

Water is safe to drink.

Measure: The NZ New measure  Kerepehi 2014/15 Water treatment plants will comply Drinking Water  Waitakaruru with the New Zealand Drinking Standards 2008 2015/16 Water Standards (NZDWS) 2008.  Waihi 2015/16  Paeroa 2015/16

Protection is provided to the community and the environment.

Measure: Mapping done 95.3% 2015-25: Equal to or Fire hydrants are provided to via GIS compliance (GIS greater than 95% urban fire districts within a 135 software analysis compliance metre radius of the closest completed 2012) property boundary.

A reliable water supply is provided.

Measure: Service request 1 customer per 2015-25: <5 customers Number of customers whose database 1000 per 1000 connections water supply is interrupted more connections than twice in a 12 month period due to unplanned loss of supply incidents.

Timely response to customer requests.

Measure: Service request  Emergency: 2015-25: Customer requests are responded database no incidents  Emergency call- to within target timeframes:  Urgent: outs: 100%  Emergency call outs: resolved 78%  Urgent customer <1 hour  Priority: requests: 80%  Urgent customer requests: 74%  Priority customer response <1 hour  Routine: requests: 80%  Priority customer requests: 61%  Routine customer assess <4 hours requests: 85%  Routine customer requests: call back <3 working days

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Mandatory Performance Measures (2015-25)

The following table includes the Government’s mandatory performance measures that all councils are legislatively required to measure annually and report on in their Annual Reports.

Measure: The extent to which the local authority’s drinking water supply complies with: a) part 4 of the drinking water standards (bacteria compliance criteria), and b) part 5 of the drinking water standards (protozoal compliance criteria).

Method of measurement: Extract from National Water Information New Zealand (WINZ) database

 Kerepehi – plant upgrade completed, bacteria and protozoal compliance met  Waitakaruru – pre treatment plant upgrade, non compliance with NZDWS 2008  Paeroa – pre treatment plant upgrade, non-compliance with NZDWS 2008  Waihi – treatment plant upgrade underway but not complete, non-compliance with NZDWS 2008 Baseline:  Kaimanawa – non compliance with NZDWS 2008  All other supplies – non compliance with NZDWS 2008 Note: All supplies have generally been compliant with the Drinking Water Standards for NZ (DWS) 2000, however most plants do not have sufficient protozoa measures to comply with the current standard. Target:  Kerepehi – full compliance  Waitakaruru – full compliance from July 2016, prior to that, full compliance with DWS 2000  Paeroa – full compliance from July 2015, prior to that, full compliance with DWS 2000  Waihi – full compliance from July 2015, prior to that, full compliance with DWS 2000  Kaimanawa – Rural Agricultural Standard applies and has not yet been produced by the Ministry of Health. As an interim measure, target is compliance with DWS 2000  All other supplies – compliance with DWS 2000 until decommissioned.

The percentage of real water loss from the local authority’s networked reticulation Measure: system (including a description of the methodology used to calculate this). Method of measurement:  Calculation methodology = Volume of water sold (sourced from water meter invoicing system, from rates department) versus volume of treated water produced by the water treatment plants (sourced from water treatment plant treated water supply meter(s)).

 Hauraki Plains – 32%  Paeroa – 37%  Waihi – 13%  Kaimanawa – 31% Baseline:  Karangahake – 35%  Mackaytown – 16%  Waikino – 68%

Target: The percentage of unbilled water versus the volume of treated water produced is less than 30%.

Measure: Where the local authority attends a call out in response to a fault or unplanned interruption to its networked reticulation system, the following median response times measured: a) attendance for urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site, and b) resolution of urgent call-outs: from the time that the local authority receives notification to the time that service personnel confirm resolution of the fault or interruption. c) attendance for non-urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site, and d) resolution of non-urgent call-outs: from the time that the local authority receives

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notification to the time that service personnel confirm resolution of the fault or interruption. Method of measurement: The Customer Service Request Database will be used to determine the time that the customer service request / complaint was logged.

The field-staff job-sheets will be used to determine the time to site, and time to resolve. The job-sheets are also used to record the details about the repair work carried out.

The level of service reporting spreadsheet is used to collate the incoming data, and calculate and report on performance. Median time for staff to 20 minutes arrive on site Urgent call out Median time for staff to 60 minutes restore water supply Baseline: Median time for staff to 45 minutes arrive on site Non-urgent call out Median time for staff to 3 hours 25 minutes resolve fault Target: Median time for staff to Less than 1 hour, anywhere arrive on site within the district Urgent call out 99% or more of all water supply Median time for staff to faults are resolved within 8 restore water supply hours Median time for staff to Less than 4 hours, anywhere arrive on site within the district Non-urgent call out 99% or more of all water supply Median time for staff to faults are resolved within 8 resolve fault hours Measure: The total number of complaints received by the local authority about any of the following: a) drinking water clarity b) drinking water taste c) drinking water odour d) drinking water pressure or flow e) continuity of supply, and f) the local authority’s response to any of these issues expressed per 1000 connections to the local authority’s networked reticulation system.

Method of measurement: The Customer Service Request Database will be used to determine the number of complaints received about the listed issues.

Water quality issues: 12.5 per 1000 connections (clarity; taste; odour) Service quality issues: (poor response to a service request) Baseline: Water pressure / flow issues: 2.5 per 1000 connections (pressure; flow; continuity of supply) Total: 15 per 1000 connections

Water quality issues: No more than 5 complaints per 1000 (clarity; taste; odour) connections Service quality issues: (poor response to a service request) Target: Water pressure / flow issues: No more than 5 complaints per 1000 (pressure; flow; continuity of supply) connections Total: No more than 10 complaints per 1000 connections

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Measure: The average consumption of drinking water per day per resident within the territorial authority district. Method of measurement: Census meshblocks have been used to calculate the population within the urban boundaries.

Water billing records for customers’ water meters are used to calculate the volume of water sold to each property in the District.

GIS analysis is used to identify which properties are located in an urban area, and thereby calculate the total volume of water sold to urban customers, and the urban population.

The final calculation is: the volume of water sold divided by the population. Urban water use 277 litres / person / day Baseline: Agricultural water use 247 litres / hectare / day Urban water use Less than 300 litres / person / day Target: Agricultural water use Less than 300 litres / hectare / day

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

Across the Council’s network activities, the customer can now expect the same level of service for response times to emergency, urgent, priority and routine call outs and Timely response to service requests. This is a change in level of service wording (for the purposes of customer requests. clarity and transparency) for the activities of Roading, Water Supply, Stormwater, Land Drainage and Wastewater. Drinking water compliance was assessed against the Drinking Water Standards for NZ 2000 exclusively in Hauraki District up to 1 July 2014. As the upgrade works proceed across the District, compliance monitoring will be carried out against the NZ Drinking Water Standards 2008. The newer Standards now include Protozoa barriers (Giardia and Cryptosproidium) as primary requirements. Water is safe to drink.

All of the Council’s water supplies have some barriers against Protozoa, however until the upgrades are completed, these barriers do not meet the new Standards. Upgrades are expected to be completed by 1 July 2015 for all water networks other than Kaimanawa, which is expected to comply from 2018.

Possible future changes to Levels of Service

This Hauraki Long Term Plan includes levels of service which reflect community needs and expectations for the service for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible future changes to levels of service.

Levels of Service Possible changes to Level of Service

Water services meet All supplies except Kaimanawa are expected to be improved to comply with NZDWS regulatory requirements. 2008 by 1 July 2015.

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Future Directions Local Government Act reform The current capital programme for the 2015-25 period will complete the Council’s long term strategy for water treatment and treated water storage.

No developments in the regulatory environment are foreseen during the period and beyond, that would significantly alter the way in which the Water Supply activity is carried out.

Emphasis will be placed on further developing the renewal strategy, particularly for the pipe network, in order to ensure that the level of service is maintained while at the same time obtaining the best value possible from the assets.

Programmed actions for 2015-25 Capital Works – District Wide Overview Over the 10 year period, the Council has planned $11.9million of capital expenditure for the Water Supply activity. Within that, the total renewals budget for the 10 year period is $7.3million – that is money to retain our current levels of service. $4.6million is associated with increasing the current levels of service, with the majority of this activity occurring in the first two years of the Plan in the Plains and Kaimanawa schemes.

The breakdown of the capital projects, by scheme, is detailed below.

In addition to the scheme-by-scheme projects, $2.6million has been allocated for ‘district-wide’ renewal works over the 10 year period comprising the following:

 pipeline renewals - $726,000 (renewal)  water meter renewals - $486,000 (renewal)  water treatment component renewals - $1.26million (renewal)  district wide bulk water - $160,000 (level of service capital).

Capital Works Schedule – Schedule by Scheme Paeroa A total of $905,000 is planned to be spent on the Paeroa scheme, comprising the following:

Type of Capital Project Year Total Cost Expenditure Paeroa resource consent renewal 2017/18 $129,000 Renewal Paeroa membrane renewals 2022/23 $726,000 Renewal Paeroa standby pump for Dell pumpstation 2016/17 $26,000 Level of Service Paeroa zone metering 2015/16 $45,000 Level of Service

Plains The Council is planning to spend $5.8million on capital works associated with the Plains water scheme.

There are two major projects in the 2015/16 year: water storage ($2.9million) and the Waitakaruru upgrade ($1million). In year 2021/22 there is $1.0million of expenditure planned for the renewal of the Kerepehi membranes.

$185,000 will be spent on zone metering over 2015/16-2017/18.

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A full breakdown of the capital projects over $10,000 for the Plains scheme is as follows:

Type of Capital Project Year Total Cost Expenditure 2015/16 – Plains reticulation zone metering $185,000 Level of Service 2017/18 Plains reticulation booster and transfer 2016/17 $145,000 Level of Service pumps Plains reticulation treated water storage 2015/16 $2.9million Level of Service Plains resource consents Waitakaruru 2017/18 $108,000 Renewal Plains resource consents Waitakaruru 2015/16 $30,000 Level of Service discharge Plains Waitakaruru upgrade to NZDWS 2015/16 $1million Level of Service 2008 2017/18, 20/21, Plains Waitakaruru dose pump renewals $62,000 Renewal 23/24 2015/16 – Plains Waitakaruru riparian planting $138,000 Level of Service 2021/22 Plains Waitakaruru chemical (PACL) 2016/17 $25,000 Renewal storage tank Plains Waitakaruru reticulation flowmeter 2022/23 $15,000 Renewal Plains Waitakaruru backwash variable 2022/23 $16,000 Renewal speed drive (VSD) Plains Waitakaruru State Highway 25 VSD 2022/23 $15,000 Renewal 2015/16, 17/18, 18/19, 20/21, Plains Kerepehi UV lamp renewals $112,000 Renewal 21/22, 23/24, 24/25 Plains Kerepehi reticulation pump 1 VSD 2021/22 $15,000 Renewal Plains Kerepehi membrane renewals 2021/22 $1,035million Renewal

Kaimanawa $2.03million is planned to be spent on the Kaimanawa scheme. $2.0million of that is to enable connection of the Kaimanawa scheme to either the Plains or Paeroa schemes in 2015/16. The remaining $32,000 is for decommissioning the existing water treatment plant (in 2016/17). (Both projects are renewals).

Waihi $473,000 is planned to be spent on the Waihi scheme, comprising membrane renewals ($457,000 in 2022/23) and an outflow meter ($6,000 in 2023/24). (Both projects are renewals).

Waikino, Mackaytown, Karangahake, Ohinemuri For these three schemes, there are no significant capital works projects planned above the ‘district-wide’ programme.

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available in Volume 2 of this document.

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What is the cost of operating the Water Supply activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Treatment 1,383 1,260 1,308 1,327 1,382 1,441 1,506 1,577 1,654 1,738 1,830 Reticulation 562 540 560 582 606 632 660 691 725 762 803 Intakes and Headworks 422 527 359 389 442 389 409 426 452 472 500 Fixed Costs 166 201 206 211 217 223 230 237 245 253 262 Overheads 774 811 828 845 864 884 905 928 952 970 1,006 Pumpstations 25 24 25 36 37 39 41 42 44 47 49 Major Maintenance 98 74 311 174 139 161 320 174 237 116 502 Other 389 381 368 375 319 338 334 343 351 373 371 Depreciation/Assets written off 2,280 1,321 1,330 1,412 1,412 1,412 1,525 1,525 1,525 1,668 1,668 Interest 816 1,117 1,213 1,123 1,096 1,041 991 942 938 955 894 6,915 6,256 6,508 6,474 6,514 6,560 6,921 6,885 7,123 7,354 7,885

REVENUE Fees, Charges and Other Income 203 107 107 107 107 107 107 107 107 107 107 External Subsidies 3,200 1,753 3,173 ------Targeted Rates 6,013 6,134 6,256 6,381 6,509 6,639 6,772 6,907 7,046 7,186 7,330 General Rates ------9,416 7,994 9,536 6,488 6,616 6,746 6,879 7,014 7,153 7,293 7,437

OPERATING SURPLUS/(DEFICIT) 2,501 1,738 3,028 14 102 186 (42) 129 30 (61) (448)

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Funding Impact Statement for 2015-25 for the Water Supply activity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING

General rates, uniform annual general charges, rates penalties ------Targeted rates 6,013 6,134 6,256 6,381 6,509 6,639 6,772 6,907 7,046 7,186 7,330 Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts ------Total Operating Funding (A) 6,013 6,134 6,256 6,381 6,509 6,639 6,772 6,907 7,046 7,186 7,330

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 3,044 3,007 3,137 3,094 3,142 3,223 3,500 3,490 3,708 3,761 4,317 Finance Costs 816 1,117 1,213 1,123 1,096 1,041 991 942 938 955 894 Internal charges and overheads applied 775 811 828 845 864 884 905 928 952 970 1,006 Other operating funding applications ------Total Applications of Operating Funding (B) 4,635 4,935 5,178 5,062 5,102 5,148 5,396 5,360 5,598 5,686 6,217

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 1,378 1,199 1,078 1,319 1,407 1,491 1,376 1,547 1,448 1,500 1,113

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure 3,200 1,753 3,173 ------Development and financial contributions 96 ------Increase (decrease) in debt 7,719 1,526 (1,792) (768) (1,167) (1,246) (1,078) (203) 110 (1,116) (737) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) 11,015 3,279 1,381 (768) (1,167) (1,246) (1,078) (203) 110 (1,116) (737)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service 12,421 4,249 282 51 17 16 13 7 - - - - to replace existing assets 778 229 2,177 500 223 229 285 1,337 1,558 384 376 Increase (decrease) in reserves (806) ------Increase (decrease) of investments ------Total Applications of Capital Funding (D) 12,393 4,478 2,459 551 240 245 298 1,344 1,558 384 376

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (1,378) (1,199) (1,078) (1,319) (1,407) (1,491) (1,376) (1,547) (1,448) (1,500) (1,113)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) 2,501 1,738 3,028 14 102 186 (42) 129 30 (61) (448)

Depreciation/Assets written off 2,280 1,321 1,330 1,412 1,412 1,412 1,525 1,525 1,525 1,668 1,668 Subsidies and grants for capital expenditure (3,200) (1,753) (3,173) ------Development and financial contributions (96) ------Vested Asset Income (107) (107) (107) (107) (107) (107) (107) (107) (107) (107) (107) SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 1,378 1,199 1,078 1,319 1,407 1,491 1,376 1,547 1,448 1,500 1,113

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Wastewater

What is the Wastewater activity and why is the Council involved?

The Wastewater activity is a core service of Hauraki District Council and involves the collection, treatment and disposal of wastewater.

The Council provides and operates piped sewer networks and treatment plants for seven urban townships in the Hauraki District. It ensures that collection, treatment and disposal of wastewater complies with Public Health Standards and specific resource consent conditions, particularly those requiring the minimisation of adverse effects on the receiving environment.

The key reasons for providing a service for treatment and disposal of wastewater are; to protect public health, to mitigate the risks of pollution and disease associated with wastewater, and to protect the receiving environments from the effects of wastewater products and by-products.

The Council’s Regulatory Services Group maintains an overview of the adequacy of private collection and disposal systems (such as septic tanks on rural properties), and takes appropriate steps when problems or potential problems are identified. It issues building consents for systems but under the auspices of the rules in the Waikato Regional Plan.

How does the Council deliver the Wastewater activity?

The Council operates seven treatment plants - located at Kerepehi, Ngatea, Paeroa, Turua, Waihi, Waitakaruru and Whiritoa - to which 6,150 properties are connected. The sewer network includes 50 pump stations to assist the flow of wastewater where flat topography limits the application of gravity flow lines.

The Council also controls the disposal of trade wastes and ensures that these are appropriately collected and treated.

Approximately 4,500 properties that are not connected to the Council’s wastewater system, collect and dispose of their own wastewater by private means; typically using septic tanks.

The Hauraki District Council Consolidated Bylaw (Part 4) regulates the discharge of trade waste and domestic wastewater into the wastewater systems operated by the Council.

The Council is legally required to act when potential health risks associated with wastewater collection and disposal (whether private or public) are identified, and is required to ensure that all inhabited buildings have safe and adequate wastewater collection and disposal systems. The Council must also monitor the ongoing sufficiency, effectiveness and efficiency of the wastewater collection and disposal system, and maintain an overview of private collection and disposal systems. The Council must take appropriate steps when existing or potential problems are identified, especially relating to community buildings.

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Key legislative drivers

 Local Government Act, 1974 (sections not repealed in the Local Government Act, 2002)  Local Government Act, 2002  Health Act, 1956  Public Works Act, 1981  Building Act, 2004  Resource Management Act, 1991 (and amendments)  Civil Defence Emergency Management Act 2002  Climate Change Response Act, 2002  The New Zealand Waste Strategy  National Policy Statement for Freshwater Management

Relevant Policies, Plans and Strategies

 Wastewater Asset Management Plan  Asset Management Planning Policy  Hauraki District Council Engineering Manual  Development Contributions Policy  Hauraki District Plan  Operative Regional Policy Statement, Proposed Regional Policy Statement and Regional Plan  Hauraki District Council Consolidated Bylaw  Assessment of Water and Sanitary Services  Infrastructure Strategy  Hauraki District Council Financial Strategy 2015-25

Demand Management

The population of the Hauraki District is projected to remain virtually static over the life of the Hauraki Long Term Plan. However, the makeup of the Hauraki population is likely to change as our population ages, resulting in smaller household sizes. From a wastewater perspective, the decrease in average household size is likely to increase wastewater per capita. Studies indicate that larger households use water more efficiently per person, as tasks such as dishwashing and clothes washing require a similar minimum volume of water irrespective of the number of people living in the dwelling.

Over the next five years the Council will be renewing its Waikato Regional Council resource consents that regulate discharges from wastewater treatment plants into their receiving environments. The programme of renewals and upgrades to wastewater treatment plants that the Council has undertaken over the last 15 years will mean the Council is in a good position to regain these consents at Kerepehi, Ngatea, Paeroa, Turua, Waihi, and Waitakaruru. These upgrades also mean that the Council’s wastewater systems are able to cope with potential increased demands due to population change. However the expected demographic profile for the 2015-25 period will not raise demand management issues for wastewater in the Hauraki District.

A reasonably high level of community satisfaction indicates that significant demands will not be expected from the community to change the delivery of this activity during the life of this Plan.

The Council encourages good household practices to use water conservatively, with the double benefit of reducing water consumption and minimising the burden on wastewater systems. The Council also carries out inspections as required to identify illegal disposal of stormwater into the wastewater system.

Heavy or prolonged rainfall events can affect the Wastewater activity by additional infiltration into the systems, and can cause overflows. Climate change may potentially increase the frequency of occurrence of this type of event over the longer term. There are no plans to adopt any other measures in relation to this potential effect at this time. However, the Council has implemented a programme to monitor the wastewater catchments over a ten year rolling cycle, to track any increase in groundwater infiltration over time. This will give an indication of isolated activities or adverse trends and guide appropriate action.

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Trade waste is not a major contributor to the Council’s wastewater networks, and commercial discharge is managed through the Council’s Trade Waste and Wastewater bylaws. However, the Council is actively promoting the District as a potential location to set up business. Industry users, depending on the nature of the industry, can place very high demands on wastewater systems. The costs of increasing capacity to meet additional industrial demands, however, should be met by the incoming industry.

The Council maintains a facility for tanker trucks to dispose of septic tank effluent, and monitors the volume of this waste which is delivered to the network. The current system appears to be suitably sized at least for the period of this Plan.

Collaborative Projects Consultative Committee Water and Waste The Council has a committee in place called the Consultative Committee Water and Waste. This Committee was established to enable special interest groups to be informed of and contribute to important water and waste issues. This advisory Committee provides recommendations to the Council, made in conjunction with a number of participating community and stakeholder groups such as Federated Farmers, local iwi and the Forest and Bird Society.

What are the significant negative effects on the local community?

 The cost of compliance with regulations relating to wastewater may negatively impact the community as these costs are passed on to the users of this service.  Ongoing expenditure is required to maintain the wastewater infrastructure to appropriate standards, which will be a cost to the users of this service.  There is the potential for conflict between wastewater discharges into the receiving environment and cultural values.  Negative effects on the environment, such as from spills, could occur as a result of non-compliance with consent conditions, or natural disasters.  Possible overflows during rain events can result in contamination of stormwater systems and downstream waterways.

Levels of Service and how the Council will measure them

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14)

Council provides Wastewater services at agreed levels of service.

Measure: Annual customer 2014: 94% of 2015-25: Equal to or Percentage of users satisfied with satisfaction survey customers greater than 95% of the quality of wastewater services satisfied customers satisfied provided.

Wastewater services meet regulatory requirements.

Measure: Number of No abatement 2015-25: The wastewater service is abatement notices notices or  No abatement operated in compliance with and enforcement enforcement or enforcement regulatory requirements. notices received proceedings notices were received. received. (2013/14)

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Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Protection is provided to the community and the environment. Measure: Service request  0.85 2015-25: Number of dry weather overflows database overflows  <1 pump-station from pump stations and/or the per 20 overflow per 20 wastewater network. pump pump stations stations per year.  3 overflows  <15 overflows per 100km from the pipe of network network per 100km of wastewater pipe length per annum. Timely response to customer requests. Measure: Service request  Emergency: 2015-25: Customer requests are responded database 100%  Emergency call- to within target timeframes:  Urgent: outs: 100%  Emergency call outs: resolved 77%  Urgent <1 hour  Priority: customer  Urgent customer requests: 96% requests: 80% response <1 hour  Routine:  Priority  Priority customer requests: 70% customer assess <4 hours requests: 80%  Routine customer requests:  Routine call back <3 working days customer requests: 85%

Mandatory Performance Measures (2015-25)

The following table includes the Government’s mandatory performance measures that all councils are legislatively required to measure annually and report on in their Annual Reports.

Measure The number of dry weather sewerage overflows from the territorial authority’s sewerage system, expressed per 1000 sewerage connections to that sewerage system. Targets for this measure: Less than 25 per 1000 connections per annum Actuals: 3 per 1000 connections Method of measurement: The Customer Service Request Database will be used to determine the number of customer service requests/complaints that have been logged in respect of overflows.

The field-staff job-sheets will be used to determine the time to site, and time to resolve. The job-sheets are also used to record the details about the repair work carried out.

The level of service reporting spreadsheet is used to collate the incoming data, to calculate and report on performance. Measure Compliance with the territorial authority’s resource consents for discharge from its sewerage system measured by the number of: e) abatement notices f) infringement notices g) enforcement orders, and h) convictions received by the territorial authority in relation to those resource consents.

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Targets for this measure: a) 0 abatement notices b) 0 infringement notices c) 0 enforcement orders d) 0 convictions Actuals: a) 0 abatement notices b) 0 infringement notices c) 0 enforcement orders d) 0 convictions Method of measurement: Notices will be received via the Council’s document management system and reported to the Council Operations Committee. Measure Where the territorial authority attends to sewerage overflows resulting from a blockage or other fault in the territorial authority’s sewerage system, the following median response times measured: a) attendance time: from the time that the territorial authority receives notification to the time that service personnel reach the site, and b) resolution time: from the time that the territorial authority receives notification to the time that service personnel confirm resolution of the blockage or other fault. Targets for this measure: Attendance time Less than 4 hours after notification Time to resolve problem Less than 4 hours after notification Actuals: Attendance time 20 minutes Time to resolve problem 60 minutes Method of measurement: The Customer Service Request Database will be used to determine the time that the customer service request/complaint was logged.

The field-staff job-sheets will be used to determine the time to site, and time to resolve. The job-sheets are also used to record the details about the repair work carried out.

The level of service reporting spreadsheet is used to collate the incoming data, calculate and report on performance. Measure The total number of complaints received by the territorial authority about any of the following: a) sewage odour b) sewerage system faults c) sewerage system blockages, and d) the territorial authority’s response to issues with its sewerage system, expressed per 1000 connections to the territorial authority’s sewerage system. Targets for this measure: No more than 30 complaints per 1000 connections Actuals: 13 per 1000 connections Method of measurement: The number of connections has been determined by the number of properties paying for wastewater services in their rates.

The Customer Service Request Database will be used to determine the number of complaints received about the listed issues.

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

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Levels of Service Changes in Levels of Service

Protection is provided to A previous level of service statement was ‘number of overflows into dwellings’. The the community and the target was zero and as this was easily achieved at all times; this has now been environment. removed from the Plan.

Timely response to Across the Council’s network activities, the customer can now expect the same level customer requests. of service for response times to emergency, urgent, priority and routine call outs and service requests. This is a change in level of service wording (for the purposes of clarity and transparency) for the activities of Roading, Water Supply, Stormwater, Land Drainage and Wastewater.

Possible future changes to Levels of Service

There are no possible future changes to levels of service anticipated.

Future Directions Water infiltration into wastewater network As outlined in the Infrastructure Strategy, infiltration and inflow of stormwater and ground water into the wastewater pipe network are causing overflows in some areas of Paeroa and Waihi. Work has commenced to control the inflow and this will be a strong focus into the future. The Infrastructure Strategy and Asset Management Plans contain further information on this matter.

Hauraki Industrial Park Wastewater The Council has identified potential for encouraging industrial development at the Hauraki Industrial Park (referred to as the Kerepehi Industrial Park in the Consultation Document) by promoting the area as a ‘Food Hub’ for food processing industries. The Council’s current wastewater treatment facility serving the area has very limited capacity to accept wastewater streams from this type of industry.

An application is currently in progress to the Waikato Regional Council for a resource consent to treat 1,550 cubic metres per day of industrial strength wastewater.

The actual capacity to be constructed will depend upon firm commitments, to be obtained from developers, to utilise and pay for the wastewater treatment. The Council has resolved that commitment to take up and pay the cost of at least 70% of treatment plant capacity will need to be in place before proceeding with any design and construction for a new treatment plant.

No funding for this has been provided for in the Hauraki Long Term Plan. If the project is to proceed it will need to follow the appropriate consultation procedure defined in the Council’s Significance and Engagement Policy.

Programmed actions for 2015-25 Capital Works – District Wide Overview Over the 10 year period, the Council has planned $8.97million of capital expenditure for the Wastewater activity. Within that, the total renewals budget for the ten year period is $7.1million, used to maintain the current levels of service.

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A portion of the renewals budget is allocated on a ‘network wide’ (district wide) basis, and is then used where needed. $2.525million has been allocated as district wide renewal works over the 10 year period comprising the following:

 pump station equipment replacement – $414,000 (renewal)  pond desludging – $693,000 (renewal)  sewer pump renewals – $362,000 (renewal)  pipe renewals – $397,000 (renewal)  reactive renewals for plants and pump stations – $426,000 (renewal)  System Control and Data Acquisition (SCADA) upgrade – $233,000 (level of service).

$6.448million has been budgeted for projects specific to each wastewater area. The breakdown of projects by treatment plant is detailed below.

Capital Works - Schedule by area Kerepehi A total of $263,000 is planned to be spent on Kerepehi wastewater, comprising the following:

Type of Capital Project Year Total Cost Expenditure Resource consents 2019/20 $94,000 Renewal Waveband renewals 2016/17 $156,000 Renewal Aerator component renewals 2019/20, Renewal $13,000 2024/25

Ngatea A total of $66,000 is planned to be spent on Ngatea wastewater, comprising the following:

Type of Capital Project Year Total Cost Expenditure Sewer plant outflow meter renewal 2020/21 $12,000 Renewal Aerator component renewals 2018/19 $11,000 Renewal Screen refurbishment 2024/25 $22,000 Renewal Inflow metering 2016/17 $21,000 Level of service

Paeroa A total of $3.92million is planned to be spent on Paeroa wastewater, comprising the following:

Type of Capital Project Year Total Cost Expenditure Pipe renewals Paeroa to address 2015/16 - $2.194m Renewal stormwater leakage into the wastewater 2018/19 network Chemical phosphorus removal 2021/22 $1.025m Level of service Suspended solids analyser 2015/16 $15,000 Level of service Flowmeter renewals 2024/25 $37,000 Renewal Resource consents 2018/19 $84,000 Renewal Variable Speed Drive renewals 2020/21 $31,000 Renewal Waveband renewals 2017/18 $108,000 Renewal Nitrifying filter renewals 2020/21 $37,000 Renewal UV Lamp renewals Various years $93,000 Renewal

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Type of Capital Project Year Total Cost Expenditure Aerator component renewals 2017/18, $24,000 Renewal 2022/23 Variable Speed Drive renewals 2022/23 $13,000 Renewal Paeroa meters 2022/23 $121,000 Renewal UV renewal 2022/23 $54,000 Renewal Storage chamber pump 2016/17 $9,000 Renewal Replacement screen 2016/17 $83,000 Renewal

Turua A total of $115,000 is planned to be spent on Turua wastewater, comprising the following:

Type of Capital Project Year Total Cost Expenditure Inflow metering 2015/16 $15,000 Level of service Resource consents 2016/17 $78,000 Renewal Outflow meter renewal 2017/18 $9,000 Renewal Aerator component renewals 2019/20, $13,000 Renewal 2024/25

Waihi A total of $1.16million is planned to be spent on Waihi wastewater, comprising the following:

Type of Capital Project Year Total Cost Expenditure Waihi East manhole sealing 2015/16 - $530,000 Renewal 2018/19 Resource consents 2020/21 $92,000 Renewal Aerator component renewals 2017/18, $24,000 Renewal 2022/23 SCADA and instrumentation renewals 2022/23 $11,000 Renewal Dissolved Air Flotation sludge process 2015/16 $500,000 Level of service

Waitakaruru A total of $426,000 is planned to be spent on Waitakaruru wastewater, comprising the following:

Type of Capital Project Year Total Cost Expenditure Resource consents 2021/22 $96,000 Renewal Treatment plant component renewals 2016/17 – $150,000 Renewal 2022/23 Onsite pumps - renewal 2015/16 – $168,000 Renewal 2021/22 UV Disinfection Unit 2020/21 $12,000 Renewal

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Whiritoa A total of $495,000 is planned to be spent on Whiritoa wastewater, comprising the following:

Type of Capital Project Year Total Cost Expenditure Resource consents 2017/18 $81,000 Renewal Irrigation pump renewals 2019/20 $88,000 Renewal Aerator component renewals 2018/19 $6,000 Renewal Inflow metering 2015/16 $20,000 Renewal Irrigation block renewal 2015/16 $300,000 Renewal

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available in Volume 2 of this document.

What is the cost of operating the Wastewater activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Treatment 585 578 610 633 679 684 722 757 793 864 877 Reticulation 137 81 84 88 91 95 99 104 109 115 121 Fixed Costs 105 176 180 185 190 196 202 208 215 222 230 Overheads 340 354 365 376 385 394 404 414 425 420 436 Pumpstations 259 254 264 274 285 297 311 325 341 359 378 Major Maintenance 56 128 122 103 79 68 71 72 68 82 86 Other 248 289 243 237 232 237 243 249 255 262 269 Depreciation/Assets written off 1,213 791 797 847 847 847 917 951 951 1,041 1,041 Interest 403 413 486 518 561 567 549 518 535 499 444 3,346 3,064 3,151 3,261 3,349 3,385 3,518 3,598 3,692 3,864 3,882

REVENUE Fees, Charges and Other Income 339 253 254 255 256 257 259 260 262 263 265 External Subsidies ------Targeted Rates 3,268 3,247 3,271 3,330 3,390 3,448 3,534 3,640 3,749 3,861 3,977 General Rates ------3,607 3,500 3,525 3,585 3,646 3,705 3,793 3,900 4,011 4,124 4,242

OPERATING SURPLUS/(DEFICIT) 261 436 374 324 297 320 275 302 319 260 360

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Funding Impact Statement for 2015-25 for the Wastewater activity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties ------Targeted rates 3,268 3,247 3,271 3,330 3,390 3,448 3,534 3,640 3,749 3,861 3,977 Subsidies and grants for operating purposes ------Fees and charges - 40 41 42 43 44 46 47 49 50 52 Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts 65 ------Total Operating Funding (A) 3,333 3,287 3,312 3,372 3,433 3,492 3,580 3,687 3,798 3,911 4,029

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 1,390 1,506 1,503 1,520 1,556 1,577 1,648 1,715 1,781 1,904 1,961 Finance Costs 403 413 486 518 561 567 549 518 535 499 444 Internal charges and overheads applied 340 354 365 376 385 394 404 414 425 420 436 Other operating funding applications ------Total Applications of Operating Funding (B) 2,133 2,273 2,354 2,414 2,502 2,538 2,601 2,647 2,741 2,823 2,841

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 1,200 1,014 958 958 931 954 979 1,040 1,057 1,088 1,188

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions 61 ------Increase (decrease) in debt 734 1,240 518 634 (5) (524) (655) 213 (697) (967) (952) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) 795 1,240 518 634 (5) (524) (655) 213 (697) (967) (952)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand 580 ------to improve the level of service 400 670 114 - - - - 1,025 - - - - to replace existing assets 967 1,584 1,362 1,592 926 430 324 228 360 121 236 Increase (decrease) in reserves 48 ------Increase (decrease) of investments ------Total Applications of Capital Funding (D) 1,995 2,254 1,476 1,592 926 430 324 1,253 360 121 236

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (1,200) (1,014) (958) (958) (931) (954) (979) (1,040) (1,057) (1,088) (1,188)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) 261 436 374 324 297 320 275 302 319 260 360

Depreciation/Assets written off 1,213 791 797 847 847 847 917 951 951 1,041 1,041 Subsidies and grants for capital expenditure ------Development and financial contributions (61) ------Vested Asset Income (213) (213) (213) (213) (213) (213) (213) (213) (213) (213) (213) SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 1,200 1,014 958 958 931 954 979 1,040 1,057 1,088 1,188

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Land Drainage

What is the Land Drainage activity and why is the Council involved?

The common purpose of land drainage and flood protection and control activities is to retain the productive capability of land, therefore these activities are incorporated into one Land Drainage activity. It is believed that Land Drainage is an appropriate name for this activity, as it is easily understood by those who are affected. The legislative requirement for the Flood Protection and Control activities is set out in section 2 of schedule 10 of the Local Government Act, 2002. Land Drainage is a particularly significant activity for Hauraki District Council, more so than for most other district councils in New Zealand. The Council has Land Drainage standing committees that have representatives from both the Council and users; these committees advise the Council on land drainage and flood protection and control matters.

Land drainage and flood protection and control are key functions of the Council’s operation, as a considerable portion of the northern Hauraki Plains lies at or below the normal high tide level in the Firth of Thames. The remainder of the land on the Hauraki Plains is only slightly above this level, so protection against high water tables, extreme weather events, high tides and river floods is essential to the continuing occupation and use of the land for residential, agricultural and horticultural purposes.

Flood Protection Flood protection in the Hauraki District is provided by the river schemes of the Waikato Regional Council, except in the northwest part of the District (Waitakaruru to Miranda) where it is provided by Hauraki District Council. The assets that provide direct protection from river and tidal flooding include stopbanks, floodgates and pump stations, and are referred to as primary flood protection assets.

Land Drainage Land drainage assets collect runoff from the catchment areas of the District and lead it to the primary flood protection assets which discharge it direct to river or sea outlets. In addition to the drainage network, land drainage assets can include stopbanks, floodgates and pumps. The latter drainage assets perform a land drainage function, e.g. pumping from a minor drain into a major drain; they do not provide direct protection from river and tidal flooding, and are referred to as secondary protection assets.

These services are provided by the Council in four Drainage Districts:

 The Western Plains Drainage District - situated between the Piako River and State Highway 27, from the Firth of Thames to the District boundary with Matamata-Piako District Council.  The Eastern Plains Drainage District - situated between the Piako River and the Waihou River, from the Firth of Thames to the District boundary with Matamata-Piako District Council.  The Paeroa Rural Drainage District - comprises three smaller, former drainage districts east of the Waihou River. The former districts were the Komata North, Opukeko and Tirohia Rotokohu Drainage Districts.  Taramaire Drainage District - a small drainage district south of Kaiaua that the Council became responsible for as part of the Auckland City re-organisation.

The Land Drainage activity provides for public safety and effective protection of property, farmland and roads by draining excess surface water and managing ground water levels. The activity delivers sustainable services which the community needs to function productively and comfortably on a day to day basis, which meet high community health and safety standards, and which promote continuing productive use of the land.

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How does the Council deliver the Land Drainage activity?

The Council performs the Land Drainage activity by maintaining drains, canals, control structures, floodgates, flood pumps, culverts and stopbanks. Maintenance of the drains ensures that the agreed level of service is achieved by effective performance of the drainage system in removing surface runoff. Council drains are maintained by a combination of spraying and machine (primary and secondary asset) cleaning programmes.

Each drainage district, other than Taramaire, has its own advisory committee of members elected to represent ratepayers specifically on drainage matters in their area. The Western Plains Drainage Committee also has responsibility for the management of the flood protection aspect of the activity. The drainage committees report directly to the Council, establishing levels of service with the Council and the community and recommending the annual or ongoing works programme. The Council then sets the rates to be collected on their behalf to fund these works.

The Council currently owns and maintains:

 the land drainage schemes which have a replacement value of approximately $11million (excluding land value). Assets include 651 km of drains, 49km of stopbanks, 93 flood gates and control gates, and 4 pump stations  the Flood Protection schemes which have a replacement value of $4.3million (excluding land value). Assets include 43km of stopbanks and 31 floodgates, and one pump station.

Hauraki District Council also provides administrative support to the locally managed Taramaire Drainage District.

Map of Hauraki Land Drainage Districts and Flood Protection area

Taramaire

Flood Protection

Komata North Western Plains

Opukeko

Eastern Plains

Tirohia Rotokohu

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Key legislative drivers

 Land Drainage Act, 1908  Civil Defence and Emergency Management Act, 2002  Resource Management Act, 1991  Soil Conservation and Rivers Control Act, 1941 (and Amendment Act, 1946)  Climate Change Response Act, 2002  Health Act, 1956  Governments Sustainable Development Action Plan  Local Government Act, 2002  Local Government Act, 1974  Building Act, 2004  Heritage New Zealand Pouhere Taonga Act, 2014

Relevant Policies, Plans and Strategies

 Land Drainage Asset Management Plan  Hauraki District Plan  Hauraki District Council Consolidated Bylaw  Asset Management Planning Policy  Waikato Regional Council Regional Policy Statement and Regional Plan  Hauraki District Council Engineering Manual  Climate Change Policy  Infrastructure Strategy  Hauraki District Council Financial Strategy 2015-25

Demand Management

The Council’s drainage systems are nearly fully developed and are currently on a programme of maintenance and renewal. Capital works therefore focus mainly on programmed renewals. Development of land in the District for agricultural purposes has now been largely completed. As the Land Drainage activity essentially serves areas rather than population, very limited effect is expected on the future demand on the Council’s system of canals, drains, stopbanks and flood control structures as a result of population changes.

It is likely that climate change will impact on the Land Drainage activity over time and may affect future extensions to and/or maintenance of this asset. The Council’s adopted assumption is that average annual rainfall is likely to slightly decrease over the next 100 years; however major rainfall events are predicted to intensify. Change is expected to be gradual and not to have a significant effect on the asset during the life of this Plan.

As peat shrinks and the land contour changes, some re-orientation of the drainage network will be required. In addition a contribution to the capital cost of the pump project has been approved.

Increased drainage pumping capacity may be needed in time, to counteract the possible impact of climate change and rising sea level, in addition to that needed to provide for lower ground levels on the settling peat soils of the Hauraki Plains.

While there is unlikely to be any major drainage development in the foreseeable future, small additions to the drainage network can be expected from time to time. The cost of these additions will be met by the beneficiaries of the additions. Provided that a number of conditions are met, the completed drain addition will be added to the network.

The Council is aware that the predicted impacts of climate change could have significant effects on the foreshore and lower river stopbank requirements for the Regional Council’s river schemes. This may lead to the need for additional flood control measures and structures in the drainage districts. Given the relationship between the river schemes and the drainage districts, the Council will work closely with Waikato Regional Council to develop appropriate responses over the life of this Plan to mitigate the possible consequences of climate change. As well as addressing structural issues, funding issues will

Land Drainage E - 69 also need to be considered if additional works or assets are required. This could impact on the land drainage rates for users in the land drainage areas in the future.

What are the significant negative effects on the local community?

 The cost of compliance with standards can impact the level of cost passed on to the ratepayers who receive the service.  Intensive farming made possible by the land drainage activity leads to loss of natural wetland habitat thereby reducing biodiversity.  Some productive land is lost to drainage channels.  Potential pollution from fertiliser runoff and chemical sprays conveyed through the drainage network negatively impacts water quality.  There is the potential for loss or destruction of historic sites through the provision of land drainage.  There are high rate costs to the beneficiaries of this service.

Collaborative Projects Relationship with Waikato Regional Council Most of the Council’s drainage districts lie within the catchments covered by the Piako River or the Waihou Valley Schemes, which are operated and maintained by the Waikato Regional Council. The associated structures (such as the floodgates and pump stations) provide the outlets for the Council’s drainage districts. The Council’s own flood protection and control

works lie outside the area of the river schemes.

Drainage of the Hauraki Plains areas depends entirely on the Waikato Regional Council’s river scheme assets for protection from tidal and river flooding and for discharging runoff through the primary flood gated outlets and pumps. The scheme assets (stopbanks, floodgates and pumps) are owned by the Waikato Regional Council, which has the responsibility for provision, maintenance, and depreciation funding of the assets. Waikato Regional Council funds only the power company’s network charges to their pumps. Hauraki District Council has responsibility for and funds the energy component of the power company’s charges and the weed clearing maintenance of the pump screens.

The urban areas of Kerepehi, Ngatea, Paeroa and Turua all discharge to the Waihou or Piako Rivers via Waikato Regional Council floodgates and pump stations. In the Plains townships, the main drainage outlet channels also convey runoff from upstream rural catchments. The maintenance of these channels is the responsibility of the appropriate drainage committee. In Paeroa, the primary urban drainage channel is the Hape Stream (Paeroa Main Drain) which is maintained under the urban stormwater activity. This channel also conveys upstream rural catchment runoff.

The two organisations cooperate closely. The Council appoints a representative to the Waikato Regional Council Waihou-Piako Zone Liaison Subcommittee. There are also additional local community representatives, often from the Hauraki District, that are appointed to the zone subcommittee. Staff of both Councils share the routine monitoring, inspection and minor maintenance of the pump stations. In times of flood events the two Councils’ staff and contractors cooperate closely to deliver the level of service.

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Levels of Service and how the Council will measure them

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14)

The Council provides Land Drainage services at agreed levels of service.

Measure: Annual 2014: 76% of 2015-25: Equal to Percentage of affected customers customer customers or greater than 75% satisfied with the land drainage satisfaction satisfied of customers services. survey satisfied Drainage services meet regulatory requirements. Measure: Number of New measure 2015-25: The land drainage service is operated abatement  No abatement in compliance with regulatory notices and notices or requirements. enforcement enforcement notices received notices received. Protection is provided to the community and the environment. Measure: Field survey 92% 2015-25: 100% of Stop bank networks are maintained at undertaken 10 stop bank length or above the design flood level. yearly exceeds the design flood level. Pasture protection is provided. Measure: Service Request No verified 2015-25: No verified Drainage schemes reliably maintain database customer customer pasture production on land that would complaints complaints about otherwise flood after 38mm or less of received flood duration of >3 rainfall over a 3-day period. (2013/14) days are received. Timely response to customer requests. Measure: Service Request  Emergency: 2015-25: Customer requests are responded to database no incidents  Emergency call within target timeframes:  Urgent: outs: 100%  Emergency call outs: resolved <1 100%  Urgent hour  Priority: customer  Urgent customer requests: 100% requests: 80% response <1 hour  Routine:  Priority  Priority customer requests: 100% customer assess <4 hours requests: 80%  Routine customer requests: call  Routine back <3 working days customer requests: 85%

Mandatory Performance Measure (2015-25)

The following table includes the Government’s mandatory performance measures that all councils are legislatively required to measure annually and report on in their Annual Reports.

Method of Baseline Measure Target measurement (2013/14) The major flood protection and control works that are GPS Survey of 92% 100% or more of the maintained, repaired and renewed to the key stopbank level. stopbank length, on standards defined in the local authority’s relevant Design flood level inspection, is greater planning documents (such as its activity management from statistical than the design flood plan, asset management plan, annual works analysis of tidal level. programme or long term plan). records, and hydraulic design of flood profiles.

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Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

Timely response to Across the Council’s network activities, the customer can now expect the same level customer requests. of service for response times to emergency, urgent, priority and routine call outs and service requests. This is a change in level of service wording (for the purposes of clarity and transparency) for the activities of Water Supply, Stormwater, Land Drainage and Wastewater.

Possible future changes to Levels of Service

This Hauraki Long Term Plan includes levels of service which reflect community needs and expectations for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible future changes to levels of service.

Levels of Service Possible changes to Level of Service

The Council provides Climate change will force a review of the cost of providing the current level of service Land Drainage services for the Land Drainage activity. Changing circumstances may mean higher costs to at agreed levels of provide the same level of service. service.

Future Directions

The Waikato Regional Council is the most appropriate authority to operate the flood protection component of the Land Drainage activity. The Council’s current level of service is less than that of the Regional Council’s and there would be a significant capital cost to ratepayers to raise the level of service to match the Regional Council standard. This may be a matter for future consideration by relevant land owners and the Council.

Future reviews of the Council’s Climate Change Policy could result in changes to the design elements for this activity.

The current Treaty of Waitangi Settlement negotiations between the Crown and the Hauraki Collective include negotiations for the establishment of a Joint Co-governance entity that will have an oversight and policy setting role in resource management matters for the Waihou, Piako and Coromandel catchments. This body will contain representatives from Hauraki and upper catchment iwi, the Regional Council and the territorial authorities covering these catchments. At this time the final role of this entity is not known, but once finalised it will have an input to the policy framework that this activity works within.

Programmed actions for 2015-25

Capital Works - Over the 10 year period the Council has planned $1.276million of capital expenditure for the Land Drainage activity. This is predominantly to upgrade existing networks and to provide for the replacement of assets on the networks that have reached the end of their useful lives. The majority of the expenditure ($1.1million) is to be spent in the Western Plains area. The breakdown of the capital projects is detailed below and further information, broken down year by year, can be found in the full capital projects listing in Volume 2 of this document.

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Taramaire Flood Protection Rate - When the Taramaire Drainage District was transferred into the Hauraki District from the ex Franklin District, no provision had been made for Land Drainage rating in the Franklin District Council’s last Annual Plan, and the previous classified rating system for the area therefore lapsed. The Hauraki District Council introduced a drainage rate in 2013/14 for the Taramaire Drainage District and subsequently investigated, with the landowners, the introduction of a Flood Protection Rate to fund the operation of the Taramaire Flood Protection assets. In November 2014 the Council resolved that a proposed Flood Protection Rate be included in the 2015-25 Hauraki Long Term Plan.

The total of the Drainage Rate and the Flood Protection Rate, both based on land value, will be comparable to the previous land area based classified rate.

Capital Works Schedule – by Drainage District Western Plains Drainage District In the 2015-25 period, A total of $1.1million is planned to be spent on the Western Plains Drainage District, comprising the following:

Type of Capital Project Year Total Cost Expenditure 2015/16, 16/17, Karito Canal stopbank renewals $45,000 Renewal 20/21 2016/17 – Hot Springs Canal stopbank renewals $63,000 Renewal 2017/18 2018/19 – Foreshore stopbank renewals $45,000 Renewal 2019/20 2018/19 – Miranda stopbank renewals $45,000 Renewal 2019/20 2020/21 – Miranda North stopbank renewals $30,000 Renewal 2021/22 Waitakaruru Right Bank stopbank renewals 2022/23 $54,000 Renewal Maukoro Canal Left Bank stopbank 2015/16 $10,000 Renewal renewals Smythes Floodgate renewals 2019/20 $293,000 Renewal 2015/16 – Poaurua Maukoro structures renewals $304,000 Renewal 2016/17 Hopai West pump renewals 2016/17 $16,000 Renewal Central North pump renewals 2016/17 $16,000 Renewal Miranda pump renewals 2016/17 $36,000 Renewal 2020/21 – Pump screens renewals $192,000 Renewal 2022/23

Eastern Plains Drainage District A total of $84,000 is planned to be spent on the Eastern Plains Drainage District, comprising the following:

Type of Capital Project Year Total Cost Expenditure Terrace stopbank renewals 2015/16 $74,000 Renewal 2016/17, 18/19, H-Drain culverts renewals $10,000 Renewal 20/21

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Paeroa Rural Drainage District A total of $10,000 is planned to be spent on Paeroa Drainage District, comprising the following:

Type of Capital Project Year Total Cost Expenditure Komata North Drainage District Alexander 2015/16 $10,000 Renewal Canal stopbank renewals

Additionally, in 2015/16 the Council will contribute $145,000 towards the Muggeridge pump project. The Council’s contribution is 5% of the estimated capital cost of $2.9million. The Council will fund its share from the sale of assets, most probably the balance of the land the Council owns where the pump and feeder drain are to be located.

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available in Volume 2 of this document.

What are the costs of operating the Land Drainage activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Vegetation Control 182 182 191 198 206 215 225 235 247 260 273 Maintenance/Fencing/Culverts 12 14 12 13 13 14 15 15 16 17 18 Mechanical Cleaning 182 180 187 194 202 211 221 237 242 255 268 Floodgates 27 29 30 31 33 34 35 37 39 41 43 Pumps 253 247 267 277 288 301 314 329 345 362 381 Overheads 202 211 215 220 224 230 235 241 247 254 261 Other 54 59 61 63 65 67 70 73 76 80 84 Depreciation/Assets written off 258 232 232 247 247 247 268 268 268 295 295 Interest (72) (118) (119) (123) (141) (157) (161) (177) (194) (210) (233) 1,098 1,036 1,076 1,120 1,137 1,162 1,222 1,258 1,286 1,354 1,390

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates 1,047 934 966 1,000 1,032 1,063 1,096 1,132 1,169 1,207 1,246 General Rates 188 164 169 175 181 186 192 198 205 211 218 1,235 1,098 1,135 1,175 1,213 1,249 1,288 1,330 1,374 1,418 1,464

OPERATING SURPLUS/(DEFICIT) 137 62 59 55 76 87 66 72 88 64 74

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Funding Impact Statement for 2015-25 for the Land Drainage activity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 188 164 169 175 181 186 192 198 205 211 218 Targeted rates 1,047 934 966 1,000 1,032 1,063 1,096 1,132 1,169 1,207 1,246 Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts ------Total Operating Funding (A) 1,235 1,098 1,135 1,175 1,213 1,249 1,288 1,330 1,374 1,418 1,464

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 711 712 748 777 807 842 880 926 965 1,015 1,067 Finance Costs ------Internal charges and overheads applied 129 92 96 96 83 73 74 64 53 44 28 Other operating funding applications ------Total Applications of Operating Funding (B) 840 804 844 873 890 915 954 990 1,018 1,059 1,095

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 395 294 291 302 323 334 334 340 356 359 369

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase (decrease) in debt - 14 (61) (291) (250) (19) (226) (264) (233) (359) (369) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) - 14 (61) (291) (250) (19) (226) (264) (233) (359) (369)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service ------to replace existing assets 55 308 230 11 73 315 108 76 123 - - Increase (decrease) in reserves 340 ------Increase (decrease) of investments ------Total Applications of Capital Funding (D) 395 308 230 11 73 315 108 76 123 - -

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (395) (294) (291) (302) (323) (334) (334) (340) (356) (359) (369)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) 137 62 59 55 76 87 66 72 88 64 74

Depreciation/Assets written off 258 232 232 247 247 247 268 268 268 295 295 Subsidies and grants for capital expenditure ------Development and financial contributions ------Vested Asset Income ------SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 395 294 291 302 323 334 334 340 356 359 369

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Stormwater

What is the Stormwater activity and why is the Council involved?

The Stormwater activity involves the removal of rainfall runoff from urban areas using drainage systems, which include natural watercourses, man-made drains, open channels, reticulated pipe networks and other structures for accepting stormwater runoff.

The purpose of this activity is to safely remove stormwater so that transport and communication networks continue to operate, and the risk of flooding to property and the risk to human life in the urban communities of the District is minimised.

The Council has a statutory obligation to provide stormwater services in some areas. However, there is also a community expectation that adequate stormwater services will be provided in urban areas and the Council is seen to be the most appropriate organisation to provide this service. The stormwater service can be seen as complementary to the land drainage function in rural areas, but rural land drainage systems and flood protection works do not form part of the Stormwater group of activities.

How does the Council provide the Stormwater activity?

The Council manages stormwater systems in the urban areas of Kaiaua, Karangahake, Kerepehi, Mackaytown, Ngatea, Paeroa, Turua, Waihi, Waikino and Whiritoa for the protection of the residents, property and the environment.

The stormwater activity assets include open drains (38.8km), piped network (89.5km), detention ponds (6) and pump stations (3). These assets operate in combination to remove surface water runoff that results from rainfall in urban areas.

All stormwater systems, except in Whiritoa and Kaiaua, eventually discharge to either the Waihou or Piako Rivers via a tributary, or via a land drain. Waihi, Mackaytown, Karangahake and Waikino stormwater systems discharge by gravity flow directly to the Ohinemuri River, and then to the Waihou River. Paeroa and Ngatea stormwater discharges to Ohinemuri and Piako Rivers respectively, via outlets controlled by the Waikato Regional Council floodgates and pump stations. Whiritoa and Kaiaua stormwater is discharged to the sea.

In the Plains towns, the main drainage outlet channels also convey runoff from upstream rural catchments. The maintenance of these channels is the responsibility of the appropriate drainage committee. In Paeroa, the primary urban drainage channel is the Hape Stream (Paeroa Main Drain) which is maintained under the urban stormwater activity. This channel also conveys upstream rural catchment runoff.

The Council was granted comprehensive stormwater discharge consents by the Waikato Regional Council for all urban areas in May 2003 for a term of 20 years, with five yearly review periods. These consents stipulate the monitoring and environmental requirements for stormwater discharge and provide guidance on monitoring processes.

Generally the beneficiaries of the stormwater service pay through general rates and targeted rates.

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Key legislative drivers and guidelines

 Building Act, 2004  Civil Defence and Emergency Management Act, 2002  Local Government Act, 2002 (LGA 2002)  Local Government Act, 1974  Resource Management Act, 1991  Climate Change Response Act, 2002  Health Act, 1956  Land Transport Management Act, 2003  New Zealand Coastal Policy Statement  Governments Sustainable Development Action Plan  Land Drainage Act, 1908  Soil Conservation and Rivers Control Act, 1941 (and Amendment Act 1946)  Heritage New Zealand Pouhere Taonga Act, 2014  National Policy Statement for Freshwater Management

Relevant Policies, Plans and Strategies

 Stormwater Asset Management Plan  Stormwater Management Plan  Hauraki District Plan  Operative Regional Policy Statement, Proposed Regional Policy Statement and Regional Plan  Hauraki District Council Consolidated Bylaw  Assessment of Water and Sanitary Services  Development Contributions Policy  Asset Management Planning Policy  Stormwater Reticulation Renewal Strategy  Hauraki District Council Engineering Manual  Infrastructure Strategy

Demand Management

Based on the current levels of service and the 2014 community level of satisfaction of 74%, it is not expected that there will be significant demand driven changes to the stormwater asset during the life of this Plan as a result of increased community expectations.

The population of Hauraki District is projected to remain virtually static over the life of the Hauraki Long Term Plan, although its makeup is likely to change as it ages, resulting in smaller household sizes. Demand in the urban areas should not increase to the extent where additional new infrastructure is needed to service the growth. Little impact on the current infrastructure is expected over the life of this Plan (2015-25).

The Council’s Climate Change Policy allows for the impacts of climate change on the stormwater asset and the Council is taking this into account when it extends and/or undertakes maintenance on the asset. The Council’s adopted assumption is that annual average rainfall is likely to slightly decrease over the next 100 years, however major rainfall events are predicted to intensify. For these expected changes to demands on the stormwater asset, the change is expected to be gradual, and it is not expected to have a significant effect on the asset during the life of this Plan.

The modelling of the stormwater network over time may indicate demand or demand management issues.

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What are the significant negative effects on the local community?

 The cost of compliance with standards can impact the level of cost passed on to the ratepayer.  Capital expenditure required for maintaining infrastructure can also impact the cost to the ratepayer.  Potential conflict between discharge to water and cultural values.  Potential erosion at outfalls.  Potential pipe blockages could cause localised flooding.  Potential sewage cross-contamination which could adversely affect water quality.  Stormwater runoff from roads and land contains contaminants and sediments which eventually reach waterways, potentially affecting water quality.  If the stormwater network is not well maintained there is potential for increased flood risk and property damage, particularly in extreme weather events.

Collaborative Projects Relationship with the Waikato Regional Council The Waihou and Piako River Schemes, operated by the Waikato Regional Council, control flooding in their catchments using stopbanks, flood pumps and floodgates. The majority of the Council’s urban stormwater networks discharge into these rivers.

The towns of Paeroa, Ngatea, Kerepehi and Turua depend on the Regional Council’s river

scheme assets for protection from tidal and river flooding and for discharging runoff through the primary floodgated outlets and pumps.

Staff of both Councils share the routine monitoring, inspection and minor maintenance of the pump stations and floodgates. In times of flood events the two Councils’ staff and contractors cooperate closely to ensure the effective operation of these services.

In Whiritoa the maintenance of the lagoon and blowhole outlets at either end of the beach is the responsibility of the Waikato Regional Council as part of its Peninsula Project.

Levels of Service and how the Council will measure them

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14)

Stormwater systems protect houses from flooding in urban areas.

Measure: Customer 2014: 73% of 2015-25: Equal to or Percentage of customers satisfied satisfaction customers greater than 70% of with the stormwater services. survey satisfied customers satisfied

Stormwater services meet regulatory requirements. Measure: Number of New measure 2015-25: The stormwater service is abatement  No abatement operated in compliance with notices and notices or regulatory requirements. enforcement enforcement notices notices received received A reliable stormwater service is provided. The stormwater network is Service <3 service 2015-25: <5 service maintained to minimise the risk of Request requests per requests relating to blockages causing flooding. database 1000 customers blockages per 1000 (2013/14) customers

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Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Timely response to customer requests. Measure: Service  Emergency: 2015-25: Customer requests are responded Request 100%  Emergency call- to within target timeframes: database  Urgent: 0% outs: 100%  Emergency call outs: resolved  Priority:  Urgent customer <1 hour 100% requests: 80%  Urgent customer requests:  Routine:  Priority customer response <1 hour 100% requests: 80%  Priority customer requests:  Routine customer assess <4 hours requests: 85%  Routine customer requests: call back <3 working days

Mandatory Performance Measures (2015-25)

The following table includes the Government’s mandatory performance measures that all councils are legislatively required to measure annually and report on in their Annual Reports.

Baseline Measure Method of measurement Target (2013/14) a) The number of flooding events Location of at risk properties is a) 0 Flooding a) 0 flooding that occur in a territorial authority known, inspect during event. events events district. b) 0 habitable b) 0 habitable b) For each flooding event, the The number of connections floors affected floors affected number of habitable floors has been determined by the affected (expressed per 1000 number of properties paying properties connected to the for the storm water services in territorial authority’s stormwater their rates. system). Compliance with the territorial Number of abatement/ a) 0 abatement a) 0 abatement authority’s resource consents for infringement notices are notices notices discharge from its stormwater counted. b) 0 infringement b) 0 infringement system, measured by the number of: notices notices a) abatement notices c) 0 enforcement c) 0 enforcement b) infringement notices orders orders c) enforcement orders, and d) 0 convictions d) 0 convictions d) convictions,

received by the territorial authority in relation to those resource consents. The median response time to attend The Customer Service No habitable floor Less than 60 a flooding event, measured from the Request database will be used flooding minutes after time that the territorial authority to determine the time that the notification receives notification to the time that customer service request/ service personnel reach the site. complaint was logged. The field-staff job-sheets will be used to determine the time to site, and time to resolve (if the problem could be resolved during the event). The job- sheets are also used to record the details about the repair work carried out.

The level of service reporting spreadsheet is used to collate the incoming data, calculate and report on performance.

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Baseline Measure Method of measurement Target (2013/14) The number of complaints received The Customer Service 3 complaints per No more than 5 by a territorial authority about the Request database will be used 1000 properties complaints per performance of its stormwater to determine the number of 1000 properties system, expressed per 1000 complaints received about the properties connected to the territorial issue. authority’s stormwater system.

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

Timely response to Across the Council’s network activities the customer can now expect the same level customer requests. of service for response times to emergency, urgent, priority and routine call outs and service requests. This is a change in level of service wording (for the purposes of clarity and transparency) for the activities of Roading, Water Supply, Stormwater, Land Drainage and Wastewater.

Possible future changes to Levels of Service

There are no future changes to levels of service anticipated or known for the Stormwater activity.

Future Directions

Future subdivision Future subdivision developments by external developers may require stormwater works which would be the only new major capital works the Council may be required to implement over the coming 10 years. If a subdivision is carried out, funding for the development of the stormwater assets will form part of resource consent negotiations between the Council and the developer.

Stormwater treatment It is probable that there may be future requirements to improve the quality of stormwater

discharges to natural waterways, particularly as a result of the Government’s Freshwater Management National Policy Statement and implementation measures arising from this. Any changes required will probably be set through the Waikato Regional Policy Statement and Regional Plan. Currently, treatment of stormwater discharges is limited to sediment trapping in road catchpits, and some swale drains. The Council also operates a number of detention ponds which attenuate peak flows and trap sediments. Additional stormwater treatment measures will likely be costly to install and maintain. Education will be a key component of improving stormwater quality.

Criterion pump There is the possibility of a future upgrade to the Criterion stormwater pump in Paeroa, and a probable hand over of the asset to Waikato Regional Council.

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Design standards Future reviews of the Council’s climate change policy could result in changes to the design elements for this activity.

Catchment Co-governance The current Treaty of Waitangi Settlement negotiations between the Crown and the Hauraki Collective include negotiations for the establishment of a Joint Co-governance entity that will have an oversight and policy setting role in resource management matters for the Waihou, Piako and Coromandel catchments. This body will contain representatives from Hauraki and upper catchment iwi, the Regional Council and the territorial authorities covering these catchments. At this time the final role of this entity is not known but once finalised, it will have an input to the policy framework that this activity works within.

Programmed actions for 2015-25

The former Franklin District Council levied a Uniform Annual Charge (UAC) on all properties in its district to fund the stormwater activity on a District-wide basis. This rate remained in place when Hauraki District Council took over the Kaiaua area as part of the Auckland Council reorganisation in 2010. This flat rate is not consistent with the Council’s approach to rating for stormwater, which is to levy a stormwater rate on properties within each urban area on a land value basis.

The rate was also levied on the Taramaire Drainage District, in addition to the targeted rate that applied there. It is inconsistent to levy a stormwater rate on land within an established land drainage district, on upper catchment land which clearly receives no flood protection benefit, and on land that has privately owned drainage and flood protection assets.

The stormwater activity in the Kaiaua area is limited to some piped reticulation and open drains in the urban areas and has a minor flood protection component (floodgate flaps). This is now included in the stormwater activity. Council will rate the stormwater and flood protection activity on a land value basis on properties that receive benefit from these activities.

Over the 10 year period, the Council has planned $1.15million of capital expenditure for the stormwater activity to retain current levels of service.

The breakdown of the capital projects is detailed below.

Total cost over Type of Capital Project Year(s) 10 year period Expenditure Ngatea upgrades 2016/17, 2018/19, $93,000 Level of service 2020/21, 2022/23, 2024/25 Ngatea renewals 2015/16 – 2024/25 $75,000 Renewal Kerepehi upgrades 2015/16 – 2016/17 $25,000 Level of service Kerepehi renewals 2015/16 – 2024/25 $38,000 Renewal Turua upgrades 2015/16 – 2016/17 $38,000 Level of service Turua renewals 2015/16 – 2024/25 $38,000 Renewal Paeroa upgrades 2015/16, 2017/18, $267,000 Level of service 2019/20, 2021/22, 2023/24 Paeroa renewals 2015/16 – 2024/25 $101,000 Renewal Waihi upgrades 2016/17, 2018/19, $280,000 Level of service 2020/21, 2022/23, 2024/25

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Total cost over Type of Capital Project Year(s) 10 year period Expenditure Waihi renewals 2015/16 – 2024/25 $101,000 Renewal Whiritoa renewals 2016/17 – 2024/25 $11,000 Renewal Kaiaua Hauarahi Stream upgrades 2015/16 $10,000 Level of service Kaiaua Floodgates upgrades 2015/16 – 2017/18 $62,000 Level of service Kaiaua renewals 2016/17 – 2024/25 $11,000 Renewal

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available in Volume 2 of this document.

What are the costs of operating the Stormwater activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Vegetation Control 14 13 13 14 15 15 16 17 17 18 19 Reticulation 43 34 35 36 38 40 41 43 45 48 50 Maintenance/Fencing/Culverts 14 14 14 15 15 16 17 18 18 19 20 Mechanical Cleaning 23 13 13 14 14 15 16 16 17 18 19 Floodgates 5 5 5 5 6 6 6 6 7 7 7 Pumps 12 10 11 11 11 12 12 13 14 14 15 Overheads 143 169 172 176 180 184 188 193 198 203 209 Other 144 165 170 175 180 185 191 198 205 213 221 Depreciation/Assets written off 470 412 414 442 443 444 482 483 484 532 533 Interest (1) (19) (36) (55) (78) (104) (134) (166) (201) (239) (279) 867 816 811 833 824 813 835 821 804 833 814

REVENUE Fees, Charges and Other Income 213 213 213 213 213 213 213 213 213 213 213 External Subsidies ------Targeted Rates 801 709 733 755 779 803 828 854 881 909 937 General Rates 141 125 129 133 137 142 146 151 155 160 165 1,155 1,047 1,075 1,101 1,129 1,158 1,187 1,218 1,249 1,282 1,315

OPERATING SURPLUS/(DEFICIT) 288 231 264 268 305 345 352 397 445 449 501

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Funding Impact Statement for 2015-25 for the Stormwater activity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 141 125 129 133 137 142 146 151 155 160 165 Targeted rates 801 709 733 755 779 803 828 854 881 909 937 Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts ------Total Operating Funding (A) 942 834 862 888 916 945 974 1,005 1,036 1,069 1,102

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 253 254 261 270 280 289 299 311 323 336 351 Finance Costs ------Internal charges and overheads applied 144 150 136 121 101 80 54 27 (3) (35) (70) Other operating funding applications ------Total Applications of Operating Funding (B) 397 404 397 391 381 369 353 338 320 301 281

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 545 430 465 497 535 576 621 667 716 768 821

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase (decrease) in debt - (307) (333) (404) (439) (489) (511) (567) (585) (646) (667) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) - (307) (333) (404) (439) (489) (511) (567) (585) (646) (667)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service 180 108 111 69 66 52 73 58 81 65 90 - to replace existing assets 64 15 21 24 30 35 37 42 50 57 64 Increase (decrease) in reserves 301 ------Increase (decrease) of investments ------Total Applications of Capital Funding (D) 545 123 132 93 96 87 110 100 131 122 154

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (545) (430) (465) (497) (535) (576) (621) (667) (716) (768) (821)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) 288 231 264 268 305 345 352 397 445 449 501

Depreciation/Assets written off 470 412 414 442 443 444 482 483 484 532 533 Subsidies and grants for capital expenditure ------Development and financial contributions ------Vested Asset Income (213) (213) (213) (213) (213) (213) (213) (213) (213) (213) (213) SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 545 430 465 497 535 576 621 667 716 768 821

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Solid Waste

What is the Solid Waste activity and why is the Council involved?

The collection, minimisation and disposal of solid waste is a core service of Hauraki District Council.

The Solid Waste activity consists of four parts: solid waste collection, minimisation and recycling, education and landfill aftercare. These parts involve the following services:

 Solid waste collection is the kerbside collection of refuse and recyclables and the management of the District’s two transfer stations, located in Paeroa and Waihi.  Solid waste minimisation encompasses efforts made District-wide to reduce the volume of waste to landfill. The aim is to reduce the environmental impact of waste, and to comply with legislative requirements.  The Council runs and supports education initiatives promoting the benefits of waste minimisation and recycling.  Landfill aftercare comprises site monitoring, and implementation of the post closure requirements of the relevant resource consents for landfills.

Solid Waste services are focussed on protecting community health and safety and the environment from the effects of solid waste generated by the community. In the context of solid waste, tidiness promotes and preserves a healthy and pleasant environment for the community and minimises the impact on the natural environment. Good solid waste management also prevents an increase in vermin population and associated diseases.

How does the Council deliver the Solid Waste activity?

The Council has arrangements in place for solid waste collection, solid waste minimisation and landfill aftercare services.

Weekly kerbside refuse collections serve the communities of Ngatea, Kaiaua, Karangahake, Kerepehi, Paeroa, Turua, Waihi, Waikino, Waitakaruru and Whiritoa. This is supported by a fortnightly kerbside collection service for recyclables. Both of these services are currently provided under contract by Smart Environmental Limited. At present most rural areas are not served by the Council’s kerbside refuse collection and recycling schemes, however similar services for rural areas are available from private operators.

The Council owns two refuse transfer stations - located at Grey Street, Paeroa and Dean Crescent, Waihi - where residents can drop off refuse and recyclables. The transfer stations are currently operated under contract with Smart Environmental Limited. Refuse that cannot be recycled is transferred to the privately owned and operated landfill at Tirohia. Recycling is encouraged, with collection points for recyclable waste provided at each transfer station at no charge.

Aftercare for closed landfills involves managing and monitoring the closed landfill sites in compliance with appropriate legislation and resource consent conditions. The Council manages five closed landfill sites situated at Waihi (Bulltown Road), Paeroa (Puke Road), Ngatea (Kaihere Road), Waitakaruru (State Highway 2 near Steens Road), and at Kaiaua (East Coast Road).

The Council meets its statutory obligations under the Waste Minimisation Act, 2008 through the Joint Waste Management and Minimisation Plan (in conjunction with Matamata-Piako and Thames- Coromandel District Councils) which was adopted in 2012.

The Solid Waste services are funded through user charges, general rates and targeted rates.

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Key legislative drivers

 Waste Minimisation Act, 2008  Climate Change (Emissions Trading) Amendment Act, 2009 (Emissions Trading Scheme)  Resource Management Act,1991  Local Government Act (LGA), 2002 and LGA, 1974 (and LGA Amendment Act (No 4) 1996)  Hazardous Substances and New Organisms Act, 1996  Health Act, 1956  Litter Act, 1979

Relevant Policies, Plans and Strategies

 Solid Waste Activity Plan  Hauraki District Plan  Operative Regional Policy Statement and Regional Plan  Proposed Regional Policy Statement  Hauraki District Council Consolidated Bylaw  Development Contributions Policy  Joint Waste Management and Minimisation Plan (for Hauraki, Thames-Coromandel, and Matamata- Piako District Councils)  Joint Waste Assessment (for Hauraki, Thames-Coromandel, and Matamata-Piako District Councils)  Infrastructure Strategy  Hauraki District Council Financial Strategy 2015-25

Demand Management

The demand management objective for the Solid Waste activity is to reduce the volume of residual waste that is disposed at a landfill.

Based on the relatively high level of community satisfaction and the static population growth forecast, significant community pressure for change is not expected, other than extending the areas for collection and recycling where practical, and to continue to reduce the volume of waste to landfill. The target of reducing the volume of waste to landfill should be achievable, with the aid of:

 further education campaigns  waste minimisation policies  new viable initiatives from the Solid Waste Contractor.

What are the significant negative effects on the local community?

 There are potential negative effects on the environment as waste is deposited to landfills. The landfill used by the Council is fully consented and must meet the environmental standards that are set out in those consents.  The cost of compliance with regulations relating to solid waste may negatively impact the community via higher rates and user charges.  There can be conflict between the use of the natural environment for solid waste disposal and cultural values.  Regardless of educational campaigns, littering still occurs which negatively impacts the receiving environment and the perception of our District by visitors.  Long term monitoring and control is required for closed landfills and this has ongoing cost implications.  Not all materials are economic to recycle, depending on the current market situations and whether or not the product is in demand. This can impact on whether or not it is economic to provide the recycling service for any particular waste stream.

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Collaborative Projects Waste Management and Minimisation Plan 2012 The Council is required to produce a Waste Management and Minimisation Plan (WMMP) under the Waste Minimisation Act, 2008. The WMMP identifies how solid waste is currently managed in the District, defines the Council’s role regarding solid waste management, and its future intentions for solid waste management. The Waste Minimisation Act, 2008 required a WMMP to be completed and adopted by 30 June 2012.

The Waste Minimisation Act, 2008 provides for Councils to prepare and adopt a joint WMMP. Hauraki District Council, in conjunction with Matamata-Piako and Thames-Coromandel District Councils, developed a joint WMMP which was adopted by the three Councils in February 2012. A joint approach results in benefits such as being able to share costs and having consistent standards and services across the three Districts. The three Councils also agreed to look into the benefits of a shared solid waste services contract which has since been implemented.

Joint procurement for solid waste The Council, with its neighbours Thames-Coromandel and Matamata-Piako District Councils, developed a contract for the joint provision of solid waste services for the three districts. The contract came into effect in October 2013 and covers all three districts, involving:

 refuse and recycling collection  disposal of residual waste (waste that cannot readily be recycled)  operation of all transfer stations.

Variations between the Council’s Waste Management and Minimisation Plan and the 2015-25 Hauraki Long Term Plan The Council is required, under schedule 10 (clause 6) of the Local Government Act, 2002, to identify any variations between its current Waste Management and Minimisation Plan and the

2015-25 Hauraki Long Term Plan.

At this stage there are no significant variations between the Joint Waste Management and Minimisation Plan, and the programmes indentified in the 2015-25 Hauraki Long Term Plan for Solid Waste. Any variations that may arise after the adoption of the 2015-25 Hauraki Long Term Plan will be identified in the Council’s subsequent Annual or Long Term Plans.

Levels of Service and how Council measures them

Community Method of Baseline Levels of Service Target 2015-25 Outcome Measurement (2013/14) Collection systems and waste processing facilities are convenient and accessible. Measure: Annual customer 2014: 86% of 2015-25: Equal to or Percentage of users satisfied satisfaction users satisfied greater than 85% of users with the kerbside collection survey satisfied. service. Measure: Transfer station All transfer 2015-25: 100% open every A transfer station will be open in daily record stations were day (except public the District every day except for summary open on holidays) public holidays. scheduled days (2014/15)

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Community Method of Baseline Levels of Service Target 2015-25 Outcome Measurement (2013/14) Solid Waste services meet regulatory requirements. Measure: Number of New measure 2015-25: The Solid Waste service is abatement  No abatement operated in compliance with notices and notices or legal requirements. enforcement enforcement notices notices received received.

Adverse effects of waste on the environment are minimised. Measure: Quarterly reports New measure 2015-25: >55% of waste Percentage of waste diverted from contractor diverted from landfill from landfill by recycling or composting within Council provided waste services.

Reliable sold waste collection is provided. Measure: Service request All collections 2015-25: <30 complaints Number of days that collection database were completed (that collection not is not completed on the on scheduled completed) per 1000 scheduled day for each days customers per annum collection area that resulted in complaints.

Timely response to customer requests. Measure: Service request New measure 2015-25: Customer requests are database  Missed collections: responded to within target 100% timeframes:  Illegal dumping: 100%  Complaints about missed  Recycle bins: 100% collections (responding  Routine request: 85% phone call by end of day following complaint)  Illegal dumping is cleaned up (within 3 working days)  Recycle bins provided (delivered in time to miss no more than 1 collection day)  Routine customer requests (call back <3 working days)

Changes to Levels of Service

There are no changes to levels of service between the 2012-22 Hauraki Long Term Plan and this 2015- 25 Hauraki Long Term Plan.

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Possible future changes to Levels of Service

This Hauraki Long Term Plan includes levels of service which reflect community needs and expectations for the service for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible future changes to levels of service.

Level of Service Possible changes to Level of Service

Collection systems and No changes to the levels of service for solid waste are expected over the 10 year waste processing facilities term of this Plan. The Joint Waste Management and Minimisation Plan is, are convenient and however, due for review in 2018, and consultation carried out at that time may see accessible. demand for additional services.

Solid waste services meet No changes are expected in relation to regulatory requirements. The large closed regulatory requirements. landfills at Paeroa and Waihi are fully consented and monitored as required by those consents. Consents will be sought for Kaihere landfill during the term of this Plan and remedial works identified will be carried out. No consents are required for the Waitakaruru or Kaiaua Landfills. Both of these sites will be monitored under management plans. The Council no longer carries out any refuse landfill activity. Adverse effects of waste on New initiatives over the term of this Plan, as detailed in the Joint Waste the environment are Management and Minimisation Plan, may be developed and implemented to minimised. further reduce the adverse effects of waste on the environment. For example, if the collection and composting of food waste proves to be viable, a scheme for this may be developed.

Reliable solid waste No changes to the levels of service for solid waste collection are expected over collection is provided. the three year term of this Plan as the joint refuse collection and recycling contracts, which detail the levels of service for this, extend beyond the term of this Plan. Any new contract may result in changes to the levels of service and these would be reported in the next Hauraki Long Term Plan.

Future Directions

The current contract for kerbside refuse and recyclable collection and transfer station operation with Smart Environmental Limited provides for delivery of the stipulated levels of service until 2022. During the term of the contract, and further into the future, there are likely to be initiatives to recycle a greater proportion of the waste stream and reduce the volume disposed to landfill.

The refuse bag system may be superseded by a less labour intensive methodology, perhaps based on the use of bins similar to those currently used for recycling.

Economics may dictate a lower frequency of collection.

Programmed actions for 2015-25 Paper for Trees The Paper for Trees programme will be ongoing in District schools and preschools for the 2015-25 period. The purpose of this programme is to encourage schools to recycle paper. Schools that participate are rewarded with a tree for planting once they reach a certain amount of recycled paper. This initiative has been operating since 2009/10.

Waste minimisation The current Waste Minimisation and Management Plan was adopted in 2012. This will be reviewed in 2018 following a further waste assessment in 2017.

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Enviroschools / Zero Waste Education programme The Council will continue to fund two education programmes for the District’s schools. The Enviroschools programme is a ‘whole school’ approach to learning where students plan, design and create a sustainable school with the guidance of a facilitator.

The Zero Waste Education programme is carried out using external teachers to educate children about sustainability. Each unit consists of four 45 minute lessons (except for year one and two, which have two 45 minute sessions) with a different unit taught each year for the six years of primary and intermediate school. The aim is to develop lifelong waste awareness and responsibility in children which will result in reduced waste volumes in the future.

Currently 50% of the District’s schools are participating in Enviroschools and 50% of schools are involved in the Zero Waste Education programme.

Landfill remediation The Council will be seeking consents and undertaking works to remediate the closed landfills at Kaiaua and Kaihere, which will prevent any risk to the surrounding environment. This work is scheduled to take place during the first three years of the Plan.

Capital Works - Schedule There are no programmed capital works signalled for the Solid Waste activity for the 2015-25 period.

What are the costs of operating the Solid Waste activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Refuse Collection 162 218 220 221 232 244 256 258 259 282 282 Closed Tip Sites 87 332 76 394 118 83 85 88 90 93 97 Transfer Stations 230 228 232 240 245 250 260 266 272 288 291 Other 67 71 73 85 92 94 80 105 108 99 108 546 849 601 940 687 671 681 717 729 762 778

REVENUE Fees, Charges and Other Income 71 72 73 75 77 80 82 85 87 90 94 External Subsidies 56 56 57 59 60 62 64 66 68 71 73 Targeted Rates 169 174 180 185 191 196 202 208 215 221 228 General Rates 185 473 242 556 327 298 287 324 336 322 347 481 775 552 875 655 636 635 683 706 704 742

OPERATING SURPLUS/(DEFICIT) (65) (74) (49) (65) (32) (35) (46) (34) (23) (58) (36)

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Funding Impact Statement for 2015-25 for the Solid Waste activity

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 185 473 242 556 327 298 287 324 336 322 347 Targeted rates 169 174 180 185 191 196 202 208 215 221 228 Subsidies and grants for operating purposes 56 56 57 59 60 62 64 66 68 71 73 Fees and charges - 72 73 75 77 80 82 85 87 90 94 Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts 71 ------Total Operating Funding (A) 481 775 552 875 655 636 635 683 706 704 742

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 321 640 392 728 472 452 455 487 494 494 517 Finance Costs ------Internal charges and overheads applied 174 159 159 158 161 165 169 173 178 207 200 Other operating funding applications ------Total Applications of Operating Funding (B) 495 799 551 886 633 617 624 660 672 701 717

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) (14) (24) 1 (11) 22 19 11 23 34 3 25

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase (decrease) in debt - 1 (4) (9) (6) (2) 3 (3) (10) 4 (4) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) - 1 (4) (9) (6) (2) 3 (3) (10) 4 (4)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service ------to replace existing assets ------Increase (decrease) in reserves (14) (23) (3) (20) 16 17 14 20 24 7 21 Increase (decrease) of investments ------Total Applications of Capital Funding (D) (14) (23) (3) (20) 16 17 14 20 24 7 21

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) 14 24 (1) 11 (22) (19) (11) (23) (34) (3) (25)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) (65) (74) (49) (65) (32) (35) (46) (34) (23) (58) (36)

Depreciation/Assets written off 51 50 50 54 54 54 57 57 57 61 61 Subsidies and grants for capital expenditure ------Development and financial contributions ------Vested Asset Income ------SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) (14) (24) 1 (11) 22 19 11 23 34 3 25

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Community Services

What is the Community Services group and why is the Council involved?

Community Services involves the provision of services that contribute to the social and cultural needs of the community, to aid the public in improving their general quality of life. The community accepts that the provision of these services is a discretionary cost that it predominantly pays for through rates. It is the Council’s role to ensure that these services are provided in the most efficient, effective and appropriate manner to businesses and communities alike.

What activities are involved in Community Services? Community Recreation The Community Recreation activity provides opportunities for active recreation, passive recreation, aquatic recreation and public access to learning opportunities. The activity encourages residents to have involvement in their community through sports and leisure and encourages the physical and mental well- being of both residents and visitors. There is a community expectation that the Council will provide these facilities. The Council also undertakes Community Recreation as part of its contribution to the Lifestyle Hauraki Community Outcome of ‘We provide an environment that encourages vibrant communities and an enhanced quality of life’.

Community Recreation  Libraries  Swimming Pools  Waihi Events Centre  Sports Fields and Recreation Reserves  District Sports Coordinator

Community Facilities The Community Facilities activity provides facilities to meet public health needs (public toilets, cemeteries), social and cultural needs (public halls, pensioner housing) and amenity needs (non- recreation reserves). Generally these are provided in response to community requirements, and the Council works with its communities to determine the levels of service for these. However in some cases, such as cemeteries, there are legislative requirements that are also required to be met.

Community Facilities  Halls  Pensioner Housing  Public Toilets  Cemeteries  Non-Recreation Reserves

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Relevant Policies, Plans and Strategies

 Asset Management Plans - Facilities Asset management Plan - Recreation Asset management Plan - Property Asset management Plan  Hauraki Libraries Strategic Plan incorporating the Libraries Activity Management Plan  Rental and Lending Policy (Libraries)  Cemeteries Policies and Procedures 2013  Collection Management Policy (Libraries)  Hauraki/Thames-Coromandel Physical Activity Strategy and Facilities Plan  Hauraki District Reserves Management Plan  Assessment of Water and Sanitary Services  Development Contributions Policy  Hauraki District Consolidated Bylaw  Hauraki District Council Public Toilet Strategy  Hauraki District Council Health and Safety Policies  Hauraki District Council Financial Strategy 2015-25  Hauraki District Plan.

What are the significant negative effects on the local community?

All Community Services activities  Location and design of community facilities can attract anti-social behaviour (such as vandalism, graffiti and bullying).  Littering and rubbish can be left at facilities.  Reserves can become deposit sites for unwanted animals such as poultry or cats.  There can be a high energy cost associated with some facilities.

Community Recreation  Swimming pools have high per capita costs to supply and operate facilities.  Parks may become restricted in their availability during extreme weather (drought or excessive rainfall).  Parks may be under or over used due to their location and distribution.

Community Facilities  Layout and location of pensioner housing may not be suitable for future trends.  Cemeteries may become restricted in their use or unattractive if they are not adequately managed during extreme weather conditions (such as drought or on-going rain).  Facilities may be under or over used due to their location and distribution.

What are the costs of operating the Community Services group?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Recreation 3,706 3,826 3,953 4,097 4,177 4,213 4,354 4,451 4,551 4,759 4,845 Community Facilities 1,613 1,721 1,759 1,822 1,834 1,866 1,897 1,902 1,919 2,129 1,979 5,319 5,547 5,712 5,919 6,011 6,079 6,251 6,353 6,470 6,888 6,824

REVENUE Fees, Charges and Other Income 592 561 574 590 624 641 660 701 724 748 796 External Subsidies 3 3 3 3 3 3 3 3 3 3 3 Targeted Rates 1,756 1,829 1,866 1,914 1,962 1,992 2,032 2,066 2,103 2,130 2,166 General Rates 2,608 2,917 3,075 3,169 3,412 3,497 3,549 3,676 3,788 3,941 3,956 4,959 5,310 5,518 5,676 6,001 6,133 6,244 6,446 6,618 6,822 6,921

OPERATING SURPLUS/(DEFICIT) (360) (237) (194) (243) (10) 54 (7) 93 148 (66) 97

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Funding Impact Statement for 2015-25 for the Community Services group

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 2,608 2,917 3,075 3,169 3,412 3,497 3,549 3,676 3,788 3,941 3,956 Targeted rates 1,756 1,829 1,866 1,914 1,962 1,992 2,032 2,066 2,103 2,130 2,166 Subsidies and grants for operating purposes 3 3 3 3 3 3 3 3 3 3 3 Fees and charges - 561 574 590 624 641 660 701 724 748 796 Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts 525 ------Total Operating Funding (A) 4,892 5,310 5,518 5,676 6,001 6,133 6,244 6,446 6,618 6,822 6,921

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 3,072 3,307 3,432 3,544 3,611 3,659 3,734 3,846 3,947 4,273 4,215 Finance Costs 309 287 282 302 319 304 287 264 238 212 186 Internal charges and overheads applied 1,105 1,216 1,253 1,283 1,287 1,317 1,374 1,381 1,417 1,481 1,494 Other operating funding applications ------Total Applications of Operating Funding (B) 4,486 4,810 4,967 5,129 5,217 5,280 5,395 5,491 5,602 5,966 5,895

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 406 500 551 547 784 853 849 955 1,016 856 1,026

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions 68 ------Increase (decrease) in debt 1,683 (156) 338 224 (328) (405) (460) (483) (480) (455) (483) Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) 1,751 (156) 338 224 (328) (405) (460) (483) (480) (455) (483)

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand 6 ------to improve the level of service 2,046 534 1,122 1,094 394 163 271 166 172 179 181 - to replace existing assets 465 151 141 170 81 140 87 81 148 185 437 Increase (decrease) in reserves (360) (341) (374) (493) (19) 145 31 225 216 37 (75) Increase (decrease) of investments ------Total Applications of Capital Funding (D) 2,157 344 889 771 456 448 389 472 536 401 543

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) (406) (500) (551) (547) (784) (853) (849) (955) (1,016) (856) (1,026)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) (360) (237) (194) (243) (10) 54 (7) 93 148 (66) 97

Depreciation/Assets written off 834 737 745 790 794 799 856 862 868 922 929 Subsidies and grants for capital expenditure ------Development and financial contributions (68) ------Vested Asset Income ------SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) 406 500 551 547 784 853 849 955 1,016 856 1,026

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Community Recreation

What is the Community Recreation activity?

The Community Recreation activity addresses the recreational, sporting and educational needs of the community. It includes:

 libraries  swimming pools  Waihi Events centre  sports fields and recreational reserves  District Sports Coordinator.

How does the Council deliver the Community Recreation activity? Libraries The Council provides its library service through the provision of public libraries at Ngatea, Paeroa and Waihi. The Council also assists volunteer-operated community libraries at Turua, Whiritoa and Kaiaua, by way of annual grants and regular bulk loans of books. Library operating hours are available online at http://library.hauraki-dc.govt.nz or by calling the Library or Council offices.

The Council’s three main libraries have a total collection of approximately 50,000 items, including: fiction, non-fiction, children’s, reference, large print, audio books, magazines and DVDs. Online resources include audio and eBooks and access to a wide range of reference databases. The collection is replenished at a rate of up to approximately 6,000 items per year to ensure stocks remain current. In addition, the Council libraries provide free internet access, which is proving to be a valuable service in high demand.

The libraries and their staff provide a wide range of services to the District communities. These services include:

 management of the collections – from purchase to disposal of materials  management of reading and lending services  providing research and information services  coordination of information and education programmes  helping the community with finding and using community and library resources  free internet usage for the community through the Hauraki District Council Libraries’ membership of the Aotearoa Peoples Network Kaharoa (APNK).

Swimming Pools The Council owns and/or operates three community pools located in Ngatea, Paeroa and Waihi. All of the pools are heated to a temperature of 27 degrees celsius. The Council employs lifeguards, along with a supervisor, to oversee the day to day operation of the pools.

Waihi Events Centre The Waihi Events Centre caters predominantly for indoor sporting use (e.g. in-line hockey, basketball, aerobics, netball). However the facility is also available for non-recreational community users provided the use is compatible with the facility, and damage to the specialised sprung wooden sports floor is avoided.

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Sports Fields and Recreational Reserves The Council provides, maintains and administers sports fields and recreational reserves to cater for the recreational, sporting, leisure and cultural needs of the District communities.

Sports fields are defined as facilities in the Hauraki District which are principally used for the pursuit of organised sport including rugby fields, touch rugby fields, artificial surface hockey field, netball courts, soccer fields, tennis courts, athletic tracks, lawn bowls greens, cricket pitches, croquet greens, skateboard ramps and a petanque court.

Within the fields and reserves the Council is responsible for various assets such as park furniture, structures, play grounds, buildings, specialised turf, amenity plantings, trees and walkways.

Sports fields are provided at the following venues:

 Centennial Park/Brenan Field, Paeroa  Hugh Haywood Domain, Ngatea  Morgan Park, Waihi  Paeroa Domain, Paeroa  Whiritoa Sport and Recreation Reserves, Whiritoa  Rotokohu Soccer Fields, Paeroa.

Recreational reserves are provided at a number of venues including:

Paeroa Ward Plains Ward Waihi Ward Merv Parker Recreation Reserve Dave Dudding Reserve Banks Street Reserve Brenan Field Recreation Reserve Harris Place Reserve Gilmour Reserve Centennial Park Reserve Hugh Hayward Domain Isobel Franklin Reserve Cornes Paddock Kaihere Recreation Reserve Morgan Park Edwards Place Recreation Reserve Kerepehi Recreation Reserve Ngatikoi Recreation Reserve Rawhitiroa Reserve Kerepehi Children’s Playground Savage Road Recreation Reserve Karangahake Recreation Reserve Mangatarata Reserve Tauranga Road Recreation Reserve Kinsella Place Recreation Reserve Patetonga Recreation Reserve Victoria Park (Rocket Park) Mackaytown Recreation Reserve Tilbury Reserve Waihi South Reserve Netherton Recreation Reserve Turua Recreation Reserve Waikino Recreation Reserve Primrose Hill Recreation Reserve Turua War Memorial Hall Waitawheta Camp Reserve Recreation Reserve Railway Reserve Waitakaruru Domain Whiritoa Recreation Reserves Shaw Avenue Recreation Reserve Waitakaruru Recreation Reserve Moa Hunter Recreation Reserve Shoalhaven Street Recreation Moray Place Recreation Reserve Reserve Taniwha Street Reserve Whiritoa Beach Recreation Reserve Taylors Hill Reserve Pohutukawa Recreation Reserve Washington Square Recreation Ramarama Recreation Reserve Reserve Whiritoa Beach Recreation Reserve Whiritoa Highway Recreation Reserve Whiritoa Sports Recreation Reserve

Play equipment for children is provided in some parks and reserves, which is maintained to a standard to meet health and safety requirements.

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The majority of reserves are funded by the Wards in which they are situated, however reserves classified as ‘travellers reserves’ are funded by the District as they benefit the Hauraki District as a whole. These include:

 Dell Reserve, Paeroa  Karangahake Reserve, Paeroa  Ohinemuri Park, Paeroa  Puke Road Boat Ramp Reserve, Paeroa  Parry Palm Avenue, Waihi.

In addition to the provision of recreational reserves the Council also provides trees and garden areas along urban streets, and provides town entrance ways. The Council also owns two jetties/boat ramps on the Waihou River which are available for community use: in Turua (off Waihou Street) and in Paeroa (Puke Bridge).

District Sports Coordinator The Council funds and provides office space for a District Sports Coordinator from Sport Waikato.

The Coordinator’s role is to foster the participation of residents in sports, recreation and leisure, both in competitive (organised) sport, and through active living (everyday activities). The Coordinator provides advice to schools, clubs and organisations and works with a diverse range of community groups.

Key legislative drivers

Legislation and standards relevant to Community Recreation include:

 Copyright Act, 1994  Films, Videos, and Publications Classification Act, 1993  Building Act, 2004  Health Act, 1956  Trespass Act, 1980  Health and Safety in Employment Act, 1992  Local Government Act, 2002  Reserves Act, 1977  Resource Management Act, 1991  Heritage New Zealand Pouhere Taonga Act, 2014  Freedom Camping Act, 2011  Sale and Supply of Alcohol Act, 2012  Dog Control Act, 1996.

Demand Management

One of the Council’s underlying assumptions for the 2015-25 Hauraki Long Term Plan is that the District population will remain static, i.e. experience no growth to its population over the next 10 years. In addition, the District will experience the effects of an ageing population, resulting in smaller household sizes. The possible implications for demand for recreational facilities could include there being less demand for the provision of facilities such as playgrounds and sports fields, and more desire for facilities, reserves etc that are appropriate for a wide variety of ages.

The Council has given consideration to the demands placed on the Kaiaua community as a visitor destination, in particular increased demands on Ray’s Rest and the Boat Ramp reserve area during the holiday season. The Council intends to produce a Reserve Management Plan for all Kaiaua reserves to provide the Council with guidance as to the future development and management of these areas.

The Council intends to undertake a full review of its existing Hauraki District Reserve Management Plan 2007. This will be undertaken in 2016/17.

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Levels of Service and how the Council will measure them Libraries

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Library services are provided in a customer focused and effective way to support the

recreational and educational needs of the community. Measure: Customer 2014: 96% of 2015-25: >95% of customers Percentage of library users satisfaction customers satisfied satisfied with library survey. satisfied services. Libraries attract a wide audience. Measure: Library 49% of District 2015-25: >49% of District The number of library Management population were population are members members is increasing. System members Measure: Library New measure 2015-25: >140,000 electronic The number of electronic Management and hard-copy books issued and hard-copy books issued. System and per annum Electronic Database

Swimming Pools

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Council operated swimming pool facilities are safe for users and staff. Measure: Monthly reports No accidents 2015-25: No accidents per Number of accidents each prepared by Pool per operating operating season per pool year at Council operated Supervisor and season per pool swimming pools as a result Service Request of poor design or Database maintenance.

Measure: Customer 2014: 88% of 2015-25: >90% of customers Percentage of pool users satisfaction customers satisfied satisfied with the operation survey satisfied of Council swimming pools.

Sports Fields and Recreational Reserves

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) The Council will provide sports fields that meet the requirements of its users.

Measure: Service Request New 2015-25: <6 recorded complaints Number of justified Database measure per year complaints regarding sports fields playing surface condition. Safe playground facilities are provided. Measure: Playground audit 100% of 2015-25: Playground inspections Playground facilities are reports inspections are: regularly inspected to completed by undertaken.  weekly in primary school ensure they are safe and Construction & holiday periods compliant with playground Maintenance  fortnightly in high use sites safety standards. (C&M) staff  monthly in low use sites.

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Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Park facilities that are provided meet community expectation. Measure: Customer 2014: 89% 2015-25: >90% of customers Percentage of users satisfaction of customers satisfied satisfied with services and survey satisfied facilities provided at the Districts Parks and Reserves.

Sports Initiatives

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14)

Foster the participation of residents in sports, recreation and leisure.

Measure: Sports 18 sessions 2015-25: At least 15 sporting club Extent of Sport Waikato Coordinator’s 6 (2013/14) training/advisory sessions per involvement in the monthly report annum coordination of training/ advisory sessions for sporting clubs within the District.

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

Libraries attract a wide A new performance measure has been added that aims for greater than 140,000 audience. electronic and hard-copy books be issued per annum. This will reflect the issuing of both hard copy and electronic reading material. The Council will provide The Council has revised its annual target for the number of complaints regarding sports fields that meet sports fields playing surface condition per year, from less than nine to less than six. the requirements of its This reflects the Council’s improvements to its work programme that will address users. known issues with playing surfaces. Safe playground facilities A revised performance measure has been added that playground inspections are: are provided.  weekly in primary school holiday periods  fortnightly in high use sites  monthly in low use sites. For the 2012-22 period, the measure had been monthly inspections. This change will mean a higher level of playground safety standards can be achieved. Foster the participation The performance measure reflecting Sport Waikato’s involvement in training and of residents in sports, advisory sessions for sporting clubs within the District has changed from 12 in the recreation and leisure. 2012-22 period, to at least 15 sporting club training/advisory sessions per annum. This reflects the Council’s desire to see an increased level of engagement with local sports clubs.

Possible future changes to Levels of Service

There are no possible future changes to Levels of Service anticipated at this time.

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Collaborative Projects Community Services Partnerships The Council has a variety of partnership arrangements with a number of sporting and recreational clubs and government organisations.

All relate to the management of activities on domains and/or reserves and include providing financial assistance, making land available for club rooms, mowing and marking sports fields and managing growth based on the demand for activities.

The partnerships are as follows:

 Sporting Clubs – The Council has agreements with many sporting clubs: rugby, rugby league, touch rugby, hockey, soccer, athletics, netball, tennis, croquet, equestrian and lawn bowls. Many of these clubs have their own clubrooms on Council land for which they pay a minimal annual fee (if any).  Karangahake Reserve (car park area) – The Council has established a partnership with the Department of Conservation and the New Zealand Transport Agency to focus on the effects of the increasing popularity of the Karangahake Reserve, especially with the Hauraki Rail Trail cycleway that passes through the area. The Department of Conservation network of walkways and huts in the conservation area is attracting larger numbers of visitors each year, putting further pressure on roads, access and entry areas, car parking, toilets and solid waste facilities.  New Zealand Police – New Zealand Police is the lead agency responsible for reducing crime and enhancing community safety. They assist the Council in ensuring community recreation areas are safe.  Department of Corrections – The Council works with the Department of Corrections, on a case by case basis, by providing tasks on reserves for Community Probation Service workers to undertake.  Various service clubs – For one-off minor projects the Council assists from time to time in joint ventures. The Council may provide funding and the community service clubs generally provide the labour.  Waihi Walkways – A partnership exists between the Council and Waihi Walkways to provide a network of walking tracks in and around Waihi for community recreation and well-being.  Hauraki Rail Trail Charitable Trust – The lease from KiwiRail of the old KiwiRail corridor from Thames to Paeroa, and Paeroa to Te Aroha, is held by the Council. The section of the Hauraki Rail Trail from Paeroa to Waihi through Department of Conservation land has a concession agreement between the Department of Conservation and the Council. The Hauraki Rail Trail is administered by the Hauraki Rail Trail Charitable Trust and has a funding underwriting agreement with Thames-Coromandel District Council, Hauraki District Council and Matamata-Piako District Council.  Whiritoa Beach Care – The Council assists in the coordination of a community initiative, in partnership with the community and Waikato Regional Council, to help prevent erosion of the foreshore sand dunes at Whiritoa Beach by controlling access and through re-vegetation of the dunes.

Libraries Through its Library activity, the Council provides outside services to a number of agencies and smaller community-based libraries in Kaiaua, Turua and Whiritoa to provide an increased level of service to their members.

Initiatives are regularly undertaken with local schools, both during school terms, and through the promotion of programmes (such as reading programmes) at the libraries during school holidays.

General collaboration takes place with other libraries in the greater Waikato region and with the National Library in order to provide the best service possible to Hauraki residents. These services include encouraging the use of libraries by schools, reading programmes and promotions, training opportunities and inter-library loaning.

The Hauraki and Matamata-Piako District Councils share management services of their libraries.

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Future Directions Recreational activities The focus of the provision of recreational activities may change in the future due to an increasingly ageing population and a continuing decline in the number of younger people. There are also a number of central government and regional initiatives relating to the development of a more active and participative lifestyle approach. As a result, in the future the types of recreational activities and facilities required by the community may vary and this may require consideration of different types of activities being provided or supported.

The Council will respond, where agreed, to community needs for the upgrading of or the provision of new community infrastructure to meet growth demands or changing sporting and recreational needs. The community has indicated that there may be demand for: multi-use outdoor areas such as day camping; an increase in the exercise equipment provided in playgrounds; provision of mountain bike tracks; rugby league facilities; indoor sports facilities or a gymnasium.

In order to guide the Council on the community’s future recreational needs, it will develop an Active and Leisure Strategy within the next three years. This will be undertaken in conjunction with local sport and recreation clubs and users.

Sale of reserve land In general terms the sale of reserve land requires a separate public consultation process. At the time of writing this Plan, the Council is not planning to sell or otherwise dispose of any of its significant reserves.

Co-governance of reserve land The Council is currently negotiating with local iwi and the Central Government Office of Treaty Settlements for the co-governance of one reserve in Waihi and one reserve in Kaiaua. The finalisation of these co-governance agreements will take place in 2015/16 and will involve the future co-management of these sites.

Waihi multi-sport facility In response to community requests, the Council funded an investigation into the development of a multi-sport facility located at Morgan Park, Waihi. A Draft Master Plan and feasibility study were undertaken in 2011 with the finalised document produced in 2012.

The results of this study have been considered by Waihi community sports groups, and the concept has been agreed to. The project leader, Sport n Action Trust, has obtained a resource consent and applied for additional external agency funding for the project. The Council has allocated funding of $500,000 for the project in 2016/17.

Karangahake Gorge and Reserve The Council is currently working with the Department of Conservation, the New Zealand Transport Agency and the local community to ensure the facilities within the Karangahake Gorge and Reserve are capable of coping with future visitor growth. The group are working collaboratively to establish a direction and positive way forward for the Gorge area in relation to developing the area as a ‘Definitive New Zealand Visitor Destination’.

District parks The Council will promote existing parks and reserves to enhance their ability to be a ‘District attraction’. This includes development of existing reserves and beautification projects. The Council has no plans to acquire new parks and reserves during the next 10 - 20 years unless there is a demand from the public and it is economically viable.

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Programmed Actions for 2015-25 Wharf Street and Mackay Street Development - Paeroa Wharf Street and Mackay Street, Paeroa, will be designed and redeveloped to provide a more pedestrian friendly space with a clear linkage from the Ohinemuri River to the Paeroa Domain, and linking the Hauraki Rail Trail to the main street. The design phase is planned for 2015/16 ($150,000) and the development work is planned for 2015/16 and 2017/18 ($367,000).

Libraries The Paeroa Library, with a current floor area of 200m², has been operating beyond its capacity for quite some time. As a result the Council has identified the need for a new library facility to be built.

The Council is planning to construct a new library building in Paeroa with a floor area of 425m², designed to cater for current and potential future trends within the Libraries activity. The planning, tendering and construction of the Paeroa Library project will be undertaken in 2015.

The future options for the Ngatea Library building and services will be considered and addressed within the life of this Plan. The feasibility investigation could include a number of options, such as a new library building on another site, building a new shared public/College library on the Hauraki Plains College site, or renovating and/or extending within the current building.

A Radio Frequency Identification (RFID) system for libraries is also being proposed for introduction into our three libraries in approximately four years time. This is an enhanced circulation, stock management and security system.

A new library management system is proposed to be introduced in 2015/16 to replace the existing system which has become outdated and lacks the additional features that a new system could offer.

Swimming Pools The Council has identified the need to undertake a feasibility study for replacement of the Ngatea pool’s LPG heating system with a more cost efficient method for heating the pool. This study and resulting works are planned to be undertaken in 2016/17.

Parks and Reserves

The Council has decided to undertake an upgrade of Primrose Hill Recreation Reserve in Paeroa, which is to include a walkway to the summit, further development of the cenotaph memorial area and an extension of the car park to allow for more parking and to allow buses to turn around. This staged work is planned for 2016-2018. Funding will be provided by the Council and external funding agencies.

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Capital Works – District-wide overview Libraries In the 2015-25 period, a total of $1.78million is planned to be spent on Libraries, comprising the following:

Type of Capital Project Year Total Cost Expenditure Library management system 2015/16 $60,000 Level of service Security system 2020/21 $114,000 Level of service Collection software 2016/17 $6,100 Level of service New library books and eBooks 2015/16 to $1.6million Level of service 2024/25

Capital Works Schedule – by Ward Paeroa A total of $1.0million is planned to be spent on Community Recreation in the Paeroa Ward, comprising the following:

Type of Capital Project Year Total Cost Expenditure Primrose Hill walkway to summit, cenotaph 2016/17, $159,000 Level of service area development and car park extension 2017/18, 2018/19 Mackaytown Domain development (roading 2015/16 $8,000 Level of service and signage) 2015/16, $517,000 Level of service Wharf Street/Mackay Street development 2017/18 Main Street Christmas lights 2015/16, $30,000 Level of service 2016/17 Paeroa recreation reserves renewals 2015/16, $14,000 Renewal (Edwards Place playground, Railway 2016/17, Reserve, Rotunda renewals) 2017/18, 2018/19, 2020/21. Paeroa sportsfields renewals (including 2015/16, $28,000 Renewal grandstand, playground and rotunda 2017/18, renewals) 2018/19, 2021/22, 2022/23, 2023/24, 2024/25. Paeroa swimming pool renewals 2015/16 - $179,000 Renewal 2024/25 Brenan Field developments including 2017/18 $96,000 Level of service lighting

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Plains A total of $356,500 is planned to be spent on Community Recreation in the Plains Ward, comprising the following:

Type of Capital Project Year Total Cost Expenditure Ngatea main street entrances 2016/17 $41,000 Level of service Hugh Hayward domain watering system 2015/16, $16,000 Level of service and additional speed signs 2016/17 Lights in cherry trees (Memorial Hall) and 2015/16, $17,000 Level of service Christmas lights in town. 2016/17 Turua jetty redevelopment 2016/17 $10,000 Level of service Turua Domain car park development 2016/17 $15,000 Level of service Waitakaruru Domain bitumen reseal, war 2015/16, $38,000 Level of service memorial entrance and gates upgrade, and 2016/17 car park renewals Kerepehi playground, picnic tables, fencing 2017/18 $10,500 Level of service and signage Tilbury Reserve picnic tables and signage 2015/16 $5,000 Level of service Dudding Reserve community notice board 2015/16 $9,000 Level of service and landscaping Pioneer Park BBQ 2017/18 $20,000 Level of service Ngatea swimming pool heating conversion 2016/17 $87,000 Level of service Pipiroa boat ramp resurfacing 2016/17 $5,000 Level of service Plains recreational reserves renewals 2015/16, $16,000 Renewal 2018/19, 2019/20, 2020/21. Plains sportsfields renewals (including 2015/16, $40,000 Renewal Ngatea grandstand) 2017/18, 2019/20, 2021/22, 2022/23, 2024/25. Ngatea swimming pool renewals 2016/17, $27,000 Renewal 2019/20, 2022/23, 2023/24, 2024/25.

Waihi A total of $763,500 is planned to be spent on Community Recreation in the Waihi Ward, comprising the following:

Type of Capital Project Year Total Cost Expenditure Gilmour Lake - lake edge footpath, 2015/16, $70,000 Level of service signage, BBQ and parking on George 2016/17 Street

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Type of Capital Project Year Total Cost Expenditure Main Street Christmas lights 2015/16 $12,000 Level of service Pohutukawa Reserve changing rooms 2015/16, $20,000 Level of service conversion, outside shower, and surf club 2016/17 toilets Victoria Park installation of bike rack and 2015/16, $21,000 Level of service notice board, and removal of tunnel at the 2016/17, play area, removal or revamp of skate bowl 2017/18 and seating area Morgan Park redevelopment 2016/17 $512,000 Level of service Shade at Waihi swimming pool 2016/17 $5,000 Level of service Waihi Events Centre renewals 2015/16, $112,000 Renewal 2016/17, 2019/20, 2020/21, 2022/23, 2023/24, 2024/25. Waihi recreation reserves renewals 2015/16, $4,500 Renewal (including Gilmour Park playground and 2018/19, Whiritoa Beach Reserve playground) 2020/21. Waihi sportsfields renewals (Morgan Park 2015/16, $6,000 Renewal playground) 2018/19 Waihi swimming pool renewals 2023/24 $1,000 Renewal Development of plans for Upper Seddon 2016/17 $50,000 Level of service Street streetscape

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available in Volume 2 of this document.

What is the cost of operating the Community Recreation activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Libraries 952 1,021 1,046 1,068 1,086 1,112 1,157 1,179 1,209 1,248 1,276 Sportsfields 481 501 521 562 571 553 576 587 600 628 642 Recreation Reserves 1,454 1,482 1,547 1,558 1,571 1,638 1,666 1,728 1,758 1,845 1,875 Events Centre 126 126 128 146 159 137 158 146 149 172 160 Swimming Pools 592 598 610 659 684 664 684 696 716 742 765 Sports Co-ordinator 101 98 101 104 106 109 113 115 119 124 127 3,706 3,826 3,953 4,097 4,177 4,213 4,354 4,451 4,551 4,759 4,845

REVENUE Fees, Charges and Other Income 138 128 131 135 138 142 146 151 156 161 166 External Subsidies ------Targeted Rates 1,460 1,543 1,583 1,616 1,648 1,689 1,747 1,801 1,863 1,919 1,980 General Rates 1,859 2,018 2,112 2,195 2,392 2,430 2,465 2,575 2,648 2,644 2,779 3,457 3,689 3,826 3,946 4,178 4,261 4,358 4,527 4,667 4,724 4,925

OPERATING SURPLUS/(DEFICIT) (249) (137) (127) (151) 1 48 4 76 116 (35) 80

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Community Facilities

What is the Community Facilities activity?

The Council provides a range of community facilities for the use of residents and visitors to the District. These include:

 three community halls (Paeroa War Memorial Hall, Ngatea War Memorial Hall and Waihi Memorial Hall)  11 rural community halls (each managed by community hall committees or incorporated societies and funded by targeted rates)  57 pensioner units, in 9 complexes  22 public toilets (owned or maintained by the Council)  three cemetery sites and one ashes memorial wall site  seven small non-recreational reserves.

How does the Council provide the Community Facilities activity? Maintenance Community facilities are maintained consistently district-wide. Sites are regularly mowed, buildings and trees maintained and rubbish collected. Some urban road verges are mowed.

Industry standard ‘best practice’ methods are used wherever possible.

Halls The Council provides community halls at Paeroa, Ngatea and Waihi.

The Council sets targeted rates for the 11 rural community halls (other than for Kaiaua Bowling Club, Kopuarahi and Mangatarata halls) at the request of the local communities to meet some of the maintenance costs of the rural halls.

Eight of these halls are owned and managed by community hall committees or incorporated societies:

 Kaihere Hall  Karangahake Hall  Netherton Hall  Kaiaua Bowling Club Hall  Kopuarahi Hall  Patetonga Hall  Waikino Hall  Waitakaruru Hall.

In 2011 the Karangahake Hall was severely damaged by fire resulting in the need to demolish the hall. The community is currently assessing replacement options. The hall was insured.

The Council owns the remaining three community halls that are also managed by community hall committees or incorporated societies:

 Kerepehi Hall  Mangatarata Hall  Turua Hall.

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Pensioner housing The 57 pensioner housing units owned and administered by the Council comprise the following:

 21 units in Waihi  24 units in Paeroa  12 units in Ngatea.

The units range in layout from bedsit units to one bedroom units.

Public toilets The Council owns and/or maintains 22 public toilet facilities throughout the District. These facilities assist in the maintenance of public health by providing safe sanitary facilities. They are located around the District to cater for the travelling public and for users of some public reserve and domain areas. Public toilets are provided in the Paeroa Ward (7), the Waihi Ward (8), and the Plains Ward (7). These include three toilets provided on the Hauraki Rail Trail for cyclists and walkers; these are managed by Hauraki Rail Trail Charitable Trust, but are assets of the Council. The Council developed a Public Toilet Strategy in 2014; this will be used as a guiding document for future provision of District public toilets for residents and visitors.

Cemeteries The Council operates three cemeteries in the District: Waihi, Paeroa and Miranda Cemeteries. Both Paeroa and Waihi cemeteries have a Returned Services Association section and in Waihi a section is set aside for Maori, called the ‘Marae Block’. Within all cemeteries there are gardens available for ashes to be laid and plots for casket burials.

In order to provide this service the Council owns the land, installs the berms and ‘ashes gardens’ for interments, undertakes interments, has toilet facilities in both Waihi and Paeroa cemeteries, and undertakes the ongoing maintenance of the cemeteries which includes mowing, drainage, vegetation and roading maintenance, along with general upkeep.

In addition there are two Memorial Walls within the Hauraki District - one at the Waihi Cemetery and the other at Pioneer Park in Ngatea where in 2010 an Ashes Wall was constructed as part of the Park development.

In November 2010 the Kaiaua area was amalgamated with Hauraki District and as part of this amalgamation Hauraki District Council obtained the Miranda Cemetery. This provided the Plains community with an alternative burial option to the current agreement with Thames-Coromandel District Council, whereby Plains residents can be buried at the Totara Cemetery.

Non-recreation reserves Over the years the Council has been gifted some reserves. These assets have been included in the Community Facilities activity, and are defined as areas of land used for non-recreational pursuits. These include the following reserves:

 Speedys Reserve, Ngatea  Henderson Reserve, Ngatea  Tilbury Reserve, Ngatea  Hutchinson Reserve, Paeroa  Children’s Reserve, Paeroa  Gerald Hill Reserve, Paeroa  Isobel Franklin Reserve, Waihi.

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Key legislative drivers

Legislation and standards relevant to Community Facilities activities include:

 Burial and Cremations Act, 1964  Building Act, 2004  Health Act, 1956  Trespass Act, 1980  Health and Safety in Employment Act, 1992  Local Government Act, 2002  Reserves Act, 1977  Resource Management Act, 1991  Heritage New Zealand Pouhere Taonga Act, 2014  Residential Tenancies Act, 1986.

Demand Management

One of the Council’s underlying assumptions for the 2015-25 Hauraki Long Term Plan is that the District population will remain static, i.e. experience no growth to its population over the next 10 years. In addition, the District will experience the effects of an ageing population, with the implication of smaller household sizes. This could mean increased demand for cemetery facilities and pensioner housing, and perhaps less demand for facilities such as halls. The Council is planning to undertake the development of a Pensioner Housing Strategy in 2015 to use as a guiding document for the future provision of Pensioner Housing.

The Council developed a Public Toilet Strategy in 2014. This will be used as a guiding document for future provision of district public toilets for residents and visitors.

The Council is experiencing, similar to a number of other rural councils, a decline in the usage and demand for rural community halls. The Council will continue to work with the hall committees to assist where possible, and if necessary advise on the appropriate course of action for the closure and disposal of a hall if the community decides that is required.

Collaborative projects

The Council works with the Returned Services Association on providing services in the District cemeteries for Returned Servicemen.

Veteran Affairs undertake an annual inspection of the service section of the cemeteries and fund the operational and expansion costs of these areas.

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Levels of Service and how the Council will measure them Halls

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14)

Council managed halls are clean and well maintained and meet the needs of the community.

Measure: Service Request 3 <36 complaints per year Satisfaction of hall users with Database, direct complaints the cleanliness and contact and per month maintenance standard of the written (rolling halls. correspondence average)

Pensioner Housing

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Pensioner housing units are affordable. Measure: Ministry of Rental fees Rental fees are no more than Elderly tenants can afford to Business, are 69.3% 85% of local current market continue occupying the Council Innovation and of local rates. pensioner units. Employment market website as at 1 rates February of previous year The Council’s pensioner units are maintained to a comfortable and safe standard. Measure: Annual tenant 80% of > 85% of tenants satisfied with Percentage of tenants satisfied satisfaction tenants the comfort and safety of the with the comfort and safety of survey satisfied units the units.

Public Toilets

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14) Public toilets are clean and maintained, meeting the needs of the community and the

travelling public. Measure: Service Request 47 < 50 complaints per annum Number of justified Database and complaints complaints regarding whether written (2013/14) public toilets are clean, correspondence maintained and sufficiently stocked with consumables.

Cemeteries

Community Method of Baseline Levels of Service Target 2015-25 Outcome measurement (2013/14)

The Council provides efficiently serviced and well maintained cemeteries.

Measure: Service 8 requests < 10 requests collectively for Number of requests for Request (2013/14) general maintenance across all general maintenance at Database Council cemeteries per year. cemeteries per year.

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Possible future changes to Levels of Service

This Hauraki Long Term Plan includes levels of service which reflect community needs and expectations for the service for the years 2015-25. Changing circumstances may in some cases impact on these service levels in unforeseen ways. The table below shows the possible future changes to levels of service.

Levels of Service Possible changes to Level of Service

The Council’s pensioner The Council will be developing a Pensioner Housing Strategy in 2015 which may units are maintained to a identify changes to the levels of service providing for pensioner housing. comfortable and safe standard.

Programmed Actions for 2015-25 Capital Works – District-wide overview Rural community halls The Council assists 11 community halls that are administered by local committees, and most are funded by way of hall rates over local hall rating areas. The Council has no involvement in administration of these halls other than arranging insurance cover through Council’s insurance providers and setting the targeted hall rates as recommended by the individual hall committees.

The Karangahake Hall was demolished following a fire in September 2011. The hall was insured and the Hall Committee and the local community are assessing options for the construction of a new hall. It is expected that the planning for this replacement facility will be advanced during 2015-18.

Cemeteries As the current sections of the Pukerimu Cemetery in Paeroa are nearly full, the Council will undertake the design and development of a new area within the existing undeveloped cemetery land. This work will be undertaken in the years 2015/16-2018/19.

Public toilets New public toilets are planned for Kaiaua at the boat ramp reserve area in 2016/17, and in Morgan Park, Waihi in 2016/17 as part of the redevelopment of this sports field.

Non-recreation reserves The Hutchinson Reserve in Paeroa was gifted to the Council for the purpose of outdoor recreation and education. The Council has developed a concept plan for the reserve and will undertake the improvement works between 2015 and 2017. This work will be undertaken in partnership with a Paeroa community service club.

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Capital Works Schedule – by Ward Paeroa A total of $955,000 is planned to be spent on Community Facilities in the Paeroa Ward, comprising the following:

Type of Capital Project Year Total Cost Expenditure Pukerimu Cemetery ashes wall and major 2015/16, $295,000 Level of service development (including planning costs) 2016/17, 2017/18, 2018/19 Shift campervan dump station at Railway 2015/16 $12,000 Level of service Reserve toilets Paeroa Memorial Hall renewals (internal, 2016/17, $45,000 Renewal grounds and kitchen) 2020/21, 2021/22, 2023/24, 2024/25 Paeroa pensioner housing renewals 2015/16 - $376,600 Renewal (including change-over refurbishments and 2024/25 re-roofing) Paeroa public toilet renewals (Railway 2015/16, $9,000 Renewal Reserve and Karangahake Reserve) 2023/24 Hutchinson Reserve development 2015/16, $217,000 Level of service 2016/17, 2017/18, 2018/19

Plains A total of $572,000 is planned to be spent on Community Facilities in the Plains Ward, comprising the following:

Type of Capital Year Total Cost Project Expenditure Kaiaua public toilets 2017/18 $157,000 Level of service Fix memorial wall slumping (Hugh 2019/20 $5,000 Renewal Hayward Domain) Miranda cemetery new berm 2016/17 $3,000 Level of service Ngatea Memorial Hall renewals (internal 2015/16, $100,000 Renewal and external, and portable staging) 2016/17, 2017/18, 2021/22, 2022/23, 2023/24, 2024/25 Plains pensioner housing renewals 2015/16 - 2024/25 $297,000 Renewal Plains public toilets renewals 2015/16, $10,000 Renewal 2017/18, 2023/24, 2024/25

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Waihi A total of $413,000 is planned to be spent on Community Facilities in the Waihi Ward, comprising the following:

Type of Capital Project Year Total Cost Expenditure Waihi Cemetery fencing, new berm and 2016/17, $48,000 Level of service ashes garden 2017/18 Waihi Memorial Hall renewals 2015/16, $48,000 Renewal 2017/18, 2019/20, 2020/21, 2021/22, 2023/24, 2024/25 Waihi pensioner housing renewals 2015/16 - $310,000 Renewal (including change over-refurbishments and 2024/25 re-roofing) Waihi public toilet renewals 2017/18 $2,000 Renewal Upgrade campervan dump station at 2016/17 $5,000 Level of Service Victoria Park toilets

The full list of capital works is in the “Capital Works Schedule” which forms part of the “Financial Statements”. This is available in Volume 2 of this document.

What is the cost of operating the Community Facilities activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Cemeteries 276 338 342 350 356 365 378 385 396 411 421 Community Halls 238 243 249 261 249 266 262 265 270 446 288 Pensioner Housing 291 344 351 364 367 374 393 397 406 427 433 Public Toilets 499 509 535 545 543 557 577 591 609 633 651 Interest 309 287 282 302 319 304 287 264 238 212 186 1,613 1,721 1,759 1,822 1,834 1,866 1,897 1,902 1,919 2,129 1,979

REVENUE Fees, Charges and Other Income 454 433 443 455 486 499 514 550 568 587 630 External Subsidies 3 3 3 3 3 3 3 3 3 3 3 Targeted Rates 296 286 283 298 314 303 285 265 240 211 186 General Rates 749 899 963 974 1,020 1,067 1,084 1,101 1,140 1,297 1,177 1,502 1,621 1,692 1,730 1,823 1,872 1,886 1,919 1,951 2,098 1,996

OPERATING SURPLUS/(DEFICIT) (111) (100) (67) (92) (11) 6 (11) 17 32 (31) 17

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Community Development

What is the Community Development group and why is the Council involved?

Community Development encompasses a range of activities that the Council and the community are involved in to improve the well-being of the Hauraki District. These activities are generally non-asset based and many involve collaborative approaches with community organisations and agencies, to “help the community to help itself”.

The collaborative and partnership approaches and initiatives all have a common theme of promoting a better quality of life and living environment for the Hauraki District.

Survey feedback clearly indicates that the Council is expected to assist in creating a vibrant and prosperous community that encourages positive social well-being. In an effort to meet the community’s expectations, the Council established an Economic Development subcommittee, and employs an Economic Development Manager who is responsible for progressing the Council’s vision and the goals outlined in its Economic Development Strategy. This is further detailed in the Community Growth activity section.

To support and encourage local groups and initiatives that benefit the greater community and its well- being Council also employs a full-time Community Development Officer. Amongst other things the officer is responsible for progressing identified projects and community initiatives that are high in the community’s priorities.

What activities are included in the Community Development group?

The Community Development group involves two key activities: Community Growth and Community Initiatives.

The sub-activities included in these two activities are:

Community Growth Community Initiatives  Economic Development  Social Initiatives  Visitor Information Centres  Sister Cities  Town Promotion  Grants, Donations and Awards  Hauraki Rail Trail  Other initiatives.  Destination Coromandel.  Development Assistance/Grants

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Relevant Policies, Plans and Strategies

 Hauraki District Positive Ageing Strategy  Economic Development Strategy and Action Plan  Hauraki District Plan  Better Futures Hauraki Action Plan  Hauraki Long Term Plan and Annual Plans  Domestic Violence Policy  Youth Policy  Arts and Culture Policy  Financial Strategy.

What are the significant negative effects on the local community?

Activity Negative effects on the local community:

All Activities  Money is potentially diverted from other core Council activities, creating the need to obtain more funds.

Community  The development of subdivisions, although socially, economically and culturally Growth beneficial does have effects on the environment.  Increased visitor numbers to scenic and heritage sites can have a negative impact on the environment.  Having business ventures in the extractive industries, such as quarries and mining, can impact on the environment.  The economic development activity is politically driven, and is subject to change based on the regularly changing local current events and situations.  There is potential conflict between promoting economic development and the Council’s role as a regulatory body (e.g. Resource Management Act, 1991 and Building Act, 2004 requirements).

Community  The Council cannot support all initiatives and therefore must selectively choose Initiatives which to become involved with and which not to.

What are the costs of operating the Community Development group?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Community Growth 862 897 921 943 966 991 925 948 977 1,014 1,043 Community Initiatives 846 920 941 879 878 894 948 948 969 1,149 1,158 1,708 1,817 1,862 1,822 1,844 1,885 1,873 1,896 1,946 2,163 2,201

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates 511 483 497 502 513 532 509 528 548 562 584 General Rates 768 1,271 1,344 1,269 1,378 1,424 1,416 1,459 1,509 1,625 1,718 1,279 1,754 1,841 1,771 1,891 1,956 1,925 1,987 2,057 2,187 2,302

OPERATING SURPLUS/(DEFICIT) (429) (63) (21) (51) 47 71 52 91 111 24 101

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Funding Impact Statement for 2015-25 for the Community Development group

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 768 1,271 1,344 1,269 1,378 1,424 1,416 1,459 1,509 1,625 1,718 Targeted rates 511 483 497 502 513 532 509 528 548 562 584 Subsidies and grants for operating purposes ------Fees and charges ------Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts ------Total Operating Funding (A) 1,279 1,754 1,841 1,771 1,891 1,956 1,925 1,987 2,057 2,187 2,302

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 1,167 1,193 1,222 1,153 1,184 1,216 1,156 1,189 1,228 1,390 1,437 Finance Costs ------Internal charges and overheads applied 278 362 378 391 381 390 420 410 420 454 444 Other operating funding applications ------Total Applications of Operating Funding (B) 1,445 1,555 1,600 1,544 1,565 1,606 1,576 1,599 1,648 1,844 1,881

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) (166) 199 241 227 326 350 349 388 409 343 421

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase (decrease) in debt ------Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) ------

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service ------to replace existing assets ------Increase (decrease) in reserves (166) 199 241 227 326 350 349 388 409 343 421 Increase (decrease) of investments ------Total Applications of Capital Funding (D) (166) 199 241 227 326 350 349 388 409 343 421

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) 166 (199) (241) (227) (326) (350) (349) (388) (409) (343) (421)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) (429) (63) (21) (51) 47 71 52 91 111 24 101

Depreciation/Assets written off 263 262 262 278 279 279 297 297 298 319 320 Subsidies and grants for capital expenditure ------Development and financial contributions ------Vested Asset Income ------SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) (166) 199 241 227 326 350 349 388 409 343 421

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Community Growth

What is the Community Growth activity?

For Hauraki District Council, community growth is about improving the overall quality of life through:

 increased economic growth and job creation  enhancing the business environment  empowering communities and improving community well-being  building and maintaining adequate infrastructure and community facilities to maintain growth  encouraging and facilitating development proposals, especially those that promote opportunities for the Hauraki District  sustainably managing the environment and resources within the District, particularly the unique features of the Hauraki District.

The Council has accepted a responsibility to take part in community growth initiatives, due to public demand and the development of the Council’s Community Outcomes (specifically, Progress Hauraki). Of particular relevance is the Community Outcome ‘Progress Hauraki’ which encourages balanced and sustained economic growth throughout the District.

How does the Council deliver the Community Growth activity?

The Council delivers the Community Growth activity through a variety of strategies, and by working in collaboration with a number of agencies within the community. Collaboration is an important way of ensuring effective economic development in the Hauraki District.

Economic Development The Council employs an Economic Development Manager to work for the community on a local, regional, national and, where appropriate, international scale to progress economic development strategically across the district. The Economic Development team also plays a pivotal role in the growth of the District by leading and co-ordinating efforts to ensure that potential opportunities for new industry, commercial development and existing businesses are maximised.

As part of the consultation for the 2015-25 Long Term Plan the Council sought community feedback on its proposed allocation of funding for economic development activities and if the public supported its approach, or otherwise. After much deliberation Council chose to continue its current allocation and extent of funding for economic development activities.

Information Centres During the development of this Plan the Council considered and approved an application from the existing Paeroa Visitor Centre service provider at the L&P Café to reassign their contract to Positive Paeroa. Due to the Council seeking feedback from the community on the future of economic development as part of its Hauraki Long Term Plan consultation, that included a possible review of information centres, it has extended the original June 2015 contract to September 2015 to allow for the review to be completed.

The service provided in Paeroa includes staffing and the provision of information for visitors to the area. The Council has also agreed to provide funding towards overheads for six years to the Waihi i-Site that is part of the Waihi Discovery Centre located in upper Seddon Street, Waihi.

The Council decided at the Hearing of Submissions to the Hauraki Long Term Plan to reduce the funding provided for the Paeroa Visitor Centre by $10,000 per year as it is of the view that savings can be made on past operating costs.

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Destination Coromandel Destination Coromandel is a sub-regional tourism organisation which is funded on an annual basis by Thames-Coromandel District Council and Hauraki District Council. The Hauraki District Council’s contribution is limited to a maximum of 25% of Destination Coromandel’s programme expenditure relating to regional tourism. The Council does not contribute to other functions of Destination Coromandel. The key objectives of Destination Coromandel, for the programmes that the Council contributes to, are: to deliver ’the Coromandel’ annual tourist expenditure equal to or greater than the national average, and to promote ‘the Coromandel’ as a leading tourist and visitor destination.

Town Promotion Organisations There are three town promotion organisations in the District: Positively Promoting the Plains, Positive Paeroa and Go Waihi. The Council levies Ward rates (business and residential) on behalf of these organisations and this is the main source of funding for them. Funding is used towards employing Town Promoters (there is no Town Promoter position funded for Positively Promoting the Plains) and for the promotion of events such as the Ngatea garage sale, Plains rural show, and Santa parades. Both Positive Paeroa and Go Waihi are incorporated societies and were established with the main objectives of:

 promoting and publicising Waihi/Paeroa nationally and internationally with the aim of attracting visitors, tourists and business interest  assisting, promoting and encouraging any enterprise, idea or suggestion which may enhance the economy, employment opportunities and community spirit for the benefit of Paeroa/Waihi  liaising with any person or body in order to achieve benefits for the community.

In recent years the focus of Town Promoters has shifted to organising events, coordinating activities and generally promoting community participation in events.

A review of the Town Promoters was undertaken by an external agency at the request of the Council during 2014/15. Council considered this report in conjunction with the submissions made to the Hauraki Long Term Plan and chose to continue to fund the town promotion organisations at the same level as 2014/15. Service level agreements will be prepared with each town promotion organisation during 2015.

Grants, Development Assistance and District Advertising This fund is available to the Economic Development Sub-Committee that has power to act on decisions of up to $5,000 and the power to recommend expenditure to Council above that figure for business grants, District promotional footage for the Council website, and advertising of the Hauraki Rail Trail.

Other Initiatives The Council is currently considering the possibility of developing an industrial ‘Food Hub’ at the Hauraki Industrial Park (referred to as the Kerepehi Industrial Park in the Consultation Document), providing a suitable option for food processing and manufacturing industries to establish at this central location. The key issue is the need for an appropriate wastewater treatment plant at the site that would be able to process the volume and strength of waste that such industries would produce. Additionally, the funding of such a proposal is a key issue for Council. The Council sought feedback on whether the community supported this idea as part of this Hauraki Long Term Plan consultation process. Council’s conclusion was to continue to pursue the viability of the ‘Food Hub’ for another two years and reconsider options during the 2017/18 Annual Plan. Any proposal will be subject to further public consultation in the future before the Council proceeds with any development.

The Council has also been involved in the development of residential and industrial subdivisions within the Hauraki District. It has done this in the absence of new development by private developers, as an initiative to encourage growth. The Council is currently involved in developing a further residential subdivision in Ngatea. Further involvement in this area will depend on the economic climate and the willingness or otherwise of developers to be involved.

Council participates in District-based marketing and promotion initiatives. Through working with local and national media the Council initiates press releases that tell the ‘Hauraki story’. The Council has dedicated pages on its website that market and promote the District for commercial and private investment.

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Key legislative drivers

 Local Government Act, 2002  Citizenship Act, 1977  Resource management Act, 1991  Building Act, 2004  Treaty of Waitangi, 1975  Local Government Official Information and Meetings Act, 1987.

Collaborative Projects Business after Five The Council works with the town promotion groups to hold Business after Five meetings in Paeroa, Waihi and Ngatea. This provides the business community with networking opportunities and updates on activities in the area, particularly from the Council and the town promotion groups.

Hauraki Rail Trail The Hauraki Rail Trail is a major project that the Council continues to work on in conjunction with Thames-Coromandel and Matamata-Piako District Councils and the Hauraki Rail Trail Charitable Trust. Stage One is complete, and planning and design work for Stage Two (Kopu to Kaiaua) is well underway. The Hauraki Rail Trail has already proven to positively benefit the Hauraki District by the encouragement of a greater number of tourists to visit the District. This has a variety of flow on effects including the potential for more businesses to establish themselves in this area.

Destination Coromandel An annual joint contribution is made to Destination Coromandel by the Hauraki and Thames- Coromandel District Councils. The Hauraki District Council’s contribution is limited to a maximum of 25% of Destination Coromandel’s programme expenditure relating to regional tourism. The Council does not contribute to other functions of Destination Coromandel. In return, the Destination Coromandel organisation promotes both Districts nationally and internationally as a visitor destination. More information is included in the Statutory Reporting section of this Hauraki Long Term Plan.

New Zealand Trade & Enterprise (NZTE) The Council works with NZTE to attract international investment and to create streamlined processes for investors who may want to establish in the Hauraki District.

Real Estate Agents The Council supports real estate agents to market industrial and commercial properties throughout the District to attract capital investment.

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Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Target 2015-25 Outcome measurement The Council will work alongside others to recognise and develop opportunities for growth

within the local business communities. 2015-25: A Council representative will attend Business After 5 meetings 11 months of the year in 17 BA5 Waihi and Paeroa, and Measure: Business After meetings held, quarterly in Ngatea. The Council is aware of 5 (BA5) all attended by business issues and meeting HDC The Economic Development encourages growth attendance representatives Manager will report on opportunities and events. (2013/14) Council’s economic development activities at two Business After 5 meetings each year in Waihi and Paeroa, and one in Ngatea The community is aware of Economic Development initiatives. Measure: HDC news 3 articles 2015-25: Quarterly articles The community is updated on page, website published published in the HDC news economic development electronic (2013/14) page and website. matters. records The Council is working to implement its Economic Development Strategy. Measure: Percentage of customers Customer New measure 2015-25: >70% of customers satisfied with the Council’s satisfaction (2015) satisfied with approach approach to Economic survey Development.

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

The Council will work This is a revised measure and reflects the Councils priority in this area. The alongside others to Economic Development team is actively implementing the Council’s more proactive recognise and develop approach to encourage new and existing businesses in the District. opportunities for growth within the local business communities. The community is aware of This is a new level of service, and advocates for the Council’s change in approach to Economic Development Economic Development. The performance measure of keeping the community initiatives. informed continues with regular articles being published. The Council is working to This is a newly defined level of service, measuring customer satisfaction with the implement its Economic Council’s approach to Economic Development. The new measure reflects the Development Strategy. Councils priority in this area.

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Possible future changes to Levels of Service

In 2015 as part of the consultation on the 2015-25 Hauraki Long Term Plan, the Council specifically consulted on the future of economic development as a key community issue. There are a number of decisions as a result of community feedback on economic development that may affect the extent of the levels of service provided for the Community Growth activity. Please refer to the Consultation Outcomes section of this document for further detail on the outcome of that specific feedback topic.

Future Directions

The Future Directions for the Community Growth activity indicate any strategic initiatives, plans or actions the Council is aware of that may occur within the three year life of this Plan, but that the Council does not yet have sufficient information on to include any further detail at this point.

Retirement accommodation The Council is working with a number of retirement accommodation developers on ways to meet future demand, which is being created by an aging population. While there are currently no specific proposals, the Council is keen to support initiatives in this area.

Aquaculture An area for fish farming in the Firth of Thames has been established, following submissions over several years by Councils and aquaculture interest groups. The Waikato Regional Council has the responsibility to administer the new provisions through its Coastal Management Plan which covers all aquaculture activity in the region including fish farming. There could be flow-on benefits for the Hauraki District arising from aquaculture and fish farming initiatives in the coming years.

Tourism and hospitality The Council is actively encouraging both small and medium investment products and initiatives to take advantage of business opportunities arising from the Hauraki Rail Trail.

Programmed actions for 2015-25 Hauraki Rail Trial The key goal is the development and extension of the Hauraki Rail Trail from Kopu to Kaiaua. Facilitating business opportunities to support the Hauraki Rail Trail is also a high priority. At the time of writing this Plan, the success (or otherwise) of external funding applications were not yet known for the Kaiaua to Kopu section of the Hauraki Rail Trail. The Hauraki Rail Trail Charitable Trust is applying for external funding, however if that is unsuccessful, or only partially successful, Council could be asked to provide additional funds. The Council’s preference to fund its commitment is firstly through external funding, followed by proceeds from asset sales, use of the District Community Projects Assistance Fund, depreciation funding, or rate funding.

The Council’s $1million commitment to the development of the Kaiaua to Kopu section of the Hauraki Rail Trail has been recognised in the 2014/15 Annual Plan and in the opening balances of the 2015-25 Hauraki Long Term Plan. Depending on the outcome of the external funding applications, an additional commitment may be required and this will be considered as part of the 2016/17 Annual Plan process. At this time, no extra financial commitment has been recognised in the 2015-25 Hauraki Long Term Plan.

Aged care and retirement Over the next three years, there will be focus on attracting and facilitating investment from the corporate sector to provide aged care facilities and retirement accommodation to the District.

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Hauraki industrial subdivision The Council will, in the short to medium term, work to attract and facilitate investment from food based companies to establish in the Hauraki Industrial Park (referred to as the Kerepehi Industrial Park in the Consultation Document).

The Council sought feedback from the community as part of its Hauraki Long Term Plan consultation process on the possible development of an industrial ‘Food Hub’ at Kerepehi, and whether there was support for Council developing a new wastewater treatment plant.

As a result of the consultation process, the Council decided to continue to pursue the ‘Food Hub’ proposal for another two years, and review this as part of the 2017/18 Annual Plan process. The Council also decided at the hearings that it may consider in the future making some funding contribution to upgrading the wastewater treatment plant at Kerepehi on a case by case basis. The Council will also further investigate options and costs for the development of a wastewater treatment plant at Kerepehi and will consult with the community regarding that proposal.

Northern estate (Ngatea) During the next three years, focus will be on attracting and facilitating investment for residential and retirement villages in Ngatea.

Review of Economic Development Strategy During 2016, the Council will review the Economic Development Strategy document, to ensure that it is current to the Council’s vision and the economic environment.

Over the next three years the Council has signaled in this Plan that it will be seeking to be more active in economic development in the District and will be promoting new economic development initiatives such as extensions to the Hauraki Rail Trail and the development of a “food hub” at the industrial land at Kerepehi.

The Council will continue to scan the economic environment and provide appropriate support to investors who share the Council’s vision for sustainable and responsible economic development.

What is the cost of operating the Community Growth activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Economic Development 294 349 358 366 374 383 394 404 415 429 441 District Promotions 20 15 16 17 16 17 18 17 18 20 19 Information Centres 158 155 159 163 167 172 80 82 85 88 91 Positive Paeroa Co-ordinator 126 123 126 129 133 136 141 145 149 155 160 Positively Promoting the Plains 17 17 18 18 19 19 20 20 21 22 23 Go Waihi 116 109 112 115 118 121 125 129 133 138 142 Destination Coromandel 131 129 132 135 139 143 147 151 156 162 167 862 897 921 943 966 991 925 948 977 1,014 1,043

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates 359 331 340 345 353 365 337 349 362 372 386 General Rates 430 549 579 583 638 662 617 644 670 658 704 789 880 919 928 991 1,027 954 993 1,032 1,030 1,090

OPERATING SURPLUS/(DEFICIT) (73) (17) (2) (15) 25 36 29 45 55 16 47

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Community Initiatives

What is the Community Initiatives activity?

The Council aims to promote the District as an area that encourages vibrant communities and an enhanced quality of life. This means balancing the provision of support for social, cultural and economic initiatives of benefit to the people of our District.

Through the Community Initiatives activity a number of projects take place to assist in the progressing of the Community Outcomes, and to ensure that we have a positive climate that encourages balanced and sustained economic growth throughout our District.

How does the Council deliver the Community Initiatives Activity?

The Council delivers this activity through a variety of initiatives and through working with a number of agencies. These initiatives include:

 implementing Hauraki District Council’s Youth Policy  participating in Better Futures Hauraki  implementing Hauraki District Council’s Positive Ageing Strategy  providing grants, donations and awards  administering Creative NZ Creative Community Scheme.

Collaborative Projects Hauraki District Council’s Youth Policy In 2006 the Council adopted its Youth Policy; since then a number of projects in support of youth have been undertaken. However it has proven difficult to sustain initiatives in this area and a focus in 2015/16 will be on reviewing this Policy. Annual Youth Awards continue to highlight the achievements of youth in our District and are held in conjunction with the annual Citizen Awards.

The Council supports a range of youth initiatives as they arise, for example in the past the Council has supported youth attending the National Youth Conference, and has supported the Annual Children’s Day held in conjunction with community organisations and the Waikato District Health Board.

Many of the youth projects have benefited from the use of collaborative resources, from organisations such as Te Korowai Haoura O Hauraki, the Ministry of Youth Development and the Waikato District Health Board. New organisations also present themselves to be involved in initiatives from time to time.

Social Initiatives Better Futures Hauraki The Council has been involved in the Better Futures Hauraki initiatives since the Ministry for Social Development instigated a local mapping project of social service providers. The Council’s involvement in the group is a direct result of the identified Community Outcome pertaining to social services, which is the ‘Lifestyle Hauraki’ Outcome.

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The Forum is directed through its action plan and is working toward two visions:

 All children are safe and nurtured in their homes and supported by their community environment.  All young people are positively engaged in school, work and the community.

The review of this will be part of the Social Initiatives Strategy development highlighted in the Programmed Actions for 2015-25 section of this document.

Domestic violence The Council works with the Hauraki Family Violence Intervention Network (HFVIN) and other agencies in a supporting role to promote local and national initiatives such as White Ribbon Day, and to raise awareness about domestic violence, its implications for individuals (and more broadly the community), and about what help is available. The Council has a Domestic Violence Policy that was developed with the HFVIN to show its continued support for the cause.

Hauraki District Council’s Positive Ageing Strategy The Council is working to achieve the goals set out in the Hauraki District Council Positive Ageing Strategy which was adopted in 2010. The Council holds a series of forums, particularly with groups representing older persons, to help in the celebration of Older Persons Day and to discuss the strategy and possible initiatives. This method of communication is expected to continue in the future, with other agencies becoming more involved. The review of this will be part of the Social Strategy development.

Grants, donations and awards The Council annually grants financial assistance to various local organisations which assists them in achieving their purpose. Each Ward also has discretionary funds to allocate towards local initiatives. The Council will continue to allocate 20% of the income from its Community Projects Assistance Fund to the Discretionary Social Fund.

The Council also recognises achievements in the community by presenting annual awards for Youth and Citizens. It is hoped that by doing this, community well-being will be enhanced through the recognition of achievement within the community.

Creative NZ Creative Community Scheme The Council administers the Creative NZ Creative Community Scheme for the District. Funds are provided by Creative NZ for community initiatives in the Arts arena, and are then allocated by a Council/community committee.

Whiritoa Surf Lifesaving grant The Council pays an annual grant to Surf Lifesaving New Zealand for the Whiritoa Surf Lifesaving Club. This grant pays for the paid lifeguard service over the Christmas and New Year periods. The Council provides this service in order to provide a measure of safety for swimmers.

Life Education Trust The Council will continue to help fund the Life Education Trust with a mandate from the community through its Community Outcomes. The Life Education Trust is a health based initiative, providing health education services to the primary school sector. The Council will continue to provide a $15,000 grant which will be adjusted for inflation for the rest of the life of the Plan.

Discretionary Social Fund The Council manages a fund that supports social initiatives to address identified social needs within the District.

Sister City The Council prepares and funds a number of initiatives aimed at promoting the District, such as the Sister City relationship with Jiading District in Shanghai, China. This relationship is to encourage education, business, cultural and trade exchanges and has recently celebrated 10 years of partnership.

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Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Target 2015-25 Outcome measurement To provide motivation in our District, the Council will recognise and acknowledge

achievements of the community. Measure: The Council, with the community, will Annual 2015-25: Award celebrate community achievements Report to award ceremonies are held prior towards social well-being at the Council ceremony to November annually. Citizens and Young Achievers Awards held. ceremony held annually. The Council will work towards achieving improved community social well-being through its

Social Initiatives Strategy.

Measure: 2015-25: The Council The Council will work with others Report to New supports three initiatives towards achieving the goals of the Council measure from the Social Initiatives Hauraki Social Initiatives Strategy. Strategy each year.

Possible future changes to Levels of Service

There are no possible future changes to Levels of Service anticipated at this time.

Future Directions

Local government elections are occurring again in late 2016. The results of this election may result in a new Council’s change of direction on social initiatives and any resulting projects.

Programmed Actions for 2015-25 Award ceremonies The Council will continue to provide award ceremonies in four categories: Youth, Citizen, Industry Training and Mayoral Discretionary Awards.

Discretionary Social Fund This fund is Ward Committee driven with the intent of supporting the social orientated priorities of each community, with the Council working with external agencies to help resolve the issues identified.

Social Initiatives Strategy During 2015/16, the Council will be preparing a Social Initiatives Strategy. This strategy is Ward Committee driven with the intent of supporting the social orientated priorities of each community with the Council working with external agencies to help resolve the issues identified. This process will also result in polices and strategies such as the Positive Ageing and Youth Strategies being revised.

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Annual Civic Ceremonies The Council will continue to host the annual civil ceremonies of ANZAC, Citizenship, Mayoral hosted events and sister city education exchanges.

What is the cost of operating the Community Initiatives activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Social Initiatives 148 120 124 128 127 130 138 137 141 150 150 Discretionary Social fund 68 70 72 74 76 78 80 82 85 88 91 Grants and Donations 175 177 181 186 190 195 202 207 214 222 228 Rail Trail 343 387 392 314 309 310 335 330 331 479 478 Conservation Initiatives 37 37 38 38 40 41 42 43 45 46 48 Whiritoa Beachcare 4 7 7 7 7 7 8 8 8 8 8 Whiritoa Lifesaving Grant 24 24 25 26 26 27 28 29 30 31 32 Other 47 98 102 106 103 106 115 112 115 125 123 846 920 941 879 878 894 948 948 969 1,149 1,158

REVENUE Fees, Charges and Other Income ------External Subsidies ------Targeted Rates 152 152 157 157 160 167 172 179 186 190 198 General Rates 338 722 765 686 740 762 799 815 839 967 1,014 490 874 922 843 900 929 971 994 1,025 1,157 1,212

OPERATING SURPLUS/(DEFICIT) (356) (46) (19) (36) 22 35 23 46 56 8 54

Note: the majority of the Hauraki Rail Trail expenditure shown above is depreciation on the Trail that Council has already funded.

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Regulatory Services

What is the Regulatory Services group and why is the Council involved?

The Regulatory Services group has prime responsibility for providing public information and ensuring compliance with statutory consents and legislative and regulatory requirements. The Local Government Act, 2002, requires that Councils should ensure that, as far as practicable, the responsibility and processes for decision making in relation to regulatory responsibilities is separated from those decision making processes for non regulatory matters.

The majority of the regulatory functions undertaken by the Council arise from Government legislation and regulation and, in many cases, the Council has no discretion on the implementation of these and has no ability to waive these requirements. In other cases, such as the District Plan, Local Alcohol Policy, Gambling Policy, bylaws etc, the Council does have some discretion in setting local standards, albeit within a central policy framework.

A significant part of the Regulatory Services work is ensuring compliance with the Building Act, 2004, Resource Management Act, 1991, Health Act, 1956, Local Government Act, 2002, Sale and Supply of Alcohol Act, 2012, and the Dog Control Act, 1996.

In a number of areas, the Council works in partnership with the Government and other agencies to implement regulations on issues that have a direct relationship to environmental health and to the public’s health, safety and well-being in the District.

Through Central Government legislation and codes, filtering down into local bylaws, policies and plans, the Council is able to set and maintain either minimum or absolute standards. As a result the Council also has implementation, monitoring and enforcement roles arising from these.

What activities are involved in Regulatory Services? Resource Management Implementation The Council has legislative responsibilities for implementing the Resource Management Act, 1991, by ensuring regulatory and non-regulatory activities are undertaken to promote the sustainable management of the District’s natural and physical resources.

Building Control Building Control services are undertaken by the Council to ensure that processes are in place so that buildings are safely constructed, and people can have confidence that buildings are safe to use. The Council has legislative responsibilities for implementing these requirements under the Building Act, 2004.

Community Protection Although the Council has legislative responsibilities to undertake community protection, these services are also undertaken to safeguard the quality of life and health, and prevent damage to property. The Community Protection activity delivers this mainly through compliance monitoring, enforcement and through rural fire and civil defence responsibilities.

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Animal Control The Council has responsibilities for dog registration and animal control, and aims to promote public safety, responsible dog ownership and the welfare of dogs and stock.

Key legislative drivers

The Council has responsibilities for Regulatory Services under the following legislation (amongst others):

 Civil Defence Emergency Management Act, 2002  Health Act, 1956  Psychoactive Substances Act, 2013  Sale and Supply of Alcohol Act, 2012  Gambling Act, 2003  Racing Act, 2003  Building Act, 2004  Resource Management Act, 1991  Food Act, 2014  Freedom Camping Act, 2011  Local Government Act, 1974 and Local Government Act, 2002  Dog Control Act, 1996  Forest and Rural Fires Act, 1977  Forest and Rural Fires Regulations, 2005  Fire Service Act, 1975  Land Transport Act, 1998  Conservation Act, 1987  Heritage New Zealand Pouhere Taonga Act, 2014  Local Government Official Information and Meetings Act, 1987  Reserves Act, 1977  Treaty of Waitangi Act, 1975.

Relevant Policies, Plans and Strategies

The following policies, plans and strategies are relevant to the Regulatory Services group of activities:

 Hauraki District Plan (including the Franklin District Plan section that relates to Kaiaua)  Hauraki District Council Engineering Manual  Hauraki District Council Financial Strategy 2015-25  Building Consent Authority Procedures Manual  Regulatory Activity Management Plan  Waikato Civil Defence Emergency Management Group Plan 2011-15  Thames Valley Emergency Operating Area Plan 2014-17  Waikato Civil Defence Emergency Management Group Plan 2011-15  Thames Valley Rural Fire Authority Rural Fire Plan 2013-15  Hauraki District Council Fire Prevention Bylaw involving vegetation 1993  Hauraki District Council Consolidated Bylaw  Local Approved Products Policy  Local Alcohol Policy  Gambling Venue Policy  Prostitution Policy  Dog Control Policy  Earthquake Prone and Dangerous and Insanitary Buildings Policy.

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Demand Management

Changes made to legislation, as well as the enactment of new legislation, can result in the Council having new or altered responsibilities. The Council must ensure it is prepared to undertake these new responsibilities and must carefully plan for them, as they often bring with them the need for new policy and increased responsibilities with additional costs and resource requirements. In many instances there is no mechanism provided for by the Government to recover the additional costs, therefore resulting in an additional cost to the ratepayer.

Expectations from the community that the Council should impose higher standards or increase its levels of service (particularly in the consenting area) can at times put pressure on staff and resources. Recent improvements to processes and target times have been made in the regulatory area. These improvements have been reflected in the improved satisfaction results seen in the Council’s annual satisfaction surveys. The Council will continue to monitor levels of feedback and satisfaction through triennial and annual customer surveys.

What are the significant negative effects on the local community? All activities  The community may perceive the interpretation and delivery of rules and regulations/legislation to be restrictive.

Resource Management Implementation  The time and cost of obtaining resource consents in some cases.  The length of time to achieve compliance where breaches of the rules occur.  The Council’s inability to vary statutory requirements in some cases.

Building Control  The time and cost of obtaining building consent in some cases.  The Council’s inability to vary statutory requirements in some cases.

Community Protection  Some people may not become engaged if education awareness programmes are not targeted and not held regularly.  Due to the nature of natural disasters, unexpected events may be greater in magnitude than can be realistically prepared for.  Shortage of suitable volunteers to respond to emergency events.  Public not applying for rural fire permits or not adhering to fire bans or permits.  Rural fires can be in hard to reach areas; therefore there is the risk of additional damage due to the time taken to get to fires.

Animal Control  Danger and discomfort to the public from uncontrolled and noisy dogs.  Impounding costs for dogs and other animals and recovery of these costs.

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What are the costs of operating the Regulatory Services group?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE RMA Implementation 743 775 799 815 834 854 875 897 921 946 973 Building Services 1,035 1,011 1,033 1,055 1,079 1,106 1,134 1,163 1,194 1,227 1,263 Community Protection 681 840 869 896 892 916 965 964 993 1,049 1,052 Animal Control 475 473 485 496 508 521 535 551 567 584 604 2,934 3,099 3,186 3,262 3,313 3,397 3,509 3,575 3,675 3,806 3,892

REVENUE Fees, Charges and Other Income 1,079 1,030 1,056 1,084 1,112 1,145 1,180 1,216 1,256 1,298 1,345 External Subsidies ------Targeted Rates ------General Rates 1,672 1,949 2,076 2,078 2,281 2,360 2,407 2,493 2,585 2,531 2,683 2,751 2,979 3,132 3,162 3,393 3,505 3,587 3,709 3,841 3,829 4,028

OPERATING SURPLUS/(DEFICIT) (183) (120) (54) (100) 80 108 78 134 166 23 136

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Funding Impact Statement for 2015-25 for the Regulatory Services group

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Plan ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, rates penalties 1,672 1,949 2,076 2,078 2,281 2,360 2,407 2,493 2,585 2,531 2,683 Targeted rates ------Subsidies and grants for operating purposes ------Fees and charges - 1,030 1,056 1,084 1,112 1,145 1,180 1,216 1,256 1,298 1,345 Internal charges and overheads recovered ------Local Authorities fuel tax, fines, infringement fees, and other receipts 1,079 ------Total Operating Funding (A) 2,751 2,979 3,132 3,162 3,393 3,505 3,587 3,709 3,841 3,829 4,028

APPLICATIONS OF OPERATING FUNDING Payments to staff and suppliers 756 759 778 798 815 840 864 889 917 945 977 Finance Costs ------Internal charges and overheads applied 2,172 2,334 2,402 2,457 2,491 2,550 2,638 2,679 2,750 2,853 2,907 Other operating funding applications ------Total Applications of Operating Funding (B) 2,928 3,093 3,180 3,255 3,306 3,390 3,502 3,568 3,667 3,798 3,884

SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) (177) (114) (48) (93) 87 115 85 141 174 31 144

SOURCES OF CAPITAL FUNDING Subsidies and grants for capital expenditure ------Development and financial contributions ------Increase (decrease) in debt ------Gross proceeds from sale of assets ------Lump sum contributions ------Other dedicated capital funding ------Total Sources of Capital Funding (C) ------

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure - to meet additional demand ------to improve the level of service ------to replace existing assets ------Increase (decrease) in reserves (177) (114) (48) (93) 87 115 85 141 174 31 144 Increase (decrease) of investments ------Total Applications of Capital Funding (D) (177) (114) (48) (93) 87 115 85 141 174 31 144

SURPLUS (DEFICIT) OF CAPITAL FUNDING (C - D) 177 114 48 93 (87) (115) (85) (141) (174) (31) (144)

FUNDING BALANCE ((A - B) + (C - D)) ------

Reconciliation of Cost of Service Statement to Funding Impact Statement

OPERATING SURPLUS/(DEFICIT) (183) (120) (54) (100) 80 108 78 134 166 23 136

Depreciation/Assets written off 6 6 6 7 7 7 7 7 8 8 8 Subsidies and grants for capital expenditure ------Development and financial contributions ------Vested Asset Income ------SURPLUS (DEFICIT) OF OPERATING FUNDING (A - B) (177) (114) (48) (93) 87 115 85 141 174 31 144

The funding impact statement is required under the Local Government Act, 2002 Schedule 10 and conforms to clause 7 of the Local Government (Financial Reporting and Prudence) Regulations 2014. It covers the 10 year period from 2015/2016 to 2024/2025 and outlines the Council’s sources of funding and its plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act, 2002. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.

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Resource Management Implementation

What is the Resource Management Implementation activity?

The Council is required to implement its responsibilities under the Resource Management Act, 1991 (RMA) in a number of ways, in particular:

 administering the Hauraki District Plan  processing and monitoring of resource consents  processing ‘notices of requirements’ for designations for public works (e.g. roads, sewerage plants, schools)  monitoring and enforcement provisions, including noise  reporting information to the National Monitoring System for evaluation and review.

The Council’s Resource Management services are also required to issue Land Information Memoranda (LIMs) under the Local Government Official Information and Meetings Act, 1987 when requested to do so by any applicant.

How does the Council provide the Resource Management Implementation activity?

Through the Policy Development activity the Council develops a District Plan. The District Plan provides a framework for the sustainable management of the environment and assists the Council to carry out its functions in order to achieve the purpose of the Resource Management Act, 1991 (RMA). In preparing its District Plan, the Council is required to give consideration to a growing number of statutory documents. In some cases it must include these provisions in its District Plan and work programmes, where these provisions relate to the Hauraki District. The documents include:

 Resource Management Act, 1991  Hauraki Gulf Marine Park Act, 2000  National policy statements on matters of national significance  National Environmental Standards (Regulations)  Conservation Management Strategy  Regulations relating to the conservation or management of taiapure or fisheries  Water Conservation Orders  Regional Policy Statements and Regional Plans, including Regional Coastal Plans and Regional Land Transport Strategies  District Reserves Management Plan  Hauraki Iwi Environmental Plan (March 2004)  District Plans for adjoining territorial authorities  Management plans and strategies prepared under other legislation.

Through the Resource Management Implementation activity, the Council processes applications for subdivision consents, land use consents, certificates of compliance, outline plans, notices of requirement and other planning approvals. This activity sits within the Planning and Environmental Services department.

As part of its functions, the Council is responsible for controlling land use and development activities to ensure the prevention, mitigation or remediation of any adverse effects arising from them.

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The Council’s Planning staff are available to meet with applicants and the public to discuss issues arising from the implementation of the RMA and the District Plan.

The Council also monitors all resource consents to ensure compliance with consent conditions. If breaches of the RMA and/or resource consent conditions occur, the Council responds and takes appropriate enforcement action where necessary. This includes monitoring for activities that create unreasonable noise.

Collaborative Projects Waihou River Catchment Consent This is a joint resource consent held by Hauraki, Matamata-Piako, Thames-Coromandel District Councils and Waikato Regional Council that authorises maintenance and minor river control works along the Waihou River.

Kaimai Catchment Group This project will receive $345,000 over three years from the Ministry for the Environment, and is managed by the NZ Landcare Trust. The project involves a Kaimai Inter-agency Coordination Committee, made up of the Department of Conservation, the Bay of Plenty Regional Council and Waikato Regional Council.

Hauraki District Council, along with other territorial authorities, land owners and land care groups, is working alongside these agencies to identify key issues within the catchments and determine what the group could do to achieve better outcomes for the catchments.

Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Target 2015-25 Outcome measurement Resource consent applications will be decided and issued within Resource Management Act,

1991 timeframes. Measure: Resource 100% of 2015-25:100% of decisions issued Notified resource consent consents decisions within statutory timeframes decisions issued within database issued on statutory timeframes. time

(2013/14) Measure: Resource 98% of 2015-25:100% of decisions issued Non-notified resource consents decisions within statutory timeframes consent decisions are issued database issued on within statutory timeframes. time

(2013/14)

Provide a monitoring service which ensures compliance with consent conditions.

Measure: Resource New 2015-25: 100% of new consents All new land use consents consents measure are monitored within 12 months. are monitored within 12 database

months of being granted.

All LIMs are issued within agreed timeframes.

Measure: Applications 99% issued 2015-25: 100% issued on time Non-urgent LIMs issued database on time within 10 working days and (2014/15) urgent LIMs issued within

three working days.

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Community Method of Levels of Service Baseline Target 2015-25 Outcome measurement The public is satisfied with the Council’s provision of Resource Consent administrative

services. Measure: Customer 2014: 76% 2015-25: 80% of customers Percentage of customers satisfaction of satisfied satisfied with the service survey customers

they receive during the satisfied resource consent process.

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and the 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

Provide a monitoring Previously, in the 2012-22 period, 90% of land use consents were to be monitored service which ensures within three months of the implementation of the consent. However often the compliance with consent consented activities were not commenced within the three month period. For the conditions. coming 10 year period 100% of all new consents will be monitored within one year. This means instead of monitoring consents when they are not operational, they will be monitored when they have been implemented. The public is satisfied The Council monitors its customers’ satisfaction with its resource consent services with the Council’s annually. Recently the Council has endeavoured to improve the level of service provision of Resource customers receive during both the building and resource consent processes; Consent administrative improvements to the service received can be directly measured using the customer services. satisfaction survey. This approach reflects the Council’s desire to ‘roll out the red carpet, not the red tape’, thereby encouraging development and growth in the District. For the 2015-25 period, there is an increased target for the percentage of customers satisfied –from 70% to 80%.

Possible future changes to Levels of Service

At this stage the only identified upcoming changes in the levels of service may be as follows:

 accommodating any legislative changes to the Resource Management Act, 1991(RMA)  further alignment with the proposed Regional Policy Statement provisions  development of appropriate planning provisions for the Kaiaua area to be incorporated into the Hauraki District Plan  accommodating the Regional Policy Statement Implementation agreement  further recognition of the resource management issues of relevance to tangata whenua, including future co-governance arrangements with iwi.

Each of these is process dependant, and at this stage the outcome for each is not certain enough to determine how current levels of service will be affected.

The Council will also look at aligning with any resource management collaboration initiatives arising from the development of the Waikato Plan.

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Future Directions National and Regional Standards As statutory resource management documents are adopted by Central Government and the Waikato Regional Council, such as National Policy Statements, National Environmental Standards, the Regional Policy Statement and the Regional Coastal Plan, the Council will need to ensure that its District Plan is updated to include any provisions that the Council must give effect to, and to remove any of the District Plan provisions that are inconsistent with these national and regional policy documents.

Potential Hauraki District Plan Changes Kaiaua Now that the Hauraki District Plan is operative and the Franklin District Plan Changes that affect Kaiaua are completed, the next process for the Council to address is a Plan Change incorporating the Kaiaua area into the Hauraki District Plan. This will, in turn, change the regulatory planning framework for the Kaiaua area so that there is a consistent approach with the remainder of the District.

Private The Council is sometimes approached by developers or other interested parties to amend the Hauraki District Plan through Private Plan Changes. Requests may consist of the rezoning of land in order to allow for the development of the land for residential or industrial use, or in the case of Waihi, extensions to mining activities.

The Council is unaware of any pending Plan Change requests to the Hauraki District Plan, but it is likely that there will be requests during the life of the 2015-25 Hauraki Long Term Plan.

Council In some circumstances the Council will itself initiate a Plan Change in response to changing needs, for example updating its Heritage and Significant Natural Areas schedules, or incorporating regional and central government legislative changes (such as a new National Environmental Standard) in order to keep the Hauraki District Plan statutorily compliant.

Monitoring The Ministry for the Environment is working with the Council to improve how RMA information can be better collected and shared to improve RMA processes. The output is a new National Monitoring System which replaces the RMA Survey of Local Authorities. Following development, consultation and feasibility work, there will be a staged implementation of the National Monitoring System.

The first stage of implementation includes the reporting on a set of priority information established by the Government. This will occur for the 2014/15 financial year after 30 June, 2015.

Information gathered through the National Monitoring System, and the proposals around improved performance monitoring for councils, will support future RMA reforms by providing an evidence base and trend information to monitor and evaluate any changes to RMA processes.

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What is the cost of operating the Resource Management Implementation activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE RMA Implementation 743 775 799 815 834 854 875 897 921 946 973 743 775 799 815 834 854 875 897 921 946 973

REVENUE Fees, Charges and Other Income 300 275 282 289 297 306 315 325 335 347 359 External Subsidies 0 ------Targeted Rates 0 ------General Rates 397 471 504 502 556 575 579 605 626 605 647 697 746 786 791 853 881 894 930 961 952 1,006

OPERATING SURPLUS/(DEFICIT) (46) (29) (13) (24) 19 27 19 33 40 6 33

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Building Control

What is the Building Control activity?

The Council is required to implement the provisions of the Building Act, 2004 as a Building Consent Authority and as a territorial authority to:

 ensure that new and existing buildings are safe and sanitary  protect other property from physical damage from the construction and use of buildings  ensure that the necessary controls relating to the construction of a building and its use are implemented in accordance with the NZ Building Code and the Building Act, 2004  monitor Warrants of Fitness issued for buildings used by the public.

The Council is also required to implement the provisions of the Resource Management Act, 1991 in relation to building consent applications.

How does the Council provide the Building Control activity?

The Building Control activity is managed through the Planning and Environmental Services department of the Council, which is responsible for the monitoring and control of:

 building consent applications  building compliance with statutory requirements  inspection of buildings under construction  breaches of the Building Act, 2004 and enforcement of the Act  compliance with the Fencing of Swimming Pools Act, 1987  monitoring of Building Warrants of Fitness  Project Information Memoranda (PIM) applications  implementing provisions relating to earthquake prone, dangerous or insanitary buildings.

The Council receives, processes and issues building consents, ensuring compliance with statutory requirements. With a building consent application the applicant can request a PIM, which provides the details of any special features of the land and regulatory requirements likely to be relevant to the proposed building work. Where a PIM is not requested, the Council will still issue information relating to the Resource Management Act, 1991 framework within which the construction is to occur, including land hazard information and relevant development contribution requirements, as Territorial Authority Information (TAI).

Buildings under construction are inspected to ensure compliance with specific requirements. Upon completion, once the Council is satisfied with the construction it issues a Code Compliance Certificate.

The Council monitors buildings that require Warrants of Fitness, for example buildings that are required to have specified systems such as fire alarms, emergency lighting, lifts and sprinklers. These buildings are predominantly commercial buildings within our main towns. The Council follows up with those building owners whose buildings do not have a current Warrant of Fitness.

The Council responds to breaches of the Building Act, 2004 and takes appropriate enforcement action where needed. This includes performing functions relating to earthquake prone, dangerous or insanitary buildings.

In line with the Building Act, 2004 and subsequent regulation amendments that followed, the Council improved its building consent processing to accommodate the changes to the Building Code and other associated legislative requirements.

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The Council was accredited as a Building Consent Authority in 2008; the Council’s accreditation is subject to a full re-assessment by an independent accrediting agency every two years. In 2009 and 2013, its quality assurance system was also included in its accreditation. The Council achieved phase three of the Building Consent Authority Accreditation Scheme in 2013. Its next accreditation audit is due in 2015.

Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Targets 2015-25 Outcome measurement Commercial and public buildings are audited for compliance with the building Warrant of Fitness (WOF) requirements under the Building Act, 2004. Measure: Annual audit of 10% of 2015-25: 10% of building WOFs are Commercial and records building audited for compliance per year. public buildings that WOFs require a warrant of audited for fitness (WOF) are compliance audited for (2013/14) compliance with WOF systems. Building consent applications will be processed within the statutory timeframes of the Building Act, 2004. Measure: Building 100% 2015-25: 100% are issued within 20 Building consent Consent processed working days of receiving the applications are Tracking within 20 application, providing the application is processed within 20 Database working days complete. working days. (2013/14) The Council consistently delivers an effective and efficient building control service. Measure: Two yearly The Council 2015-25: Maintain BCA accreditation The Council maintains International has BCA with IANZ. Building Consent Accreditation accreditation Authority (BCA) New Zealand (July 2013) accreditation (IANZ) audit standards. Privately owned swimming pools comply with the Fencing of Swimming Pools Act, 1987. Measure: Quarterly audit 100% of 2015-25: 100% of pools with potential All properties with of swimming potentially for non-compliance are inspected. swimming pools on pool register non- the Council’s register compliant with a potential for pools non-compliance are inspected inspected annually for (2013/14) compliance with the Fencing of Swimming Pools Act, 1987. Measure: Quarterly audit 10% of 2015-25: 10% of compliant pools are Properties with of swimming compliant inspected yearly, determined by compliant swimming pool register pools random selection. pools on the Council’s inspected register are inspected (2013/14) for compliance with the Fencing of Swimming Pools Act 1987.

The Council’s building consent administrative processes are satisfactory. Measure: Customer 2014: 79% of 2015-25: >80% of customers satisfied Percentage of satisfaction customers customers satisfied survey satisfied with the service they receive during the building consent process.

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Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

The Council’s building The Council monitors its customers’ satisfaction with its building consent services consent administrative annually. Recently the Council has endeavoured to improve the level of service processes are customers receive during both the building and resource consent processes; satisfactory. improvements to the service received can be directly measured using the customer satisfaction survey. This approach reflects the Council’s desire to ‘roll out the red carpet, not the red tape’, thereby encouraging development and growth in the District. For the 2015-25 period, there is an increased target for the percentage of customers satisfied – from 70% to 80%.

Possible future changes to Levels of Service

Considerable effort has been made to ensure the levels of service being provided to the community by this activity are appropriate, given the statutory framework the activity works within. However, as a result of possible legislative or accreditation changes in the future, it is possible there may be impacts on these service levels.

At this stage there are no identified upcoming changes in the levels of service for the life of the Plan, except greater collaboration with other Waikato Councils as detailed below.

Collaborative Projects

The Council is a member of the Waikato Building Consent Group of Councils which aim to provide an improved and more consistent building consent process across the seven Waikato Councils. There will be a shift to online consenting for the processing of building consent applications for the Group during the term of this Hauraki Long Term Plan. As of 1 August, 2013, the Group consists of the Building Control Units from:

 Hauraki District Council  Otorohanga District Council  Matamata-Piako District Council  Waikato District Council  Waipa District Council  Waitomo District Council  Hamilton City Council.

Future Directions

Changes to the earthquake provisions in the Building Act have been made, arising from the Christchurch earthquakes, and it is likely that further changes will occur as the lessons from the Christchurch events are identified and addressed.

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Programmed Actions for 2015-25 Building Consent Authority accreditation In 2015, as part of the Building Consent Authority accreditation requirements, the Council will have its bi-annual audit by the national accreditation agency (IANZ) to ensure it is continuing to meet the accreditation standards necessary to function as a Building Consent Authority.

Building Act Review In 2009 the Government agreed to a Terms of Reference for a review of the Building Act, 2004 to reduce the costs, but not the quality, of the building control system.

In August 2010, in response to the review findings, the Government identified several changes necessary to reform the building and construction sector in order to make it easier, more efficient and more cost effective for New Zealanders to build good quality homes and buildings.

The Government’s changes are targeted to provide:

 clearer accountabilities for owners, designers, builders and building consent authorities  consumer protection and remedy changes, including new general remedies  risk-based consenting which will ensure that the amount of checking and inspection required is aligned to the complexity of the work, and the skills and the capabilities of the people doing the work  a nationally consistent and efficient building regulatory system.

The implementation of changes as a result of the review of the Building Act, 2004 is a significant and important programme of work for the Ministry of Business, Innovation and Employment. The mix of regulatory and other changes identified in the review will be implemented, in collaboration with the building and construction sector, over a number of years. The aim is for this is to lead to a building and housing market that has both the skills and the productivity to deliver good quality, affordable homes for New Zealanders.

Building (Earthquake-prone Buildings) Amendment Bill The Government has introduced legislation into Parliament to change the system for managing earthquake-prone buildings. The new system is designed to strike a better balance between protecting people from harm in an earthquake and managing the costs of strengthening or removing earthquake-prone buildings.

A summary of the proposed legislation is as follows:

 Hauraki District is in a medium risk area for earthquakes so any Earthquake Prone buildings have 10 years to have an assessment completed, and 25 years for the strengthening of the buildings up to 33% of the current building code.  A publicly available national register on the seismic capacity of buildings will be required to be established.  Work will be prioritised on certain buildings, including buildings of particular significance in terms of public safety, and buildings that could, if they collapsed in an earthquake, impede a transport route of strategic importance in an emergency.  Local councils will be enabled to issue building consents for required work on earthquake- prone buildings without requiring other upgrades in certain circumstances.  Owners of Category 1 Historic Places buildings may apply for an extension of up to 10 years.  Owners of other buildings will also be able to apply for exemptions from the national timeframe for strengthening. This provision is intended to apply where the effects of failure are likely to be minimal, and could, for example, include low use rural churches and farm buildings with little passing traffic.

The Building (Earthquake-prone Buildings) Amendment Bill has been referred to the Local Government and Environment Select Committee.

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What is the cost of operating the Building Control activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Building Services 1,035 1,011 1,033 1,055 1,079 1,106 1,134 1,163 1,194 1,227 1,263 1,035 1,011 1,033 1,055 1,079 1,106 1,134 1,163 1,194 1,227 1,263

REVENUE Fees, Charges and Other Income 413 400 410 421 432 445 458 472 488 504 522 External Subsidies 0 ------Targeted Rates 0 ------General Rates 559 575 607 605 671 693 698 730 755 730 780 972 975 1,017 1,026 1,103 1,138 1,156 1,202 1,243 1,234 1,302

OPERATING SURPLUS/(DEFICIT) (63) (36) (16) (29) 24 32 22 39 49 7 39

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Community Protection

What is the Community Protection activity?

Community Protection is a series of activities that involve the Council acting in a service delivery role to protect the community. This is through a number of means, including: preparing for civil defence emergencies, prevention and control measures for rural fires, ensuring adequate liquor licensing controls are in place, controlling the density of gambling venues and legal high retailers, and ensuring the safety of public places (including eating areas and pools).

The Council supports this role with its monitoring and enforcement functions in a number of areas. These include: the food hygiene controls and notifiable disease investigations under the Health Act, 1956; the number of gaming machines allowed for in the District as determined by the Council’s Class 4 Gaming Venue and New Zealand Racing Board Venue Policy; and regulation, monitoring and host responsibility education via the Council’s Local Alcohol Policy, and Local Approved Products (Legal Highs) Policy.

In order to act on emergency management and rural fire responsibilities, the Council is required to have policy and operational plans for Civil Defence and Rural Fire and to have the operational capability to put these plans into effect.

How does the Council provide the Community Protection activity? Emergency Management The Civil Defence Emergency Management Act, 2002 (CDEMA) requires essential services known as lifelines (e.g. water, wastewater and roads, telecommunications, electricity) to be able to continue functioning to the fullest possible extent during and after an emergency. It is essential that the lifeline services are resilient to emergencies and that their emergency planning is integrated with the wider community’s Civil Defence Emergency Management (CDEM) planning, so that both are effective at minimising loss and hastening a return to normal functioning. This can only be achieved by cooperative planning between the emergency services, local government and other involved agencies. The focus is on business continuity planning to ensure essential services are continued or restored to priority facilities and customers. The involved agencies are aware of these responsibilities and practise sound risk, asset and emergency management planning and coordinate this planning through arrangements such as Lifelines Groups.

Planning for emergencies in the Waikato area is undertaken at a regional, sub-regional and local level as follows:

 The Waikato Civil Defence Emergency Management Group (CDEMG) (which is a Joint Committee of all local authorities) is the Regional Group established under the CDEMA for .the provision of emergency planning within the Waikato Region. The decisions of the Joint Committee are binding on all its members. The Waikato Civil Defence Emergency Management Group provides support to the sub-regional CDEMGs within the Region. It is responsible for Civil Defence Emergency Planning at a regional level. This planning is contained in the Waikato Civil Defence Emergency Management Group Plan 2011-15.  The Thames Valley Emergency Operating Area is the sub-regional CDEMG for the Thames Valley area and is supported by the Waikato CDEMG. Its members are Hauraki, Matamata-Piako and Thames-Coromandel District Councils. This arrangement is known as the Thames Valley Combined Civil Defence Emergency Management Committee, with the Thames-Coromandel District Council being the administering authority. The primary purpose of the Committee is to deliver response functions through an Emergency Operations Centre. The Committee has developed the Thames Valley Emergency Operating Area Plan 2014-17.

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Rural Fire This activity is managed through the Thames Valley Rural Fire Authority (TVRFA) which has a Rural Fire Plan for the extended area. The TVRFA includes the Hauraki, Matamata-Piako and Thames-Coromandel Districts and the Plantation Forest Owners. The area excludes certain areas such as State Forest areas administered by the Department of Conservation and the Urban Fire Districts in the Hauraki, Matamata- Piako and Thames-Coromandel Districts.

Environmental Health The Council is required to annually inspect food premises to measure compliance with food hygiene standards. The Council inspects all food premises registered under the Food Hygiene Regulations and audits the remainder of food premises exempt from registration under the Voluntary Implementation programme for Food Control Plans in the District.

In 2013 the Council introduced a Food Safety Bylaw section into the Hauraki District Council Consolidated Bylaw, in Part 3 (Public Safety). The Food Safety Bylaw and associated schedules introduced a mandatory food grading system which has food premises graded against a Food Premises Inspection Matrix and issued with a food grading certificate of one of the A to E grades. There is no category C, as a grade C would suggest an average standard of premises or a passing grade. Food premises will either be graded as high quality with A or B grades, or below quality with D and E grades. The grading certificate is then displayed on the premises in clear view of the public. The publicly displayed certification system encourages good food handling and hygiene standards within the District.

The Council also has responsibilities under the Health Act, 1956 and other relevant legislation to deal with issues relating to:

 notification and follow up for infectious diseases  public and school swimming pools  health nuisances.

The Council is responsible for noise control policy and service delivery; it has contracted out the noise control service delivery. The goal of the Council and the service delivery contract is to ensure that people’s enjoyment of their property or environment is not compromised by excessive noise from other properties and activities. Noise control officers are available 24 hours per day.

Control of Gambling Venues In order to meet legislative requirements, and due to a commitment to countering social issues associated with problem gambling, the Council has a Class 4 Gaming Venue and New Zealand Racing Board Venue Policy which is currently based on a ‘sinking lid’ approach; this allows the Council to place a cap on the number of pokie machines in the District in an effort to reduce the number to the national average.

Liquor Licensing Pursuant to the Sale and Supply of Alcohol Act, 2012, the Council has established a District Licensing Committee which is responsible for the licensing of liquor outlets and issuing of manager’s certificates. Once adopted, Council’s Local Alcohol Policy will inform liquor licensing decisions made in relation to licensed premises in the District. In recent times, to help deal with the issues associated with problem drinking, the Council has implemented a liquor ban in public places in its three main urban centres (incorporating the 50 km/h speed zones).

Psychoactive Substances Pursuant to the Psychoactive Substances Act, 2013, the Council has adopted a Local Approved Products (Legal Highs) Policy which restricts the location and density of premises that want to sell psychoactive products in the District.

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Hazard Zone Monitoring Since the subsidence event in 2001 in Barry Road, Waihi, the Council has been involved in the on-going investigation and monitoring of the hazard zones associated with the old workings and stopes from mining in earlier times. A report on the subsidence event and the mechanisms likely to be the cause of its occurrence was prepared by Geological and Nuclear Science (GNS) for the Underground Mines Working Party that was formed to investigate the event. Following the publication of this report, hazard areas were identified; provisions relating to these hazard areas and what activities can be undertaken over them have now been included in the Council’s District Plan.

The Council received an updated report from GNS in 2008 which recommended additional subsidence monitoring to the south and east of the existing Martha mine pit. This new monitoring regime has been implemented as recommended.

Collaborative Projects Emergency Management (Civil Defence) – Regional and Sub-Regional The Council is a member of the Thames Valley Emergency Operating Area along with Matamata-Piako and Thames-Coromandel District Councils.

The Thames Valley Emergency Operating Area is a Civil Defence Emergency Management shared services function of three District Councils, primarily for the purpose of delivering response functions through an Emergency Operations Centre in the event of an emergency. This arrangement is overseen by the Thames Valley Combined Civil Defence Emergency Management Committee. The Management Committee has developed the Thames Valley Emergency Operating Area Plan 2014-17 which was adopted by the three Councils in May 2014.

The arrangement is supported by the Waikato Civil Defence Emergency Management Group; the Thames Coromandel District Council is the administering Authority.

Hauraki Plains – Hazard Assessment The Hauraki District Council and the Waikato Regional Council have jointly reviewed hazard and risk assessment issues on the Hauraki Plains. This review has been undertaken as both Councils have major infrastructural assets on the Hauraki Plains relating to the Waihou and Piako River Schemes, including drainage, flood control and foreshore stopbanks.

The assessment, entitled ‘An Overview of Natural Hazards in the Hauraki District’, can be viewed on Waikato Regional Council’s website www.waikatoregion.govt.nz The analysis covered all natural hazards but had a focus on the areas of largest risk, being flooding, weather extremes and climate change.

The current infrastructure’s ability to provide the levels of protection needed, if climate change and sea level rise affect this area, needs to be monitored as the science around this issue becomes more certain. The Council has adopted a policy on climate change and has amended its engineering standards to take account of potential increases in rainfall intensity, which is predicted to be the major effect of such change.

Rural fire This activity is managed through the Thames Valley Rural Fire Authority (TVRFA) which has a Rural Fire Plan for the extended area. The TVRFA includes the Hauraki, Matamata-Piako and Thames-Coromandel Districts and the Plantation Forest owners. The area excludes certain areas such as State Forest areas administered by the Department of Conservation and the Urban Fire Districts in the Hauraki, Matamata-Piako and Thames-Coromandel Districts.

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Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Targets 2015-25 Outcome measurement The Council will enforce the Food Act 2014. Measure: Food 100% 2015-25: 100% of all food All known food premises are premises monitored premises are assessed monitored for compliance with database (2013/14) annually relevant legislation.

The Council will enforce the NZ Standards for Public Pools. Measure: Audit of 100% 2015-25: 100% of public and Public and school pool inspection audited school pools are audited monitoring records are audited records for (2013/14) during the swimming season. for compliance with the New compliance Zealand Standard 5826 for Public Pools.

The Council will implement the Sale and Supply of Alcohol Act, 2012 Measure: Audit of 100% 2015-25: 100% are issued New and renewed Liquor application issued within a month Licence Managers’ Certificates records within a are issued within one month of month receiving the application, (2013/14) providing there are no objections and the application is complete. Measure: Audit of 100% 2015-25: 100% are issued New and renewed On/Off and application issued within three months Club Liquor Licences are records within three issued within three months of months receiving the application, (2013/14) providing there are no objections and the application is complete.

Excessive noise complaints will be responded to by the Council. Measure: Contractor’s New 2015-25: 100% investigated All complaints regarding monthly report measure within two hours excessive noise are (taken from 2015 investigated within two hours of Service the complaint being received. Request Database) The Council will issue fire permits for open air fires during a restricted fire season. Measure: Application 99% issued 2015-25: 100% of Applications for fire permits are records within time applications issued within two issued within two working days, (2013/14) working days, prior to the prior to the date of the fire date of the fire The community is aware of fire bans and restrictions in place. Measure: Information is New 2015-25: The Council, on behalf of the available on measure >3 newspaper articles per Rural Fire Committee, will website, and annum provide information to the published in >3 articles updated on Community on fire bans and local website per annum restrictions within the District. community newspapers

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Community Method of Levels of Service Baseline Targets 2015-25 Outcome measurement

The Council and the Community are ready for a Civil Defence emergency.

Measure: Information is New 2015-25: Relevant Information is provided to the available on measure information is reviewed and community on being prepared website, and updated on the website for and what to do during an published in quarterly. emergency. the HDC news Relevant information is page published in the HDC news page quarterly. Members of the community are Customer 2014: 41% 2015/16: 45% are prepared prepared for a Civil Defence satisfaction are emergency (i.e. have an survey prepared emergency plan, emergency kit and can survive for three days).

Changes to Levels of Service

The Council has made several changes to levels of service since the last Hauraki Long Term Plan was developed for the 2012-22 period. Levels of service help the community understand what service they can expect to receive from the Council. The table below explains how the levels of service have changed between the last Hauraki Long Term Plan and Annual Plan, and this 2015-25 Hauraki Long Term Plan.

Levels of Service Changes in Levels of Service

The Council and the At a national and regional level there is a desire to improve the preparedness of the Community are ready for community for a civil defence emergency. As a result, the Council is changing the a Civil Defence frequency (from annually to quarterly) that it updates the community regarding civil emergency. defence preparedness information. Not only will updated information be available on the website quarterly, it will also be published in the local newspaper. The community is aware This level of service has changed its focus from simply having fire restrictions in of fire bans and place, to emphasising the need for the community to be aware of fire bans and the restrictions in place. restrictions in place. As a result, at least three articles and website updates will be communicated to the community per year.

Possible future changes to Levels of Service

Considerable effort has been made to ensure the levels of service being provided to the community by this activity are appropriate, given the statutory framework the activity works within. However, due to possible legislative or accreditation changes in the future, it is possible there may be impacts on these service levels as a result of any changes.

The Sale and Supply of Alcohol Act, 2012 enabled the Council to develop a Local Alcohol Policy (LAP) for its District. A LAP is a set of policy criteria and decisions made by a territorial authority in consultation with its community about the sale and supply of alcohol in its geographical area. A LAP provides District Licensing Committees with a policy framework which they must take into consideration when making decisions on licence applications. This enables the Committees to better meet the objectives of the Sale and Supply of Alcohol Act, 2012 within a local policy framework.

At the time of finalising this Plan the Council was still finalising Appeals to its draft Local Alcohol policy.

The Councils Local Alcohol policy goals are to:

 contribute to the Hauraki District being a safe and vibrant District  reflect local community’s character and amenity and their values and preferences  encourage licensed environments that foster positive, responsible drinking behaviour  minimise alcohol related harm in the Hauraki District.

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The Local Alcohol Policy objectives are to:

 regulate the trading hours of club, on, off and special licences  regulate the location of off-licensed premises  ensure licensed premises take appropriate measures to minimise alcohol harm  provide clear guidance to the District Licensing Committee.

Future Directions Possible Review of Rural Fire District The National Rural Fire Authority, which is part of the New Zealand Fire Service Commission, is responsible for coordinating rural fire management activities across New Zealand. One of the key objectives for the National Rural Fire Authority is promoting and supporting the voluntary amalgamation of rural fire authorities within regions, with the aim of improving the effectiveness of the rural fire sector. The key benefits of enlarged rural fire districts are increased capacity through the pooling of resources, and improvement management.

The future structure of the Thames Valley Rural Fire Group could be reviewed within the next two years in line with the stated goals of the National Rural Fire Authority.

Programmed Actions for 2015-25 Hazard Zone Monitoring This monitoring in Waihi is associated with the old underground mines and stopes from the late nineteenth and early twentieth century and prior to the consenting of the Martha Pit operation.

Following the release of the 2008 GNS review of the original hazards report from 2002 (developed as a result of the Barry Road, Waihi subsidence in 2001), the Council resolved to proceed with the recommended extended monitoring programme on the southern and eastern sides of the current pit. Monitoring points have now been established, extending across Seddon Street to the State Highway and around the eastern side of the pit down Grey Street and the streets that run off Grey Street.

Monitoring is being undertaken on a regular basis and the results will give the Council a clear indication of any movement that is still occurring as a result of ground movement towards the unfilled stopes in the hazard areas.

Freedom Camping Act, 2011 The Freedom Camping Act, 2011 allows for freedom camping to generally be permitted in a District unless restricted or prohibited through local authority bylaws or through Department of Conservation freedom camping notices. The Act creates an offence of freedom camping in an area where freedom camping is not permitted, with a nationally consistent infringement fee of $200. The Act also allows councils to address the negative effects associated with freedom camping, for example leaving behind waste, through the issuing of infringement notices. The Council has made a bylaw specifying the areas in which freedom camping is prohibited or restricted, and the conditions of any restriction. The Council will be reviewing this Bylaw along with the Reserve Management Plans in 2016/17.

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Food Act, 2014 The new Food Act aims to give food businesses the tools to manage food safety themselves, based on the level of risk associated with the kinds of food produced and in a way that suits their business.

When the new Act comes fully into force (1 March 2016 at the latest), it will replace the Food Act 1981. After this time, food businesses will transition in groups into the new rules over a staggered three year period. At the end of the three year period, the Food Hygiene Regulations 1974 will be revoked. However the Council’s role as a registration authority and first point of contact for food businesses will continue.

The central feature of the new Act is a sliding scale where businesses that are higher-risk from a food safety point of view will operate under more stringent food safety requirements and checks than lower-risk food businesses.

The new law recognises that each business is different, and is a positive step forward from the old Act and its one-size-fits-all approach to food safety.

Higher-risk food businesses – that prepare and sell meals or sell raw meat or seafood, for example – will operate under a written Food Control Plan (FCP) where businesses identify food safety risks and steps they need to take to manage these risks. The FCP can be based on a template or businesses can develop their own plan to suit their individual business.

Businesses that produce or sell medium risk foods – like non-alcoholic beverages, for example – will come under National Programmes. There are three levels of National Programmes, which are based on the level of food safety risk. These businesses won’t have to register a written plan, but will have to make sure they are following the requirements for producing safe food that will be set out in regulations. This includes having to register their business details, keep minimal records and have periodic checks.

Unlike the old Act, the new Act provides a clear exemption to allow Kiwi traditions like fundraising sausage sizzles or home baking at school fairs to take place. The only rule will be that food that is sold must be safe. The Act only covers food that is sold or traded.

What is the cost of operating the Community Protection activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Rural Fires 141 152 158 164 162 167 178 177 182 195 195 Emergency Management 174 261 274 286 275 282 309 297 306 336 325 Health 310 295 302 308 315 323 331 340 349 359 369 Abandoned Mine Workings Monitoring 42 46 47 48 49 50 51 52 54 55 56 Liquor Licensing 14 84 86 88 89 92 94 96 99 101 104 Ground Settlement 0 2 2 2 2 2 2 2 3 3 3 681 840 869 896 892 916 965 964 993 1,049 1,052

REVENUE Fees, Charges and Other Income 74 74 76 78 80 82 85 87 90 93 97 External Subsidies 0 ------Targeted Rates 0 ------General Rates 552 722 773 780 842 873 909 927 964 964 1,007 626 796 849 858 922 955 994 1,014 1,054 1,057 1,104

OPERATING SURPLUS/(DEFICIT) (55) (44) (20) (38) 30 39 29 50 61 8 52

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Animal Control

What is the Animal Control activity?

The Council has a statutory requirement to be involved in Animal Control with a particular emphasis on:

 dog registration systems and implementation of these  education of dog owners and the public  enforcement of dog and animal control issues to minimise danger, distress or nuisance from dogs and other animals  impounding of wandering dogs and stock.

The Dog Control Act, 1996 is the legislation governing the control of dogs in the District. In order to enforce the Act the Council maintains a Dog Control Policy, as well as the Consolidated Bylaw which in part pertains to restrictions imposed on dog owners, along with restrictions on other animals including chickens and other livestock.

How does the Council provide the Animal Control activity?

The Council sets the policy framework and establishes the operating systems for Dog and Animal Control, and contracts out its Dog and Animal Control service delivery. The contractors work within the policy framework established by the Council

Animal Control issues are notified to the Council offices and these are then dealt with by the contractor as necessary. The Council operates a dog pound in Paeroa and a stock pound in Waihi.

Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Targets 2015 - 2025 Outcome measurement The Council will ensure compliance with the Dog Control Act, 1996 and bylaw, and the Stock Impounding Act, 1955, to provide for public safety. Measure: Registration 99% 2015-25: >97% of known Known dogs in the District are records registered dogs are registered registered annually. (2013/14)

Measure: Contractor’s 100% 2015-25: 100% of complaints Complaints about wandering stock monthly report responded responded to within three on public roads are responded to to in time hours within three hours. (2013/14) Measure: Contractor’s 100% 2015-25: 100% of complaints Dog attack complaints are monthly report responded responded to within two responded to within two hours. to in time hours (2013/14) Dog and stock owners are aware of their rights and responsibilities. Measure: HDC news Four 2015-25: Four articles Education articles regarding dog database articles per published per year. and stock ownership are published year in public news media. (2013/14)

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Possible future changes to Levels of Service

The Dog Control Act, 1996 is continually being updated and amended. It is likely this will change the compliance requirements for the Council in the future but the impacts are currently unknown by the Council.

Future Directions

At this stage the only expected change is accommodating the bylaw amendment with dog prohibitions on any new sections of the Hauraki Rail Trail.

Programmed Actions for 2015-25 Dog Control Policy The Council’s current Dog Control Policy was adopted in August 2011. A review of this policy is scheduled to take place in 2015.

Dog Pound The Paeroa Dog Pound is programmed to be reroofed in 2015/16 at a cost of $30,000.

What is the cost of operating the Animal Control activity?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

EXPENDITURE Dog Registration 276 264 271 277 284 291 299 308 317 327 338 Animal Control 199 209 214 219 224 230 236 243 250 257 266 475 473 485 496 508 521 535 551 567 584 604

REVENUE Fees, Charges and Other Income 291 281 288 296 303 312 322 332 343 354 367 External Subsidies 0 ------Targeted Rates 0 ------General Rates 164 181 192 191 212 219 221 231 240 232 249 455 462 480 487 515 531 543 563 583 586 616

OPERATING SURPLUS/(DEFICIT) (20) (11) (5) (9) 7 10 8 12 16 2 12

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Statutory Reporting

What topics are covered in this section?

 Council-Controlled Organisations  Council Organisations (those exempt from Council-Controlled Organisation reporting requirements)  Variations between the Council’s Joint Waste Management and Minimisation Plan and the 2015-25 Hauraki Long Term Plan  Variations between the Council’s Assessment of Water and Sanitary Services and the 2015-25 Hauraki Long Term Plan

SECTION

Statutory Reporting F - 1

Council-Controlled Organisations

The Local Government Act, 2002, requires the Council to include in its Long Term Plan information on Council-Controlled Organisations (CCOs) in which the Council is a shareholder. In accordance with Schedule 10, Part 1, Section 7 of the Local Government Act, 2002, the following section includes:

 identification of the CCOs relevant to the Hauraki District Council  the Council’s relevant policies and objectives in relation to ownership and control of each CCO  descriptions of the nature and scope of the activities provided by each CCO  the key performance targets by which performance is to be judged.

The Council is a shareholder in two Council-Controlled Organisations; –Local Authority Shared Services Limited (LASS) and New Zealand Local Government Funding Agency Limited (LGFA).

Local Authority Shared Services Limited

In December 2005 the local authorities in the Waikato Region established Local Authority Shared Services Limited (LASS) as a company and a Council-Controlled Organisation (CCO), for the purpose of working closely together on mutually beneficial joint projects to achieve better outcomes and cost savings for share holders.

Shareholders LASS is jointly owned by the 12 local authorities of the Waikato Region. Each local authority has a single share, with the shareholding for each being 8.33%. The local authorities are: Waikato Regional Council, Hamilton City Council, Hauraki District Council, Matamata-Piako District Council, Otorohanga District Council, Rotorua District Council, South Waikato District Council, Taupo District Council, Thames- Coromandel District Council, Waikato District Council, Waipa District Council and Waitomo District Council.

LASS has twelve directors, each representing a shareholder Council. Unless otherwise agreed by the appointing Councils, each director shall be a chief executive of a local authority. In addition the board may appoint up to three professional directors to supplement the director’s expertise.

Council policies and objectives relating to CCOs The Council does not have any significant policies or objectives about ownership and control of LASS. Appointment of a director to the company, who represents the Hauraki District Council, aligns with the Council’s Appointment and Remuneration of Directors Policy.

LASS objectives The objective of the company is to provide local authorities of the Waikato Region with a vehicle to procure and develop shared services that demonstrate a benefit to ratepayers. It also has the objective to provide a company structure under which local authorities can develop and promote services to other local authorities.

At the request of the Waikato Mayoral Forum, LASS will also identify ways to contribute to a greater extent in terms of shared services and also at the strategic collaboration level. In 2012 and 2013 the Mayoral Forum agreed to establish six working parties to investigate collaborative opportunities for the shareholders in the areas of governance, planning, two waters (water and wastewater), roading,

F - 2 Statutory Reporting economic development and policies and bylaws. Each working party is lead by a Council Chief Executive in conjunction with a group of Mayors/Chairs from the Waikato Mayoral Forum. LASS has been made available as a support entity to assist these working parties.

New services that are intended to be initiated under the LASS umbrella will only be adopted where a business case shows that they provide some form of benefit to the shareholders.

Nature and scope of activities There are currently three major operations under the LASS umbrella, plus a support role for collaborative initiatives with the Waikato Mayoral Forum. The major operations are: the Shared Valuation Data Service (SVDS), the Waikato Regional Transport Model (WRTM) and joint procurement of insurance services.

The SVDS is an operational system which provides both timely and accurate valuation data to member councils and shareholders. The SVDS has become the accepted valuation service provider in the region.

Secondly, the WRTM provides accurate information to councils for their transport modelling requirements. The model became fully operational in February 2010. This model is the only recognised strategic transport modelling resource in the Waikato Region.

Thirdly, LASS is a party to the joint contract between LASS, its shareholding councils and Aon Limited for insurance brokerage services and various collective insurance policies.

An additional range of shared service opportunities are being considered, for example, in the area of human resource initiatives and further procurement initiatives.

Details about the LASS and its performance will be included in the Council’s Annual Report published at the end of each financial year.

Performance targets Performance targets relate to the levels of services that are current or under development. It is envisaged that these targets will change as new services are developed.

The Statement of Intent is informed by the annual survey and independent benefits review. The performance targets as outlined in the 2014/15 Statement of Intent are:  Cost Control: Administration expenditure shall not exceed that budgeted by more than 5% unless prior approval is obtained from the Directors.  Cashflow: The Company maintains an overall positive cashflow position.  Reporting: The Board will provide a written report on the business operations and financial position of the LASS on a six monthly basis.  Statutory Adherence: There will be an annual report to Directors that all statutory requirements of the LASS are being adhered to.  SVDS availability: Shared Valuation Data Services is available to users at least 99% of normal working hours.  SVDS Sales Data Delivery: At least 98% of agreed timelines are met for sale and property files that have been delivered to the FTP server for access to customers.  SVDS Major Enhancement Development Hours: All capital enhancement development work is supported by a business case approved by the advisory group.  WRTM: All required modelling reports are actioned within the required timeframe.  WRTM: That the base model adheres to “Screenline Validation Standards” as set out in the New Zealand Transport Agency Economic Valuation Manual as indicated by an external independent peer review.  WRTM: A full report on progress of the model will be provided to the LASS Board twice each year.  Insurance: The key performance indicators from appendix 4 of the brokerage contract are met.  Joint Procurement: Any joint procurement projects deliver as per project approved objectives.  Advice on the Waikato Mayoral Forum: In response to requests from shareholders, the Company will provide regular reports and updates to the Waikato Mayoral Forum regarding progress with shared service initiatives.  Independent Benefit Review update: The independent benefit review plan will be reviewed, updated and signed off by the LASS Board by 31 May of the year immediately preceding the year the plan relates to.

Statutory Reporting F - 3

 Independent Benefit Reviews: Those reviews timetabled in the plan for the current year to be completed by the end of the year.

New Zealand Local Government Funding Agency

New Zealand Local Government Funding Agency Limited (LGFA) was enabled under the Local Government Borrowing Act, 2011 and was incorporated on 1 December 2011. LGFA is a Council- Controlled Organisation (CCO) operating under the Local Government Act, 2002.

LGFA’s primary purpose is to provide more efficient funding costs and diversified funding sources (including foreign currency) for New Zealand local authorities.

Shareholders LGFA is owned by 30 local authority councils from across New Zealand, and the Crown. The Hauraki District Council is one of these shareholders. The LGFA Board of Directors comprises independent and non-independent directors, the majority of which are required to be independent.

Council policies and objectives relating to CCOs The Council does not have any significant policies or objectives about ownership and control of LGFA. Appointment of a director to the company, who represents the Hauraki District Council, aligns with the Council’s Appointment and Remuneration of Director’s Policy.

LGFA objectives The primary objective of LGFA is to optimise the debt funding terms and conditions for participating local authorities including:

 providing annual savings in annual interest costs  making longer term borrowings available  enhancing the certainty of access to debt markets.

Nature and scope of activities  LGFA raises debt funding either domestically or offshore in either New Zealand dollars or foreign currency, and provides debt funding to New Zealand local authorities that enter into all the relevant arrangements with it and comply with the LGFA lending policies.

Details about LGFA and its performance will be included in the Council’s Annual Report published at the end of each financial year.

Performance targets The performance targets as outlined in the 2014/15 Statement of Intent are:

 Operate with a view to making a profit sufficient to pay a dividend in accordance with the stated Dividend Policy.  Provide at least 50% of aggregate long-term debt funding for participating local authorities.  Ensure products and services are delivered at a cost that does not exceed the forecast for issuance and operating expenses.  Maintain credit rating equal to the New Zealand Government sovereign rating where both entities are rated by the same rating agency.  Achieve financial forecasts.  Meet or exceed the Performance Targets in section 5 of the 2014/15 statement of Intent (specific cost of funds).  Comply with LGFA Treasury Policy.

F - 4 Statutory Reporting

Council Organisations

Exempted Council Controlled Organisations

While it is not a requirement of the Local Government Act, 2002 (LGA) to report in the Long Term Plan on Council Organisations, those Council Organisations exempt by Council from the definition of a Council- controlled organisation (CCO) are listed below for information purposes. These organisations have been exempt by Council from the specific reporting requirements of a CCO in accordance with section 7 of the LGA, because of their small size and the nature of the activities they undertake. The Council must review these exemptions every three years and, in the event that the scope and scale of any of their operations change over time, the Council may revoke their exemption.

The Council does not have any significant policies or objectives about ownership or control of council organisations. The appointment of directors/representatives to council organisations, who represent the Hauraki District, aligns with Council’s Appointment and Remuneration of Director’s Policy.

A list of all other Council Organisations can be found in the appendices of this Hauraki Long Term Plan.

Civic Assurance Civic Assurance is the trading name of the New Zealand Local Government Insurance Corporation Limited. Pursuant to section 6(4)(f) of the LGA, Civic Assurance has been specifically exempt from the Council-Controlled Organisation provisions of the Act. This means Council does not undertake a triennial review of the CCO exemption. There are 78 local authorities in New Zealand, and 67 out of 78 are shareholders in Civic Assurance, including the Hauraki District Council. Civic Assurance is owned by its member Councils.

Civic Assurance provides a range of financial services to its members including:

 a range of general insurances.  Local Authority Protection Programme Disaster Fund (LAPP) – being a Charitable Trust that provides the cover for a local authority’s share of emergency management expenditure (with the balance being met by the Government). 46 of the 67 members of Civic Assurance are in LAPP.  a Kiwisaver scheme specifically designed for local government.  a Mutual Fund (Riskpool) that provides liability cover and claims management services to its 54 members.

Destination Coromandel Trust Destination Coromandel is the Regional Tourist Organisation for ‘The Coromandel’ which includes the geographic area of both the Hauraki and Thames-Coromandel District Councils. Destination Coromandel’s objectives are to promote ‘The Coromandel’ as a leading tourist and visitor destination by marketing tourist and visitor attractions, and to support, promote and assist in activities and projects which will increase the opportunities for employment in the tourism and visitor industries.

The main objective is to achieve year on year growth and increase the contribution of tourism to gross domestic product. The Destination Coromandel Trust has three trustees who are appointed by the two Councils.

A review of the Destination Coromandel Trust’s exemption from the CCO provisions of the LGA was undertaken in January 2015 and the exemption is next due for review by April 2018.

Statutory Reporting F - 5

Hauraki Rail Trail Charitable Trust The Hauraki Rail Trail Charitable Trust is the governance entity for the Hauraki Rail Trail and includes one representative from each of the Hauraki, Matamata-Piako and Thames-Coromandel District Councils, and three Iwi representatives selected from iwi that have Mana Whenua status over the route of the Hauraki Rail Trail.

The Hauraki Rail Trail Charitable Trust’s purpose under the Trust Deed include:

 leasing and/or licensing land from any of the Settlors or any other party for the use of the cycleway;  developing and constructing extensions and additions to the cycleway;  maintaining all of the cycleway;  raising funds to carry out and complete any of the above charitable purposes.

The Trust holds primary responsibility for managing and maintaining the Hauraki Rail Trail and for completing any future development. This will ensure that the Hauraki Rail Trail is managed with appropriate representation from all three Councils and Iwi.

A review of the Hauraki Rail Trail Charitable Trust’s exemption from the CCO provisions of the LGA was undertaken in October 2014 and the next review is due by October 2017.

Martha Trust The Martha Trust is a body established to take stewardship of specific land areas defined in the Martha Mining Licence, following the closure of the open pit mine and the cessation of all rehabilitation works required by the current licences and consents. These lands incorporate part of the open pit on the eastern end and also the tailings dams and associated land. The Trust members are the Chief Executives and Mayor/Chairperson of the Hauraki District Council and Waikato Regional Council and two Iwi representatives.

The nature and scope of the activities that will be provided by the Trust in due course are significant. However at the present time none of those functions are operative, although some supporting mechanisms of the Martha Trust exist, such as the Trust Structure and the Capitalisation Bond that will fund the Trusts activities. The Trust will not actually become an operative entity until such time as the closure and rehabilitation conditions are finalised. This is estimated to be beyond the life of the 2015-25 Hauraki Long Term Plan.

The Martha Trust was exempted from the CCO provisions of the LGA in September 2012 and the exemption is due for review by September 2015.

Thames Valley Rural Fire Authority The Thames Valley Rural Fire Authority (also known as the Thames Valley Rural fire Committee) is a formal partnership arrangement between Matamata-Piako, Hauraki and Thames Coromandel District Councils. The Authority was constituted by notice (07/09/2000) in the ‘New Zealand Gazette’ as the Rural Fire Authority for the Thames Valley Rural Fire District, for the purpose of providing and implementing fire control measures on lands within its boundaries. The Fire District was increased in size by the inclusion of the Kaiaua Block in Hauraki District Council’s area in July 2013.

The Thames Valley Rural Fire Authority has statutory obligations to carry out functions of a Rural Fire Authority as set out within the Forest and Rural Fires Act 1977 and the Forest and Rural Fires Regulations 2005. The Thames Valley Rural Fire Plan is produced in accordance with the Forest and Rural Fires Regulations 2005. The Thames Valley Rural Fire Authority has been delegated the responsibility of conducting ongoing reviews of the Plan, making any such amendments as may from time to time be required.

The Thames Valley Rural Fire Authority was exempted from the CCO provisions of the LGA in December 2012 and the exemption is due for review by December 2015.

F - 6 Statutory Reporting

Variations between the Council’s Joint Waste Management and Minimisation Plan and the 2015-25 Hauraki Long Term Plan

Introduction The Local Government Act, 2002 requires the Council to identify and explain any significant variations between the proposals outlined in its 2015-25 Hauraki Long Term Plan and its adopted Joint Waste Management and Minimisation Plan (WMMP).

Background All local authorities are required to develop and adopt a WMMP under section 43 of the Waste Minimisation Act, 2008. The purpose of a WMMP is to outline a local authority’s strategy to manage waste more efficiently and reduce the amount of waste being put in landfills by enhancing the recycling and re-use of materials.

Eastern Waikato Joint Waste Management and Minimisation Plan The Hauraki, Matamata-Piako and Thames-Coromandel District Councils worked together to develop a Joint Waste Management and Minimisation Plan (JWMMP) which was adopted in 2012 and is due for review by 2018. The benefits to the three Councils working together to develop this plan included establishing more consistent standards and levels of service across the Districts, and the sharing of costs and resources. The Councils were of the opinion that this joint approach would lead to higher quality and more efficient services for waste and recycling, including increased waste minimisation.

As signalled in the JWMP the three Councils have since awarded two joint contracts across all three Districts for:

 The provision of refuse and recycling services covering kerbside collections for refuse and recycling. The contract includes the day to day operation of all refuse transfer stations for the three Councils. This is a 10 year contract.  The disposal of residual waste to landfill (waste that cannot readily be recycled). This is a seven year contract.

The contracts require that the contractor have full regard for the achievement of the goals and objectives contained in the JWMMP.

Variations between the Joint Waste Management and Minimisation Plan and the Hauraki Long Term Plan There are no significant variations from the JWMP contained in the 2015-25 Hauraki Long Term Plan.

Further information A full copy of the JWMMP is available on Council’s website www.hauraki-dc.govt.nz and at the Council offices in Paeroa, Ngatea and Waihi.

Statutory Reporting F - 7

Variations between the Council’s Assessment of Water and Sanitary Services and the 2015-25 Hauraki Long Term Plan

Introduction The Local Government Act, 2002 requires the Council to undertake an Assessment of Water and Sanitary Services (AWSS) from time to time. For each Hauraki Long Term Plan the Council is required to outline any variations between the current AWSS and the Long Term Plan.

What is the Assessment for? The Hauraki District Council adopted its first AWSS in 2005. Since 2005 the Local Government Act has been amended (in 2009 and 2014) and the scope of the AWSS is now more limited, and focussed on public health risks. The purpose of the AWSS is now to assess, from a public health perspective, the adequacy of water and sanitary services available to communities. In making such an assessment the following matters need to be considered:

 the health risks arising from any absence or deficiency in water or other sanitary services  the quality of services available to communities within the district  the current and estimated future demands for such services  the extent to which drinking water meets applicable regulatory standards  the actual or potential consequences of stormwater or sewage discharges within the district.

For Hauraki District, this requires an assessment of:

 water treatment and supply  wastewater treatment and disposal  stormwater management  cemeteries  public toilets.

As a result of the changes to the Act, a review of the 2005 assessment was undertaken to provide a new assessment of the matters as now required in section 126 of the Local Government Act, 2002. The Council adopted this review as its current 2014 AWSS and has revoked the previous 2005 Assessment.

The current 2014 AWSS provided an important input to the preparation of the Council’s Asset Management Plans and the 2015-25 Hauraki Long Term Plan.

Variations between the 2014 AWSS and the Hauraki Long Term Plan There are no variations from the 2014 AWSS contained in the 2015-25 Hauraki Long Term Plan.

Further Information A copy of the 2014 AWSS is available on the Council’s website www.hauraki-dc.govt.nz and at the Council’s offices in Paeroa, Ngatea and Waihi.

F - 8 Statutory Reporting

Appendices

 Appendix 1: Council Committees, Council Controlled Organisations, Council Organisations and Management Team

 Appendix 2: Our Hauraki

 Appendix 3: List of Bylaws, Policies, Strategies and Plans

 Appendix 4: Legislation

 Appendix 5: List of Council’s Assets

 Appendix 6: One Network Roading Classification - Hauraki District Transition Plan

 Appendix 7: Glossary

SECTION

Appendices G - 1

Appendix 1: Council Committees, Council Controlled Organisations, Council Organisations, and Management Team

Standing Committees

A Standing Committee is a permanent Committee of Council. Hauraki District Council has a number of Standing Committees and these are identified below. Please note that the Mayor is appointed as an ex- officio member to all Council Committees and Sub-committees, except the Judicial Committee, the District Plan Committee and the District Licensing Committee.

The Operations Committee The Judicial Committee The Operations Committee deal with all The Judicial Committee handles matters relating operational matters relating to Council’s to the Resource Management Act, 2002 including activities as approved in the Operative Hauraki consents, monitoring and enforcement. Hearings Long Term Plan and/or Operative Annual Plan on matters relating to dogs and swimming pools for the Infrastructure, Community Services and are also dealt with. Community Development Activities. The Judicial Committee meets, as required, on The Operations Committee meets on the third to the second to last and fourth to last Mondays of last Wednesday of each month. each month (depending on the month format).

Committee Members: Committee Members:  Toby Adams (Chairperson)  Gill Leonard (Chairperson)  Gill Leonard (Deputy Chairperson)  Julie Bubb (Deputy Chairperson)  All Councillors  Paul Milner  Greg Harris  Harry Shepherd

The Audit and Risk Committee The District Plan Committee The Audit and Risk Committee develop, review The District Plan Committee handles matters and make recommendations on financial risk relating to District Plan changes, the District Plan management, and financial accountability, review and resource management policy issues. policies and procedures. The District Plan Committee meets as required The Audit and Risk Committee meets every 2 and agreed with the Chairperson. months, and otherwise as required. Committee Members: Committee Members:  Bruce Gordon (Chairperson)  John Tregidga (Chairperson)  Paul Milner (Deputy Chairperson)  Bruce Gordon (Deputy Chairperson)  Julie Bubb  Gill Leonard  Greg Harris  Ashley Tubman  Independent Representative

G - 2 Appendices

Ward Committees The Council currently has three Ward Committees that deal with local community issues (predominantly non-infrastructural assets) specific to their Ward: Plains, Paeroa and Waihi. All three Ward Committees meet on the third to last Tuesday of each month at the Paeroa Office at 9.00am, 12.30pm and 2.30pm respectively.

Plains Ward Paeroa Ward Waihi Ward  Gill Leonard (Chairperson)  Julie Bubb (Chairperson)  Harry Shepherd  Greg Harris (Deputy  Paul Milner (Deputy (Chairperson) Chairperson) Chairperson)  Max McLean (Deputy  Bruce Gordon  Toby Adams Chairperson)  Don Swales  James Thorp  Ashley Tubman  Pam Keall

The Consultative Committee Water and Waste This Committee was established to manage the consultation required with special interest groups within the District regarding water and waste issues.

Meetings are on the third to last Tuesday each quarter at the Paeroa Office at 10.00am.

Committee Members:  Greg Harris (Chairperson)  James Thorp (Deputy Chairperson)  Harry Shepherd  Bruce Gordon

The District Licensing Committee The District Licensing Committee handles all powers, duties and discretions vested in the Council by the Sale and Supply of Alcohol Act, 2012.

Meetings are held on the last Monday of each month, as required, or as decided by the Chairperson.

Committee Members:  Paul Milner (Chairperson)  Gill Leonard (Deputy Chairperson)  Mary Carmine  Denis Taylor  John Goodman

Mana Whenua Forum The Mana Whenua Forum has recently been established as a Standing Committee of Council; the Forum consists of Iwi representatives and members of the Council. The Forum will meet a minimum of four times per year.

Committee Members:  The Mayor  Two representatives from each of the following Iwi: - Ngati Hako - Ngati Maru - Ngati Paoa - Ngati Tamatera - Ngati Tara Tokanui - Ngati Whanaunga - And any other group that has Mana Whenua status in this District.

Appendices G - 3

Other Committees

The Council also has the following Committees that meet only as and when required:

Economic Development Sub-Committee Road Safety Committee Committee Members: Committee Members:  Toby Adams (Chairperson)  Greg Harris (Chairperson)  Gill Leonard (Deputy Chairperson)  James Thorp (Deputy Chairperson)  Paul Milner  Ashley Tubman

Joint Committees

Council is a member of the following Joint Committees:

Waikato Spatial Plan Joint Committee Committee Members  John Tregidga (Alternative Bruce Gordon)

Council Controlled Organisations

The Council appoints Directors to the following Council Controlled Organisations (CCO):

 Local Authority Shared Services  New Zealand Local Government Funding Agency Ltd

Council also appoints Directors to the following CCO that it has exempted from CCO requirements pursuant to section 7 of the Local Government Act:

 Hauraki Rail Trail Trust  Destination Coromandel Trust  Martha Trust  Thames Valley Rural Fire Authority

Council Organisations

Following each election the Council appoints Elected Members to represent the Council on a number of external committees. Some of these committees are required to have a Council representative whereas others invite the Council to appoint a member by choice. The tables below identify the key committees that have one or more Elected Members appointed to them by the Council and/or the Ward Committees.

Committee Council Appointments

Creative NZ Harry Shepherd Regional Land Transport Committee John Tregidga (Alternate Greg Harris) Regional Council Waihou Valley Scheme and Piako River Greg Harris (Alternative Don Swales) Scheme Liaison Committee Hauraki Gulf Forum John Tregidga (Alternative Max McLean) Joint Golden Cross Mine Closure Committee (with Waikato John Tregidga, Harry Shepherd Regional Council) Thames Valley Combined Civil Defence Emergency John Tregidga, Max McLean Management Committee

G - 4 Appendices

Committee Council Appointments

Go Waihi Max McLean Positive Paeroa James Thorp Waihi Community Vision (Council rep.) John Tregidga (Alternate Max McLean)

Waihi Community Vision (Waihi Ward rep.) Harry Shepherd

Hauraki District Council Management Team

Chief Executive Mr L D (Langley) Cavers

Corporate Services Community Services District Engineer Planning and Environmental Manager Manager Services Manager Mr D (Duncan) Peddie Mr S (Steve) Fabish Mr K D (Ken) Thompson Mr P (Peter) Thom

Business Units Board of Management

Members of the Board  Chief Executive, Langley Cavers (Chairperson)  District Engineer, Ken Thompson

Business Unit Managers  Construction & Maintenance Manager, Mike Voykovich  Technical Services Manager, Adrian de Laborde  Workshop Manager, Peter Smith

Appendices G - 5

Appendix 2: Our Hauraki

Overview of Hauraki District

The Hauraki District Council was formed in 1989 when the Hauraki Plains and Ohinemuri County Councils, and the Paeroa and Waihi Borough Councils, were amalgamated as part of a major restructuring of local government in New Zealand.

The Hauraki District is a relatively small territorial area and is geographically very diverse. From the Seabird Coast, to the reclaimed, rich dairy lands of the Hauraki Plains which border the Firth of Thames, to the rugged Karangahake and Kaimai/Coromandel ranges, the Golden Valley farmlands in the north east and to the Pacific Ocean at Whiritoa. The total area of the District is 1,269 square kilometres. The District’s population, according to the last New Zealand Census in 2013, was 17,811 people.

G - 6 Appendices

Hauraki District has a strong agricultural base, with three towns servicing this sector; it has significant gold and silver mines in Waihi and is a growing provider of tourist related activities.

Each year a number of major events take place throughout the Hauraki District which attracts thousands of visitors, including the Paeroa Battle of the Streets Motorcycle Race and the Highland Tattoo.

Undoubtedly the greatest attraction in the Hauraki District is the Karangahake Reserve which attracts over 115,000 people every year to a mix of history, landscapes and bush, inter-woven by truly amazing walking tracks and tunnels. Approximately 130,000 people visit the reserve every year.

A link from Waihi to Waikino via the historic Goldfields Railway also brings many thousands of visitors to the Victoria Battery site on the outskirts of the Karangahake Reserve. Waihi is home to the Cornish Pump house which sits on the perimeter of the giant Martha Mine open pit and the walking track around the pit rim. The mine itself has great viewing platforms and an excellent interactive display at the information centre. The Waihi Heritage Museum with its famous ‘thumb collection’ is also an important link with the town’s rich history.

The ‘L&P bottle’ in Paeroa stands seven metres high, a reminder to visitors of the origins of the “World Famous in New Zealand” soft drink. Recently upgraded and surrounded by a refurbished park, the bottle has graced many thousands of camera lenses. Paeroa, with its numerous antique stores, also has its own museum with many displays and information on the District’s interesting past.

Ngatea and the Hauraki Plains also have a unique history. A huge land drainage programme commenced at the turn of the century; this saw the vast swamp lands, which stretched inland almost to Matamata, begin to transform into what is now some of the most profitable farmland in New Zealand. Visitors to Ngatea can view this well documented slice of history at an extensive photo gallery at the Ngatea Memorial Hall, or by calling into the Council’s Ngatea Service Centre Library. For its size, the Plains Ward has excelled when it comes to hockey. It has one of the best all-weather facilities in the country and attracts players from as far afield as Auckland and the greater Waikato.

The Kaiaua area, which is located along the western shores of the Firth of Thames, is a popular destination for bird watchers from all over the world. This stretch of coastline is the breeding ground for many types of shorebirds including the New Zealand Dotterel and the Oystercatcher. The Kaiaua area is relatively remote with small communities and beautiful scenery. It attracts a high number of domestic and international tourists, especially during the summer months, and Rays Rest (which is near Kaiaua) is a popular stopover for people travelling in campervans.

Opened in 2012 the Hauraki Rail Trail has been an instant success with cyclists on the track all year round. As entrance to the trail can be made at almost any stretch, cyclists are able to make their journey as short or as long as they wish. Hauraki District Council is continuing to work in conjunction with Matamata-Piako and Thames-Coromandel District Councils on extensions to the Hauraki Rail Trail. Once these are complete the Rail Trail will be a two day cycle ride that will showcase some of those District’s best scenery and rich pioneering history. Planning is underway to build a new section of Trail from Kaiaua to Kopu.

Appendices G - 7

Hauraki District 2013 Census and other statistics

Geography The Hauraki District covers a total of 1,269 square kilometres. It borders the Western Bay of Plenty District above Waihi Beach, extends north east across to Whiritoa Beach, west toward Te Aroha and the Matamata-Piako District, then north to the Kaiaua coast, Firth of Thames and the Coromandel Peninsula.

Hauraki District population The 2013 census undertaken by Statistics New Zealand estimated that the Hauraki population is 17811 (as of 30 June 2013).

Usually Resident Population Area Unit 2001 2006 2013  From 2001 to 2006 the resident population of Kaiaua N/A 678 786 Hauraki District increased by 423 people (or 2.55%) to 17,190 people. Ngatea 1,071 1,164 1,248  From 2006 to 2013 the resident population of Hauraki Plains 2,424 2,541 2,508 Hauraki District decreased by 51 people (or 0.29%) to 17,811 people. Turua* 1,317 1,335 1,317  At the time of the 2006 Census the Hauraki Kerepehi 501 513 429 District population accounted for 0.42% of New Ohinemuri 3,045 3,156 3,111 Zealand’s resident population.  At the time of the 2013 Census the Hauraki Paeroa 3,879 3,975 3,885 District population accounted for 0.39% of New Waihi 4,524 4,500 4,527 Zealand’s resident population. Total 16,761 17,862 17,811

*Please note that Turua includes Turua and its surrounding rural area.

Age  In 2013 a higher proportion of District residents Age Structure (2013) were in the 45-64 and 65+ year age categories 85+ when compared to New Zealand as a whole. In 80‐84 2013, 21.9% of people in Hauraki District were 75‐79 aged 65+, compared with 14.3% of the total 70‐74 New Zealand population. 65‐69  The District had a smaller proportion of people 60‐64 in the ‘working’ age group (the 15-24 and 25-44 55‐59 year age groups) of 33% compared to 42% of 50‐54 the total New Zealand population. 45‐49  In 2013, 19.5% of the population was aged 40‐44 under 15 years, compared with 20% of the total 35‐39 New Zealand population. 30‐34  The median age is 45.5 years for people in 25‐29 Hauraki District. For New Zealand as a whole, 20‐24 the median age is 38.0 years. 15‐19  Generally the trends in the age of the Hauraki 10‐14 District’s population have not changed since 5‐9 the 2001 census. 0‐4

‐6.0% ‐4.0% ‐2.0% 0.0% 2.0% 4.0% 6.0% ‐ NZ ‐ Hauraki District

G - 8 Appendices

Ethnic Groups Ethnicity  The Hauraki District has a higher proportion of residents in European and Māori ethnic groups than New Zealand as a whole and less people Other Ethnicity in each other ethnic group.  Just over 21% of the residents in the District Middle Eastern/Latin said they were of Māori ethnicity – which American/African compares with around 14.9% for New Zealand.  Around 85.2% of people living in the District said they belong to the European ethnic group Asian (compared to 74% for New Zealand).  In 2006 78% of people living in the District said Pacific Peoples they belong to the European ethnic group (compared to 67% for New Zealand). Mäori

Māori  3,588 Māori usually live in the Hauraki District, European an increase of 270 people, or 8.1% since the 2006 census. 0% 20% 40% 60% 80% 100%  In 2013 6.7% of Māori in Hauraki District were aged 65 years and over, compared with 5.4 New Zealand Hauraki percent of New Zealand's Māori population.  In 2013 35.3% of Māori in Hauraki District were aged under 15 years compared with 33.8% for all Māori in New Zealand.

Employment and Labour Force Status Employment and Labour Force (2013)  In 2013 the Hauraki District had a labour force of 7,506 people, a decline of 264 since 2006. 4%  A lesser proportion of the District population was in paid employment compared to New 38% Zealand (52% compared to 62.3%).  The District had a higher proportion of its 39% residents (aged 15 years and over) classified as not in the labour force than the rest of New Zealand (39% compared to 32.9%). 14% 5%

Occupation Hauraki District Employed Full‐time

 The most common occupational group in Hauraki District Employed Part‐time Hauraki District is 'managers', and 'professionals' is the most common Hauraki District Unemployed occupational group in New Zealand.  The most common occupational group for Hauraki District Not in the Labour Force Māori in Hauraki District is 'labourers', and 'labourers' is the most common occupational group for Māori in New Zealand. Hauraki District Work and Labour Force Status Unidentifiable

Appendices G - 9

Income Personal Income- 15 Years and Over  In 2013 44.4% of people aged 15 years and over in Hauraki District had an annual income Not stated of $20,000 or less, compared with 38.2% of people for New Zealand as a whole.  In 2013 50.9% of Māori aged 15 years and $100,001 or more over had an annual income of $20,000 or less, compared with 46.3% of Māori in New Zealand. $70,001-$100,000

Highest Qualification $50,001-$70,000

 In 2013 Hauraki District had 4,305 (30%) Range Income people living in the District over the age of 15 $30,001-$50,000 years old without any qualification. This compares to the rest of New Zealand average $20,001-$30,000 of around 21%  In 2013 Hauraki District had 7% of its population with a Bachelors degree or an $20,000 or less equivalent or post-grad/masters qualification compared to 20.0% of the rest of New Zealand. 0 2000 4000 6000

Family Type* Family Type in Hauraki District  Couples with children make up 32.6% of all families in Hauraki District, while couples without children make up 48.9% of all families. 18%  In New Zealand, couples with children make up 49% 41.3% of all families, while couples without children make up 40.9% of all families.  In 2013 18.6% of families in Hauraki District 33% were one parent with children families, while one parent with children families make-up 17.8% of families for New Zealand as a whole. Couple without children * Please note that ‘family type’ does not include Couple with child(ren) people living alone as the term family applies to two or more people. One parent with child(ren)

Occupied Dwellings  In 2013 there were 7,709 occupied dwellings in Hauraki District, 379 more than in 2006 when there were 7,330 occupied dwellings.

Languages Spoken  After English, the next most common language spoken in Hauraki District is te reo Māori, which is spoken by 4.6% of people. For New Zealand as a whole, the most common language apart from English is te reo Māori, spoken by 3.7% of people.  In 2013 90.0% of people in Hauraki District speak only one language, compared with 79.8% of people for all of New Zealand.

G - 10 Appendices

Business Top 5 Industries in Hauraki District Business demographic data for the year ended February 2013 showed that:  There were 2,560 business locations (geographic units) in Hauraki District compared with 507,908 for all of New Zealand. This is a 15% decrease of 3.1 percent from the year ended 27% February 2006 for Hauraki District. 16%  There were 5,600 paid employees in Hauraki District compared with 1,941,040 for all New Zealand. This is an increase of 14.8 percent from 18% 24% the year ended February 2006 for Hauraki District.

The Waikato has by far the highest proportion of Health care and social assistance Dairy herds in New Zealand with 3,536 herds or 29.6% of the total New Zealand Dairy herds. Hauraki Agriculture, forestry and fishing has the fourth highest number of herds in the Region with 408 herds or 11.5%. Education and training

With 408 dairy farms, making up a total of 41,723 Retail trade ‘dairy’ hectares the industry is significant to the local economy. The average sized farm is 102 hectares, Manufacturing and the average sized herd per farm is 285 cows, making up a total of 116,248 cows across the District. With the total production of milk solids being 38,478,088kg in the 2013/14 financial year the value of the Districts production amounted to $326 million.

Dairy makes up 10% or the Districts employment 9000 with 600 people being employed in 2013/14. A further 800 people are employed in agricultural sectors within Hauraki. 8000

(Statistics: Dairy NZ 2014 & NZIER 2015)). 7000

Non- Additionally, in the Hauraki District there are 195 primary beef farms and approximately 12 sheep farms 6000 industries (Statistics NZ 2012). Alongside these we have a splattering of agricultural farms including kiwifruit, citrus and berries and a number of nurseries. Not 5000 surprisingly, the Hauraki District retail sector has a rural service and support focus. 4000

The Martha Mine (open pit), Trio mine (underground) and the newly developed Correnso mine 3000 (underground) in Waihi are three of only a handful of Primary industries mines in the world that operate within an established 2000 residential community. As such, a paramount link to the mine’s success and ongoing development is in its relationship with the Council and the surrounding 1000 community. Like dairying, the mining industry contributes significantly to the Hauraki District’s 0 economy. 112 staff are employed in Waihi’s mining Total employees operation alone, and another 263 are contracted. In 2014 over $46 million was injected into the local economy, with a further $39 regionally from mining.

Appendices G - 11

Appendix 3: List of Bylaws, Policies, Strategies and Plans

Hauraki District Council Consolidated Bylaw

The bylaws were developed by the Council in consultation with the community, and are local legislation enforceable by the Council and other nominated agencies such as the Police. The Hauraki District Council bylaws intend to provide laws applicable only to Hauraki District that in general protect the public from nuisance; protect, promote and maintain public health and safety; and minimize the potential for offensive behaviour in public places.

The Council reviewed its bylaws in 2007 and 2008. As a consequence the Hauraki District Council Consolidated Bylaw was adopted and is now in effect, and is available on the Council’s website www.hauraki-dc.govt.nz. The Consolidated bylaw has the following Chapters:

 Part 1: Introduction  Part 2: Land Transport  Part 3: Public Safety  Part 4: Trade Waste and Wastewater  Part 5: Water Supply  Part 6: Cemeteries  Part 7: Land Drainage  Part 8: Solid Waste  Part 9: Wharves

All other previously existing bylaws (including many from the amalgamating Councils) were repealed except the Fire Prevention Bylaw Involving Vegetation, 1993 due to reviews that were happening at the time of the fire service. It is expected that this Bylaw will be incorporated into the Consolidated Bylaw at its next review.

Plans, Policies, Strategies and Standards

There are a number of National, Regional and District plans, policies, strategies and standards that the Council must take into account or give effect to in its decision-making processes.

Some plans and strategies are very detailed and place constraints on the decisions the Council can make. Others are at a higher level and provide guidance or recommend particular approaches to the Council. In some cases Council reports back to these strategies in order for them to ascertain movement towards progression of targets.

National Policy Statements/National Environmental Standards The Central Government has a number of National Policy Statements (NPS) and National Environmental Standards (NES) that are currently in effect or under development. Local government must ensure that its plans, policies and strategies are consistent with the NPSs and the NESs. A full list of NPSs and NESs is available in the Policy Development section.

G - 12 Appendices

National Strategies  Safer Journeys: New Zealand’s Road Safety Strategy 2010-2020, Ministry of Transport  NZ Energy Strategy to 2050:Powering out Future: Towards a Sustainable Low Emissions Energy System 2007, Ministry of Business, Innovation and Employment  NZ Biodiversity Strategy 2000, Department of Conservation  NZ Waste Strategy 2010, Ministry for the Environment  NZ Tourism Strategy 2015, Ministry of Tourism  NZ National Transport Strategy 2008, Ministry of Transport  National Civil Defence Emergency Management Strategy 2008, Ministry of Civil Defence and Emergency Management  NZ Positive Ageing Strategy 2001, Ministry of Social Development  Youth Services Strategy 2015, Ministry of Social Development  NZ Disability Strategy 2001, Ministry of Health

Regional Plans, Policy Statements, Strategies  Regional Plan, Waikato Regional Council  Regional Policy Statement, Waikato Regional Council  Proposed Regional Policy Statement, Waikato Regional Council  Regional Coastal Plan, Waikato Regional Council  Regional Land Transport Strategy, Waikato Regional Council  Waikato District Health Board Strategic Plan  Regional Energy Strategy, Waikato Regional Council  Walking and Cycling Strategy for the Region, Waikato Regional Council.

Hauraki District Council Plans and Strategies  Water and Sanitary Services Assessment  Civil Defence Emergency Plan  District Reserves Management Plan  Economic Development Strategy  Thames Valley Rural Fire District Plan  Hauraki District Council Positive Ageing Strategy  Walking and Cycling Strategy  Waste Management and Minimisation Plan  Hauraki Operative District Plan

Policies A policy is a deliberate direction or plan of action to guide the process of making important organisational decisions, and can be used as a tool to identify alternative programs or spending priorities to achieve a rational outcome.

A policy differs from rules or law. While law can compel or prohibit behaviours, a policy merely guides actions toward those that are most likely to achieve a desired outcome.

Hauraki District Council has arranged its policies into five categories which determine their purpose so that they can be easily identified and understood as political, management, financial and administrative mechanisms to reach explicit goals. The categories are:

 Legislative - requirements from Central Government.  Regulatory - requirements to ensure community compliance with national standards and guidelines.  Financial – requirements from Central Government.  Community – driven by the community.  Council – internal policies to help guide the process of making important decisions to achieve rational outcomes.

Appendices G - 13

Legislative Policies

Title Date adopted Review date

Appointment and Remuneration of Directors for April 2015 April 2020 Council Organisations Policy Thames Valley Emergency Operating Area Plan 28 March 2014 January 2016 2014-2017 Code of Conduct 13 Nov 2013 Nov 2016 Class 4 Gambling Venue and New Zealand 24 Sept 2014 Feb 2017 Racing Board Gambling Venue Policy 2014 March 2015 September 2015 March 2016 Local Governance Statement 2014 Sept 2014 (internal review every six months – external review every three years) Amended from time to time (as stated in Significance and Engagement Policy 26 Nov 2014 LTP) 2025 (from time to time – within ten years, Water & Sanitary Services Assessment 2015 as stated in the LTP) Waste Management and Minimisation Plan Feb 2012 Jul 2017 Waste Assessment

Regulatory Policies

Title Date adopted Review date

Development Contributions & Financial June 2015 2018 Contributions Policy 2015 Dog Control Policy Aug 2011 (review every 3 - 4 years) Earthquake Prone and Dangerous and Insanitary Feb 2016 Aug 2010 Buildings Policy (review every 5 - 6 years) Thames Valley Rural Fire Authority – RURAL Fire 30 Sept 2013 2015 Plan 2013-15 Sale of Liquor Policy To be superseded by Local Alcohol Policy (this is TBA TBA currently a Provisional Policy) Local Approved Products (Legal Highs) Policy 24 Sept 2014 February 2019 (Review every five years)

G - 14 Appendices

Financial Policies

Title Date adopted Review date

Financial Strategy June 2015 2018 Investment Policy June 2015 2018 Liability Management Policy June 2015 2018 Postponement Policy June 2015 2018 Rates Remissions  Rating of Community, Sporting and Other Organisations  Remission of Excess Water Rates  Remission of Penalties  Remission of Rates Assessed in Error  Remission of Wastewater Rates assessed on Educational Establishments 2018 LTP (mini review every 3 years and June 2015  Remission of Uniform Annual General full review every 6 years) Charges on Contiguous Rating Units in Separate Ownership, Used Jointly as a Single Entity  Rates Remissions – Policy under Section 108: Multiple Owned Māori Freehold Land  Remission of Water Rates to Particular Rating Units Rating Policy Jun 2015 2018 Revenue and Finance Policy Jun 2015 2018

Community Strategies and Policies

Title Date adopted Review date Arts and Culture Policy Aug 2012 May 2018 (every six years) District Reserves Management Plan Sep 2006 Sept 2012 (review every 5 - 6 years) Domestic Violence Policy Aug 2011 Aug 2016 (review every 5 - 6 years) HDC Positive Ageing Strategy Nov 2010 May 2016 (review every 5 - 6 years) Youth (Taiohi) Policy June 2006 2015 Sustainability Policy Aug 2010 2015 Economic Development Strategy June 2013 June 2016 Walking and Cycling Strategy July 2010 June 2015 (review every five years)

The Council also has a number of personnel and human resources policies as part of its requirement to be a good employer.

Appendices G - 15

Appendix 4: Legislation

Summary of key legislation that local government is responsible for (or partly responsible for) implementing

Key Legislation Summary of legislation Building Act, 2004 The Building Act, 2004 provides the framework for New Zealand’s building control system. It aims to protect public health, safety and general welfare as they relate to the construction and occupancy of buildings and structures. The Building Act establishes the building code and the building consent process which the Council is responsible for administering as a Building Consent Authority. Civil Defence Emergency Management The Civil Defence Emergency Act, 2002 provides for the Act, 2002 establishment of local civil defence management groups which are responsible for identifying, assessing and managing risk associated with civil defence emergencies. These groups are required to develop their own civil defence emergency management plans which must be consistent with any national civil defence strategies and plans. This Act also provides for local authorities to consult and communicate with the community about any risk and how this risk is being managed. Conservation Act, 1987 The purpose of the Conservation Act, 1987 is to promote the conservation of New Zealand’s natural and historic resources. To achieve this purpose the Act establishes the Department of Conservation (DoC) and outlines its functions. The Act also defines conservation areas. The Council works closely with DoC regarding the management of conservation areas that are within or adjoining this District. Dog Control Act, 1996 The purpose of the Dog Control Act, 1996 is to provide for the care and control of dogs. Under this Act the Council must adopt and review a dog control policy which outlines dog registration requirements for the district, dog control areas in the district, any special provisions in relation to dogs that are considered to be dangerous or menacing and any provisions for damage caused by dogs. Heritage New Zealand Pouhere Taonga The purpose of the Heritage New Zealand Pouhere Taonga Act, 2014 Act, 2014 is to promote the identification, protection, preservation, and conservation of the historical and cultural heritage of New Zealand. The Act establishes and defines the functions of the Heritage New Zealand Pouhere Taonga, Land Transport Management Act, 2003 The Land Transport Management Act, 2003 (LTMA) sets out the requirements for the operation, development and funding of the land transport system. The LTMA establishes the New Zealand Transport Agency which is responsible for the allocation of funding for central and local government land transport projects and services. Local Authorities (Members’ Interest) There are two key components to the Local Authorities (Members’ Act, 1968 Interest) Act, 1968 (LAMIA). The first key component is the ‘contracting rule’ which prohibits members of local authorities from being involved in contracts with the authority when total payments exceed $25,000 in any financial year. The second is the ‘discussing and voting rule’ which prohibits members from voting or taking part in local authority business on any matter that they have financial interest in, unless their interest is in common with the public. Local Electoral Act, 2001 The Local Electoral Act, 2001 sets out the rights of local voters, procedures for the conduct of local elections and options for the local electoral systems.

G - 16 Appendices

Key Legislation Summary of legislation Local Government Act, 1974 The Local Government Act, 1974 was the main piece of legislation defining the powers and responsibilities of local government. It was largely replaced by the Local Government Act, 2002 although some parts of the 1974 Act continue to be in force. Local Government Act, 2002 The Local Government Act, 2002 (LGA) is the main piece of legislation that defines the functions, powers and duties of local government. The LGA promotes transparency and accountability of local government to communities. It provides for local government to meet the current and future needs of communities for good quality infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses. The LGA requires local authorities to develop and review Long Term Plans, Annual Plans, Annual Reports and a number of other polices and plans. Local Government Official Information The purpose of the Local Government Official Information and and Meetings Act, 1987 Meetings Act, 1987 (LGOIMA) is to promote openness, transparency and accountability in local government. The LGOIMA provides for information held by a local authority to be made available to the public except when the information can be withheld for special circumstances such as commercial sensitivity. Reserves Act, 1977 The Reserves Act, 1977 provides for the acquisition of land for reserves, the classification of reserves and defines who is responsible for the management and preservation of reserves. The Council is the administrating body for a number of reserves in the Hauraki District and under the Reserves Act, 1977 is required to develop and review a Reserves Management Plan. Resource Management Act, 1991 The Resource Management Act, 1991, (RMA) is the main piece of legislation that sets out how we should manage our environment. It is based on the concept of sustainable management of our resources and aims to create an integrated and comprehensive approach to resource management. The RMA also establishes the resource consent process and under the RMA the Council is responsible for processing subdivision and land use consents. Sale and Supply of Alcohol Act, 2012 The objective of this Act is that: (a)the sale, supply, and consumption of alcohol should be undertaken safely and responsibly; and (b) the harm caused by the excessive or inappropriate consumption of alcohol should be minimised. The Act gives Council the power to develop a Local Alcohol Policy for the District. Treaty of Waitangi Act, 1975 The Treaty of Waitangi Act, 1975 (TWA) recognised the Treaty of Waitangi in New Zealand law for the first time. The key purpose of the TWA was the establishment of the Waitangi Tribunal which is a commission of inquiry charged with making recommendations on claims made relating to the Crown’s breaches of the Treaty of Waitangi. Since the establishment of this Act the Treaty of Waitangi has been increasingly incorporated into Government legislation, Waste Minimisation Act, 2008 The Waste Minimisation Act, 2008 (WMA) aims to encourage waste minimisation through the development of mechanisms such as the voluntary product stewardship scheme. The WMA brings all the waste management responsibilities of territorial authorities under a single Act and clarifies the roles and responsibilities of territorial authorities regarding waste management and minimisation. Under the WMA the Council must develop and review a Waste Management and Minimisation Plan.

Appendices G - 17

Legislation which imposes responsibilities on local government (full list)

 Airport Authorities Act, 1966  Hazardous Substances and New Organisms  Animals Law Reform Act, 1989 Act, 1996  Animal Welfare Act, 1999  Health Act, 1956  Arts Council of New Zealand Toi Aotearoa Act,  Health (Drinking Water) Amendment Act, 2007 2014  Health and Safety in Employment Act, 1992  Auctioneers Act, 2013  Heritage New Zealand Pouhere Taonga Act,  Bill of Rights Act, 1990 2014  Biosecurity Act, 1993  Holidays Act, 2003  Building Act, 2004   Building Research Levy Act, 1969  Housing Act, 1955  Burial and Cremation Act, 1964  Human Rights Act, 1993  Bylaws Act, 1910  Impounding Act, 1955  Cadastral Survey Act, 2002  Income Tax Act, 2007  Charities Act, 2005  Insolvency Act, 2006  Citizenship Act, 1977  Interpretation Act, 1999  Civil Aviation Act, 1990  Land Act, 1948  Civil Defence Emergency Management Act,  Land Drainage Act, 1908 2002  Land Transfer Act, 1952  Civil List Act, 1979  Land Transport Act, 1998  Climate Change Response Act, 2002  Land Transport Management Act, 2003  Commerce Act, 1986  Limitation Act, 2010  Companies Act, 1993  Litter Act, 1979  Conservation Act, 1987  Local Authorities (Members’ Interests) Act,  Consumer Guarantees Act, 1993 1968  Copyright Act, 1994  Local Electoral Act, 2001  Counties Insurance Empowering Act, 1941  Local Government Act, 1974  Crimes Act, 1961  Local Government Act, 2002  Criminal Records (Clean Slate) Act, 2004  Local Government Official Information and  Crown Minerals Act, 1991 Meetings Act, 1987  Disabled Persons Community Welfare Act,  Local Government (Rating) Act, 2002 1975  Machinery Act, 1950  District Courts Act, 1947  Major Events Management Act, 2007Marine  Dog Control Act, 1996 and Coastal Area (Takutai Moana) Act, 2011  Earthquake Commissions Act, 1993  Minimum Wage Act, 1983  Electricity Act, 1992  Municipal Insurance Act, 1960  Employment Relations Act, 2000  National Provident Fund Restructuring Act,  Energy Companies Act, 1992 1990  Environment Act, 1986  New Zealand Bill of Rights Act, 1990  Environmental Protection Authority Act, 2011  New Zealand Geographic Board (Nga Pou  Equal Pay Act, 1972 Taunaha o Aotearoa) Act, 2004  Fair Trading Act, 1986  New Zealand Library Association Act, 1939  Fees and Travelling Allowances Act, 1951  New Zealand Public Health and Disability Act,  Fencing Act, 1978 2000  Fencing of Swimming Pools Act, 1987  Oaths and Declarations Act, 1957  Finance Act (No. 2), 1941  Occupiers Liability Act, 1962  Financial Reporting Act, 2003  Ombudsmen Act, 1975  Fire Services Act, 1975  Parental Leave and Employment Protection  Food Act, 2014 Act, 1987  Forest and Rural Fires Act, 1977  Plumbers and Gasfitters and Drainlayers Act,  Freedom Camping Act, 2011 2006  Gambling Act, 2003  Privacy Act, 1993  Gas Act, 1992  Property Law Act, 2007  Goods and Services Tax Act, 1985  Prostitution Reform Act, 2003  Government Roading Powers Act, 1989  Protected Disclosures Act, 2000

G - 18 Appendices

 Psychoactive Substances Act, 2013  Te Ture Whenua Māori Act, 1993 Māori Land  Public Bodies Contracts Act, 1959 Act, 1993  Public Bodies Leases Act, 1969  Telecommunications Act, 2001  Public Works Act, 1981  Transit New Zealand Act, 1989  Queen Elizabeth the Second National Trust  Treaty of Waitangi Act, 1975 Act, 1977  Trespass Act, 1980  Racing Act, 2003  Trustees Act, 1956  Railways Act, 2005  Unit Titles Act, 1972  Rating Valuations Act, 1998  Utilities Act, 2010  Rates Rebate Act, 1973  Valuers Act, 1948  Reserves Act, 1977  Wages Protection Act, 1983  Residential Tenancies Act, 1986  Walking Access Act, 2008  Resource Management Act, 1991  Waste Minimisation Act, 2008  River Boards Act, 1908  Water Supplies Protection Regulations, 1961  Sale and Supply of Alcohol Act, 2012  Weather tight Homes Resolution Services Act,  Secondhand Dealers and Pawnbrokers Act, 2006 2004  Wild Animal Control Act, 1977  Secret Commissions Act, 1910  Wildlife Act, 1953  Securities Act, 1978  Securities Transfer Act, 1991  Smoke-free Environments Act, 1990  Soil Conservation and Rivers Control Act, 1941  Sovereign’s Birthday Observance Act, 1952  Standards Act, 1988  Statutory Land Charges Registration Act, 1928  Summary Offences Act, 1981

Appendices G - 19

Appendix 5: List of the Council’s Assets

Base Statistics As at 30 June 2015

Roading Total road length 632.4 km  Sealed roads 515.80 km  Unsealed roads 116.6 km  Footpaths 111.55 km Number of streetlights 1,876 Wastewater Waste water treatment plants 7 Sewer reticulation length (total) 138.4 km Number of households connected 6,152 Water Public water treatment plants 9 Water reticulation length 575 km Number of households connected Approximately 7,111 Stormwater Urban stormwater, length of piped drains 92.4 km Urban stormwater, length of open drains 38.3 km Number of manholes 1154 Number of pump stations 3 Land Drainage Rural land drainage, length of drains 6518 km Length of stop banks 49 km Number of flood gates 93 Number of pump stations 4 Flood Protection Length of stop banks 42.5km Number of flood gates 31 Number of pump stations 1 Solid Waste Number of transfer stations 2 Number of communities receiving refuse collections 10

G - 20 Appendices

Base Statistics As at 30 June 2015

Libraries Number in District 3 Total number of items (books, DVDs, CDs) in stock Approximately 48,000 8688 Number of members (48% of population) Public Toilets Number in District 22 Halls Owned and managed by Council 3 Rural Community Halls 11 Parks and Reserves Total hectares 310 ha Public swimming pools (heated) 3

Base Statistics Additional Council Information As at 30 June 2015

Total area of District 1,269 sq km

Population 17,811 (Census 2013)

Total number of dwellings 8,809 (Census 2013)

Wards 3

Number of Councillors, including Mayor 14

Number of staff 135

Farming area - dairying 40,788 hectares

Farming area - non dairying 45,850 hectares

Total rateable properties 10,368

Value of improvements on rateable properties $1.711 billion

Net land value $2.877 billion

Net capital value $4.588 billion

Total rates collected per year (excluding water meter charges) $19.3 million (GST Excluded)

Average total rates per property $1,862 (GST Excluded)

Total cost of service $33 million (forecast)

Public debt $341.8 million (forecast)

Appendices G - 21

Appendix 6: One Network Roading Classification – Hauraki District Councils Transition Plan

1.0 Background and Context

The One Network Road Classification (ONRC) involves categorising roads based on the functions they perform as part of an integrated national network. The classification will help local government and the New Zealand Transport Agency (NZTA) to plan, invest in, maintain and operate the road network in a more strategic, consistent and affordable way throughout the country.

The ONRC project has three elements. The first is classifying roads into categories based on their function in the national network. This was completed in December 2013 following extensive engagement with road controlling authorities (RCA) and other stakeholders.

The second element is the Customer Levels of Service (CLoS), which define what the outcomes are for each category of road in terms of mobility, safety, accessibility and amenity.

The third element is the development of the performance measures and targets, which effectively determine how the categories and customer levels of service translate into specific maintenance, operational and investment decisions.

2.0 Executive Summary

This transition plan sets out a framework for the Hauraki District Council (HDC) to implement ONRC and Business Case Approach (BCA) to investment. The plan forms part of the 2015 Asset Management Plan (AMP) for inclusion in the 2015/18 National Land Transport Plan (NLTP). This plan has been collaboratively developed and agreed between HDC and the NZTA.

This plan summarises where HDC is situated in terms of current practices related to ONRC network management requirements. It defines the gaps in information and practices then provides an action plan of what will be required to assist with the implementation of the ONRC currently underway.

The following stages of development have been identified as required improvement actions:

 Complete Network outcome measures to understand current position  If the implications of the transition to ONRC Customer Levels of Service (CLoS) have significant impacts on the current service provided to the community, consult with community and key stakeholders to ensure the community is informed and has an opportunity to provide feedback.  Upskill to meet requirements for developing BCA  Review strategic context of network and develop BCA for investment based on the ONRC CLoS  Review / updating of existing AMP  Develop the LTP  Amend and procure service contracts to meet desired outcomes. A high level summary of action steps and rough order estimates has been provided in Section 7. It is important to note that the estimated costs have been identified as a risk due to the lack of understanding of the current position and the preparation of the BCA being a “work in progress”.

G - 22 Appendices

3.0 ONRC Implementation 3.1 Functional Classification The functional classification is largely complete with all roads currently classified under the new system. There is a regional and national moderation process still to be completed but this is being done with NZTA and others outside of this plan. Once this has been completed some minor changes may be required.

3.1.1 Gap Assessment The following gap assessment identifies work required in the regional moderation work flow.

Full Implementation Action Plan •Network classified using RAMM GIS ONRC template •Minor changes being •Regional moderation worked through completed. Minor •Alignment with following regional •Make changes adjustments made national ONRC moderation •Include review requirements process in AMP

Current Gaps State

3.2 Performance Measures and Targets HDC’s current inspection routine does not provide all of the data required to report against all of the ONRC performance measures (Network Outcomes). Applicable available data from road assessment and maintenance management (RAMM), crash analysis systems (CAS), or relevant HDC reporting will be used to populate the performance measures as much as possible. Aspirational or development measures have not been included in the assessment or gap analysis for this transition plan.

HDC will aim to develop and implement data collection processes to measure and monitor the ONRC performance measures. Where possible, relevant data will be collected and reported on as part of maintenance contracts to minimise the requirement for additional resources.

The service being delivered under the current model will be analysed to determine if delivery is fit for purpose, requires enhancing or exceeds requirements and the process for adjustment to meet desired levels. This analysis will then be used to develop CLoS and for the evidence base for investment in the 2018-21 programme.

3.3 Customer Levels of Service The graphic below notes that current HDC Levels of service and performance measures, as included in Section 3 of the existing HDC Land Transport Asset Management Plan (AMP), have limited alignment with the desired national outcomes.

The new CLoS will be developed to align with the National Outcomes. Significant gaps are expected to be found between the current levels of service based on work category and outcome based CLoS. Once a preliminary set of CLoS has been developed, Council will need to consider whether these should be subject to stakeholder review and consultation. If consultation is required a set of protocols and procedures will need to be developed. An extensive review and update of the existing AMP is included in the improvement actions outlined in Section 7. The process maps used to develop CLoS will be updated to achieve alignment with National Outcomes as part of this process.

Appendices G - 23

•CLoS included in LOS section of Full Action Plan AMP, largely condition Implementation •Misalignment outcome based. between existing •Moderate level of alignment •National Outcomes for; HDC CLoS and •Amend CLoS to align with National with desired Safety & Amenity •Mobility National outcomes outcomes Outcomes •Safety •Include review process in •Minimal alignment with AMP •Amenity Mobility & Accessibility •Develop improvement outcomes •Accessibility plan Current State Gaps

4.0 Business Case Approach Implementation 4.1 Strategic Context Clearly defined strategic context is key to a successful business case approach. Gaps between national and regional strategic objectives and HDC’s strategic direction need to be addressed and resolved so that inputs to the business case are based on CloS that are aligned with the overall strategic direction. This is likely to be an iterative process involving key stakeholders as well as HDC.

4.2 Business Case for Investment The Business Case Approach (BCA) is a method for achieving improved investment decision making. It focuses on clearly defining the problem, and the root causes of the problems the investment is seeking to address, ensuring any investment made will achieve the desired outcome.

Due to the limited experience within council and the industry in general relating to the preparation of business cases for roading infrastructure, training will be a key requirement for business case development to be successfully undertaken.

It is envisaged that this training will be undertaken by both internal and external resources in the early stages of the overall project. This training will help to identify other gaps yet to be determined relating to inputs required for development of the business case.

Once the skill set to apply the BCA has been attained, HDC will review its strategic network context to ensure any proposed investment is consistent with this process. This will be carried out as part of the process of confirming suitable investment (or dis-investment) areas for the 2018-21 NLTP.

5.0 Other Work Identified

The steps required for full implementation of the ONRC and the BCA for investment in the network are included in the improvement actions outlined in Section 7. This includes producing a framework for consultation if required.

Other work required will be an assessment of the implications and alignment of ONRC outcomes to the HDC District Plan.

HDC will work collaboratively with its neighbours with the intention of undertaking a review of current systems and practices across the Waikato councils to assess where alignment of systems could provide shared service savings.

The estimated financial implications for moving from current practices to full alignment with the ONRC CLoS are detailed in Section 7 below. This includes producing a framework for consultation if required.

G - 24 Appendices

6.0 Opportunities and Risks Identified

The opportunities that improved information and defined levels of service will provide HDC are:

 Better evidence in support of funding requests and development of programmes  Better data supporting more informed decision making  Increased opportunities for collaboration with neighbouring authorities

The primary risks identified are:

 Estimated costs are rough order only; limited understanding of the current position and the BCA process makes accurate cost estimation difficult. This risk is expected to reduce as the improvement process progresses through the various stages of implementation  Implementation and management funding requirements may put pressure on existing constrained budgets  Council’s ability to provide the necessary resource for implementation  Desired ONRC outcomes, especially with regard to Network Outcomes and CLoS, may not align with customer and stakeholder expectations

7.0 Stakeholder and Public Engagement

Stakeholder consultation has been identified as a possible key action and is shown in the improvement actions in Section 7. The framework for stakeholder and public engagement will be determined during the midterm of the 2015 to 2018 ONRC transition. By this stage of the process the data capture and inspection routines will be established. The initial reporting will describe the extent to which HDC aligns with ONRC CLoS and will identify the gaps. An effective communications plan, for both internal and external stakeholders, will be formulated on the basis of this information.

8.0 Summary of Improvement Actions

Improvement Action Financial Steps to achieve action Timeframe Description Implications Complete network  Data collection outcome measures  Populate NZTA measures reporting spreadsheet  Develop process for ongoing measurement of data Dec 2015 25k and monitoring of performance. The extent to which this can be achieved through existing and future contracts will be considered. Consult stakeholders  Develop framework for engagement of stakeholders on CLoS if required. Dec 2016 25k  Report outcome of communication, identify actions required Develop inputs into  Gap analysis of BCA input requirements and BCA information currently available  Review / align HDC strategic context for integration Dec 2016 20k of CLoS  Alignment of HDC strategic context with National, Regional and Local strategies Develop BCA for  Train staff in BCA requirements investment to meet  Produce BCA Sept 2015 50k CLoS  Review BCA (Reviews undertaken at Local, June 2017 Regional & National levels) Update AMP  Review and update existing AMP. The number of sections requiring change is expected to be Nov 2017 50k significant. Develop LTP  Determine impact on renewal and maintenance requirements Sept 2017 25k  Produce 2018-21 LTP to align with new strategic context

Appendices G - 25

Improvement Action Financial Steps to achieve action Timeframe Description Implications Procurement  Review existing contracts to see if there is an option to collect performance measure data via the contractor Nov 2015  Rewrite contracts to align with new CLoS 30k  Procure services Mar 2018  Monitor performance of services and apply continual improvement philosophy

G - 26 Appendices

Appendix 7: Glossary

Accounting Policies and These show the generally accepted accounting practices that the Accounting Notes Council uses in preparing its financial statements and further disclosures of detail.

Activity An activity is a service provided by the Council and is either asset based i.e. water supply, or activity based i.e. economic development.

Activity Plan A plan identifying a series of actions to be taken to achieve defined outcomes as specified in the Hauraki Long Term Plan. Activity plans relate to activities other than physical assets and usually are about non-asset activities. The plan may include actions to be taken by others.

Amenities The natural and physical character of an area that contributes to people’s enjoyment, for example anything from a public convenience, to attractive trees in a park, to safe and useable streets.

Annual Plan A document produced annually by local authorities that sets out what it intends to do each year, how much it will cost, and where they intend to get the money.

Annual Report A document produced annually by local authorities, which provides the public with information about the performance of the Council during the year (both in financial and non-financial terms).

Asset An item owned by the Council, for example roads, parks, plant and machinery, building and utility systems.

Asset Management Plan A plan for the management of one or more assets that combines multidisciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost-effective manner to provide a specified level of service.

Audit (v.) An official independent review and verification of financial accounts, other processes and records to ensure they are in compliance with legislation and financial prudence.

(n.) Audit New Zealand. The company that Hauraki District Council uses to perform an audit on its Long Term Plan.

Benefit Analysis The process by which the Council determines the beneficiaries and levels of benefits from the Council activities.

Appendices G - 27

Best Practice The principles and practices that are accepted by industry/interest groups to achieve best results.

Bylaw A regulatory tool empowered by an existing law that gives the Council powers to regulate for matters on a local basis.

Capital Expenditure (CAPEX) Money spent to build or buy a new asset, or to improve the standard of an existing asset. CAPEX increases the value of asset stock.

Capital Value (CV) The value of land plus additions such as buildings, driveways and fences.

Catchment Management Plan A document which supports a Stormwater Asset Management Plan, and provides a detailed technical assessment and identifies future needs of the urban stormwater drainage network.

Collaboration The process by which individuals, agencies, organisations and businesses make formal, sustained commitments to work together to accomplish shared goals.

Community Individuals sharing a network of relationships and forming a common identity either on the basis of a shared locality, common cultural and historical identity or through shared interests. A community may be identified by any quality that links people together, or that they have in common.

Community Outcomes The outcomes that Hauraki District Council aims to achieve in meeting the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions.

Condition monitoring Continuous or periodic inspection and assessment of an asset or components of an asset to determine the need for some preventive or remedial action.

Constituency The body of voters that elect one representative to a governing body (such as local or central government).

Consultation The genuine exchange of information, points of view and options for decisions between affected and interested people and decision makers before a decision is made. The process of asking and listening to views, opinions and ideas.

Consultation Document A consultation document is a high level summary of a Long Term plan including those aspects prescribed to it in the Local Government Act 2002. The purpose of a consultation document is to provide an effective basis for public participation in local authority decision-making processes relating to the content of the long term plan. Council Controlled Organisation Council controlled organisations (CCOs) are any organisations owned by one or more councils or in which councils have a controlling interest. They are expected to achieve the objectives of their shareholders, both commercial and non-commercial, as specified in their statement of intent. The Council directly or

G - 28 Appendices

indirectly controls more than 50% of the votes of that entity.

Councillor Also known as an elected representative, a person that is democratically elected to serve on a Council on behalf of ratepayers.

Decision-making The Local Government Act, 2002 states that decision-making at the local government level means every decision must be made as that Act says – including seeking to identify all reasonable practicable options for the achievement of the objectives.

Demand Management The active intervention in the market to influence demand for services and assets with forecast consequences, usually to avoid or defer capital expenditure. Demand management is based on the notion that as needs are satisfied expectations rise automatically, and almost every action taken to satisfy demand will stimulate further demand.

Democracy A way that we govern ourselves. It can be used to mean community participation in decision-making between elections, as well as at elections. Democracy is also a Council activity that ensures the Council is accountable to residents, ratepayers and the community for its decisions and activities.

Development Contribution A payment made by a developer to cover part of the costs of providing infrastructure to a new development. A territorial authority may require a development contribution to be made to the territorial authority when granting:  A resource consent  A building consent  An authorisation for a service connection.

District Council Elected representatives with primary responsibility for governing a territorial authority where the boundaries do not include a major urban area.

District Plan Required by the Resource Management Act, 1991; defines how resources and development will be managed in the District.

Provides statutory direction to the Council and the public on planning development controls within the District.

Economic Allocation Consideration of economic principles to identify whether the allocation of costs of providing a service match the benefits of the service.

Economic Development A process that influences growth and restructuring of an economy to enhance the economic well-being of a community. It usually also aims to increase the wealth of people over time. Rather than being a single, simple process, economic development typically can be a range of influences that achieve objectives like creating jobs and wealth, and improving the quality of life.

Economic Development Strategy A document which outlines specific District and regional plans and strategies that will enhance and encourage economic growth in the District.

Appendices G - 29

Economies of Scale The cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.

Equity Justice applied in circumstances covered by law, yet influenced by ethics and the qualities of fairness and impartiality.

Exacerbator Person or organisation responsible for creating an adverse impact as a result of their use of resources.

Excludable goods or services Goods and services from which individuals and/or groups can be effectively excluded from enjoying benefits, while those enjoying the benefits can be identified and charged.

Existence value Value is attributed to the existence of certain facilities provided in the District, whether or not a person uses the facilities.

Financial Statements The summary of the Council’s operating costs and revenue, asset movements, cash movements and other information as required by the Local Government Act, 2002 and Generally Accepted Accounting Practices.

Financial Strategy A local authority must as part of its Long Term Plan prepare and adopt a financial strategy for all consecutive financial years covered by the Long Term Plan. The purpose of this strategy is to facilitate prudent financial management and provide a context for consultation.

Financial Year The Council’s financial year starts on 1 July and ends on 30 June the following year.

First Past the Post (FPP) Candidate/s with the most votes wins the position/s to be filled. A simple method of electing candidates which is widely used throughout the world.

Forecast Prospective financial information prepared on the basis of assumptions as to future events that the Council reasonably expects to occur.

Forecast Financial Statement This is a 10 year plan for the Council’s revenue and expenditure, cash flows, and borrowing programme.

Funding Impact Statement A financial statement which discloses the revenue and financing mechanisms that the organisation proposes to use.

Funding Tools Different methods of funding an activity including: Uniform Annual Charges (UAC), Uniform Annual General Charges (UAGC), Capital Value (CV), Ward Rates, fees, charges and fines.

Governance The way Hauraki District Council engages with its community (representation), how it makes decisions, and the ways citizens can influence those processes.

G - 30 Appendices

Grant or subsidy Money given from local or central government or other funds to a person or group for a specified purpose.

Groups of Activities In the Hauraki Long Term Plan the Council’s services are allocated to ten groups of activities. Each Group of Activity encompasses council activities that have a relationship to each other and rationale for providing the service.

Hapu Central authority structure of Māori society. A cluster of related whanau (extended family), descended from a single ancestor that has collective decision-making rights over its territory.

Hearing A formal meeting at which members of the public can verbally address the elected representatives and/or staff about particular issues.

Hui Meeting or assembly of people to discuss issue/s. Hui are more likely to take place on Marae.

Indirect or external benefits Recognises that the residents and ratepayers of the community value the service provided by the Council although they may not be direct users of the service themselves.

Infiltration When leakage occurs into a reticulated system (i.e. sewer or stormwater systems).

Inflation Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. Infrastructure The physical structures required to supply services to the community. This includes the pipes and machinery that allow the Council to collect and manage water, wastewater, stormwater and solid waste, as well as assets such as roads, drains and buildings.

Intergenerational Equity Judgements made as to which years’ beneficiaries should bear what proportion of costs associated with the installation, maintenance and benefits provided by an asset on an ongoing basis.

Iwi Larger than the Hapu – a cluster of related Hapu, descended from a single ancestor, varying in size.

Key Indicator A measure against which some aspects of policy performance can be assessed. A set of key indicators should provide sufficient information to track the state of the District, and to trigger appropriate and timely actions to address problems.

Kotahitanga A Māori word meaning partnership, togetherness and working together as one.

Labour Market Strategy A regional initiative involving Hauraki District Council and Thames- Coromandel District Council focussed on employment. Iwi, central government departments, business and community organisations all take part.

Appendices G - 31

Land Value Value of land, excluding any improvements.

Levels of service A description of the extent of a service currently provided by the Council.

Local Government Act, 2002 The key legislation that defines the powers and responsibilities of local authorities.

Local Government Statements After each triennial election of members, a local authority must make publicly available a local governance statement covering specified topics, including the electoral system and opportunities to change its representation arrangements, and including the option of establishing Māori wards or constituencies and the opportunity to change them.

Long Term Plan The Long Term Plan is required every three years under the Local (LTP) Government Act, 2002. The purpose includes:  Providing a long-term focus for the decisions and activities of the local authority.  Providing integrated decision-making and co-ordination of the resources of the local authority.  Providing an opportunity for participation by the public in decision-making processes on activities to be undertaken by the local authority.

Maintenance Costs Expenditure in relation to repairs and maintenance of the Council’s assets.

Mana Whenua Iwi who, through occupation, conquest or agreement, hold jurisdiction over an area (rohe) - literally, power, authority, jurisdiction, influence, or governance over or in connection with land or territory.

Māori Indigenous people of Aotearoa/New Zealand as a whole – members of various Hapu and Iwi.

Monitoring Measurement of the Council’s progress and performance against targets as agreed and set out in the Hauraki Long Term Plan and subsequent Annual Plans.

Networking Individuals or organisations sharing information, ideas, resources, or services to accomplish individual or group goals.

New Zealand Transport Agency National road controlling authority responsible for the state (NZTA) highway network.

Non-excludability When it is difficult or impossible to exclude the benefit from anyone including those who are not prepared to pay for the benefit.

Non-rivalry The use of the benefit by one individual will not affect the availability or supply of the benefit to any number of other persons.

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Operating Costs Costs to run the Council on a day to day basis, ranging from maintenance of infrastructure to staff salaries.

Option value Value is attributed to the option of being able to use a facility, whether or not that option is taken up.

Partnership The Council’s relationship with groups within the wider community to achieve outcomes.

Performance indicator A qualitative or quantitative measure of a service or activity used to compare actual outcome against a standard or other target. Performance indicators commonly relate to statutory limits, safety, responsiveness, cost, comfort, asset performance, reliability, efficiency, environmental protection and customer satisfaction.

Performance Measure A means for determining whether the levels of service are actually being delivered to the community.

Performance Monitoring Continuous or periodic quantitative and qualitative assessments of the actual performance compared with specific objectives, targets or standards.

Performance Targets To practically demonstrate the desired levels of performance that the Council aims to achieve for the service delivery.

Planning Formulating or organising a way by which an action is to be undertaken, for example:

Strategic Planning: Formulating a way in which actions are to be identified, co- ordinated and resourced over an extended period of time in order to achieve a desired outcome. Key outputs – draft and adopted Long Term Plan.

Financial Planning: Formulating a way to fund actions. Key outputs – the Financial Strategy and Revenue and Finance Policy.

Resource Management Planning: Formulating a way to manage environmental effects of activities and development in accordance with the Resource Management Act, 1991. Key outputs – District Plan.

Annual Planning: Formulating a way by which actions for the forthcoming year are to be identified, prioritised and resourced. Key outputs – draft and adopted Annual Plan.

Principles, prescription and Local authorities in New Zealand traditionally gained their powers purpose from highly “prescriptive” legislation, which set out in detail what local authorities must do, what they can do, and even how they do things. The traditional prescriptive approach of the Local Government Act, 1974 was replaced in the Local Government Act, 2002 by a “principled” approach. This gives a generalised power to all local authorities to have full capacity to do anything for the purpose of performing their role – achieving their “purpose”.

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Private benefit or good Benefits of a service can be enjoyed by identifiable individuals or groups, who may then be charged for that direct benefit.

Projection Prospective financial information prepared on the basis of one or more hypothetical but realistic assumptions that reflect possible courses of action.

Public benefit or good Benefits of a service that are enjoyed by anyone; indirect or general benefit, non-excludability and non-competitiveness exist.

Public Notice A public notice might be one notice circulated in one local newspaper, or as decided as being adequate by the Hauraki District Council.

Purpose of local government The Local Government Act, 2002 says that the purpose of local government is “to enable democratic local decision-making and action by, and on behalf of, communities, and to 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.

Quadruple Bottom Line The form of decision-making and reporting that considers social, environmental, economic and cultural impacts.

RAMSAR The Convention on Wetlands, signed in Ramsar, Iran, in 1971, is an inter-governmental treaty which provides the framework for national action and international co-operation for the conservation and wise use of wetlands and their resources.

Rates What each property owner pays for the services provided by the Council.

Recycling The process whereby existing products, parts of products or resources become materials in new production processes.

Refuse Collection The collection of solid waste from households.

Refuse Disposal The disposal of solid waste collected at transfer stations.

Renewal Expenditure Funding for works that replace existing assets as they wear out.

Revenue All of the Council’s income, from any source, is its revenue. It includes all rates, subsidies and fees and charges.

Revenue and Finance Policy The Council’s Revenue and Finance Policy describes the funding rationale for each activity the Council carries out. The Policy also includes funding tables for each activity to show how the activity is funded.

Risk Management A formal process of considering possible risks to the achievement of specific goals, and making decisions on how these risks will be managed.

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Rural Fire Control Fire prevention and fire fighting in rural areas.

Service An activity which assists in meeting the needs of the community, e.g. supply of water, wastewater disposal, road access, libraries.

Significant An issue, proposal or decision considered as having a high degree of importance where it might affect the community’s well- being, other interested parties, and the capacity of Hauraki District Council to perform its role, including the related financial costs.

Single Transferable Vote (STV) Voters are able to rank any number of candidates they choose in order of preference, rather than selecting one most preferred candidate for each vacancy as in First Past the Post. This method requires a calculation to analyse which candidate has the most preferential votes. The calculation is run until sufficient candidates with sufficient votes satisfying the quota requirement fill the available positions.

Special Consultative Procedure A formal consultation process for Hauraki District Council to follow (SCP) which is defined in the Local Government Act, 2002. The SCP sets out a series of steps to advise/consult with the public and request submissions on particular types of decisions to be made.

Stormwater Rainwater which runs off our land, roads, roofs and gutters or drains into stormwater pipes. Strategic asset An asset or group of assets that the Council needs to retain to maintain the current and future well-being of the community.

Strategies A public statement of how the Council intends to achieve a particular objective or set of objectives through a high level plan of action.

SUIP Separately Used and Inhabited Part of a Rating Unit.

Sustainability The use of natural, social and physical resources in such a way that allows for the ongoing use of those resources by future generations while taking account of current needs.

Sustainable Development Development that meets the needs of the present, without comprising the ability of future generations to meet their own needs.

Transparency, Accountability and The Local Government Act, 2002 Amendment Bill 2010. An Fiscal Management (TAFM) acronym for Transparency, Accountability and Fiscal Management.

Tangata Whenua Māori people of the land that belong to a particular area by ancestral connection.

Taonga Māori word (noun) meaning sacred, important, and/or valuable.

Targeted Rates Any rate levied other than the general rate, which is targeted at users of a specific service.

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Territorial Local Authority A city council or district council as defined in the Local Government Act, 2002.

Third party benefits Types of public or general benefits which include bequest values, existence values, option values and prestige values.

Treaty of Waitangi (Tiriti o Signed in 1840, the Treaty of Waitangi is an agreement between Waitangi) the Crown and Māori.

Uniform Annual Charge (UAC) A fixed charge for a specific item such as solid waste collection and disposal.

Uniform Annual General Charge The fixed charge component of the rates. (UAGC) Vision A brief description of what the community wants our District to be like in the future.

Ward An area within a city or district that has its own constituency and representative.

Water Supply The reticulated system to provide consumers with a water supply.

Well-being The health, safety and general well-being of residents.

Zero Waste The name given to a strategic goal that covers turning waste into resources. Success is achieved when total solid waste entering landfills is reduced or stopped.

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