Waitakere's 10 Year Plan

PART B

WAITAKERE CITY COUNCIL Best for the West - Waitakere's 10 year Plan MISSION, GOALS AND TE WHAKATAKANGA, NGA PRINCIPLES TUHENGA, NGA WHANONGA WAITAKERE ECO CITY TETAIAO O WAITAKERE sustainable kia mau tonu nga tikanga dynamic whakahirahira just tino rangatiratanga

PRINCIPLES WHANONGA open honest communication kia pono kia ngawari responsiveness kia mama nga wawata accountability ko te whanau hei titiro partnership kia haere kotahi innovation kia kakama excellence kia tino ataahua integrity kia haere totika I roto I te rangaimarie SECTION ONE SECTION THREE

Council controlled organisations 2 POLICIES Revenue and ﬁ nancing policy 86 Summary water and sanitary services assessment 10 Rates remission and postponement policies 136 Summary solid waste management plan 21 Policy on remission and postponement of rates on

FINANCIAL STATEMENTS Maori land 140 Policy on partnerships with the private sector 141 Summary of activity statements 23 Development contributions and ﬁ nancial Capital expenditure and loan payments 28 contributions policy 143 Prospective funding impact statement 44 Liability management and investment policy 178 Rating information 50 Policy on signiﬁ cance 199

Audit report 202 SECTION TWO FORECAST FINANCIAL STATEMENTS Prospective statement of comprehensive income 60

Prospective statement of changes in equity 61

Prospective application of funds 62

Prospective balance sheet 64

Prospective statement of cash ﬂ ows 66

Prospective ﬁ nancial statements general information 68

Statement of accounting policies 69

Signiﬁ cant forecasting assumptions 78

Prospective summary of future borrowing 84 CONTENTS

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 1 COUNCIL CONTROLLED ORGANISATIONS

INTRODUCTION WAITAKERE CITY HOLDINGS LIMITED

The Council has three subsidiaries (WCHL) which are Council Controlled Organisations. The following explains OBJECTIVES what the organisations do and how To provide leadership and proactively support the Council by investigating their performance is measured. investment opportunities which have the potential to enhance employment opportunities or to stimulate economic growth; promoting investment in Waitakere; active property portfolio management; seeking out opportunities for diversiﬁ cation of the Council’s income streams; and identifying present and future infrastructure needs.

It is acknowledged that the Council seeks more than a simple commercial return, and that there are particular strategic objectives associated with the Council’s ownership of the Waitakere City Holdings and Group entities, with which they must maintain an alignment.

NATURE AND SCOPE OF ACTIVITIES Waitakere City Holdings Limited holds on behalf of the Council a shareholding investment in Waitakere Properties Limited (WPL) of $2,300,000, representing 100 percent of WPL’s share capital. Waitakere Properties Limited in turn holds a 40 percent shareholding in Prime West Management Limited.

COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED Waitakere City Holdings Limited oversees on behalf of Council the operations of the Board of Trustees of the Waitakere Enterprise Trust Board (Waitakere Enterprise or WE).

WCHL has a responsibility to ensure that (WPL) and (WE) operates economically and effi ciently, and in accordance with an agreed Statement of Intent and to SECTION ONE optimise the returns - both fi nancial and non-fi nancial - within the parameters set by Council.

2 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE COUNCIL CONTROLLED ORGANISATIONS

KEY PERFORMANCE TARGETS FROM THE STATEMENT OF INTENT 2009/2010 PERFORMANCE MEASURE PERFORMANCE TARGET Ensure that the fi nancial targets and strategic direction of A draft 2010/2011 Statement of Intent (SOI) for the holding WCHL are in line with the requirements of Waitakere City company will be submitted to the Council no later than 1 Council. March 2010. This will include a performance scorecard of appropriate qualitative and quantative performance targets. Council is satisfi ed that the content of the draft SOI is strategically aligned and is a sound document. Ensure that Waitakere City Council is kept informed of all Quarterly reports to the Finance and Operational signifi cant matters relating to its group entities. Performance Committee (FOP) of the Council. The quarterly report shall provide information that complies with the reporting requirements outlined in the (SOI). Major matters of urgency are reported to the Chair of the Finance and Operational Performance Committee of the Council and the Council's Chief Executive jointly on a "no surprises" basis with formal reporting undertaken as soon as practical on the Board concluding its investigations and being in a position to report. Ensure that WCHL directors add value to the company A formal evaluation of the WCHL governance structures and and that their conduct is according to generally accepted directorate completed in conjunction with Council by June standards. 2010. Council is satisfi ed that the Board and directors of WCHL add value and the governance structure is appropriate. Ensure timely advice to the Council's Finance and Undertake external biennial board evaluations in conjunction Operational Performance Committee and Chief Executive on with the Council offi cers. The Chairman shall ensure proper the performance of the Boards of the respective activities. completion of Board and director self assessments every alternate year. Ensure that the draft WPL and WE SOIs are appropriate, Review and endorse WPL and WE SOIs with comments to measurable, attainable and timely. the Finance and Operational Performance Committee within suffi cient time to enable feedback within the 60 day statutory time frame. Ensure that the fi nal WPL and WE SOIs are strategically WCHL will direct WPL and WE to produce strategically aligned documents, while also being compatible with the aligned draft 2010/2011 SOIs. strategic aims of the Council. WCHL will assess the alignment of the SOIs with any specifi cally notifi ed Council strategic directives. Objectives of WPL and WE are developed, to be aligned with appropriate Council strategies.

Ensure that group entity reporting is relevant and timely. WPL and WE SOIs to incorporate specifi c reporting ORGANISATIONS COUNCIL CONTROLLED requirements, including quarterly reporting of performance The quarterly report shall provide information that complies with the reporting requirements outlined in the SOI. Ensure that there are adequate processes for the WPL and WE SOIs to incorporate specifi c statements identifi cation, assessment and management of the risk regarding the processes for the management of risk exposures of WPL and WE. exposures. SECTION ONE Ensure WPL and WE have risk management policies in place that are aligned to the SOI. Ensure that WPL and WE are complying with the risk management policies.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 3 COUNCIL CONTROLLED ORGANISATIONS CONTINUED

WAITAKERE PROPERTIES LIMITED (WPL)

OBJECTIVES The Company will operate as a successful business, recognising that the primary property activities are undertaken as Trust Projects. As a provider of services to the Trust Projects and Waitakere City Council it believes it has obligations that apply to a company operating in this environment:

• To maintain such systems and procedures as necessary for the prudent and successful operation of the Company • To ensure that the Trust Projects achieve the strategic outcomes stated in the Trust Deed and to take account, where practicable and commercial, key sustainable objectives and sustainable building practices • To achieve rates of return on the Trust Projects similar to other comparable developments, or to identify the cost of activities not undertaken on a strictly commercial basis • To exercise opportunities that add value to the Company/Council and/or further the Company’s/Council’s objectives • To build the value of the Waitakere Properties Limited brand • To manage the risks associated with the Trust Projects prudently.

The Company will aim to maximise the value of the Trust Projects and/or the Company and therefore the value of the investment, by:

• Anticipating and meeting the customer’s needs • Ensuring developments are of consistently high quality • Providing customers with value for money • Undertaking or encouraging development in a manner consistent with strategic City objectives • Pursuing opportunities that advance the strategic City objectives.

NATURE AND SCOPE OF ACTIVITIES Waitakere Properties Limited develops and manages council-owned properties under a formal trust deed arrangement. As at 30 June 2008, the company administered eight properties under this trust deed arrangement. The combined book value of these properties as at 30 June 2008 is $37.1m and this balance is recognised in the ﬁ nancial statements of Waitakere City Council.

KEY PERFORMANCE TARGETS FROM THE STATEMENT OF INTENT 2009/2010 PERFORMANCE MEASURE PERFORMANCE TARGET COMMERCIAL RETURN – WPL To sustain the economic base of the Company to ensure it is • Achieving budgeted revenue and costs able to carry out the required functions for its shareholder. • Ensuring Net Profi t After Tax (NPAT) target for company operations is breakeven or better COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED COMMERCIAL RETURN – DECLARATION OF TRUST To ensure that each Trust Project is delivered in a manner Aiming for fi nancial returns in the Trust projects at levels which optimises the commercial benefi t and return to Council consistent with good market practice, or if below this, consistent with the attainment of economic, environmental consistent with the assessment framework detailed in Point and social objectives. 15 below or the acknowledgement in the Declaration of Trust

SECTION ONE or Letter of Direction that returns will be below market.

WPL agrees to review, with Council all trust accounts in accordance with Sections 12 through 16 in this SOI and report back to its Board and Council on proposed return criteria before 31 December 2009.

4 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE COUNCIL CONTROLLED ORGANISATIONS

PERFORMANCE MEASURE PERFORMANCE TARGET GOVERNANCE UNDER DECLARATION OF TRUST To adhere to the terms of the Declaration of Trust and any Agreeing the objectives for each project with the Council related Letter of Direction for each Trust Project undertaken. concurrently with the Company accepting responsibility for control and development activities for such landholding under Declaration of Trust. Where these objectives have not been agreed the Company will work with Council to develop agreed objectives by 30 June 2010.

Keeping Council informed of progress in the Trust Accounts through key development stages including the concept plan stage, development plans, any signiﬁ cant construction expenditure, consistent with the Declaration of Trust.

Adhering to the terms and conditions of any Letter of Direction which may be given by Council from time to time in relation to any landholding, including in relation to commercial or environmental concerns, strategic outcomes and project ﬁ nancial distributions.

Reporting to the Council progress in relation to each landholding held under Declaration of Trust simultaneously with the statutory requirements to report on operations.

Providing a Business Plan for each project held under Declaration of Trust for each ﬁ nancial year and report on progress against that Business Plan in the quarterly reports. GOVERNANCE To meet all statutory, regulatory and shareholder Providing a draft SOI to the shareholder by 1 March each year. requirements as required by the Local Government Act 2002, the Companies Act 1993 and any other applicable Providing a ﬁ nal Statement of Intent to the Shareholder by 30 legislation. June each year.

Holding regular meetings of the Board of Directors.

Provide audited ﬁ nancial statements and an operations report for the Company to the Shareholder within three months of the completion of the ﬁ nancial year as required by section 67 the Local Government Act 2002.

Providing unaudited fi nancial statements and operations COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED report of the Company to the Shareholder within two months of the completion of the fi rst half of the fi nancial year as required by section 66 the Local Government Act 2002.

Providing a quarterly report to the shareholder on ﬁ nancial and non-ﬁ nancial performance including with respect to

Trust Projects, contracts and transactions of signiﬁ cance, SECTION ONE and strategic initiatives.

Providing such other information as may reasonably be required by the Shareholder or the Council, subject to any obligation of conﬁ dentiality which may be appropriate.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 5 COUNCIL CONTROLLED ORGANISATIONS CONTINUED

WAITAKERE ENTERPRISE TRUST BOARD (TRADING AS WAITAKERE ENTERPRISE)

OBJECTIVES The purpose of Waitakere Enterprise (WE) is to accelerate sustainable economic growth of Waitakere. Waitakere Enterprise is the economic development agency for Waitakere and is focused on sustainability growing the local economy. Waitakere Enterprise does this by growing and attracting business and developing a skilled and productive labour force.

NATURE AND SCOPE OF ACTIVITIES Waitakere Enterprise undertakes activities to accelerate Waitakere’s sustainable economic growth and thereby contributing to the achievement of strategic City objectives. These activities include:

• Contribution to the development of the Council’s economic development related strategies • Advocating the economic development needs of the City • Providing support to the Council-led economic development initiatives • Identifying and working with individuals, government, businesses, industries and/or institutions who either want to grow in Waitakere or contribute to the sustainable economic growth of Waitakere • Promoting Waitakere as business investment location and providing a key client service to new investment opportunities from inside and outside the City • Growing the number, size and performance of existing businesses • Stimulating business networks • Connecting capital constrained growth companies to source of capital that will realise growth potential • Supporting the growth of key strategic industries • Facilitating and delivering education and skills development initiatives that meet local business’s needs • Providing foundation skill training and employment transition programmes for sustainable entry to the labour market • Supporting community economic development initiatives.

PERFORMANCE TARGETS FROM THE STATEMENT OF INTENT 2009/2010 PART ONE: GROW AND ATTRACT BUSINESSES

PERFORMANCE MEASURE PERFORMANCE TARGET NEW BUSINESS START-UPS

COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED Deliver the ‘Powerful Start’ new business start up • 75 complete new business workshop series information, workshop and coaching programme. • 90% satisﬁ ed Deliver Work and Income Be Your Own Boss programme to • 40 participants complete the programme transition beneﬁ ciaries to business or work. • 100% of those that complete the programme produce approved business plans or back to work plans

SECTION ONE Run the West Auckland Region of the Young Enterprise • 7 schools participate Scheme. • 200 students participate • 25 new businesses established

6 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE COUNCIL CONTROLLED ORGANISATIONS

PERFORMANCE MEASURE PERFORMANCE TARGET BUSINESS INFORMATION, TRAINING AND MENTORING Deliver Biz Network Ltd’s Biz Information Programme. • 600 business information enquiries serviced • 90% ‘mystery shopper’ satisfaction rating Deliver New Zealand Trade and Enterprise’s Enterprise • 175 Waitakere businesses participate in the programme Training Programme to provide foundation business skills. • 50 training workshops held in Waitakere • 1 Maori Trustee Training programme delivered Establish a regionally aligned, locally delivered programme • Programme established and implemented of business information and training to leverage opportunities resulting from the Rugby World Cup. Deliver Business Mentors New Zealand mentoring • 75 matches made programme. • Grade ‘A’ provider status maintained Deliver advanced level “Powerful Ideas for Business” • 8 seminars delivered seminars. • Cumulative attendance of 125 participating individuals Deliver the New Zealand Trade and Enterprise Escalator • 20 participants Programme. BUSINESS STRATEGY AND COACHING Deliver 1:1 business coaching and advice on central • 50 clients coached for a minimum of 6 hours government business growth funding. • Baseline data for revenue and FTE levels of participants established SUSTAINABLE BUSINESS PRACTICE Establish Waitakere Enterprise as a leader in sustainable • The impact of WE’s activities be carbon zero business practice. • Sustainable Action Plan performance objectives met or exceeded • A sustainable practice component to all Business Awards categories • All business advisors trained in sustainable business practice • Actively support the Sustainable Business network BUSINESS ATTRACTION, EXPANSION AND RETENTION Deliver a business attraction, expansion and retention • 50 active or completed client facilitations comprising service, including a priority for marine and green technology business owners and/or developer/investor relationships businesses. • 20 businesses locate, expand or are retained in Waitakere using the service COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED • 200 jobs attracted, expanded or retained by clients Deliver the Waitakere ‘A-list’ Key Client Management • 40 A-list clients Service in partnership with Council. • 100% of Waitakere’s A-list companies remain in Waitakere • 100% service level commitment on consents processing SECTION ONE timeframes in accordance with the joint WE/WCC Service Level Agreement achieved • 80% client satisfaction

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 7 COUNCIL CONTROLLED ORGANISATIONS CONTINUED

PERFORMANCE MEASURE PERFORMANCE TARGET Establish a venture capital service connecting private equity • Board established to capital constrained growth businesses. • Private sector equity investor network established • Deal ﬂ ow mechanisms established • Systems and procedures established BUSINESS NETWORKING AND AWARDS Deliver the 2008 Waitakere Business Awards programme. • 75 entries • 500 attend Gala Dinner event • $75,000 of unpaid/unsponsored media coverage Sponsor, market and run the Waitakere Business Club and • 15 events per annum Business After 5 events. • Total cumulative attendance 1,300 • Business Club membership exceeds 2,000 Deliver the West Women networking series. • 6 events held per annum • Total cumulative attendance 200 KEY INDUSTRY SUPPORT Provide marketing communications and investment strategy • Marketing communications and investment strategies support to WPL for the Hobsonville Marine Precinct. completed and executed Maintain the Destination Waitakere website. • 135 businesses featured Provide a ﬁ lm permit facilitation service. • 150 permits facilitated

PART TWO: SKILLED AND PRODUCTIVE LABOUR FORCE

PERFORMANCE MEASURE PERFORMANCE TARGET FOUNDATION SKILLS Deliver foundation skills youth and ESOL programmes. • 80% average occupancy of 25 places and 60% achievement of positive destination outcomes for youth training • 10 places for Alternative Education secondary school students • Maori and Paciﬁ c youth participation exceeds 50% • 80% average occupancy of 55 places and 60% achievement of positive destination outcomes for ESOL training

COUNCIL CONTROLLED ORGANISATIONS COUNCIL CONTROLLED Deliver adult numeracy and literacy based programme. • 100% average occupancy of 30 adult literacy places Establish a workplace literacy service. • 10 organisations serviced POST-SCHOOL TRANSITION Implement the Gateway programme in partnership with • 400 students participate Waitakere Secondary Schools. • Average unit standard achievement exceeds the national

SECTION ONE average of 16 Establish a Waitakere Job Fair. • 40 companies and 5 schools participate Support the Waitakere Youth Transitions service. • Steering and Advisory Group membership maintained

8 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE COUNCIL CONTROLLED ORGANISATIONS

PERFORMANCE MEASURE PERFORMANCE TARGET EDUCATION ACHIEVEMENT AND ALIGNMENT Support and champion the Waitakere Education Sector Trust • Membership of the Waitakere Education Sector Trust and implementation of the Waitakere Learning Plan. Provide a leadership role to the local PTE network, • Chair role of ESOL providers network maintained advocating alignment and relevance. • Youth providers network maintained

OTHER SHAREHOLDINGS

The Council also has the following shareholdings, but does not have beneﬁ ts of control.

WATERCARE SERVICES LIMITED The Local Government Amendment Act 1998 vested in the Council a 16.6 percent shareholding in Watercare Services Limited. The Act speciﬁ es that Watercare’s shareholders must retain their shares and that Watercare must not pay any dividend. Watercare Services Limited supplies bulk water and wastewater services primarily to local government and its trading enterprises in the Auckland region.

AUCKLAND REGIONAL TRANSPORT NETWORK LIMITED Auckland Regional Transport Network Limited (ARTNL) was established in July 2001 by six of the territorial local authorities in the Auckland Region for the purposes of managing certain transport assets. The shareholders have now resolved to transfer responsibility for the management ARTNL’s net assets to the Auckland Regional Transport Authority (ARTA) at nil consideration. Once these assets are transferred the Company will be wound up.

PRIME WEST LIMITED This is a recently established company which will own the assets of the Henderson Valley Film Studios. Council has a 44 percent shareholding in this company with the balance held by an unrelated third party.

PRIME WEST MANAGEMENT LIMITED This company is 40 percent owned by Waitakere Properties Limited with the balance owned by unrelated third parties. The company has been set up to manage the business of the Film Studios.

NORTH WEST AUCKLAND AIRPORT LIMITED Waitakere City Council, North Shore City Council and Rodney District Council own 25 percent of the share in this company with the balance held by an unrelated third party. The company is essentially inactive at the present time awaiting a decision by Central Government on the future of the Whenuapai Air Base.

THE NEW ZEALAND LOCAL GOVERNMENT INSURANCE CORPORATION LIMITED ORGANISATIONS COUNCIL CONTROLLED The Council has a 1 percent shareholding in New Zealand Local Government Insurance Corporation Limited, a company that provides risk ﬁ nancing products to local government and its trading enterprises in New Zealand. SECTION ONE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 9 SUMMARY WATER AND SANITARY SERVICES ASSESSMENT

In 2005, Waitakere City Council assessment of risks to the community, an assessment of quality and adequacy of publicly notiﬁ ed the draft Assessment services provided, and statements on the following: of Water and Sanitary Services: Statement of Proposal, prepared • Current and estimated future demands for the services as a requirement of Section 125 • Options available to meet current and future demands of the Local Government Act 2002 (LGA or the Act). Public notice was • The Council’s intended role given in compliance with the ‘special • The Council’s proposals for meeting current and future demands consultative procedures’ under Section 89 of the Act. Below is a list of key proposals that emerged from WASSA in 2005

That draft Assessment, also known as Water Supply • Reduce domestic water usage per person by 25% by 2025 WASSA (Water and Sanitary Services Assessment), was subsequently Wastewater • A 50% reduction in wastewater overﬂ ows by 2025 reviewed and updated in light of Stormwater • Reduce ﬂ ooding and improve the quality of streams, feedback received and formally lakes and harbours adopted by the Council on 28th June Solid Waste • Progress Council’s Zero Waste strategy by 2015 2005. It describes services provided by the Council for water supply, Cemeteries • Provide a new cemetery or extend Waikumete Cemetery wastewater, stormwater, solid waste, by 2016 cemeteries and crematoria, and public Public Toilets • Complete the current 5-year programme and thereafter toilets. facilitate the provision of new public toilets

Over three years on from its original SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY release, WASSA 2005 has been SIGNIFICANT CHANGES SINCE 2005 reviewed and updated to include signiﬁ cant issues and areas of The key to preserving water, our most vital resource, is behavioural change - from progress to the end of 2008. Schedule institutions right down to street level. Every citizen of every community must 10 Clause 3 of the Act states that the understand the problem and feel involved in bringing about the solution. This is next Long Term Council Community integrated water resources management or IWRM, a way of living and working, SECTION ONE Plan (LTCCP) of a territorial authority through all levels of society, in harmony with the Earth’s natural water cycle. Since must contain a summary of the last WASSA 2005, IWRM has become the basis for responsible water management Assessment that was made. in Waitakere. Regionally too, IWRM is rapidly gaining recognition as vital to sustainable water management in Auckland. The WASSA scope includes a description of water and sanitary The Public Health Act 1956 was recently reviewed with respect to the provision of services provided by the Council, an drinking water services and the outcomes will have major cost repercussions for

10 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE SUMMARY WATER AND SANITARY SERVICES ASSESSMENT

bulk water providers and councils as water suppliers. Planning adoption of Option 4 in principle as the preferred option of for population growth, the requirements of the Air Land and the four scenarios for current and future management for Water Plan regarding catchment discharge consents, the water, wastewater and stormwater services. Option 4 was new water and wastewater bulk supply agreements, and the embedded into the Long Term Council Community Plan regional Three Waters Strategy are just some of the issues process from that time and continues to underlie the policies, and developments to have occurred or progressed signiﬁ cantly strategies and works programmes of the LTCCP 2009-2019 in the 3-year period since WASSA 2005. planning horizon.

No extensions were made to the water supply reticulated In alignment with the Regional Growth Strategy, Waitakere’s network in Waitakere over the 3-year period since WASSA Growth Management Strategy has a policy of directing 2005. the majority of growth (approximately 78%) to take place within the City’s Metropolitan Urban Limit (MUL). Urban Small extensions to the wastewater reticulated network (the containment is an important objective as it brings effi ciencies Inner Drainage Area, or IDA) in the Birdwood area, Massey and urban sustainability. The Growth Management Strategy North and the Hobsonville corridor will also become part of will also ensure that the design quality of new development the IDA by 2012 as these areas are developed in accordance is suffi ciently high that future housing stock supports and with the Regional Growth Strategy for Auckland. encourages a sustainable lifestyle. This can be achieved by promoting development that supports and encourages high There are over 110 stormwater treatment facilities owned and quality urban design principles. The Growth Management operated by the Council. As evidence of the effectiveness Strategy openly acknowledges and demonstrates its of these devices, 91 tonnes of contaminated sediment was respect for environmental constraints and protects the recently removed from the Central Park stormwater quality health of its natural resources by avoiding development in pond and taken to a secure deposition site. This material environmentally sensitive areas. would otherwise have been discharged into the Taikata and Waitemata receiving environment. The Auckland Regional Air Land and Water Plan (ALWP) contains specifi c provisions relating to the management In 2006, new key performance indicators (KPIs) were of stormwater, wastewater and contaminants. Section introduced by the Council, requiring a response within two 5.4.6 requires territorial authorities to prepare catchment days to complaints regarding on-site wastewater disposal management plans in order to promote the integrated and systems. sustainable management of diversions, discharges and associated river and lake bed activities. The preparation A position has been created within the Council for a Water of Integrated Catchment Management Plans (ICMP) is Supply Quality Assurance offi cer. The primary responsibility consistent with the integrated and comprehensive approach is to implement and maintain the water supply public health envisaged by the ALWP and to date Waitakere has gained risk management plan in compliance with the Health consent for the Hobsonville, New Lynn East and Coastal (Drinking Water) Amendment Act 2007 (to the Public Health Area, Totara and Waiarohia catchments. The conditions of Act 1956). consent for an approved ICMP are many and complex, and have signifi cant ongoing implications for the Council. The Code of Practice for City Infrastructure and Land Development is being amended to include a new standard for The Health (Drinking Water) Amendment Act 2007 (the Act) water-tightness in wastewater networks, including the latest was enacted on 17 October 2007 and came into force on 1 technologies, reduced number of manholes, and improved July 2008. Overseas water quality incidents have prompted ASSESSMENT SERVICES AND SANITARY WATER SUMMARY practices for infl ow and infi ltration reduction. The Code the New Zealand government to review health standards is also being updated to incorporate Low Impact Design for drinking water and in doing so New Zealand appears to principles for stormwater. be leading the way. The impact upon the country’s water industry is still unfolding as suppliers of drinking water There are now 6,019 properties within Waitakere that use investigate the detailed ramifi cations. The Council and Local on-site wastewater disposal systems. 5,032 of these are Government New Zealand made submissions on the Act, SECTION ONE the older septic tank systems, while there are now 987 ‘hi- with a specifi c concern being that the potential costs and tech’ treatment systems with annual maintenance services likely benefi ts had not been clearly demonstrated, given that provided by the vendor. drinking water standards and quality are already very high here. Local Government New Zealand estimated The 2005 WASSA Water and Sanitary Services Assessment that compliance costs for the whole country was adopted by the Council on 28 June 2005. This included would be in the order of $600 million.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 11 SUMMARY WATER AND SANITARY SERVICES ASSESSMENT CONTINUED

One major issue identifi ed by WASSA 2005 was the need 2005 process. The two key strategies are: to reduce wastewater overfl ows. Since 2005, the Council has intensifi ed asset inspections of catchments on a Water Supply • Reduce domestic water usage per priority basis in areas with higher numbers of overfl ows. person by 25 percent by 2025 This is then promptly followed up with remedial action that Wastewater • A 50 percent reduction in includes removal of blockages, repair of damaged pipes and wastewater overfl ows by 2025 manholes, replacement of displaced or broken chamber lids and, where required, mitigation of hydraulic bottlenecks or • Consideration of targeted rates or undersized pipes. wastewater charges based on 80 percent of water use

HIGHLIGHTS The new water supply and wastewater tariff structures provide good incentive for Waitakere to press ahead toward A water supply demand reduction of 3 percent, down from achieving these goals, through water demand management 167 to 162 litres/person/day, has been achieved for the year techniques and progressive reduction of infi ltration and infl ow ending June 2008. of stormwater into the wastewater network, resulting in lower peak wastewater fl ows and volumes. On 6 June 2008 the Council received confi rmation from the Ministry of Health that the recently prepared “Public Health In 2005, Council staff and representatives from several rural Risk Management Plan” was approved, with respect to the communities joined forces to form the Wastewater Liaison Act’s new requirements for water supply and with a number Group (WLG) and in August 2006 published the fi rst “Action of specifi c and general recommendations. The Council has Plan for Improving On-Site Wastewater Disposal in Waitakere commenced a comprehensive programme to review current City”. Emerging from the Action Plan, two progressive Local practices against the approved risk management plan, the Water Agenda Groups (‘LWAGs’) have been operating for Ministry’s recommendations and the Act’s requirements, and over three years - one each for Huia-Cornwallis and Piha- is on track to complete a practical action plan for compliance Karekare - both successful in proactively improving water, by 30 June 2009. wastewater and stormwater practices in these two rural communities. In 2004, the Auckland local network operators and Watercare jointly published the landmark report “From the Sea to the WATER AGENDA GROUPS Sky: The Auckland Water Management Plan”, which set a target of reducing regional gross per capita water demand by An exciting technology demonstration project is nearing 5% over the 20-year period to 2024. Waitakere is developing approval for construction in Huia. It is “Project Pipi”, the fi rst some innovative forms of community education that will zero-energy, zero-discharge, (almost)-zero-maintenance pay dividends in ways well beyond water use behaviour. on-site wastewater system in Waitakere. We call it a ‘no-tech’ Approximately 3000 water demand ‘retrofi t’ packages system. Project Pipi is the initiative of the Huia-Cornwallis are required a year to ensure that Waitakere achieves Local Water Agenda Group and will demonstrate this our advanced demand management target of 25 percent promising new approach to on-site wastewater disposal as a reduction in the 20 year period. Volumetric-based wastewater shared or ‘cluster’ system for the Huia Hall and neighbouring charging and stepped tariffs will enhance the process and Huia Settlers Museum. There is no power or pumping required

SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY continued leak reduction will also be required. However, and very minimal, simple maintenance that any homeowner the Rating Act does not empower the Council to charge for can perform. Upon approval of the resource consent wastewater or implement stepped tariffs. application by ARC, the system will be installed and operating by mid-2009. Watercare Services Ltd provides bulk water supply and wastewater services to the Auckland region at present. The very successful West Coast Technology Open Day,

SECTION ONE This will change as a result of the forthcoming governance a one-day family festival, was held at Piha Domain on restructuring in the Auckland region. The agreement 10 November 2007. While children played games and negotiated with Watercare is considered to provide incentives competitions, their parents viewed a wide variety of new for demand management through the revised tariff structures technologies being offered to rural residents for fresh water for water and wastewater bulk services. The Council has collection and treatment, sustainable energy solutions, and established a range of strategic priorities for water and on-site treatment and disposal of domestic wastewater. Over wastewater by community consultation through the WASSA 25 vendors displayed their products and over 3,000 people

12 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE SUMMARY WATER AND SANITARY SERVICES ASSESSMENT

attended the festival throughout the day. Feedback from bylaw was in fact no longer appropriate. Instead, the group the community strongly supported the Council’s initiative to recommended to the Council that by continuing to implement provide public education and direction of this kind. the WLG Action Plan along with the septic tank pump-out services, the principles of the old bylaw would be achieved Also through the Local Water Agenda Group forum, the more affectively. In the case of water supply, the existing Piha-Karekare and Huia-Cornwallis communities asked bylaw was reviewed and strengthened, and the contents used the Council to investigate on-site wastewater disposal to develop a guidelines manual entitled “Conditions of Supply systems in their areas. This was in response to increasing for Potable Water” produced to assist customers. community awareness of the polluting effects of aging on-site wastewater systems. Since the winter of 2006, the Council Waitakere’s three year pump out schedule – To assist rural has conducted representative investigations of about 15 property owners to maintain their on-site wastewater systems percent of residential and community facility wastewater in good order, the Council provides a rolling three-year pump systems in these communities. While about 87 percent of out and inspection programme for 5,030 septic tank systems the properties investigated had average-to-good on-site in the jurisdictional area. This service has been provided wastewater systems, 13 percent were below standard and since 1998. This process has been signiﬁ cantly enhanced of these, 8 percent were considered a moderate to serious over the last ﬁ ve years, both in its on-site service and health risk. The Council is working collaboratively with the feedback, and through an improved database record system. owners of below-standard systems to assist them in making Where faulty or otherwise below-standard systems are found, the required improvements. the Council works collaboratively with these property owners to help them through the process of rectifying their system. Water quality monitoring - As another objective of the Wastewater Liaison Group’s Action Plan, the Council has been The recently completed Environment Strategy for Waitakere working to expand the existing water quality testing regime on was received by the Policy and Strategy Committee of the West Coast beaches, streams and lagoons, and to make the Council on 7 August 2008 and adopted at its 4 December information more accessible to the public. The water quality 2008 meeting. The Environment Strategy has been monitoring programme has made it possible for the Council to carefully designed to give effect to Auckland’s Sustainability issue timely warnings to beach users at times when test results Framework goals. Delivery on the Environment Strategy indicate that pollution may exceed the Ministry of Health objectives will also contribute towards implementation of guidelines for beach and lagoon bathing. Test results are now the Waitakere Ranges Heritage Area Act 2008 with regard regularly posted to the Council’s website and the public are to protection and enhancement of natural values. The key encouraged to check this information regularly. targets of the Environment Strategy are:

A national environmental standard for on-site wastewater Green Network • Complete an ecologically systems has been proposed by the Ministry for the continuous network which links Environment, which would include a three-yearly pump- the Waitakere Ranges along the out requirement within an inspection and warrant of ﬁ tness stream and open space networks system. This is a welcome initiative and a vindication of a to the coastal areas by 2025. process that Waitakere has been promoting for some years. Low Carbon City • Reduce community greenhouse Both the Council and several Waitakere community groups gas emissions by 40% per capita have sent in submissions in support of the standard and of from the 2001 base by 2021. the Council continuing to implement its own three-yearly ASSESSMENT SERVICES AND SANITARY WATER SUMMARY pump-out regime. • Reduce corporate emissions by 50% from the 2001 base by 2021. ON-SITE SYSTEMS MANAGEMENT Integrated water • Decrease in per capita demand management for the mains water by 25% by LGA 2002 Bylaw review - The Local Government Act 2002 2025.

requires that each local authority review its existing bylaws. SECTION ONE • Reduce wastewater overfl ows by For all bylaw reviews, the Territorial Local Authority (TLA) 50% by 2025. had fi rst to determine whether the bylaw was the most appropriate way of addressing the perceived problem. For Waste into • 70% of residential waste and 35% Bylaw No. 19 1990 Septic Tanks and Disposal Systems , a Resources of general waste received by the sub-group of the Wastewater Liaison Group was assigned Transfer Station diverted from to conduct an in-depth review, which concluded that a landfi ll by 2015.

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The Council will take a leading role to ensure these targets Waikumete, Opanuku, Pixie and Swanson Streams, with a are met. This will include developing and implementing an sustainable community development approach. The PTS action plan to reduce corporate and community greenhouse catchment has a population of 103,000 people and covers gas emissions, advocating for and facilitating sustainable 10,000 hectares. transport modes, and continuing to develop initiatives to encourage water use effi ciency and minimise waste The goal of Project Twin Streams (PTS) is to create a generation. sustainable catchment: healthy land, streams and harbours, and strong, connected communities that are both happy and The “Three Waters Strategic Planning Programme” is being responsive to the challenges they face. The PTS stream undertaken Watercare Services Ltd and the Councils and restoration programme underpins this goal by improving local network operators of the Auckland region. Its core stormwater quality and fl ow regimes, and was seen as the objective is to tackle the major issues underpinning a region- fi rst stage in a co-ordinated approach to the complex and wide approach to Auckland’s future requirements for the serious environmental issues facing these large areas of provision of services in all Three Waters. The Plan declares Waitakere City. The second stage of the project builds that the most pressing Three Waters issue facing the region on the stream restoration process and involves working is wastewater, which is the major focus of its strategy. In alongside households and neighbourhoods to encourage addition, the plan recognises the major benefi ts of reducing lifestyle changes toward more sustainable living. This has water demand in terms of delaying the need for new potable already proved very successful in the pilot phase known as water sources to be developed. An intrinsic achievement of the Sustainable Household-Sustainable Living Programme the Plan’s development process was bringing the region’s in Ranui, Swanson and Glen Eden. To address the wider water management organisations together to produce one catchment issues, an integrated approach toward dealing strategy for the region, a further step toward true integrated with stormwater, wastewater, water supply and ground water water resources management. in a planned, co-ordinated manner is needed. This work is underway through a catchment-wide integrated catchment SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY management plan process that is set in the context of an PROJECT TWIN STREAMS integrated water resource management framework.

Project Twin Streams (PTS) is an From the beginning of PTS, it was recognised that none of innovative, multi-faceted Council- the major issues around water could be effectively managed Community project that focuses on without signiﬁ cant engagement of the community. The Project SECTION ONE achieving long-term, sustainable Twin Streams way of working has proved overwhelmingly and integrated management of the successful in engaging with the diverse communities and Henderson Creek and Huruhuru cultures of Waitakere. The model for contracting community Creek contributing catchments. This organisations has built strong community ownership of project weaves together the issues of the issues and a keen desire to be part of the long-term integrated stormwater management solutions. This council-community partnership model and the restoration of stream banks along the Oratia, creates a solid foundation for meeting the challenge of

14 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE SUMMARY WATER AND SANITARY SERVICES ASSESSMENT

developing a community governance structure that will enable Project Twin Streams to continue ﬂ ourishing beyond the end of the Auckland Regional Holdings funding in 2012.

Over the last 6 years, PTS has achieved extensive planting of eco-sourced native plants, forming riparian corridors and enhancing the ‘backbone’ of the Green Network strategy by linking the Waitakere Ranges to the Waitemata Harbour. The following table provides summary ﬁ gures for planting and community contract activities in 2008 and since the project began:

Activity Organisation Stream 2008 Cumulative to date Stream planting by Te Ukaipo Mercy Initiatives for Swanson, Waimoko & 22,706 community contracts: Rangatahi Momutu Streams Swanson (local resident contracted) Swanson 875 Community Waitakere Henderson Creek 12,344 Corban Estate Arts Centre Opanuku 11,280 McLaren Park Henderson South Oratia 14,702 Community Initiative EcoMatters Environment Trust Waikumete, Bishop & 16,081 Whakarina Streams Subtotal: 77,988 Stream Planting by external contractors: Subtotal: 20,963 Total plantings: 98,951 382,421 Number of Community Contract Organisations 6 6 Number of Volunteers (individuals) 4,460 14,726 Number of Groups 67 154

The difference between PTS and other environmental projects is that it takes a sustainable community development approach. The assumptions underpinning this approach are: • People are more likely to make changes in behaviour when they understand the problem and are part of identifying the solutions. • Local communities are more knowledgeable for engaging local people. • Each community has its own diverse characteristics. • Creative learning methods that engage with people’s hearts and minds are more effective in creating meaningful and long- term behaviour change. • A partnership approach between communities; local, regional and central government, non-government organisations and local people will be a very effective way of achieving long-term change towards sustainability. SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY This community development model is proving extremely successful in facilitating diverse and signiﬁ cant community engagement in PTS. Nearly 15,000 volunteers have been engaged throughout the project. SECTION ONE

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• Use children as ‘infl uencers’ on family behaviors (where WATER AMBASSADORS KIDS CLUB viable) Waitakere City Council’s vision is for all residents to actively Discussions amongst the regional communications group participate in water conservation. The council is therefore, confi rmed that adults and children do not understand through EcoWater, encouraging a 25% reduction in mains water demand by 2025. We have identifi ed a weakness in just how they get drinking water and hence do not truly public understanding of why they get water bills, where the appreciate the value of water and why it should be used costs are incurred, and what the drinking water infrastructure more effi ciently. Therefore a public education programme comprises. needed to be established so that future messages to conserve water are understood for their relevance and Through work with Tirimoana School (an ‘enviroschool’), it implications. Without fundamental understanding of the costs became clear that children wanted to know why infrastructure ramifi cations of creating new ‘sets’ of pipes and treatment was so expensive- why would it cost $350m to obtain a new stations. our messages will fall on deaf ears. This Club is a water source – what would it mean? What could they do to support programme for any other educational programmes stop wasting drinking water at home? or campaigns developed in the future. It is medium to long term oriented, though it is expected to have some short-term Thus a new idea for Waitakere, and possibly even New infl uence too. Zealand, has come to fruition – the Water Ambassadors Kids Club, launched in March 2008. The ‘nerve centre’ is an The Water Ambassadors Kids Club targets young children online website for fi ve to ten year olds who are passionate at an open and impressionable age who are interested and about helping to protect our precious drinking water, save passionate about caring for their water resource and happy Mum and Dad money and help save the environment. It is to share this information and learning opportunities with their hosted on the council’s website but looks very different and families. Indirectly this could provide an ancillary resource can be easily accessed via its own internet address at www. for schools to tap into but it is not intended to be included SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY waterambassadors.co.nz . formally into any of their current programmes.

The primary objectives of this initiative are: It is also home-based and ‘online’ so as to keep costs down • To assist children to understand that drinking water is a and to engage children through a medium they understand ﬁ nite resource and needs care in its consumption and respond to - the internet. Children aged 5-8 are likely to require some parental assistance while visiting the site and

SECTION ONE • To position the council as this is considered a good thing- to engage children along a helpful entity that assists with their parents. Some activities will require active parental everyone, no matter what their involvement, which will further spread our water messages age, to lead more sustainable lifestyles within families, reaching adults who might not necessarily respond to adult-oriented promotional materials. • Encourage pride and leadership in children aged 5-10 years

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CEMETERIES & CREMATORIA THE SANITARY SERVICES Burial services and sites at the Waikumete Cemetery and the smaller Swanson Cemetery have been provided since SOLID WASTE the late 1800s and the Waitakere City Council is committed The Council, in its waste management planning and to continuing this service. Cemetery activities incorporate implementation, endeavors to be consistent with current providing a suitable and tranquil environment for burial, legislation and takes account of national strategy, regional cremation, ash and interment services. Included in this requirements and aspirations of the community to work activity is management of the plot asset, including services towards zero waste. The council has also worked with relating to occupied and pre-purchased plots. others TLA’s in the region to achieve regional strategic waste minimisation objectives. Opportunity is also provided At the chapel in Waikumete, the Council provides facilities throughout the planning processes to receive feedback from for cremation and burial services. The Chapel of Faith in the public and from those affected by the decisions made. the Oaks is a heritage building, previously leased from the Council and administered by the Chapel Restoration Trust, The council holds the view that waste produced or passed on and now returned to the Council (November 2008). by a person or business is their ultimate responsibility. This view is refl ected in the Council’s “user-pays”, which requires Waikumete Cemetery caters for a wide range of nationalities, those who generate waste in Waitakere City to be directly responsible for funding its proper collection and disposal. religions and beliefs as well as the armed services. However, there are some aspects of waste management • It is the only cemetery in Auckland providing burial are more challenging and require additional tools to achieve facilities for those of the Jewish faith and is one of only waste minimisation. The Council has several key roles in this two providing for Muslim burials. The Urupa also provides regard. burial plots for urban Maori who do not wish to be, or are not, affi liated with any particular marae. The Council recognises the need to assist individuals and • The Returned Services section, the largest in New businesses to reduce and manage their waste. This is done Zealand, is the last resting place for some 10,000 by providing direct refuse and recycling services, through members of the armed forces, who have died after regional and national advocacy, as well as developing returning from such service. initiatives that will engage the community in waste reduction. The Council’s role is also that of a regulator, to ensure public • A recent addition to burial options available at Waikumete health is protected and to enforce appropriate policies is the eco burial area, which provides for remains to and bylaws that support effi cient and effective waste be interred in a grave that is unmarked apart from the management and minimisation. planting of a native tree. Caskets must be biodegradable and embalming of the body is not allowed. The Council continues to be involved in the provision of services where cost effi ciencies and the interests of It is to be noted that, in addition to the provision of burial community health and environmental protection have been services at Waikumete, Council’s responsibility extends identifi ed. Currently these services include the provision of a to general management of the site incorporating all user-pays household waste collection and disposal service, infrastructure, facility, and access issues, to provide kerbside recycling collection, inorganic waste collection, a recreational access to the general public as determined by the Cemetery Conservation Plan 2001. This includes

litter and illegal dumping collection and a transfer station ASSESSMENT SERVICES AND SANITARY WATER SUMMARY which also accepts household hazardous waste. The Council conservation of the area as a signiﬁ cant cultural heritage site continues to be a contract manager to a range of service as determined in the Cemetery Conservation Plan. providers and plays a role in facilitating access to high quality resource recovery and waste disposal services. The The Council also provides an accurate and substantial council will also to seek out partnerships with others who database of all burials and cremations since play an important role in achieving zero waste, such as our 1886 for genealogy enquires. SECTION ONE neighbouring communities, central and regional government agencies, the waste industry, businesses, community groups Key issues facing the cemeteries & crematoria services and individuals within the community. include capacity constraints, asset condition, pandemic

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response and sustainability. Key actions to be taken in order to address these issues include: PROGRESS ON • Renewal and upgrading of cemetery facilities including IMPLEMENTATION OF WASSA buildings, burial areas, roading, water supply, stormwater, and security 2005 • Improvement of asset data collection including mapping Of the four scenarios for current and future demand for water, all water piping and power, and GPS grave site mapping wastewater and stormwater, which were presented in WASSA to determine usage, capacity and location, and assist with 2005, Option 4 was adopted by the Council. This option genealogy searches presented the following scenario: • Assessment of Human Resource capacity to further assist with the funeral process All councils in the Auckland region work cooperatively, • Evaluation of alternate burial techniques (concrete sharing resources and skills, with a commitment to achieving sleeves/honeycomb) to maximise burial spaces an agreed integrated and sustainable approach to the three • Evaluation of the supply of caskets and general waters. For example, once Waitakere achieves the goal of information about funeral arranging rare wastewater discharges to the Upper Harbour, the impact of this improvement will be supported by similar approaches • The provision for accommodation of service providers, for from North Shore City Council and Rodney District Council. example a fl orist, at the cemetery • Remembrance services to commemorate all funerals held each year Scenario 4 achieves the eco city vision quickly across the • Reporting on eco friendly disposal options of cadavers region and taken as a whole, will add up to: • Holding open days for education and information • A sustainable and integrated approach to the use of our • Securing and preserving all cemetery records water resources across the region • Rebinding of all cemetery books • A region wide commitment to establishing and maintaining native vegetation in the green corridors of • Updating the brochure, physical and on-line, to outline all the City to protect and enhance the native birds, fi sh and services insects that live in our environment • Designing a new web page and genealogy research • Watercourses that are protected, enjoyed and valued by paths. everyone • Being able to walk along our streams, fi nd native fi sh and PUBLIC TOILETS hear native bird song The Council’s thinking on public toilets is that they should only be supplied where use is expected to be high and sustained, and where people have travelled some distance and don’t have access to their home toilet, or where there are no other facilities that provide that function. This includes citywide parks, within town centres and where associated with transport stations. SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY The provision of toilets is frequently requested but is often a contentious issue, especially for immediate neighbours. Toilets are also expensive to supply and maintain and therefore their need is rigorously considered before expending public funds on new assets. SECTION ONE Placement of new toilets also takes into consideration the Crime Prevention Through Environmental Design (CPTED) principles, ease of access (barrier free), and proximity to the activity.

18 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE SUMMARY WATER AND SANITARY SERVICES ASSESSMENT

Giving effect to the scenario were the six primary targets. What progress is Waitakere making toward achieving these? The table below provides a statement of progress for each target, three years on from WASSA 2005:

Water Supply • Reduce domestic water • Average domestic water use in 2007/2008 was 162 l/p/day, down 3% usage per person by 25% from previous year by 2025. • 2009-2019 LTCCP provides enhanced water demand management programme to reduce usage to 150 l/p/d by 2011 Wastewater • A 50% reduction in • In 2007/2008 there were 16.2 sewer overfl ows per 1000 properties. wastewater overfl ows by • Draft 2009-2019 LTCCP aims to reduce this to less than 13 per 1000 2025. props by 2011 • A targeted rate - no progress, as existing legislation does not yet permit this • On-site wastewater bylaw issues now more effectively managed through WLG Action Plan Stormwater • Reduce fl ooding and • 78 at-risk properties purchased as part of Project Twin Streams improve the quality • 111 stormwater quality devices throughout city to reduce pollutant of streams, lakes and loads harbours. • Development in new growth areas to incorporate a treatment train approach • Implementation of Project Twin Streams Solid Waste • Progress Council’s Zero • Comprehensive programme of kerbside recycling, composting, and Waste strategy by 2015. user-pays inorganic collection enhanced to minimise visual impacts Cemeteries • Provide a new cemetery • Waikumete capacity to be extended, Resource Management Act or extend Waikumete process to commence early 2010 Cemetery by 2016. Public Toilets • Complete the current • New toilets built in Karekare, and additional units being incorporated 5-year programme and in new rail stations thereafter facilitate the provision of new public toilets

The key targets will be reviewed for progress, affordability and practicality of achievement as part of the 2009-2019 LTCCP process. SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY SECTION ONE

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management, and three wastewater management issues REGULATORY REVIEW – on-site wastewater systems in unserviced areas, COMMENTS ongoing management of on-site systems, and public toilets. ARC’s comments were predominantly in agreement As part of the WASSA 2005 process, the Ministry of Health with the Council’s strategies and current practices, and Auckland Regional Authority were invited, as regulators and complimentary of the WASSA 2005 document’s of certain territorial local authority activities, to review the thoroughness and quality. Constructive comments regarding Assessment and provide comments. Both organisations Waitakere’s water and wastewater demand management responded to the invitation and together submitted 49 strategies and wastewater overfl ows were made and are individual comments, to which the Council replies in section being incorporated into current practices. 1.2 of the WASSA 2009 review. The 2005 Assessment of Water and Sanitary Services The Ministry of Health was complimentary on a number of addressed the requirements of the Local Government Act points in the WASSA 2005 report. Concerns raised about the 2002 in a comprehensive manner. Looking back after almost frequency of the Assessment process, public input to health fi ve years, it has also contributed signifi cantly to the Council’s risk management, backfl ow prevention, rainwater harvesting progress on a number of fronts related to the three waters and re-use, fl uoridation of town water, and tankered water and sanitary services, and in particular has paved the way for supply were able to be satisfactorily answered either because the incorporation of integrated water resource management of actions already undertaken by the Council since 2005 or principles into the Council’s environmental and social initiatives already in the planning stage and to be included in strategies for the near future. the next full WASSA assessment proposed in 2012. This 2009 WASSA review provides a concise record of The Auckland Regional Council submitted 39 individual advances made by the Council in progressing the outcomes of comments and requests for further information. These the 2005 assessment. related to stormwater, water supply, wastewater, water SUMMARY WATER AND SANITARY SERVICES ASSESSMENT SERVICES AND SANITARY WATER SUMMARY SECTION ONE

20 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SUMMARY SOLID WASTE MANAGEMENT PLAN

“Zeroing in on Waste” is the Council’s Solid Waste Management Plan adopted in 2005. It is the Council’s guiding document for the management of waste as WASTE REDUCTION required by the Local Government Act 1974, Local Government Amendment Act INITIATIVES 1996 and the Local Government Act 2002. The major objective of the plan is to support the principles of the local government legislation, the New Zealand Waste Major national, regional and local Strategy and Regional Waste Reduction. infl uences of waste reduction initiatives are the New Zealand Waste Strategy, VISION the Memorandum of Understanding between Waitakere City Council, North The vision for waste in Waitakere is that: Shore City Council and the Rodney Waitakere will be a clean and attractive city that turns all its waste into District Council, the Waitakere City resources. Zero waste does not mean that no rubbish will be produced. It Council Solid Waste Management Plan means that we will deal with it in such a way that to the greatest possible and the Waitakere City Council Waste extent, it is turned back into useful resources and not simply dumped into Bylaw 2005. landfi ll. In September 2008 the Waste Minimisation Act 2008 was enacted, TARGET introducing a range of measures including a new defi nition of waste The overall target is for zero waste to landfi ll by 2020. This effectively means that and diverted material, the concept of any residual waste to landfi ll will be of an inert and harmless nature. product stewardship, a waste disposal levy and new responsibilities for territorial authorities in relation to waste GUIDING PRINCIPLES management and minimisation. Other SUMMARY SOLID WASTE MANAGEMENT PLAN MANAGEMENT WASTE SOLID SUMMARY legislation relevant to the management The Solid Waste Management Plan draws on the guiding principles of the of Solid Waste includes: internationally recognised waste management hierarchy:

• Local Government Act 1974 AVOID REDUCE REUSE RECYCLE RECOVER RESIDUAL DISPOSAL • Litter Act 1979, which regulates litter in public places SECTION ONE Choose Produce Use a Produce Source Residue to products less waste product new material landﬁ ll • Health Act 1956, which aims to that again in products energy prevent nuisance and promote Produce its original from used health minimal form material • Hazardous Substance waste and New Organisms

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Act 1996, which regulates the use of hazardous 2. Work collaboratively and creatively towards the zero substances waste targets. • Resource Management Act 1991 3. Use and encourage best practice and innovative methods • Proposed Regional Plan – Air, Land and Water, which of waste management and waste reduction using the regulates discharges and includes requirements for “Five Rs” hierarchy – reduce, reuse, recycle, recover, and the management of Solid Waste treatment or storage as a last resort, residual to landfi ll. facilities (landfi lls and transfer stations). 4. Identify and develop local business and employment opportunities based on better resource use. 5. Help strengthen and enhance the economic, social FORECAST FOR WASTE and environmental performance of the recycling and GROWTH remanufacturing industries. 6. Manage the environmental impacts of all closed landfi lls The key factors infl uencing the generation of waste are and other contaminated sites that are the Council’s population and economic growth. Based on medium growth responsibility, and develop a framework for management rates, the Council estimates that the total waste generated of privately owned contaminated sites. in Waitakere will increase from 136,000 tonnes per year 7. Endeavour to be a good role model in the management of to 179,000 tonnes per year by 2021 (Water and Sanitary its own properties and services. Services Assessment 2005).

PRIORITY AREAS LANDFILL CAPACITY The top priority areas for waste minimisation are:

A basic analysis of the Auckland region’s waste disposal • Resource recovery centre fully operational landfi ll capacity suggests that there is suffi cient future land • Kerbside recycling and composting of organic waste capacity for landfi ll for at least the next ten years, even • Zero waste project and pilot scheme funding accounting for future population growth. • Container deposits – extended producer responsibility and product stewardship WASTE MANAGEMENT IN THE • Construction and demolition – waste diversion from FUTURE landfi ll • Landfi ll bans The Council’s Solid Waste Management Plan will be • Educational material and programmes and cleaner reviewed in the near future given the introduction of new production projects. legislation and government reviewing the targets set in the New Zealand Waste Strategy. The goals for zero waste are over the next ten years are to:

1. Support the New Zealand Waste Strategy by advocating a Waste Management structure for New Zealand SUMMARY SOLID WASTE MANAGEMENT PLAN MANAGEMENT WASTE SOLID SUMMARY that provides incentives for waste minimisation and disincentives for waste. SECTION ONE

22 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SUMMARY OF ACTIVITY STATEMENTS

Details 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Forecast LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s)

COSTS OF ACTIVITIES (NET OF INTERNAL RECOVERIES) Water Supply 14,234 14,864 16,696 18,133 19,775 21,563 23,629 25,835 27,177 28,273 29,039 Wastewater 3,136 3,426 3,712 3,955 4,295 4,499 4,851 5,181 5,559 6,003 6,264 Watercare Services Limited Charges 16,060 16,390 17,578 18,660 20,339 20,949 21,787 23,748 25,411 27,697 30,190 Stormwater 2,449 2,752 2,848 2,991 3,766 3,968 4,180 3,870 4,091 4,322 4,576 Parks and Open Spaces 14,571 15,079 14,863 15,520 16,494 17,736 19,065 20,105 21,389 22,562 23,416 Transport Assets 12,002 12,901 13,675 14,673 15,590 16,341 17,020 17,893 18,887 19,736 20,727 Property 3,936 4,490 4,541 4,718 5,019 5,131 5,253 5,383 5,513 5,633 5,765 Cemetery 1,336 1,412 1,454 1,496 1,533 1,569 1,607 1,642 1,686 1,734 1,800 Solid Waste 13,641 13,357 13,924 14,377 14,791 15,258 15,756 16,316 16,845 17,425 18,049 Libraries and information services 8,790 8,668 8,952 9,245 9,476 9,707 9,946 10,201 10,506 10,783 11,102 Emergency management 1,129 975 1,009 1,038 1,068 1,096 1,122 1,154 1,186 1,218 1,255 Leisure 2,791 2,537 2,586 2,662 2,737 2,808 2,900 3,096 3,203 3,295 3,369 Aquatic and Recreation Centre 5,324 5,693 5,890 6,028 6,190 6,352 6,522 6,711 6,903 7,117 7,304 Arts Events and Communications 5,476 5,767 6,674 8,021 6,443 6,712 6,620 6,917 7,064 7,285 7,430 Animal Welfare 1,988 2,120 2,175 2,239 2,287 2,349 2,397 2,465 2,527 2,601 2,667 Field Services 5,368 5,373 5,621 5,747 5,946 6,250 6,407 6,540 6,732 6,914 7,120 Resource Management and Building 1,363 1,137 1,169 1,199 1,330 1,282 1,289 1,322 1,361 1,397 1,438 Consent Services 12,956 11,930 12,263 12,588 12,901 13,208 13,528 13,873 14,292 14,666 15,097 Vehicle Testing Station 1,153 1,223 1,284 1,235 1,221 1,252 1,283 1,316 1,356 1,391 1,432 Quarry 145 159 164 168 172 176 209 214 219 0 0 Strategic Projects 2,189 1,994 1,753 1,665 1,604 1,643 1,571 1,612 1,664 1,709 1,762 Social and Cultural Strategy 4,825 6,053 5,261 5,228 5,137 5,256 5,380 5,513 5,502 5,646 5,807 Strategic Planning 9,555 9,370 8,878 9,659 9,807 10,084 9,826 10,481 10,239 10,471 10,806 Chief Executive’s Ofﬁ ce 2,419 2,766 2,849 2,921 2,993 3,007 3,079 3,155 3,243 3,325 3,418 Quality Assurance 489 475 488 533 514 526 573 553 569 621 602 Finance 3,343 6,284 6,428 6,801 6,847 6,992 7,401 7,439 7,662 8,124 8,201 Maori Relationships 535 635 606 634 639 668 673 701 709 740 748

Democracy and Support STATEMENTS ACTIVITY OF SUMMARY Services 3,778 5,399 5,278 4,352 4,524 5,065 4,692 4,801 5,490 5,074 5,297 Human Resources 1,552 1,816 1,869 1,894 1,974 2,014 2,070 2,133 2,194 2,267 2,331 Information Management 1,032 3,740 4,554 5,124 4,946 5,294 5,122 5,320 5,631 5,717 5,984 Legal Services 3,289 3,411 3,321 3,499 3,586 3,783 3,910 4,219 4,390 4,660 4,867 Service Management 6,846 6,412 6,581 6,687 6,872 7,066 7,254 7,556 7,887 8,122 8,376 Project Services 58 (111) (145) (128) (126) (107) (92) (78) (26) (9) 28 SECTION ONE Customer Services 3,521 4,140 4,446 4,627 4,763 4,896 5,040 5,186 5,367 5,526 5,710

TOTAL 171,279 182,637 189,245 198,189 205,453 214,393 221,870 232,373 242,428 252,045 261,977

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 23 SUMMARY OF ACTIVITY STATEMENTS CONTINUED

DEPRECIATION Water Supply 3,682 3,743 4,003 4,244 4,486 4,755 5,004 5,323 5,647 5,993 6,369 Wastewater 5,250 5,344 5,584 5,823 6,063 6,355 6,621 6,943 7,255 7,588 7,947 Stormwater 5,008 5,280 5,495 5,677 5,880 6,126 6,383 6,712 7,006 7,306 7,887 Parks and Open Spaces 4,361 4,559 4,937 5,410 6,163 7,051 7,253 7,517 8,242 8,920 8,894 Transport Assets 11,422 12,240 13,440 14,716 16,455 17,519 19,430 21,018 21,777 22,705 23,453 Property 2,607 2,615 2,613 2,616 2,505 2,396 2,291 2,339 2,400 2,445 2,480 Cemetery 235 221 253 288 301 287 302 343 342 275 330 Solid Waste 280 309 274 226 224 192 209 216 242 251 212 Libraries and information services 1,707 1,242 1,247 1,351 1,396 1,483 1,535 1,632 1,843 2,018 2,089 Emergency management 85 168 169 172 257 260 263 262 257 172 126 Leisure 0 141 141 273 490 490 490 490 490 490 490 Aquatic and Recreation Centre 1,666 1,327 1,421 1,475 1,474 1,239 1,167 1,173 1,073 1,018 882 Arts Events and Communications 10 0 0 0 0 33 33 33 33 33 33 Animal Welfare 46 46 46 41 35 27 23 22 22 22 22 Field Services 79 79 79 79 77 77 77 77 77 77 77 Consent Services 4 2 1 1 1 1 1 1 1 1 1 Vehicle Testing Station 6 7 6 4 5 5 3 3 3 3 2 Strategic Projects 1 0 0 160 160 320 1,019 1,019 1,019 1,019 1,049 Social and Cultural Strategy 3 0 0 0 0 0 0 0 0 0 0 Strategic Planning 7 0 119 119 119 119 119 119 119 119 119 Chief Executive’s Ofﬁ ce 1 1 2 3 4 5 6 7 8 8 9 Democracy and Support Services 1,980 1,721 1,721 1,709 1,654 1,654 1,654 1,654 1,654 1,653 1,642 Human Resources 1 1 1 0 0 0 0 0 0 0 0 Information Management 2,903 3,282 3,574 3,700 3,564 3,853 4,148 4,073 3,989 3,540 2,991 Service Management 334 327 327 327 327 327 327 327 327 327 327 Project Services 6 6 5 3 3 3 3 3 3 1 0 Customer Services 5 0 0 0 0 0 0 0 0 0 0 Motor Vehicles 827 1,000 1,227 1,223 1,422 1,434 1,630 1,795 2,030 1,906 2,008

SUMMARY OF ACTIVITY STATEMENTS ACTIVITY OF SUMMARY TOTAL 42,516 43,661 46,685 49,640 53,065 56,011 59,991 63,101 65,859 67,890 69,439

INTEREST Water Supply 1,388 1,495 1,973 2,293 2,563 2,786 2,966 3,070 3,142 3,192 3,207 Wastewater 3,355 3,978 4,777 5,667 6,627 7,451 8,072 8,399 8,388 8,088 7,514 SECTION ONE Stormwater 2,766 3,280 3,939 4,673 5,465 6,143 6,656 6,925 6,916 6,669 6,196 Parks and Open Spaces 2,860 3,390 4,070 4,829 5,647 6,348 6,877 7,156 7,147 6,890 6,403 Transport Assets 10,597 12,562 15,085 17,896 20,929 23,528 25,491 26,522 26,488 25,540 23,729 Other Interest 6,020 7,134 8,567 10,163 11,885 13,361 14,476 15,061 15,042 14,504 13,475

TOTAL 26,986 31,839 38,411 45,521 53,116 59,617 64,538 67,133 67,123 64,883 60,524

24 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE SUMMARY OF ACTIVITY STATEMENTS

OTHER ITEMS AND ADJUSTMENTS Remuneration Payable and Organisational Costs 0 440 0 0 0 0 0 0 0 0 0 Aotea Centre Levy 82 30 31 32 32 33 34 35 35 36 37 ARC Rates 256 275 284 291 298 304 311 318 325 333 341 Museum Levy 2,003 2,717 2,807 2,871 2,940 3,002 3,068 3,139 3,211 3,288 3,370 Zoo Grant 27 0 0 0 0 0 0 0 0 0 0 MOTAT 763 1,101 1,137 1,164 1,192 1,216 1,243 1,272 1,301 1,332 1,366 Regional Levies 0 970 1,240 1,268 1,299 1,326 1,355 1,386 1,418 1,452 1,489 Housing Consortium 200 200 207 211 216 221 226 231 236 242 248 Revaluation of Aftercare Liability 254 0 0 0 0 0 0 0 0 0 0 Global Adjustments 963 (387) 1,221 1,723 1,791 1,850 1,883 1,947 2,008 2,074 2,132 Transfer to Plant Renewal Fund (827) (1,000) (1,227) (1,223) (1,422) (1,434) (1,630) (1,795) (2,030) (1,906) (2,008)

TOTAL 3,721 4,346 5,700 6,337 6,346 6,518 6,490 6,533 6,504 6,851 6,975

ACTIVITY REVENUE Water Supply 20,981 22,870 24,949 27,138 29,487 32,220 35,061 38,370 41,808 45,589 49,748 Wastewater 566 547 565 581 606 655 713 784 850 915 955 Stormwater 901 646 576 522 447 464 443 461 451 468 487 Parks and Open Spaces 445 609 644 675 710 745 785 826 870 913 959 Transport Assets 6,034 6,488 6,856 7,303 7,680 8,043 8,348 8,741 9,198 9,579 10,023 Property 2,043 2,396 2,697 2,946 2,929 3,011 3,099 3,192 3,275 3,346 3,424 Cemetery 1,907 1,834 2,067 2,090 2,411 2,606 2,823 3,060 3,315 3,608 3,924 Solid Waste 12,778 13,016 13,832 14,328 14,848 15,388 15,890 16,421 16,965 17,536 18,138 Libraries and information services 333 520 542 560 579 597 615 635 656 678 707 Emergency management 24 47 49 29 29 30 30 31 32 33 33 Leisure 473 488 515 540 620 653 683 721 761 800 846 Aquatic and Recreation Centre 5,065 5,699 5,962 6,273 6,569 7,017 7,176 7,331 7,614 7,789 7,976 Arts Events and Communications 155 54 56 57 58 60 61 62 64 65 67 STATEMENTS ACTIVITY OF SUMMARY Animal Welfare 1,261 1,308 1,381 1,428 1,478 1,525 1,576 1,630 1,687 1,746 1,810 Field Services 4,574 4,857 5,062 5,204 5,260 5,340 5,425 5,513 5,605 5,702 5,803 Resource Management and Building 30 30 31 32 32 33 34 35 35 36 37 Consent Services 12,107 11,461 11,839 12,112 12,403 12,663 12,942 13,240 13,545 13,870 14,217 Vehicle Testing Station 1,169 1,221 1,262 1,311 1,359 1,388 1,418 1,451 1,484 1,520 1,558 SECTION ONE Quarry 530 485 501 534 547 558 570 583 597 0 0 Strategic Projects 0 0 0 833 987 1,856 1,959 2,071 2,190 2,318 2,456

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 25 SUMMARY OF ACTIVITY STATEMENTS CONTINUED

Social and Cultural Strategy 819 905 935 805 825 842 860 880 901 922 945 Strategic Planning 81 247 183 186 167 250 196 194 178 209 222 Democracy and Support Services 34 1,673 862 52 53 220 55 57 235 59 61 Information Management 96 250 258 264 162 166 169 173 177 182 186 Legal Services 155 75 77 79 81 83 85 87 89 91 93 Finance 464 609 643 669 693 727 785 842 890 943 968 Service Management 3 3 3 3 3 3 3 3 4 4 4 Project Services 40 40 41 42 43 44 45 46 47 48 50 Customer Services 512 614 807 844 852 799 816 814 827 847 868

TOTAL 73,580 78,992 83,195 87,440 91,918 97,986 102,665 108,254 114,350 119,816 126,565

OTHER REVENUE AND TRANSFERS Rates 129,339 135,687 148,882 164,031 181,255 199,603 220,241 244,316 271,520 302,131 335,967 Surplus on Property Sales 0 300 0 0 0 0 0 0 0 0 0 Additional Rates Penalty 580 0 0 0 0 0 0 0 0 0 0 Te Atatu BID Targeted Rate 0 70 72 0 0 0 0 0 0 0 0 Glen Eden BID Targeted Rate 0 45 46 48 0 0 0 0 0 0 0 Rugby World Cup Targeted Rate 0 285 792 1,691 0 0 0 0 0 0 0 NZTA Subsidy on Renewals 7,154 7,160 7,886 8,659 9,403 10,282 10,984 11,827 12,716 13,642 14,578 NZTA Subsidy on Footpaths 0 0 103 106 108 111 113 116 119 122 124 NZTA Subsidy on Capital Expenditure 10,609 27,041 30,353 9,703 15,270 7,421 3,287 3,450 3,092 3,470 2,998 Development Contributions 14,813 7,298 10,056 13,077 19,902 21,828 27,394 30,062 30,074 35,827 37,261 Financial Contributions 3,099 2,714 2,273 2,489 2,813 2,970 2,898 2,799 2,336 2,102 2,097 Other Capital Recoveries 11,288 11,152 10,640 28,031 8,290 5,970 8,407 0 0 0 0

SUMMARY OF ACTIVITY STATEMENTS ACTIVITY OF SUMMARY Vested Assets - Transport and Roads 5,253 2,000 16,032 28,812 45,592 34,642 31,922 32,332 27,932 24,152 24,332 Vested Assets - Parks and Reserves 0 0 0 0 6,703 13,517 283 385 30,382 2,467 1,713 Vested Assets - Wastewater 1,084 3,000 3,200 3,500 3,900 4,000 4,000 4,000 4,000 4,000 4,000

SECTION ONE Vested Assets - Stormwater 2,709 4,900 5,300 5,800 6,200 6,300 6,300 6,300 6,300 6,300 6,300 Vested Assets - Water Supply 542 800 1,000 1,100 1,200 1,200 1,200 1,200 1,200 1,200 1,200

26 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE SUMMARY OF ACTIVITY STATEMENTS

Interest Received 9 0 0 0 0 0 0 0 0 0 0 Revaluation 0 0 721 520 555 496 531 568 581 621 662

TOTAL 186,479 202,452 237,356 267,567 301,191 308,340 317,560 337,355 390,252 396,034 431,232

SUMMARY

OPERATING COSTS Costs of Activities (Net of Internal Recoveries) 171,279 182,637 189,245 198,189 205,453 214,393 221,870 232,373 242,428 252,045 261,977 Depreciation 42,516 43,661 46,685 49,640 53,065 56,011 59,991 63,101 65,859 67,890 69,439 Interest 26,986 31,839 38,411 45,521 53,116 59,617 64,538 67,133 67,123 64,883 60,524 Other Items and Adjustments 3,721 4,346 5,700 6,337 6,346 6,518 6,490 6,533 6,504 6,851 6,975

TOTAL OPERATING COSTS 244,502 262,483 280,041 299,687 317,980 336,539 352,889 369,140 381,914 391,669 398,915

OPERATING REVENUE Activity Revenue 73,580 78,992 83,195 87,440 91,918 97,986 102,665 108,254 114,350 119,816 126,565 Other Revenue and Transfers 186,479 202,452 237,356 267,567 301,191 308,340 317,560 337,355 390,252 396,034 431,232

TOTAL OPERATING REVENUE 260,059 281,444 320,551 355,007 393,109 406,326 420,225 445,609 504,602 515,850 557,797

OPERATING SURPLUS 15,557 18,961 40,510 55,320 75,129 69,787 67,336 76,469 122,688 124,181 158,882 SUMMARY OF ACTIVITY STATEMENTS ACTIVITY OF SUMMARY SECTION ONE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 27 CAPITAL EXPENDITURE AND LOAN PAYMENTS

Details 2008/2009 2009/2010 2009/2010 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Budget LTCCP Carry Total LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP LTCCP Forward ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s) ($000’s)

CHIEF EXECUTIVE AND MAYORAL AND MEMBERS LIAISON Sustainability projects 50 50 0 50 52 53 54 55 56 58 59 61 62

TOTAL 50 50 0 50 52 53 54 55 56 58 59 61 62

STRATEGIC PROJECTS

Old New Lynn Hotel 222 1,804 0 1,804 0 0 0 0 0 0 0 0 0 Corban Estate Performing Arts Centre Design 944 0 0 0 0 0 0 0 0 0 0 0 0 Corban Estate Access Road 991 0 0 0 0 0 0 0 0 0 0 0 0 Westgate Strategic Land Acquisition 10,290 0 4,290 4,290 0 0 0 0 0 0 0 0 0 Corban Estate Paciﬁ c Island Centre 50 0 0 0 0 0 0 0 0 0 0 0 0 Corban Estate Development 0 300 0 300 0 0 0 0 0 0 0 0 0 Strategic Land / Property Acquisitions 38,380 4,600 9,800 14,400 0 0 0 0 0 0 0 0 0 Lincoln Land Acquisition and Compensation 3,453 0 0 0 0 0 0 0 0 0 0 0 0 Henderson Vineyard Campus 2,642 0 0 0 0 0 0 0 0 0 0 0 0 Waitakere Information Access Project 5,000 0 0 0 0 0 0 0 0 0 0 0 0 Wilsher Village Redevelopment 2,500 1,903 1,684 3,587 5,948 9,026 8,512 5,609 7,964 0 0 0 0 New Lynn Development 0 0 0 0 517 1,057 0 0 0 0 0 0 0 New Lynn Carparks 0 1,000 0 1,000 7,475 582 7,829 0 0 0 0 0 0 Glen Eden Town Centre 0 300 0 300 310 0 0 0 0 0 0 0 0 Hobsonville Marina 0 967 0 967 0 0 0 0 0 0 0 0 0

TOTAL 64,472 10,874 15,774 26,648 14,250 10,665 16,341 5,609 7,964 0 0 0 0

DEMOCRACY AND SUPPORT Plant Replacement 1,273 733 0 733 1,032 1,407 1,607 668 1,529 2,052 2,532 1,073 2,059 New Civic Centre and Ofﬁ ces 25 25 0 25 26 26 27 28 28 29 30 30 31

TOTAL 1,298 758 0 758 1,058 1,433 1,634 696 1,557 2,081 2,562 1,103 2,090

CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL EMERGENCY SERVICES Warning System 25 0 0 0 0 0 0 0 0 0 0 0 0 Replacement Pumps and Hoses for Rural Fire Stations 4 0 0 0 0 5 0 0 6 0 0 6 0 Emergency Management System 25 0 0 0 0 0 0 0 0 0 0 0 0 UPS and Repeater Hut Battery Upgrade 6 0 0 0 0 0 6 0 0 0 7 0 0 SECTION ONE Response Team Clothing Upgrade 10 30 0 30 0 0 11 33 0 0 12 36 0 Maps Upgrade 0 5 0 5 0 0 5 0 0 6 0 0 6 Siren System Battery Replacement 0 0 0 0 0 25 0 0 0 34 0 0 37 Base and Vehicle Radios Upgrade 0 0 0 0 8 0 0 0 9 0 0 0 10 Karekare Fire Truck Replacement 0 0 0 0 0 149 0 0 0 0 0 0 0 Waitakere Fire Truck Replacement 0 0 0 0 0 0 0 155 0 0 0 0 0

28 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

Rural Fire Tanker Replacement 0 0 0 0 0 0 87 0 0 0 0 0 0 Handheld and Base Set Radio Upgrade 0 0 0 0 0 0 22 0 0 0 24 0 0 Upgrade Rescue Unit Trailer 0 5 0 5 0 0 0 0 0 0 0 0 0 Fire Weather Index Equipment Upgrade 0 0 0 0 5 0 0 0 6 0 0 0 6 Reporting Centre Radio Upgrade 0 0 0 0 13 0 0 0 13 0 0 0 15

TOTAL 70 40 0 40 26 179 131 188 34 40 43 42 74

INFORMATION MANAGEMENT Information Management Capital Expenditure Projects 9,000 3,830 1,127 4,957 2,789 2,927 3,615 3,259 3,952 3,928 3,782 4,018 3,970

TOTAL 9,000 3,830 1,127 4,957 2,789 2,927 3,615 3,259 3,952 3,928 3,782 4,018 3,970

LIBRARIES Ranui Library 1,216 3,155 951 4,106 0 0 0 0 0 0 0 0 0 Smarter Systems 668 100 0 100 41 32 22 22 47 23 118 24 25 Learning Centre for Massey 129 0 0 0 0 0 0 0 0 0 0 0 0 NorSGA / Massey North Library 0 0 0 0 7,050 7,213 0 0 0 0 0 0 0 Radio Frequency Identiﬁ cation Devices 703 0 670 670 517 528 541 552 113 116 59 0 0 Te Atatu Peninsula Library 2,442 0 2,442 2,442 0 528 5,411 0 0 0 0 0 0 Titirangi Learning Centre 65 26 99 125 0 0 0 0 0 0 0 0 0 Oral History Digital Recorders 14 0 0 0 0 0 0 0 0 0 0 0 0 Oral History Digital Editing Suite 0 25 0 25 0 0 0 0 0 0 0 0 0 Library Books 1,500 750 0 750 1,240 1,480 1,515 1,547 1,581 1,617 1,655 1,694 1,737

TOTAL 6,737 4,056 4,162 8,218 8,848 9,781 7,489 2,121 1,741 1,756 1,832 1,718 1,762

PUBLIC AFFAIRS Functional Art Projects 40 40 0 40 58 67 76 79 83 84 90 94 99 Lopdell House Redevelopment 4,086 1,718 4,086 5,804 0 0 1 0 0 0 0 0 0 Art Acquisitions 20 25 0 25 35 36 38 47 48 50 51 54 56

Paciﬁ c Island Arts 23 0 0 0 0 0 0 0 0 0 0 0 0 PAYMENTS AND LOAN EXPENDITURE CAPITAL Events Equipment 11 15 0 15 21 26 27 33 34 35 41 42 43 Utility Boxes 25 30 0 30 36 42 49 55 56 58 59 61 62 Olympic Park Railway Bridge Arts 50 0 50 50 0 0 0 0 0 0 0 0 0 State Highway 16/18 Artwork 50 75 0 75 77 211 0 0 0 0 0 0 0 Auckland Regional Council Sculpture Park 30 0 0 0 0 0 0 0 0 0 0 0 0

City Branding 50 50 0 50 52 53 54 55 56 58 59 61 63 SECTION ONE Public Artwork Urgent Remediation 10 40 0 40 46 53 54 55 56 58 59 61 62 Touch Poll Survey Equipment 10 10 0 10 10 11 11 11 11 12 12 12 12 Lopdell House Carparking Project 1,350 0 1,350 1,350 0 0 0 0 0 0 0 0 0

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 29 CAPITAL EXPENDITURE AND LOAN PAYMENTS CONTINUED

New Lynn Arts Infrastructure 0 0 0 0 208 106 0 0 0 0 0 0 0 Massey North Arts 0 0 0 0 103 210 216 0 0 0 0 0 0 Digital Arts 0 0 0 0 103 106 108 0 0 0 0 0 0

TOTAL 5,755 2,003 5,486 7,489 749 921 634 335 344 355 371 385 397

STRATEGIC PLANNING DP Appeals Contingency 1,900 0 515 515 0 0 0 0 0 0 0 0 0 Bethells Walkway 200 0 186 186 0 0 0 0 0 0 0 0 0 Climate Change Projects 100 63 0 63 129 132 135 138 141 144 148 151 155 Retroﬁ tting the City 0 1,000 0 1,000 0 0 0 0 0 0 0 0 0

TOTAL 2,200 1,063 701 1,764 129 132 135 138 141 144 148 151 155

SOLID WASTE Miscellaneous Upgrades 12 0 0 0 0 0 0 0 0 0 0 0 0 Sweeper truck 180 0 0 0 0 0 0 0 0 0 0 0 0 Concrete Extensions to Recycling Centre 76 0 0 0 0 0 0 0 0 0 0 0 0 Tipping Floor Upgrade 61 0 0 0 0 0 0 0 0 0 0 0 0 Remediation 45 0 0 0 0 0 0 0 0 0 0 0 0 Storage Area Roof 30 0 30 30 0 0 0 0 0 0 0 0 0 Plant Replacement 75 0 75 75 0 0 0 0 0 0 0 0 0 Litter Bins 67 0 0 0 0 0 0 0 0 0 0 0 0 Amenities Block 365 0 206 206 0 0 0 0 0 0 0 0 0 Hardﬁ ll Site - Storage Bunkers 0 0 0 0 0 42 0 0 0 0 0 0 0 Learning Centre - Road and Retaining Wall 0 0 0 0 0 48 0 0 0 0 0 0 0 Learning Centre - Clean and Paint 0 15 0 15 0 0 0 0 0 0 0 0 0 Litter Bin Upgrades 0 0 0 0 0 0 65 0 0 0 0 0 0 Plant Trees on Site 0 0 0 0 31 0 0 0 0 0 0 0 0 Main Building - Clean and Paint 0 0 0 0 52 0 0 0 0 0 0 0 0 Refuse Tipping Floor - Ramp Gate 8 0 0 0 0 36 0 0 0 0 0 0 0 0 Replace 3.5 tonne Forklift 0 85 0 85 0 0 0 0 0 0 0 0 0 Resource Recovery Centre - Clean and Paint 0 0 0 0 0 26 0 0 0 0 0 0 0 Environment Maintenance 0 0 0 0 0 0 54 0 0 0 0 0 0 CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL Hardﬁ ll Site - Capping and Grass Seeding 0 0 0 0 0 43 0 0 0 0 0 0 0 New Waterblaster 0 0 0 0 0 0 0 0 11 0 0 0 0 Tipping Floor - Refurbish Load Out Dock 0 0 0 0 0 0 70 0 0 0 0 0 0 Remedial Site Works - Refurbish Roading 0 0 0 0 0 0 0 0 0 40 77 0 0 Replace 15 ton Wheel Loader 0 0 0 0 0 0 0 0 260 0 0 303 0 Plant Replace - Upgrade 5.0 tonne Excavator 0 0 0 0 0 0 0 72 0 0 0 0 81 SECTION ONE Security Camera Upgrade 0 0 0 0 0 0 0 50 0 0 0 0 0 Staff Amenities - Exterior Painting 0 0 0 0 0 0 0 0 34 0 0 0 0 Replace Suspended Lighting 0 0 0 0 0 0 0 11 0 0 0 0 0 Replace Worn Tipping Floor 0 0 0 0 0 0 0 82 0 0 0 0 0 Replace 4.0 tonne Forklift 0 0 0 0 0 0 0 0 107 0 0 0 0 Learning Centre - Roof Replacement 0 0 0 0 0 0 0 0 51 0 0 0 0

30 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

Remedial Work - Drain and Concrete 0 0 0 0 0 0 0 0 62 0 0 0 0 Replace Existing Cardboard Palﬁ nger Crane 0 0 0 0 0 0 0 0 0 0 130 0 0 Replace 20 ton Excavator 0 0 0 0 0 0 0 0 0 168 0 0 0 Refurbishment of Weighbridge Interior 0 0 0 0 0 0 0 0 0 0 41 0 0

TOTAL 911 100 311 411 119 159 189 215 525 208 248 303 81

FIELD SERVICES Parking Meters 18 0 0 0 0 0 0 0 0 0 0 0 0 Pay and Display Machine Upgrade 0 50 0 50 0 0 0 0 0 0 0 0 0

TOTAL 18 50 0 50 0 0 0 0 0 0 0 0 0

CONSENT SERVICES Weather Tightness 1,250 1,250 1,250 2,500 1,291 1,321 1,353 1,381 1,412 1,444 1,477 0 0

TOTAL 1,250 1,250 1,250 2,500 1,291 1,321 1,353 1,381 1,412 1,444 1,477 0 0

ANIMAL WELFARE Administration Ofﬁ ce Upgrade 70 0 0 0 0 0 0 0 0 0 0 0 0 Small Animal Centre 103 0 0 0 0 0 0 0 0 0 0 0 0 Security Fencing 77 0 52 52 0 0 0 0 0 0 0 0 0 Upgrade Quarantine Block 20 0 20 20 0 42 0 0 0 0 0 0 0 Accommodation Block (Dangerous Dogs) 120 0 120 120 0 0 0 0 0 0 0 0 0 Double Horse Trailer 0 11 0 11 0 0 0 0 0 0 0 0 0 Keyless Security Access 0 28 0 28 0 0 0 0 0 0 0 0 0 Extend Vet Clinic 0 0 0 0 52 0 0 0 0 0 0 0 0

TOTAL 390 39 192 231 52 42 0 0 0 0 0 0 0

VEHICLE TESTING STATION Diesel Emissions Testing Machine 20 0 0 0 0 0 0 0 0 0 0 0 0 Testing Station Equipment 0 0 0 0 0 21 0 0 0 0 0 0 0 CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL

TOTAL 20 0 0 0 0 21 0 0 0 0 0 0 0

PROJECT SERVICES Waitakere Central Transport Interchange 1,231 0 0 0 0 0 0 0 0 0 0 0 0

SECTION ONE TOTAL 1,231 0 0 0 0 0 0 0 0 0 0 0 0

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 31 CAPITAL EXPENDITURE AND LOAN PAYMENTS CONTINUED

LEISURE Extension to Ranui Community House 80 0 80 80 0 0 0 0 0 0 0 0 0 Hockey Turf 1,852 0 1,852 1,852 0 0 0 0 0 0 0 0 0 McLaren Park Henderson South Community Facility 993 1,000 943 1,943 0 0 0 0 0 0 0 0 0 Youth Facility and Recreation Centre Upgrade 500 0 0 0 0 0 0 0 0 0 0 0 0 Te Atatu Peninsula Community Centre Redevelopment 2,275 0 2,128 2,128 0 0 0 0 0 0 0 0 0 Community Halls Upgrade 0 20 0 20 21 21 22 22 23 24 24 25 25 Leisure Facility Partnerships 1,528 0 1,450 1,450 516 0 541 0 565 0 0 0 0 Community Facility Massey / West Harbour 317 0 317 317 0 0 0 0 0 0 0 0 0 Kelston Community Facility Detail Design 120 1,120 0 1,120 0 0 0 0 0 0 0 0 0 Starling Park New Clubrooms 1,000 0 900 900 0 0 0 0 0 0 0 0 0 Massey North Community Centre 0 0 0 0 620 6,340 0 0 0 0 0 0 0 Massey North Youth Facility 0 0 0 0 0 0 0 0 0 0 0 0 186 Massey Leisure Centre Extension 0 0 0 0 0 106 1,224 0 0 0 0 0 0 New Lynn / Glen Eden Recreation Centre 0 0 0 0 0 53 649 552 6,775 0 0 0 0 New Lynn Youth Facility 0 0 0 0 0 0 0 0 0 0 0 0 186 Recreation Centre Te Rangi Hiroa 0 0 0 0 52 106 1,082 0 0 0 0 0 0 West Harbour Community House 0 0 0 0 0 0 0 0 169 1,155 0 0 0

TOTAL 8,665 2,140 7,670 9,810 1,209 6,626 3,518 574 7,532 1,179 24 25 397

AQUATIC CENTRE Aquatic Centre Renewals 216 472 82 554 233 388 271 382 254 323 221 246 210 Aquatic Centre Capital Expenditure 166 477 76 553 349 180 162 23 0 92 21 0 0

TOTAL 382 949 158 1,107 582 568 433 405 254 415 242 246 210

PARKS PLANNING

Oratia Domain / Birdwood Escarpment Land Purchase 550 0 180 180 0 0 0 0 0 0 0 0 0 CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL Parks Planning and Analysis 63 15 0 15 21 21 22 22 23 24 24 25 25 Parks Subdivision Works 21 0 0 0 0 0 0 0 0 0 0 0 0 Community Amenity Streams Restoration and Planting 58 58 0 58 60 61 63 65 67 69 70 72 74 Keep Waitakere Beautiful Trees for Babies 21 21 0 21 22 22 23 23 24 25 26 26 27 Reserve Management Plans 154 100 0 100 103 106 109 112 115 118 122 124 127 SECTION ONE Keep Waitakere Beautiful Neat Streets Tree Planting 10 10 0 10 10 11 11 11 12 12 12 12 13

TOTAL 877 204 180 384 216 221 228 233 241 248 254 259 266

32 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

CEMETERY Cemetery Plant Renewals 10 0 0 0 0 0 0 0 0 0 0 0 0 New Radios and Mast 8 0 0 0 0 0 0 0 0 0 0 0 0 Flag Poles 10 10 0 10 10 11 11 11 11 12 12 12 12 Alternate Energy Supplies 40 0 0 0 0 0 0 0 0 0 0 0 0 Crematorium Safety Upgrades 10 0 0 0 0 0 0 0 0 0 0 0 0 Upgrade for Air Discharge Compliance 50 0 0 0 0 0 0 0 0 0 0 0 0 Development of Mausoleum Area 75 0 0 0 0 0 0 0 0 0 0 0 0 Roading and Footpaths 363 0 18 18 0 0 0 0 0 0 0 0 0 Drainage and Water Supply 100 0 30 30 0 0 0 0 0 0 0 0 0 Upgrade Concrete Beams 80 0 0 0 0 0 0 0 0 0 0 0 0 New Swanson Gate 40 0 0 0 0 0 0 0 0 0 0 0 0 Development of Public Mausoleum Area 200 0 0 0 0 0 0 0 0 0 0 0 0 Development of New Burial areas 320 0 0 0 0 0 0 0 0 0 0 0 0 Expansion of Cemetery Capacity 200 0 120 120 0 0 0 0 0 0 0 0 0 Wash basin / Shelter for Urupa 10 0 0 0 0 0 0 0 0 0 0 0 0 Chapel Sounds 30 0 0 0 0 0 0 0 0 0 0 0 0 Security Camera 15 0 0 0 0 0 0 0 0 0 0 0 0 Smoke Alarm 5 0 0 0 0 0 0 0 0 0 0 0 0 Canopy for Chapel 50 0 0 0 0 0 0 0 0 0 0 0 0 Public Mausoleum 100 0 0 0 0 0 0 0 0 0 0 0 0 Property Renewals 11 0 0 0 0 0 0 0 0 0 0 0 0 Reception Area 30 0 0 0 0 0 0 0 0 0 0 0 0 Interpretation 20 0 0 0 0 0 0 0 0 0 0 0 0 Landscaping 90 0 35 35 0 0 0 0 0 0 0 0 0 Replacement Seats and Bins 0 21 0 21 22 25 0 27 27 28 0 29 30 Water Supply Upgrade 0 150 0 150 465 423 188 166 169 173 177 121 0 Wastewater Installation 0 10 0 10 41 0 0 0 0 0 0 0 0 Footpath Construction 0 38 0 38 0 0 0 0 0 0 0 0 0 Cemetery Roading and Footpaths 0 363 0 363 375 384 393 401 410 419 430 439 450 Public Mausoleum Site 0 430 0 430 0 0 0 0 0 0 0 0 0 Development of Burial Areas 0 320 0 320 331 338 346 354 361 370 406 387 397 Stormwater Installation 0 0 0 0 103 63 87 110 565 347 355 606 620 GPS Grave Location and Mapping 0 0 0 0 103 0 0 0 0 0 0 0 0

Expansion of Cemetery Capacity 0 0 0 0 0 106 108 0 0 0 0 0 0 PAYMENTS AND LOAN EXPENDITURE CAPITAL Swanson Access Upgrade 0 0 0 0 0 137 0 0 0 0 0 0 0 Chapel of Faith Restoration 150 800 0 800 0 0 0 0 0 0 0 186 191 Public Mausoleum Building 0 500 0 500 0 0 0 0 0 0 0 0 0 Property Renewals 0 11 0 11 0 0 0 0 0 0 0 0 0 Sextons House Conversion 0 0 0 0 206 0 0 0 0 0 0 0 0 Organ Replacement 0 0 0 0 52 0 0 0 0 0 0 0 0 SECTION ONE Property Renewals 0 0 0 0 11 12 12 12 13 13 13 14 14 Toilet Blocks 0 0 0 0 0 42 0 0 0 47 0 0 0

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 33 CAPITAL EXPENDITURE AND LOAN PAYMENTS CONTINUED

Depot Renewal 0 0 0 0 0 0 0 112 115 0 0 0 0 Roof Replacement (Butynol) 0 0 0 0 0 0 0 0 60 0 0 0 0 Park Signs 0 30 0 30 0 0 0 0 0 0 0 0 0 Security Camera Additions 0 45 0 45 0 0 0 0 0 0 0 0 0

TOTAL 2,017 2,728 203 2,931 1,719 1,541 1,145 1,193 1,731 1,409 1,393 1,794 1,714

PARKS AND GREEN ASSETS Buildings Upgrade 265 997 0 997 856 1,002 963 798 1,005 965 1,028 935 744 Carpark Upgrades 564 522 0 522 455 553 558 534 540 564 514 506 505 Fixtures and Furniture Replacements 652 398 0 398 400 421 347 445 332 436 352 495 406 Paths and Tracks Upgrades 534 469 0 469 483 523 510 491 539 562 570 533 596 Playground Upgrades 182 796 0 796 758 922 770 614 882 923 889 863 1,173 Planting Upgrades 240 150 0 150 155 122 163 112 173 178 182 186 191 Services Upgrades 421 297 0 297 320 307 269 206 217 233 207 262 200 Sports Facilities Upgrades 380 233 264 497 184 100 290 116 156 248 106 227 263 Sports Fields 632 911 0 911 917 1,028 781 689 777 1,038 652 992 912 Structures Upgrade 1,364 887 120 1,007 1,103 1,139 809 843 984 1,030 1,035 840 1,100 Lighting Programme 0 133 0 133 120 141 126 92 114 225 109 79 104 Asset Improvement 0 100 0 100 103 106 109 112 115 79 122 124 127 Upgrade Existing Sportsﬁ elds 0 168 0 168 122 157 183 132 193 130 115 0 121 Half Cost Fencing 27 20 0 20 31 32 33 34 35 59 36 37 50 Forward Design 85 50 0 50 52 53 54 56 58 36 61 62 102 Native Revegetation Programme 14 101 0 101 104 107 110 113 116 120 123 125 128 Parks Stormwater Drainage Programme 108 0 0 0 139 114 117 101 104 87 90 92 94 Te Atatu South Park New Road Frontage 0 77 0 77 0 0 0 0 0 0 0 0 0 Arboriculture Renewals 0 54 0 54 56 57 59 60 62 64 66 67 69 Sports Field Upgrades 300 0 0 0 0 0 0 0 0 0 0 0 0 Karekare Beach Toilet and Efﬂ uent System 450 0 0 0 0 0 0 0 0 0 0 0 0 Lighting at Harold Moody 10 0 0 0 0 0 0 0 0 0 0 0 0 Ken Maunder Bridge 1,047 372 839 1,211 0 0 0 0 0 0 0 0 0 Tui Glen Stage 2 Parking Pathways and Landscape 400 0 82 82 0 0 0 0 0 0 0 0 0 Harold Moody Stream Erosion Measures 25 0 0 0 0 0 0 0 0 0 0 0 0

CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL NorSGA Purchase and Development 14,108 0 9,108 9,108 0 0 0 0 0 0 0 0 0 Play Facilities Upgrade 375 0 0 0 0 0 0 0 0 0 0 0 0 Building Upgrades - Associated with Renewals 254 0 218 218 0 0 0 0 0 0 0 0 0 Herald Island Wharf / Domain 39 0 0 0 0 0 0 0 0 0 0 0 0 Shadbolt Park Sandﬁ elds 371 0 0 0 0 0 0 0 0 0 0 0 0

SECTION ONE Te Atatu Peninsula Walkway 460 0 412 412 0 0 0 0 0 0 0 0 0 Tree Planting 97 0 0 0 0 0 0 0 0 0 0 0 0 Asset Improvement Fixtures, Furniture and Pathways 250 0 0 0 0 0 0 0 0 0 0 0 0 Piha Domain and Campground 133 0 0 0 0 0 0 0 0 0 0 0 0 Community Board Projects 127 0 0 0 0 0 0 0 0 0 0 0 0 Revegetation Programme 214 0 0 0 0 0 0 0 0 0 0 0 0

34 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

Heritage Works 21 0 0 0 0 0 0 0 0 0 0 0 0 Parrs Park Playground 65 0 0 0 0 0 0 0 0 0 0 0 0 Rewarewa Esplanade Walkway 150 0 0 0 0 0 0 0 0 0 0 0 0 Te Pai Park Development 60 344 0 344 251 0 0 0 0 0 0 0 0 Netball Courts 1,605 520 0 520 0 0 0 0 0 0 0 0 0 Netball Waitakere Redevelopment 1,057 0 0 0 0 0 0 0 0 0 0 0 0 Parrs Park North East Development 0 45 0 45 763 670 0 0 0 0 0 0 0 Parks Stormwater Drainage Programme 0 135 0 135 0 0 0 0 0 0 0 0 0 Cranwell Park Croquet Club 0 0 0 0 0 0 0 279 0 0 0 0 0 Ken Maunder Number 1 Field 0 231 0 231 0 0 0 0 0 0 0 0 0 New Lynn Clay Pit 0 6,840 0 6,840 0 0 76 782 0 0 0 0 0 Te Atatu South Park Sandfi elds 0 0 0 0 0 0 27 628 0 0 0 0 0 Artifi cial Turf Sportsfi eld 0 0 0 0 31 1,957 0 0 0 0 0 0 0 Royal Reserve Development Stage 2 Playground 0 0 0 0 0 0 400 0 0 0 0 0 0 Hobsonville Village Area 5 Neighbourhood Park Plan Change 14 0 0 0 0 0 0 1,908 376 0 0 0 0 0 Buckley Road Streetscape and Trees Plan Change 13 0 0 0 0 0 0 1,457 123 0 0 0 0 0 Town Square Massey North Plan Change 15 0 718 0 718 0 0 49 703 0 0 0 0 0 Area 1 Corridor Park top Plan Change 15 0 0 0 0 0 0 4,031 823 0 0 0 0 0 Royal Reserve Development 0 0 0 0 0 0 0 98 1,297 0 0 0 0 Town Square Plan Change 14 0 0 0 0 0 0 0 360 666 0 0 0 0 Hobsonville Village Area 4 Neighbourhood Park Plan Change 14 0 0 0 0 0 0 0 1,334 206 0 0 0 0 Coastal Walkway Hobsonville Peninsula Plan Change 13 0 0 0 0 0 0 0 28 362 0 0 0 0 Corridor Park Area 2 Massey North Plan Change 15 0 1,107 0 1,107 0 0 0 9,689 3,750 0 0 0 0 Town Centre Community Park Plan Change 15 0 1,237 0 1,237 0 0 0 49 314 0 0 0 0 Civic Space Library (Pocket Parks) Plan Change 15 0 0 0 0 0 0 0 216 207 0 0 0 0 Hobsonville Transit Streets A07387 0 0 0 0 0 0 0 132 10 11 12 12 13 Massey North Northside Kedgeley Roads CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL A07387 0 0 0 0 0 0 0 58 60 62 63 65 66 Massey North Transit Streets A07387 0 0 0 0 0 0 0 264 143 519 284 291 297 Massey North Streets Rev C A07387 0 0 0 0 0 0 0 142 144 148 518 158 159 Hobsonville Streets Rev A A07387 0 0 0 0 0 0 0 92 93 96 95 101 99 Hobsonville Village Area 3 Plan Change 14 0 0 0 0 0 0 0 1,309 489 0 0 0 0 Hobsonville Road Plan Change 14 0 0 0 0 0 0 0 20 21 21 22 22 23 Bush 2 Hobsonville Peninsula Plan Change 13 0 0 0 0 0 0 0 0 136 233 0 0 0 SECTION ONE Catalena Green Plan Change 13 0 0 0 0 0 0 0 0 206 134 0 0 0 Upgrade existing fi elds - Starling Park 0 0 0 0 0 0 0 0 0 43 430 0 0 Bush 1 Hobsonville Peninsula Plan Change 13 0 0 0 0 0 0 0 0 0 140 239 0 573

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 35 CAPITAL EXPENDITURE AND LOAN PAYMENTS CONTINUED

Landing Road Plan Change 13 0 0 0 0 0 0 0 0 0 333 143 0 0 Hobsonville Village Area 6 Neighbourhood Park Plan Change 14 0 0 0 0 0 0 0 0 0 0 1,038 89 0 Development Corner Clarks Road and Scotts Road Plan Change 13 0 0 0 0 0 0 0 0 0 0 12 107 0 Deco Park 0 0 0 0 0 0 0 0 0 0 269 125 0 Sportsﬁ eld Plan Change 13 0 0 0 0 0 0 0 0 0 0 19,334 2,768 0 Lower Corridor Area 3 Massey North Plan Change 15 0 2,088 0 2,088 0 0 0 0 0 0 12,216 1,504 0 Hobsonville Village Area 2 Plan Change 14 0 0 0 0 0 0 0 0 0 0 1,703 299 0 Neighbourhood Park 1 Plan Change 13 0 0 0 0 0 0 0 0 0 0 0 733 263 Area 4 Plan Change 15 0 0 0 0 0 0 0 0 0 0 0 2,364 444 Area 5 Commercial Area Park Plan Change 15 0 0 0 0 0 0 0 0 0 0 0 0 2,201 Hobsonville Domain Development Area 1 0 0 0 0 0 0 0 0 0 0 0 0 57

TOTAL 27,086 20,000 11,043 31,043 7,403 9,511 14,199 23,053 14,506 8,717 42,635 15,063 11,080

TRANSPORT AND ROADS Sealed Road Renewals Professional Services 310 441 60 501 497 557 616 677 740 807 877 949 1,023 Sealed Road Renewals 9,960 8,303 0 8,303 9,637 13,707 15,187 16,948 18,282 19,936 21,676 23,489 25,325 Drainage System Renewals 952 1,003 0 1,003 1,055 1,150 1,170 1,222 1,275 1,330 1,389 1,450 1,510 Prof Services Drainage System Renewal 84 101 0 101 106 112 117 122 128 133 139 145 151 Trafﬁ c Facilities Renewals 585 618 0 618 657 700 746 796 849 906 968 1,035 1,103 Bridges 780 898 589 1,487 924 951 974 996 1,018 1,041 1,066 1,092 1,116 Bridges: Professional Services 55 151 0 151 155 160 164 167 171 175 179 184 188 Bus Shelter Renewals 234 273 0 273 281 289 296 303 309 317 324 332 339 Bus Stops 26 0 0 0 0 0 0 0 0 0 0 0 0 Pedestrian Rail Overbridge (Henderson) 139 0 137 137 0 0 0 0 0 0 0 0 0 Sturges Road Bridge Replacement Professional Services 1,404 0 1,280 1,280 0 0 0 0 0 0 0 0 0 Captain Scott Road Professional Services 210 0 0 0 0 0 0 0 0 0 0 0 0 Cochrane/Rolland Hill Rehab Professional Services 416 0 124 124 0 0 0 0 0 0 0 0 0

CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL Road Reconstruction / Rehabilitation 1,900 1,970 557 2,527 2,027 2,118 2,168 2,218 2,267 2,319 2,375 2,432 2,485 Pavement Smoothing (Lincoln/Te Atatu / Don Buck 130 0 0 0 0 0 0 0 0 0 0 0 0 Pavement Smoothing Great North Road/Awaroa//West 800 0 0 0 0 0 0 0 0 0 0 0 0 Footpath Renewals 950 893 0 893 1,137 1,296 1,340 1,385 1,430 1,477 1,528 1,580 1,631

SECTION ONE Vehicle Crossings 68 96 0 96 99 102 104 106 109 111 114 117 119 Miscellaneous Kerb and Channel Renewals 200 0 0 0 0 0 0 0 0 0 0 0 0 Professional Services Miscellaneous Kerb and Channel Renewal 20 0 0 0 0 0 0 0 0 0 0 0 0 Hui Seawall Renewal 284 215 30 245 180 266 197 211 231 240 0 0 0 Piha Drainage Renewals 177 0 0 0 0 0 0 0 0 0 0 0 0 Forest Hill Road/Pine Avenue Roundabout 300 0 0 0 0 0 0 0 0 0 0 0 0

36 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

Bend Treatment - General 200 200 0 200 206 212 217 222 227 232 237 243 249 Street Lights Renewals 0 1,200 0 1,200 1,235 1,271 1,301 1,331 1,360 1,392 1,425 1,459 1,491 Professional Services: Minor Safety 37 0 0 0 0 0 0 0 0 0 0 0 0 Minor Safety Projects 897 1,090 1,005 2,095 1,122 1,154 1,182 1,209 1,236 1,264 1,294 1,326 1,354 Slow Streets 105 107 0 107 110 113 116 119 121 124 127 130 133 Safe Routes to Schools 16 0 0 0 0 0 0 0 0 0 0 0 0 Scats and CCTV - optimisation 126 60 0 60 62 64 65 67 68 70 71 73 75 Great North Road - Edmonton / Ratanui 617 0 470 470 0 0 0 0 0 0 0 0 0 Triangle 200 0 0 0 0 0 217 388 0 0 0 0 0 Universal 1,790 0 0 0 0 0 0 0 0 0 0 0 0 Te Atatu Road: Edmonton to SH16 Ramps 889 0 0 0 0 0 0 0 0 0 0 0 0 Te Atatu / Vera : Layout and signal 1,052 0 0 0 0 0 0 0 0 0 0 0 0 Te Atatu / Jaemont bridge 636 0 0 0 0 0 0 0 0 0 0 0 0 Te Atatu SH16 Ramps 892 0 0 0 0 0 0 0 0 0 0 0 0 Buckley Motorway Ramps 200 1,200 199 1,399 0 0 0 0 0 0 0 0 0 Central Park Drive Extension Te Atatu Road 366 0 0 0 0 0 0 0 0 0 0 0 0 Westgate Drive / Route Improvement 38 0 38 38 0 0 0 0 0 0 0 0 0 Henderson Town Centre Edmonton/ Alderman 550 0 0 0 0 0 0 0 0 0 0 0 0 Henderson Town Centre - Way Finding 162 0 0 0 0 0 0 0 0 0 0 0 0 Westgate Town Centre Hobsonville Road Development 346 0 0 0 0 0 0 0 0 0 0 0 0 Business Travel Plans 25 0 0 0 0 0 0 0 0 0 0 0 0 School Travel Plans 840 640 100 740 659 678 694 710 725 742 760 778 795 Bus Shelter Construction 130 260 0 260 268 275 282 288 295 301 309 316 323 Bus Stop Improvements 26 0 0 0 0 0 0 0 0 0 0 0 0 Pedestrian Islands 60 0 0 0 0 0 0 0 0 0 0 0 0 Pedestrian Signals 360 360 0 360 370 381 390 399 408 417 427 438 447 Lighting Improvement 21 22 0 22 23 23 24 24 25 26 26 27 27 Cycleway Committed Projects 506 0 0 0 0 0 0 0 0 0 0 0 0 Upper Opanuku Walk and Cycleway 2,800 0 0 0 0 0 0 0 0 0 0 0 0 Cycleway On Road Cycle Lanes 5,730 0 7,462 7,462 0 0 0 0 0 0 0 0 0 Signal Pre-emption for Buses 500 0 0 0 0 0 0 0 0 0 0 0 0 Accident Investigation Safety Physical Works 630 650 0 650 669 688 705 721 737 754 772 790 808 School 40km/h Zone 0 285 0 285 293 0 0 0 0 0 0 0 0 CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL Flood Damage Miscellaneous 850 924 1,200 2,124 951 978 1,002 1,025 1,047 1,071 1,097 1,123 1,149 Parks Toilet 185 0 0 0 0 0 0 0 0 0 0 0 0 New Lynn TOD project 66,957 0 54,760 54,760 51,419 12,163 23,647 6,825 0 0 0 0 0 Westgate Pedestrian/Cycle Bridge 0 0 0 0 1,852 0 0 0 0 0 0 0 0 Peer Review - Professional Services 30 0 0 0 0 0 0 0 0 0 0 0 0 NorSGA Hobsonville Road 210 0 164 164 0 0 0 0 0 0 0 0 0 Westgate Town Centre Fernhill Extension 355 0 208 208 0 0 0 0 0 0 0 0 0 SECTION ONE Westgate Town Centre North Side Drive 355 0 123 123 0 0 0 0 0 0 0 0 0 Westgate Town Centre Bus Interchange 281 0 37 37 0 0 0 0 0 0 0 0 0 Westgate Town Centre Park and Ride 580 0 424 424 0 0 0 0 0 0 0 0 0

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 37 CAPITAL EXPENDITURE AND LOAN PAYMENTS CONTINUED

NorSGA Hobsonville Town Centre Bus Interchange 281 0 254 254 0 0 0 0 0 0 0 0 0 Accident Investigations Study 158 0 0 0 0 169 0 0 193 0 0 207 0 Central Park Drive/Edmonton Road Layout 788 0 0 0 0 0 0 0 0 0 0 0 0 Great North Road : Titirangi to McLeod 0 0 0 0 0 0 0 0 0 0 0 489 546 Cycleway: Universal/Lincoln to Swanson Road 0 0 0 0 1,492 0 0 0 0 0 0 0 0 Cycleway: Rankin / Ambrico to Seabrook 0 0 0 0 0 159 0 0 0 0 0 0 0 Cycleway: Portage / Neville to Kinross 0 0 0 0 0 318 0 0 0 0 0 0 0 Project Twin Streams Cycleway Connect Pioneer to West Wave 0 0 0 0 206 424 0 0 0 0 0 0 0 New Lynn: Widen Great North Totara/Memorial 0 0 0 0 72 0 0 0 0 0 0 0 0 Cycleway: Hobsonville: State Highway 16 to Buckley Avenue 0 0 0 0 0 720 0 0 0 0 0 0 0 Margan / Rankin Roundabout 0 0 0 0 0 0 54 388 0 0 0 0 0 Cycleway: Don Buck / Triangle to State Highway 16 0 0 0 0 278 0 0 0 0 0 0 0 0 Project Twin Streams Cycleway: Connect from Seymour to Parrs Park 0 0 0 0 0 0 108 333 0 0 0 0 0 Project Twin Streams Cycleway: Connect Pioneer to Henderson Station 0 0 0 0 0 0 108 0 0 0 0 0 0 Project Twin Streams Cycleway: Connect Routley to Glen Eden 0 0 0 0 0 0 217 555 0 0 0 0 0 Central Park Drive / School Road 0 0 0 0 0 0 0 20 283 0 0 0 0 Cycleway: Swanson / Great North Road to Don Buck Road 0 0 0 0 0 0 0 932 0 0 0 0 0 Cycleway: Metcalfe/Swanson Roads to Munroe Road 0 0 0 0 0 0 0 0 385 0 0 0 0 Cycleway: Sunnyvale to Glen Eden 0 0 0 0 0 0 0 0 0 1,623 832 851 0 Project Twin Streams Cycleway: Connects to Commercial Infrastructure 0 0 0 0 0 0 0 0 0 116 120 0 0 Don Buck - Red Hills Roundabout 250 0 0 0 0 0 0 0 0 0 0 0 0 Access, Lighting etc - Swanson 256 0 250 250 0 0 0 0 0 0 0 0 0 Access, Lighting etc - Sturges Road 256 0 250 250 0 0 0 0 0 0 0 0 0 Whau River 530 0 0 0 0 0 0 0 0 0 0 0 0 School 40km/h Zone 400 0 125 125 0 0 0 0 0 0 0 0 0

CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL Contribution to Subdividers 263 150 0 150 154 159 163 166 170 174 178 182 186 Utility Relocations - for Safety 105 50 0 50 51 53 54 55 57 58 59 61 62 Road Drainage Extensions 370 300 0 300 309 318 325 333 340 348 356 365 373 Streetscape Great North Road - Henderson Valley - Edmonton 3,200 0 1,761 1,761 0 0 0 0 0 0 0 0 0 Marinich Drive Financial Contribution 564 0 0 0 0 0 0 0 0 0 0 0 0 Energy Efﬁ cient Lighting 221 0 0 0 0 0 0 0 0 0 0 0 0 SECTION ONE Fibre Optic Communications 120 0 0 0 0 0 0 0 0 0 0 0 0 Improved Illumination in Local Roads 600 450 241 691 463 476 488 499 510 522 534 547 559 New Street Lights 105 0 64 64 0 0 0 0 0 0 0 0 0 Solar Lighting 32 0 0 0 0 0 0 0 0 0 0 0 0 Road Reserves General 42 20 0 20 21 21 22 22 23 23 24 24 25 Forward Design for Beneﬁ t Cost Ratios 158 150 0 150 154 159 163 166 170 174 178 182 186 Forward Design of Capital Works 368 300 0 300 309 318 325 333 340 348 356 365 373

38 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

Asset Management System Integration and Optimisation 105 120 0 120 82 85 87 89 91 93 95 97 99 Footpath Construction 400 400 0 400 617 635 651 665 680 696 712 730 746 Facilities for the Disabled 11 0 0 0 0 0 0 0 0 0 0 0 0 Extension of Seal 0 0 0 0 515 529 542 555 567 580 594 608 621 Henderson Park and Ride 100 0 0 0 0 0 0 0 0 0 0 0 0 Rail Station Precinct Fruitvale and Glen Eden 172 0 0 0 0 0 0 0 0 0 0 0 0 Sunnyvale Railway Park and Ride 71 0 0 0 0 0 0 0 0 0 0 0 0 Land Legalisation : 530 to 568 Te Atatu Road 400 0 327 327 0 0 0 0 0 0 0 0 0 Sturges Road Bridge Upgrade 2,880 0 5,306 5,306 0 0 0 0 0 0 0 0 0 Airdrie Road 450 0 0 0 0 0 0 0 0 0 0 0 0 Routley Drive Footpath 800 0 0 0 0 0 0 0 0 0 0 0 0 Lifelines 0 54 0 54 0 59 0 64 0 68 0 0 0 Land Purchase Central Park Drive 1,000 0 0 0 0 0 0 0 0 0 0 0 0 Advance Directional Signs 150 75 75 150 154 159 163 166 170 174 178 182 186 Sturges Road Kerb and Channel 0 250 0 250 0 0 0 0 0 0 0 0 0 Don Buck and Royal Road Roundabout 0 70 0 70 496 0 0 0 0 0 0 0 0 Edmonton/Alderman Project Artwork 300 0 0 0 0 0 0 0 0 0 0 0 0 Bridge Mod for Electriﬁ cation 60 0 0 0 0 0 0 0 0 0 0 0 0 Swanson Rail Park and Ride 2,000 0 0 0 0 0 0 0 0 0 0 0 0 Henderson Town Centre extension to McLeod Road 1,300 0 0 0 0 0 0 0 0 0 0 0 0 Rail Station Improvement Ranui 315 0 313 313 0 0 0 0 0 0 0 0 0 NorSGA: Massey North / Westgate 0 17,385 12,000 29,385 13,210 18,972 17,759 4,962 5,069 0 0 0 0 NorSGA: Hobsonville Town Centre / Industrial Precinct 0 10,968 0 10,968 8,503 14,769 6,384 10,760 5,069 0 0 0 0 NorSGA: Hobsonville Airbase 0 624 0 624 2,701 0 0 0 0 0 0 0 0 Glen Eden Park and Ride 0 0 0 0 0 106 2,168 0 0 0 0 0 0 Contribution: Massey North Access Lane 0 500 0 500 0 0 0 0 0 0 0 0 0 Walkway Street Lighting 0 30 0 30 31 32 33 33 34 35 36 36 37 Memorial Drive Extension - Crown Lynn 0 286 0 286 1,852 2,015 0 0 0 0 0 0 0 Hetana Street Extension - Crown Lynn 0 167 0 167 1,852 0 1,202 0 0 0 0 0 0 Crown Lynn Place Extension 0 302 0 302 0 2,129 0 0 0 0 0 0 0 Contribution: Hobsonville Interchange 0 0 0 0 1,338 0 0 0 0 0 0 0 0 Contribution: Buckley Intersection 0 0 0 0 823 0 0 0 0 0 0 0 0

Waitakere Station Park and Ride 0 0 0 0 103 1,059 0 0 0 0 0 0 0 PAYMENTS AND LOAN EXPENDITURE CAPITAL

TOTAL 130,115 54,611 89,933 144,544 111,780 83,251 83,937 59,575 47,209 40,217 41,432 44,434 45,840

ECOWATER ADMINISTRATION Hansen Development 0 51 0 51 52 54 55 56 58 59 60 62 63 Info Communication Technology SECTION ONE Infrastructure 0 49 0 49 51 52 53 54 55 57 58 59 61

TOTAL 0 100 0 100 103 106 108 110 113 116 118 121 124

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 39 CAPITAL EXPENDITURE AND LOAN PAYMENTS CONTINUED

WASTEWATER Detailed Design Infi ltration Infl ow Programme 339 400 0 400 412 424 435 449 462 479 493 509 526 Video Programme 328 300 50 350 309 318 326 337 347 359 370 382 395 Control Equipment Renewal Programme 55 35 0 35 36 37 38 39 40 42 43 45 46 Wastewater Manhole Renewals 135 130 0 130 134 138 141 146 150 156 160 165 171 Pump Station - Pump Unit Replacements 55 255 0 255 108 154 43 45 46 48 49 51 53 Other Wastewater Renewals 1,390 1,777 250 2,027 1,861 1,947 2,144 2,254 2,363 2,492 2,620 2,760 2,912 Pipe Bridges 271 348 0 348 382 363 370 384 395 237 247 255 263 Pump Station Renewals 75 250 0 250 216 222 87 90 92 96 99 102 105 Pump Station Cabinet Replacements 80 91 0 91 94 96 99 11 12 12 12 13 13 Structural Repairs from Videos 144 144 0 144 148 152 157 162 166 172 178 183 189 Infi ltration and Infl ow Rain Gauging 260 248 50 298 282 263 288 309 405 499 358 318 329 Sewer Renewals 3,793 0 0 0 0 0 0 0 0 0 0 0 0 Additional Flushing, Root and Videoing 150 160 0 160 165 169 174 180 185 191 197 204 210 Sewer Overfl ows Remedial Renewals 110 110 0 110 113 116 120 124 127 132 136 140 145 Sewer Renewals - Infi ltration Infl ow Programme 0 1,916 0 1,916 2,060 2,118 2,175 2,248 2,311 2,392 2,467 2,546 2,630 Birdwood Structure Plan 220 590 220 810 227 0 0 0 0 0 0 0 0 Infi ltration Control Planning 460 366 0 366 376 387 397 411 422 437 451 465 481 Wastewater Network Modelling 370 350 50 400 361 371 381 393 405 419 432 446 460 Consents Monitoring and Compliance 248 60 40 100 62 64 65 67 69 72 74 76 79 Future Works Planning 120 120 0 120 124 127 130 135 139 144 148 153 158 Peak Flow Capacity Programme 271 398 0 398 410 421 422 425 425 430 442 456 471 Integration of Asset Systems 0 20 0 20 21 21 22 22 23 24 25 25 26 Other Wastewater Network Upgrade Programme 2,457 1,379 0 1,379 2,392 2,313 2,080 2,105 2,003 2,446 2,595 2,262 2,408 Upgrade Pump Stations and Reservoirs 755 215 92 307 319 294 130 107 139 286 152 193 201 State Highway 16/18 Hobsonville Services 36 80 36 116 41 11 0 0 0 0 0 0 0 NorSGA Capital Expenditure 150 601 130 731 2,540 2,754 2,222 2,122 1,043 1,027 0 0 0 Infi ltration and Infl ow Rain Gauging 21 20 0 20 21 21 22 22 23 24 25 25 26 Monitoring Programme Potential Overfl ow 65 54 0 54 58 64 22 11 12 12 12 13 13 Development Contributions Review 10 20 0 20 21 21 22 22 23 24 25 25 26 Asset Valuation 0 10 0 10 10 11 11 11 12 12 12 13 13

CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL Activity Planning 30 10 0 10 31 11 11 34 12 12 37 13 13 Advanced Asset Management 30 15 0 15 15 11 11 11 12 12 12 13 13

TOTAL 12,428 10,472 918 11,390 13,349 13,419 12,545 12,676 11,863 12,688 11,871 11,851 12,375

STORMWATER

SECTION ONE Video Inspection Programme 120 110 0 110 113 116 121 128 133 139 146 153 159 Inlet and Outlet Renewals 206 190 57 247 130 133 137 142 146 151 155 160 166 Control Equipment Renewal Programme 22 16 0 16 20 22 23 24 24 25 26 27 28 Stormwater Treatment Facilities Renewal 348 244 0 244 272 301 331 409 444 483 523 540 584 Renewal of Stormwater Manholes 110 110 0 110 113 116 120 124 127 132 136 140 145 Stormwater Network Renewal Programme 1,239 1,523 22 1,545 1,596 1,669 1,744 1,837 1,928 2,036 2,144 2,242 2,368

40 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

Structural Repairs From Video 90 100 0 100 103 106 109 112 116 120 123 127 132 Project Twin Streams 7,508 4,731 3,600 8,331 3,335 1,973 0 0 0 0 0 0 0 Catchment Capacity Management Studies 638 606 0 606 624 642 659 681 700 725 748 771 797 Resource Consent Applications 31 40 0 40 41 42 43 45 46 48 49 51 53 Stormwater Network Modelling 627 650 0 650 670 688 707 730 751 778 802 827 855 Future Works Planning 170 67 0 67 69 71 73 75 77 80 83 85 88 Stormwater Treatment Facilities 145 95 0 95 98 101 103 107 110 114 117 121 125 Quality Device Programme 1,400 800 929 1,729 824 847 870 899 925 957 986 1,018 1,052 Stream Upgrading 312 330 0 330 355 365 457 500 514 652 796 821 848 Integration of Asset Systems 0 20 0 20 52 106 54 22 23 24 25 25 26 Stormwater Network Upgrade Programme 3,571 1,500 250 1,750 1,545 1,588 1,629 1,685 1,734 1,794 1,849 1,911 1,972 State Highway 16/18 Hobsonville Services 190 275 60 335 258 53 0 0 0 0 0 0 0 Project Twin Stream Cycleways and Walkways 2,319 0 2,319 2,319 0 0 0 0 0 0 0 0 0 Stormwater Quality Monitoring Equipment 15 5 0 5 7 7 8 8 8 8 9 9 9 Rewarewa Stream Restoration 200 120 0 120 62 67 0 0 0 0 0 0 0 Babich Block Concept Plan 0 0 0 0 639 106 0 0 0 0 0 0 0 NorSGA Capital Expenditure 2,000 7,143 1,477 8,620 6,439 5,854 6,489 8,935 1,143 0 0 0 0 Development Contributions Review 10 20 0 20 21 21 22 22 23 24 25 25 26 Activity Planning 30 10 0 10 31 11 11 34 12 12 37 13 13 Advanced Asset Management 30 15 0 15 15 11 11 11 12 12 12 13 13 Birdwood Structure Plan Stormwater Ponds 150 0 150 150 0 0 0 0 0 0 0 0 0 Asset Valuation 0 10 0 10 10 11 11 11 12 12 12 12 13

TOTAL 21,481 18,730 8,864 27,594 17,442 15,027 13,732 16,541 9,008 8,326 8,803 9,091 9,472

WATER SUPPLY Broken Mains - Over 150mm 0 36 0 36 37 38 39 40 42 43 44 46 47 Meter Changes and Maintenance 27 32 0 32 33 34 35 36 37 38 39 41 42 Pipe Bridge Repairs 22 40 0 40 41 42 43 45 46 48 49 51 53 Meter Replacements 83 100 0 100 103 106 109 112 116 120 123 127 132 Equipment Replacement 70 124 0 124 111 114 113 106 117 112 125 125 129 Pump Station and Reservoir Upgrade 55 47 0 47 48 50 51 53 54 56 58 60 62 Water Supply Watermain Renewals 2,895 3,136 353 3,489 3,295 3,457 3,627 3,829 4,031 4,270 4,511 4,770 5,053

Pump Station Renewals 25 24 0 24 23 23 24 25 25 26 27 28 29 PAYMENTS AND LOAN EXPENDITURE CAPITAL Valve and Hydrant Replacement Programme 310 300 0 300 309 318 326 337 347 359 370 381 395 Water Supply Network Modelling 36 38 0 38 41 42 43 45 49 50 52 57 59 Future Works Planning 80 75 0 75 77 79 87 90 92 96 105 108 112 Drinking Water Quality Improvements 250 200 0 200 206 212 217 225 249 257 265 293 302

Activity Planning 30 10 0 10 31 11 11 34 12 12 37 13 13 SECTION ONE Backﬂ ow Programme Installations 63 80 0 80 82 55 57 53 54 56 58 60 62 Water Supply Network Upgrade Programme 913 750 144 894 773 794 816 842 866 898 925 954 987 State Highway 16/18 Hobsonville Services 428 218 428 646 136 0 0 0 0 0 0 0 0 NorSGA Capital Expenditure 260 2,088 260 2,348 2,036 1,523 1,213 1,492 548 0 0 0 0

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 41 CAPITAL EXPENDITURE AND LOAN PAYMENTS CONTINUED

Health and Safety Projects 20 46 0 46 47 49 50 52 53 55 57 59 60 Control Station Telemetry 38 53 0 53 55 60 60 62 72 77 76 79 84 Development Contributions Review 10 20 0 20 21 21 22 22 23 24 25 25 26 Asset Valuation 0 10 0 10 10 11 11 11 12 12 12 13 13 Integration of Asset Systems 0 20 0 20 52 106 54 22 23 24 25 25 26 Advanced Asset Management 30 50 0 50 15 11 11 11 12 12 12 13 13 Compliance Costs Health Drinking Water Act 1,000 700 0 700 412 424 217 225 231 239 247 255 263

TOTAL 6,645 8,197 1,185 9,382 7,994 7,580 7,236 7,769 7,111 6,884 7,242 7,583 7,962

AFTERCARE Development Works 1,124 574 100 674 339 296 233 238 243 214 771 198 203

TOTAL 1,124 574 100 674 339 296 233 238 243 214 771 198 203

PROPERTY Housing for older Adults 551 0 600 600 0 0 0 0 0 0 0 0 0 Kaumatua Village Upgrade 1,040 0 223 223 0 0 0 0 0 0 0 0 0 19 Karaka Village Upgrade 312 0 0 0 0 0 0 0 0 0 0 0 0 Westview Village Upgrade 1,261 0 379 379 0 0 0 0 0 0 0 0 0 Kaurilands 66 0 0 0 0 0 0 0 0 0 0 0 0 Flagstaff 12 0 0 0 0 0 0 0 0 0 0 0 0 Jack Smyth 13 0 0 0 0 0 0 0 0 0 0 0 0 10 Karaka Street 41 0 0 0 0 0 0 0 0 0 0 0 0 Tane Street 12 0 0 0 0 0 0 0 0 0 0 0 0 Waitakere Central Civic and Admin 2 0 0 0 0 0 0 0 0 0 0 0 0 General property Renewals 410 0 232 232 0 0 0 0 0 0 0 0 0 31A Henderson Valley Road 10 0 0 0 0 0 0 0 0 0 0 0 0 Old Te Atatu South Library 40 0 0 0 0 0 0 0 0 0 0 0 0 Woodlands Park Kindergarten 7 0 0 0 0 0 0 0 0 0 0 0 0 399 Don Buck Road 10 0 0 0 0 0 0 0 0 0 0 0 0 Lopdell House Fittings Level 3 4 0 0 0 0 0 0 0 0 0 0 0 0 Chapel of Faith in the Oaks 14 0 0 0 0 0 0 0 0 0 0 0 0

CAPITAL EXPENDITURE AND LOAN PAYMENTS AND LOAN EXPENDITURE CAPITAL Henderson Youth Facility - Kitchen 30 0 0 0 0 0 0 0 0 0 0 0 0 Corban Estate 7 0 0 0 0 0 0 0 0 0 0 0 0 Massey Leisure Centre 19 0 12 12 0 0 0 0 0 0 0 0 0 Waitakere Central Civic - Signage and Air Conditioning 10 0 0 0 0 0 0 0 0 0 0 0 0 10 and 12 Western Road Laingholm Exterior Painting 25 0 0 0 0 0 0 0 0 0 0 0 0 SECTION ONE Tui Glen Motor Camp - Replace Sewer Mains 5 0 0 0 0 0 0 0 0 0 0 0 0 Crematorium Admin Walkway - Replace Roof 15 0 0 0 0 0 0 0 0 0 0 0 0 New Lynn Library - Exterior Paint and Grafﬁ ti 43 0 0 0 0 0 0 0 0 0 0 0 0 Ex-Te Atatu Bowling Club - Exterior Paint 17 0 0 0 0 0 0 0 0 0 0 0 0 Kelston Community Centre - Roof and Gutter Repair 50 0 0 0 0 0 0 0 0 0 0 0 0

42 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE CAPITAL EXPENDITURE AND LOAN PAYMENTS

Housing for Older Adults - Renewals 0 125 0 125 129 122 202 324 495 139 204 809 572 Property Renewals 0 740 0 740 763 782 805 827 850 876 900 919 940 General Property - Contestable fund 0 150 0 150 155 159 163 168 173 178 182 186 191 Asset Management System Renewal Surveys 65 0 0 0 0 0 0 0 0 0 0 0 0 Asset Management System 100 0 0 0 0 0 0 0 0 0 0 0 0 Corban Estate Shed 1 0 0 0 0 0 0 0 0 0 0 0 0 Massey Community House 25 0 0 0 0 0 0 0 0 0 0 0 0 Titirangi War Memorial Hall 55 0 0 0 0 0 0 0 0 0 0 0 0 Waiatarua Hall 1 0 0 0 0 0 0 0 0 0 0 0 0 Ranui Community House 9 0 0 0 0 0 0 0 0 0 0 0 0 Green Bay Community House 246 0 0 0 0 0 0 0 0 0 0 0 0 Corban Estate 4 0 0 0 0 0 0 0 0 0 0 0 0 Asset Management System 0 80 0 80 82 85 0 0 0 0 0 0 0

TOTAL 4,532 1,095 1,446 2,541 1,129 1,148 1,170 1,319 1,518 1,193 1,286 1,914 1,703

CARRIED FORWARDS Anticipated Carried Forwards 0 0 0 0 38,797 50,647 39,187 38,438 22,983 14,821 6,787 8,439 6,636

TOTAL 0 0 0 0 38,797 50,647 39,187 38,438 22,983 14,821 6,787 8,439 6,636

TOTAL CAPITAL EXPENDITURE 308,754 143,913 150,703 294,616 231,425 217,575 209,246 176,121 142,038 106,441 133,380 108,799 106,573

FUNDED AS FOLLOWS: Current years loan 103,105 95,811 0 95,811 105,851 74,479 75,644 42,407 29,885 5,213 8,077 1,793 (2,622) Previous years loan 105,488 0 114,412 114,412 38,797 50,647 39,187 38,438 22,983 14,821 6,787 8,439 6,636 Development Contributions 14,813 7,298 0 7,298 10,056 13,077 19,902 21,828 27,394 30,062 30,074 35,827 37,261 Depreciation Reserve 26,785 23,105 0 23,105 24,434 28,976 30,319 32,508 34,278 35,717 37,265 39,864 41,729 Other External Recoveries 7,599 5,230 5,921 11,151 10,640 28,032 8,289 5,969 8,404 0 0 0 0 Land Subdivision Reserve Fund 3,099 2,714 0 2,714 2,273 2,489 2,813 2,970 2,898 2,799 2,336 2,102 2,097 Cemetery Fund 110 0 0 0 0 0 0 0 0 0 0 0 0 NZTA Subsidy on Capital Expenditure 35,788 1,862 25,179 27,041 30,353 9,703 15,270 7,421 3,287 3,450 3,092 3,470 2,998 NZTA Subsidy on Footpaths 0 0 0 0 103 106 108 111 113 116 119 122 124 NZTA Subsidy on Renewals 7,154 7,160 0 7,160 7,886 8,659 9,403 10,282 10,984 11,827 12,716 13,642 14,578

Previous years surplus 3,535 0 5,191 5,191 0 0 0 0 0 0 0 0 0 PAYMENTS AND LOAN EXPENDITURE CAPITAL Testing Station Plant Renewal Fund 5 0 0 0 0 0 0 0 0 0 0 0 0 Plant renewal fund 1,273 530 0 530 636 930 1,121 486 1,148 1,609 2,015 882 1,595 Asset Sales 0 203 0 203 396 477 487 184 381 442 517 191 464 Vested Assets 0 0 0 0 0 0 6,703 13,517 283 385 30,382 2,467 1,713

TOTAL 308,754 143,913 150,703 294,616 231,425 217,575 209,246 176,121 142,038 106,441 133,380 108,799 106,573 SECTION ONE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 43 PROSPECTIVE FUNDING IMPACT STATEMENT

COSTS OF ACTIVITIES (NET OF INTERNAL RECOVERIES) Strategic Projects 2,189 1,994 1,753 1,665 1,604 1,643 1,571 1,612 1,664 1,709 1,762 Social and Cultural 4,825 6,053 5,261 5,228 5,137 5,256 5,380 5,513 5,502 5,646 5,807 Strategic Planning 9,555 9,370 8,878 9,659 9,807 10,084 9,826 10,481 10,239 10,471 10,806 Cemetery 1,336 1,412 1,454 1,496 1,533 1,569 1,607 1,642 1,686 1,734 1,800 Parks and Parks Planning 14,571 15,079 14,863 15,520 16,494 17,736 19,065 20,105 21,389 22,562 23,416 Transport and Roads 12,002 12,901 13,675 14,673 15,590 16,341 17,020 17,893 18,887 19,736 20,727 Wastewater 19,196 19,816 21,290 22,615 24,634 25,448 26,638 28,929 30,970 33,700 36,454 Stormwater 2,449 2,752 2,848 2,991 3,766 3,968 4,180 3,870 4,091 4,322 4,576 Water Supply 14,234 14,864 16,696 18,133 19,775 21,563 23,629 25,835 27,177 28,273 29,039 Property 3,936 4,490 4,541 4,718 5,019 5,131 5,253 5,383 5,513 5,633 5,765 Solid Waste 13,641 13,357 13,924 14,377 14,791 15,258 15,756 16,316 16,845 17,425 18,049 Libraries 8,790 8,668 8,952 9,245 9,476 9,707 9,946 10,201 10,506 10,783 11,102 Emergency Services 1,129 975 1,009 1,038 1,068 1,096 1,122 1,154 1,186 1,218 1,255 Leisure 2,791 2,537 2,586 2,662 2,737 2,808 2,900 3,096 3,203 3,295 3,369 Aquatic Centre 5,324 5,693 5,890 6,028 6,190 6,352 6,522 6,711 6,903 7,117 7,304 Public Affairs 5,476 5,767 6,674 8,021 6,443 6,712 6,620 6,917 7,064 7,285 7,430 Animal Welfare 1,988 2,120 2,175 2,239 2,287 2,349 2,397 2,465 2,527 2,601 2,667 Field Services 5,368 5,373 5,621 5,747 5,946 6,250 6,407 6,540 6,732 6,914 7,120 Consent Services 11,502 10,698 10,999 11,287 11,568 11,844 12,131 12,440 12,815 13,151 13,540 Resource Management and Building 1,363 1,137 1,169 1,199 1,330 1,282 1,289 1,322 1,361 1,397 1,438 Development Services 1,455 1,229 1,266 1,299 1,331 1,364 1,397 1,432 1,475 1,514 1,559 Testing Station 1,153 1,223 1,284 1,235 1,221 1,252 1,283 1,316 1,356 1,391 1,432 Quarry 145 159 164 168 172 176 209 214 219 0 0 Chief Executive 2,419 2,766 2,849 2,921 2,993 3,007 3,079 3,155 3,243 3,325 3,418 Risk Management 489 475 488 533 514 526 573 553 569 621 602 Finance 3,343 6,284 6,428 6,801 6,847 6,992 7,401 7,439 7,662 8,124 8,201 Maori Relationships 535 635 606 634 639 668 673 701 709 740 748 Corporate and Business Administration 643 1,882 1,207 660 676 692 709 728 750 770 793 Democracy and Support 3,135 3,517 4,070 3,692 3,848 4,372 3,983 4,073 4,740 4,305 4,504 Legal and Insurance 3,289 3,411 3,321 3,499 3,586 3,783 3,910 4,219 4,390 4,660 4,867 Information Management 1,032 3,740 4,554 5,124 4,946 5,294 5,122 5,320 5,631 5,717 5,984

PROSPECTIVE FUNDING IMPACT STATEMENT FUNDING IMPACT PROSPECTIVE Human Resources 1,552 1,816 1,869 1,894 1,974 2,014 2,070 2,133 2,194 2,267 2,331 Operations Support 3,602 2,997 3,077 3,161 3,240 3,322 3,406 3,495 3,609 3,707 3,822 Project Services 58 (111) (145) (128) (126) (107) (92) (78) (26) (9) 28 Customer Services 3,521 4,140 4,446 4,627 4,763 4,896 5,040 5,186 5,367 5,526 5,710 Ecowater Administration 3,243 3,415 3,504 3,526 3,632 3,744 3,849 4,061 4,278 4,415 4,554

TOTAL 171,279 182,634 189,246 198,187 205,451 214,392 221,871 232,372 242,426 252,045 261,979 SECTION ONE

DEPRECIATION Strategic Projects 1 0 0 160 160 320 1,019 1,019 1,019 1,019 1,049 Social and Cultural 3 0 0 0 0 0 0 0 0 0 0 Strategic Planning 7 0 119 119 119 119 119 119 119 119 119

44 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE PROSPECTIVE FUNDING IMPACT STATEMENT

Cemetery 235 221 253 288 301 287 302 343 342 275 330 Parks and Parks Planning 4,361 4,559 4,937 5,410 6,163 7,051 7,253 7,517 8,242 8,920 8,894 Transport and Roads 11,422 12,243 13,440 14,718 16,457 17,520 19,429 21,020 21,778 22,704 23,451 Wastewater 5,250 5,344 5,584 5,823 6,063 6,355 6,621 6,943 7,255 7,588 7,947 Stormwater 5,008 5,280 5,495 5,677 5,880 6,126 6,383 6,712 7,006 7,306 7,887 Water Supply 3,682 3,743 4,003 4,244 4,486 4,755 5,004 5,323 5,647 5,993 6,369 Property 2,607 2,615 2,613 2,616 2,505 2,396 2,291 2,339 2,400 2,445 2,480 Solid Waste 280 309 274 226 224 192 209 216 242 251 212 Libraries 1,707 1,242 1,247 1,351 1,396 1,483 1,535 1,632 1,843 2,018 2,089 Emergency Services 85 168 169 172 257 260 263 262 257 172 126 Leisure 0 141 141 273 490 490 490 490 490 490 490 Aquatic Centre 1,666 1,327 1,421 1,475 1,474 1,239 1,167 1,173 1,073 1,018 882 Public Affairs 10 0 0 0 0 33 33 33 33 33 33 Animal Welfare 46 46 46 41 35 27 23 22 22 22 22 Field Services 79 79 79 79 77 77 77 77 77 77 77 Consent Services 4 2 1 1 1 1 1 1 1 1 1 Testing Station 6 7 6 4 5 5 3 3 3 3 2 Chief Executive 1 1 2 3 4 5 6 7 8 8 9 Corporate and Business Administration 0 0 0 0 0 0 0 0 0 0 0 Democracy and Support 1,980 1,721 1,721 1,709 1,654 1,654 1,654 1,654 1,654 1,653 1,642 Information Management 2,903 3,282 3,574 3,700 3,564 3,853 4,148 4,073 3,989 3,540 2,991 Human Resources 1 1 1 0 0 0 0 0 0 0 0 Project Services 6 6 5 3 3 3 3 3 3 1 0 Customer Services 5 0 0 0 0 0 0 0 0 0 0 Ecowater Administration 334 327 327 327 327 327 327 327 327 327 327 Motor Vehicles 827 1,000 1,227 1,223 1,422 1,434 1,630 1,795 2,030 1,906 2,008

TOTAL 42,516 43,664 46,685 49,642 53,067 56,012 59,990 63,103 65,860 67,889 69,437

INTEREST Parks and Parks Planning 2,860 3,390 4,070 4,829 5,647 6,348 6,877 7,156 7,147 6,890 6,403 Transport and Roads 10,597 12,562 15,085 17,896 20,929 23,528 25,491 26,522 26,488 25,540 23,729 Wastewater 3,355 3,978 4,777 5,667 6,627 7,451 8,072 8,399 8,388 8,088 7,514

Stormwater 2,766 3,280 3,939 4,673 5,465 6,143 6,656 6,925 6,916 6,669 6,196 STATEMENT FUNDING IMPACT PROSPECTIVE Water Supply 1,388 1,495 1,973 2,293 2,563 2,786 2,966 3,070 3,142 3,192 3,207 Other 6,020 7,134 8,567 10,163 11,885 13,361 14,476 15,061 15,042 14,504 13,475

TOTAL 26,986 31,839 38,411 45,521 53,116 59,617 64,538 67,133 67,123 64,883 60,524

SECTION ONE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 45 PROSPECTIVE FUNDING IMPACT STATEMENT CONTINUED

OTHER ITEMS External Levies 3,331 5,293 5,705 5,837 5,977 6,102 6,237 6,380 6,527 6,684 6,851 Remuneration Payable and Organisational Costs 0 440 0 0 0 0 0 0 0 0 0 Global Adjustments 963 (387) 1,221 1,723 1,791 1,850 1,883 1,947 2,008 2,074 2,132 Transfer to Plant Renewal Fund (827) (1,000) (1,227) (1,223) (1,422) (1,434) (1,630) (1,795) (2,030) (1,906) (2,008)

TOTAL 3,467 4,346 5,699 6,337 6,346 6,518 6,490 6,532 6,505 6,852 6,975

TOTAL OPERATING COSTS 244,248 262,483 280,041 299,687 317,980 336,539 352,889 369,140 381,914 391,669 398,915

DEBT REPAYMENT Debt Repayment 1,000 11,588 7,567 6,372 1,941 3,631 3,855 22,257 44,946 72,798 106,498

TOTAL DEBT REPAYMENT 1,000 11,588 7,567 6,372 1,941 3,631 3,855 22,257 44,946 72,798 106,498

CAPITAL EXPENDITURE Strategic Projects 64,472 26,648 14,249 10,664 16,341 5,609 7,964 0 0 0 0 Strategic Planning 2,200 1,764 129 132 135 138 141 144 148 151 155 Cemetery 2,017 2,931 1,719 1,541 1,145 1,193 1,731 1,409 1,393 1,794 1,714 Parks and Parks Planning 27,963 31,428 7,619 9,732 14,427 23,288 14,747 8,965 42,890 15,322 11,346 Transport and Roads 104,935 144,543 111,781 83,251 83,937 59,572 47,210 40,218 41,431 44,433 45,839 Wastewater 12,428 11,389 13,349 13,418 12,545 12,676 11,863 12,688 11,871 11,851 12,375 Stormwater 21,481 27,595 17,442 15,027 13,732 16,540 9,007 8,326 8,803 9,091 9,472 Water Supply 6,645 9,382 7,994 7,580 7,236 7,769 7,111 6,884 7,242 7,583 7,962 Property 4,532 2,541 1,129 1,148 1,170 1,319 1,518 1,193 1,286 1,914 1,703 Solid Waste 911 411 119 159 189 215 525 208 248 303 81 Aftercare 1,124 674 339 296 233 238 243 214 771 198 203 Libraries 6,737 8,218 8,848 9,781 7,489 2,121 1,741 1,756 1,832 1,718 1,762

PROSPECTIVE FUNDING IMPACT STATEMENT FUNDING IMPACT PROSPECTIVE Emergency Services 70 40 26 179 131 188 34 40 43 42 74 Leisure 8,665 9,810 1,209 6,626 3,518 575 7,532 1,179 24 25 398 Aquatic Centre 382 1,107 582 568 433 405 254 415 242 246 210 Public Affairs 5,755 7,489 749 922 633 335 344 355 371 385 397 Animal Welfare 390 231 52 42 0 0 0 0 0 0 0 Field Services 18 50 0 0 0 0 0 0 0 0 0

SECTION ONE Consent Services 1,250 2,500 1,291 1,321 1,353 1,381 1,412 1,444 1,477 0 0 Testing Station 20 0 0 21 0 0 0 0 0 0 0 Chief Executive 50 50 52 53 54 55 56 58 59 61 62 Democracy and Support 1,298 758 1,058 1,434 1,635 697 1,557 2,080 2,562 1,104 2,090 Information Management 9,000 4,957 2,789 2,927 3,615 3,259 3,952 3,928 3,782 4,018 3,970 Project Services 1,231 0 0 0 0 0 0 0 0 0 0

46 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE PROSPECTIVE FUNDING IMPACT STATEMENT

Ecowater Administration 0 100 103 106 108 110 113 116 118 121 124 Items to be Carried Forward 0 0 38,797 50,647 39,187 38,438 22,983 14,821 6,787 8,439 6,636

TOTAL CAPITAL EXPENDITURE 283,574 294,616 231,425 217,575 209,246 176,121 142,038 106,441 133,380 108,799 106,573

TOTAL EXPENDITURE 528,822 568,687 519,033 523,634 529,167 516,291 498,782 497,838 560,240 573,266 611,986

ITEMS NOT FUNDED Strategic Projects Depreciation 1 0 0 160 160 320 1,019 1,019 1,019 0 0 Social and Cultural Depreciation 3 0 0 0 0 0 0 0 0 0 0 Strategic Planning Depreciation 7 0 0 0 0 0 0 0 0 0 0 Parks and Parks Planning Depreciation 621 819 843 867 888 908 928 0 0 0 0 Transport and Roads Depreciation 502 1,313 1,101 1,064 1,285 1,286 1,321 0 0 0 0 Wastewater Depreciation 762 856 882 907 931 962 990 0 0 0 0 Stormwater Depreciation 1,314 1,586 1,622 1,664 1,714 1,764 1,822 0 0 0 0 Property Depreciation 1,961 2,637 2,588 2,592 2,481 2,372 2,266 2,315 2,376 0 0 Solid Waste 37 37 274 226 224 192 209 216 242 0 0 Libraries Depreciation 1,707 1,242 1,247 1,351 1,396 1,483 1,535 1,632 1,843 0 0 Leisure Depreciation 0 141 141 273 490 490 490 490 490 0 0 Aquatic Centre Depreciation 1,666 1,327 1,421 1,475 1,474 1,239 1,167 1,173 1,073 0 0 Public Affairs Depreciation 4 0 0 0 0 0 0 0 0 0 0 Animal Welfare Depreciation 5 5 46 41 35 27 23 22 22 0 0 Field Services Depreciation 77 77 77 77 77 77 77 77 77 0 0

Consent Services STATEMENT FUNDING IMPACT PROSPECTIVE Depreciation 2 2 1 1 1 1 1 1 1 0 0 Chief Executive Depreciation 1 1 0 0 1 2 3 4 5 0 0 Democracy and Support 1,980 1,721 1,721 1,709 1,654 1,654 1,654 1,654 1,654 0 0 Information Management 2,903 3,282 3,574 3,700 3,564 3,853 4,148 4,073 3,989 0 0

Ecowater Administration 51 51 105 105 105 105 105 105 106 0 0 SECTION ONE

TOTAL 13,604 15,097 15,643 16,212 16,480 16,735 17,758 12,781 12,897 0 0

EXPENDITURE TO BE FUNDED 515,218 553,590 503,390 507,422 512,687 499,556 481,024 485,057 547,343 573,266 611,986

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 47 PROSPECTIVE FUNDING IMPACT STATEMENT CONTINUED

FUNDED AS FOLLOWS: Rates 64,936 67,069 74,459 83,438 92,974 103,952 116,090 129,004 145,698 164,597 186,383 Uniform Annual General Charge 43,486 46,359 50,393 54,912 60,143 66,513 73,696 81,789 90,860 100,775 111,228 Wastewater Targeted Rate 27,132 28,541 31,038 33,457 36,650 38,524 40,538 44,443 46,766 49,493 52,022 Environmental monitoring rate 173 208 205 205 211 212 213 215 217 211 211 Rural sewerage targeted rate 696 670 674 677 680 684 687 691 694 697 701 Te Atatu BID Targeted Rate 70 70 72 0 0 0 0 0 0 0 0 Glen Eden BID Targeted Rate 0 45 46 48 0 0 0 0 0 0 0 Rugby World Cup Targeted Rate 0 285 792 1,691 0 0 0 0 0 0 0 Asset Sales 0 203 396 477 487 184 381 442 517 191 464 Petrol Tax 1,134 1,160 1,194 1,228 1,258 1,287 1,315 1,345 1,377 1,410 1,441 NZTA Subsidy 3,847 4,324 4,645 5,041 5,384 5,712 5,989 6,349 6,772 7,117 7,532 External Revenue 48,374 51,407 53,207 54,863 56,649 59,663 61,229 63,162 65,403 66,753 68,943 Water Supply Income 20,225 22,101 24,149 26,309 28,628 31,324 34,131 37,398 40,797 44,535 48,648 Accumulated Funds 6,290 8,529 0 0 0 0 0 0 0 0 0 Cemetery Fund 137 (75) (74) (74) (73) (72) (72) (71) (70) (70) (69) Depreciation Reserve 28,371 24,655 26,041 30,562 32,030 34,255 36,074 37,558 39,158 41,801 43,704 ARST Fund 25 25 0 0 0 0 0 0 0 0 0 Sport and Recreation Fund 44 50 52 53 54 55 56 58 59 61 62 Community Assistance Fund 30 30 30 30 30 30 30 30 30 30 30 Testing Station Plant Renewal Fund 5 0 0 0 0 0 0 0 0 0 0 Quarry Fund (115) (115) (115) (115) (115) (115) (115) (115) (115) 0 0 Plant Renewal Fund 1,273 530 636 930 1,121 486 1,148 1,609 2,015 882 1,595 Vested Assets 0 0 0 0 6,703 13,517 283 385 30,382 2,467 1,713

PROSPECTIVE FUNDING IMPACT STATEMENT FUNDING IMPACT PROSPECTIVE Loan 217,474 116,173 127,090 94,613 92,429 54,257 32,666 17,362 21,324 28,356 23,302 Previous Years Loan 0 114,412 38,797 50,647 39,187 38,438 22,983 14,821 6,787 8,439 6,636 Other External Recoveries 11,288 11,152 10,640 28,031 8,290 5,970 8,407 0 0 0 0 Development Contributions 14,813 7,298 10,056 13,077 19,902 21,828 27,394 30,062 30,074 35,827 37,261 Land Subdivision SECTION ONE Reserve Fund 3,099 2,714 2,273 2,489 2,813 2,970 2,898 2,799 2,336 2,102 2,097 NZTA Subsidy on Capital Expenditure 10,609 27,041 30,353 9,703 15,270 7,421 3,287 3,450 3,092 3,470 2,998

48 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE PROSPECTIVE FUNDING IMPACT STATEMENT

NZTA Subsidy on Footpaths 0 0 103 106 108 111 113 116 119 122 124 NZTA Subsidy on Renewals 7,154 7,160 7,886 8,659 9,403 10,282 10,984 11,827 12,716 13,642 14,578 Other Income 580 0 0 0 0 0 0 0 0 0 0 Predicted Year End Surplus 1,524 0 0 0 0 0 0 0 0 0 0 Available Surplus from Previous Years 166 96 0 0 0 0 0 0 0 0 0 Water Supply Working Capital (Loan) 1,378 673 1,236 1,065 951 582 313 0 0 0 0 Sale of Property 1,000 10,800 6,700 5,000 1,200 1,200 0 0 0 0 0 Working Capital Movement 0 0 416 300 320 286 306 328 335 358 382

TOTAL 515,218 553,590 503,390 507,422 512,687 499,556 481,024 485,057 547,343 573,266 611,986 PROSPECTIVE FUNDING IMPACT STATEMENT FUNDING IMPACT PROSPECTIVE SECTION ONE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 49 RATING INFORMATION

GENERAL RATES Rates as follows: (a) Residential and Other (except non-rateable) For the 2009/2010 year General rates are set differentially under Section 13 of the Local Government (Rating) Act 2002 (b) Multi-Unit Residential for different categories of rateable properties based on the (c) Business Sector land value of properties. Rating units are allocated to differential categories on the In order to secure a fair distribution of the general rates basis of speciﬁ ed criteria including the activities that are compared to services utilised within the various categories permitted, controlled or discretionary under the Human of rateable properties, and to maintain relative equity in Environments, Special Area or Scheduled Site status rating between individual properties, the general rates will attributed under the Waitakere City Operative District Plan be levied under Section 13 of the Local Government (Rating) prepared under the provisions of the Resource Management Act 2002 at different rates in the dollar of rateable value for Act, the use to which the land is put including the number of different categories of land as deﬁ ned in the Description of dwellings, the provision or availability of a wastewater service the Differential Rating System and Method of Calculation of to the property and where the land is situated. The relationship between the rates set on rateable land in each differential category is as follows:

DIFFERENTIAL LAND VALUE DIFFERENTIAL CATEGORY RANGE FACTOR

(A) RESIDENTIAL AND OTHER CATEGORIES

Step 1 $1- $270,000 1.00 Step 2 $270,001- $950,000 .75 Step 3 >$950,000 .50

(B) MULTI-UNIT RESIDENTIAL CATEGORIES

Multi-Unit 2 Step 1 $1- $540,000 1.00 Step 2 $540,001- $1,900,000 .75 Step 3 >$1,900,000 .50

Multi-Unit 3 Step 1 $1- $810,000 1.00 Step 2 $810,001- $2,850,000 .75 Step 3 >$2,850,000 .50

Multi-Unit 4 Step 1 $1- $1,080,000 1.00 Step 2 >$1,080,000 .75 RATING INFORMATION RATING Multi-Unit 5-9 Step 1 $1- $1,350,000 1.00 Step 2 >$1,350,000 .75

Multi-Unit 10-39 Step 1 $1- $3,000,000 1.00

SECTION ONE Step 2 >$3,000,000 .75

Multi-Unit 40+ Step 1 $1- $12,000,000 1.00 Step 2 >$12,000,000 .75

A stepped differential as detailed above applies to the portions of the land values of a rating unit as speciﬁ ed.

50 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE RATING INFORMATION

(C) BUSINESS SECTOR UNIFORM ANNUAL GENERAL CHARGE A Uniform Annual General Charge of $720 inclusive of GST For the 2009/2010 year 20 percent of the total rate is set under Section 15 of the Local Government (Rating) requirement, excluding targeted rates for water will be Act 2002 on all rateable land, being a ﬁ xed amount per collected from business sector properties. separately used or inhabited part of a rating unit. This represents a contribution to all services funded from the The General Rate is calculated on the land value of General Rate. The application of the UAGC is calculated to properties in the Sector, the amount of General Rates being yield $51,653,880 inclusive of GST. The UAGC is calculated the remainder of the 20 percent of the total rate requirement to yield approximately 29.21 percent of the total rate after deducting the product from Business Sector properties requirement (including water) in the 2009/2010 year. The of the Uniform Annual General Charge and targeted rates product of the UAGC together with the product of targeted for Wastewater, Rural Sewerage, Environment Monitoring, rates charged as ﬁ xed charges, (excluding the Wastewater and Rugby World Cup Levy. The stepped differential is not Uniform Annual Charge) is calculated to be 29.52 percent of applied to rating units in the Business Sector. the total rate requirement (including water).

The General Rate calculated on the land value on all TARGETED RATES differential categories is estimated to yield $66,875,083 Targeted rates are set under Section 16 of the Local inclusive of GST in the 2009/2010 year. Government (Rating) Act 2002 for the following activities:

General Rate - Differential Rates including GST Wastewater, Rural Sewerage Management, Environment GENERAL Monitoring, Business Improvement Districts, Rugby World RATE Cup and Water Supply. Residential Step 1 0.2876 Note: By virtue of Section 9 of the Local Government (Rating) Residential Step 2 0.2155 Act 2002, non-rateable land is rateable for the purpose of a Residential Step 3 0.1436 targeted rate if the rate is set solely for water supply, sewage Multi-Unit 2 Step 1 0.2876 disposal (wastewater) or waste collection and the particular Multi-Unit 2 Step 2 0.2155 service is provided to the land. Multi-Unit 2 Step 3 0.1436 WASTEWATER Multi-Unit 3 Step 1 0.2876 1. Residential Properties and Multi-Unit Residential Multi-Unit 3 Step 2 0.2155 Properties Multi-Unit 3 Step 3 0.1436 A targeted rate to be described as the Wastewater Uniform Charge is set as a ﬁ xed charge of $419 inclusive Multi-Unit 4 Step 1 0.2876 of GST on each separately used or inhabited part of a Multi-Unit 4 Step 2 0.2155 rating unit in the Drainage Area where sewer reticulation is available to recover part of the costs of provision of Multi-Unit 5-9 Step 1 0.2876 the City’s wastewater service, and is estimated to yield Multi-Unit 5-9 Step 2 0.2155 $25,626,459 inclusive of GST in the 2009/2010 year. Multi-Unit 10-39 Step 1 0.2876 INFORMATION RATING 2. Business Sector Properties Multi-Unit 10-39 Step 2 0.2155 The proportion of the cost of wastewater to be met by the Multi-Unit 40+ Step 1 0.2876 Business Sector will continue to be determined by the Multi-Unit 40+ Step 2 0.2155 Sector’s proportion of total City water usage as measured and recorded by meters and assessed periodically, Business Sector 1.5648 currently 18.82 percent. SECTION ONE Other Categories Step 1 0.14380 Other Categories Step 2 0.10775 A targeted rate calculated on the rateable land value of properties is levied for wastewater on Other Categories Step 3 0.07180 Business Sector properties and is estimated to yield $6,022,940 inclusive of GST in the 2009/2010 year.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 51 RATING INFORMATION CONTINUED

Wastewater Targeted Rate - Differential Rates including ENVIRONMENT MONITORING GST A targeted rate to be described as the Environment WASTEWATER Monitoring Charge is set as a fi xed charge on all rating units TARGETED R ATE in the Non-Drainage Area as defi ned in the Description CENTS IN $ of the Differential Rating System, including vacant land and properties with on-site treatment systems which are Business Sector 0.4509 not scheduled to be inspected and/or pumped out by the Council within the three yearly cycle and where those on- 3. Educational Establishments and other Non-rateable site treatment systems are evidenced as being currently Properties maintained to recover the costs of monitoring and addressing Wastewater targeted rates are set differentially on the pollution of watercourses. The rate is calculated to be $40 same basis as the General Rate on the land value of inclusive of GST and the application of the Environment non-rateable properties in the Drainage Area where a Monitoring Charge is estimated to yield $234,000 in the wastewater service is provided. The rates in the dollar will be calculated on the same basis as if the whole 2009/2010 year. wastewater rate requirement to be met from properties other than Business Sector properties had been WATER SUPPLY calculated solely on land value, and are estimated to yield A targeted rate is proposed to be set under Section 19 of the $376,491 inclusive of GST in the 2009/2010 year. Local Government (Rating) Act 2002 for the quantity of water supplied, as measured and recorded by meter, at a fi xed Wastewater Targeted Rate - Differential Rates including charge of $1.61 inclusive of GST per cubic metre of water GST supplied, and the application of the Water Rate is estimated WASTEWATER to yield $24,863,625 in the 2009/2010 year. TARGETED R ATE CENTS IN $ TE ATATU BUSINESS DISTRICT Non-Rateable Step 1 0.1976 A targeted rate described as the Te Atatu Business District Rate, set differentially on the same basis as the General Non-Rateable Step 2 0.1482 Rate, and calculated on the rateable land value of business Non-Rateable Step 3 0.0988 sector properties situated in the Te Atatu Peninsula town centre is estimated to yield $78,750 inclusive of GST in the The application of the various Wastewater Targeted 2009/2010 year. Rates is calculated to yield $32,025,890 inclusive of GST in the 2009/2010 year. GLEN EDEN BUSINESS DISTRICT A targeted rate described as the Glen Eden Business District RURAL SEWERAGE Rate, set differentially on the same basis as the General A targeted rate to be described as the Rural Sewerage Rate, and calculated on the rateable land value of business Charge is set as a fi xed charge on all rating units in the Non- sector properties situated in the Glen Eden town centre Drainage Area of the City as defi ned in the Description of and is estimated to yield $50,625 inclusive of GST in the the Differential Rating System where there are on site waste 2009/2010 year. management systems that are scheduled to be inspected RATING INFORMATION RATING and/or pumped out by the Council within the three-yearly RUGBY WORLD CUP LEVY cycle, to recover the costs of implementation of the On-site A targeted rate described as the Rugby World Cup (RWC) Waste Systems Management Plan. The fi xed charge is levied Levy is set as a fi xed charge of $4.50 inclusive of GST in respect of each on site waste management system utilised on each separately used or inhabited part of a rating unit in conjunction with the particular rating unit. The rate is calculated to be $148 inclusive of GST for each such on site on all rateable land to cover the costs of the Council’s SECTION ONE waste management system so utilised in conjunction with projects associated with hosting the Rugby World Cup, the rating unit, and the application of the Rural Sewerage and is estimated to yield $320,625 inclusive of GST in the Charge is estimated to yield $753,750 inclusive of GST in the 2009/2010 year. 2009/2010 year.

52 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE RATING INFORMATION

SEPARATELY USED OR INHABITED PARTS OF A A further penalty calculated on rate arrears (other than the RATING UNIT targeted rate for water supply) will be added on the day The Uniform Annual General Charge, the Wastewater following 30 September 2009. This further penalty will be Uniform Charge, and the Rugby World Cup Levy are charged 10% of the amount of rates assessed in any prior ﬁ nancial on each separately used or inhabited part of a rating unit. year to the 2009/2010 year (other than the targeted rate for water supply), including any penalties added, that remain A rating unit is considered to have separately used or unpaid on 30 September 2009. inhabited parts in the following circumstances: • Distinct areas of a rating unit are capable of separate use A further penalty calculated on rate arrears (other than the or are separately inhabitable targeted rate for water supply) will be added on the day following 31 March 2010. This further penalty will be 10% of • Properties used for business purposes have a number of the amount of rates assessed in any prior ﬁ nancial year to the businesses operating from a rating unit 2009/2010 year (other than targeted rates for water supply), • For residential rating units, each self-contained area is including any penalties added, that remain unpaid on 31 considered to be a separately used or inhabited part, or March 2010. capable of separate use or habitation

• Va c a nt o r u n d eve l o p e d l a n d i s d e e m e d t o b e a s e p a r a t e u s e. DESCRIPTION OF DIFFERENTIAL RATING SYSTEM AND METHOD OF CALCULATION OF RATES The 2002/2003 Annual Plan contained a full description of RATES PAYABLE BY INSTALMENTS the differential rating system and method of calculation of rates. Rates are payable by four equal instalments due on the 20th day of August, November, February and May each year. Apart from changes consequential to the matters listed above Where the due date falls on a weekend or public holiday, the on which the Council is maintaining the same differential due date is extended until the next working day. rating system and method of calculation of rates as shown in that Annual Plan, and repeated in subsequent Annual Plans. PENALTIES ON RATES NOT PAID BY THE DUE DATE A penalty of 10% of the amount of rates assessed under IMPACT ON RATES each instalment in the 2009/2010 ﬁ nancial year (other than The following schedules show the overall impact of the targeted rates for water supply) that are unpaid after the due plan on Council’s rates on single residential properties and date of each instalment, will be added to such unpaid rates Business Sector properties for 2009/2010 under a land value on the day following the due date of the instalment. Provided based rating system. that where all rates (other than the targeted rate for water supply) payable to 30 June 2010 (together with any arrears of rates, other than targeted rate for water supply, but including penalties on arrears of rates) are paid in full by 20 November 2009, no instalment penalty will be payable in respect of the 2009/2010 year. RATING INFORMATION RATING SECTION ONE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 53 RATING INFORMATION CONTINUED

MODELS OF EFFECT ON RATES OF 2009/2010 RESIDENTIAL SINGLE UNIT - INNER AREA (GST INCL)

Indicative Rates Indicative Rates

Business Sector Business Sector Estimated Total Estimated Total Land Value 20% Land Value 20% UAGC $720 Assessments UAGC $720 Assessments Wastewater Wastewater UAC $419 UAC $419 RWC $4.50 RWC $4.50 10,000 1,172 3 250,000 1,863 1,270 20,000 1,201 7 260,000 1,891 2,953 30,000 1,230 5 270,000 1,920 796 40,000 1,259 35 280,000 1,942 1,861 50,000 1,287 47 290,000 1,963 534 60,000 1,316 57 300,000 1,985 2,793 70,000 1,345 140 310,000 2,006 203 80,000 1,374 156 320,000 2,028 1,271 90,000 1,402 208 330,000 2,049 243 100,000 1,431 331 340,000 2,071 900 110,000 1,460 536 350,000 2,092 467 120,000 1,489 915 360,000 2,114 375 130,000 1,517 967 370,000 2,136 390 140,000 1,546 1,484 380,000 2,157 408 150,000 1,575 1,339 390,000 2,179 258 160,000 1,604 3,134 400,000 2,200 295 170,000 1,632 1,221 410,000 2,222 115 180,000 1,661 5,607 420,000 2,243 211 190,000 1,690 2,669 430,000 2,265 87 200,000 1,719 6,314 440,000 2,286 226 210,000 1,747 1,798 450,000 2,308 51

RATING INFORMATION RATING 220,000 1,776 4,495 460,000 2,329 171 230,000 1,805 1,353 470,000 2,351 35 240,000 1,834 4,228 480,000 2,373 118 SECTION ONE

54 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE RATING INFORMATION

Indicative Rates Indicative Rates

Business Sector Business Sector Estimated Total Estimated Total Land Value 20% Land Value 20% UAGC $720 Assessments UAGC $720 Assessments Wastewater Wastewater UAC $419 UAC $419 RWC $4.50 RWC $4.50 490,000 2,394 46 800,000 3,062 18 500,000 2,416 85 810,000 3,084 4 510,000 2,437 34 820,000 3,105 9 520,000 2,459 81 830,000 3,127 3 530,000 2,480 23 840,000 3,148 5 540,000 2,502 44 850,000 3,170 20 550,000 2,523 51 860,000 3,191 8 560,000 2,545 27 870,000 3,213 6 570,000 2,567 31 880,000 3,235 6 580,000 2,588 46 890,000 3,256 1 590,000 2,610 5 900,000 3,278 3 600,000 2,631 45 910,000 3,299 2 610,000 2,653 16 920,000 3,321 4 620,000 2,674 52 930,000 3,342 1 630,000 2,696 6 940,000 3,364 2 640,000 2,717 19 950,000 3,385 2 650,000 2,739 9 960,000 3,400 6 660,000 2,760 10 970,000 3,414 1 670,000 2,782 21 980,000 3,429 3 680,000 2,804 24 990,000 3,443 0 690,000 2,825 4 1,000,000 3,457 8 700,000 2,847 24 1,250,000 3,816 33 710,000 2,868 12 1,500,000 4,175 24 720,000 2,890 5 1,750,000 4,534 11 730,000 2,911 8 2,000,000 4,893 6 RATING INFORMATION RATING 740,000 2,933 10 2,500,000 5,611 6 750,000 2,954 18 3,000,000 6,329 6 760,000 2,976 17 4,000,000 7,765 9 770,000 2,998 7 5,000,000 9,201 3

780,000 3,019 14 >5,000,000 9 SECTION ONE 790,000 3,041 1 Total 54,094

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 55 RATING INFORMATION CONTINUED

MODELS OF EFFECT ON RATES OF 2009/2010 RESIDENTIAL SINGLE UNIT - OUTER AREA (GST INCL)

Indicative Rates Indicative Rates

Business Sector Business Sector 20% 20% Estimated Total Estimated Total Land Value UAGC $720 Land Value UAGC $720 Rural Sewerage Assessments Rural Sewerage Assessments $148 $148 Env Monitoring Env Monitoring $40 $40 RWC $4.50 RWC $4.50 10,000 941 2 250,000 1,632 63 20,000 970 1 260,000 1,660 218 30,000 999 0 270,000 1,689 46 40,000 1,028 4 280,000 1,711 201 50,000 1,056 2 290,000 1,732 59 60,000 1,085 3 300,000 1,754 260 70,000 1,114 5 310,000 1,775 42 80,000 1,143 4 320,000 1,797 211 90,000 1,171 5 330,000 1,818 49 100,000 1,200 13 340,000 1,840 135 110,000 1,229 3 350,000 1,861 60 120,000 1,258 22 360,000 1,883 104 130,000 1,286 25 370,000 1,905 57 140,000 1,315 100 380,000 1,926 157 150,000 1,344 17 390,000 1,948 80 160,000 1,373 88 400,000 1,969 130 170,000 1,401 25 410,000 1,991 37 180,000 1,430 223 420,000 2,012 94 190,000 1,459 72 430,000 2,034 72 200,000 1,488 213 440,000 2,055 137 RATING INFORMATION RATING 210,000 1,516 62 450,000 2,077 35 220,000 1,545 240 460,000 2,098 84 230,000 1,574 29 470,000 2,120 36 240,000 1,603 271 480,000 2,142 106 SECTION ONE

56 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE RATING INFORMATION

Indicative Rates Indicative Rates

Business Sector Business Sector 20% 20% Estimated Total Estimated Total Land Value UAGC $720 Land Value UAGC $720 Rural Sewerage Assessments Rural Sewerage Assessments $148 $148 Env Monitoring Env Monitoring $40 $40 RWC $4.50 RWC $4.50 490,000 2,163 26 800,000 2,831 44 500,000 2,185 88 810,000 2,853 5 510,000 2,206 75 820,000 2,874 9 520,000 2,228 84 830,000 2,896 5 530,000 2,249 25 840,000 2,917 15 540,000 2,271 47 850,000 2,939 29 550,000 2,292 52 860,000 2,960 11 560,000 2,314 16 870,000 2,982 6 570,000 2,336 38 880,000 3,004 20 580,000 2,357 36 890,000 3,025 0 590,000 2,379 45 900,000 3,047 20 600,000 2,400 41 910,000 3,068 1 610,000 2,422 33 920,000 3,090 5 620,000 2,443 47 930,000 3,111 17 630,000 2,465 33 940,000 3,133 7 640,000 2,486 18 950,000 3,154 15 650,000 2,508 39 960,000 3,169 4 660,000 2,529 13 970,000 3,183 10 670,000 2,551 17 980,000 3,198 7 680,000 2,573 31 990,000 3,212 2 690,000 2,594 10 1,000,000 3,226 17 700,000 2,616 43 1,250,000 3,585 115 710,000 2,637 2 1,500,000 3,944 107

720,000 2,659 16 1,750,000 4,303 57 INFORMATION RATING 730,000 2,680 17 2,000,000 4,662 67 740,000 2,702 24 2,500,000 5,380 38 750,000 2,723 17 3,000,000 6,098 26 760,000 2,745 17 4,000,000 7,534 24 SECTION ONE 770,000 2,767 8 5,000,000 8,970 23 780,000 2,788 21 >5,000,000 26 790,000 2,810 6 Total 5,619

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 57 RATING INFORMATION CONTINUED

MODELS OF EFFECT ON RATES OF 2009/2010 BUSINESS SINGLE UNIT - INNER AREA (GST INCL)

Indicative Rates Indicative Rates

Estimated Total Estimated Total Land Value Business Sector Land Value Business Sector 20% Assessments 20% Assessments UAGC $720 UAGC $720 RWC $4.50 RWC $4.50 10,000 926 0 250,000 5,764 32 20,000 1,128 12 260,000 5,965 56 30,000 1,329 16 270,000 6,167 15 40,000 1,531 20 280,000 6,368 53 50,000 1,732 43 290,000 6,570 11 60,000 1,934 45 300,000 6,772 51 70,000 2,135 67 310,000 6,973 11 80,000 2,337 63 320,000 7,175 49 90,000 2,539 77 330,000 7,376 20 100,000 2,740 134 340,000 7,578 46 110,000 2,942 62 350,000 7,779 25 120,000 3,143 78 360,000 7,981 30 130,000 3,345 74 370,000 8,183 14 140,000 3,546 79 380,000 8,384 36 150,000 3,748 52 390,000 8,586 12 160,000 3,950 82 400,000 8,787 45 170,000 4,151 15 410,000 8,989 8 180,000 4,353 80 420,000 9,190 42 190,000 4,554 24 430,000 9,392 8 200,000 4,756 78 440,000 9,594 19 210,000 4,957 52 450,000 9,795 14 220,000 5,159 87 460,000 9,997 17 230,000 5,361 45 470,000 10,198 8 RATING INFORMATION RATING 240,000 5,562 67 480,000 10,400 29 SECTION ONE

58 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION ONE RATING INFORMATION

Indicative Rates Indicative Rates

Estimated Total Estimated Total Land Value Business Sector Land Value Business Sector 20% Assessments 20% Assessments UAGC $720 UAGC $720 RWC $4.50 RWC $4.50 490,000 10,601 7 800,000 16,850 10 500,000 10,803 23 810,000 17,052 10 510,000 11,005 10 820,000 17,253 6 520,000 11,206 13 830,000 17,455 3 530,000 11,408 12 840,000 17,656 6 540,000 11,609 23 850,000 17,858 3 550,000 11,811 9 860,000 18,060 2 560,000 12,012 21 870,000 18,261 4 570,000 12,214 6 880,000 18,463 3 580,000 12,416 10 890,000 18,664 3 590,000 12,617 4 900,000 18,866 5 600,000 12,819 12 910,000 19,067 1 610,000 13,020 6 920,000 19,269 5 620,000 13,222 13 930,000 19,471 8 630,000 13,423 4 940,000 19,672 9 640,000 13,625 5 950,000 19,874 4 650,000 13,827 7 960,000 20,075 9 660,000 14,028 10 970,000 20,277 3 670,000 14,230 4 980,000 20,478 5 680,000 14,431 8 990,000 20,680 2 690,000 14,633 2 1,000,000 20,882 5 700,000 14,834 14 1,250,000 25,921 88 710,000 15,036 5 1,500,000 30,960 46 720,000 15,238 11 1,750,000 35,999 40 730,000 15,439 4 2,000,000 41,039 20 740,000 15,641 6 2,500,000 51,117 30

750,000 15,842 9 3,000,000 61,196 11 INFORMATION RATING 760,000 16,044 13 4,000,000 81,353 12 770,000 16,245 10 5,000,000 101,510 12 780,000 16,447 2 >5,000,000 12 790,000 16,649 1 Total 2,664 SECTION ONE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 59 PROSPECTIVE STATEMENT OF COMPREHENSIVE INCOME

INCOME Rates 129,339 136,087 149,793 165,769 181,255 199,603 220,240 244,315 271,519 302,131 335,967 Other revenue 121,132 134,657 145,226 150,026 148,259 147,064 156,280 157,077 163,269 175,600 184,285 Assets vested in Council from developers 9,588 10,700 25,532 39,212 63,595 59,659 43,705 44,217 69,814 38,119 37,545

TOTAL INCOME 260,059 281,444 320,551 355,007 393,109 406,326 420,225 445,609 504,602 515,850 557,797

EXPENDITURE Employee beneﬁ t expenses 71,755 74,985 76,689 78,849 81,048 83,282 85,352 87,540 90,578 92,813 95,728 Depreciation and amortisation 42,516 43,664 46,685 49,642 53,067 56,012 59,990 63,103 65,860 67,889 69,437 Other expenses 102,939 111,995 118,256 125,675 130,749 137,629 143,009 151,364 158,353 166,084 173,226 Finance cost 27,292 31,839 38,411 45,521 53,116 59,616 64,538 67,133 67,123 64,883 60,524

TOTAL EXPENDITURE 244,502 262,483 280,041 299,687 317,980 336,539 352,889 369,140 381,914 391,669 398,915

SURPLUS / (DEFICIT) BEFORE TAX 15,557 18,961 40,510 55,320 75,129 69,787 67,336 76,469 122,688 124,181 158,882

OTHER COMPREHENSIVE INCOME Gains / (Loss) on property, plant and equipment revaluations 0 136,194 721 520 244,343 496 531 346,085 581 621 459,342

TOTAL COMPREHENSIVE INCOME 15,557 155,155 41,231 55,840 319,472 70,283 67,867 422,554 123,269 124,802 618,224 PROSPECTIVE STATEMENT OF COMPREHENSIVE INCOME STATEMENT PROSPECTIVE SECTION TWO SECTION TWO

60 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B PROSPECTIVE STATEMENT OF CHANGES IN EQUITY

BALANCE 1 JULY 2,147,474 2,163,031 2,318,186 2,359,417 2,415,257 2,734,729 2,805,012 2,872,879 3,295,433 3,418,702 3,543,504 Total comprehensive income 15,557 18,961 40,510 55,320 75,129 69,787 67,336 76,469 122,688 124,181 158,882

ACCUMULATED FUNDS AT THE END OF THE YEAR 2,163,031 2,181,992 2,358,696 2,414,737 2,490,386 2,804,516 2,872,348 2,949,348 3,418,121 3,542,883 3,702,386

PROPERTY, PLANT AND EQUIPMENT Revaluation gains / losses taken to equity 0 136,194 721 520 244,343 496 531 346,085 581 621 459,342

EQUITY AT END OF YEAR 2,163,031 2,318,186 2,359,417 2,415,257 2,734,729 2,805,012 2,872,879 3,295,433 3,418,702 3,543,504 4,161,728 PROSPECTIVE STATEMENT OF CHANGES IN EQUITY STATEMENT PROSPECTIVE SECTION TWO SECTION TWO

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 61 PROSPECTIVE APPLICATION OF FUNDS

SURPLUS / (DEFICIT) BEFORE TAX 15,557 18,961 40,510 55,320 75,129 69,787 67,336 76,469 122,688 124,181 158,882

APPLICATION OF SURPLUS (DEFICIT) BEFORE TAX NZTA Subsidies for Capital Expenditure (10,609) (27,041) (30,456) (9,809) (15,378) (7,532) (3,401) (3,566) (3,211) (3,592) (3,123) Development Contributions (14,813) (7,298) (10,056) (13,077) (19,902) (21,828) (27,394) (30,062) (30,074) (35,827) (37,261) Financial Contributions (3,099) (2,714) (2,273) (2,489) (2,813) (2,970) (2,898) (2,799) (2,336) (2,102) (2,097) Other Capital Receipts (11,288) (11,152) (10,640) (28,031) (8,290) (5,970) (8,407) 0 0 0 0 Capital Expenditure Funded from Rates and Other Income (24,396) (12,817) (11,823) (15,557) (20,948) (30,154) (40,597) (48,523) (50,926) (65,980) (67,430) Repayment of Debt 0 (421) (421) (421) (421) (421) (3,106) (11,835) (31,804) (44,056) (75,400)

NON CASH ITEMS Depreciation 42,516 43,664 46,685 49,642 53,067 56,012 59,990 63,103 65,860 67,889 69,437 Surplus on Property Sale 0 (300) 0 0 0 0 0 0 0 0 0 Revaluation of Aftercare Liability 254 0 0 0 0 0 0 0 0 0 0 Vested Assets (9,588) (10,700) (25,532) (39,212) (63,595) (59,659) (43,705) (44,217) (69,814) (38,118) (37,544) Revluation of Investment Properties 0 0 (721) (520) (555) (496) (531) (568) (581) (620) (661) Transfer to Special Funds (1,042) (1,215) (1,442) (1,438) (1,637) (1,649) (1,845) (2,010) (2,245) (2,006) (2,108)

OTHER TRANSFERS Interest Received Transferred to Special Fund (9) 0 0 0 0 0 0 0 0 0 0 Te Atatu BID Targeted Rate Transferred to Special Fund 0 (70) (72) 0 0 0 0 0 0 0 0

PROSPECTIVE APPLICATION OF FUNDS APPLICATION PROSPECTIVE Glen Eden BID Targeted Rate Transferred to Special Fund 0 (45) (46) (48) 0 0 0 0 0 0 0

FUNDING SURPLUS (DEFICIT) (16,517) (11,148) (6,287) (5,640) (5,343) (4,880) (4,558) (4,008) (2,443) (231) 2,695 SECTION TWO SECTION TWO

62 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO PROSPECTIVE APPLICATION OF FUNDS

ADDITIONAL FUNDS UTILISED Short Term Borrowing for Water Supply 1,378 673 1,236 1,065 951 582 313 (214) (1,759) (3,946) (6,845) Actual Surpluses used for Operating Costs 1,690 96 0 0 0 0 0 0 0 0 0 Previous Years Surplus used for Operating Costs 2,755 3,337 0 0 0 0 0 0 0 0 0 Reserves used for Operating Costs 1,812 1,795 1,827 1,739 1,817 1,855 1,908 1,957 2,009 2,056 2,101 Strategic Land Purchase Interest and Other Loan Funding 8,882 5,247 3,224 2,836 2,575 2,443 2,337 2,265 2,193 2,121 2,049

TOTAL 16,517 11,148 6,287 5,640 5,343 4,880 4,558 4,008 2,443 231 (2,695) PROSPECTIVE APPLICATION OF FUNDS APPLICATION PROSPECTIVE SECTION TWO SECTION TWO

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 63 PROSPECTIVE BALANCE SHEET

EQUITY Accumulated funds 1,452,684 1,470,948 1,510,614 1,565,387 1,639,959 1,708,539 1,775,133 1,851,154 1,973,563 2,096,569 2,254,885 Council created reserves 17,896 18,597 19,448 20,003 20,570 21,788 22,544 23,008 23,305 24,501 25,090 Restricted reserve 877 873 866 858 848 837 823 807 789 769 746 Asset revaluation reserve 605,123 741,317 742,038 742,558 986,901 987,397 987,928 1,334,013 1,334,594 1,335,214 1,794,556 Fair value through equity reserve 86,451 86,451 86,451 86,451 86,451 86,451 86,451 86,451 86,451 86,451 86,451

TOTAL EQUITY 2,163,031 2,318,186 2,359,417 2,415,257 2,734,729 2,805,012 2,872,879 3,295,433 3,418,702 3,543,504 4,161,728

REPRESENTED BY:

CURRENT ASSETS Cash and cash equivalents 8,529 0 0 0 0 0 0 0 0 0 0 Trade and other receivables 33,244 33,244 34,341 35,132 35,976 36,731 37,539 38,403 39,287 40,231 41,239 Derivative ﬁ nancial instruments 5,090 5,090 5,090 5,090 5,090 5,090 5,090 5,090 5,090 5,090 5,090 Inventories 100 100 103 105 108 110 112 115 118 120 123 Non-current assets held for sale 8,010 6,510 2,510 1,410 1,410 1,410 1,410 1,410 1,410 1,410 1,410

TOTAL CURRENT ASSETS 54,973 44,944 42,044 41,737 42,584 43,341 44,151 45,018 45,905 46,851 47,862

NON-CURRENT ASSETS Trade and other receivables 267 267 267 267 267 267 267 267 267 267 267 Other ﬁ nancial assets 213,474 213,474 213,474 213,474 213,474 213,474 213,474 213,474 213,474 213,474 213,474 Investment in associates 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 Investment properties 21,850 15,150 15,871 16,391 16,946 17,442 17,973 18,541 19,122 19,743 20,405 Property, plant and

PROSPECTIVE BALANCE SHEET PROSPECTIVE equipment 2,357,449 2,711,546 2,869,199 3,033,743 3,450,724 3,593,440 3,704,142 4,130,074 4,227,964 4,297,618 4,822,834 Intangible assets 28,612 30,386 29,643 28,902 28,974 28,403 28,254 28,132 28,043 28,544 29,548

TOTAL NON-CURRENT ASSETS 2,627,652 2,976,823 3,134,454 3,298,777 3,716,385 3,859,026 3,970,110 4,396,488 4,494,870 4,565,646 5,092,528

SECTION TWO SECTION TWO TOTAL ASSETS 2,682,625 3,021,767 3,176,498 3,340,514 3,758,969 3,902,367 4,014,261 4,441,506 4,540,775 4,612,497 5,140,390

64 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO PROSPECTIVE BALANCE SHEET

CURRENT LIABILITIES Trade and other payables 45,952 45,952 47,468 48,562 49,729 50,772 51,889 53,084 54,306 55,611 57,003 Short term borrowing 11,588 7,567 6,372 1,941 3,631 3,855 22,257 44,947 72,798 106,497 113,277 Employee beneﬁ t liabilities 5,949 5,949 5,949 5,949 5,949 5,949 5,949 5,949 5,949 5,949 5,949 Call borrowings 55,508 55,508 55,508 55,508 55,508 55,508 55,508 55,508 55,508 55,508 55,508 Derivative ﬁ nancial instruments 2,242 2,242 2,242 2,242 2,242 2,242 2,242 2,242 2,242 2,242 2,242 Provisions 1,081 1,081 1,081 1,081 1,081 1,081 1,081 1,081 1,081 1,081 1,081

TOTAL CURRENT LIABILITIES 122,320 118,299 118,620 115,283 118,140 119,407 138,926 162,811 191,884 226,888 235,060

NON-CURRENT LIABILITIES Borrowings 383,364 572,046 685,564 797,373 893,731 965,817 990,568 971,587 919,285 831,399 733,100 Employee beneﬁ t liabilities 3,520 3,520 3,520 3,520 3,520 3,520 3,520 3,520 3,520 3,520 3,520 Provisions 10,390 9,716 9,377 9,081 8,849 8,611 8,368 8,155 7,384 7,186 6,982

TOTAL NON-CURRENT LIABILITIES 397,274 585,282 698,461 809,974 906,100 977,948 1,002,456 983,262 930,189 842,105 743,602

TOTAL LIABILITIES 519,594 703,581 817,081 925,257 1,024,240 1,097,355 1,141,382 1,146,073 1,122,073 1,068,993 978,662

NET ASSETS 2,163,031 2,318,186 2,359,417 2,415,257 2,734,729 2,805,012 2,872,879 3,295,433 3,418,702 3,543,504 4,161,728 PROSPECTIVE BALANCE SHEET PROSPECTIVE SECTION TWO SECTION TWO

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 65 PROSPECTIVE STATEMENT OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES

CASH WAS PROVIDED FROM: Rates 129,339 136,087 149,793 165,769 181,255 199,603 220,241 244,316 271,520 302,131 335,967 Water charges 20,225 22,101 24,149 26,309 28,628 31,324 34,131 37,398 40,797 44,535 48,648 Subsidies and grants 809 972 1,004 876 897 916 936 958 980 1,004 1,028 NZTA subsidies 21,610 38,525 42,987 23,509 30,165 23,526 20,373 21,742 22,699 24,351 25,232 Other receipts 60,577 62,951 64,434 83,721 65,788 66,186 70,407 63,993 66,317 67,352 69,820 Development contributions 17,912 10,012 12,329 15,566 22,715 24,798 30,292 32,861 32,410 37,929 39,358

TOTAL 250,472 270,648 294,696 315,750 329,448 346,353 376,380 401,268 434,723 477,302 520,053

CASH WAS APPLIED TO: Payments to suppliers and employees 168,080 174,357 190,300 199,897 207,046 216,103 223,436 233,848 243,754 253,582 263,494 Auckland War Memorial Museum levy 2,003 2,717 2,807 2,871 2,940 3,002 3,068 3,139 3,211 3,288 3,370 MOTAT levy 763 1,101 1,137 1,164 1,192 1,216 1,243 1,272 1,301 1,332 1,366 Auckland Regional Council rates 256 275 284 291 298 304 311 318 325 333 341 Interest paid 27,293 31,839 38,411 45,521 53,116 59,617 64,538 67,133 67,123 64,883 60,524

TOTAL 198,395 210,289 232,939 249,744 264,592 280,242 292,596 305,710 315,714 323,418 329,095

NET CASH FLOW FROM OPERATING ACTIVITIES 52,077 60,359 61,757 66,006 64,856 66,111 83,784 95,558 119,009 153,884 190,958

CASH FLOWS FROM INVESTING ACTIVITIES

CASH WAS PROVIDED FROM: PROSPECTIVE STATEMENT OF CASH FLOWS OF CASH FLOWS STATEMENT PROSPECTIVE Sales of assets and property intended for sale 1,000 10,800 6,700 5,000 1,200 1,200 0 0 0 0 0

TOTAL 1,000 10,800 6,700 5,000 1,200 1,200 0 0 0 0 0

SECTION TWO SECTION TWO

66 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO PROSPECTIVE STATEMENT OF CASH FLOWS

CASH WAS APPLIED TO: Purchase of property, plant and equipment 163,970 255,820 180,778 178,385 164,106 139,621 126,937 99,267 94,558 99,697 99,439

TOTAL 163,970 255,820 180,778 178,385 164,106 139,621 126,937 99,267 94,558 99,697 99,439

NET CASH USED IN INVESTING ACTIVITIES (162,970) (245,020) (174,078) (173,385) (162,906) (138,421) (126,937) (99,267) (94,558) (99,697) (99,439)

CASH FLOWS FROM FINANCING ACTIVITIES

CASH WAS PROVIDED FROM: Proceeds from borrowing 111,670 196,249 119,888 113,751 99,991 75,941 47,008 25,966 20,495 18,611 14,979

TOTAL 111,670 196,249 119,888 113,751 99,991 75,941 47,008 25,966 20,495 18,611 14,979

CASH WAS APPLIED TO: Repayment of borrowings 1,000 11,588 7,567 6,372 1,941 3,631 3,855 22,257 44,946 72,798 106,498

TOTAL 1,000 11,588 7,567 6,372 1,941 3,631 3,855 22,257 44,946 72,798 106,498

NET CASH FLOW FROM FINANCING ACTIVITIES 110,670 184,661 112,321 107,379 98,050 72,310 43,153 3,709 (24,451) (54,187) (91,519)

TOTAL NET CASH FLOWS (223) 0 0 0 0 0 0 0 0 0 0

Cash, cash equivalents and bank overdrafts at the beginning of the year 8,753 0 0 0 0 0 0 0 0 0 0

OF CASH FLOWS STATEMENT PROSPECTIVE CASH BALANCES AT END OF YEAR 8,530 0 0 0 0 0 0 0 0 0 0 SECTION TWO SECTION TWO

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 67 PROSPECTIVE FINANCIAL STATEMENTS GENERAL INFORMATION

FOR THE 10 YEARS ENDING 30 JUNE 2019

The prospective fi nancial statements were adopted and The preparation of the prospective fi nancial statements in authorised for issue by the Council on 20 March 2009. conformity with New Zealand Equivalents to International Reporting Standards requires management to make The prospective fi nancial statements are for the Long Term judgements, estimates and assumptions that affect the Council Community Plan 2009-2019 and have included the application of policies and reported amounts of assets and Annual Plan 2009/2010 in preparing forecasts. Since these liabilities, income and expenses. prospective fi nancial statements are for the period 2009- 2019, actual results are not refl ected. The estimates and associated assumptions are based on best available information known at the time of preparation The prospective fi nancial statements are for Waitakere which includes historical experience and various other factors City Council, the parent only. The Council publishes group that are believed to be reasonable under the circumstances, accounts for the annual report. For the purposes of the the results of which form the basis of making the judgements Long Term Council Community Plan 2009-2019, only the about carrying values of assets and liabilities that are not parent fi nancial statements are considered relevant for public readily apparent from other sources. consultation. Actual results may differ from these estimates and these The Council is responsible for the prospective fi nancial variances may be material. statements presented, including the appropriateness of the assumptions underlying the prospective fi nancial statements and all other required disclosures. RISKS AND UNCERTAINTIES

The information contained in the fi nancial statements is As with any prospective fi nancial information there is a not suitable to be used for any purposes other than to give number of uncertainties as all of the assumptions used create an indication of the magnitude of the Council’s fi nancial uncertainties. requirements for the period of the Plan.

Prospective ﬁ nancial information can be either a forecast or a projection. A forecast is based on assumptions which the Council reasonably expects to occur. A projection is based on one or more hypothetical and realistic assumptions. PROSPECTIVE FINANCIAL STATEMENTS GENERAL INFORMATION FINANCIAL STATEMENTS PROSPECTIVE SECTION TWO SECTION TWO

68 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B STATEMENT OF ACCOUNTING POLICIES

REPORTING ENTITY materially from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including Waitakere City Council (the Council) is a local authority expectations or future events that are believed to be governed by the Local Government Act 2002. The primary reasonable under the circumstances. The estimates and objective of the Council is to provide services and facilities assumptions that have a signifi cant risk of causing a material for the community as a social benefi t rather than making adjustment to the prospective fi nancial statements are a fi nancial return. Accordingly, the Council is designated disclosed in the ‘signifi cant assumptions’ section of the as a public benefi t entity for the purposes of New Zealand LTCCP. equivalents to International Financial Reporting Standards (NZ IFRS). Amendments to the prospective fi nancial statements will

occur in 2012 as part of the statutory three year planning The prospective fi nancial statements are for Waitakere City cycle. If fi nancial circumstances change, the Council may Council (the Council) as a separate legal entity. The Council also decide to make signifi cant changes to the prospective publishes both parent entity and group fi nancial statements fi nancial statements prior to the 2012 review. In both for historical reporting purposes but does not publish group instances the amendments must be subject to a consultation prospective fi nancial statements. The Council has not process as set out in sections 84 and 85 of the Local prepared group prospective fi nancial statements because: Government Act 2002. (i) the primary focus of the LTCCP is on the activities of the Council (parent) and the consequent impact on rates; (ii) the fi nancial impact of transactions with group entities MEASUREMENT BASE is refl ected within the LTCCP for funding purposes; (iii) the The prospective fi nancial statements are prepared on an consolidated result of the group do not differ signifi cantly historical cost basis, modifi ed by the revaluation of certain from the parent. infrastructural assets, investment property and fi nancial instruments. The prospective fi nancial statements of Waitakere City Council are for the period 1 July 2009 to 30 June 2019. The The prospective fi nancial statements are presented in New LTCCP was authorised for issue by the Council on 20 March Zealand dollars and all values are rounded to the nearest 2009. thousand dollars ($’000).

NEW ACCOUNTING STANDARDS AND BASIS OF PREPARATION INTERPRETATIONS Standards and Interpretations that have recently been issued STATEMENT OF COMPLIANCE WITH INTERNATIONAL or amended but are not yet effective have not been adopted FINANCIAL REPORTING STANDARDS by Council for the annual reporting period ending 30 June The prospective fi nancial statements have been prepared 2020. in accordance with the requirements of Section 93 and Part 1 of schedule 10 of the Local Government Act 2002 which CHANGES IN ACCOUNTING POLICIES includes the requirement to comply with generally accepted With the exception of the initial application of NZ IAS accounting practice (NZ GAAP). They comply with New 1 Presentation of Financial Statements and NZ IAS 23 Zealand equivalents to IFRS (NZ IFRS) and other applicable Borrowing Costs as explained below, the accounting policies POLICIES ACCOUNTING OF STATEMENT Financial Reporting Standards, as appropriate for public set out below have been applied consistently to all periods benefi t entities. presented in these prospective fi nancial statements.

FRS 42 PROSPECTIVE FINANCIAL STATEMENTS (FRS ADOPTION OF NEW ACCOUNTING STANDARDS 42) DISCLOSURES The Council has adopted NZ IAS 1 Presentation of Financial The prospective ﬁ nancial statements have been prepared Statements, which became effective for accounting periods SECTION TWO for inclusion in the LTCCP and may not be appropriate for beginning on or after 1 January 2009. This introduces a purposes other than for the LTCCP. statement of comprehensive income which is ‘in addition to’ or ‘combined with’ the existing income statement. In preparing these prospective ﬁ nancial statements the The Council has elected to adopt the former Council has made estimates and assumptions concerning option. The new standard requires entries the future. These estimates and assumptions may differ previously include the statement of changes

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 69 STATEMENT OF ACCOUNTING POLICIES CONTINUED

in equity to be moved to the statement of comprehensive Infringements and fi nes income. In respect of the Council’s prospective fi nancial Traffi c and Parking Infringement revenue is recognised when statements these entries comprise changes in revaluation tickets are issued. surplus of property, plant and equipment and gains or losses on re-measuring ‘available for sale’ fi nancial assets. Investment property leases Lease rentals are recognised on a straight line basis over the The Council has adopted NZ IAS 23 Borrowing Costs period of the term of the lease. (revised 2007), which became effective for accounting periods beginning on or after 1 January 2009. This standard Interest and dividends gives the Council the option to capitalise borrowing costs Interest income is recognised on a time-proportion basis on qualifying assets during their period of purchase using the effective interest rate method. Dividends are or construction. This will reduce interest costs booked recognised when the right to receive payment is established. to expenditure and increase the value of new assets constructed. Development contributions Development contributions are recognised as revenue upon entitlement, which is when the contribution/levy is due SIGNIFICANT ACCOUNTING and payable following fulfi lment of conditions pertaining to POLICIES entitlement.

Revenue Revenue is measured at the fair value of consideration LEASES received or receivable net of rebates. Specifi c accounting policies for major categories of revenue are outlined below: Finance leases A fi nance lease is a lease that transfers to the lessees Rates revenue substantially all the risks and rewards incidental to ownership Rates are set annually by a resolution from the Council and of an asset, whether or not title is eventually transferred. relate to a fi nancial year. All ratepayers are invoiced within the fi nancial year to which the rates have been set. Rates At the commencement of the lease term, fi nance leases are revenue is recognised when invoiced. recognised as assets and liabilities in the balance sheet at the lower of the fair value of the leased item or the present Revenue for water by meter is recognised on an accrual value of the minimum lease payments. basis. Unbilled usage, as a result of unread meters at year end is accrued based on past usage. Lease payments are apportioned between the fi nance charges and reduction of the lease liability so as to achieve Government grants a constant rate of interest on the remaining balance of the Government grants are recognised when conditions liability. Finance charges are recognised as an expense in pertaining to their eligibility have been fulfi lled. the income statement. Provision of services The amount recognised as an asset is depreciated over its Revenue from the rendering of services is recognised by STATEMENT OF ACCOUNTING POLICIES ACCOUNTING OF STATEMENT useful life. If there is no certainty as to whether ownership reference to the stage of completion of the transaction at will be obtained at the end of the lease term, the asset is fully balance date, based on the actual service provided as a depreciated over the shorter of the lease term and its useful percentage of the total services being provided. life. Sale of goods Revenue from the sale of goods is recognised when a Operating leases SECTION TWO SECTION TWO product is sold to the customer and when all the risks and An operating lease is a lease that does not transfer rewards of ownership have been transferred to the customer. substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are Vested assets recognised as an expense on a straight-line basis over the Assets vested in the Council at nil or nominal cost are lease term. recognised as revenue based on their fair value when control over the asset is obtained.

70 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO STATEMENT OF ACCOUNTING POLICIES

GRANT EXPENDITURE FINANCIAL INSTRUMENTS Non-discretionary grants are those grants that are awarded Financial instruments are classifi ed into the following three if the grant application meets the specifi ed criteria and are headings: (i) fi nancial assets comprising: cash and cash recognised as expenditure when an application that meets equivalents; loans and receivables; available for sale assets; the specifi ed criteria for the grant has been received. and investments; (ii) fi nancial liabilities comprising: payables and borrowings; (iii) derivatives. Discretionary grants are those grants where there is no obligation to award on receipt of the grant application and Financial instruments are initially recognised at fair value are only recognised as expenditure when the successful plus transaction costs. Subsequent measurement is dependant upon the classifi cation determined by the Council. applicant has been notifi ed of the decision.

FINANCIAL ASSETS CASH AND CASH EQUIVALENTS Financial assets are classifi ed into four categories as Cash and cash equivalents includes: cash in hand; deposits detailed below. The classifi cation depends on the purpose held at call with banks; other short-term highly liquid for which the investments were acquired. The Council investments with original maturities of three months or less; determines the classifi cation of its investments at initial and bank overdrafts. recognition and re-evaluates this designation at every reporting date. Bank overdrafts are shown within current liabilities in the balance sheet. Purchases and sales of fi nancial assets are recognised on trade-date, the date on which the Council commits to TRADE AND OTHER RECEIVABLES purchase or sell the asset. Financial assets are derecognised Trade and other receivables are initially measured at when the rights to receive cash fl ows from the fi nancial fair value and subsequently measured at amortised cost asset has expired or have been transferred and the Council using the effective interest method, less any provision for has transferred substantially all the risks and rewards of impairment. ownership. The four categories of fi nancial assets are:

Loans, including loans to community organisations made Financial assets at fair value through profi t or loss at nil, or below-market interest rates are initially recognised Assets designated at fair value through profi t or loss are at the present value of their expected future cash fl ows, classifi ed as fi nancial assets if acquired principally for the discounted at the current market rate of return for a similar purpose of selling in the short term or if so designated by the asset/investment. They are subsequently measured at Council. Derivatives are classifi ed within this category. amortised cost using the effective interest method. The difference between the face value and present value of After initial recognition they are measured at their fair values expected future cash fl ows of the loan is recognised in the with gains and losses on re-measurement recognised in the income statement as a grant. income statement.

A provision for impairment of receivables is established when Loans and receivables there is objective evidence that the Council will not be able Loans and receivables are non-derivative fi nancial assets to collect all amounts due according to the original terms of with fi xed or determinable payments that are not quoted in an POLICIES ACCOUNTING OF STATEMENT receivables. The amount of the provision is the difference active market. They are included in current assets, except for between the asset’s carrying amount and the present value maturities greater than 12 months after balance date, which of estimated future cash fl ows, discounted using the effective are included in non current assets. Loans and receivables interest method. assets comprise: cash and cash equivalents; debtors and other receivables; and term deposits.

INVENTORIES SECTION TWO Inventories held for distribution are stated at the lower of cost After initial recognition they are measured at amortised adjusted, where applicable, for any loss of service potential cost using the effective interest rate method less and current replacement cost. The cost of purchased impairment. Gains and losses when the asset is impaired or derecognised are recognised in the income inventory is determined using the First in First Out (FIFO) statement. method.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 71 STATEMENT OF ACCOUNTING POLICIES CONTINUED

Held-to-maturity investments in the fair value of derivative fi nancial instruments are Held-to-maturity investments are non-derivative fi nancial recognised in the income statement as an unrealised profi t assets with fi xed or determinable payments and fi xed or loss on derivative fi nancial instruments. The net fair value maturities that the Council have the positive intention and of derivative fi nancial instruments is recorded in the balance ability to hold to maturity. sheet as a current asset or liability.

After initial recognition they are measured at amortised The portfolio of derivative fi nancial instruments is considered cost using the effective interest rate method less a hedge against the portfolio of current and future debt impairment. Gains and losses when the asset is impaired or liabilities exposed to interest rate risk. Derivative fi nancial derecognised are recognised in the income statement. instruments are not assigned to any particular individual debt item, except for the case of fi xed interest rate ‘payer Investments are initially recognised at fair value plus swaps’. Interest payable or receivable from derivative transactions costs unless they are carried at fair value fi nancial instruments is recognised on the same basis as the through profi t and loss, in which case the transaction costs underlying debt portfolio, as accrued revenue or expense in are recognised in the income statement. the income statement over the life of the agreement.

Short term deposits and investment securities are valued INVESTMENTS IN ASSOCIATES at amortised cost, which is adjusted for any premium or The Council’s investment in its associates is accounted for at discount paid or received upon the acquisition of securities. cost. Discounts and premiums resulting from the acquisition of securities are amortised over the term of the security on a NON CURRENT ASSETS HELD FOR SALE purchase yield basis. Non current assets held for sale are classiﬁ ed as held for

sale if their carrying amount will be recovered principally Financial assets at fair value through equity through a sale transaction rather than through continuing Financial assets at fair value through equity are non-derivative use. Non current assets held for sale are measured at the fi nancial assets that are either designated in this category or lower of carrying amount and fair value less cost to sell. not classifi ed in any of the other categories. Where a property previously accounted for as an investment These fi nancial assets are subsequently carried at fair value. property is intended to be sold, it has been reclassifi ed Shares in companies other than associates and subsidiaries accordingly and recorded at the carrying amount at the date are classifi ed in this category and are recorded at fair value. of the change of intention. Where the carrying amount is An increase in the fair value of a shareholding is recognised greater than fair value less cost to sell, the decrease in value in the statement of comprehensive income unless it offsets is recognised in the income statement. a previous decrease recognised in the income statement, in which case it is recognised in the income statement. A Non current assets held for sale is not depreciated while they decrease in fair value is recognised in income statement are classifi ed as held for sale. where it exceeds the increase previously recognised in equity. INVESTMENT PROPERTIES FINANCIAL LIABILITIES Investment properties are properties which are held either Financial liabilities include creditors and other payables and to earn rental income or for capital appreciation, or for both. borrowings. These liabilities fall within the category of loans Investment properties are stated at fair value. An external, STATEMENT OF ACCOUNTING POLICIES ACCOUNTING OF STATEMENT and receivables. independent valuation company, having an appropriate recognised professional qualifi cation and recent experience in the location and category of property being valued, DERIVATIVES values the portfolio every year. The fair values are based The Council uses various derivative fi nancial instruments to on market values, being the estimated amount for which hedge exposures to interest rate risks. The Council does not a property could be exchanged on the date of valuation hold derivative fi nancial instruments for trading purposes. between a willing buyer and a willing seller in an arm’s SECTION TWO SECTION TWO Approved derivative fi nancial instruments are: Forward Rate length transaction after proper marketing wherein the parties Agreements; Interest Rate Swaps; and Specifi ed Interest had each acted knowledgeably, prudently and without Rate Options. compulsion. The Council has not adopted hedge account accounting. Gains or losses arising from a change in the fair value of Derivatives are initially recognised at fair value on the date investment property are recognised in the income statement. a derivative contract is entered into and are subsequently Where an investment property is disposed of, the gain or loss remeasured at their fair value at each balance date. Changes is the difference between the net disposal proceeds and the

72 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO STATEMENT OF ACCOUNTING POLICIES

carrying amount and is recognised in the income statement in the year of disposal. The carrying values of revalued items are reviewed at each balance date to ensure these values are not materially Investment properties are not depreciated. different to fair value.

PROPERTY, PLANT AND EQUIPMENT All remaining classes of property, plant and equipment Property, plant and equipment consists of: is shown at deemed cost or cost, less accumulated depreciation and impairment losses. Operational assets – These include: land; buildings; library books; plant and equipment; motor vehicles; and leased ADDITIONS assets. The Council owns a number of properties, which are The cost of an item of property, plant and equipment is maintained primarily to provide housing to pensioners. These properties are held for service delivery objectives as part recognised as an asset if, and only if, it is probable that future of the Council’s social housing policy. These properties are economic benefi ts or service potential associated with the accounted for as operational assets. item will fl ow to the Council and the cost of the item can be measured reliably. Restricted assets – Restricted assets are parks and reserves owned by the Council which provide a benefi t In most instances, an item of property, plant and equipment or service to the community and cannot be disposed of is recognised at its cost. Where an asset is acquired at no because of legal or other restrictions. cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition. Infrastructure assets – Infrastructure assets are the fi xed utility systems owned by the Council. Each asset DISPOSALS class includes all items that are required for the network to Gains and losses on disposals are determined by comparing function, for example, sewer reticulation includes reticulation the proceeds with the carrying amount of the asset. Gains piping and sewer pump stations. and losses on disposals are reported net in the income VALUATION statement. When revalued assets are sold, the amounts Under NZ IFRS 1 the Council elected to use the fair value included in asset revaluation reserves in respect of those of its property plant and equipment as at 30 June 2005 as assets are transferred to retained earnings. deemed cost for the 1 July 2005 opening balance sheet. Since 1 July 2005 the valuation policies as detailed below SUBSEQUENT COSTS are applied: Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic Infrastructure assets, excluding land, are stated at valuation as determined at least every three years by an independent benefi ts or service potential associated with the item will valuer, or a Council employee suffi ciently experienced to fl ow to the Council and the cost of the item can be measured conduct a valuation. Valuations conducted by a Council reliably. employee are subject to review by an independent valuer. DEPRECIATION The latest valuation for infrastructure assets was performed Depreciation is provided on a straight-line basis for all as at 31 May 2007 and the basis of valuation is optimised property, plant and equipment (other than land, pavement depreciated replacement cost. Any increase in value of formation, and road marking) at rates that will write off the POLICIES ACCOUNTING OF STATEMENT a class of infrastructure is recognised in the statement of cost (or valuation) of the assets to their estimated residual comprehensive income unless it offsets a previous decrease values over their useful lives. Depreciation is not provided in value recognised in the income statement, in which case on assets under construction until they are complete it is recognised in the income statement. A decrease in and available for use. The useful lives and associated value relating to a class of infrastructure is recognised in the depreciation rates of major classes of assets have been

income statement where it exceeds the increase previously estimated as follows: SECTION TWO recognised in equity.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 73 STATEMENT OF ACCOUNTING POLICIES CONTINUED

Land not depreciated Buildings (at individual component level) 15-50 years Motor vehicles, ofﬁ ce equipment, furniture and ﬁ ttings 5 years Plant and equipment 10 years Library books 8 years

INFRASTRUCTURE ASSETS Transport system pavement surface 3-75 years pavement layers 50-85 years pavement formation, road marking not depreciated major culverts, bridges, drainage control 80-100 years retaining walls and footpaths 50-80 years street lighting, trafﬁ c signs, trafﬁ c signals 20 years street furniture and safety barriers 30 years

Parks and reserves bridges, buildings, other structures 30-50 years drainage systems 20-33 years car parks and courts base 15-80 years furniture, fencing, tracks, surfaces, sports ﬁ elds 5-75 years lighting 30 years

Stormwater reticulation pipes 30-100 years manholes, cesspits, inlets and outlet structures 80 years detention and quality ponds, dam retaining walls 50 years swales, rain gardens, permeable paving, sand ﬁ lters 15-50 years mechanical devices (litter traps, enviropods) 5 years stream ﬂ ood warning alarms, network modelling 10 years stream bank improvements 25 years

Wastewater reticulation pipes 60-100 years manholes and dry chambers 80 years pipe bridges 60 years pump stations (at individual component level) 12-100 years

Water supply reticulation pipes 40-80 years STATEMENT OF ACCOUNTING POLICIES ACCOUNTING OF STATEMENT ﬁ re hydrants, valves 25-70 years water meters 25-35 years pipe bridges 60 years reservoirs (at individual component level) 15-80 years drinking water monitoring stations 40 years

SECTION TWO SECTION TWO The residual value and the useful life of assets are reviewed, and adjusted if applicable, at each ﬁ nancial year end.

74 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO STATEMENT OF ACCOUNTING POLICIES

INTANGIBLE ASSETS due to their short term nature they are not discounted. They Intangible assets comprise of purchased software licenses represent liabilities for goods and services provided to the and internally developed software. Council prior to the end of the ﬁ nancial year that are unpaid and arise when the Council becomes obliged to make future Acquired computer software and software licences are payments in respect of the purchase of these goods and capitalised on the basis of the costs incurred to acquire and services. The amounts are unsecured and are usually paid bring to use the speciﬁ c software. within 30 days of recognition.

The production of identifi able and unique software products controlled by the Council are capitalised and recognised PROVISIONS as intangible assets if the software will generate economic Provisions are recognised when the Council has a present benefi ts exceeding costs beyond one year. Direct costs legal or constructive obligation as a result of past events, include employee costs incurred in developing the software it is more likely than not that an outfl ow of resources will and an appropriate portion of relevant overheads. be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future Intangible assets are amortised on a straight line basis operating losses. over their estimated useful lives of between 3 to10 years. Cost associated with maintaining computer software are Where there are a number of similar obligations, the recognised as an expense as incurred. likelihood that an outfl ow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT outfl ow with respect to any one item included in the same AND INTANGIBLE ASSETS class of obligations may be small. Property, plant and equipment and intangible assets that have a fi nite useful life are reviewed for impairment whenever Provisions are measured at the present value of the events or changes in circumstances indicate that the expenditures expected to be required to settle the obligation carrying amount may not be recoverable. An impairment loss using a pre-tax rate that refl ects current market assessments is recognised for the amount by which the asset’s carrying of the time value of money and the risks specifi c to the amount exceeds its recoverable amount. The recoverable obligation. The increase in the provision due to the passage amount is the higher of an asset’s fair value less costs to sell of time is recognised as an interest expense and is included and value in use. in fi nance costs. Changes in the provision are recognised in the income statement. Value in use is depreciated replacement cost for an asset where the future economic benefi ts or service potential of the asset are not primarily dependent on the asset’s ability FINANCIAL GUARANTEE CONTRACTS to generate net cash infl ows and where the Council would, if A fi nancial guarantee contract is a contract that requires the deprived of the asset, replace its remaining future economic Council to make specifi ed payments to reimburse the holder benefi ts or service potential. for a loss it incurs because a specifi ed debtor fails to make payment when due. If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is Financial guarantee contracts are initially recognised at fair POLICIES ACCOUNTING OF STATEMENT written down to the recoverable amount. For revalued assets value. If a fi nancial guarantee was issued in a stand-alone the impairment loss is recognised against the revaluation arms length transaction to an unrelated party, its fair value reserve for that class of asset. Where that results in a debit at inception is equal to the consideration received. When no balance in the revaluation reserve, the balance is recognised consideration is received a provision is recognised based in the income statement. on the probability the Council will be required to reimburse a

holder for a loss incurred discounted to present value. The SECTION TWO For assets not carried at a revalued amount, the total portion of the guarantee that remains unrecognised, prior to impairment loss is recognised in the income statement. discounting to fair value, is disclosed as a contingent liability.

TRADE AND OTHER PAYABLES Financial guarantees are subsequently Creditors and other payables are initially measured at fair measured at that initial recognition amount less value and subsequently measured at amortised cost, but any amortisation, however if the Council assess

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 75 STATEMENT OF ACCOUNTING POLICIES CONTINUED

that it is probable the expenditure will be required to settle a SUPERANNUATION SCHEMES guarantee, then the provision for the guarantee is measured at the present value of the future expenditure. Defi ned contribution schemes Obligations for contributions to defi ned contribution LANDFILL AFTERCARE COSTS superannuation schemes are recognised as an expense in The Council is responsible for a provision of landfi ll aftercare the income statement as incurred. costs. The provision is stated at the present value of the future cash outfl ows expected to be incurred, taking into BORROWINGS account future events including new legal requirements and Borrowings are initially recognised at fair value, net of known improvements in technology. The liability includes all transaction costs incurred and subsequently measured at costs associated with landfi ll aftercare. amortised cost using the effective interest method. Any difference between the proceeds (net of transaction costs) BUILDING WEATHER-TIGHTNESS and the redemption amount is recognised in the income The provision is stated at the present value of the future cash statement over the period of the borrowings using the outfl ows expected to be incurred. effective interest method.

EMPLOYEE ENTITLEMENTS EQUITY Short-term employee benefi ts Equity is the community’s interest in the Council and is Employee benefi ts that are expected to be settled within 12 measured as the difference between total assets and total months of balance date are measured at nominal values liabilities. Equity is disaggregated and classifi ed into the based on accrued entitlements at current rates of pay. following components:

These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance • Accumulated funds date, retiring and long service leave entitlements expected to • Council created reserves be settled within 12 months, and sick leave. • Restricted reserves • Revaluation reserves A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater • Fair value through equity reserves. than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave Council created reserves entitlement that can be carried forward at balance date, to Council created reserves are reserves restricted by Council the extent that it is anticipated that the leave will be used by decision. The Council may alter them without references to employees to cover those future absences. any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council. Long term employee beneﬁ ts Entitlements that are payable beyond 12 months, such as Restricted reserves long service leave and retiring leave; have been calculated Restricted reserves are a component of equity generally on an actuarial basis. representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or STATEMENT OF ACCOUNTING POLICIES ACCOUNTING OF STATEMENT The calculation is based on: created by the Council.

• Likely future entitlements accruing to employees, based Restricted reserves are those subject to specifi c conditions on years of service, years to entitlement, the likelihood accepted as binding by the Council and which may not be that employees will reach the point of entitlement and revised by the Council without reference to the Courts or contractual entitlements information a third party. Transfers from these reserves may be made SECTION TWO SECTION TWO • The present value of the estimated future cash fl ows. only for certain specifi ed purposes or when certain specifi ed conditions are met. The discount rates is based on the weighted average of interest rates for government stock with terms to maturity GOODS AND SERVICES TAX (GST) similar to those of the relevant liabilities. The infl ation factor All items in the prospective fi nancial statements are exclusive is based on the expected long-term increase in remuneration of GST, with the exception of receivables and payables, for employees. which are stated as GST inclusive. Where GST is not

76 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO STATEMENT OF ACCOUNTING POLICIES

recoverable as an input tax then it is recognised as part of Deferred tax is recognised on taxable temporary differences the related asset or expense. arising on investments in subsidiaries and associates, and interests in joint ventures, except where the reversal of the INCOME TAX temporary difference can be controlled and it is probable that Income tax expense in relation to the surplus or deﬁ cit for the temporary difference will not reverse in the foreseeable the period comprises current tax and deferred tax. Current future. Deferred tax is calculated at the tax rates that are tax and deferred tax is charged or credited to the income expected to apply in the period when the liability is settled or statement, except when it relates to items charged or credited the asset is realised, using tax rates that have been enacted directly to equity, in which case the tax is dealt within equity. or substantively enacted by balance date.

Current tax is the amount of income tax payable based on COST ALLOCATION the taxable profi t for the current year, plus any adjustments The Council has derived the cost of service for each to income tax payable in respect of prior years. Current signifi cant activity (as reported in the activity statements) tax is calculated using rates that have been enacted or using the following cost allocation methodology: substantively enacted by balance date. Direct support costs are charged directly to signifi cant activities. These consist of specifi c unit administration Deferred tax is the amount of income tax payable or functions readily identifi able with a signifi cant activity. recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences Indirect costs, which cannot be identifi ed to a specifi c are differences between the carrying amount of assets and signifi cant activity, are allocated to signifi cant activities by a liabilities in the prospective fi nancial statements and the number of cost drivers such as staff numbers and fl oor area. corresponding tax bases used in the computation of taxable profi t. CRITICAL ACCOUNTING ESTIMATES AND

ASSUMPTIONS Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised Refer signifi cant forecasting assumptions page 88. to the extent that it is probable that taxable profi ts will be available against which the deductible temporary differences or tax losses can be utilised. Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of an asset and liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting profi t nor taxable profi t.

STATEMENT OF ACCOUNTING POLICIES ACCOUNTING OF STATEMENT SECTION TWO SECTION TWO

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 77 SIGNIFICANT FORECASTING ASSUMPTIONS

The ﬁ nancial information in this draft Long-Term Council Community Plan (LTCCP) is a forecast of the Council’s future expenditure and funding requirements.

The purpose of this section is to set out the assumptions, and to identify the level of risk that these assumptions may have to the integrity of the LTCCP if those assumptions are not realised.

The draft LTCCP must clearly identify:

• all the signifi cant forecasting assumptions and risks underlying the fi nancial estimates • the assumptions of the Council concerning the useful life of signifi cant assets, and the sources of funds for future replacement of signifi cant assets • any case where signifi cant forecasting assumptions involve a high level of uncertainty • the fact of that uncertainty, and an estimate of the potential effects of that uncertainty on the fi nancial estimates provided.

The Council has a corporate data set to its forecasting assumptions used in this draft of its LTCCP, the assumptions made will be reviewed annually through the annual plan process and a full review as part of the 2012-2022 LTCCP.

The following tables table below show a summary of the signiﬁ cant forecasting assumptions made in this draft LTCCP.

ASSUMPTIONS WCC ASSUMPTIONS 1. Useful lives of Future replacement of signifi cant assets will be funded from rates levies to fund depreciation. signifi cant assets If the rates so levied are insuffi cient to fund the required level of renewals, then loan funds will be used. 2. Sources of funds for Future replacement of signifi cant assets will be funded from depreciation reserves or loan as future replacement of appropriate or affordable. signifi cant assets 3. Projected growth Growth in the Northern Strategic Growth Area is dependent on the movement of the change factors Metropolitan Urban Limit (MUL). Growth is predicted to start in this area in year 4 (2012) of the LTCCP. If there is a delay in the movement of the MUL, then the planned growth will not take place. This will result in less capital expenditure and less Development Contributions. This may occur.

Using Statistics New Zealand medium growth scenario projections, and assuming linear growth, the population of Waitakere will increase by some 31,100 people over the period 2009-2019. This represents growth from approximately 205,020 in 2009 to 236,129 by 2019 and 271,900 by 2031. 4. Approach to potential Waitakere is part of a research project, Climate Impacts on New Zealand Infrastructure climate change (CLINZI), which looked at the impact of climate change on Waitakere. The study examined SIGNIFICANT FORECASTING ASSUMPTIONS SIGNIFICANT FORECASTING impacts global climate trends then used speciﬁ c New Zealand data from National Institute of Water and Atmospheric Research (NIWA) to formulate scenarios for temperature change and rainfall.

CLINZI’s ﬁ ndings have informed the Council’s activity plans, particularly those relating to infrastructure. As part of the project, the CLINZI researchers reviewed the relevant activity SECTION TWO SECTION TWO plans to assess their effectiveness in addressing climate change.

78 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO SIGNIFICANT FORECASTING ASSUMPTIONS

ASSUMPTIONS WCC ASSUMPTIONS 4. Approach to potential In Waitakere, climate change is expected to result in increased volume and intensity of rainfall climate change and longer dry spells. impacts (continued) If sea levels rise only slightly, localised impacts may occur in low lying areas, particularly near streams where ﬂ ooding already occurs. If the sea level rise is more severe, it will exacerbate ocean storm surge damage, and will cause coastal inundation, erosion, loss of wetlands and salt water intrusion, and beach erosion.

Climate change is a core component of the Council’s sustainability approach, with a focus on both actions to reduce the Council’s and City’s contribution to climate change and to prepare for more extreme weather events.

Climate change is addressed through a number of the community outcomes and their priority areas: • Green Network • Sustainable and Integrated Transport • Sustainable Environment • Urban and Rural Villages • Whaiora – Environmental Protection.

Measures for the community outcomes are reported in the Waitakere Community Outcomes Progress Report 2008.

The Council adopted the Waitakere Action Plan on Climate Change and Energy in September 2006. The Action Plan was based on an inventory of the City’s greenhouse gas emissions and set targets for reducing emissions, both community-wide and in the Council’s own operations. It outlines actions for the Council to take in the areas of transport, energy use in buildings, renewable local generation, waste reduction, education and awareness and adaptation.

The Action Plan is being reviewed and updated in 2009.

Waitakere is a member of ICLEI’s Communities for Climate Protection Programme and has achieved Milestones one to four of the programme’s ﬁ ve milestones. It has conducted an inventory of greenhouse gas emissions; set reduction targets; approved an action plan; begun implementing it; and has reported successful progress towards the targets. The plan is formulated around the headings of transport, waste, energy use in buildings, education and awareness, renewable energy generation and adaptation.

Speciﬁ c actions to reduce the Council’s and City’s contribution to climate change and to prepare for more extreme weather events are included in a number of activity plans. ASSUMPTIONS SIGNIFICANT FORECASTING

Waitakere is a participant in two Auckland Regional Council-led initiatives: the Regional Climate Change Strategy and the Regional Energy Strategy.

5. Approach to potential It is expected that the population within Waitakere will continue to grow and diversify. Large SECTION TWO SECTION TWO societal changes increases in the proportion of residents aged over 65 is likely to occur and the population is likely to become more ethnically diverse in the future. The proportion of one family households and families of couples without children are projected to increase.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 79 SIGNIFICANT FORECASTING ASSUMPTIONS CONTINUED

ASSUMPTIONS WCC ASSUMPTIONS 6. Cost factors Price level adjustments as provided by Business and Economic Research Limited (BERL) have been used to adjust costs and revenue for future years.

This LTCCP has been prepared based on price level adjustments recommended by BERL. These have been applied individually to all budgeted items. Where increases in contract prices are known, the budget for these is adjusted for the known increase in today’s dollars and then increased by the BERL adjustor.

If costs increase at a rate greater than the BERL adjustors, then the Council will have to consider whether it can maintain the proposed level of service. If this occurs, it will arise in future annual plans and may require an amendment to the LTCCP.

The cumulative effect of the price level changes over the period of the LTCCP probably introduces the greatest uncertainty into the ﬁ nancial statements and will probably occur. 7. NZTA subsidy Subsidy rates are assumed to remain constant of the period of the LTCCP. rates These rates are: Renewals and maintenance 43%

Capital expenditure 53%.

The 43% renewals and subsidy attracts an additional 2% on the 43% for administration giving a total subsidy of 43.86%.

These rates have been constant for a number of years and it is assumed that they will not change over the life of the LTCCP. If there is an increase in the capital expenditure subsidy rate, then the borrowing requirement will be reduced, with the opposite effect should the subsidy rate decrease. This is unlikely to occur.

If the subsidy rate for renewals and maintenance increases then the rate requirement will decrease with the opposite effect should the subsidy rate decrease. This is unlikely to occur. 8. Revaluation of non- The transport system, parks and reserves, stormwater reticulation, wastewater reticulation, current assets water supply reticulation assets and investment properties will be revalued in line with the accounting policy. The valuations for the LTCCP are the previous year’s values, plus additions and then increased by the appropriate price level adjuster from BERL.

Depreciation on these items is calculated annually on the revised values.

SIGNIFICANT FORECASTING ASSUMPTIONS SIGNIFICANT FORECASTING Investment properties will be revalued as appropriate.

General ﬁ xed assets are not revalued and reported at historical costs plus additions. Depreciation is calculated as detailed above.

The cumulative effect of the price level changes over the period of the LTCCP probably

SECTION TWO SECTION TWO introduces the greatest uncertainty into the ﬁ nancial statements and will probably occur.

80 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO SIGNIFICANT FORECASTING ASSUMPTIONS

ASSUMPTIONS WCC ASSUMPTIONS 9. Forecast return on Return on cash investments is calculated on the borrowing rate less 2%. Dividends and investments subvention payments from Waitakere City Holdings Limited are assumed to be constant throughout the term of the LTCCP.

The Council has and will be acquiring land for future development and sale. The timing of this development and sale is uncertain so these returns have not been included.

If sales occur, any proceeds from the sale will be used to repay debt in accordance with the Council’s policy on asset sales. If there is a delay in the movement of the MUL, then any sale and development in this area will be delayed. This may occur. 10. Expected interest The interest rate for this LTCCP has been established by considering current economic rates on borrowing information and anticipated changes to interest rates over the term of the plan. Interest rates are forecasted to be lower in the earlier stages of the LTCCP but trend upwards over the ﬁ rst three years and then remain constant at 7.2%. Due to uncertainties of the global economic environment, interest rates may remain lower for a longer period or may be signiﬁ cantly higher than the forecasting assumptions used in this plan. 11. Changes to Waitakere The Royal Commission on Auckland Governance report was released in April 2009 and a City Council business subsequent decision on the report was issued by central government. The Local Government dictated by changes in (Tamaki Makarau) Act 2009 and further scheduled legislative changes will result in the setting regional governance and up of an Auckland Council from October 2010. This will mean that Waitakere City Council will other legislative or central cease to exist from October 2010, with the functions and activities it currently performs being government policy changes transferred to the Auckland Council or a proposed Local Board.

The Auckland Transition Agency has been charged with managing the transition from the existing seven territorial authorities and one regional council, to a single unitary authority for Auckland (Auckland Council) and 20 to 30 Local Boards. This will include powers to review Waitakere City Council’s decisions and spending in the period to October 2010 and approval of the Long Term Council Community Plan 2009-2019 and the implementation of decisions that are included in the LTCCP. No provision has been made for transition costs due to uncertainties. 12. Depreciation rates Deprecation is calculated on planned future asset acquisitions and creation using the on planned asset depreciation rates based on the useful lives detailed above. This is calculated to ﬁ rst apply in acquisitions the year after the planned acquisition or creation.

If the planned asset acquisition or creation does not take place when predicted, then the depreciation will not apply until it happens. This will probably occur. 13. Resource consents The Council has the following operations that are subject to resource consents

from the Auckland Regional Council: ASSUMPTIONS SIGNIFICANT FORECASTING • Quarry • Refuse Transfer Station • Cemetery and crematorium

It is not expected that any future consents will be required, with the exception of replacement cremator in year 10 of the LTCCP. The resource consent costs for this are included in year 9. SECTION TWO This will not occur if the cremator does not proceed or is delayed.

The Quarry is expected to cease operations at the end of year 8.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 81 SIGNIFICANT FORECASTING ASSUMPTIONS CONTINUED

ASSUMPTIONS WCC ASSUMPTIONS 14. Currency movements The Council has no assets that are dependent on exchange rates. Where items are purchased and related asset from overseas, such as library books, the payments are determined by the budget in New values Zealand dollars so there will be no impact. Major movements will impact on the number of books purchased.

This will probably occur as the budgets are in New Zealand dollars which dictate the amount that we can purchase from overseas.

Movements in the price of oil determines the level of work that can be carried out on infrastructure that is dependent on oil based products. 15. Renewability or It is assumed that the following sources of funds will continue for the term of the otherwise of external LTCCP unless otherwise stated: funding • NZTA subsidies • Subsidies for Civil Defence and Rural Fire • Subsidies for Creative Communities • Subsidy for the Cemetery • Subsidy for Road Safety • Petrol tax • Funding for Project Twin Streams from the Auckland Regional Council

With the exception of Project Twin Streams which is a large single project for which funding is approved, on-going external funding is generally dependant on Central Government Policy. While a change in this is possible, it is unlikely. 16. Vector control There are no Vector control subsidies in the LTCCP. subsidies 17. Rental income There is no provision for increases in the number of rental properties held by the Council. Existing rental income has been increased by the relevant price adjuster.

This will probably occur as there are no provisions in the LTCCP to sell or acquire any further properties. 18. Other sundry income Income from consents, licences and other user charges is assumed to be at the same level throughout the LTCCP period, but adjusted by the relevant price adjuster.

There is a correlation between other income and general economic activity. This is diffi cult to predict over 10 years so the approach stated is taken. It is most likely that economic activity SIGNIFICANT FORECASTING ASSUMPTIONS SIGNIFICANT FORECASTING will fl uctuate. 19. Council specifi c It is diffi cult to predict how and when development will happen over 10 years as it is dependant assumptions on externalities outside of the Council’s control. There will be growth in the rating base, but it is likely that the quantum in future years will be different from that predicted. 19.1 That a specifi ed A number of infrastructure cost sharing agreements may be negotiated between developers

SECTION TWO SECTION TWO partnership will and the Council reducing the level of Council expenditure on capital projects that may have generate particular otherwise been recovered by development contributions or ﬁ nancial contributions, This is cost savings likely to happen.

82 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO SIGNIFICANT FORECASTING ASSUMPTIONS

ASSUMPTIONS WCC ASSUMPTIONS 19.2 That a collaborative There are none planned at this stage. arrangement with another party may be established 19.3 That a specifi c ccto There are none planned at this stage. will return a specifi ed amount of revenue 19.4 That the ownership of There are none planned at this stage. a signifi cant asset will be transferred to or from another party 20. Statements of fact 20.1 Which the fi nancial Price level adjustments as provided by (BERL) have been used to adjust costs and revenue forecasts are based for future years.

The LTCCP has been prepared based on price level adjustments recommended by BERL. These have been applied individually to all budgeted items. Where increases in contract prices are known, the budget for these is adjusted for the known increase in today’s dollars and then increased by the BERL adjustor. If costs increase at a rate greater than the BERL adjustors, then the Council will have to consider whether it can maintain the proposed level of service. The cumulative effect of the price level changes over the period of the LTCCP probably introduces the greatest uncertainty into the fi nancial statements and will probably occur. 20.2 That planned costs These are not included. exclude any fi nancial implications of natural disasters 20.3 Whether the fi nancial The fi nancial statements are not consolidated. statements are consolidated 20.4 The LTCCP is based The development contributions policy has been changed to refl ect the new growth patterns. on current council The underlying philosophy is unchanged. There are no material changes to any other policies. policies 20.5 Projected rates are There are no changes predicted to levels of service. calculated according to the funds

requirement of each ASSUMPTIONS SIGNIFICANT FORECASTING function to maintain current service levels SECTION TWO SECTION TWO

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 83 PROSPECTIVE SUMMARY OF FUTURE BORROWING

OPENING BALANCE 374,182 450,460 635,123 747,443 854,820 952,870 1,025,180 1,068,333 1,072,042 1,047,591 993,404

MOVEMENTS DURING THE YEAR New borrowings 77,278 81,837 81,091 63,104 60,804 37,503 24,025 11,145 13,708 10,172 8,343 Debt Repayment (1,000) (11,588) (7,567) (6,372) (1,941) (3,631) (3,855) (22,257) (44,946) (72,798) (106,498) New loans sanctioned from previous years 0 114,412 38,797 50,647 39,187 38,438 22,983 14,821 6,787 8,439 6,636

CLOSING BALANCE 450,460 635,121 747,444 854,822 952,870 1,025,180 1,068,333 1,072,042 1,047,591 993,404 901,885

STRATEGIC LAND HOLDINGS Strategic land holdings opening balance 31,922 46,922 57,112 53,112 52,012 52,012 52,012 52,012 52,012 52,012 52,012

MOVEMENTS DURING THE YEAR Strategic land holdings acquisitions 15,000 9,190 (4,000) (1,100) 0 0 0 0 0 0 0

CLOSING BALANCE 46,922 56,112 53,112 52,012 52,012 52,012 52,012 52,012 52,012 52,012 52,012

NET TERM DEBT 403,538 579,009 694,332 802,810 900,858 973,168 1,016,321 1,020,030 995,579 941,392 849,873

FINANCIAL RATIOS Net debt as a percentage of total income 161% 212% 235% 254% 273% 281% 270% 254% 229% 197% 163% Net interest as a percentage of total income 11% 12% 13% 14% 16% 17% 17% 17% 15% 14% 12% Net interest as a percentage of rates (including water) 18% 20% 22% 24% 25% 26% 25% 24% 21% 19% 16% PROSPECTIVE SUMMARY OF FUTURE BORROWING OF FUTURE BORROWING SUMMARY PROSPECTIVE SECTION TWO SECTION TWO

84 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION TWO PROSPECTIVE SUMMARY OF FUTURE BORROWING PROSPECTIVE SUMMARY OF FUTURE BORROWING OF FUTURE BORROWING SUMMARY PROSPECTIVE SECTION TWO SECTION TWO

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 85 REVENUE AND FINANCING POLICY

CONTENTS PAGE INTRODUCTION INTRODUCTION 86 1 LEGAL REQUIREMENTS 86 In order to provide predictability and certainty about sources and levels of funding 1.1 Financial Management 86 available, the Local Government Act 2002 requires the Council to adopt a Revenue and Financing Policy as part of the funding and fi nancial policies prescribed in the 1.2 Revenue and Financing Act. The expenditures for which funding is needed are identifi ed in the Long Term Policy Considerations 86 Council Community Plan and the Annual Plan of the Council. 1.3 Other Legal Requirements 88 2 GENERAL POLICIES ON The Revenue and Financing Policy is an integral part of the LTCCP which contains FUNDING AND SOURCES the details of the Council’s strategic vision, community outcomes, the activities OF FUNDING 89 undertaken and how they contribute to community outcomes, expenditure 2.1 Capital Expenditure 89 projections and the fi nancial policies. As such, some of the material presented 2.2 Operating Expenditure 92 elsewhere in the LTCCP is not reproduced in full in the Revenue and Financing Policy; but where relevant, cross references are made. The LTCCP and the 3 SUMMARY OF FUNDING policies adopted along with it are reviewed at least every three years. SOURCES BY ACTIVITY 97 4 REVENUE AND FINANCING The Revenue and Financing Policy provides a framework for the determination of POLICY BY MAJOR fi nancing methods, as provided in the Local Government Act 2002. It explains the ACTIVITIES 99 rationale for and the process of the selection of various funding sources to fund 4.1 Strategic Projects 99 the operating and capital expenditures of the Council activities. It is an important 4.2 Social and Cultural instrument of the Council’s fi nancial management because how the activities are Strategy 99 funded can have a signifi cant impact on the fi nancial viability of council services 4.3 Strategic Planning 101 as well as on the current and future social, economic, environmental and cultural wellbeing of the community. 4.4 Water Supply 102 4.5 Wastewater 103 Waitakere City Council adopted its fi rst Revenue and Financing Policy in June 4.6 Stormwater 106 2003. It was amended in 2004, 2006 and 2008 to refl ect the changes introduced 4.7 Parks and Open Spaces 108 to the funding sources since the adoption of the fi rst policy. This Policy formed the statement of proposal for public consultation prior to its consideration for adoption 4.8 Transport Assets 110 as part of the LTCCP 2009-2019. 4.9 Property Assets 115 4.10 Cemeteries 117 4.11 Solid Waste 118 1 LEGAL REQUIREMENTS 4.12 Aftercare 120 1.1 FINANCIAL MANAGEMENT The Council is required to manage its fi nances prudently and in a manner 4.13 Library Services 121 that promotes the current and future wellbeing of the community. The Council 4.14 Emergency Management 122 must also make adequate and effective provision in its LTCCP and Annual 4.15 Leisure Services 123 Plans (where applicable) to meet the expenditure needs contained therein. 4.16 West Wave Aquatic and Recreation Centre 125 In order to provide predictability and certainty about sources and levels of REVENUE AND FINANCING POLICY REVENUE 4.17 Arts, Events and funding, the Local Government Act 2002 requires the Council to adopt a Communications 126 Revenue and Financing Policy as part of the suite of funding and fi nancial policies. 4.18 Animal Welfare 127 4.19 Field Services 128 1.2 REVENUE AND FINANCING POLICY CONSIDERATIONS 4.20 Consent Services 129 The Revenue and Financing Policy adopted must state the Council’s policies SECTION THREE 4.21 Resource Management 131 in respect of the funding of operating and capital expenses from the sources 4.22 Vehicle Testing Station 131 listed in section 103 (2) of the Local Government Act 2002. The policy must 4.23 Waitakere Quarry 132 also “show how the local authority has, in relation to the sources of funding 4.24 Support Activities 133 identifi ed in the policy complied with section 101 (3)” which sets out the considerations that should be taken into account. 5 THE OVERALL IMPACT OF THE FUNDING SOURCES 135

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In determining the appropriate funding sources, the costs are allocated to the entire community through Council has taken into consideration, in relation to each some form of property tax. Parks and local roads are activity, the following: examples of services that have some characteristics of a public good. Although it may be possible to exclude Community outcomes to which the activity those who do not pay for using these services, it may primarily contributes not be cost effective to set up barriers to free access Community outcomes represent a collective vision for and charge the individuals who use them. the future that also refl ects the diverse goals of many communities within Waitakere. These are presented in Private goods detail in the Community Outcomes for Waitakere City At the other extreme are the pure private goods 2006-2009 and summarised in the LTCCP 2009-2019. that have the opposite characteristics – rivalry and excludability. If the service provided by the Council is Distribution of benefi ts between the community as used by identifi able individuals or parties, and the costs a whole, any identifi able part of the community and related to the services used can be allocated directly individuals to them, such services are called private goods. The For the purpose of allocating of costs of each Council benefi ciaries of such services are the individuals or activity among individuals, groups of individuals and groups of individuals who can be identifi ed. The costs the entire community on the basis of benefi ciary pays of these services are generally recovered from the principle, it is essential to identify the benefi ciaries and consumers in the form of user charges, targeted rates the relevant cost of each activity. Whether the benefi ts or other appropriate forms of levies. accrue to the whole community or groups of individuals or individuals could be determined by applying three Positive externalities economic concepts: public goods, private goods and The use of private goods and services can also result in positive externalities. benefi ts to third parties – people who don’t directly use them. These “spill over effects” or “positive externalities” Public goods are called public or social benefi ts. If the public benefi ts Public goods constitute goods and services that have exceed the private benefi ts such goods (or services) certain characteristics that make it impossible or are called merit goods. These goods tend to be extremely costly and diffi cult to charge a price or a levy underprovided by the market as the private suppliers do on those who use the good or the service. Public goods not take into account the wider social benefi ts of making have two defi ning characteristics called non-rivalry and them affordable to the wider community. This calls for non-excludability. sharing of costs between the private users and the community as a whole. The Council may apply a mix of Non-rivalry means that consumption by one party does funding sources for such services in order to realise its not reduce the amount of that good or service available strategic goals and community outcomes. to others. Therefore, there is no extra cost involved if the number of people who use such service increases. The differentiation of private and public goods and the The costs related to individual units of consumption identifi cation of externalities are necessary for the strict cannot be identifi ed and allocated. apportionment of costs between private users and the

community as a whole in relation to the distribution AND FINANCING POLICY REVENUE Non-excludability means that it is impossible or of benefi ts. Where it is possible to identify those who extremely costly and diffi cult to identify those who benefi t from the services, the costs could be allocated benefi t from the service and exclude anyone who does to them through user pays. If those who benefi t from the not pay for the good or the service. service are not identifi able because of the public good nature of the service, or if the public benefi ts exceed If a good or a service has both these two characteristics the private benefi ts, the costs need to be shared by the it is a pure public good; and it will not be possible entire community through rates. SECTION THREE to separately identify the individuals or groups of individuals who consume such goods or services and Sometimes such differentiation is not practicable allocate the costs according to the level of consumption because, very few goods and services by individuals. Because of this, the whole community can be treated as pure private or public; is identifi ed as the benefi ciary of public goods, and, the most goods and services have some

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characteristics of both private and public goods (mixed The costs and benefi ts, including consequences goods); and it is extremely diffi cult to identify and of transparency and accountability, of funding the quantify externalities. In such circumstances, a more activity distinctly from other activities fl exible funding policy (e.g. a mix of funding methods) The Council needs to consider the costs (e.g. that allows the allocation of costs to both private users transaction costs) and the benefi ts such as transparency and the community is more appropriate. of separate funding. Separate funding enables the users of services to assess whether they get value for money, The period in or over which the benefi ts are and makes the Council accountable for the service expected to occur provided. It can also encourage people to use the This is an important consideration to achieve Council services more effi ciently. intergenerational equity – the principle that costs of any expenditure should be recovered at the time that However, separate funding could involve collection of the benefi ts of that expenditure accrue. Generally, information, more frequent billing and collection of fees, operating costs directly relate to the benefi ts of an all of which add costs to the Council. If the costs are activity performed during the year of expenditure. equal or exceed the revenue collected, it is not a cost Therefore, operating expenditures are normally funded effective funding method. from current revenue (e.g. sources such as rates, user charges, subsidies and other income). This analysis takes into consideration transparency, accountability and some assessment of the cost In contrast, capital expenditures relate to investments effi ciency and practicality of funding a particular activity separately - eg. from user pays, general rates in assets that generate benefi ts over their useful lives or targeted rates. This consideration is important in which extend beyond the current year. Hence, the selecting an appropriate funding mechanism. costs of these assets should be allocated to the users over time. This principle of intergenerational equity The overall impact of any allocation of liability for is sought by spreading the costs over time through revenue needs on the current and future social, funding mechanisms such as borrowings, development economic, environmental and cultural wellbeing of contributions and fi nancial contributions. the community Once the method of cost allocation for each activity The extent of the actions or inaction of individuals is identifi ed on the basis of the considerations stated or a group contributing to the activity undertaken above, the Council has also to consider the overall Council may have to undertake certain activities to impact of the cost allocation and recovery methods on remedy the negative effects of actions (or inactions) the current and future social, economic, environmental of individuals or groups of individuals. The costs and cultural wellbeing of the community. These wider associated with such activities need to be recovered impacts are likely to be different on different outcomes from those who cause such costs. This principle and, there can be trade offs among these outcomes (“exacerbator” or “polluter” pays principle) is particularly (e.g. effi ciency vs. equity). It is therefore necessary to relevant to Council’s regulatory functions and other strike a balance among them by selecting appropriate activities (such as wastewater and stormwater funding mixes. management) undertaken to mitigate the adverse

REVENUE AND FINANCING POLICY REVENUE effects on the environment and the community. It is 1.3 OTHER LEGAL REQUIREMENTS important to note that the actions themselves may not While the Revenue and Financing Policy is governed be negative or “bad” but they may have negative effects by the Local Government Act 2002, there are a number on the whole community. of other pieces of legislation that are relevant for determining appropriate funding mechanisms. They This principle is extended to developers who place include: demand on the City’s infrastructure, including capital SECTION THREE costs associated with growth effects. How the capital Local Government (Rating) Act 2002 expenditures related to growth are recovered is set out This Act, which replaced the Rating Powers Act 1988, in detail in the Council’s Development Contributions and provides simpliﬁ ed procedures for changing the rates Financial Contributions Policy. system and greater ﬂ exibility in setting targeted rates. The new Act came into effect for rating purposes for the year commencing 1 July 2003.

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It sets out all the legal requirements for rating. It (d) Interest and dividends from investments covers who is liable to pay rates, what land is rateable, (e) Borrowings what kind of rates may be set and how those rates (f) Proceeds from asset sales are set, the valuation systems which may be used (g) Development contributions and the various rating mechanisms available (such (h) Financial Contributions under the Resource as targeted rates). It also sets a number of limits on Management Act 1991 local government. For example, total uniform charges (i) Grants and subsidies (excluding any uniform annual charges for water or (j) Any other source. wastewater) may not exceed 30% of total rates revenue. The Council policy is to adopt any one or a mix of Building Act 2004, Sale of Liquor 1989 and funding sources stated above, depending on the Amendments, etc nature of the capital expenditure, in accordance A number of Acts, such as the above, set out statutory with section 101 (3). The funding methods currently fees for various types of regulatory services. These applied are described in more detail below, including fees may not be exceeded. Where fee setting is up the situations in which the Council will use each to the local authority, there is often a general legal method in accordance with section 101 (3) of the Local requirement for this to be “fair and reasonable”. Government Act 2002.

Resource Management Act 1991 Community outcomes This Act sets out the responsibilities of local authorities The Council invests in community facilities (reserves, in terms of the environment. It also specifi es the network infrastructure and community infrastructure) circumstances in which local authorities may require and other services in order to contribute to the fi nancial contributions from developers to meet the community outcomes identifi ed in the LTCCP and costs of their impact on the environment including their to promote the social, economic, environmental and impact on the demand for infrastructure. Alternatively, cultural wellbeing of communities in the present and for under the Local Government Act 2002, local authorities the future. The LTCCP 2009-2019 explains how the are allowed to seek development contributions or a Council activities or groups of activities contribute to the combination of development and fi nancial contributions community outcomes, which among other goals, seek to under the respective Acts. progress the wellbeing of the community.

The distribution of benefi ts 2 GENERAL POLICIES ON The allocation of costs in relation to the distribution of benefi ts is one of the economic principles (benefi ciary FUNDING AND SOURCES OF pays principle) applied in selecting appropriate funding sources for capital expenditures. However, FUNDING the application of this principle is not a simple, straightforward exercise, especially where the services 2.1 CAPITAL EXPENDITURE provided have public goods characteristics or where Capital expenditure is the category of spending which they produce indirect benefi ts (positive externalities).

creates a new asset, or extends the lifetime of an AND FINANCING POLICY REVENUE existing asset. These include replacement and renewal The distribution of benefi ts varies depending on of existing assets, raising levels of service and creating the purpose of the capital expenditure. Generally, additional capacities to meet future demand. replacement and renewal of existing asset capacities benefi t the current ratepayers; but additional capacities Funding sources for capital expenditure created to meet the demand generated by growth In terms of section 103 (2) of the Local Government Act primarily benefi t new developments (especially 2002, the following sources are available for the Council in greenfi eld areas). In addition, there are spatial SECTION THREE to fund capital expenditure: differences also in the distribution of benefi ts. (a) General rates, including choice of valuation In some circumstances, however, the extent of the system, differential rating, uniform charge and benefi ts accruing to particular individuals uniform annual general charge or groups of individuals is not very clear (b) Targeted rates (e.g. transport, open access services (c) Fees and charges such as libraries and parks are open

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to all). Also, where asset capacities are created to costs (“exacerbator or polluter pays”) is another accommodate growth and also improve existing levels fundamental economic principle applied to determine of service, the benefi ts of that capital expenditure the appropriate funding sources for different types of will accrue to both new developments and existing capital expenditure. The capital expenditures related to ratepayers. In such cases, costs need to be apportioned replacement and renewal of assets, and raising levels between the two groups. However, in doing so, it is of service arise primarily because of the need to serve important to recognise the fact that the depreciation the existing population. The need for the creation of and maintenance cost of all additional capacities will additional capacities of community facilities is caused fall upon all ratepayers (unless a decision is made to by the anticipated demand generated by the projected recover those costs by applying other fi nancing tools). growth of population and business activities in the City. If infrastructure capacities are not expanded, growth All these factors need to be taken into account when could cause considerable pressure on the existing allocating costs on the basis of benefi t distribution. service levels. Separate funding techniques are needed Because of the complexities involved in quantifying to allocate costs on the basis of exacerbator pays benefi t distribution, the application of benefi ciary pays principle. principle requires both careful analysis and professional judgment. The costs and benefi ts of funding the activity distinctly from other activities The period in or over which the benefi ts are As the benefi ts of the capital expenditures related to expected to occur replacement and renewal of assets and raising levels This is an important consideration to achieve of service are distributed among all rate payers, it intergenerational equity - the principle that costs of any is not practicable to identify the costs attributable to expenditure should be recovered at the time the benefi ts individuals, and charge them separately. of that expenditure accrue. This principle applies particularly to the allocation of capital expenditure which However, the developments that benefi t from the capital provides benefi ts over time. expenditures to create additional capacities for growth could be identifi ed. Separate funding techniques such Generally, infrastructure investments are lumpy and as development contributions, fi nancial contributions the assets created tend to have a very long economic and targeted rates are capable of allocating the costs life. Some of these investments are intended to be on the basis of the benefi ciary pays principle and maintained indefi nitely to a specifi ed level of service exacerbator pays principle. by continuous replacement and maintenance of their components. Often, the technological indivisibilities Separate funding of growth costs could prevent cross make it hard to increase the capacities incrementally. subsidisation of new developments by the existing Because of these practical reasons, the Council may population, and avoid unfair burden on them. In addition, create asset capacities to meet the demand that funding growth related activities distinct from other spreads over a long period which extends, in some activities improves transparency and accountability. cases, beyond the LTCCP time horizon. It could establish a closer link between the benefi ts received by new developments from the additional capacities created or the costs they have imposed on REVENUE AND FINANCING POLICY REVENUE The capacities thus created will benefi t the the Council. Transparency of cost of growth is important developments occurring over time until capacity created in giving correct cost signals to developers and the is fully utilised. The Council accepts that the cost of the eventual property buyers. This could contribute to excess capacity will have to be recovered over time allocative effi ciency of resources of the community. from later developments. This requires the adoption of a funding technique that could recover the costs over time from those who directly benefi t from the additional FUNDING SOURCES SECTION THREE capacities created. Separate funding methods such as development contributions and fi nancial contributions General rates and targeted rates are capable of recovering cost of growth over time. General rates are appropriate to distribute the cost of capital expenditures which benefi t all ratepayers, while The effects of the actions or inaction of individuals targeted rates could be applied to different groups of or a group contributing to the activity undertaken benefi ciaries. The allocation of costs to those who cause such

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Under section 16 (1) of the Local Government (Rating) Borrowings Act 2002, the Council may set a targeted rate for one or To preserve “intergenerational equity”, it is the Council more activities or groups of activities if those activities policy to spread the cost of capital expenditure over the or groups of activities are identifi ed in its funding impact useful life of the asset, by means of debt (except where statement as the activities or groups of activities for development contributions are levied to fund capital which the targeted rate is to be set. expenditure driven by growth). The Council will maintain debt at a prudent level in accordance with the Liability The Council may opt to fund capital expenditure from Management and Investment Policy. general rates and targeted rates where this is in keeping with the principles of prudent fi nancial management Borrowing is not an appropriate source of funding for and the funding considerations set out in the Local large capital budgets related to growth as the debt Government Act 2002. However, proceeds from rates service burden will fall on all ratepayers. Funding of collected for depreciation are initially applied to fund debt service costs from rates could lead to higher rates, renewals with any surplus being used for servicing debt. causing fi nancial strain particularly on low income ratepayers. As the amounts required to meet the growth related capital expenditures are substantial and lumpy, In addition, high level of debt involves implications for property rates are not a feasible option to fund growth prudential management of the Council fi nances. Debt upfront. Under general rates, the cost of growth will will expose the Council to interest rate risks, and the be distributed among all ratepayers, both current and management of such risks may involve additional costs. future. This raises affordability, equity and effi ciency With the increase in debt, the Council’s perceived issues. It is not considered fair and equitable to ask the credit risk may increase raising the interest premium current ratepayers to fund community facilities provided (spread over the benchmark interest rate) demanded for the future users. by the lenders. This could also result in increasing the borrowing costs. General rates also lack transparency as they are collected to fund a bundle of services, and they do not There are prudential limits placed on the overall level reveal the costs caused by growth. This could mask the of Council borrowings. Any borrowing to fund the cost cost signals to developers, as property rates are paid by of growth will pre-empt the capacity to borrow for other property owners over time. Therefore, rates funding fail purposes. to ensure effi ciency of resource allocation in the City. Asset Sales Targeted rates are generally paid over time by Proceeds from asset sales are not an adequate regular ratepayers and therefore they may not be suffi cient source of adequate revenue which is predictable and to fund large capital expenditures upfront. Also, the certain. Should any asset sale occurs, the proceeds application of targeted rates may not give proper costs from it will go to repay debt, unless the Council signals to developers to enable them to assess the full specifi cally directs that the funds be put to another use. cost of new developments. Since the recovery of the cost of growth needs to be tied to land, targeted rates will have to be set in relation to one or more categories Grants and Subsidies REVENUE AND FINANCING POLICY REVENUE of rateable land defi ned in terms of one or more of the The amounts received from these sources are not matters listed in Schedule 2 of the Rating Act. This suffi cient to cover the cost of infrastructure capacities could be diffi cult when developments are scattered in designed to meet growth demand. The Council will different parts of the City. use subsidies from NZ Transport Agency and other organisations to cover a proportion of the capital and Fees, charges, interest income and dividends from maintenance costs of roads and other infrastructure. The shortfall needs to be met from other sources. investments SECTION THREE Revenue from these sources is not adequate to fund the cost of infrastructure on a regular basis. There is Development Contributions and Financial no certainty of the amounts available and they are not Contributions predictable. The Local Government Act 2002 allows the Council to require development contributions to recover the Council’s

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identifi ed cost of growth. Under the Resource tagged by the Council to be applied for a specifi c Management Act 1991, the Council can levy fi nancial purpose or area of benefi t (Non-Restricted Funds). contributions to mitigate the effects of development activity. Any Other Source: The Council may use funds received from any other source for the purpose of meeting capital Both sources are available to fund the growth related expenditure or adopt alternative methods of producing infrastructure effi ciently in advance to facilitate or providing the services needed by the community in individual developments to occur over time in accordance with the Local Government Act 2002. accordance with the Council’s growth management strategy. They also enable the Council to maintain The overall impact of the funding mechanisms acceptable levels of service consistently across the City, selected on the community wellbeing without compromising the current service levels. The adoption of two different approaches to fund different types of capital expenditures can contribute to These contributions are upfront lump sum payments the overall wellbeing of the community. It can achieve by new developments. Unlike other funding sources, fairness, equity and effi ciency in funding capital the application of development contributions and expenditures. The use of borrowings and general fi nancial contributions to fund capital expenditure rates to fund the capital expenditures that benefi t the related to growth can give proper cost signals to existing ratepayers can minimise the burden on new developers to enable them to assess the full cost of their developments, while development contributions and developments. fi nancial contributions can minimise the burden of growth on the current ratepayers. The development contributions and fi nancial contributions are founded on two economic principles: Development contributions and fi nancial contributions that costs should be borne by those parties who enable the Council to provide acceptable levels benefi t from the activities (“benefi ciary pays” principle); of service consistently across the City, without and by those who cause the need for incurring costs compromising the current service levels. They shift the (“exacerbator/polluter” pays principle). These methods burden of funding growth related capital expenditure are more effective in encouraging effi cient allocation of resources in the City. If developers are aware of away from the current ratepayers who have already paid the cost of the community facilities required for new for the existing service capacity, and who will still face developments in advance they can take those costs into the additional costs arising from increased depreciation account when making development decisions. and operating expenditure arising from the new facilities. The Council may apply development contributions and fi nancial contributions in preference to alternative The available evidence also suggests that development sources to fund the cost of growth in accordance with contributions as a funding tool has had no discernible the provisions in the Local Government Act 2002 overall negative effect on social and economic wellbeing and Resource Management Act 1991 respectively. It of the community. Overall, development contributions and may use any other forms of funding where the level of fi nancial contributions can contribute to the wellbeing of development contributions or fi nancial contributions will the present and future communities by providing a secure REVENUE AND FINANCING POLICY REVENUE not cover the full cost of capital expenditure incurred funding source. The details of funding cost of growth to meet growth, or where the Council considers it are presented in the Development Contributions and is more appropriate to adopt other funding sources. Financial Contributions Policy. These include, for example, lump sum contributions under the amendment introduced in 2006 to the Local Government (Rating) Act 2002 and infrastructure 2.2 OPERATING EXPENDITURE funding agreements with developers. The Council may Where expenditure does not create a new asset for SECTION THREE enter into infrastructure funding agreements where the future use, or extend the lifetime or usefulness of an Council considers it is in the best interest both parties. existing asset, it is classed as operating expenditure. Most of Council’s day-to-day expenditure comes Other sources into this category. The Council policy is to generate Special Funds: Special funds are funds which have suffi cient cash infl ow from revenue sources (including either been received by the Council from a third party to rates) to meet cash outfl ow resulting from operating be used in a specifi c way (Restricted Funds) or monies expenditure.

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Operating expenditure also includes the overhead At present, the Council uses the land value system to costs, which represent all costs except direct costs that set general rates. That is, the total rate requirement can be attributable to any of the activities identifi ed. arrived at through the Annual Plan process is Generally, overhead costs are incurred to support all apportioned to properties on the basis of their land other activities. The overhead costs allocated to an value. In determining which rating system is appropriate, activity or groups of activities are funded through the the Council considered the following: respective funding method applied to each activity or • Fairest for most people groups of activities. Unallocated overheads are funded • Easiest for people to understand from rates and external revenue where appropriate. • Effi cient for Council to administer Sources of funding • Supported by the public. In terms of section 103 (2) of the Local Government Act 2002, the following sources are available for the Council Rating differentials to fund operating expenditure: The Council has considered the level of benefi t from (a) General rates, including choice of valuation all of Council’s services and has attempted to identify system, differential rating and uniform annual any major differences in benefi t between different general charge categories of ratepayers.

(b) Targeted rates This is a diffi cult exercise as each individual ratepayer (c) Fees and charges uses, or benefi ts from, a slightly different mix of Council (d) Interest and dividends from investments services. Some people use libraries more than average, while others make greater use of the City’s roads. (e) Borrowings (f) Proceeds from asset sales Also, every ratepayer is a stakeholder in the future (g) Development contributions of Waitakere City and will therefore benefi t to some (h) Financial Contributions under the Resource extent from the improvement of the level of services Management Act 1991 and the range of services which make life pleasant and sustainable. (i) Grants and subsidies (j) Any other source. To achieve a fair distribution of the general rates compared to services utilised within the various How the Council uses these funding methods to fund categories of rateable land, and to maintain relative the operating expenditure are briefl y described below. equity in rating between individual properties, the general rates are levied at different rates in the dollar of General rates rateable value for different categories of land as defi ned The Council uses general rates as the main source in the Local Government (Rating) Act 2002. Currently, of funding of activities where individual or group of the Council applies the following differentials for the benefi ciaries (or “polluters”) cannot be identifi ed and calculation of general rates: the allocation of costs to them is not practicable or cost effective (i.e. public goods); or where public benefi ts Business sector differential

exceed the private benefi ts (directly or indirectly as On average, a business will make greater use of the AND FINANCING POLICY REVENUE positive externalities). In its decision making on general City’s wastewater, stormwater and roading services rating policies, including differentials, the Council has than residential ratepayers and will benefi t more from considered the factors set out in the Local Government work to improve town centres. This difference in benefi t (Rating) Act 2002. is calculated each year and is refl ected in the business sector differential. Choice of rating system

For the purpose of setting general rates, the Local The multi-unit differential SECTION THREE Government (Rating) Act 2002 allows the choice of the From a general rating perspective, a multi-unit property following bases: is a single rate account. Under the provisions of the Local Government (Rating) Act 2002, • The annual value of the property Council may charge each rating unit at least • The capital value of the property one Uniform Annual General Charge, and • The land value of the property. such a charge may be imposed on each

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separately used or inhabited part of the rating unit. each sub-sector. Following consultation, the When such a Uniform Annual General Charge is levied Council decided to retain the combined business on each separately used or inhabited property under a sector differential. land value based rating system, the Council will adjust (b) Some commercial properties (such as the differential factors and bands of land value to which some garages and dairies) are located in they apply. residential areas. The Council has considered the services provided to these businesses Stepped differential The Council recognises that under the land value relative to businesses in working or community system high value properties pay high rates. This is environments, and concluded that there is no particularly the case in Waitakere City where there justifi cation for applying a separate differential to is a wide range of land values with few high value these activities. properties. To achieve a fairer allocation of rates and (c) Some residential properties have limited to ensure that rates on high value properties are at commercial uses located within them (home least comparable with those in other cities, the Council occupations). Where a commercial use meets applies a stepped differential which reduces rates on properties above the average land value relative to what standards set out in the District Plan for noise they would be if rates were allocated based on land and other environmental effects, these properties value alone under a land value based rating system. are rated as residential properties. The Council recognises this issue but will continue to rate Special categories differential these properties as residential on the ground that: This differential is applied to some properties held for • most signifi cant home-based businesses do community purposes (such as reserves, halls, museums require resource consent to operate. In this and crèches) as long as there is no private profi t involved. case they will be charged commercial rates • it would be extremely diffi cult to identify home Farmland differential occupations where there is no requirement to This relates to the partial rates postponement in cases apply for a resource consent; and where the land value of farmland is affected by other • in addition to businesses in appropriate potential uses (such as commercial or industrial). The guidelines relating to rates postponement are set out in community and working environments, the the Rates Postponement Policy adopted in June 2004, Council wishes to support home occupations under the Local Government (Rating) Act 2002. as they reduce the need for people to travel to work and contribute to community diversity Calculation of the business sector differential and strength. Council has a business sector differential, which is set each year by assessing the expenditure that relates Allocating costs between the business and residential to the business sector. If no differential were in place, business sector rates would refl ect the total land value sectors occupied by the sector. The business sector differential only applies to rates funded services; for user-pays services no adjustment In most cases, the assessment of benefi ts to the is needed. The business sector differential is calculated REVENUE AND FINANCING POLICY REVENUE business sector has been based on an estimate of annually after taking into account the benefi ts accruing the costs of supplying a rates-funded service to the to that sector from the development of infrastructure business sector and the expert knowledge of those facilities in the urban areas (e.g. town centre working in the area. revitalisation, raising city image, roads, stormwater and wastewater services). Identifying the business sector Three issues arise with respect to the classifi cation of SECTION THREE businesses for the purpose of applying the business In each of the cases above, the analysis shows that sector differential. the proportion of benefi ts accruing to business sector (a) The Council has considered splitting the industrial is much higher than their share in the total value of the sub-sector and the commercial sub-sector for the rateable properties in the City. For all other services, purpose of calculating differentials. However there the Council’s view is that both sectors benefi t equally, or are technical diffi culties in distinguishing between that it is not practicable to obtain information that would the two sub-sectors and allocating costs across enable an accurate allocation of costs. Most services

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in this category produce indirect “public benefi ts” which powers and fl exibility in targeting rates to specifi c types enhance the City as a place to work, live and visit of property. Targeted rates could be levied on lands (for example community facilities, public libraries, the defi ned on the basis of use to which land is put, area of aquatic centre, and parks and reserves). land, location of land, the value of land and the provision The actual rates on individual properties in each sector or availability of Council services. Targeted rates may are calculated on the basis of the land values. The types be imposed as a uniform annual charge or differentially of costs to be allocated are: for different types of property uses. The Council may • Town Centre Revitalisation: 50 percent of this also apply targeted rates to fund any part of the cost of cost is allocated to the business sector, based activities which benefi t identifi able groups in the city. on Council’s determination that 50 percent of this service is to the business sector. Section 16 of the Local Government (Rating) Act 2002 provides that: • City image services in town centres: 50 percent of this cost is allocated to the business “A local authority may set a rate for a function if the sector, consistent with the funding of Town Centre function is identifi ed in its annual plan as a function for revitalisation. which a targeted rate may be set.” • Roading: Damage to the City’s roads caused by trucks is evaluated and charged to the business Targeted rates are set under Section 16 for the following sector. (Currently 60 percent of road maintenance activities. costs are due to trucks rather than cars). • Stormwater: Stormwater costs are allocated to the (a) Wastewater business sector based on an assessment of the proportion of commercial properties covered by Residential properties and multi-unit residential impermeable surfaces (which generate runoff). properties • Wastewater: Costs of wastewater are allocated to A targeted rate to be described as the Wastewater the business sector based on that sector’s use of Uniform Charge may be set as a fi xed charge on each water. separately used or inhabited part of a rating unit in the • External levies: External levies (e.g. levies by drainage area where sewer reticulation is available Auckland Regional Council, Museum of Transport to recover part of the costs of provision of the City’s and Technology, Auckland Regional Amenities wastewater service. Funding and Auckland Museum) are allocated on the basis of capital value. Business sector properties The proportion of the cost of wastewater to be met In view of the changes that have taken place in the City by the business sector will continue to be determined over the years, the cost allocations to the business by the sector’s proportion of total City water usage sector need to be reviewed. The Council may review as measured and recorded by meters and assessed this differential on an annual basis. periodically.

Uniform Annual General Charge (UAGC) A targeted rate calculated on the rateable land value of

The Council levies a Uniform Annual General Charge properties is levied for wastewater on business sector AND FINANCING POLICY REVENUE as a ﬁ xed amount per rating unit on all rateable properties. properties, multi-unit properties and other properties with separately used parts. Educational establishments and other non-rateable properties The Council sets the level of UAGC, as part of its Wastewater targeted rates are set differentially on the Annual Plan process, within the legal limit that the same basis as the general rate on the land value of

proceeds from the UAGC and other Uniform Annual non-rateable properties in the drainage area where a SECTION THREE Charges (excluding any wastewater Uniform Annual wastewater service is provided. The rates in the dollar Charge) do not exceed 30 percent of the total rates and will be calculated on the same basis as if the whole water revenue. wastewater rate requirement to be met from properties other than business sector Targeted rates properties had been calculated solely on The Local Government (Rating) Act 2002 provides wide land value.

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(b) Rural sewerage (f) Retroﬁ tting Housing Initiative

A targeted rate described as the Rural Sewerage A targeted rate described as the Retrofi tting Housing Charge to be set as a fi xed charge on all rating units Initiative is set as a Uniform Annual Charge based upon in the non-drainage area of the City as defi ned in the each separately or inhabited part of a rating unit that by Description of the Differential Rating System where agreement with the Council has received a repayable there are onsite wastewater systems that are scheduled loan advance to assist with the service provision of to be inspected and/or pumped out by the Council . The energy or similar retrofi tting initiatives. charge is set to recover the costs of implementation of the On-site Waste Systems Management Plan. Fees and charges The fi xed charge will be levied in respect of each on-site The Council impose fees and charges to recover either waste treatment system utilised in conjunction with the the full or a part of the cost of a variety of services particular rating unit. provided. These include, for example, the regulatory services such as issuing building consents and the Environmental monitoring provision of utilities such as water supply. A targeted rate to be described as the Environment Monitoring Charge is set as a fi xed charge on all rating Interest and dividends units in the Non-Drainage Area as defi ned in the The Council receives interest and dividends from Description of the Differential Rating System, including investments, and interest from special funds separately vacant land and properties with on-site waste treatment invested and sinking funds. Interest and dividends from systems which are not scheduled to be inspected and/or investments is regarded as general revenue. Interest on pumped out by the Council. The charge is set to recover special funds is credited back to the special funds and the costs of monitoring and addressing pollution of reinvested. watercourses. Grants and subsidies (c) Water supply The Council receives grants and subsidies from several sources to cover a part of the operating cost of certain A targeted rate set under Section 19 of the Local services such as roading, roadside vegetation control Government (Rating) Act 2002 for the quantity of water and litter and street cleaning. supplied, as measured and recorded by meter, at a fi xed charge inclusive of GST per cubic metre of water Borrowing supplied. Where the Council makes a grant to any organisation for an asset being constructed by that organisation, (d) Business Improvement Districts (BID) the Council may, at its discretion fund this grant from borrowing if the asset concerned would make a A targeted rate described as the Business Improvement contribution to community outcomes identifi ed. District (BID) rate, set differentially on the same basis as the general rate, and calculated on the rateable land Any other source value of business sector properties situated in the town The Council may use funds received from any source REVENUE AND FINANCING POLICY REVENUE centres identifi ed may be applied for the purpose of not mentioned here for the purpose of meeting promoting economic development in town centres. operating expenditure

(e) Rugby World Cup The details of funding methods of Council activities or groups of activities are presented in the ensuing section. A targeted rate described as the Rugby World Cup levy

SECTION THREE is set as a Uniform Annual charge based upon each separately or inhabited part of a rating unit.

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3 SUMMARY OF FUNDING SOURCES BY ACTIVITY

OPERATING EXPENDITURE ACTIVITY RATES LOANS SOURCES FEES AND CHARGES SUBSIDIES TARGETED ANY OTHER ASSET SALES ONTRIBUTIONS GRANTS AND RESERVES AND DEVELOPMENT DEVELOPMENT SPECIAL FUNDS C GENERAL RATES GENERAL AND FINANCIAL FINANCIAL AND Strategic Projects         Social and Cultural          Strategic Planning    Water Supply         Wastewater   Stormwater          Parks and Green Assets   Transport and Roads          Property   Cemetery          Solid Waste          Libraries          Emergency Services          Leisure          Aquatic Centre   Arts Events and   Communications Animal Welfare   Field Services   Consent Services   Resource Management    Testing Station   Quarry    INTERNAL SUPPORT SERVICES Chief Executive    Quality Assurance    REVENUE AND FINANCING POLICY REVENUE Finance         Maori Relationships    Democracy and Support          Human Resources    Information Management    Legal and Insurance    SECTION THREE Project Services    Customer Services    Service Management   

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CAPITAL EXPENDITURE ACTIVITY RATES LOANS SOURCES FEES AND CHARGES SUBSIDIES TARGETED ANY OTHER ASSET SALES ONTRIBUTIONS GRANTS AND RESERVES AND DEVELOPMENT DEVELOPMENT SPECIAL FUNDS C GENERAL RATES GENERAL AND FINANCIAL FINANCIAL AND

Strategic Projects    Strategic Planning    Water Supply   Wastewater   Stormwater      Parks and Green Assets       Transport and Roads      Property  Cemetery  Solid Waste   Aftercare   Libraries       Emergency Services  Leisure   Aquatic Centre  Public Affairs   Animal Welfare  Field Services   Consent Services   Testing Station   INTERNAL SUPPORT SERVICES Chief Executive   Democracy and Support   Information Management   Project Services   Service Management    REVENUE AND FINANCING POLICY REVENUE

Notes: Current major source = ; Current minor source =  Reserves and special funds include operating costs and renewals carried forward and expenditure from Council

SECTION THREE Loan funding for operating costs is for grants that are of a created reserves and restricted reserves. capital nature. Not all of these funding sources may be used in a particular Capital expenditure funded from rates refers to renewal year. In the event of activities being combined, the funding for capital expenditure which is funded by rating for depreciation those activities will also be combined. where applicable.

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4 REVENUE AND FINANCING the Council’s objectives arising from Council Policies, Strategies and Planning documents. POLICY BY MAJOR ACTIVITIES Costs and benefi ts, including transparency and accountability consequences, of funding Strategic 4.1 STRATEGIC PROJECTS Projects activity distinctly from other activities The Strategic Projects activity supports the strategic Where the services delivered by Strategic Projects are planning and decision-making functions to deliver largely public goods that generate positive externalities, strategic advice and results which advance the eco city it is diffi cult to isolate those who benefi t individually. vision and community outcomes. This activity includes Separate funding of such services is not practicable or developing detailed concepts for places and localities; cost effective. transit oriented development initiatives to a stage where implementation is assured; facilitating investment into However, where it is possible to identify those who the City; and developing enabling projects. directly benefi t from the activities undertaken or those who cause the Council to undertake such activities, the The Strategic Projects activity provides strategic application of separate funding tools could encourage response to initiatives, translating ideas, policy and effi cient use of resources within the City. The Council strategy into action plans for the delivery of community may use separate funding methods after consideration outcomes. The services focus on the formation and of the possible transaction costs. development of large scale complex projects and designing and maintaining oversight of the Council’s FUNDING SOURCES major economic development programme within the framework of Waitakere City’s sustainable development Operating Expenses objectives. Because of the public benefi ts generated by Strategic Projects, these activities are funded mainly from Community outcomes to which the activity general rates. Where benefi ts accrue to individuals primarily contributes or an identifi able part of the community, the Council Strategic Projects contributes primarily to the following may apportion a part of the costs to such groups, and community outcomes described in the LTCCP: Strong recover the cost through rates differentials or targeted Economy; Sustainable and Integrated Transport; rates as appropriate. Sustainable Environment; Waiora; Urban and Rural Villages. The Council may apply any of the funding sources available under section 103 (2) of Local Government Act 2002 to supplement the funding available from the Distribution of benefi ts between the community as sources already identifi ed. a whole, any identifi able part of the community, and individuals Capital Expenditure Generally, the benefi ts generated by Strategic Projects The cost of new assets, and replacement and renewal activity are distributed across the city socially, spatially of existing asset capacities will be funded mainly from and temporally. Some projects developed may generate borrowings and other legally available sources stated in

direct benefi ts to some sectors (e.g. certain types of this policy. AND FINANCING POLICY REVENUE businesses) or groups of individuals or geographic locations, but indirectly, whole community could benefi t. The capital expenditures on assets that create additional capacities to meet the demand resulting from Period in or over which the benefi ts are expected to the growth of the City may be funded from development occur contributions or fi nancial contributions. The Council The majority of the projects undertaken by Strategic may also adopt other appropriate sources available

Projects are long term, and the beneﬁ ts will accrue in under section 103 (2) of the Local Government Act SECTION THREE the long term. 2002.

Extent to which the actions or inaction of particular 4.2 SOCIAL AND CULTURAL STRATEGY individuals or a group contribute to the need to The Local Government Act 2002 mandates undertake the activity councils to promote social and cultural The Strategic Projects activity is undertaken to facilitate wellbeing. The Social and Cultural

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Strategy activity undertakes this task with a strong Extent to which the actions or inaction of particular focus on collaborating with our communities, the non individuals or a group contribute to the need to governmental organisation (NGO) sector, and central, undertake the activity regional and local government colleagues and partners Some activities are undertaken to mitigate negative in order to achieve desired community wellbeing effects of the actions or inactions of individuals or outcomes in our City. groups of individuals. For example, family violence prevention, community safety, youth and drugs and The Social and Cultural Strategy activity includes the alcohol minimisation programmes are undertaken following: largely because of the negative effects of actions of • Social and Cultural Strategy – the development of some individuals. Similarly, some place based and policy and strategy; provision of strategic analysis, ethnicity based activities are undertaken to address the advice and advocacy; and the development issues specifi c to such groups. and maintenance of strategic relationships and partnerships focused on social and cultural The socio-economic deprivation experienced by wellbeing issues. some segments of the community and the social and • Safe Waitakere – the development of plans, policies, economic inequalities in Waitakere are also factors that partnerships, projects and programmes that drive the activities undertaken by Social and Cultural deliver community safety outcomes in the City in Strategy. accordance with local and national strategies. Costs and benefi ts, including transparency and Community outcomes to which the activity accountability consequences, of funding the Social primarily contributes and Cultural Strategy activity distinctly from other This activity contributes primarily to the following activities community outcomes described in the LTCCP: Urban The Social and Cultural Strategy activity is largely and Rural Villages; Strong Communities; Toiora; a public good which benefi t the entire community. Whaiora; and Working Together. Separate funding of this activity may not be practicable or cost effective. There are individuals and groups of Distribution of benefi ts between the community as individuals who directly benefi t from some of some a whole, any identifi able part of the community, and of the programmes undertaken; these programmes individuals generate indirect benefi ts to the wider community. This activity contributes to the promotion of the social, However, separate funding of these programmes economic, environmental and cultural wellbeing of through user pays could create a disincentive to use the communities in the present and for the future and to the services provided. Hence, separate funding of Social strategic goals of the Council. Generally, the benefi ts and Cultural Strategy activity is considered undesirable. are distributed, directly and indirectly, across the city socially, spatially and temporally. Collective funding of the Social and Cultural Strategy through rates is important to promote the community’s Some activities could generate direct benefi ts to full participation in community life at all levels, regardless of their ability to pay. It will contribute to the

REVENUE AND FINANCING POLICY REVENUE some sectors, groups of individuals or locations, but the positive externalities generated by them indirectly realisation of the community outcomes identifi ed and benefi t the whole community. have a favourable overall impact on the wellbeing of the community. Period in or over which those benefi ts are expected to occur FUNDING SOURCES Social wellbeing has a focus on both the current period SECTION THREE and the long term, and the activities are reviewed and Operating expenditure refi ned in the light of emerging trends in the social, Because of the public benefi ts generated, the costs economic, environmental and cultural wellbeing. associated with the Social and Cultural Strategy Therefore, benefi ts accrue both in the short and the long activities are funded mainly from general rates, central term. government transfers and other external sources.

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The Council may apply any of the funding sources on both the short and the long term, and it is updated available under section 103 (2) of Local Government and reviewed in the light of emerging trends in the Act 2002 to supplement the funding available from the social, economic, environmental and cultural wellbeing. sources identiﬁ ed. Therefore, the beneﬁ ts accrue both in the short and in the long term.

4.3 STRATEGIC PLANNING Extent to which the actions or inaction of particular Strategic Planning activity supports the Council by individuals or a group contribute to the need to identifying and measuring community outcomes, undertake the activity developing and coordinating policies, strategies, plans Some activities are undertaken to address the effects and projects that will advance Waitakere’s sustainable of actions and inactions of people at global (e.g. global development in the short and long term. In addition, this warming), national (e.g. sustainability) and local level activity provides policy advice and guidance, engages in (e.g. growth and its effects). These activities include partnering and advocacy, and coordinates operational environmental strategy; sustainable management, urban programmes. design and development; and the transport strategy. The Strategic Planning activity covers the following areas of work: Some activities are undertaken because of the actions • Strategic Framework and Research; of the central government (e.g. legislative changes); • Environment Strategy; policy decisions made at regional level (e.g. growth • Sustainable Management and Urban Design and management policies, travel demand management). Development; • Economic Development Strategy; Other Strategic Planning activities such as LTCCP is • Transport Strategy; and driven primarily by the requirements of the principal • Strategic Governance. legislations governing local government (e.g. Local Government Act 2002 and Resource Management Act Community outcomes to which the activity 1991). They also give effect to the Council’s principles primarily contributes and commitments for policy making. These include the Strategic planning primarily contributes to the following 27 principles of Agenda 21, the Aalborg commitments, community outcomes described in the LTCCP: Green the New Zealand Government’s Sustainable network; Strong communities; Strong economy; Development Programme of Action Principles for Policy Sustainable and integrated transport; Sustainable Making. environment; Toiora; Urban and Rural Villages; Whaiora; Nga Manukura-Maori leadership; and Working Costs and benefi ts, including transparency and together. accountability consequences, of funding the Strategic Planning activity distinctly from other Distribution of benefi ts between the community as activities a whole, any identifi able part of the community, and From a cost allocation and recovery perspective, the individuals services under strategic planning are largely public Generally, the benefi ts generated by Strategic Planning goods that generate positive externalities, benefi ting are distributed across the City socially, spatially and the entire community. It is diffi cult to isolate those who

temporally. However, some activities could generate benefi t individually, and therefore, separate funding in AND FINANCING POLICY REVENUE direct benefi ts to some sectors or groups of individuals, the form of user pays is not practicable or cost effective. but indirectly the whole community could benefi t. For example, economic development activities are intended Collective funding of the strategic planning process to promote business growth in the City; and business is more effi cient and important in promoting the growth leads to employment and income growth which community’s full participation in community life and are wider benefi ts accruing to the whole community. the planning process at all levels, regardless of their

However it may not be practicable to identify these ability to pay. It will contribute to the realisation of the SECTION THREE groups and measure the proportion of beneﬁ ts accruing community outcomes identiﬁ ed and have a favourable to them. overall impact on the wellbeing of the community.

Period in or over which beneﬁ ts are expected to Separate funding may be applied to occur recover the costs of the activities with the Strategic planning is an ongoing process that focuses characteristics of private goods. However,

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user charges should not be a disincentive to the use of Community outcomes to which the activity the services which could generate wider social benefi ts. primarily contributes The water supply activity contributes primarily to the FUNDING SOURCES following community outcomes described in the LTCCP: the Green Network, Strong Communities, Strong Operating expenses Economy, Sustainable Environment, Urban and Rural A major part the strategic planning activities have public Villages, and Waiora. goods characteristics and also they generate positive externalities; therefore, these costs may be funded Distribution of benefi ts between the community as mainly from property rates. a whole, any identifi able part of the community, and individuals Where benefi ts accrue to an identifi able part of the Reticulated water supply is a private good that directly benefi ts those who are connected to the network. Water community, the Council may apportion a part of the service also benefi ts the community as a whole through costs to such groups, and recover the cost through the maintenance of public health standards and the rates differentials or separate funding mechanisms safety standards for the fi re-fi ghting service. such as targeted rates. For example, the Council

may allocate a part of the costs related to economic The capital expenditures incurred on replacement development activity and transport strategy activity to and renewal of existing asset capacities or clearing the non-residential sector as a whole by applying rates of backlog benefi t the current ratepayers, while differentials or some form of targeted rate. the additional capacities created to meet the demand generated by growth primarily benefi t new The Council may also apply user charges for some of developments. If such capacity augmentations result the Urban Design and Development work in order to in raising the levels of service, a part of the benefi ts recover the costs. This includes, for example, advice will accrue to existing ratepayers as well. Both groups to external parties on urban design. Revenue may be of benefi ciaries could be identifi ed for the purpose of collected through consents. funding capital expenditure. A small part of the costs is funded by transfers received Period in or over which those benefi ts are expected from the central government or government agencies. to occur For example, the New Zealand Transport Authority The provision of potable water supply is essential for provides a small contribution to the Transport Strategy public health, and it is an ongoing long term activity. activity. Generally, major water supply assets have a long expected economic life extending to several decades. The Council may apply any of the funding sources Hence, the benefi ts of water supply network accrue over available under section 103 (2) of Local Government the long term. Act 2002 to supplement the funding available from the sources identifi ed. Extent to which the actions or inaction of particular individuals or a group contribute to the need to Capital Expenses

REVENUE AND FINANCING POLICY REVENUE undertake the activity The Council may fund capital expenditure from Water supply service does not arise because of borrowings and other appropriate sources available the negative effects of the actions or inactions of under section 103 (2) of the Local Government Act 2002. individuals. Generally, individuals or groups in urban areas are unable or unwilling to undertake the provision 4.4 WATER SUPPLY of this service as a stand alone activity because of Water supply activity involves delivery of service, the very high capital and operating costs. The Council SECTION THREE management and maintenance of assets; and capital undertakes the supply of water as a single network to works on replacement and renewal of assets, clearance meet the total demand in the City and to maintain a of backlog, improvement of levels of service and speciﬁ ed level of service across the City. creation of additional capacities to meet increasing demand. Water is purchased in bulk from Watercare The growth of population and businesses in the city Services Limited, with the Council unit, Ecowater, drives the need for expanding the capacities of the managing the water distribution network for the City. water supply network in the City as a whole. This is

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necessary to maintain levels of service required to and renewal of assets, clearing backlog and raising the meeting the health and fi re safety purposes. levels of service arise primarily due to the need to serve the existing population; and the allocation of these costs These activities are also undertaken to meet the to current ratepayers could encourage them to use statutory requirements arising from: water more effi ciently. • Local Government Act 2002 • Health Act 1956 The new developments place additional demand on the city’s water supply network. Separate funding of the • Health (Drinking Water) Amendment Act 2007 additional capacities provided for growth could send • Resource Management Act 1991. proper cost signals to developers. Separate funding is effi cient, transparent and effective in managing the Costs/benefi ts, including transparency and demand for water supply. This is also considered to be accountability consequences, of funding activity fair and equitable. distinctly from other activities Water supply is a private good, and therefore, it is FUNDING SOURCES possible for the Council to fund both operating and capital expenditures of the water service distinctly from Operating expenditure other activities. Funding water supply distinctly from The considerations stated above suggest that the most other activities enables the Council to send appropriate appropriate funding method for water supply is user cost signals to improve transparency and accountability; pays. The Council charges according to the volume of and these encourage effi cient use of resources within a water supplied, in the form of a targeted rate, under the community. Separate funding of operating expenditure can directly infl uence the behaviour of water users, provisions of the Local Government (Rating) Act 2002. and encourage effi cient use of water generating wider environmental, social and economic benefi ts to the Capital expenditure community in the long term. Cost of replacement and renewal of existing asset capacities, clearing of backlog or enhancing the level Charging for water according to the volume of water use of service may be funded mainly from borrowings and ensures that the costs of water supply infrastructure and other appropriate sources available under section 103 maintenance are allocated according to the degree of (2) of Local Government Act 2002. benefi t derived by private consumers. The capital expenditures on assets that create However, the adoption of full user pays approach could additional capacities to meet the demand resulting raise issues concerning affordability – ability to pay. from the growth of the city may be funded mainly from An assessment of the funding options available has development contributions or fi nancial contributions revealed that whatever the funding approach adopted, (including developer agreements). Where necessary, there is likely to be potential confl icts between the the Council may also adopt other appropriate sources environmental, economic and cultural objectives on available under section 103 (2) of the Local Government the one hand and the social objectives on the other. Act 2002. These funding details are presented in the

Any unintended adverse effect may be addressed by development contributions and ﬁ nancial contributions AND FINANCING POLICY REVENUE adopting supplementary measures. policy.

Adoption of the user pays approach to fund the 4.5 WASTEWATER operating cost of water service is effi cient, transparent The Council is required to provide wastewater and effective in managing the demand for water supply. service for properties in the urban area as a statutory It also prevents the transfer of costs from private benefi ciaries to the community. These benefi ts outweigh requirement under the Auckland Metropolitan Drainage SECTION THREE the transaction costs involved in adopting user pays. Act 1961.

Similarly, the funding of capital costs on the basis Wastewater management is essential of those who beneﬁ t from them or those who cause to ensure public health, and to minimise them could also improve resource allocation within the the adverse environmental impact community. The capital costs related to replacement of wastewater overﬂ ows and the

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consequences of contamination of properties, streams Wastewater service minimises the negative effects and parks. Wastewater activity involves service of the discharge of wastewater on the community as delivery, management and maintenance of assets; and a whole. The collection, treatment and disposal of capital works on replacement and renewal of assets, wastewater protect public health and the environment clearance of backlog, improvement of levels of service from the potential negative effects of unhygienic and creation of additional capacities to meet increasing disposal of wastewater. demand. The Council invests in wastewater management assets Currently the Council provides wastewater service to all for replacement and renewal, clearance of backlog, residents and businesses in the wastewater serviced improvement of levels of service and creation of area of the City at specifi ed levels of service. The additional capacities to meet the demand resulting from Council’s wastewater service areas cover about ninety growth. percent of the properties in the City. While replacement and renewal of existing asset Those remaining properties in the rural areas rely on capacities or clearing of backlog benefi t the current on-site treatment and disposal systems. Waitakere City ratepayers, the additional capacities created to meet Council provides a three yearly pump out service for the demand generated by growth primarily benefi t these systems, but ownership and maintenance remain new developments. If such capacity augmentations with the property owner. also result in raising the levels of service, a part of the benefi ts will accrue to existing ratepayers as well. Community outcomes to which the activity primarily contributes Period in or over which those benefi ts are expected Wastewater activity primarily contributes to the following to occur community outcomes described in the LTCCP: Green The provision of wastewater services is essential for Network, Strong Communities, Strong Economy, public health, and therefore it is an ongoing long term Sustainable Environment, Urban and Rural Villages and activity. Generally, major wastewater assets have a Waiora. very long expected economic life extending to several decades. Hence, the benefi ts of water supply network Distribution of benefi ts between the community as accrue both in the short and the long term. a whole, any identifi able part of the community, and individuals Extent to which the actions or inaction of particular Wastewater service is a private good that directly individuals or a group contribute to the need to benefi ts those who are connected to the network. The users can be identifi ed and charged for the use of the undertake the activity service. Wastewater generation is a negative effect of water use for domestic and business purposes. The discharge of Inner area drainage services: Properties that are a part of the water used causes environmental pollution connected to the system derive a benefi t because all affecting public health and sanitation. Individuals and wastewater generated by the property can be treated organisations can take steps to decrease the use of and disposed of through the network. wastewater services. Generally, high water users tend

REVENUE AND FINANCING POLICY REVENUE to place a higher than average demand on the system Outer area septic tanks: As the sewerage capacity. These negative effects of the actions and infrastructure does not extend to the outlying parts of inactions of water users create a necessity to provide the City, residents and businesses in these parts of wastewater service. the City do not have the option of using the wastewater network service. There are a few alternative methods of The collection, treatment and disposal of wastewater wastewater treatment available. These options include are essential to protect public health. The growth of SECTION THREE on-site systems, composting and electric toilets. population and businesses in the City drives the need for expanding the capacities of the wastewater service Most residents in the outer area have chosen the option network in the City as a whole. This is essential to of on-site systems. The majority of residents who have maintain the levels of service required. septic tanks derive signiﬁ cant private beneﬁ ts from the septic tank clean out service offered by the Council The Council is also required to provide a wastewater through a private contractor. service for properties in the urban area as a statutory

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requirement under the Auckland Metropolitan Drainage • separate sewerage rate Act 1961. Under the Local Government Act 2002, it • uniform annual charge must carry out “Assessments of Water and Sanitary • pan charge. Services” and under the Health Act 1956 must “improve, promote and protect public health within its district”. These mechanisms can be applied to design targeted This activity must also meet the requirements of the rates under the Local Government (Rating) Act 2002. Resource Management Act 1991, and the Building Act However, these methods also cannot precisely match 2004. the wastewater operating costs to the volume of wastewater discharged to the system. Costs/benefi ts, including transparency and accountability consequences, of funding activity Outer area septic tanks: The most effective way of distinctly from other activities achieving the allocation of costs on the basis of polluter pays principle would be to bill onsite wastewater system Operating expenditure owners separately for pump-out costs and to recover Separate funding of operating expenditure would other costs that cannot be allocated to users through benefi t both the wastewater service users and the wider rates. The benefi ts of separate billing could exceed the community because it: administrative costs involved. • Keeps the burden of negative effects on those who produce the discharges in line with the exacerbator- The adoption of a full user pays approach may also pays principle raise issues concerning affordability – ability to pay. • Ensures that the costs of the reticulated network An assessment of the funding options available for maintenance and construction are carried by those water services has revealed that whatever the funding who use wastewater services the most approach adopted, there is likely to be potential confl icts between the environmental, economic and cultural • Directly infl uences the behaviour of individuals and objectives on the one hand and the social objectives on organisations and thereby promote recycling and the other. reuse

• Gives people the opportunity to reduce the costs Capital expenditure they incur by varying the demands they place on the Similarly, the funding of capital costs on the basis of system. benefi t distribution or polluter pays principle improves resource allocation within the community. The allocation The effi cient use of water and wastewater service will of capital costs on replacement and renewal of assets, generate wider environmental, social and economic clearing backlog and raising the levels of service benefi ts to the community in the long term. However to current ratepayers could encourage them to use there are some practical diffi culties and legal issues wastewater service more effi ciently. involved in separate funding of wastewater. Separate funding of the additional capacities Inner area drainage services: provided for growth could send proper cost signals to The most effective method of allocating costs according developers. It prevents the transfer of costs from private to the polluter pays principle would be to introduce benefi ciaries to the community. Separate funding is REVENUE AND FINANCING POLICY REVENUE charges based on the actual outfl ow of wastewater effi cient, transparent and effective in managing the (volumetric charge system). However, the installation demand for wastewater service. This is also considered of separate meters for measuring wastewater outfl ow to be fair and equitable. from households is not cost-effective at present due to technological limitations. An alternative approach would FUNDING SOURCES be to apply a proportion of water used as a proxy for the

volume of wastewater discharged from a property. Operating expenditure SECTION THREE

A volumetric charging system on wastewater is not a Inner area drainage services: Given the legal, funding method that is legally available to the Council technical and institutional constraints explained unless it forms a company to run its wastewater before, wastewater is currently funded services. The other legally available separate funding through the rating system. A targeted mechanisms include, for example: rate to be described as the Wastewater

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Uniform Charge may be set as a fi xed charge on each Act 2002. These funding details are presented in the separately used or inhabited part of a residential rating development contributions and fi nancial contributions unit in the drainage area where sewer reticulation is policy. available to recover part of the costs of provision of the City’s wastewater service. Non residential and business 4.6 STORMWATER properties are charged as a rate in the dollar on land The effective management of stormwater runoff value. is essential to protect the health and safety of the community, minimise property damage and protect the Outer area septic tank: The costs of the activities natural environment. This activity manages stormwater, related to the disposal of sewerage are recovered as a including streams, water courses and a piped system targeted rate set at a fi xed rate on all properties in the within the City while providing more sustainable parts of the City where there is no sewer reticulation solutions (including riparian restoration) in mitigating under the provisions of the Local Government (Rating) fl ood hazards. It also manages stormwater quality Act 2002. treatment.

A targeted rate described as the rural sewerage charge The Council focuses on sustainable solutions to be set as a fi xed charge on all rating units in the non- to stormwater management problems such as drainage area of the City as defi ned in the Description identifi cation and maintenance of overland fl ow paths of the Differential Rating System where there are and restoration of stream banks. on-site waste treatment systems that are scheduled to be inspected and/or pumped out by the Council. The Community outcomes to which the activity charge is set to recover the costs of implementation of primarily contributes the on-site waste systems management plan. This activity contributes primarily to the following community outcomes described in the LTCCP: Green The fi xed charge will be levied in respect of each on-site Network, Strong Communities, Strong Economy, waste treatment systems utilised in conjunction with the Sustainable Environment and Urban and Rural Villages. particular rating unit. Distribution of benefi ts between the community as Environment Monitoring a whole, any identifi able part of the community, and A targeted rate described as the Environment individuals Monitoring Charge is set as a fi xed charge on all From a cost allocation and recovery perspective, the rating units in the non-drainage area as defi ned in the stormwater activity delivers a mix of private and public Description of the Differential Rating System, including goods. There are specifi c benefi ts to those properties vacant land and properties with on-site waste treatment which are more prone to the effects of stormwater systems which are not scheduled to be inspected and/or fl ows. For example, stormwater management as part pumped out by the Council. The charge is set to recover of the Project Twin Streams benefi ts the properties in the costs of monitoring and addressing pollution of the catchment area while at the same time generating watercourses. environmental benefi ts to the wider community. Thus, the benefi ts of stormwater management accrue to both

REVENUE AND FINANCING POLICY REVENUE Capital expenditure individuals and the wider community. Cost of replacement and renewal of existing asset capacities, clearing of backlog or enhancing the level of The capital expenditures incurred on replacement service may be funded from mainly from borrowings and and renewal of existing asset capacities or clearing other appropriate sources available under section 103 of backlog benefi t the current ratepayers, while (2) of Local Government Act 2002. the additional capacities created to meet the demand generated by growth primarily benefi t new SECTION THREE The capital expenditures on assets that create developments. If such capacity augmentations also additional capacities to meet the demand resulting result in raising the levels of service, a part of the from the growth of the City may be funded mainly from benefi ts will accrue to existing ratepayers as well. development contributions or fi nancial contributions (including developer agreements). Where necessary, Period in or over which those benefi ts are expected the Council may also adopt other appropriate sources to occur available under section 103 (2) of the Local Government The provision of stormwater management service is

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essential for public health and safety, and therefore 2002, the Local Government (Auckland) Amendment it is an ongoing long term activity. Generally, major Act 2004, Resource Management Act 1991, Waitakere stormwater assets have a very long expected economic Ranges Heritage Areas Act 2008, Hauraki Gulf Maritime life extending to several decades. Hence, the benefi ts Park Act 2000 and Building Act 2004. of stormwater network accrue both in the short and the long term. Costs/benefi ts, including transparency and accountability consequences, of funding activity Extent to which the actions or inaction of particular distinctly from other activities individuals or a group contribute to the need to undertake the activity Operating expenditure These activities have arisen mainly due to the negative Stormwater management activity represents a mixture effects of actions or inaction of residents. In part, they of private and public goods; and separate funding of are required to cope with the effects of growth in the the operating costs of private goods could reduce the City. burden on ratepayers, and send cost signals to those who cause the need to undertake this activity. However, Flood Prevention: The need for fl ood prevention there are several major practical and legal problems is brought about by urbanisation, which alters the involved in adopting a user pays approach. natural fl ow of water. The construction of impermeable surfaces (roofs, parking areas, roads etc.) generates Capital expenditure more run-off than the natural rate. Private individuals, The capital costs related to replacement and renewal commercial and industrial properties cause the need of assets, clearing backlog and raising the levels of for (and receive the benefi t of) drainage systems when service arise primarily due to the need to serve the existing population; and the allocation of these costs they build impermeable surfaces. The higher the ratio of to current ratepayers could reduce the burden on new impermeable to permeable surface area, the greater will developments. be the amount of run-off. The new developments place additional demand on the Some of the costs associated with fl ood prevention city’s wastewater service network. Separate funding are as a result of run-off from community facilities and of the additional capacities provided for growth could assets such as bridges, roads and utility services. send proper cost signals to developers. It prevents the transfer of costs from private benefi ciaries to the Pollution control: Approximately 60 percent of the community. Separate funding is effi cient, transparent expenditure associated with pollution control is required and effective in managing the demand for water and because of pollution caused by motor vehicles. The wastewater service. This is also considered to be fair remainder is more general urban pollution from plastic and equitable. litter, pet and livestock faeces and septic tanks in the rural areas. FUNDING SOURCES The growth of population and businesses in the Operating expenditure City drives the need for expanding the capacities of Currently it is not possible to allocate any costs to motor the stormwater service network in the city, without

vehicle users or to private properties on the basis of AND FINANCING POLICY REVENUE compromising the levels of service required. The impact. The only mechanism available for levying motor development of residential properties, commercial vehicle users would be through increasing the petrol and industrial properties cause the need for drainage tax or road user charges – however the Council has no systems when they build impermeable surfaces. control over this as central government sets the petrol tax and charges. The collection, treatment and disposal of stormwater

are essential for protecting public health and For these reasons, apart from the share of capital costs SECTION THREE community safety. The Council undertakes stormwater allocated to developers, all operating costs will continue management to serve the whole city as a single network to be allocated to the community as a whole through and to maintain a speciﬁ ed level of service. rates, with the business sector paying a higher proportion of costs than would be Undertaking these activities also meets the statutory allocated on land value alone. requirements arising from the Local Government Act

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Capital expenditure private goods (i.e. they are rival in that one club’s use Cost of replacement and renewal of existing asset will affect another club’s use, and excludable because it capacities, clearing of backlog or enhancing the level of is possible to prevent clubs and associations from using service may be funded from mainly from borrowings and sports fi elds for organised sport). other appropriate sources available under section 103 (2) of the Local Government Act 2002. Sports fi elds also generate a range of indirect benefi ts to the community as a whole. These include: The capital expenditures on assets that create • Sports fi elds form an important part of public open additional capacities to meet the demand resulting from space and generally improve the amenity of the City; the growth may be funded mainly from development • When sports fi elds are not used by organised contributions or fi nancial contributions (including groups, the public use them on a casual basis for developer agreements). Where necessary, the Council walking, jogging, and casual sport. This help create may also adopt other appropriate sources available a healthy community under section 103 (2) of the Local Government Act 2002. These funding details are presented in the • Many of the users of these facilities are the City’s development contributions and fi nancial contributions youth. The community as a whole benefi ts from policy. youth involvement in sports.

The Council may fund some projects such as Project Sometimes parks are also used for commercial Twin Streams from external sources. purposes that generate private beneﬁ ts.

The community benefi ts from the ecological role (for 4.7 PARKS AND OPEN SPACES example as a natural fi lter of stormwater) that parks The Council is involved in providing parks and open perform and the enhanced attractiveness provided to spaces for the enjoyment and wellbeing of residents. the City. Because of these reasons, the public benefi ts Parks and open spaces play an important role in the are believed to be higher than the private benefi ts of image of the City and the quality of life for its residents. parks. The provision of quality open space for both active sports and quiet areas for passive use contributes With the growth of population and economic activities in signifi cantly to the wellbeing of the city. These activities the City, the Council invests in parks and open spaces support the Council’s eco city vision and delivery, to meet the increasing demand over time. While the enhancing the community’s quality of life and creating additional asset capacities created benefi t primarily identity in local neighbourhoods. the growth community, they also generate temporary benefi ts to current ratepayers until the additional Community outcomes to which the activity capacities created are fully utilised. primarily contributes This activity contributes primarily to the following Period in or over which those benefi ts are expected community outcomes described in the LTCCP: Green to occur Network, Strong Communities, Waiora and Toiora. Parks and open spaces assets are managed, renewed, maintained and in perpetuity. The benefi ts of these

REVENUE AND FINANCING POLICY REVENUE Distribution of benefi ts between the community as assets accrue both in the short and long term. a whole, any identifi able part of the community, and individuals Extent to which the actions or inaction of particular Parks and open spaces activities are, generally, open individuals or a group contribute to the need to access destination services that benefi t the community undertake the activity as a whole. Therefore, parks and open spaces are The requirement for land asset ownership is primarily generally considered to be a mixture of both public and guided by the need to provide open space for equitable SECTION THREE private goods. People benefi t from the use of parks public recreational use and environmental protection/ for leisure and recreational purposes, which in turn, outcomes. produces benefi t to the community as a whole. The growth (population and household growth) in Parks include sports fi elds that provide signifi cant the City is one of the key macro drivers for the parks private benefi ts to the associations and clubs using and open spaces and related infrastructure. The those fi elds. Sports fi elds have the characteristics of specifi c location of the services such as playgrounds,

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sportsfi elds and walkways is based partly on the need and renewal of existing asset capacities or clearing for geographic distribution and the accessibility of these of backlog benefi t the current ratepayers, while particular assets to the community. the additional capacities created to meet the demand generated by growth primarily benefi t new Parks and open spaces and parks infrastructure developments. If such capacity augmentations also activities meet statutory requirements arising from: result in raising the levels of service, a part of the • Reserves Act 1977 benefi ts will accrue to existing ratepayers. • Resource Management Act 1991 The allocation of costs separately to those who • Local Government Act 2002 cause such costs or benefi t from them could send • Waitakere City Council District Plan. appropriate cost signals, and improve transparency and accountability; and these encourage effi cient use of Costs/benefi ts, including transparency and resources within a community. It prevents the transfer of accountability consequences, of funding activity costs from new developments to the current ratepayers distinctly from other activities who have paid for their fair share. Funding of growth related capital expenditures from other forms of capital Operating expenditure expenditure is therefore considered to be fair and Parks and open spaces provide private benefi ts and it equitable. is possible to identify those who directly benefi t from the use of parks and open spaces. However, it would FUNDING SOURCES not be desirable or cost effective to have separate funding of operating expenditure related to this activity, Operating expenditure except in instances where parks are used exclusively The considerations stated above could best be met by for commercial purposes. Charging for the community funding operational costs associated with parks and use of parks confl icts with the strategic objective of open spaces mainly from rates. However, where parks promoting community wellbeing. are used for commercial activities, a suitable fee may be charged. This refl ects the private benefi ts derived with There are specifi c activities which could be considered little public benefi t. for separate funding. It is possible to charge for the use of sports fi elds by sports groups who directly benefi t The funding of sports fi elds from rates addresses the from the facilities. In general, the more fi elds are used, equity considerations and the low or no charges applied the higher will be the maintenance costs. With the increase in the number of users, more facilities need to elsewhere in the Auckland region. This ensures that be provided. the services provided will contribute to the community outcomes identifi ed (people are active, healthy and However, Council’s Leisure Strategy emphasises the content). Encouragement of intensive use of local need to maximise opportunities to participate in leisure sports fi elds may also generate wider social, economic, and recreation as a key goal. Many users of sports fi elds environmental and cultural benefi ts to the community. are youth and low-income individuals. By encouraging them to engage in sports activities the City could reduce The Council may apply any of the funding sources available under section 103 (2) of the Local Government youth problems, and this is signifi cant social benefi t. AND FINANCING POLICY REVENUE Therefore separate funding of this activity is considered Act 2002 to supplement the funding available from the to be undesirable. sources identifi ed.

In addition, as the facilities are used by the wider Capital expenditure public, it is diffi cult to determine the costs of parks Cost of replacement and renewal of existing asset operations in relation to the number of people who use capacities, clearing of backlog or enhancing the level of them. Generally a large number of people benefi t from service may be funded from mainly from borrowings and SECTION THREE parks as the benefi ts are distributed across the entire other appropriate sources available under section 103 community. Separate funding for this activity is neither (2) of the Local Government Act 2002. cost effective nor desirable. The capital expenditures on assets that Capital expenditure create additional capacities to meet the The capital expenditures incurred on replacement demand resulting from the growth of the city

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may be funded mainly from development contributions new developments. If such capacity augmentations or fi nancial contributions (including developer also result in raising the levels of service, a part of the agreements). Where necessary, the Council may benefi ts will accrue to existing ratepayers as well. also adopt other appropriate sources available under section 103 (2) of the Local Government Act 2002. Period in or over which those benefi ts are expected These funding details are presented in the development to occur contributions and fi nancial contributions policy. The Transport Assets activity provides infrastructure essential for the development of communities, as such it is an ongoing long term activity. Generally, transport 4.8 TRANSPORT ASSETS The Transport Assets activity manages the transport assets have a very long expected economic life infrastructure network and oversees the implementation extending to several decades. Hence, the benefi ts of of transport programmes and projects including the transport activity accrue in both the short and the long implementation of the Council’s Transport Strategy term. and capital works programmes to provide integrated transport city wide. Extent to which the actions or inaction of particular individuals or a group contribute to the need to Transport assets include the road network, footpaths undertake the activity and cycle ways, bus shelters, traffi c services (e.g. The need to maintain and renew the roading network, crossings, road markings, signs and signals) and and the costs incurred as a consequence are caused street lights and road drainage. The services provided by the negative effects of vehicular traffi c. There are by these assets represent a mix of private and public negative environmental effects arising from the use goods. of roads, such as air and stormwater pollution, noise pollution, erosion of the road surface, and loss of Community outcomes to which the activity amenity. These also have negative impacts on the primarily contributes community. Heavy vehicles account for most of the wear and tear, and increase the road renewal and The Transport Assets activity contributes primarily to maintenance costs. the community outcomes described in the LTCCP: Sustainable and Integrated Transport, Green Network, The capital costs related to replacement and renewal Strong Economy, Sustainable Environment, Urban and Rural villages, and Waiora. of assets arise primarily due to the need to serve the existing population. Some capital works programmes undertaken to create additional capacities primarily to ROAD NETWORK meet the anticipated demand resulting from growth.

Distribution of benefi ts between the community as Some capital works programmes are undertaken to a whole, any identifi able part of the community, and provide for different modes of travel or new connections individuals which benefi t existing population and future population. The distribution of benefi ts from the transport activity are quite complex and depend both on the type of asset While those undertaken for replacement and renewal of concerned (such as arterial road, collector or local road) assets are caused by the negative effects of road use REVENUE AND FINANCING POLICY REVENUE and the type of work or service performed. While the especially by vehicular traffi c, the capital works related road network benefi ts road users, a well designed road to clearance of backlog or improvement of levels of network and other transport facilities benefi t the wider service are undertaken to meet the needs of the current community by improving mobility and accessibility and population. facilitating social interactions and economic activities. Where it is not practicable or cost effective to exclude Transport activities meet a statutory requirement arising motorists, pedestrians or cyclists from using most local

SECTION THREE from key legislation such as: transport assets, the transport activity can be generally treated as public goods for funding purposes. • Local Government Act 2002 • Land Transport Management Act 2003 The capital expenditures incurred on replacement and • Resource Management Act 1991 renewal of existing asset capacities beneﬁ t the current ratepayers, while the additional capacities created to • Transport Act 1962 meet the demand generated by growth primarily beneﬁ t • Health and Safety in Employment Act 1992

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• Public Works Act FUNDING SOURCES • New Zealand Transport Agency (NZTA) Requirements. Operating expenditure The allocation of operating costs entirely on the basis • Compliance with Auckland Regional Land Transport of benefi ciary pays or polluter pays principles cannot Strategy be carried out by legally available funding mechanisms. Council has no legal means of charging road users Costs/benefi ts, including transparency and directly. The New Zealand Transport Agency subsidy, accountability consequences, of funding activity which covers a part of the cost, and the transfers from distinctly from other activities petrol tax collection are indirect ways of allocating costs to road users. Council will continue to use the maximum Operating expenditure level of New Zealand Transport Agency subsidy and Separate funding of these services by allocating the petrol tax transfers, and fund the residual costs from costs to the road users (exacerbators) could produce rates. wider benefi ts such as mitigation of the negative environmental effects of road usage. However there are When work is carried out because of a specifi c request no legal and cost effective methods to apply user pays of a group of ratepayers or when it is carried out in for all road users. advance of the priorities specifi ed in Council’s asset management plans, then costs can be allocated to the It is possible to identify the benefi ts accruing to private ratepayers requesting the work through direct payment individuals and individual business enterprises. or by using a targeted rate. However, a part of the operating costs of transport assets could be shared between the residential sector The Council may apply any of the funding sources and the business sector through the rating system. This could improve fairness, equity and economic effi ciency available under section 103 (2) of the Local Government of cost sharing. Act 2002 to supplement the funding available from the sources identifi ed. It is not possible to allocate costs of maintenance and upgrading to road users beyond the amount that can be Capital expenditure recovered from New Zealand Transport Agency. The Cost of replacement and renewal of existing asset transfer of costs that cannot be recovered from road capacities, clearing of backlog or enhancing the level of users to the rest of the community tends to reduce the service may be funded from mainly from borrowings and environmental benefi ts anticipated from user charges. other appropriate sources available under section 103 (2) of the Local Government Act 2002. Capital expenditure The funding of capital expenditures distinctly from The capital expenditures on assets that create other activities could send appropriate cost signals, additional capacities to meet the demand resulting and improve transparency and accountability; and from the growth of the City may be funded mainly from these encourage effi cient use of resources within a development contributions or fi nancial contributions community. New developments place additional demand (including developer agreements). Where necessary, on the city’s transport network. Separate funding of the Council may also adopt other appropriate sources

the additional capacities provided for growth could available under section 103 (2) of the Local Government AND FINANCING POLICY REVENUE send proper cost signals to developers. It prevents the Act 2002. These funding details are presented in the transfer of costs from private beneﬁ ciaries to the current development contributions and ﬁ nancial contributions ratepayers who have paid for their share. Separate policy. funding of growth related capital expenditures is therefore considered to be fair and equitable. Capital works programmes that provide for different modes of travel or new road connections may be funded

The capital costs related to replacement and renewal mainly from borrowings and other appropriate sources SECTION THREE of assets, clearing backlog and raising the levels of available under section 103 (2) of the Local Government service arise primarily due to the need to serve the Act 2002. To the extent that such capital works benefi t existing population; and the funding of these costs the new developments, they may be funded from through collective funding methods such as property development contributions or fi nancial rates could prevent artifi cial infl ation of the cost of new contributions or infrastructure funding developments. agreements.

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FOOTPATHS AND CYCLE WAYS Capital expenditure Cost of replacement and renewal of existing asset Distribution of benefi ts capacities, clearing of backlog or enhancing the level of Footpaths and cycle ways have the characteristics of service may be funded from mainly from borrowings and mixed goods, and they benefi t the individual users as other appropriate sources available under section 103 well as the public in general. Once footpaths and cycle (2) of the Local Government Act 2002. ways have been constructed, they become part of the City’s network and people have the legal right to use The capital expenditures on assets that create them. additional capacities to meet the demand resulting from the growth of the City may be funded mainly from Footpaths and cycle ways are alternative modes development contributions or fi nancial contributions of transport that contribute to reducing congestion (including developer agreements). Where necessary, which is an indirect benefi t to motor vehicle users. the Council may also adopt other appropriate sources available under section 103 (2) of the Local Government Good footpaths add to the general quality of the Act 2002. These funding details are presented in the urban environment. These are benefi ts to the wider development contributions and fi nancial contributions community. policy. The period in or over which benefi ts are expected to BUS SHELTERS AND PARK AND RIDE FACILITIES occur The benefi ts of footpaths are ongoing and spread over Distribution of benefi ts the short and long term. The Council has a commitment to promoting good access to passenger transport, reducing the number The effects of the actions or inaction of individuals or car-based trips and reducing the length of trips. or a group contribution to this activity Facilities that support passenger transport are important This activity is undertaken in part to reduce the negative in achieving this aim. Although the provision of public environmental effects of private motor vehicle use and, passenger transport facilities benefi ts primarily the in part, to meet the demand created by the growth of people who use them, there are positive external the city. Maintenance and renewal are undertaken to benefi ts accruing to the community as a whole. These mitigate any negative effects arising from the actions contribute to reduce road congestion and the negative and inaction of individuals or groups of individuals. environmental effects of motor vehicles.

The costs and benefi ts of funding the activity The period in or over which benefi ts are expected to distinctly from other activities occur The provision of footpaths and cycle ways caters to The benefi ts of providing passenger transport facilities those who are economically disadvantaged in a car- are ongoing and will spread over a long time period. oriented society or those who choose healthier and less environmentally damaging transport modes. Footpaths The effects of the actions or inaction of individuals and cycle ways are a limited manner through which or a group contribution to this activity Council can ensure equal levels of access to facilities This activity is needed in part to reduce the negative and services for all residents. environmental effects of private motor vehicle use and, REVENUE AND FINANCING POLICY REVENUE in part, to meet the demand created by the growth of Separate funding of this activity according to distribution the City. Maintenance and renewal are undertaken to of benefi ts is not practicable or desirable. mitigate any negative effects arising from the actions and inaction of individuals or groups of individuals. FUNDING SOURCES The costs and benefi ts of funding the activity distinctly from other activities

SECTION THREE Operating expenditure Funding the costs attributable to direct beneﬁ ciaries These considerations suggest that the operating costs from user charges is a transparent method of funding, footpaths and cycle ways be funded from general rates. but charging for some services such as bus shelters is not practicable, cost effective or desirable; it would The Council may apply any of the funding sources reduce the overall effectiveness of this activity and the available under section 103 (2) of LGA 02 to supplement overall social, economic and environmental beneﬁ ts the funding from rates. expected.

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FUNDING SOURCES therefore accrue directly to the users of the facility, and indirectly to local businesses and the rest of the Operating expenditure community. Other car parks are provided for users of The Council’s decision that people who use passenger community facilities including parks and community transport should not directly bear any of the cost of buildings. In addition on street road side parking is bus shelter and park and ride facilities is based on the allowed subject to certain conditions. consideration of the overall impact on the social and environmental wellbeing of the community. Council The period in or over which the benefi ts are believes that public passenger transport should be expected to occur made affordable. The operating expenditures of this The benefi ts of car parking facilities are ongoing and activity is, therefore, funded from rates and subsidy from spread over the long term. the New Zealand Transport Agency. The effects of the actions or inaction of individuals However, if there is a change in regional policy or a group contribution to this activity regarding charging for use of park and ride facilities, The need for public car parks arises because of then the Council could decide to charge for use of its public facilities, the need for visitor parking and the park and ride facilities, if appropriate, in order to align extent to which private car parks are not available with that regional policy. in the proximity. However, motor vehicle users are exacerbators as road use contributes to environmental The Council may apply any of the funding sources pollution. The funding policy on car parks may have an available under section 103 (2) of the Local Government indirect effect on the environment through the infl uence Act 2002 to supplement the funding available from the on the choice of mode, frequency and destination of sources identifi ed. travel.

Capital expenditure The cost and benefi ts of funding the activity Cost of replacement and renewal of existing asset distinctly from other activities capacities, clearing of backlog or enhancing the level of Car parking service is a private good, and the users service may be funded from mainly from borrowings and of this facility could be identifi ed and charged. The other appropriate sources available under section 103 adoption of user pays method to fund car parks will (2) of the Local Government Act 2002. encourage more effi cient use of land in urban areas. It will encourage higher turnover in the use of parking The capital expenditures on assets that create spaces. It will also encourage people to use alternative additional capacities to meet the demand resulting modes of transport as the cost of using private motor from the growth of the city may be funded mainly from vehicles increases. development contributions or fi nancial contributions (including developer agreements). Where necessary, Charging for car parking may discourage visits to the Council may also adopt other appropriate sources areas where charge parking is enforced, and this may available under section 103 (2) of the LGA 02. These affect business activities in urban centres. There are funding details are presented in the development also transaction costs involved in adopting a user pays contributions and fi nancial contributions policy. system and it is important to weigh these costs against

the long term social, economic and environmental AND FINANCING POLICY REVENUE CAR PARKS beneﬁ ts.

Distribution of benefi ts However, rates funding of car parking does not take Car parks are provided mostly in commercial areas for into account the scarcity of land in the urban centres, the benefi t of vehicle users. The safety and security the effect on urban design and the environmental cost provided in car parks is an additional benefi t to the off of encouraging private motorcar use within the City.

street car park users. Although car parking facilities In view of the need to use land in business areas of SECTION THREE are a private good that generates private benefi ts, the City more effi ciently, the increasing demand for there are positive spin-off effects. The availability of car parking and the environmental implications of parking facilities contributes to safe and orderly traffi c encouraging private motor vehicle use, charging for car movement in the City and attracting communities to parking in some locations could be more the urban centres. The benefi ts of car parking facilities benefi cial than rates funding.

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FUNDING SOURCES The effects of the actions or inaction of individuals or a group contribution to this activity Operating expenditure This activity does not arise because of negative effects Generally, operating costs of car parks are funded or actions or inactions of specifi c individuals or groups from rates, except where it is appropriate to charge of individuals. However, the Council needs to undertake users. Car park buildings are always funded from user this activity in part to meet the demand created by the charges because of the high operating costs involved. growth of the City. The Council may extend user pays for on street parking and off street parking facilities where it considers The costs and benefi ts of funding the activity appropriate. distinctly from other activities Good street lighting helps people to feel safe in and Costs relating to rates funded car parks are allocated around their homes, and when travelling around the city. Street lights provide a public good. It is not practicable, between the business sector and the rest of the cost effective or desirable to allocate costs directly to community through the business sector differential. The individual benefi ciaries of streetlights. application of the business sector differential is intended to refl ect cost allocation according to distribution of FUNDING SOURCES benefi ts. Operating expenditure The Council may apply any of the funding sources Streetlights may be funded from the NZ Transport available under section 103 (2) of the Local Government Agency subsidy and rates. It should be noted that the Act 2002 to supplement the funding available from the cost allocated to car users may not be fully recovered sources identifi ed. because the NZ Transport Agency subsidy covers only a part of the costs. Capital expenditure Cost of replacement and renewal of existing asset The Council may apply any of the funding sources capacities, clearing of backlog or enhancing the level of available under section 103 (2) of the Local Government service may be funded from mainly from borrowings and Act 2002 to supplement the funding available from the other appropriate sources available under section 103 sources identifi ed. (2) of the Local Government Act 2002. Capital expenditure The capital expenditures on assets that create Cost of replacement and renewal of existing asset additional capacities to meet the demand resulting capacities, clearing of backlog or enhancing the level of from the growth of the city may be funded mainly from service may be funded from mainly from borrowings and development contributions or fi nancial contributions other appropriate sources available under section 103 (including developer agreements). Where necessary, (2) of the Local Government Act 2002. the Council may also adopt other appropriate sources The capital expenditures on assets that create available under section 103 (2) of the Local Government additional capacities to meet the demand resulting Act 2002. These funding details are presented in the from the growth of the City may be funded mainly from development contributions and fi nancial contributions REVENUE AND FINANCING POLICY REVENUE development contributions or fi nancial contributions policy. (including developer agreements). Where necessary, the Council may also adopt other appropriate sources STREETLIGHTS available under section 103 (2) of the Local Government Act 2002. These funding details are presented in the Distribution of benefi ts development contributions and fi nancial contributions All road users benefi t from new streetlights due to policy. SECTION THREE accident reduction and improved safety and security. The extent to which each type of user benefi ts partly ROAD SAFETY SERVICES AND TRAFFIC depends on the quality of streetlight and the location. MANAGEMENT

The period in or over which benefi ts are expected to Distribution of benefi ts occur Road safety services: Road users benefi t from traffi c The benefi ts of providing streetlights are ongoing. services which are designed to improve road safety.

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Traffi c management: Traffi c management services and by road users is recovered from them, road safety and road signage are provided to improve the fl ow of traffi c traffi c management will have much wider benefi ts to and to meet the needs of road users. the community as a whole. The Council may apply any Both road safety services and traffi c management will of the funding sources available under section 103 (2) have wider benefi ts to the community, but it is not easy of the Local Government Act 2002 to supplement the to quantify them. funding available from the sources identifi ed.

The period in or over which benefi ts are expected to The adoption of a mix of funding methods will have occur a favourable overall impact on the current and future The benefi ts of road safety services and traffi c social, economic, environmental and cultural wellbeing management are ongoing and more likely to accrue in of the community. the short term to medium term. Capital expenditure The effects of the actions or inaction of individuals Cost of replacement and renewal of existing asset or a group contribution to this activity capacities, clearing of backlog or enhancing the level These activities arise partly because of the negative of service may be funded mainly from borrowings and effects of actions or inactions of road users. Road users other appropriate sources available under section 103 also create the need for campaigns aimed at general (2) of the Local Government Act 2002. road safety. The capital expenditures on assets that create The costs and benefi ts of funding the activity additional capacities to meet the demand resulting distinctly from other activities from the growth of the city may be funded mainly from The funding of this activity directly from the road users development contributions or fi nancial contributions would be an effi cient way of allocating resources, as it (including developer agreements). Where necessary, would refl ect the cost of using roads. However, Council the Council may also adopt other appropriate sources does not have the legal powers and practicable ways to available under section 103 (2) of the Local Government do so. Act 2002. These funding details are presented in the development contributions and fi nancial contributions Funding the costs by New Zealand Transport Agency is policy. an indirect way of allocating the costs to road users and the cost of doing so is minimal to the Council. However, 4.9 PROPERTY ASSETS as NZ Transport Agency fi nances only a portion of the Property Assets is responsible for maintaining non- costs, the shortfall needs to be recovered from rates. operational building assets. Non-operational assets are those acquired or retained to provide service FUNDING SOURCES functionality such as offi ce buildings; libraries; community facilities; cultural and heritage sites and Road safety services: The proportion of costs that can the Housing for Older Adult villages. Responsibilities be recovered through New Zealand Transport Agency include both operational and capital and renewal works, varies across a wide range of services in this area. New but excludes major redevelopment or new building

Zealand Transport Agency also funds local road safety projects. AND FINANCING POLICY REVENUE programmes. Where costs cannot be recovered from NZ Transport Agency, or other sources (such as grants Heritage is identifi ed as a matter of national importance and sponsorship), they will be funded from rates. under the Resource Management Act 1991 and the Council has responsibility for its management in terms Traffi c management: It is possible to recover only a of its regulatory role under that Act. Waitakere heritage part of the costs from road users through NZ Transport involves those aspects of both the natural and built Agency subsidies. The remaining costs therefore need environment that have been inherited from the past and SECTION THREE to be allocated to the community and recovered through will be handed on to future generations. rates. The Council is committed to the provision Funding of this activity by road users is consistent of housing for older adults. The provision with Council’s approach to road safety and traffi c of this service is to assist older adults that management. Although only a part of the cost imposed demonstrate a genuine housing need.

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The community outcomes to which the activity separate funding methods such as user charges may primarily contributes raise affordability issues and could reduce the wider This group of activities contributes primarily to the social beneﬁ ts expected. following community outcomes described in the LTCCP: Strong Communities, Strong Economy, Urban and Rural Separate funding of the operating costs of public goods Villages and Vibrant Arts and Culture. is not practicable and cost effective.

Distribution of benefi ts between the community as The Council may apply any of the funding sources a whole, any identifi able part of the community, and available under section 103 (2) of the Local Government individuals Act 2002 to supplement the funding available from the Assets that are not directly related to the delivery of sources identifi ed. private goods benefi t the community as a whole. Capital expenditure Cultural and Heritage Sites The funding of capital costs on the basis of those who The maintenance and conservation of heritage assets benefi t from them or those who cause them could also is a public good which benefi t the current and future improve resource allocation within the community. The community. Heritage properties retain connections with capital costs related to replacement and renewal of the City’s past and contribute to City identity and sense assets, clearing backlog and raising the levels of service of place. Some heritage properties such as buildings arise primarily due to the need to serve the existing generate private benefi ts to those who use them. population; and the allocation of these costs to current ratepayers is fair, equitable and effi cient. Housing for Older Adults This activity directly benefi ts older adults who occupy FUNDING SOURCES Council owned housing. The availability of affordable and suitable housing in convenient locations for the Operating expenditure older adults contributes to improve the overall wellbeing The funding sources of operating expenditure will of the community. depend on the nature of the service provided by employing the property assets. Operating costs of Period in or over which those benefi ts are expected the assets employed to provide public goods need to to occur be funded from property rates as user pays methods The benefi ts accrue in both the short and long term. are not practicable. The funding of property assets employed to provide private goods which benefi t Extent to which the actions or inaction of particular identifi able individuals or groups may be funded by adopting user pays or a mix of user pays and property individuals or a group contribute to the need to rates. undertake the activity These activities are not undertaken to mitigate any Housing for Older Adults negative effects of actions (or inactions) of individuals or Council policy is to provide Housing for Older Adults groups of individuals. as a self-funding operation on a cost recovery basis i.e. not for profi t. The term “cost recovery” is defi ned as With the changes in the age profi le of the population, REVENUE AND FINANCING POLICY REVENUE fi nancing of operating costs plus payment of interest the Council may increase the housing for older adults to plus depreciation. Rentals are adjusted in accordance meet the increased demand. with changes to Superannuation and benefi ts. Any shortfalls in rent revenue are met from general rates. Costs and benefi ts, including transparency and

accountability consequences, of funding activity Heritage and cultural buildings distinctly from other activities A combination of user charges (e.g. rentals charged

SECTION THREE from users) and rates is applied to fund the operating Operating expenditure expenditure of Council-owned heritage buildings. Separate funding of the operating expenses of assets employed to provide private goods could send The Council may apply any of the funding sources appropriate cost signals to the users of such services available under section 103 (2) of the Local Government (e.g. Housing for Older Adults). However, the funding of Act 2002 to supplement the funding available from the operating costs of heritage and cultural sites entirely by sources identiﬁ ed.

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Capital expenditure Extent to which the actions or inaction of particular The Council may fund the capital expenses from individuals or a group contribute to the need to borrowings and other appropriate sources available undertake the activity under section 103 (2) of the Local Government Act The Local Government Act 2002 requires each local 2002. authority to make provision for burial of the dead. Council is also obliged to provide cemetery services 4.10 CEMETERIES under the Burial and Cremations Act 1964, and also to The Cemeteries activity provides facilities for the meet the Community’s expectations. disposal of human dead bodies in a dignifi ed and respectful manner. Although the Act does not specify These services are required by the entire community how provision must be made, Waitakere City Council for the disposal of human dead bodies in a dignifi ed has provided burial service and sites at Waikumete and respectful manner, and to protect the health and Cemetery and the smaller Swanson Cemetery. hygiene of the community. Waikumete Cemetery caters for a wide range of nationalities, religions and beliefs as well as the Costs and benefi ts of separate funding Returned Service persons. It is possible to identify those who use the facility and charge accordingly. The funding of operating In addition to managing burials and cremations, expenditures related to burial and crematorium services Waikumete Cemetery is also managed to implement distinctly from the heritage and parks aspects is cost the Waikumete Cemetery Conservation and Reserve effective and benefi cial to the community because Management Plan. This includes grounds maintenance, such costs are allocated to the private benefi ciaries. weed removal and restoration of both the natural and However, such charges should be affordable to all cultural heritage values present within the cemetery. users. Many of the buildings are maintained by the Property Services section of the Council, as part of its portfolio of It is not cost effective or practicable to allocate the costs heritage properties. related to heritage and park aspects of this activity.

Community outcomes to which the activity FUNDING SOURCES primarily contributes This activity contributes primarily to the following Operating expenditure community outcomes described in the LTCCP: Green The cost of burials and cremations are paid by the Network; Mauri Ora; Vibrant Arts and Culture and Urban family of the deceased. The heritage and parks aspect and Rural Villages. of the cemeteries are funded from rates and special funds. Rates funding is also provided for the Returned Distribution of beneﬁ ts between the community as Serviceman’s areas which is partly funded by the a whole, any identiﬁ able part of the community, and Department of Internal Affairs. individuals The burial and crematoria services are private goods The Council may apply any of the funding sources essential to communities. They generate private available under section 103 (2) of the Local Government

beneﬁ ts to individuals and bereaved families as they Act 2002 to supplement the funding available from the AND FINANCING POLICY REVENUE provide easy access to burial and ashes interment sites. sources identiﬁ ed.

The community as a whole benefi t from these services Capital expenditure as they contribute to health and hygiene of the City. The Cost of replacement and renewal of existing asset maintenance of heritage buildings and the park is also a capacities, clearing of backlog or enhancing the level of public benefi t. service may be funded from mainly from borrowings and other appropriate sources available under section 103 SECTION THREE Period in or over which those benefi ts are expected (2) of the Local Government Act 2002. to occur Benefi ts of this service accrue in both short term and The capital expenditures on assets that the long term. create additional capacities to meet the demand resulting from the growth of the City

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may be funded mainly from development contributions The period in or over which benefi ts are expected to or fi nancial contributions (including developer occur agreements). Where necessary, the Council may also The benefi ts of this activity accrue in both short term adopt other appropriate sources available under section and long term. 103 (2) of the Local Government Act 2002. Extent to which the actions or inaction of particular 4.11 SOLID WASTE individuals or a group contribute to the need to The Council provides a range of services within its solid undertake the activity waste management activities. These include a kerbside This activity has arisen mainly due to the negative collection service of refuse and recyclables, a kerbside effects of the production of solid waste by residents and collection service of business housekeeping waste and to meet the Council’s statutory requirements. recyclables from commercial premises, and household inorganic collections. The Council also provides Costs and benefi ts, including transparency and education and awareness on waste minimisation at the accountability consequences, of funding activity Learning Centre and through other programmes. distinctly from other activities The Council has a policy to reduce the amount of waste The solid waste activity maintains the City’s image generated and disposed of to landfi ll. The Council with litter and illegal dumping control including a loose incurs costs in attempting to minimise the amount of litter collection service, street litterbin emptying and waste that is produced and deposited in landfi lls and maintenance, illegal dumping control, removal of operating the transfer station. According to the “polluter abandoned vehicles, stream cleaning and support of the pays” principle, the cost of this service needs to be Harbour Clean Up Trust. allocated to those who generate waste. User charge is a cost effective and transparent funding method, The Council also operates the Refuse Transfer Station, which will encourage a reduction of the amount of waste a facility that assists in the handling, separating generated and deposited in landfi lls. These benefi ts (resource recovery) and disposal of waste. outweigh the transaction costs.

This activity meets the statutory requirements arising from: The Council also recognises that on fairness and equity • Waste Minimisation Act 2008 grounds, the ability to pay should be taken into account • Local Government Act 2002 in imposing user charges especially for large, low- • Litter Act 1979 income families. In addition, the full recovery of these • Resource Management Act 1991. costs through user charges may reduce incentives to recycle. Community outcomes to which this activity primarily contributes FUNDING SOURCES The Solid Waste activity contributes to the following community outcomes described in the LTCCP: Operating expenditure Sustainable Environment, Strong Economy and Green Network. The operating cost of kerb side waste collection is funded by a mix of user charges on the refuse bags and

REVENUE AND FINANCING POLICY REVENUE WASTE COLLECTION SERVICES property rates. In the future, when the organic waste kerbside collection is introduced, it is expected to be Distribution of benefi ts between the community as funded by the waste levy (introduced as part of the a whole, any identifi able part of the community, and Waste Minimisation Act 2008), therefore will be no direct individuals cost to the residents. The collection, separation, recycling and disposal of waste collectively represent a private good that Planning for future programmes will always consider SECTION THREE produce private benefi ts to the users of the services. affordability issues and the capacity of the market to The private use in turn produces benefi ts to the wider deliver the outcomes. community. The individual benefi ts arise from the convenience of disposal. Benefi ts to the community The Council may apply any of the funding sources include safeguarding public health, discouraging illegal available under section 103 (2) of the Local Government dumping, reducing the volume of waste going to landfi ll Act 2002 to supplement the funding available from the and creating a clean environment. sources identifi ed.

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Capital expenditure Funding sources The Council may fund the capital expenses from The operating expenditure for waste minimisation borrowings and other appropriate sources available education is mainly funded from user charges on the under section 103 (2) of the Local Government Act refuse bags and land rates. 2002. The Council may apply any of the funding sources Waste Minimisation Programmes and the Learning available under section 103 (2) of the Local Government Centre Act 2002 to supplement the funding available from the The Council started the Learning Centre in the sources identifi ed. belief that the best way to get the waste reduction message into households was to educate school CITY IMAGE - LITTER AND ILLEGAL DUMPING children in practical every day methods that could be CONTROL easily implemented into their homes. The Learning Centre provides free education to every primary and Distribution of benefi ts between the community as intermediate school in Waitakere, and at a cost, to a whole, any identifi able part of the community, and schools in the rest of Auckland region. individuals The collection of litter from all parts of the city, regular Educational activities have a long-term focus in emptying of litter bins in public areas, control of illegal developing environmentally sustainable communities. dumping, removal of abandoned vehicles, stream Education and raising awareness of waste cleaning and providing support to the Harbour Clean minimisation is a key activity to encourage reduction Up Trust collectively ensure a clean and safe city for the of waste generated by the community. Council has benefi t of the community as a whole. a legal requirement to plan for and encourage waste Some services may benefi t identifi able groups like minimisation. businesses, but it should be recognised that the Council provided litterbins are not intended for trade waste Distribution of benefi ts between the community as disposal. a whole, any identifi able part of the community, and individuals Period in or over which those benefi ts are expected The support and education provided to adopt waste to occur minimisation practices is a private benefi t accruing Benefi ts accrue predominantly during the year in which to individuals with positive external effects on the the expenses are incurred, but some benefi ts may environment, benefi ting the whole community. spread over the long term.

The period in or over which beneﬁ ts are expected to Extent to which the actions or inaction of particular occur individuals or a group contribute to the need to The beneﬁ ts of this activity are ongoing and accrue over undertake the activity the long term. The enforcement of bylaws and the collection of litter are made necessary by the negative effects of the Extent to which the actions or inaction of particular

actions of a few. If these people could be identiﬁ ed and AND FINANCING POLICY REVENUE individuals or a group contribute to the need to made to pay, then this would be the fairest allocation of undertake the activity costs. These activities have arisen due to the negative effects of the production methods that contribute to Councils are not necessarily the exclusive provider environmental pollution, legislative requirements and of litter bins in public areas. Where excessive litter Council’s own objectives. is attributable to a business, such business can be

required to provide receptacles to service that need. SECTION THREE Costs and benefi ts, including transparency and accountability consequences, of funding activity Costs and benefi ts, including transparency and distinctly from other activities accountability consequences, of funding The imposition of user pays for education could be a activity distinctly from other activities disincentive to use the services provided, reducing the Funding of costs of enforcement of bylaws, overall benefi t to the community. including the disposal of abandoned

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vehicles through fi nes benefi ts the community because Period in or over which those benefi ts are expected the community does not have to bear the cost of the to occur negative effects of the actions of individuals or groups of The benefi ts of this activity are ongoing and spread over individuals. a long period.

If the cost of identifying and prosecuting the offenders Extent to which the actions or inaction of particular exceeds the revenue from fi nes, there is no direct individuals or a group contribute to the need to fi nancial benefi t of adopting this funding technique, but undertake the activity it could send a strong signal to potential offenders and This activity has arisen due to the negative effects of the discourage illegal dumping. production of solid waste and the disposal of noxious weeds by the residents and to meet the Council’s FUNDING SOURCES statutory requirements.

Operating expenditure Costs and benefi ts, including transparency and Where possible, the costs of enforcement of bylaws, accountability consequences, of funding activity including the disposal of abandoned vehicles, will be distinctly from other activities recovered from fi nes. Where this is not possible they will The funding of the operating cost of the Transfer Station be funded from rates. All other activities will be funded from user pays benefi ts the community because there from rates. In the case of abandoned vehicles, Council is no fi nancial burden to the community in providing a will lobby for alternatives to rates funding of vehicles service that is used mainly for private benefi t. It is also disposal. For City image services in town centres, a part an effective way of encouraging waste minimisation, of the cost is allocated to the business sector through which is a public benefi t. the business sector differential. However, the application of user charges to recover the The Council may apply any of the funding sources full cost could be a disincentive for some activities like available under section 103 (2) of the Local Government the safe disposal of noxious weeds or hazardous waste. Act 2002 to supplement the funding available from the sources identifi ed. FUNDING SOURCES

Capital expenditure Operating costs The Council may fund the capital expenses from The operating expenditure for activities undertaken at borrowings and other appropriate sources available the transfer station like refuse processing and disposal under section 103 (2) of the Local Government Act is mainly funded by user charges and partly by rates. 2002. The Council may apply any of the funding sources REFUSE PROCESSING AND DISPOSAL - TRANSFER available under section 103 (2) of the Local Government STATION OPERATIONS Act 2002 to supplement the funding available from the The transfer station offers a drop-off facility for waste sources identiﬁ ed. and recyclables and a composting service for green

REVENUE AND FINANCING POLICY REVENUE waste. Capital expenditure The Council may fund the capital expenses from Distribution of benefi ts between the community as borrowings and other appropriate sources available a whole, any identifi able part of the community, and under section 103 (2) of the Local Government Act individuals Both these services benefi t the users of this service. 2002. This in turn will benefi t the community as a whole SECTION THREE through reduced volumes of waste going into landfi ll. 4.12 AFTERCARE Aftercare services ensure that the Council fulfi ls its As an example, the disposal of weeds or hazardous legal requirements and responsibilities to manage any waste delivered to the Transfer Station benefi ts the environmental effects of the former waste disposal sites individual, but it is also of signifi cant benefi t to the within Waitakere. It also has responsibility to restore community as it safely disposes of a noxious weeds and the sites in preparation for future use including erosion hazardous waste. protection, re-vegetation and weed control.

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Community outcomes to which the activity heritage materials unique to the Waitakere region. primarily contributes The Library Service is responsible for the operation of Aftercare service contributes primarily to the following libraries and learning centres and the management of community outcomes described in the LTCCP: Green the contracts for the operation of the Citizens Advice Network, Sustainable Environment and Waiora. Bureaux and WaiCAB Inc. It supports the Settlement Support New Zealand services; and manages the Distribution of benefi ts between the community as Council’s contractual arrangements with the funding a whole, any identifi able part of the community, and body, the Department of Labour. individuals Aftercare service contributes to protecting community The Library Services also provides community based health, safety and environmental quality. It contributes access to Council information services and payment to the current and future social, economic and receipting for rates, water rates, parking infringements environmental wellbeing of the community. Hence the and dog licensing. They also provide information in a benefi ts accrue to the entire community. wide variety of formats to meet the organisational needs of Council staff. Period in or over which those benefi ts are expected to occur Community outcomes to which the activity As the Aftercare service needs to be provided until the primarily contributes adverse effects of landfi lls are eliminated, the benefi ts of This activity contributes primarily to the following the service spread over a long period. community outcomes described in the LTCCP: Urban and Rural Villages, Strong Communities, Sustainable Extent to which the actions or inaction of particular and Integrated Transport, Working Together and individuals or a group contribute to the need to Whaiora. undertake the activity This activity has arisen due to the negative effects arising from the former waste disposal sites (landfi lls) Distribution of benefi ts between the community as that need to manage them in a safe and environmentally a whole, any identifi able part of the community, and acceptable manner. The generators of waste (polluters) individuals are primarily responsible for creating the need for this The services provided by the Library activity have the activity. characteristics of private goods, but because of positive externalities they produce, these services could also be Costs and benefi ts, including transparency and considered as “merit goods”. accountability consequences, of funding activity distinctly from other activities Libraries: People who use library services benefi t Since the entire community benefi ts from this activity directly as libraries fulfi l important leisure, recreation there is no need for separate funding. Debt funding and education roles. Library services also provide of this activity contributes to distribute the costs over a range of reference sources for business decision a longer period, thus maintaining inter-generational making which benefi ts the users of this service. equity. The community as a whole also benefi ts from the REVENUE AND FINANCING POLICY REVENUE Funding sources services provided by library service. The costs associated with aftercare are not treated as operating expenditure. Hence the costs of aftercare are Council information: This service benefi ts principally funded from borrowings in accordance with the revenue those who seek Council information. and fi nancing policy. With the growth of population and economic activities in

4.13 LIBRARY SERVICES the City, the Council invests in library facilities to meet SECTION THREE The library services provide support for lifelong learning the increasing demand over time. While the additional and for the educational aspirations of the community, asset capacities created beneﬁ t primarily the growth supporting research and academic study. In addition community, they could also generate the library provides for recreational activity through the transient beneﬁ ts to current ratepayers until provision of materials for leisure reading and undertakes the additional capacities created are fully the acquisition and preservation of documentary utilised.

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Period in or over which those benefi ts are expected to occur The new developments place additional demand Benefi ts accrue in the short term and the long term. on library service network. Separate funding of the additional capacities provided for growth could send Extent to which the actions or inaction of particular proper cost signals to developers. It prevents the individuals or a group contribute to the need to transfer of costs from private benefi ciaries to the undertake the activity community. Separate funding is effi cient, transparent, These activities are not undertaken to mitigate any fair and equitable. negative effects of actions (or inactions) of individuals or groups of individuals. FUNDING SOURCES

Costs and benefi ts, including transparency and Operating expenditure accountability consequences, of funding activity Council provides free membership to libraries, and the distinctly from other activities operating costs of libraries and the grants to Citizens Advice Bureaux are funded from rates. Operating expenditure It is possible to identify those who use the library The costs of some library services are allocated both to facilities and charge them accordingly. However, under the direct users of library services and to the community Section, 142 of the LGA 2002, if a local authority or a as a whole – with the actual allocation depending on the council-controlled organisation provides a library, the characteristics of the particular service being provided. residents in the local area are entitled to join the library free of charge. Furthermore, separate funding will limit The Council may apply any of the funding sources the accessibility only to those who can afford, and available under section 103 (2) of the Local Government reduce the social benefi ts expected from this activity. Act 2002 to supplement the funding available from the The provision of equal access to merit goods such as sources identifi ed. knowledge and information will have wider benefi ts to the community and hence separate funding may not be Capital expenditure justifi ed. Cost of replacement and renewal of existing asset capacities, clearing of backlog or enhancing the level Some services that produce primarily private benefi ts of service may be funded mainly from borrowings and with a relatively small proportion of social benefi ts other appropriate sources available under section 103 can be funded from user charges without affecting (2) of the Local Government Act 2002. the overall social benefi ts generated by libraries. The activities that produce little public benefi ts and cause The capital expenditures on assets that create costs are: additional capacities to meet the demand resulting • Items not returned on time impose a cost on library from the growth of the City may be funded mainly from services as they affect the effi cient turnover of stock development contributions or fi nancial contributions • Provision of Council information and the services (including developer agreements). Where necessary, relating to CDs, videos, tapes, Internet facilities, CD- the Council may also adopt other appropriate sources

REVENUE AND FINANCING POLICY REVENUE ROM, best seller collection, inter-loans and data- available under section 103 (2) of the Local Government searches are private goods. Separate charges can Act 2002. These funding details are presented in the be levied for these with minimal transaction costs. development contributions and fi nancial contributions policy. Capital expenditure Similarly, the funding of capital costs on the basis of 4.14 EMERGENCY MANAGEMENT those who benefi t from them or those who cause them The Civil Defence Emergency Management Act 2002 SECTION THREE improves resource allocation within the community. requires the Council to plan and provide for civil defence The capital costs related to replacement and renewal emergency management and ensure that essential of assets, clearing backlog and raising the levels of services are able to operate during an emergency. service arise primarily from the need to serve the The focus of this activity is the provision of effective existing population; and the allocation of these costs to civil defence emergency management and rural current ratepayers could reduce the burden placed on fi re readiness on a 24 hour basis for any incident or new developments. emergency that could occur within Waitakere.

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Community outcomes to which the activity services (roading, water services etc) are maintained or primarily contributes restored during or following any declared emergency. This group of activities contributes primarily to the following community outcomes described in the LTCCP: Some of the emergencies are triggered by natural Strong Communities and Green Network. causes (e.g. earthquakes) while others arise as a result of the negative effects of actions or inaction of specifi c Distribution of benefi ts between the community as individuals or groups of individuals. For example, a whole, any identifi able part of the community, and rural fi re could be caused by people deliberately or by individuals accident. Although emergency management services may benefi t those individuals or groups who receive help Costs and benefi ts, including transparency and in an emergency, it is not possible to identify them accountability consequences, of funding activity in advance. Also the control of the spill over effects distinctly from other activities of natural disasters, rural fi re, and management of Some fi res are caused by carelessness or arson and emergency situations benefi ts the entire community. fi ghting these fi res involves cost to the Council. In situations where the exacerbator can be identifi ed, the An exception relates to the expenditure incurred in cost of fi re fi ghting should be recovered from them, but providing assistance to businesses in developing their this involves costly legal proceedings. civil defence plans to comply with Section 43 of the Civil Defence Act. The courses conducted by Emergency It is neither cost effective nor desirable to have Management primarily benefi t the fi rms involved in separate funding for other activities under emergency terms of meeting their legal obligations. management as it is costly to identify extent of damage by an unpredictable natural disaster. The whole community benefi ts from the amenity and environmental values protected by preventing rural fi res. FUNDING SOURCES There are also positive wider effects associated with preventing and fi ghting fi res. Operating expenses The operating costs of civil defence activities are The issue of permits to light fi res (for example for funded from rates because of the wider benefi ts to controlled burn-offs) involves site inspection visits, the community. Fines are applied to cover the costs of providing advice, and where necessary, monitoring. fi re-fi ghting when arson or negligence is involved. Other This activity provides a private benefi t. functions are funded from general rates. Period in or over which those benefi ts are expected Emergency management also provides public benefi ts to occur distributed at regional and national level. Therefore The management of emergencies and the readiness to funding is also available from external sources such manage a disaster provides an ongoing assurance to as the Ministry of Civil Defence and Emergency the community, and the benefi ts are both short term and Management and the National Rural Fire Authority. long term. The Council may apply any of the funding sources

Extent to which the actions or inaction of particular AND FINANCING POLICY REVENUE available under section 103 (2) of the Local Government individuals or a group contribute to the need to Act 2002 to supplement the funding available from the undertake the activity sources identiﬁ ed. This activity is undertaken to mainly meet the statutory requirements arising from: Capital expenses • Civil Defence and Emergency Management Act The Council may fund the capital expenses from 2002 borrowings and other appropriate sources available SECTION THREE • Forest and Rural Fires Act 1987. under section 103 (2) of the Local Government Act 2002. Under the requirements of the above Acts, Waitakere City Council is required to plan and provide for Civil 4.15 LEISURE SERVICES Defence Emergency Management (CDEM) and rural Leisure Services provide accessible ﬁ re Services within Waitakere and ensure that essential recreation, leisure and community facilities

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and a community development network to meet the Period in or over which those benefi ts are expected leisure, recreational and community needs of residents to occur of the City. They support and contribute to the social Leisure, recreation and community facilities and and physical wellbeing of the residents of Waitakere. community development processes are managed, maintained or facilitated in perpetuity. The nature and Leisure Services assist in the development and scope of the activities change over time to meet the management of purpose built leisure facilities which expectations and requirements of the community. The include community and leisure centres, community benefi ts accrue in both the short term and the long term. houses and community halls and other community leisure facilities. Their work also involves the facilitation Extent to which the actions or inaction of particular of leisure activities and events for Waitakere as well individuals or a group contribute to the need to assisting community groups obtain funding for leisure undertake the activity activities. These activities are not undertaken to mitigate any negative effects of actions (or inaction) of individuals or Community outcomes to which the activity groups of individuals. primarily contributes This activity primarily contributes to the following However growth within the City will increase the community outcomes described in the LTCCP: Strong demand for leisure, recreation and community facilities Communities, Toiora; Urban and Rural Villages; and community development processes. A part of the Whaiora and Working Together. additional capacities of assets created will therefore be for growth, while a part will be to fi ll the gaps in existing Distribution of benefi ts between the community as provision. The capacities created to meet the increasing a whole, any identifi able part of the community, and demand are identifi ed separately for funding purposes. individuals Recreation and community development is a vital Costs/benefi ts, including transparency and component in the development and maintenance of accountability consequences, of funding the the community’s social cohesion, connectedness activity distinctly from other activities and general wellbeing. Recreation and community activities serve a vital role in maintaining physical and Operating expenditure mental health, building a sense of place and belonging, Leisure facilities provide private goods. The users of breaking down social barriers, improving the quality of leisure facilities could be identifi ed and charges could life and empowering communities. be levied to recover the costs. However, the recovery costs through separate funding could deny access to The city wide network of leisure, recreation and low income individuals and families. Equal access to community facilities and community development leisure facilities is critical for promoting a healthy, active processes benefi t the whole community as the and strong community. access to these facilities and services are open to all members of the community. This in turn contributes to a Capital expenditures healthy and active community. These facilities provide The Capital Expenditure on leisure facilities comprises a opportunities for social interaction that strengthens mix of renewals and new assets. It is possible to identify

REVENUE AND FINANCING POLICY REVENUE social cohesion and social wellbeing. All these the developments which benefi t from the additional constitute public benefi ts arising from the private use of capacities of leisure facilities provided to meet the the leisure facilities. increasing demand. Funding growth related capacities separately and distinctly from others improves The capital expenditures incurred on replacement transparency. This could establish a closer link between and renewal of existing asset capacities or clearing benefi ts accruing to new developments and the costs of of backlog benefi t the current ratepayers; and the additional capacities created.

SECTION THREE the additional capacities created to meet the demand generated by growth primarily benefi t new Transparency of cost of growth is important in giving developments. If such capacity augmentations result correct cost signals to developers and the eventual in raising the levels of service, a part of the benefi ts property buyers. It also enables them to understand the will accrue to existing ratepayers as well. Both groups justifi cation for development contributions or fi nancial of benefi ciaries could be identifi ed for the purpose of contributions. This could encourage them to pay their funding capital expenditure. share of the cost.

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Separate funding of growth costs could also prevent 4.16 WEST WAVE AQUATIC AND RECREATION CENTRE cross subsidisation of new developments by the existing The West Wave Aquatic and Recreation Centre population. Therefore separate funding could be activity provides total family fi tness and leisure and a considered fair, equitable and economically effi cient. range of well structured programs to promote health It could avoid Waitakere being seen as an excessively in the community. The aquatic based leisure and costly place for the development of residential and fi tness complex comprises a range of pools including business properties. leisure pools, spas, designated learn to swim pools, a hydrotherapy pool, a dive well, a hydro slide and a There are development and implementation costs competition pool. associated with separate funding methods. The benefi ts of funding the cost of growth separately are likely to The Recreation Centre provides space and support exceed such costs. for other recreation activities. The Fitness Centre provides fi tness based activities including access to the FUNDING SOURCES ‘Face2Face’ programme, Les Mills exercise classes and a range of programmes tailored to specifi c needs such Operating expenses as the Cardio Club, Arthritis group and Teens club. The Leisure Services activity is funded by a combination of rates, user pays, special funds and subsidies from The community outcomes to which the activity central government. primarily contributes This activity contributes primarily to the following A combination of rates and user charges is applied to community outcomes described in the LTCCP: Strong fund the community buildings. The level of user charges Communities, Healthy Lifestyles, First Call for Children should vary according to the nature of the group using and Lifelong Learning. the facility, with private groups paying more than community groups, and social service groups paying Distribution of benefi ts between the community as only a small contribution towards costs. a whole, any identifi able part of the community, and individuals Some activities such as Creative Communities From a cost recovery perspective, aquatic and are funded by central government, but the cost of recreational facilities are private goods producing administering such funding is met by the Council largely private benefi ts. The private use of these through rates. facilities also generates wider community benefi ts including: The Council may apply any of the funding sources • Many of the users of these facilities are youth. available under section 103 (2) of the Local Government The community as a whole benefi ts from youth Act 2002 to supplement the funding available from the sources identifi ed. involvement in sports. The more the City’s youth are involved in organised activities such as sport, the Capital expenditure less likely they are to become involved in crime and Cost of replacement and renewal of existing asset other ‘antisocial’ behaviour. capacities, clearing of backlog or enhancing the level • Participation in aquatic and recreational activities

of service may be funded mainly from borrowings and contributes to the health and vitality of the AND FINANCING POLICY REVENUE other appropriate sources available under section 103 community in general. (2) of the Local Government Act 2002. • The facility was built to international standards, providing the community with a facility that attracts The capital expenditures on assets that create visitors to sporting events. additional capacities to meet the demand resulting from the growth of the City may be funded mainly from

With the growth of population, the construction of SECTION THREE development contributions or fi nancial contributions additional aquatic and recreation capacities becomes (including developer agreements). Where necessary, necessary to meet the increasing demand. The the Council may also adopt other appropriate sources additional capacities created to meet the demand available under section 103 (2) of the Local Government generated by growth primarily benefi t new Act 2002. These funding details are presented in the developments. development contributions and fi nancial contributions policy.

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If such capacity augmentations result in raising the provided for growth could send proper cost signals to levels of service, a part of the benefi ts will accrue to developers. It prevents the transfer of costs from private existing ratepayers as well. The capital expenditures benefi ciaries to the community. Separate funding is incurred on replacement and renewal of existing asset effi cient, transparent, fair and equitable. capacities or clearing of backlog benefi t mainly the current ratepayers. FUNDING SOURCES

Period in or over which those benefi ts are expected Operating expenditure to occur Distribution of benefi ts analysis suggests that the The benefi ts accrue in both short and long term. operating costs of the aquatic centre should be allocated between the users and the community. Extent to which the actions or inaction of particular Accordingly, user charges are applied in combination individuals or a group contribute to the need to with property rates to fund the operating costs in order undertake the activity to make the facilities affordable to all sectors of the These activities are not undertaken to mitigate any community. negative effects of actions (or inaction) of individuals or groups of individuals. The Council may apply any of the funding sources available under section 103 (2) of the Local Government With the growth of population, the Council has to Act 2002 to supplement the funding available from the increase the asset capacities to meet the increased sources identifi ed. demand without compromising the levels of service desired. These relate directly to health and safety, Capital expenditure demand management and customer service levels: Cost of replacement and renewal of existing asset capacities, clearing of backlog or enhancing the level Costs and benefi ts, including transparency and of service may be funded mainly from borrowings and accountability consequences, of funding activity other appropriate sources available under section 103 distinctly from other activities (2) of the Local Government Act 2002.

Operating expenditure The capital expenditures on assets that create Since the users of these facilities could be identifi ed, additional capacities to meet the demand resulting it is possible to adopt separate funding methods. from the growth of the city may be funded mainly from However, funding the full cost of the services through development contributions or fi nancial contributions user pays could be a disincentive to use the services (including developer agreements). Where necessary, provided and this will reduce the desired social the Council may also adopt other appropriate sources benefi ts. The Council is committed to promoting wider available under section 103 (2) of the Local Government participation by providing equality of access to these Act 2002. These funding details are presented in the facilities. The Council’s Leisure Strategy emphasises development contributions and fi nancial contributions the need to maximise opportunities to participate in policy. leisure and recreation. Many users of the Aquatic

REVENUE AND FINANCING POLICY REVENUE Centre are youth with limited ability to pay. 4.17 ARTS, EVENTS AND COMMUNICATIONS The Arts, Events and Communications activity is Capital expenditure responsible for public relations; internal and external The funding of capital costs on the basis of those who communications including community consultation and beneﬁ t from them or those who cause them could engagement; environmental education; development of improve resource allocation within the community. The arts and culture; promotion of events and festivals in the capital costs related to replacement and renewal of City; and maintaining relationships with the central and SECTION THREE assets, clearing backlog and raising the levels of service regional government. arise primarily due to the need to serve the existing population; and the allocation of these costs to current The community outcomes to which the activity users or ratepayers is fair, equitable and efﬁ cient. primarily contributes This activity contributes primarily to the following The new developments place additional demand on the community outcomes described in the LTCCP: Strong facilities. Separate funding of the additional capacities Communities; Sustainable Environment; Vibrant Arts

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and Culture; Urban and Rural Villages; Whaiora; Communications is best met by a combination of Working Together and Waiora. property rates and user charges set at a level that supports Council’s objectives for that particular event. Distribution of benefi ts between the community as In addition, the Council may also use funding available a whole, any identifi able part of the community, and from external sources. individuals These services have the characteristics of mixed goods The Council may apply any of the funding sources (public good and private goods), and they produce both available under section 103 (2) of the Local Government private and public benefi ts. For example, there are direct Act 2002 to supplement the funding available from the benefi ts to those who actively participate in the arts sources identifi ed. and cultural activities and events (e.g. artists, cultural groups, audience). Capital expenditure The Council may fund the capital expenses from The Arts, Events and Communications activity borrowings and other appropriate sources available also contributes to the community by enhancing under section 103 (2) of the Local Government Act social cohesion, education and building a sense of 2002. community identity. Arts and culture also contribute to enhancing the quality of life by bringing life, prosperity 4.18 ANIMAL WELFARE and vitality to the City. Strong, creative communities The Animal Welfare activity provides a range of attract business and industry, generating employment services: registration of dogs, enforcement of dog opportunities and additional wealth to the community. and stock control, and enforcement of animal welfare These are public benefi ts. legislation. It also provides accommodation for impounded animals (a stock pound and accommodation Period in or over which those benefi ts are expected for animals seized for animal welfare issues or handed to occur in by owners); veterinary treatment for sick and Benefi ts accrue in both short and long term. injured animals; and promotion of the animal adoption programme for animals from Animal Welfare Waitakere. Extent to which the actions or inaction of particular This facility is also recognised as an animal welfare individuals or a group contribute to the need to facility and as such, must comply with the requirements undertake the activity protecting animals in general which are complementary These activities are not undertaken to mitigate any with dog control requirements. negative effects of actions (or inaction) of individuals or groups of individuals. Community outcomes to which the activity primarily contributes Costs and benefi ts, including transparency and The Animal Welfare activity contributes primarily to the accountability consequences, of funding the following community outcomes described in the LTCCP: activity distinctly from other activities Sustainable Environment; Urban and Rural Villages; Since the services provided by Arts, Events and Green network; Waiora and Strong Communities. Communications are a mix of public and private goods, and merit goods, the benefi ts of separate funding Distribution of benefi ts between the community as appear to be limited. a whole, any identifi able part of the community, and AND FINANCING POLICY REVENUE individuals Those who directly benefi t from these activities From a funding perspective, this activity produces a could be identifi ed and costs could be allocated mix of private and public goods. The private goods accordingly. However, the allocation of all costs to element provides a direct benefi t to the owners of direct benefi ciaries could make activities such Arts and animals. The public goods element generates benefi ts Culture less accessible to economically disadvantaged to the entire community. Animal control improves the individuals and groups. This may reduce the social safety to the community in general and cleanliness and SECTION THREE benefi ts. environmental quality in public areas.

FUNDING SOURCES Period in or over which those beneﬁ ts are expected to occur Operating expenditure Beneﬁ ts of this activity accrue both in the The allocation of costs relating to Arts, Events and short term and the long term.

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Extent to which the actions or inaction of particular Capital expenditure individuals or a group contribute to the need to The Council may fund the capital expenses from undertake the activity borrowings and other appropriate sources available This activity has become necessary largely due to the under section 103 (2) of the Local Government Act negative effects of the irresponsible behaviour of animal 2002. owners.

4.19 FIELD SERVICES The Council is legally obliged to undertake this activity The Field Services activity is undertaken to protect in Waitakere to enforce the dog control and stock health and safety of the general public. The services impoundment legislations such as Dog Control Act 1996 provided by this activity ensure that compliance and amendments, the Animal Welfare Act 1999, the levels are maintained or enhanced in the areas of (stock) Impounding Act 1955 and Waitakere Dog Bylaw environmental health, environmental protection, bylaws, No. 29. building enforcement, pool fencing, general roading complaints and parking services. Costs and benefi ts, including transparency and accountability consequences, of funding activity distinctly from other activities Community outcomes to which the activity Since the services provided by Animal Welfare are a primarily contributes mix of public and private goods, the benefi ts of separate The Field Services activitiy contributes primarily to funding are limited. the following community outcomes described in the LTCCP: Waiora; Urban and Rural Villages and Strong It is possible to identify the animal owners who benefi t Communities. directly from the Council service and allocate cost to them. However, any attempt to recover the full cost Distribution of benefi ts between the community as could act as a disincentive for dog registration and the a whole, any identifi able part of the community, and enforcement costs are likely to increase. individuals Field services protect wider community interests by Some activities benefi t the whole community. Separate enforcing laws and bylaws in Waitakere. They ensure funding of the costs associated with such services a safe, secure and sustainable built and natural may not produce additional benefi ts. This suggests the environment. From a funding perspective most of these recovery of costs of Animal Welfare activity by a mix of services can be characterised as public goods, and separate funding and property rates. the benefi ts accrue to wider community. For example, enforcement of action in relation to illegal bush and tree FUNDING SOURCES clearance, earthworks and other District Plan breaches protect the City’s environment and produce benefi ts to a Operating expenses section of the community or the whole community. The operating costs of Animal Welfare may be funded from a mix of separate funding such as fees, fi nes and Some services may be treated as private goods and penalties, and property rates. Dog registration fees can they produce private benefi ts. For example, inspection only be used for the activities that are legislated by the of pool fencing will ensure safety of children and

REVENUE AND FINANCING POLICY REVENUE Dog Control Act – i.e. dog control enforcement. The enforcement of minimum construction standards costs of impounding and complaints are recovered from benefi ts the property owners. the animal owner through impounding fees and fi nes. Period in or over which those benefi ts are expected When those costs cannot be fully recovered from the to occur animal owner, they may be funded by a combination of Benefi ts of this activity accrue in both the short term and rates and dog registration fees. Thus, property rates are the long term. SECTION THREE used to supplement both dog control enforcement and the animal welfare components. Extent to which the actions or inaction of particular individuals or a group contribute to the need to The Council may apply any of the funding sources undertake the activity available under section 103 (2) of the Local Government This activity has become necessary partly due to the Act 2002 to supplement the funding available from the negative effects of the breaches of laws and by-laws by sources identifi ed. individuals or groups of individuals.

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Field Services activities are also undertaken to meet a The Council may apply any of the funding sources statutory requirement arising from: available under section 103 (2) of the Local Government • Resource Management Act 1991 Act 2002 to supplement the funding available from the • Building Act 2004 sources identifi ed. • Local Government Act 2002 Capital expenditure • Food Act 1956 and Food Hygiene Regulations 1974 The Council may fund the capital expenses from • Health Act 1956 borrowings and other appropriate sources available • Litter Act 1979 under section 103 (2) of the Local Government Act • Traffi c Regulations 1976 2002. • Sale of Liquor Act 1989 4.20 CONSENT SERVICES • Fencing of Swimming Pools Act 1987 The Consent Service activity provides a range of • Hazardous Substances and New Organisms Act services: resource consent processing and associated 1996 activities; building consent processing and regulatory • Bylaws of the Waitakere City Council. administration (Land Information Memoranda / licensing and administration and associated administrative Costs and benefi ts, including transparency and activities. accountability consequences, of funding the activity distinctly from other activities The Resource Consents service ensures that work and Where the benefi ciary of a particular service can development (public and private) taking place within be identifi ed, the relevant costs could be funded Waitakere meets the Council’s obligations under the separately in the form of fees. It will make service costs Resource Management Act 1991, and the Waitakere transparent, and shift the cost burden to those who benefi t from the service. District Plan. Building consents processes ensure that all buildings in the City comply with legislation, and are Where it is possible to identify the offenders, separate safe for their occupants and intended use. EcoWater funding in the form of fi nes could make the offenders Development Services delivers consent services, and accountable and discourage such offences. This could specialist advice relating to the three waters under the benefi t the community as a whole. It could also shift Resource Management Act 1991 and Building Act 2004. a part of cost of enforcement from ratepayers to the offenders. Community outcomes to which the activity Some activities benefi t the whole community. Separate primarily contributes funding of the costs associated with such services may The Consent Service activitiy contributes primarily to not be cost effective. Such costs need to be funded the following community outcomes: Green Network; collectively by whole community. Strong Communities; Urban and Rural Villages; Sustainable Environment; Strong Economy; Sustainable FUNDING SOURCES and Integrated Transport and Working Together.

Operating expenses Distribution of benefi ts between the community as AND FINANCING POLICY REVENUE Where the benefi ciary of a particular service can be a whole, any identifi able part of the community, and identifi ed, the Council may levy fees for the service individuals provided (e.g. vehicle crossing inspection fees, road Regulation and enforcement ensures a safe, secure opening notice fees, pool inspection fees and food and sustainable built and natural environment. These licence inspection fees). activities produce a mix of private and social benefi ts.

Where it is possible to identify the offenders, the Resource Consents Processing: The Resource SECTION THREE Council may imposes ﬁ nes and penalties (e.g. parking Management Act 1991 and the District Plan ﬁ nes) because of the negative effect caused by the requirements are designed for sustainable management breach of laws or by-laws. of natural and physical resources. The District Plan is prepared for the protection Where separate funding cannot be applied, the Council of the environment. The resource consents may fund such costs from property rates. that relate to heritage matters and trees also

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generate signifi cant public benefi ts. The processing The services provided by this activity are required to of resource consents under the requirements of the ensure sustainable management of natural and physical Resource Management Act 1991 and District Plan, resources. To ensure that the actions of individuals therefore, primarily benefi t the whole community. and groups do not cause negative effects that would endanger community wellbeing and the environment. Subdivisions are created mainly for private benefi t. Work carried out by the Council associated with Costs and benefi ts, including transparency and processing subdivision engineering plans and scheme accountability consequences, of funding activity plans provide direct benefi ts to the developers as well distinctly from other activities as the community. Since it is possible to identify those who cause potential negative effects by undertaking activities such as Building Consents Processing: Building Consents subdivisions and buildings, separate funding of these ensure that all buildings in the City comply with activities is possible. User charges and fi nes encourage legislation and are safe for their occupants and compliance with the regulations, which are intended intended use. This service has the characteristics to benefi t the community. It is also possible to identify of private goods and the benefi ts primarily accrue to those who benefi t from the regulatory and advisory private individuals and organisations that apply for the services provided by Council and charge them the cost consents, and those who will occupy the buildings. of such services. It can also produce some indirect benefi ts to the community. Resource management is critical for achieving sustainable development for the City. The allocation of All the other services provided by this activity, in costs to those who benefi t from the services, or those addition to supporting internal operations, deliver a who cause such costs, is benefi cial to the community mix of private and public goods generating both private because the community does not have to bear such and public benefi ts. Advice and information primarily costs. It is also a transparent method of funding the benefi ts the individuals seeking advice, but the provision services provided. of information and advice also offer considerable opportunities for promoting Council’s wider goals which There are costs involved in separate funding, but the produce benefi ts to the wider community. Enforcement benefi ts of separate funding are likely to exceed such of compliance with the provisions of the Resource costs. Where it is not effi cient or appropriate to have Management Act 1991 and the District Plan generally separate funding, Council may use other sources of benefi t the community because non-compliance by funding. applicants can impose social and environmental costs, which could be avoided by enforcement. However, user pays is not a practicable and cost effective funding method for some services such Period in or over which those benefi ts are expected as verbal advice. In addition, there is considerable to occur scope for promoting Council’s wider goals through the Benefi ts are ongoing and spread over a longer time information and advice function. The Council may fund span these services from a mix of sources.

REVENUE AND FINANCING POLICY REVENUE Extent to which the actions or inaction of particular Funding sources individuals or a group contribute to the need to The considerations stated above can be best met by a undertake the activity mix of user charges, ﬁ nes and rates funding. Activities The Consent Services activity is undertaken to meet which directly beneﬁ t the individual property owners are certain legal requirements. These include Resource funded from user pays (e.g. subdivision consents, land Management Act 1991, the Local Government Act use consents, buildings consents, and structure plans 2002, the Building Act 2004, and the various food and and provision of land information etc.). The provision of SECTION THREE environmental health Acts. The Council is required to hard copy information is also funded by user charges observe the provisions of the relevant Act and be an unless there is a clear ‘public good’ element. impartial decision maker weighing the evidence placed before it by the parties. In addition, the Council has the Resource consents relating to listed heritage items requirements of our own District Plan prepared under and general tree clearance are rates funded. Resource the Resource Management Act 1991 to follow, which management services are also funded from rates relate to land use in the City. included Council initiated Plan Changes.

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Verbal advice and other assistance may be rates funded The effects of the actions or inaction of individuals – shifting a small proportion of the cost of this function or a group contribution to this activity from users of the service onto the community as a Some of the activities such as the review of District Plan whole. need to be undertaken as a legal obligation under the Resource Management Act 1991. Some activities have The Council may apply any of the funding sources arisen in part due to the need to mitigate the negative available under section 103 (2) of the Local Government effects of population growth and business activities. Act 2002 to supplement the funding available from the sources identifi ed. The costs and benefi ts of funding the activity distinctly from other activities The services provided by this activity group constitute Capital expenses a mix of public and private goods. While public goods The Council may fund the capital expenses from element needs to be funded by property rates, the borrowings and other appropriate sources available private goods may be funded by separate funding under section 103 (2) of the Local Government Act methods such as fees and charges. However, the 2002. application of separate funding tools to recovery the full cost of the services could act as a disincentive to use 4.21 RESOURCE MANAGEMENT them, reducing the overall benefi t to the community. The functions of the Resource Management group of activities include monitoring the District Plan Funding sources implementation and the development of plan changes; These activities are funded mainly from rates, assisting the Council to lead by example in areas supplemented by user pays. Where the benefi ts such as energy saving, fl eet management, waste extended beyond the Waitakere City limits, a part of the costs may be funded by external sources. minimisation and recycling, and encouraging and assisting the local community to adopt more sustainable The Council may apply any of the funding sources practices; and protecting those aspects of both the available under section 103 (2) of the Local Government natural and built environment that have been identifi ed Act 2002 to supplement the funding available from the as having heritage value for future generations. sources identifi ed.

Community outcomes to which the activity 4.22 VEHICLE TESTING STATION primarily contributes The core business of the testing station is the provision The Resource Management activity contributes of vehicle safety inspections (Warrant of Fitness (WOF). primarily to the following community outcomes Other services include: described in the LTCCP: Green Network; Urban • Emissions testing for petrol and diesel vehicles and Rural Villages; Strong Economy; Sustainable • Motor registrations/licensing Environment; Vibrant Arts and Culture. • Change of ownership processing • All registration plate transactions Distribution of beneﬁ ts between the community as • Road User Charges (RUC) processing a whole, any identiﬁ able part of the community and • Driver licensing testing individuals The Council offers these services to the community

The majority of these activities help the Council meet AND FINANCING POLICY REVENUE to promote safe driving by ensuring that drivers are its legislative requirements and Council’s own strategic appropriately certifi ed to drive, that they are informed objectives, and are for the benefi t of the community as with regard to vehicle and road safety and they can a whole. The support provided to adopt environmentally meet the rules and regulations of vehicle maintenance responsible business practices is a private benefi t and safety. It also offers an independent inspection accruing to the businesses with positive external effects prior to purchase of a vehicle. This activity is a source of on the environment. revenue to Council. SECTION THREE The period in or over which benefi ts are expected to The community outcomes to which the activity occur primarily contributes The benefi ts of this group of activities are ongoing and This group of activities contributes primarily spread over the long term. to the following community outcomes Sustainable Environment and Strong Communities.

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Distribution of benefi ts between the community as 4.23 WAITAKERE QUARRY a whole, any identifi able part of the community, and The Waitakere Quarry owned by the Council individuals supplies crushed and uncrushed basalt rock for road From a funding perspective the services provided construction. Quarry operations, under licence to a by this activity are private goods, and those who use quarry operator, include drilling, blasting, extraction the services benefi t directly. The emissions testing of crushed and uncrushed rock. They also include can contribute to minimise excessive emissions from crushing, screening and stockpiling of aggregate. vehicles; and this improves energy effi ciency of vehicles which is a private benefi t. The reduction of air pollution The Quarry contributes to economic activity within Waitakere by providing employment within the local and having sustainable energy promoted through community, and producing revenue for the Council in vehicle emission testing service produce wider benefi ts the form of royalties. to the community. Community outcomes to which the activity The period in or over which benefi ts are expected to primarily contributes occur This activity contributes primarily to the following Benefi ts accrue both in the short term and the long community outcomes: Strong economy; Sustainable term. and Integrated Transport; Green Network and Urban and Rural Villages. The effects of the actions or inaction of individuals or a group contribution to the activity Distribution of benefi ts among different groups Emission testing is a special service undertaken to From a funding perspective this activity provides a minimise air pollution caused by excessive emissions private good, and those who use the services benefi t from vehicles. directly. It also benefi ts those who are employed.

Costs and benefi ts of separate funding The Waitakere Quarry activity can produce negative The adoption of user pays for vehicle testing services environmental impacts which will be borne by the entire is appropriate as these services are private goods community. that produce private benefi ts. However, user charges approach to fund the entire cost of emission testing may Distribution of benefi ts over time discourage emission testing, thus reducing the level of Benefi ts accrue mainly on the short and medium term, wider public benefi ts expected. but it can have long term negative impacts.

Whether the activity is needed to mitigate negative FUNDING SOURCES effects This activity is not undertaken because of any negative Operating costs effects. Since the testing station operates as a commercial enterprise, its operations need to be funded from user Costs and beneﬁ ts of separate funding charges. Emission testing which generates wider public

REVENUE AND FINANCING POLICY REVENUE The adoption of user pays for the Quarry services is benefi ts may be funded from a mix of rates and user appropriate as these services are private goods that charges. produce private benefi ts. FUNDING SOURCES The Council may apply any of the funding sources available under section 103 (2) of the Local Government Operating costs Act 2002 to supplement the funding available from the Since the quarry operates as a commercial enterprise, SECTION THREE sources identifi ed. its operations need to be funded from user charges.

Capital expenditure Capital expenditure The Council may fund the capital expenses from The Council may fund the capital expenses from borrowings and other appropriate sources available borrowings and other appropriate sources available under section 103 (2) of the Local Government Act under section 103 (2) of the Local Government Act 2002. 2002.

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4.24 SUPPORT SERVICES Human Resources This group of activities provide services required by the Human Resources provide a range of services for internal operations of the organisation for the delivery of the organisation to become an employer of choice. the Council services to the community. In brief, following These include an in house specialist recruitment are the key activities: service; specialist human resources; organisational development; payroll services; account management Chief Executive’s Offi ce services to managers; promotion and monitoring sound The Chief Executive Offi cer leads the organisation. The health and safety practices and employee wellbeing; Chief Executive Offi cer is accountable and ensures performance reporting; strategies and support to the elected members are well informed on issues. The organisational change and development; learning and role also has external community, regional and national development initiatives; and management of strategic commitments. employee relationships and partnerships.

Quality Assurance Information Management Quality Assurance plays a signifi cant role in supporting The Information Management (IM) activity helps the governance function. It has an independent status the organisation run effectively by providing reliable that enables it to provide frank independent professional and fl exible IM systems, technical infrastructure and advice and discharge its stewardship function. This security. The team also develops the organisation’s activity includes risk management, internal audit and capability by enhancing existing IM processes and ensuring proper governance of council controlled systems. IM activities also contribute to other areas organisations and council organisations. of the Council and its partners who may require technology to create/deliver new services. Finance Finance provides services in fi nancial management Legal and Insurance Services and reporting to the Council and external parties. It is Legal and Insurance Services provides a broad range responsible for the production the Annual Plan, and of legal services to the Council and manage legal contributes to the preparation of Long Term Council advice sourced externally. This group also manages Community Plan. It maintains a direct relationship with the Council’s insurance programme and handling of ratepayers through the management of the rates and insurance claims. water billing process.

The Council undertakes the activities because it is Maori Relationships required to comply with the law in its capacity as The Maori Relationships activity incorporates: territorial authority, as a regulator and as a good communication and engagement and relationship corporate citizen. Insurance is arranged as a prudent part of good stewardship of Council assets. management between the Council and the key Maori stakeholders; developing appropriate policy and Service Management strategy to meet the Council’s obligations to Maori; Service Management provides business and operational assisting in developing and delivering learning and support functions across the City Services Directorate. development programmes which promote better

understanding between the organisation and key Maori AND FINANCING POLICY REVENUE Business Support includes forecasting and planning; stakeholders; providing specialist cultural advice on internal quality assurance; documentation and process Maori protocol; and supporting Te Taumata Runanga review; activity plan development; and undertaking to achieve strategic goals which promote Maori social, business analysis and reviews. Operations Support cultural, economic and environmental wellbeing. provides ofﬁ ce management and accounting system support, project support, tenancy management, contract Democracy and Support Services

administration support and secretarial services. SECTION THREE Democracy and Support Services provide support for the Council and its Committees and Elected Members Project Services and Waitakere City Holdings and external groups as Project Services provides support for the following approved from time to time. It also processes travel activities: requirements; manages civic functions; and sister city relationships. Transport Asset Management: Project

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design, delivery of work programmes and management Extent to which the actions or inaction of particular of ongoing road maintenance. individuals or a group contribute to the need to undertake the activity Water Projects: Delivery of Annual Plan work These activities are primarily undertaken to meet the programmes, and draughting and surveying services for internal operations and governance of the organisation. the organisation. Maori Relationships activity in particular has arisen Special Projects: Development of the project plans, because of the Council’s commitment to the Treaty of all aspects of project and contract procurement Waitangi. Waitakere City Council adopts a pro-active management including budget, quality, risk, approach to the Treaty, recognising it as the basis of communication and stakeholder management, and the Council’s relationship with Maori, and identifying the provision of technical expertise and value engineering. Treaty as one of its strategic priorities.

Customer Services In general support activities are required for the Council Customer Services is the initial point of contact for to meet its statutory obligations arising from: phone and email customer requests and transactions • Local Government Act 2002 and the fi rst point of contact for face to face customer transactions. Customer Services also provide • Resource Management Act 1991 specialised account services for key building and • Waitakere Ranges Heritage Area Act 2008. resource management clients to assist in the facilitation of application approvals. Costs and benefi ts, including transparency and accountability consequences, of funding activity Community outcomes to which the activity distinctly from other activities primarily contributes These services meet the internal needs of the These activities collectively contribute primarily to all the organisation, except Democracy and Support Services community outcomes described in the LTCCP. which provide services to the community as well. Since the benefi ts of support services indirectly benefi t the Distribution of benefi ts between the community as entire community, separate funding is not feasible. a whole, any identifi able part of the community, and individuals FUNDING SOURCES The activities stated under organisation support Operating costs services are provided for governance, management and The operating costs of these services are funded administration of the organisation and the delivery of mainly from property rates, and supplemented by other services to the community. The benefi ts accrue to the sources. whole community in general. The Council may apply any of the funding sources Democracy and Support Services provide a mix of available under section 103 (2) of the Local Government private and public goods, which benefi t individuals Act 2002 to supplement the funding available from the as well as the entire community. Democratic and sources identifi ed. consultative processes enable the community to REVENUE AND FINANCING POLICY REVENUE participate in the decision making process and infl uence Capital costs decisions on a continuing basis. Transparency of The Council may fund the capital expenses from decision making reinforces public confi dence and borrowings and other appropriate sources available trust in the democratic process. It strengthens the under section 103 (2) of the Local Government Act community. The benefi ts of Maori Relationships accrue 2002. primarily to the Maori community. SECTION THREE Period in or over which those benefi ts are expected to occur The benefi ts are ongoing and accrue over short and the long term.

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The costs of services which are public goods in 5 THE OVERALL IMPACT OF THE character or which generate positive externalities to FUNDING SOURCES the whole community are funded from rates as it is a fair and equitable to share the costs by the entire The allocation of revenue needs to those who directly community. benefi t (benefi t principle) from the services or those who are responsible for causing (causation principle) When there are potential confl icts among the four the costs to Council is considered to be an effi cient elements of wellbeing, the Council adopts a mix and effective method of funding the services which of funding sources to achieve some balance in the have the characteristics of private goods. User pays outcomes. Council attempts to reduce the fi nancial methods generally contribute to the current and burden on groups, who in the opinion of the Council future environmental and economic wellbeing of the need to be supported, by providing part funding through community through effi cient use of scarce resources. general rates. Council also attempts to reduce the burden of funding on the entire community by facilitating The Council also applies targeted rates where such partnerships with government agencies and other separate funding is needed because of specifi c territorial local authorities and regional authorities. circumstances. Application of targeted rates to fund activities that benefi t separately identifi able groups The adoption of a mix of fi nancing methods stated can also be effi cient and equitable. Such funding above enables the Council to achieve a balance in techniques can contribute to the current and future the overall impact on the current and future social, social environmental, economic and cultural wellbeing economic, environmental and cultural wellbeing of the of the community. community.

REVENUE AND FINANCING POLICY REVENUE SECTION THREE

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amount due for the year, excluding the penalty on that RATES REMISSION POLICIES instalment one, but including any arrears owing as at the RATES REMISSION POLICY 1: commencement of that year, by the penalty date for the Remission of water charges where there is a leak instalment two. 2. Remission of one penalty on an instalment in any one rating year will be considered where payment has been OBJECTIVE late due to signifi cant family disruption such as recent To assist ratepayers who have recorded excessive water redundancy or unemployment, or illness, or accident to rates due to a leak in their private water reticulation system the ratepayer or illness or the death a family member. serving their rating unit. 3. Remission of an instalment penalty will be granted if the ratepayer is able to provide evidence that the payment CONDITIONS AND CRITERIA of a rates instalment has gone astray in the mail, or the 1. The policy will apply to applications from ratepayers late payment has otherwise resulted from matters outside who have recorded excess water rates greater than their his/her control. Each application for instalment penalty normal consumption charges due to leakage in their remission will be considered on its merits, and remission property’s water reticulation system. will be granted where it is considered just and equitable to do so. 2. All applicants must submit their request in writing. 3. Repairs must be made expeditiously from the time that the leak is detected, and proof of the repairs to their RATES REMISSION POLICY 3: Remission of property’s water reticulation must be submitted for Uniform Annual General Charges and Targeted verifi cation, i.e. a plumber’s repair account. Rates Levied as Uniform Annual Charges 4. The ratepayer will be charged the full charge for assessed normal consumption. OBJECTIVE 5. The excess consumption over the assessed average The objectives of this policy are (A) To enable Council to consumption will be charged at the cost price of the water grant rates remission where more than one uniform annual to the Council. general charge and/or targeted rate levied as a uniform 6. The balance of the account, being the excess annual charge is assessed on rating unit because that rating consumption in paragraph 5 multiplied by the difference unit comprises more than one separately used or inhabited between the unit charge for water and the cost price of part and where: water to the Council, will be remitted. 7. The ratepayer may be offered the opportunity to pay (a) The separate parts of the rating unit are used as part of the account off by instalments where the amount is specifi ed types of business enterprises; or considered signifi cant. (b) The rating unit is used for residential purposes and includes a separately inhabited part occupied by a RATES REMISSION POLICY 2: Remission of member of the immediate family of the owner of the rating Penalties on Rates unit; or (c) The rating unit is used solely for vehicle parking in

RATES REMISSION AND POSTPONEMENT POLICIES REMISSION RATES conjunction with a building on a rating unit in the same OBJECTIVE ownership. The objective of the penalty on rates remission policy is for the Council to act fairly and equitably in relation to (B) To enable Council to grant rates remission on land where any particular ratepayer, or to ratepayers in general, in its no building consent may be issued, or where the principal consideration of any situation where rates have not been part of a rating unit is located in the area of an adjacent received by the Council by the date on which a penalty on local authority and in the circumstances it is considered by the Council to be equitable to do so. SECTION THREE any rates instalment is due, or by the date on which any arrears penalty on unpaid rates owing at the commencement of a rating year is levied. CONDITIONS AND CRITERIA • Rating units used as hotels, motels, storage units, or CONDITIONS AND CRITERIA rest homes or private hospitals, each operated as single 1. Penalties incurred on instalment one of any year will be business enterprises and rated at the Business Sector automatically remitted where the ratepayer pays the total rate may have remitted all Uniform Annual General

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Charges and Targeted Rates levied as Uniform Annual the land may be put (for example, residential, commercial, Charges except for the fi rst one of such charges. industrial or other non-farming development). Targeted Rates levied as Uniform Annual Charges for a service actually provided to each separate part of the Farmland is defi ned for this purpose as land that is separately rating unit shall not be eligible for remission. rated and used principally for agricultural, horticultural • A rating unit used for residential purposes and which or other pastoral purposes or for the keeping of bees or includes a separately inhabited part, may apply to be poultry or other livestock; and “farming purposes” has a treated as having only one separately used or inhabited corresponding meaning. part if the second part is occupied by a member of the immediate family of the owner, who also resides on the CONDITIONS AND CRITERIA property, provided that the residential unit meets the (i) Upon written application from the ratepayer of the rating requirement of a minor household unit and is categorised unit and subject to the payment of a valuation fee, the as a “granny fl at” under clause 1(a)(iii) of the description Council will cause a rates postponement value to be of the rating system. determined. • Owners wishing to claim a remission under this policy The rates postponement value is to be determined: may be required to make a written application and to (a) So as to exclude any potential value that, at the date supply such evidence as may be requested to verify that of valuation, the rating unit may have for residential, a remission should be granted under this policy. While commercial, industrial or other non-farming use; and a remission may be granted for the current year, no consideration will be given to applications relating to prior (b) So as to preserve the uniformity and equitable years. relativity with comparable parcels of farmland within Waitakere City, the values of which do not contain RATES REMISSION POLICY 4: Council Owned any such potential value. (ii) There will be no right of objection to the rates Non-revenue Producing Properties postponement value determined, except to the extent that it is proved that the rates postponement value does not preserve uniformity with existing District OBJECTIVE OF THE POLICY Valuation Roll values for comparable rating units within To simplify the procedures and to minimise the administration the Waitakere City district having no potential value for costs. residential, commercial, industrial or other non-farming development. CONDITIONS AND CRITERIA (iii) The portion of the rates postponed for any rating period All properties owned by the Council excluding rateable shall be an amount equal to the difference between the properties that are generating income from a residential / amount of the rates of that period calculated according commercial tenancy or lease and / or signifi cantly funded to the rateable value of the rating unit and the amount through user charges, and also excluding properties where of the rates that would be payable for that period if the the conditions of the tenancy, lease or licence provide that rates postponement value of the rating unit were its the tenant, lessee or licensee is liable for payment of rates. rateable value. (iv) The Council will add a postponement fee to the rates RATES REMISSION AND POSTPONEMENT POLICIES REMISSION RATES RATES POSTPONEMENT postponed for the period between the due date and the date that they are paid. This fee will not exceed POLICIES an amount that covers the Council’s fi nancial costs. Interest will be charged on the rates postponed at a rate RATES POSTPONEMENT POLICY 1: Farmland equivalent to the Council’s average borrowing rate. where rateable value is infl uenced by potential (v) The amount of rates postponed plus the interest non-farm use accrued on farmland in urban areas will be deemed to SECTION THREE have been written off after fi ve years. (vi) The ratepayer must be the current occupier of the rating OBJECTIVE unit. To provide relief to the owners of farmland where the rateable value of a rating unit that is used for farming purposes is in (vii) The rating unit must be used solely for some signifi cant way attributable to the potential use to which farming purposes, be an economical unit in

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the opinion of the Council and must have been farmed CONDITIONS AND CRITERIA as such continuously for a period of not less than three In order to be eligible for rates postponement under this years immediately preceding the date of the application policy, the rating unit must: under this policy. (a) be situated within an area that has been rezoned for (viii) All rates whose payment has been postponed under this commercial and industrial use, provided that rezoning policy become due and payable immediately on: has not been done at the request of the rating unit (a) the rating unit ceasing to be farmed as an economic owner. Ratepayers can determine the zoning of their unit in the opinion of the Council; or property by inspecting the District Plan, the copies of which are available for public inspection at Council (b) the rateable value of the rating unit ceasing to be offi ces and libraries. attributable, in some signifi cant way, to the potential use to which the land may be put for residential, (b) Be used as a “residential” property for general rating commercial, industrial or other non-farming purposes. Ratepayers wishing to ascertain whether their development; or property is treated as a residential property may inspect the Council’s rating information database at the Council (c) a transfer of occupation of the rating unit, in whole offi ces. or in part, whether by sale, lease, licence or other agreement, otherwise than as a transfer of an estate (c) Be a rating unit owned by the applicant at the time of pursuant to will. any change to the District Plan that caused the increase in the value of the rating unit or 1 July 2003, whichever date is the later OTHER CONDITIONS The policy will apply from the beginning of the next rating OTHER CONDITIONS period in which the rate postponement value is determined That the rates so postponed would be immediately payable and will not be backdated to prior years. after 5 years or when the property ceases to be the residence of the applicant, is sold, or on the death of the The amount of rates postponed, together with any applicant, whichever occurs fi rst. postponement fee will be secured by registration as a statutory land charge on the title of the rating unit, at the That Council will add a postponement fee to the rates expense of the applicant. postponed for the period between the due date and the date that they are paid. This fee will not exceed an amount that RATES POSTPONEMENT POLICY 2: Residential covers the Council’s fi nancial costs. Interest will be charged lands where rateable value is infl uenced by on the rates postponed at a rate equivalent to the Council’s average borrowing rate. rezoning That the land area in excess of 1100 square metres will be OBJECTIVE rated at the rateable value of the land and the rates due are To ensure that the owners of residential rating units are not payable in accordance with the Council’s rates collection penalised because of the increases in the value of rateable procedures. units due to the rezoning decisions by Council.

RATES REMISSION AND POSTPONEMENT POLICIES REMISSION RATES Those ratepayers wishing to claim rate postponement under In order to relieve any hardship that may be suffered by this part of the policy must make an application on the residents of properties that are located in residential areas prescribed form available from the Council ofﬁ ce. whose property values are affected by a change in the District Scheme, Council may postpone the amount of rates PROCEDURE calculated on the difference between the land value and a The amount of rates to be postponed will be calculated “special value” assessed on the same basis that existed prior on the difference between the land value and the “special SECTION THREE to the enactment of the Local Government (Rating) Act 2002 value” assessed on the same basis that existed prior to the for the residential portion of the land area not exceeding 1100 enactment of the Local Government (Rating) Act 2002 for square metres. the residential portion of the land area not exceeding 1100 square metres.

138 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE RATES REMISSION AND POSTPONEMENT POLICIES

RATES POSTPONEMENT POLICY 3: 9. The Council will add a postponement fee to the rates postponed for the period between the due date and Postponement of Rates on the Grounds of the date that they are paid. This fee will not exceed Severe Financial Hardship an amount that covers the Council’s fi nancial costs. Interest will be charged on the rates postponed at a rate equivalent to the Council’s average borrowing rate. OBJECTIVE 10. The policy will apply from the beginning of the rating year To assist ratepayers, who in the opinion of Council, are in which the application is made, although the Council experiencing severe fi nancial circumstances that affect their may consider backdating the postponement of rates, if in ability to pay their rates. the circumstances it considers it fair and equitable to do so. CONDITIONS AND CRITERIA 11. The amount of rates postponed, together with any 1. A full enquiry will be carried to determine that severe postponement fee will be secured by registration as a fi nancial hardship exists, or would be caused by the non- statutory land charge on the title of the rating unit, at the postponement of all or part of the rates payable. expense of the applicant. 2. When considering whether severe fi nancial hardship exits, all of the ratepayer’s personal circumstances will The term of any rates postponed will be until: be relevant, including factors such as age, physical or • the death of the ratepayer; or mental disability, injury, illness, and family circumstances. • the ratepayer ceases to be the owner of the rating unit; or Access to other sources of fi nancial assistance will be taken into account in determining the amount of rates • the ratepayer ceases to use the property as his/her postponement (if any). residence; or 3. The rating unit in respect of which an application for • a date specifi ed by the Council in any particular case rates postponement is being made must be used by provided that if the fi nancial circumstances of the the applicant solely for residential purposes, and must applicant improve to such an extent that in the Council’s have been owned by the applicant for not less than the opinion, an application for rates postponement would immediate past two years. However if the applicant has not be granted, then after advising the applicant, the owned the property for less than two years, and his/her terms of the rates postponement may be varied. The total fi nancial circumstances have changed signifi cantly since postponed rates or any part thereof may be paid at any the date of acquisition, an application may be considered. time. The applicant may elect to postpone the payment of any lesser sum than that which would be entitled to be 4. In the Council’s opinion, it is satisfi ed that the ratepayer is postponed pursuant to this policy. unlikely to have suffi cient funds remaining after payment of rates, for normal health care, proper provision for maintenance of his/her home and chattels at an adequate standard as well as making provision for normal day to day living expenses. In this regard, details of the results of any application for a special benefi t or similar assistance from Government Agencies will be taken into account.

5. The ratepayer must not own any other rating units, AND POSTPONEMENT POLICIES REMISSION RATES investment properties or other realisable assets. 6. The applicant must make application to the Council on the prescribed form. 7. As a general rule, if any rates postponement is granted, the ratepayer must pay the ﬁ rst $520 of the rate account

each year. SECTION THREE 8. If rates postponement is granted, the ratepayer must make arrangements to the Council’s satisfaction for payment of future rates that are payable, e.g. by setting up a system for regular payments.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 139 POLICY ON REMISSION AND POSTPONEMENT OF RATES ON MAORI LAND

Section 102(4)(f) of the Local Government Act 2002 provides The policy on remission and postponement of rates on Maori that a local authority must adopt a policy on the remission freehold land is that no rates on such land shall be remitted and postponement of rates on Maori freehold land, and that or postponed, there being no such land currently in the City. policy must be adopted as part of the Long Term Council Community Plan. In the event that at some future time any land in the City does become subject to Part 4 of the Local Government Maori freehold land in this context is deﬁ ned in Section 5 (Rating) Act 2002, the policy be reviewed in the light of the of the Local Government (Rating) Act 2002 as land whose circumstances relating to that land. beneﬁ cial ownership has been determined by the Maori Land Court by freehold order. There is currently no such land in Waitakere City.

Section 108(3) states: “For the avoidance of doubt, a policy adopted under Section 102(4)(f) is not required to provide for the remission of, or postponement of the requirement to pay rates on Maori freehold land.” POLICY ON REMISSION AND POSTPONEMENT OF RATES ON MAORI LAND ON MAORI AND POSTPONEMENT OF RATES POLICY ON REMISSION SECTION THREE

140 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B POLICY ON PARTNERSHIPS WITH THE PRIVATE SECTOR

1. In accordance with Section 107 of the Local Government • The particular project or service are of such a scale Act 2002 (Act) (see over page), Waitakere City Council that they would not otherwise be able to be provided has adopted and shall comply with this policy in relation by the Council without entering into a partnership with to the partnerships with the private sector. the private sector 2. The Council recognises the value of forming partnerships • Benefi ts will be achieved as a consequence of the with private sector entities and the assistance that these private sector partnership, which benefi ts are greater partnerships can provide in enhancing development, than any costs of the partnership to the community. community well-being and contributing towards achieving 7. The Council will not be required, but may elect, to consult community outcomes. with the community in respect of any proposal to provide 3. The Council will consider partnership arrangements with funding or other resources to any form of partnership the private sector for the provision of infrastructure and/or with the private sector unless the partnership or the services where such a partnership is likely to deliver on services provided related to a matter that is determined Council’s strategic direction and the Long Term Council “signifi cant” in terms of Council’s policy on signifi cance, Community Plan with better value for money or enhanced in which case Council will consider the level and nature of community wellbeing based on cost, time, customer consultation required to comply with that policy. service, alignment with community desires and fi nancial arrangements. 8. Council may impose conditions before providing funding or other resources to any form of partnership with the 4. Without limiting the scope of Council commitment and private sector and these will generally include: by way of example, commitment of Council resources to (i) an emphasis on transparency and disclosure of partnerships will generally be in the form of grant, loan, processes and outcomes, acknowledging the need to investment, or guarantee. The resources committed may be fi nancial, or they may be non-fi nancial including protect commercial confi dentiality where appropriate but not limited to staff time, human capital, intellectual (ii) risk allocation between the partners being clear and property, accommodation, offi ce equipment or other enforceable, with consequential fi nancial outcomes Council assets. and an agreed exit/termination strategy 5. The circumstances in which the Council will provide (iii) clearly specifi ed outputs including measurable funding or other resources to any form of partnership performance standards with the private sector will generally be some or all of the (iv) responsibilities for the monitoring of outcomes to following: remain with the Council (i) the core function or functions of the partnership are (v) Mechanisms for delivering ongoing value for money identifi ed as satisfying a community need (vi) All private sector parties being fully accountable to (ii) the partnership is structured so as to effi ciently and Council for the delivery of their agreed contribution to effectively deliver enhanced service levels the partnership. (iii) the partnership will be assessed against the public 9. Risks Assessment and Management interest in terms of effectiveness, accountability and transparency, together with a consideration of equity (i) A comprehensive risk assessment will be carried out for disadvantaged groups, public access, consumer before a partnership proposal is promoted or entered law, and security and privacy rights. into SECTOR THE PRIVATE WITH POLICY ON PARTNERSHIPS 6. The circumstances where a Private Sector Partnership (ii) Where the partnership proposal is “signifi cant” the may be considered is where: subsequent public consultation procedure may identify further risks and/or assist the Council’s • Council is unwilling or unable to bear all of the risk understanding of the community’s perception of risk (in a broader sense, not limited to fi nancial risk) of a particular project or service (iii) Appropriate risk management mechanisms will be incorporated into partnership agreements SECTION THREE • The particular project or service will deliver signifi cant community benefi t, the achievement of the Long (iv) A partnership agreement will require regular reporting Term Council Community Plan objectives or the to the Council reporting suffi cient to enable the achievement of community outcomes but the delivery Council to determine the partnership’s of that project or services is outside the scope of the overall process and success in achieving Council’s core activities predetermined and specifi ed objectives.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 141 POLICY ON PARTNERSHIPS WITH THE PRIVATE SECTOR CONTINUED

10. Monitoring and Reporting (ii) what consultation the local authority will undertake (i) A partnership agreement will incorporate performance in respect of any proposal to provide funding or objectives and a report on progress in achieving other resources to any form of partnership with those objectives will be required on a regular (not less the private sector; and than annual) basis (iii) what conditions, if any, the local authority (ii) Specifi c reporting requirements will be appropriate to will impose before providing funding or other the signifi cance of the partnership resources to any form of partnership with the private sector; and (iii) Reports on partnership performance will be provided to the Council and or/incorporated in the Council’s (iv) an outline of how risks associated with any Annual Report and/or in the Council’s triennial report such provision of funding or other resources are on the achievement of community outcomes, as assessed and managed; and appropriate. (v) an outline of the procedures by which any such provision of funding or other resources will be 11. The application of clauses 8 to 10 of this policy will be to monitored and reported on to the local authority; a level of detail and certainty, as determined by Council, and commensurate with the resources committed by Council to the partnership and the likely costs and benefi ts of (vi) an outline of how the local authority will assess, further detail and certainty. monitor, and report on the extent to which community outcomes are furthered by any provision of funding or other resources or a LOCAL GOVERNMENT ACT 2002 partnership with the private sector.

S107 Policy on partnerships with private sector 2. In this section, partnership with the private sector means any arrangement or agreement that is entered 1. A policy adopted under section 102(4)(e) - into between 1 or more local authorities and 1 or more (a) must state the local authority’s policies in respect persons engaged in business; but does not include - of the commitment of local authority resources to (a) any such arrangement or agreement to which the only partnerships between the local authority and the parties are - private sector; and (i) local authorities; or (b) must include - (ii) 1 or more local authorities and 1 or more council (i) the circumstances (if any) in which the local organisations; or authority will provide funding or other resources to any form of partnership with the private sector, (b) a contract for the supply of any goods or services to, whether by way of grant, loan, or investment, or on behalf of, a local authority. or by way of acting as a guarantor for any such partnership; and POLICY ON PARTNERSHIPS WITH THE PRIVATE SECTOR THE PRIVATE WITH POLICY ON PARTNERSHIPS SECTION THREE

142 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B FINANCIAL CONTRIBUTIONS POLICY CONTRIBUTIONS FINANCIAL AND CONTRIBUTIONS DEVELOPMENT 5 EHDLG 150 152 150 151 FUNDING AND EXPENDITURE CAPITAL 19. PROJECTIONS AND STUDIES GROWTH 18. 150 PROCESS ALLOCATION COST OF OUTLINE 148 17. TIME OVER RECOVERY COST 16. METHODOLOGY 15. DEVELOPMENT FOR REQUIREMENT 14. FINANCIAL FOR REQUIREMENT 13. 147 OR CONTRIBUTIONS DEVELOPMENT 12. PRINCIPLES 147 11. 147 ALLOCATION COST IMPACT OF OVERALL 147 10. FUNDING SEPARATE OF BENEFITS THE 9. PARTICULAR OF ACTIONS THE 146 8. BENEFIT OF PERIOD 7. BENEFITS OF DISTRIBUTION 144 144 6. COMMUNITY 5. 144 OUTCOMES CONTRIBUTIONS DEVELOPMENT USE WHY 4. INTERPRETATION AND DEFINITIONS 3. 2. COMMENCEMENT INTRODUCTION 1. PAGECONTENTS IACA OTIUIN? 148 149 CONTRIBUTIONS 149 CONTRIBUTIONS CONTRIBUTIONS? FINANCIAL 147 146 GROUPS OR INDIVIDUALS SOURCES? FUNDING AS CONTRIBUTIONS FINANCIAL AND

8 ONI EEOMNS 159 29 INFRASTRUCTURE FUNDING COUNCIL 28. DEVELOPMENTS AND REMISSIONS POSTPONEMENT, 27. PAYMENT DEVELOPMENT OF 26. 153 152 DEVELOPMENT OF ASSESSMENT 154 25. TO REQUIREMENT RISE GIVING EVENTS 24. 153 SIGNIFICANT 23. ASSUMPTIONS CONTRIBUTIONS DEVELOPMENT OF SCHEDULE 22. CHARGES DEMAND OF UNITS 21. CATCHMENTS20. pedx3-Lgsain 171 163 161 160 170 3-Legislation Appendix Expenditure 2-Capital Appendix relevant activities for areas catchment depicting 1-Maps Appendix contribution development your B-Calculating Schedule activity by contributions A-Development Schedule ATTACHMENTS AGREEMENTS 159 159 AGREEMENTS 157 REFUNDS 157 CONTRIBUTIONS 155 CONTRIBUTIONS 154 CONTRIBUTIONS DEVELOPMENT FOR BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB PAGE 143

SECTION THREEONE ????????DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY CONTINUED

1. INTRODUCTION otherwise the new policy will apply to all payments of A Long Term Council Community Plan contains details development contribution made after 1 July 2009. of the Council’s strategic vision, ﬁ nancial policies and a budget of expenditure for the 10 year period 3 DEFINITIONS AND INTERPRETATION commencing from the date of its adoption. It is reviewed, using the special consultative procedure in s83 of In this Policy: the Local Government Act 2002 (LGA 02) at 3 yearly

intervals as required by the LGA 02. “activity” has the same meaning as in section 5 of the LGA 02 (see Appendix 3). Waitakere City Council (“Council”) adopted its fi rst LTCCP in 2003. That Plan related to the 10 year period from 2003 to 2013 (“LTCCP 2003”). Under “activity plan” are business plans of the Council’s the provisions of LGA 02 a local authority may levy activities. The provide comprehensive information development contributions to fund capital expenditure regarding the strategic justifi cation of the activity, future incurred by the Council in providing for any additional demand and how this will be met, funding and other network infrastructure and community infrastructure fi nancial issues. to accommodate growth in accordance with a development contributions policy adopted as part of its “additional allotments” means the number of LTCCP, following a special consultative procedure. The allotments resulting from a subdivision of land (ignoring Council adopted its fi rst Development and Financial any allotments vesting on subdivision for road, reserve, Contributions Policy under LGA 02 in June 2004, as an utilities, access or any other similar purpose) in excess amendment to LTCCP 2003. of the number of allotments comprised in that land immediately prior to the subdivision. The Policy was reviewed in 2006 as part of the process for the adoption of the Council’s LTCCP for the 10 year “allotment” has the same meaning as in section 218 of period from July 2006 to 2016. the RMA and extends to include:

This Policy has been reviewed as part of the process • 2 or more allotments, or part allotments, included in for the adoption of the Council’s LTCCP for the 10 a single certifi cate of title which are required by law year period from July 2009 to 2019. Details of the to be held together in a single certifi cate of title; and methodology and worksheets are available from the • land comprised in 2 or more certifi cates of title Council on request through the Council’s Call Centre which are required by law to be held together and (phone 839 0400), at the Civic offi ces and from the which may not be sold or otherwise disposed of Council’s website www.waitakere.govt.nz. separately.

2. COMMENCEMENT “backlog” means the portion of the planned (or This Policy will be operative from 1 July 2009 and will completed) capital projects that is required to rectify a remain in force until revoked by the Council. It will apply shortfall in service capacity to meet existing community to all assessments for development contributions made demand at agreed levels of service. DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS by the Council on or after that date and to all payments of development contributions after that date. The policy “capital expenditure” means expenditure of a capital will next be reviewed in 2012 as part of the 3 yearly nature incurred by the Council in relation to community cycle for the preparation and review of the Council’s facilities and extends to include LTCCP. Prior to the next review Council may elect to • capital expenditure funded by the Council but amend this Policy, but any amendment will involve an incurred by a developer acting in accordance with amendment to the LTCCP requiring consultation with

SECTION THREE an infrastructure funding (as deﬁ ned by this Policy) the community using the special consultative process. in relation to community facilities to be vested in The holder of a resource consent, building consent or Council and services connection approval granted before 1 July • (if permitted by law) amounts paid to Watercare 2009 may elect to pay the development contribution on Services Limited by way of capital levies for trunk or before 30 June 2009 in accordance with the policy wastewater disposal systems and treatment schedules which apply under the 2006 policy, but facilities.

144 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY

“catchment” means a part of the City identiﬁ ed in this land under this policy and was arrived at in the manner Policy for the collection of a development contribution set out in section 21(a) of this policy. and includes a citywide catchment. “household equivalent unit” (or HEU) is the unit of “City” means the district of Waitakere City Council. demand used for calculating development contributions for non-residential land and was arrived at in the “citywide catchment” means a catchment comprising manner set out in section 21(b) of this Policy. the whole of the City. “infrastructure funding agreement” means an “community facilities” has the same meaning as in agreement entered into between the Council and a developer, or developers, in accordance with section 29 section 197 LGA 02 (see Appendix 3). of this Policy. “community infrastructure” has the same meaning as “LGA 02” means the Local Government Act 2002. in section 197 LGA 02 (see Appendix 3). “LTCCP 2009” means the Long Term Council “district plan” means the district plan for Waitakere City Community Plan for the 10 year period commencing 1 and includes a transitional plan and a proposed plan. July 2009.

“community outcomes” means the community “medium density housing” means development outcomes refl ected in the strategic priorities and on a site with a minimum net site area of 2,000 m2 strategic platforms which have been identifi ed in containing dwellings at a density of more than one accordance with s91 LGA 02. dwelling for every 350m2 of net site area exclusive of roads, reserves, communally owned driveways, open “development” has the same meaning as in section space and other commonly owned or public facilities, 197 LGA 02 (see Appendix 3). and includes housing types such as terrace housing or townhouses. “development contribution” has the same meaning as in section 197 LGA 02 (see Appendix 3). “minor household unit” (or MHU) has the same meaning as in the district plan and includes a building “fi nancial contribution” means a fi nancial contribution intended for or used for residential purposes which has imposed as a condition of a resource consent granted a gross fl oor area (excluding any garaging for motor vehicles) not exceeding 65 square metres and is used in under the RMA. association with an existing dwelling on the same site.

“gross fl oor area”(or GFA) has the same meaning as in “network infrastructure” has the same meaning as in the district plan i.e. “the sum of the total fl oor area of a section 197 LGA 02 (see Appendix 3). building or buildings measured from the exterior face of exterior walls, or from the centre line of walls erected on “Northern Strategic Growth Area” (also “NOSGA”, a site boundary, but excluding: “NORSGA” and NorsGA) means the areas in the north • covered or enclosed loading docks; and of Waitakere City depicted in the plans attached as Appendix 1 and includes the areas covered in Plan • covered or enclosed loading or unloading areas, AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS Change 13 (Hobsonville Peninsula), Plan Change 14 internal vehicle parking areas enclosed pedestrian (Hobsonville Village) and Plan Change 15 (Massey malls (other than fl oor space used directly for retail North). sales).” “received” in relation to applications for resource “GST” means goods and services tax levied in consent, building consent or services connection accordance with the Goods and Services Tax Act 1985 consent means an application which is: SECTION THREE • delivered to the Council’s Civic Offi ces (not a “growth” means the portion of planned (or completed) Service Centre) during normal business hours; capital projects providing capacity in excess of existing community demand at agreed levels of service. • complete in all material respects; and • accompanied by payment (by “household unit” (or HHU) is the unit of demand used acceptable form of tender) of all consent for calculating development contributions for residential fees payable at the time of application.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 145 DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY CONTINUED

“renewal’ means the replacement of an existing asset iv. The extent to which the actions or inactions of at the end of its life with a new asset with the same particular individuals or a group contribute to the function and capacity. need to undertake the activity; and v. The costs and benefi ts, including consequences “reserve” means land required for recreation purposes for transparency and accountability, of funding and intended to be held as a reserve under the the activity distinctly from other activities; and Reserves Act 1977. “residential purposes” means a use of land involving (b) The overall impact of any allocation of liability for the occupation of a building or part of a building as revenue needs on the current and future social, living accommodation but does not include a hospital, economic, environmental, and cultural well-being of the rest home, residential care facility, prison or a building community.” used as temporary living accommodation or as accommodation for travellers. The following sections (5 – 10 inclusive) of this Policy explain the Council’s approach to deciding why it was “RMA” means the Resource Management Act 1991. considered appropriate to fund the capital expenditure identifi ed in this Policy by way of development “serviced area” means that part or those parts of the contributions or fi nancial contributions, having regard to City to which a reticulated wastewater system and/or a the matters set out in section 101 (3) LGA 02. reticulated water supply system is either provided, or planned to be provided, within the period covered by the 5. COMMUNITY OUTCOMES LTCCP 2009. Community outcomes represent a collective vision for the future that also refl ects the diverse goals of many “unserviced area” means those parts of the district communities within Waitakere. These are presented which are outside a service area. in detail in the Community Outcomes for Waitakere City 2006-2009 found on the Council website. The 4. WHY USE DEVELOPMENT CONTRIBUTIONS community outcomes to which each activity primarily contributes are briefl y stated below. AND FINANCIAL CONTRIBUTIONS AS FUNDING SOURCES? Transport When a city grows a decision needs to be made Community outcomes: Sustainable and Integrated whether, and to what extent, the Council will provide Transport, Strong Communities, Strong Economy, new community facilities, or community facilities Sustainable Environment, and Urban and Rural villages. with increased capacity, to keep up with the demand created by that growth. If the Council elects to provide Leisure and community service those facilities a decision then needs to be made how Community outcomes: Strong Communities, Toiora to fund the cost of the relevant capital expenditure. (Healthy Lifestyles) and Urban and Rural Villages. Included within the range of funding options available to the Council is the ability to recover the cost of those Libraries facilities through the use of development contributions Community outcomes: Strong Communities, Urban and under LGA 02 or fi nancial contributions under RMA. Rural Villages, and Working Together (Te Mahi Tahi) .

DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS The process to be followed by the Council when Parks and Parks Infrastructure choosing the appropriate funding mechanism is Community outcomes: Green Network, Strong set out in section 101 (3) LGA 02 which requires a Communities, Sustainable Environment and Urban and consideration of: Rural villages.

“(a) In relation to each activity to be funded, - Water supply Community outcomes: Strong Communities, Strong

SECTION THREE i. The community outcomes to which the activity Economy, Sustainable Environment and Urban and primarily contributes; and Rural Villages. ii. The distribution of benefi ts between the community as a whole, any identifi able part of Wastewater the community, and individuals; and Community outcomes: Strong Communities, Strong iii. The period over which those benefi ts are Economy, Sustainable Environment, Urban and Rural expected to occur; and Villages, and Whaiora (Environmental Protection).

146 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY

Stormwater 8. THE ACTIONS OF PARTICULAR INDIVIDUALS OR Community outcomes: This Green Network, Mauri Ora GROUPS (Access to Maori Resources), Strong Communities, The allocation of costs to those who cause such costs Sustainable Environment and Urban and Rural Villages. (“exacerbator or polluter pays”) is another fundamental economic principle applied to determine the appropriate 6 DISTRIBUTION OF BENEFITS funding source for investment in community facilities to This element of section 101 LGA 02 recognises the accommodate growth. If new facilities, or facilities with economic principle which requires the allocation of additional capacity, are not provided to accommodate costs on the basis of benefi t distribution (“benefi ciary growth then inevitably there is a reduction in service pays principle”). Once a decision has been made to levels. incur capital expenditure on community facilities to accommodate growth an analysis of the benefi t of that In circumstances of green fi eld development for a spending is undertaken on a benefi ts distribution basis. clearly defi ned catchment this analysis is usually fairly straight forward, but even then arguments can be made Where new community facilities are provided to for spreading some of the costs on a citywide basis accommodate growth but also improve existing levels because economic development can provide citywide of service, the benefi ts of that expenditure will accrue benefi ts. In circumstances of brown fi eld development to both developers and to existing ratepayers. An this analysis becomes even more and is often a matter apportionment of the extent of the benefi t enjoyed of value judgment. As set out below in the explanation by each benefi ciary must be made in that case. The of the cost allocation methodology at section 15, proportion of the benefi t allocated to existing ratepayers the steps taken to determine the cost of growth to is not able to be funded by a development contribution be recovered through development contributions or a fi nancial contribution. When making an allocation or fi nancial contributions ensure that a developer is on the basis of benefi ts, regard is also given to the charged no more for the community facilities needed to fact that once constructed the costs of depreciation service its development than would be charged if that and maintenance will fall upon all ratepayers (unless a development was served by dedicated facilities serving decision is made to recover those costs by a targeted that development exclusively. rate). Accordingly, unless the benefi ts accruing to existing ratepayers are transient, an allocation of costs An explanation of the analysis of costs allocated, if will be made to refl ect the benefi ts accruing to existing any, on basis of the “exacerbator pays” principle for ratepayers from increased levels of service. each activity is included within the activity plan for that activity. The allocation of costs on a benefi ts basis invariably requires a measure of careful analysis and judgment. 9. THE BENEFITS OF SEPARATE FUNDING An explanation of the distribution of benefi ts analysis Development contributions and fi nancial contributions for each of the activities for which a development are separate funding techniques that can be applied to contribution or fi nancial contribution will be recovered allow growth related capital expenditure attributable to under this Policy is included within the activity plan for particular activities to be funded distinctly from other that activity. expenditure on those activities, and from expenditure on other activities. They therefore provide a mechanism DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS 7. PERIOD OF BENEFIT which promotes transparency and accountability Commonly, community facilities are constructed to regarding the funding of growth related expenditure meet future demand over the long term. They tend and help prevent inappropriate transfer of the cost of to have an economic life extending well beyond the funding that expenditure from developers to the wider period of the current LTCCP (and this Policy) and may community. therefore benefi t developments outside the term of this Policy. The extent of any unused capacity must The use of development contributions and fi nancial SECTION THREE be identifi ed and recognised in the calculation of contributions to fund growth related capital expenditure contribution amounts during the term of this Policy so sends appropriate cost signals to developers and that developers are not required to pay for capacity that encourages effi cient allocation of resources. they do not use. An explanation of the analysis of the period of benefi t for each activity is included within the 10. OVERALL IMPACT OF ALLOCATION activity plan for that activity. The Council has fl exibility under LGA

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 147 DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY CONTINUED

02 to choose to fund the capital cost of community service for the existing population will be excluded infrastructure in a number of ways. The Revenue from the capital expenditure to be funded by and Financing Policy provides that where capital development contributions or fi nancial contributions. expenditure related to growth can be funded from However, if undertaking the backlog work provides development contributions and fi nancial contributions, increased capacity that facilitates growth, then the Council will generally use those mechanisms to the identifi ed cost of that component of increased meet the cost of growth of the city in preference to other capacity will be included as part of the expenditure funding sources. That general policy position does to be funded by development contributions or not, however, prevent the Council from considering fi nancial contributions. the use of other funding sources, in whole or in part, • Where renewals of community facilities will also in an appropriate case. Prior to the introduction of the provide extra capacity to cater for growth, the extra 2004 Policy the Council commissioned an independent capacity component will be funded by development assessment of the likely economic impact of the fi rst contributions or fi nancial contributions. Policy, assessed against the current and future social, economic, environmental, and cultural well-being of • The cost of growth allocated to funding by the community. That report and the most recent report, development contributions or fi nancial contributions commissioned in 2008, concluded that the introduction refl ects as far as is reasonably practicable, the cost of the development contributions charges in 2004 and of providing community facilities in the geographic the continued use of development contributions as a location (“catchment”) in which development is funding tool since then has had no discernible impact on occurring, but restricted to the capacity created housing supply or housing affordability, either in terms primarily to meet the demand generated by of house prices or rental charges. Nor has there been development within that catchment. any discernible impact on business investment and • Where the costs of growth relate to community employment growth from the imposition of development facilities which serve more than one catchment or contributions over that period. where it is impracticable or too costly to estimate differential costs, the cost of growth is allocated to Accordingly it is the Council’s view, based on its own larger catchments where it is appropriate to do so. observation and relying upon the independent reports • The estimates of required capital expenditure that it has obtained, that appropriately assessed and are adjusted to refl ect the likely consequences of fi scally responsible development contributions and infl ation. fi nancial contributions have had no undue adverse • The costs of growth to be recovered from overall impact development contributions or fi nancial contributions may include costs that have already been incurred in 11. PRINCIPLES anticipation of development. The following principles have been applied in the calculation of the development contributions and 12. DEVELOPMENT CONTRIBUTIONS OR FINANCIAL fi nancial contributions charges: CONTRIBUTIONS? • Where capital expenditure on community facilities Prior to the passing of the RMA in 1991, the Council is required to be made to meet the future demand

DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS collected ﬁ nancial contributions to fund some costs of generated by growth, those costs will be recovered growth in relation to community facilities under sections from new developments as they occur over time. 283, 285, 286, 289, 291, 292, 321A and 322 of the Local • The appropriate levels of service are those used Government Act 1974 (LGA 74). Following the repeal in the LTCCP 2009 and associated activity plans. of those sections by the RMA, the Council continued Where increased capacity is required to meet the to require ﬁ nancial contributions for similar purposes demand generated by increasing population while in reliance upon the transitional provisions contained

SECTION THREE maintaining the current level of service, then the in sections 407 and 409 of the RMA. When the capital cost of additional capacity is attributed Council’s District Plan was notifi ed it included a fi nancial to growth and will be funded by development contributions chapter which included a proposed contributions or fi nancial contributions. fi nancial contributions framework for community • Where a backlog of work exists, and current assets facilities. There was also a framework for the taking of do not meet agreed levels of service, capital fi nancial contributions to mitigate other environmental expenditure incurred achieving agreed levels of effects of development activity.

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There were submissions, and later appeals, lodged In addition, the Council may also impose as a condition against the proposed fi nancial contribution provisions of the consent a condition requiring a consent holder in the District Plan relating to community facilities which to undertake works and/or to provide services to avoid, raised major issues about the approach adopted by the remedy, or mitigate the adverse affects of the activity Council. These appeals had not been resolved by the authorised by the resource consent. time LGA 02 came into effect and introduced the option of development contributions as a means to recover Such works or services must ordinarily be undertaken capital expenditure on community facilities arising within the boundaries of the site of a proposed activity. from growth. In the Council’s view, the development Council will remain open to entering into discussions contribution provisions of LGA 02 offered a better for the provision of works and services outside the mechanism to resolve some of the issues highlighted in boundaries of the site by the developer, or the payment the District Plan appeals. by the developer of a cash sum to enable the Council to undertake works and services outside the boundaries The Council therefore decided to recover the costs of the site, as an alternative way to avoid remedy or of growth relating to most community and network mitigate the effects of a proposed activity. Where such infrastructure through development contributions rather an agreement is reached with the developer, conditions than fi nancial contributions. may be imposed on the resource consent to record and give effect to that agreement (but this can only occur at However, fi nancial contributions will continue to be the request of the developer). taken as conditions of resource consents granted under RMA for reserves, Project Twin Streams and to mitigate Appendix 2 shows the level of revenue anticipated to be any other adverse effects of the proposal. collected as fi nancial contributions over the period of the LTCCP. Nothing in this Policy will affect the Council’s ability: • to require a developer to provide infrastructure and The quantum of any fi nancial contribution, and the services which are internal to the development in method of its assessment and details of the timing accordance with the requirements of the District of payment of that contribution, will be set out in Plan, and the Council’s powers under RMA; or the conditions of the resource consent. Financial contributions will ordinarily be required to be paid at the • to impose appropriate conditions of consent, time of issue of a building consent, before giving effect including conditions requiring the developer to to a land use consent or prior to the issue of a certifi cate provide works and services to avoid, remedy or under s224(c) RMA in the case of a subdivision consent. mitigate the adverse effects of the proposed activity. A fi nancial contribution required as a condition of a 13. REQUIREMENT FOR FINANCIAL CONTRIBUTIONS resource consent under RMA may be the subject of the The Council may require a fi nancial contribution to objection and/or appeal processes set out in the RMA. be paid or provided at the time of granting a resource consent under the RMA for the following purposes: 14. REQUIREMENT FOR DEVELOPMENT • a fi nancial contribution for reserves on subdivision at CONTRIBUTIONS a maximum rate of 6% for all classes of land under The Council will require development contributions to be AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS ss285 and 286 LGA 74, pursuant to s407 RMA paid to fund the capital expenditure which the Council • a fi nancial contribution for reserves on expects to incur to meet the increased demand for developments under s294 LGA 74, pursuant to s409 community facilities resulting from growth occasioned RMA by development. • a fi nancial contribution for stormwater purposes

related to Project Twin Streams under s283 LGA 74, The balance of the discussion in this Policy: SECTION THREE pursuant to s407 RMA in the case of a subdivision • Explains the methodology adopted by the Council to and s409 RMA in the case of the development identify the growth element of capital expenditure • a ﬁ nancial contribution for any other purpose under • Identiﬁ es the capital expenditure s283 LGA 74, pursuant to s407 or s409 RMA resulting from growth contained within the LTCCP 2009, by activity

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• Sets out the basis upon which that capital arisen from the activity plans, which are based on the expenditure is to be recovered, through the economic life of the relevant assets (which is typically appropriate application of units of demand, for each more than 10 years). From an asset management activity or group of activities, within each catchment perspective, it can be more efﬁ cient to build assets of • Explains the way in which development contributions larger capacity which will then meet the demand beyond will be assessed and collected the time horizon of the LTCCP 2009. • Sets out the basis upon which remissions may be This means that some spending within the LTCCP available period will be recovered from developments occurring

after that period. Any cost incurred in anticipation of Changes in forecasts of costs, or of demand arising growth in later years (i.e. outside the 10 year period) from growth, will be captured in each 3 yearly review of will be allocated to and recovered in those later years, the LTCCP (and this Policy) unless the Council elects to subject to a maximum recovery period of 20 years. This undertake more frequent reviews. limit is used in order to ensure a reasonable degree of predictability and certainty about the level of funding 15. METHODOLOGY available over the long term, as required under section The following is a summary of the methodology adopted 102(1) of LGA 02. to calculate development contributions for community facilities, other than reserves: Capital expenditures estimated on the basis of current a. Calculate the capital expenditure to be incurred in prices are adjusted by using infl ation indices on relation to that activity over the period of the LTCCP construction activity to refl ect cost increases in the 2009 distinguishing between renewals, backlog, future years. improved level of service, and capital expenditure attributable to growth (see Appendix 2); The charges for each unit of demand are set through a b. Subtract other sources of external funding and model which takes account of the timing of both capital subsidies; expenditure and expected development contributions revenue and refl ects the council’s total cost of capital c. Identify the relevant catchment ; expenditure, including interest paid and received. d. Project the demand generated by growth in different catchments; The Council has made a decision that it will recover e. Establish the cost of growth for each catchment the cost of capital (interest) on its expenditure after f. Include interest income and interest cost to the cost completing the projects. Accordingly, the modelling of growth (taking project timing into consideration); accounts for interest (paid and received) on contributions received in anticipation of expenditure. g. Convert the identifi ed cost of growth rates to units of demand, either household units (HHU) or household equivalent units (HEU) as appropriate; 17. OUTLINE OF COST ALLOCATION PROCESS The cost allocation process adopted for the assessment h. Distribute the capital expenditure attributable to of the growth cost of capital expenditure on community growth over the total number of HHUs and HEUs facilities is outlined below. This methodology takes the for each catchment, taking account of the projected planned cost of a proposed project and assigns it to

DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS growth period to determine the appropriate per unit various cost components: of demand contribution for that activity. • Renewal

Further detail on the cost allocation process is • Backlog contained in section 17. The full methodology for • Growth each activity is contained in the relevant methodology • Unallocated documents and asset worksheets.

SECTION THREE The methodology is a seven step process as explained 16. COST RECOVERY OVER TIME below: This Policy is based on the capital expenditure budgeted over the 10 year time frame of the LTCCP, Step 1: and the principle that costs triggered by growth over Understand and deﬁ ne the activity. This includes that period should be both allocated to, and recovered considering the strategic “ﬁ t” for the project, and the within, the 10 year period. That planned expenditure has way that the corresponding activity and programme,

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and the project itself, contribute to the community Step 7: outcomes being sought for the City. Key functions of Summarise the outcomes of the allocation process. The scope, purpose, timing, total project cost, and funding renewal cost is deducted from the total project cost. The sources are described in detail and recorded. Sources balance is shared between backlog (portion of the total of information are also recorded to aid in auditing project cost related to bringing the capacity provided to and confi rming project details. All of these items are the existing community up to the demand of the existing included in the relevant activity plan. community) and growth (portion of the total project cost related to the difference between the total capacity Step 2: provided and the existing demand – the growth portion). Defi ne the catchment served by the activity. The Where the growth portion is assessed as greater than opportunity is provided here to recognise both the local assessed in steps 5 and 6 then the growth cost is and citywide purposes of the activity. limited to the result in steps 5 and 6 and the remaining balance funded from rates. Step 3: Defi ne the capacities associated with the activity. These 18. GROWTH STUDIES AND PROJECTIONS capacities relate directly to the level of service and are This Policy is based on the capital expenditure required ordinarily to be found in the activity plan. Otherwise, for growth as identifi ed in the LTCCP 2009, which defi nition of the level of service is included in this step. in turn is based on the urban development strategy, The measures of the levels of service are defi ned. current growth management assessments, concept The capacity of the current service, the demand for plans, structure plans, activity plans, Codes of Practice service required by the existing community and the total and other strategies that Council has adopted. Taken capacity provided by the planned project (all in respect together, these planning tools provide an initial estimate of the level of service measure) are determined. of the growth in expenditure required to meet Waitakere City Council’s commitments in the Regional Growth Step 4: Strategy (1999) and Northern and Western Sector Determine the portion of the project that is renewing Agreement (2001). existing assets. This step adopts from the most recent valuation the replacement costs of those assets The Council has developed a growth model which uses renewed, their ages and expected lives. These are projections provided by Statistics New Zealand (medium analysed to calculate the net renewal cost, namely total series projection) and takes account of these infl uences replacement cost minus current (depreciated) valuation. on the anticipated future development of the city. This This amount is deducted from the total project cost. model covers both residential and non-residential development, and has in turn provided the basis for Step 5: the estimation of demand for the assets and services Provides a check in the process. This involves checking included in this Policy, and the capital programmes to ensure that the total allocated to the new work required to meeting that demand. (growth plus backlog) component is no more than it would be if works were implemented delivering the Selections from the growth model are given below, for same outcomes but sized just for the new work.

the 10-year period of this LTCCP. As above, growth AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS costs are recovered over longer periods (and greater Step 6: numbers of new developments) where appropriate. Provides a further check in the process. This includes Projections for activities that are charged on non- checking to ensure that the amount recovered from residential activities differ because developments will developers through a development contribution or have different relative demands for these activities. ﬁ nancial contribution is no more than would otherwise

have been required to be paid if the implemented The total projected population growth over the ten year SECTION THREE works delivered the same outcomes but were sized period of the 2009-2019 LTCCP is 31,100. to accommodate only the developments which are required to pay the relevant contribution.

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HHU and HEU projections for Development 19. CAPITAL EXPENDITURE AND FUNDING Contributions (2009-2019) A summary of the total capital expenditure identifi ed in LTCCP 2006, the proportion of that expenditure CATCHMENT ANTICIPATED attributable to growth, and funding sources is set out in INCREASE IN Appendix 2. HHUS OR HEUS 2009 TO 2019 The capital expenditure indicated in LTCCP 2009 includes prospective fi nancial information derived from Leisure and Citywide 14,585 best available knowledge at the time of preparation of Community that plan and represents Council’s estimation of the services expenditure that will be incurred. Libraries Citywide 14,585 Parks Citywide 14,585 Prospective fi nancial information can be either a infrastructure forecast or a projection. A forecast is based on assumptions which the Council reasonably expects Stormwater Citywide except 14,610 to occur whereas a projection is based on one or Hobsonville Peninsula more hypothetical but realistic assumptions. This area, Hobsonville prospective fi nancial information is a forecast and has Village area and been prepared on the basis of assumptions as to future Massey North area events that the Council reasonably expects to occur, Stormwater Hobsonville Peninsula 1,442 associated with the actions it reasonably expects to take area as at the date the forecast was prepared. Stormwater Hobsonville Village 735 area Planning work which will both inform and affect Stormwater Massey North area 1,462 estimation of future costs of growth is ongoing. Any revision of the costs of growth will be refl ected in Transport Citywide 29,027 subsequent LTCCPs, Activity Plans and the Schedules Wastewater Citywide area except 14,328 to this Policy. Hobsonville Peninsula area, Hobsonville 20. CATCHMENTS Village area and Generally, for the purpose of determining the design Massey North area capacities and costs of assets, the Council considers Wastewater Hobsonville Peninsula 1,060 the overall demand for community facilities within the Wastewater Hobsonville Village 413 city as a whole. The various groups of assets are each area planned, managed and delivered as a single network, servicing the entire community at a uniform level of Wastewater Massey North area 849 service and collectively meeting citywide demand. Water supply Citywide area except 15,306 Works are typically prioritised on a citywide basis. Hobsonville Peninsula These factors tend to promote the use of citywide area, Hobsonville

DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS catchments. Village area and Massey North area Nevertheless, the Council recognises that there are cost Water supply Hobsonville Peninsula 1,060 differences among different geographic locations, and area these differences are likely to be signifi cant between the Water supply Hobsonville Village 413 existing built up areas and green fi eld developments. area Where infrastructure costs can be identifi ed in relation SECTION THREE to localised demand, the Council believes that there is Water supply Massey North area 849 a case for the treatment of such areas as separate local catchments for the purpose of levying development contributions.

However, there are risks and practical issues involved in attempting to collect development contributions on

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the basis of a large number of small local catchments. initiatives. Regardless of the number of bedrooms These include: or the gross fl oor area any residential unit is treated • The projection of growth for small catchments is as one household unit (except in certain cases for fraught with uncertainty and higher margins of error. stormwater; see section 25 of this policy). There Greater deviations of actual developments from the is no absolute correlation between the size of a projections could undermine the predictability and residential unit and the number of occupants. The certainty of the level of funding available. only certainty is that any use of land for residential purposes will contribute, to one degree or another, • Collection of development contributions by small to the need for community facilities. catchments would introduce a degree of infl exibility to infrastructure investment decisions and capital A development contribution is not charged when a budgeting related to the whole city. dwelling or a minor household unit (MHU), smaller • It increases the complexity and administrative effort dwelling or other residential unit is subsequently required to develop, implement and manage the altered or extended to allow for increased policy. occupancy, provided that the number of HHUs is not • Dividing the city into smaller catchments can also increased by that work. result in very high charges for some areas which might then affect balanced development of the city (b) Land and Buildings to Be Used for All Other in inappropriate ways. Non-Residential Purposes (Household Equivalent Unit) Having considered these often confl icting outcomes, For non-residential purposes, demand is calculated the Council concluded that the preferred approach is separately for each activity, and converted to generally to have citywide catchments. However for household equivalent units (“HEUs”). The exception the stormwater, wastewater and water supply activities, is stormwater, where demand is calculated based on a set of local catchments has been adopted covering impermeable surface area. specifi c plan change areas (for plan changes 13, 14 and 15) with specifi c needs for that infrastructure. For all activities other than stormwater, the number The catchments for wastewater and water supply also of HEUs is assessed: recognise that those networks do not provide reticulated • on a development, having regard to the gross services to all parts of the city. fl oor area (GFA) of the building for which a resource consent, building consent or The catchments used are given in the schedule of authorisation for services connection is sought; charges, and are shown in the maps contained in • on a subdivision, having regard to the maximum Appendix 1. gross fl oor area of a notional development on each allotment at maximum site coverage 21. UNITS OF DEMAND as a permitted activity under the district plan The unit of demand adopted for the purposes of section or (where a resource consent is required for 203(2) of LGA 02 is the household unit for residential any development) the most likely maximum purposes, or its equivalent for all other non-residential site coverage that would be approved on an application for a resource consent for a purposes. The household equivalent unit (HEU) is a AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS reasonable proxy for most types of growth and for discretionary activity on that allotment. calculating the effects of that growth. It is easy for people to understand and provides a more effi cient The HEUs themselves are arrived at by comparing the method than attempting to assess growth on a case-by- demand for community facilities per square metre of case basis. It provides a consistent method of assessing gross fl oor area (or impermeable surface area) with the the cost of growth across the City. typical demand from one household unit. SECTION THREE

(a) Land and Buildings to Be Used for Residential 22. SCHEDULE OF DEVELOPMENT CONTRIBUTIONS Purposes (Household Unit) CHARGES A household unit (HHU) is taken as a residential The development contributions charging unit having an average number of occupants during regime is presented in Schedule A. It projected growth period. This is consistent with identiﬁ es the amount of the contribution the approach adopted for most regional planning for each activity for each catchment. The

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explanation of the basis for Schedule A appears in the Asset and construction standards supporting worksheets for each asset group. Schedule The Council’s code of practice sets out design A includes an identifi cation of each activity or group of standards for community facilities. These standards are activities for which a development contribution will be assumed to continue, and to evolve only slowly over required and a calculation of the amount to be funded by time and no allowance has been made for a signifi cant development contributions. Details of the methodology and sudden change (e.g. arising out of the use of new and worksheets are available from the Council on technology). request through the Council’s Call Centre (phone 839 0400), at the Civic offi ces and from the Council’s Interest website www.waitakere.govt.nz. The Council has assumed an interest rate of 7.2% paid and 5.7% earned when setting the development 23. SIGNIFICANT ASSUMPTIONS contributions charges. The signifi cant assumptions underlying the calculation of the schedule of development contributions are set out 24. EVENTS GIVING RISE TO REQUIREMENT FOR below. DEVELOPMENT CONTRIBUTIONS Council will require development contributions to be Growth paid in respect of a development when granting: It is anticipated that the City will continue to grow in line with the medium series population projections provided • A resource consent under RMA; or by Statistics New Zealand (and other corresponding • A building consent under the Building Act 2004; or non-residential growth projections). It is also assumed • An authorisation for a service connection. that this growth will occur at a rate, pattern, location and type which is in line with the Council’s growth model The quantum of the development contributions will be assessed in accordance with the schedule of If the rate, pattern, location or type of growth changes contributions to the Council’s development contributions markedly, revenue from development contributions and and fi nancial contributions policy applicable at the date fi nancial contributions will be affected. This may lead to of payment. The schedule of contributions contained in a slowdown, or speeding up, of the capital programme this Policy is set out in Schedule A. that is delivering increased capacity for growth, either generally, or in specifi c parts of the City, or for specifi c An applicant wishing to pay the development activities, and to corresponding changes in recovery contribution at the time of lodging resource consent, periods. building consent or services connection application may request the Council to issue an assessment to enable The rate, pattern and location of growth can be immediate payment. Any assessment so issued will be infl uenced by a wide range of unpredictable factors a provisional assessment only and will be reassessed such as the changes in demographics, and social if the scope and scale of the development is changed and economic conditions which are exposed to local, prior to the grant of the consent or authorisation or it national and international forces. becomes clear during processing of the application that the assessment was made on an incorrect basis: Service delivery DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS It is assumed that the Council will continue to provide • When a reassessment is made because the initial the assets and services represented by the activities assessment was incorrect, the policy schedules included in this Policy at the previously agreed levels applicable at the date of the initial payment will of service. Changes to the agreed levels of service, or changes in the way that these services are provided, be used to calculate any further development may require alteration of the Council’s planned capital contribution payable. expenditure programme, which could have a signifi cant • When a reassessment is made because the scope SECTION THREE impact on the cost of growth. and scale of the development is changed prior to the grant of the consent or authorisation, the policy Subsidies schedules applicable at the date of reassessment Signifi cant subsidies are provided for some parts of the will be used to calculate the full development transport programme, by the New Zealand Transport contribution payable. An appropriate credit will be Agency (NZTA). These subsidies are assumed to given for the amount of any payment made on the continue at a similar level into the future. basis of the provisional assessment.

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The requirement to pay a development contribution is of occupation, a deemed credit will be given as not imposed as a condition of the resource consent follows: or the building consent, but arises by operation of law as a consequence of the adoption of this Policy and • In respect of land intended for residential is not therefore subject to either the objection and use, a credit of 1 HHU for each existing appeal processes set out in RMA or the determination dwelling (but excluding any MHU) which is procedures set out in the Building Act 2004. capable of occupation at the date of receipt of the application for subdivision consent. 25. ASSESSMENT OF DEVELOPMENT • In respect of all other land, a credit for the CONTRIBUTIONS actual HEUs that those buildings represent.

(a) Development Contributions in respect of (iii) If there are existing buildings on the additional Subdivision allotments in respect of which development (i) Contributions will be assessed on the basis contributions have previously been paid at the of the additional allotments created by the time of building consent or services connection subdivision by applying the appropriate unit of approval, credit will be given for the number demand as follows: of HHUs or HEUs for which development contributions were paid at that time. When the • For land intended to be used for residential number of HHUs or HEUs assessed at the time purposes, on the basis of 1 HHU for each of subdivision exceeds the number paid for at additional allotment (except as below for the time of development, then a development stormwater). Where an allotment is of contribution will be payable for the additional sufﬁ cient size to accommodate more than units, in accordance with section 24 of this 1 residential unit the subdivider may elect Policy. When the amount of the contribution paid to prepay the development contribution for at the time of development exceeds the amount the other unit or units but otherwise a further assessed at the time of payment, no refund will development contribution will be required be given. to be paid at the time of resource consent, building consent or services connection (iv) When assessing contributions for stormwater for approval for the additional unit or units. all land other than land intended for residential • For land intended to be used for medium use, the contribution may, at Council’s discretion, density housing, the stormwater charge be assessed at 50% of the assessed number of is assessed on the basis of the additional household equivalent units on an interim basis impermeable surface area, evaluated as a to encourage innovation in stormwater mitigation number of HEUs (where 1 HEU is equivalent design, with a ﬁ nal assessment payable to be to 270m² of impermeable area). made at the time of building consent or services • For land intended to be used for any other connection application. purpose, on the basis of the number of HEUs assessed for each additional allotment. This (v) For the avoidance of any doubt, no development assessment will be made on the basis of

contribution is payable on a subdivision which AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS the notional development of a single storey involves the adjustment of boundaries between building at maximum site coverage as a existing allotments or a subdivision which does permitted activity under the district plan or not create additional allotments. (where a resource consent is required for any development) the most likely maximum (b) Development contributions in respect of site coverage that would be approved on developments

an application for a resource consent for a SECTION THREE discretionary activity on that allotment. (i) Contributions will be assessed on the basis of the actual development being undertaken. (ii) If there are one or more existing buildings on the No regard will be given to existing additional allotments and those buildings were buildings only the new, additional or lawfully erected on the land prior to 30 June extended buildings. 2004 and are connected to services and capable

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• For land intended to be used for residential design, with a ﬁ nal assessment made at the time purposes, this is on the basis of the number when the development is completed. Payment of of HHUs created by the development (except the balance will be due upon completion of the as below for stormwater). ﬁ nal assessment. When an interim assessment • For land intended to be used for medium is made in respect of a development or services density housing, the stormwater charge connection approval the Council may require is assessed on the basis of the additional the developer to enter into a bank guaranteed impermeable surface area, evaluated as a bond to secure payment of any balance of number of HEUs (where 1 HEU is equivalent the development contribution which might be to 270m² of impermeable area). payable at completion.

• In the case of an extension or addition (v) Notwithstanding anything contained elsewhere to an existing residential dwelling, or the in this Policy a development contribution will not erection of a garage, carport or sleepout no be required or be payable upon the issue of a development contribution will be payable land use consent, building consent or services provided that the number of HHUs is not connection approval for any of the following increased by that work. purposes: • For land intended to be used for non- • The construction of any building designed residential purposes, the assessment is on and intended for use for educational the basis of the impermeable surface area activities, or related school activities, at added by the development. a school which is the subject of a current integration agreement entered into under s7 (ii) If the allotment upon which the development of the Private Schools Conditional Integration is occurring has no buildings erected upon it; Act 1975; and was created by a subdivision for which a • The reconstruction of a building which certifi cate under s224(c) RMA was issued in the has been destroyed by fi re, earthquake or 3 year period preceding the date upon which the other act of god if the reconstruction work resource consent, building consent or services commences within 3 years of the event connection application was received, which caused the damage, or such longer • Credit will be given for the number of period as the Council in its discretion thinks HHUs or HEUs for which a development fi t; contribution was paid at the time of • The construction of a new dwelling on a site subdivision in respect of that allotment. rendered vacant by the previous demolition • If the application is received after the expiry of a lawfully erected dwelling if the work of the 3 year period, credit will only be given to construct the new dwelling commences for the actual dollar amount paid. within 3 years of the grant of a building consent for the demolition or removal work; (iii) When the number of HHUs or HEUs assessed at • The relocation of a lawfully erected dwelling the time of development exceeds the number, if from one allotment (“original allotment”) to DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS any, of units for which development contributions another allotment (“new allotment”) within were paid at the time of subdivision, then a Waitakere City if: development contribution will be payable for the - The dwelling was connected to services shortfall. When the amount of the contribution and capable of occupation on the original paid at the time of subdivision exceeds the allotment; and amount assessed at the time of development, no - At least one lawfully erected dwelling refund will be given. SECTION THREE which is connected to services and (iv) When assessing contributions for stormwater for capable of occupation remains upon the all land other than land intended for residential original allotment following relocation of use, the contribution may, at Council’s discretion, the other dwelling or dwellings; and be assessed at 50% of the assessed number of - The new allotment is located within household equivalent units on an interim basis the same catchment for all community to encourage innovation in stormwater mitigation facilities as the original allotment.

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(c) Credits for past fi nancial contributions pursuant to s208(b) LGA 02 until the contribution Where a fi nancial contribution has been paid for is paid. network infrastructure under a cost sharing scheme • where the development is permitted under established under s283 LGA 74 and/or has been the district plan and a building consent is not recovered under the transitional provisions of RMA required, prior to making the services connection (i.e. under ss407 or 409 RMA) and the Council pursuant to s208(c) LGA 02. considers, in its discretion, that it is appropriate to give a credit for all or part of that fi nancial (d) Security for unpaid contributions contribution, the credit to be allowed will be the Council may register a statutory land charge under actual, or the proportionate, dollar amount paid. the Statutory Land Charges Registration Act 1928 to secure unpaid development contributions pursuant (d) Mixed Use Subdivisions or Developments to s208(d) LGA 02. Where land in a subdivision, or buildings or parts of buildings in a development, are intended to be 27. POSTPONEMENT, REMISSIONS AND REFUNDS used for both residential and other non-residential (a) Postponement purposes development contributions will be The Council will entertain applications for assessed by fi rst identifying the residential elements postponement of the time for payment of of the subdivision or development before proceeding development contributions payable under this Policy. to calculate HEUs for the balance of the subdivision Applications may be approved or declined by the or development to be used for other purposes. Council in its discretion and any approval may be given subject to such terms and conditions as the (e) Record Keeping Council may elect to impose. Council will keep a record of the basis of assessments and payments made, under this policy. Without in any way limiting the exercise of that Land Information Memorandum (LIM) reports will discretion by the Council an application for post- include details of development contributions paid, to ponement would need to meet the following criteria: the extent that it is reasonably practicable to do so. • There must be a demonstrated benefi t to the community from the early commencement 26. PAYMENT OF DEVELOPMENT CONTRIBUTIONS and completion of the development, including benefi t by way of stimulus to the Waitakere (a) Subdivisions City economy or the provision of employment A development contribution required on subdivision opportunities both during the development must be paid prior to the issue of a certifi cate under phase and upon completion. s224(c) RMA. • The amount of the development contribution to (b) Services connections be postponed must be not less than $100,000 A development contribution required at the time of plus GST. a services connection approval must be paid before • Repayment of the postponed development the connection is made. contribution must be secured by a performance

bond guaranteed by a registered New Zealand AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS (c) Developments trading bank approved by the Council. (i) A development contribution required on • Payment of the postponed development development must be paid: contribution must be made no later than • where a land use consent under RMA is 24 months after the date upon which the required, at the date speciﬁ ed in the consent, development contribution would otherwise have which may be a date prior to commencement of been payable. SECTION THREE the consent pursuant to s208(a)(ii) LGA 02. • where the development is permitted under the In any case where the Council agrees to postpone district plan and a building consent is required, payment of the whole or any part of a development, prior to issue of the building consent. The the amount to be secured by the bond Council may refuse to issue a Code Compliance referred to above will be the agreed Certiﬁ cate under s95 of the Building Act 2004 amount of the postponed development

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contribution (“the bonded sum”) plus an amount • appropriate arrangements are in place to equal to 24 months interest on the bonded sum at secure performance of the developer’s a specifi ed rate of interest, as defi ned below. If the or sub divider’s obligations in relation to amount secured is repaid prior to the expiry of the completion of the facilities or other works and 24 month period a rebate of the interest amount where appropriate the vesting of the same in will be allowed, calculated on a daily basis having the Council regard to the unexpired portion of the 24 month period. (c) Remissions under TUSC (i) The Tool for Urban Sustainability Code of The specifi ed rate of interest will be a rate of interest Practice (TUSC) is a rating system devised equal to the Council’s weighted average cost of by Waitakere City Council in conjunction borrowing as certifi ed by the Council’s Group with the Sustainable Management Fund. It Manager: Funds Manager at the time of approval of measures the extent to which a new building the postponement application plus a margin of 2%. or other development, whether green fi elds or infi ll, minimises demand on infrastructure. The bond will be prepared by the Council’s TUSC is a web-based (www.tusc.org.nz) and solicitor, and executed by the developer and the fl exible tool which allows the user to select bank guarantor, at the developer’s expense in all from a range of options in order to meet the respects. Reimbursement of the Council’s legal required sustainability target. It was developed costs must be made contemporaneously with as a response to the Ministry for Environment acceptance of the bond. Programme of Action for Sustainable Development released in January 2003 (see (b) Remissions generally ISBN 0478-263260). (i) The Council will not entertain applications for remission of development contributions solely on TUSC identifi es, and gives a rating to, the the ground of fi nancial hardship, or solely upon sustainability features incorporated in the the grounds that the subdivider or developer has development or building design such as a charitable or benevolent purpose. recycled water, rainwater tanks, water saving showerheads and taps, planting of native (ii) The Council will consider an application for trees and shrubs landscaping, increased site remission of development contributions where density to promote sustainable development the subdivider or developer intends or is required and transport demand management, heat to provide community facilities or other works pumps or solar water heaters, gas space within the subdivision or development which heaters, roof eaves, awnings, wall and ceiling will directly or indirectly reduce the demand for, insulation (these examples are indicative and not or cost to Council of, other community facilities exhaustive). which would otherwise have to be funded by development contributions. (ii) An applicant for remission must submit a TUSC rating at the time of resource consent or building A remission will not be granted unless:

DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS consent application, identifying those elements of the building or development in respect of • the application for remission is made which remission will be sought. Plans and and approved prior to commencement of speciﬁ cations will be checked for consistency construction of the facilities or other works in with the relevant TUSC rating. Compliance with respect of which remission is sought the approved plans and speciﬁ cations will be • the amount of the remission to be granted audited both during the construction phase and

SECTION THREE has been agreed prior to the commencement on completion. of work • the facilities or other works are constructed (iii) An application that achieves a TUSC rating in accordance with plans and speciﬁ cations improvement less than 10% of a standard 2005 approved by the Council prior to the HHU or HEU receives no remission. commencement of work

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(iv) An application that achieves a TUSC rating those circumstances will not result in the generation improvement of 10% or more of a standard 2005 of additional funding. It will only result in an internal HHU or HEU will be granted a remission against transfer from one account to another. development contributions for each HH or HEU to which the rating applies in accordance with Any other development undertaken by the Council, the following table: or other Council related parties will be subject to the development contributions regime in the same manner as if the development was being undertaken by a third TUSC RATING REMISSION PER party. IMPROVEMENT HHU/HEU 10% $500 29. INFRASTRUCTURE FUNDING AGREEMENTS 20% $1,000 Circumstances may arise where developers and the 30% $1,500 Council have a common expectation in relation to 40% $2,000 development objectives, but, for one reason or another, developer wishes to proceed more quickly than the (v) At the time of payment of the development Council is able or willing to. It may also be the case cost contribution for the development or subdivision effi ciencies and/or savings can be achieved through a credit will be allowed for the amount of the a co-ordinated approach between the developer remission as calculated above, but in any and Council. This will most commonly arise in the case where all or some of the sustainability circumstances of green fi elds development involving a features have not yet been incorporated in the discrete catchment where a mistiming occurs between development the credit will be provisional and the need for capital expenditure on community facilities the applicant will be required to acknowledge in to serve that development and the budgeting of funding writing that: (including funding by subsidy) for that expenditure and the best interests of the developer, the Council and the • the balance of the development contribution community will be served by proceeding more quickly. will be payable upon demand by the If the catchment is a large one there may be more than Council in the event that all of the approved one developer involved as a party to the agreement. sustainability features are not subsequently incorporated in the development or Under these circumstances the Council will be subdivision on completion, and prepared to negotiate with a developer to enter into • Council will register a statutory land an agreement (“infrastructure funding agreement”) charge to secure payment of the balance under which the developer will accept physical and of the development contribution. Once the fi nancial responsibility for construction of community development or subdivision is completed, facilities and the developer will be reimbursed for the with all approved sustainability features duly capital expenditure incurred. The basis upon which that incorporated, the charge will be released. reimbursement is made will be a matter for negotiation on a case by case basis. Possible outcomes of that (c) Refunds negotiation include reimbursement from contributions

Refunds will be made in accordance with the or levies payable for the same works received from AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS provisions of s209 and s210 LGA02, copies of which other developers in the same catchment over time or are attached at Appendix 3. the treatment of the capital expenditure incurred as the prepayment of development contributions and/ 28. COUNCIL DEVELOPMENTS or ﬁ nancial contributions otherwise payable by the If the Council needs to obtain a resource consent, developer. building consent or services connection for the

purpose of constructing a community facility which Community facilities provided by a developer pursuant SECTION THREE will be funded, in whole or in part, by a development to an infrastructure funding agreement must meet the contribution, then a development contribution will Council’s requirements in relation to the speciﬁ cations not be levied, since the charging of a contribution in for and pricing of that work.

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SCHEDULE A – DEVELOPMENT CONTRIBUTIONS BY ACTIVITY

RESIDENTIAL DEVELOPMENTS

DEVELOPMENT CONTRIBUTION $ PER HOUSEHOLD UNIT

CITYWIDE HOBSONVILLE HOBSONVILLE MASSEY NORTH (C) (EXCLUDING AREAS PENINSULA (A) VILLAGE (B) A, B AND C) LEISURE AND COMMUNITY 1,242.36 1,242.36 1,242.36 1,242.36 SERVICES LIBRARIES 627.66 627.66 627.66 627.66 PARKS INFRASTRUCTURE 1,807.84 1,807.84 1,807.84 1,807.84 TRANSPORT 4,273.15 4,273.15 4,273.15 4,273.15 WATER SUPPLY 118.15 498.79 8,273.76 2,803.75 WASTEWATER 1,031.38 239.34 14,340.43 2,607.66 STORMWATER 569.11 Nil 8,488.66 12,422.10 Total 9,669.65 8,689.14 39,053.86 25,784.52

NON-RESIDENTIAL DEVELOPMENTS

DEVELOPMENT CONTRIBUTION $ PER ADDITIONAL 100M2 OF GROSS FLOOR AREA OR IMPERVIOUS SURFACE AREA

CALCULATION CITYWIDE HOBSONVILLE HOBSONVILLE MASSEY NORTH TYPE PENINSULA VILLAGE TRANSPORT Gross fl oor area 3,333.06 3,333.06 3,333.06 3,333.06 WATER SUPPLY Gross fl oor area 41.35 174.58 2,895.82 981.31 WASTEWATER Gross fl oor area 360.98 83.77 5,019.15 912.68 STORMWATER or Impervious 210.78 Nil 3,143.95 4,600.78 surface area Total 3,946.17 3,591.41 14,391.98 9,827.83

DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS (1) All ﬁ gures shown do not include GST. At the time of payment, GST will be added. (2) Unit of demand per 100m2 for non-residential is based on the gross property area at subdivision and gross ﬂ oor area at land use or building consent except for stormwater which is based on impervious surface area in all cases. SECTION THREE

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SCHEDULE B - CALCULATING YOUR DEVELOPMENT CONTRIBUTION - AS PART OF THE RESOURCE CONSENT PROCESS

You can get a gross estimate of your development contribution before you apply for a building consent, in the following ways:

Or you can get an estimate and then ﬁ nal total of your development contribution through the Resource Consent process:

Lodge your application at the Counter Give gross estimate if asked for

or mail your application to the Council Rejects Application

Application is Application is allocated to a allocated to a Planner Planner

1st 5 days 1st 5 days

Accepts Accepts Application Application

The Planner writes an 1st 10 days acknowledgement letter calculates credits & Gives an estimate of writes a report development contribution.

Responds to Resource Consent Decision & Planner DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS advice letter sent with the ﬁ nal development contribution payable See below wording for payment.

Subdivision: “Prior to Section 224c Land Use: “Payment is expected prior RMA payment of the development to issue of consent. Commencement of

contribution is required.” consent prior to payement is unlawful.” SECTION THREE

Note: The development contribution payment is based on the Development Contribution Schedule at date of payment.

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CALCULATING YOUR DEVELOPMENT CONTRIBUTION - AS PART OF THE BUILDING CONSENT PROCESS

You can get a gross estimate of your development contribution before you apply for a building consent, in the following ways:

Or you can get an estimate and then ﬁ nal total of your development contribution through the Building Consent process:

Lodge your application at the Counter Give gross estimate if asked for

or mail your application to the Council Rejects Application

Building Control Account Manager

Accepts Application

Other Specialist Planner i.e. EcoWater considers the Writes report & application calculates credits

Planner writes conditions & does the ﬁ anl calculation DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS

Building Control Account Manager Final Report with Advance Letter from the Planner

SECTION THREE “Payment is expected prior to issue of consent. Commencement of consent prior to payment is unlawful.”

Note: The development contribution payment is based on the Development Contribution Schedule at date of payment.

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APPENDIX 1 – MAPS DEPICTING CATCHMENT AREAS FOR RELEVANT ACTIVITIES DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS SECTION THREE

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APPENDIX 2 - CAPITAL EXPENDITURE

LONG TERM COUNCIL COMMUNITY PLAN 2009 - 2019 CAPITAL EXPENDITURE 2009 TO 2019

Details Total Capital Funded from Funded from Percent Expenditure Financial Development % ($000’s) Contributions Contributions ($000’s) ($000’s)

NETWORK INFRASTRUCTURE Wastewater 124,024 - 22,009 17.74 Stormwater 135,035 - 32,606 24.15 Water Supply 76,744 - 7,790 10.15 Transport 702,214 - 118,407 16.86

COMMUNITY INFRASTRUCTURE Parks Infrastructure and reserves 179,763 37,478 25,161 14.00 Libraries 45,265 - 8,739 19.30 Leisure and Community Facilities 30,896 - 18,077 58.51 Cemetery 16,569 - - - Strategic Projects 81,477 - - - Other 107,487 - - -

TOTAL 1,499,474 37,478 232,779 15.52

FUNDED AS FOLLOWS: Debt 439,435 29.31 Rates 408,004 27.21 Other External Sources 76,232 5.08 Vested assets 55,448 3.70 Financial Contributions 37,478 2.50 Development Contributions 232,779 15.52 Proceeds from Land Sales 24,900 1.66 Reserves 10,952 0.73 NZTA Subsidies 214,246 14.29

TOTAL 1,499,474 100 DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS SECTION THREE

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APPENDIX 3 - LEGISLATION

This Policy has been prepared under the following Sections 102. FUNDING AND FINANCIAL POLICIES— of the Local Government Act 2002 – s101, s102, s106, (1) A local authority must, in order to provide ss197 –210, and Schedule 13. For convenience, the Local predictability and certainty about sources and levels Government Act 2002 statutory provisions relating to of funding, adopt the funding and ﬁ nancial policies Development and Financial Contributions are included here, described in subsection (4). as are the relevant ss RMA 407, 409 (2) A local authority must, subject to subsection (3), LOCAL GOVERNMENT ACT 2002 use the special consultative procedure in adopting a policy under this section.

101. FINANCIAL MANAGEMENT— (3) A policy under this section may be adopted by (1) A local authority must manage its revenues, a local authority as part of its long-term council expenses, assets, liabilities, investments, and community plan. general fi nancial dealings prudently and in a manner that promotes the current and future interests of the (4) A local authority must adopt— community. (a) a revenue and fi nancing policy; and (2) A local authority must make adequate and effective (b) a liability management policy; and provision in its long-term council community plan (c) an investment policy; and and in its annual plan(where applicable) to meet the (d) a policy on development contributions or expenditure needs of the local authority identifi ed in fi nancial contributions; and that long-term council community plan and annual plan. (e) a policy on partnerships between the local authority and the private sector; and (3) The funding needs of the local authority must (f) a policy on the remission and postponement of be met from those sources that the local rates on Maori freehold land. authority determines to be appropriate, following consideration of,— (5) A local authority may adopt all or any of the following (a) in relation to each activity to be funded,— policies: (i) the community outcomes to which the (a) a rates remission policy: activity primarily contributes; and (b) a rates postponement policy. (Ii) the distribution of benefi ts between the community as a whole, any identifi able part (6) A policy described in this section may be amended of the community, and individuals; and only as an amendment to the long-term council community plan. (iii) the period in or over which those benefi ts are expected to occur; and 106. POLICY ON DEVELOPMENT CONTRIBUTIONS OR

(iv) the extent to which the actions or inaction of AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS particular individuals or a group contribute to FINANCIAL CONTRIBUTIONS— the need to undertake the activity; and (1) In this section, ‘‘fi nancial contributions’’ has (v) the costs and benefi ts, including the meaning given to it by section 108(9) of the consequences for transparency and Resource Management Act 1991. accountability, of funding the activity distinctly from other activities; and (2) A policy adopted under section 102(4)(d) must, in SECTION THREE (b) the overall impact of any allocation of liability for relation to the purposes for which development revenue needs on the current and future social, contributions or fi nancial contributions may be economic, environmental, and cultural well- required,— being of the community. (a) summarise and explain the capital expenditure identifi ed in the long- Cf 1974 No 66 s 122C (1)(a)-(c),(f) term council community plan that

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the local authority expects to incur to meet 197. INTERPRETATION— the increased demand for community facilities resulting from growth; and In this subpart,— (b) state the proportion of that capital expenditure “allotment’’ has the meaning given to it in section 218(2) of that will be funded by— the Resource Management Act 1991

(i) development contributions: “community infrastructure’’ means— (ii) fi nancial contributions: (a) land, or development assets on land, owned or (iii) other sources of funding; and controlled by the territorial authority to provide public (c) explain, in terms of the matters required to amenities; and be considered under section 101(3), why the (b) includes land that the territorial authority will acquire for local authority has determined to use these that purpose funding sources to meet the expected capital ‘ expenditure referred to in paragraph(a); and ‘development’’ means— (d) identify separately each activity or group of (a) any subdivision or other development that generates activities for which a development contribution a demand for reserves, network infrastructure, or or a fi nancial contribution will be required and, community infrastructure; but in relation to each activity or group of activities, (b) does not include the pipes or lines of a network utility specify the total amount of funding to be sought operator by development contributions or fi nancial contributions; and ‘‘development contribution’’ means a contribution— (e) if development contributions will be required, (a) provided for in a development contribution policy comply with the requirements set out in sections included in the long-term council community plan of a 201 and 202; and territorial authority; and (f) if fi nancial contributions will be required, (b) calculated in accordance with the methodology; and summarise the provisions that relate to fi nancial (c) comprising— contributions in the district plan or regional plan prepared under the Resource Management Act (i) money; or 1991. (ii) land, including a reserve or esplanade reserve (other than in relation to a subdivision consent), but (3) If development contributions are required, the local excluding Maori land within the meaning of Te Ture authority must keep available for public inspection Whenua Maori Act 1993, unless that Act provides the full methodology that demonstrates how the otherwise; or calculations for those contributions were made. (iii) both

(4) If fi nancial contributions are required, the local ‘‘development contribution policy’’ means the policy on authority must keep available for public inspection development contributions included in the long-term council the provisions of the district plan or regional plan community plan of the territorial authority under section prepared under the Resource Management Act DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS 102(4)(d) 1991 that relate to fi nancial contributions. ‘‘methodology’’ means the methodology for calculating (5) The places within its district or region at which the development contributions set out in Schedule 13 local authority must keep the information specifi ed in subsections (3) and(4) available for public inspection ‘‘network infrastructure’’ means the provision of roads and are— other transport, water, wastewater, and stormwater collection SECTION THREE (a) The principal public offi ce of the local authority; and management and (b) Such other places within its district or region ‘‘network utility operator’’ has the meaning given to it by as the local authority considers necessary section 166 of the Resource Management Act 1991 in order to provide members of the public ‘‘service connection’’ means a physical connection to a with reasonable access to the methodology, service provided by, or on behalf of, a territorial authority. provisions, or plan.

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198. POWER TO REQUIRE CONTRIBUTIONS FOR (2) This subpart does not prevent a territorial DEVELOPMENTS— authority from accepting from a person, with that (1) A territorial authority may require a development person’s agreement, additional contributions for contribution to be made to the territorial authority reserves, network infrastructures, or community when granting— infrastructures. (a) a resource consent under the Resource Management Act 1991 for a development: 201. CONTENTS OF DEVELOPMENT CONTRIBUTIONS (b) a building consent under the Building Act 1991: POLICY— (c) an authorisation for a service connection. (1) If a territorial authority has determined to seek funding for community facilities under this subpart, (2) A territorial authority may only require a the policy required by section 102(4)(d) must include, development contribution as provided for in a policy in summary form, in addition to the matters set out in adopted under section 102(4)(d) that is consistent section 106,— with section 201. (a) an explanation of, and justifi cation for, the way each development contribution in the schedule 199. BASIS ON WHICH DEVELOPMENT required by subsection(2) is calculated; and CONTRIBUTIONS MAY BE REQUIRED— (b) the signifi cant assumptions underlying the calculation of the schedule of development (1) Development contributions may be required contributions, including an estimate of the in relation to developments if the effect of the potential effects, if there is a signifi cant level of developments is to require new or additional uncertainty as to the scope and nature of the assets or assets of increased capacity and, as a effects; and consequence, the territorial authority incurs capital expenditure to provide appropriately for— (c) the conditions and criteria(if any) that will apply (a) reserves: in relation to the remission, postponement, or refund of development contributions, or the (b) network infrastructure: return of land; and (c) community infrastructure. (d) the basis on which the value of additional allotment or land is assessed for the purposes of (2) This section does not prevent a territorial authority section 203(1). from requiring a development contribution that is to be used to pay, in full or in part, for capital (2) A development contributions policy must contain a expenditure already incurred by the territorial schedule in accordance with section 202. authority in anticipation of the development.

(3) In subsection (1), ‘‘effect’’ includes the cumulative 202. CONTENTS OF SCHEDULE TO DEVELOPMENT effects that a development may have in combination CONTRIBUTIONS POLICY— with another development. (1) The schedule of development contributions required 200. LIMITATIONS APPLYING TO REQUIREMENT FOR by section 201(2) must specify— DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS DEVELOPMENT CONTRIBUTION— (a) the development contributions payable in each (1) A territorial authority must not require a development district, calculated, in each case, in accordance contribution for a reserve, network infrastructure, or with the methodology in respect of— community infrastructure if, and to the extent that— (i) reserves; and (a) it has, under section 108(2)(a) of the Resource Management Act 1991, imposed a condition (ii) network infrastructure; and

on a resource consent in relation to the same (iii) community infrastructure; and SECTION THREE development for the same purpose; or (b) the event that will give rise to a requirement for (b) the developer will fund or otherwise provide for a development contribution under section 198, the same reserve, network infrastructure, or whether upon granting— community infrastructure; or (i) a resource consent under the (c) the territorial authority has received or will Resource Management Act receive funding from a third party. 1991; or

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(ii) a building consent under the Building Act purchase or development of reserves within its district, 1991; or which may include— (iii) an authorisation for a service connection. (a) the development of community or recreational facilities associated with the use of a reserve: (2) If different development contributions are payable in (b) the provision or improvement of recreational different parts of the district, subsection(1) applies in relation to the parts of the district. facilities at a school established or about to be established under Part 12 of the Education Act (3) The specifi cations required under subsection(1) or 1989, if— subsection(2) must be given separately in relation to (i) a licence has been granted under section 6A of each activity or group of activities for which separate the Education Lands Act 1949 in relation to the development contributions are required. use or occupation of the community recreational facilities; and 203. MAXIMUM DEVELOPMENT CONTRIBUTIONS NOT (ii) the Minister for Sport and Recreation has TO BE EXCEEDED— notifi ed the local authority in writing that he or (1) Development contributions for reserves must not she is satisfi ed that the licence provides for the exceed the greater of— reasonable use of the community recreational (a) 7.5% of the value of the additional allotments facilities by members of the public: created by a subdivision; and (c) the purchase of land or an interest in land— (b) the value equivalent of 20 square metres of land (i) to be held for conservation purposes under the for each additional household unit created by the Reserves Act 1977: development. (ii) that is, or will be, subject to a conservation covenant under section 77 of the Reserves Act (2) Development contributions for network infrastructure 1977: or community infrastructure must not exceed the (d) payment, on terms and conditions the territorial amount calculated by multiplying the cost of the authority thinks fi t, to— relevant unit of demand calculated under clause 1 of Schedule 13 by the number of units of demand (i) another local authority or public body in which assessed for a development or type of development, land in the district is vested to enlarge, enhance, as provided for in clause 2 of Schedule 13. or develop the land for public recreation purposes: 204. USE OF DEVELOPMENT CONTRIBUTIONS BY (ii) the administering body of a reserve held under the Reserves Act 1977 to enlarge, enhance, or TERRITORIAL AUTHORITY— (1) A development contribution— develop the reserve: (a) must be used for, or towards, the capital (iii) the trustees or body corporate in whom is vested expenditure of the reserve, network a Maori reservation to which section 340 of infrastructure, or community infrastructure for Te Ture Whenua Maori Act 1993 applies, to which the contribution was required, which enhance the reservation for cultural or other DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS may also include the development of the purposes: reserve, network infrastructure, or community (iv) any person, to secure an appropriate interest in infrastructure; but perpetuity in land for conservation purposes. (b) must not be used for the maintenance of the reserve, network infrastructure, or community 206. ALTERNATIVE USES OF DEVELOPMENT infrastructure. CONTRIBUTIONS FOR RESERVES—

SECTION THREE Despite section 205, if the territorial authority considers (2) Subsection (1) is subject to section 205. that the district in which the development is situated has adequate reserves, or that it is impracticable to 205. USE OF DEVELOPMENT CONTRIBUTIONS FOR purchase or develop reserves in that locality, it may, if RESERVES— it considers it will beneﬁ t the residents in the district in A territorial authority must use a development which the development is situated, use the development contribution received for reserves purposes for the contributions—

174 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY

(a) to add to, improve, or develop land outside the a territorial authority may,— district that is vested in, or controlled by, the (a) in the case of a development contribution required territorial authority for public recreation purposes: under section 198(1)(a),— (b) with the consent of the Minister and subject to the (i) withhold a certifi cate under section 224(c) of the terms and conditions the Minister thinks fi t, to make Resource Management Act 1991: payments or advance money to a local authority (ii) prevent the commencement of a resource or public body to add to, improve, or develop land consent under the Resource Management Act outside the district that is vested in, or controlled 1991: by, the local authority or public body for public recreation purposes: (b) in the case of a development contribution required under section 198(1)(b), withhold a code compliance (c) if the territorial authority has control of the foreshore certifi cate under section 43 of the Building Act 1991: or the bed of a lake or a harbour under a coastal permit by virtue of section 384(1)(b) or section (c) in the case of a development contribution required 425(3)(a) of the Resource Management Act 1991,— under section 198(1)(c), withhold a service connection to the development: (i) to improve or develop the foreshore(whether within or outside the district) for public (d) in each case, register the development contribution recreational purposes: under the Statutory Land Charges Registration Act 1928, as a charge on the title of the land in respect (ii) to erect, improve, or develop for public of which the development contribution was required. recreational purposes—

(A) the bed of the harbour or of the sea 209. REFUND OF MONEY AND RETURN OF LAND IF immediately contiguous to the foreshore; or DEVELOPMENT DOES NOT PROCEED— (B) the bed of a lake(whether within or outside (1) A territorial authority must refund or return to the district). the consent holder or to his or her personal representative a development contribution paid or 207. POWER TO USE MONEY COLLECTED AND HELD land set aside under this subpart if— UNDER LOCAL GOVERNMENT ACT 1974 OR (a) the resource consent— RESOURCE MANAGEMENT ACT 1991— (i) lapses under section 125 of the Resource (1) This section applies to money collected— Management Act 1991; or (a) as contributions under Part 20 of the Local (ii) is surrendered under section 138 of that Act; Government Act 1974: or (b) as contributions under sections 407 or 409 of the (b) the building consent lapses under section 41 of Resource Management Act 1991. the Building Act 1991; or (2) If, at the commencement of this subpart, a territorial (c) the development or building in respect of which authority holds money to which this section applies, the resource consent or building consent was the territorial authority may, with the written approval granted does not proceed; or of the Minister, use the money as if it had been (d) the territorial authority does not provide the collected in accordance with this subpart,— reserve, network infrastructure, or community (a) in the case of money collected under Part 20 of infrastructure for which the development AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS the Local Government Act 1974, in accordance contribution was required. with this subpart; and (b)in the case of money collected under sections 407 or 409 of the (2) A territorial authority may retain any portion of a Resource Management Act 1991, in accordance development contribution or land referred to in with the conditions imposed under those subsection (1) of a value equivalent to the costs sections. incurred by the territorial authority in relation to the development or building and its discontinuance. SECTION THREE

208. POWERS OF TERRITORIAL AUTHORITY IF DEVELOPMENT CONTRIBUTIONS NOT PAID OR 210. REFUND OF MONEY OR RETURN OF LAND IF MADE— NOT APPLIED TO SPECIFIED RESERVE Until a development contribution required in relation to a PURPOSES— development has been paid or made under section 198, (1) If a development contribution has been

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 175 DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY CONTINUED

required for a specifi ed reserve purpose, a territorial that may be required for a particular development authority must— or type of development, a territorial authority must (a) refund money received for that purpose, if the demonstrate in its methodology that it has attributed money is not applied to that purpose within 10 units of demand to particular developments or types of years after the authority receives the money development on a consistent and equitable basis. or other period specifi ed in the development contribution policy; or RESOURCE MANAGEMENT ACT 1991 (b) return land acquired for the specifi ed reserve purpose, if the authority does not use the land for that purpose within 10 years after the 407. SUBDIVISION CONSENT CONDITIONS— authority acquires the land or other period agreed by the territorial authority and the person (1) Where an application for a subdivision consent who paid the development contribution. is made in respect of land for which there is no district plan, or where the district plan does not (2) A territorial authority may retain part of the money include relevant provisions of the kind contemplated or land referred to in subsection (1) of a value by section [108(2)(a)] or 220(1)(a), the territorial equivalent to the costs of the authority in refunding authority may impose, as a condition of the the money or returning the land. subdivision consent, any condition that could have been imposed under sections 283, 285, 286, 291, 321A, or 322, as the case may be, of the Local SCHEDULE 13 Government Act 1974 if those sections had not been S 197 repealed by this Act. METHODOLOGY FOR CALCULATING DEVELOPMENT (2) For the purposes of subsection (1), every reference CONTRIBUTIONS in sections 283, 285, 286, 291, 321A, and 322 of the Local Government Act 1974— 1. METHODOLOGY FOR RELATING COST OF (a) To an application for the approval of a scheme COMMUNITY FACILITIES TO UNITS OF DEMAND— plan, shall be deemed to be a reference to an In order to calculate the maximum development application for a resource consent; and contribution in respect of a community facility or an activity or group of activities for which a separate (b) To an allotment on a scheme plan, shall be development contribution is to be required, a territorial deemed to be a reference to the allotments in authority must fi rst— respect of which a subdivision consent is sought.

(a) identify the total cost of the capital expenditure [(3) Notwithstanding the limitation on the imposition of that the local authority expects to incur in respect conditions in section 105(1), where an application is of the community facility, or activity or group of made for a subdivision consent and the subdivision activities, to meet increased demand resulting from is deemed to be a controlled activity under section growth within the district, or part of the district, as 405, conditions may be imposed under sections 108 the case may be, as set out in the long-term council and 220.] community plan in accordance with section 106(2) DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS (a); and [(4) This section applies to applications for subdivision (b) identify the share of that expenditure attributable to consent in respect of every kind of subdivision of each unit of demand, using the units of demand for land within the meaning of section 218(1), including the community facility or for separate activities or (but not by way of limitation) any subdivision to be groups of activities, as the case may be, by which effected by the grant of a company lease or cross the impact of growth has been assessed. lease or by deposit of a unit title.] SECTION THREE

2. ATTRIBUTION OF UNITS OF DEMAND TO [(5) This section shall cease to have effect in a district DEVELOPMENTS— on the date that the proposed district plan for the For the purpose of determining in accordance with district becomes operative, not being a proposed section 203(2) the maximum development contribution district plan constituted under section 373.]

176 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE DEVELOPMENT CONTRIBUTIONS AND FINANCIAL CONTRIBUTIONS POLICY

409. FINANCIAL CONTRIBUTIONS FOR [(2A)For the purposes of subsection (1)(b), section 294 DEVELOPMENTS— of the Local Government Act 1974 shall be read as if that section had not been repealed by this Act and (1) Subject to section 410, where an application for as if section 294(1) of that Act did not contain the a resource consent for a development is made in words “and the assessed value of the development respect of land for which there is no district plan, or is not in excess of $50 million’’.] where the district plan does not include provisions of the kind contemplated by section [108(2)(a)], the (3) For the purposes of this section and sections 410 territorial authority may impose, as a condition of the and 411, ``development’’ has the same meaning as consent,— in section 271A of the Local Government Act 1974 (a) Any condition described in any of sections before its repeal by this Act. 283, 289, 291, 292, 321A, or 322 of the Local [(4) Where a district plan or proposed district plan has Government Act 1974 that, by virtue of section been deemed to be constituted by section 373 281 or section 294B of that Act, could have been and a provision, expressly or by implication and imposed in respect of a development if those whether or not subject to conditions, of that plan or sections had not been repealed by this Act: proposed plan authorised a development without further consent or approval from the former consent (b) Any requirement that could have been imposed authority being required, then, notwithstanding in respect of a development under section 294 section 374(3)(a), such a development is deemed of the Local Government Act 1974 (if that section to be a controlled activity only for the purposes of had not been repealed by this Act) to pay a subsections (1) and (2), and any application for a reserves contribution or to set aside, as public land use consent to which this subsection applies reserve, any area of land. shall not be notiﬁ ed pursuant to section 93.]

(2) For the purposes of subsection (1)— [(5) This section shall cease to have effect in a district (a) Every reference in sections 283, 289, 291, 292, on the date that the proposed district plan for the 321A, and 322 of the Local Government Act district becomes operative, not being a proposed 1974— district plan constituted under section 373 (i) To an application for the approval of a scheme plan, shall be deemed to be a reference to an application for a resource consent; and (ii) To the approval of a scheme plan, shall be deemed to be a reference to a grant of a resource consent; and (b) Every reference in section 294 of the Local Government Act 1974 to a requirement under section 293 of that Act to notify the Council of a proposed development shall be deemed to

be a reference to an application for a resource AND FINANCIAL CONTRIBUTIONS POLICY DEVELOPMENT CONTRIBUTIONS consent. SECTION THREE

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 177 LIABILITY MANAGEMENT AND INVESTMENT POLICY

CONTENTS PAGE 1 INTRODUCTION 1 INTRODUCTION 178 1.1 PURPOSE OF POLICY 2 SCOPE AND OBJECTIVES 178 The purpose of the Liability Management and Investment Policy is to outline approved policies and procedures in respect of all treasury 3 MANAGEMENT activities undertaken by Waitakere City Council (“the Council”) and the RESPONSIBILITIES 179 management of other liabilities that are incurred in the normal course of 4 LIABILITY MANAGEMENT Council business. The formalisation of such policies and procedures will POLICY AND LIMITS 184 enable fi nancial risks within the Council to be prudently managed. 5 RISK RECOGNITION/ IDENTIFICATION/ As circumstances change, the policies and procedures outlined in MANAGEMENT 185 this policy will be modifi ed to ensure that treasury risks within the Council continue to be well managed. Reviews will be conducted 6 MEASURING TREASURY when necessary, at least annually to test the existing policy against the PERFORMANCE 191 following criteria: 7 CASH MANAGEMENT 193 • Industry “best practices” for a Council the size and type of Waitakere 8 REPORTING – City Council. PERFORMANCE • The risk bearing ability and tolerance levels of the underlying revenue MEASUREMENT 193 and cost drivers. 9 POLICY REVIEW 194 • The effectiveness and effi ciency of the Liability Management and Investment Policy and treasury management function to recognise, measure, control, manage and report on the Council’s fi nancial ATTACHMENT I - exposure to market interest rate risks, funding risk, liquidity risks and DEFINITION OF FINANCIAL other associated risks. INSTRUMENTS 194 • The operation of a pro-active treasury management in an environment 1 FORWARD RATE of control and compliance. AGREEMENTS (FRAS) 194 • The robustness of the policy’s risk control limits and risk spreading mechanisms against normal and abnormal interest rate market 2 INTEREST RATE SWAPS 195 movements and conditions. 3 INTEREST RATE OPTIONS 197 • Assist the Council in achieving strategic objectives relating to ratepayers.

It is intended that the policy be distributed to all personnel involved in any aspect of the Council’s ﬁ nancial management. In this respect, all staff must be completely familiar with their responsibilities under the policy at all times.

2 SCOPE AND OBJECTIVES

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT 2.1 SCOPE • This document identifi es the policy and procedures of the Council in respect of treasury management and other fi nancial management activities. • The policy has not been prepared to cover other aspects of the Council’s operations, particularly transactional banking management, systems of internal control and fi nancial management practices. SECTION THREE Other policies and procedures of the Council cover these matters. • Planning tools and mechanisms are also outside of the scope of this policy.

2.2 OBJECTIVES The objective of this Liability Management and Investment Policy is

178 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE LIABILITY MANAGEMENT AND INVESTMENT POLICY

to control and manage costs that can infl uence • Arrange and structure long term funding for the operational budgets and public equity. Specifi cally: Council at the lowest achievable interest margin from debt lenders. Optimise fl exibility and 2.2.1 Statutory Objectives spread of debt maturity within the funding risk • All borrowing, investments and incidental limits established, where possible, by this policy. fi nancial arrangements (eg. use of interest rate • Monitor and report on fi nancing/borrowing hedging fi nancial instruments) will be approved covenants and ratios under the obligations of the by resolution of the Council in accordance with Council’s lending/security arrangements. the Local Government Act 2002. (ref Schedule 7, • Monitor the Council’s return on investments in clause 32) Council controlled organisations, property and • All legal documentation in respect to borrowing other shareholdings. and fi nancial instruments will be approved by • Ensure the Council, management and relevant the Council’s solicitors prior to the tabling of the staff are kept abreast of latest treasury products, resolution. methodologies, and accounting treatments • The Council will not enter into any borrowings or through training and in-house presentations. incidental agreements denominated in a foreign • Maintain liquidity levels and manage cash currency. (ref Sect. 113) fl ows within the Council to meet known and reasonable unforeseen funding requirements. • The Council will not transact with any Council controlled organisations on terms more • Ensure that all statutory requirements of a favourable than that which the Council would fi nancial nature are adhered to. achieve without pledging rates revenue. (ref • Develop and maintain relationships with fi nancial Sect. 63) institutions

• A resolution of the Council is not required for hire purchase, credit or deferred purchase of 3 MANAGEMENT goods if: • the period of indebtedness is less than 91 days RESPONSIBILITIES (including rollovers); or • the goods or services are obtained in the 3.1 DELEGATIONS OF AUTHORITIES ordinary course of operations on normal terms Pursuant to clause 32 (2), schedule 7, of the Local for amounts not exceeding in aggregate, an Government Act 2002, the Council may make amount determined by resolution of the Council. delegations to offi cers of the Council in order to allow for the effi cient conduct of Council business. • (ref. Sect. 112) Clause 32 (3), schedule 7 of this Act allows offi cers

to delegate those powers to other ofﬁ cers. 2.2.2 General Objectives • Minimise the Council’s costs and risks in the Not withstanding clause 32 (1)(c), schedule 7 the management of its borrowings and maximise its power to borrow money, or purchase or dispose return on investments. of assets, other than in accordance with the long • Minimise the Council’s exposure to adverse term council community plan remains the sole

interest rate movements. responsibility of the Council. This responsibility AND INVESTMENT POLICY LIABILITY MANAGEMENT cannot be delegated. • Minimise the Council’s exposure to adverse price movements in certain commodities in The limits of approved delegation limits to Offi cers conjunction with the effected business units are contained within the Councils Delegations to actual exposure. Offi cers – Responsibilities policy. • Monitor, evaluate and report on treasury performance. 3.2 OVERVIEW OF MANAGEMENT STRUCTURE SECTION THREE • Borrow funds and transact risk management instruments within an environment of control and • The Council will operate the treasury compliance under the Council approved Liability management function as a cost centre. Management and Investment Policy so as to • All treasury management and hedging activities protect the Council’s fi nancial assets and costs. are to be undertaken by that function.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 179 LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

3.3 THE COUNCIL risk undertaken. The Council has ultimate responsibility for • Issues raised by auditors (both internal ensuring that there is an effective policy for the and external) in respect of any signifi cant management of its risks. In this respect the Council weaknesses in the treasury function are decides the level and nature of risks that are resolved immediately. acceptable, given the underlying objectives of the • Submissions are received from management Council. requesting approval for one-off transactions falling outside policy guidelines. The Council is responsible for approving all policy, as detailed in this Liability Management and The Finance and Operational Performance Investment Policy and any changes required from Committee of Council is currently delegated to time-to-time. While the policy can be reviewed undertake this monitoring role, where the Committee and changes recommended by other persons, is not empowered to act, the Committee shall report the authority to make or change policy cannot be to Council and make a recommendation as required. delegated. Further, any changes to this policy with respect to Section 102 (2) will require the use of the special consultative procedure as specifi ed within 3.4 CHIEF EXECUTIVE OFFICER the Local Government Act 2002. While the Council has fi nal responsibility for the policy governing the management of the Council’s In this respect, the Council has responsibility for risks, it delegates overall responsibility for the approving: day-to-day management of such risks to the Chief • The long term fi nancial position of the Council Executive Offi cer. through the 10 year Long Term Council Community Plan and the adopted Annual Plan. The Chief Executive Offi cer’s responsibilities include: • New debt/funding facilities. • Delegate authority to other offi cers in • New commodity hedging facilities. accordance with Council’s Delegations Policy. • Liability Management and Investment Policy • Ensure the Council’s policies comply with including the following delegated authorities: existing and new legislation. - Borrowing, investment and dealing limits • Approve authorised signatories in respect to and the respective authority levels delegated bank accounts and funding facilities. to the Chief Executive Offi cer and other management. 3.5 DIRECTOR: FINANCE - Interest rate exposure guidelines and The Director: Finance’s responsibilities are as incidental arrangements that can be entered follows: into. - Liquidity, and specifi c borrowing guidelines. • Act in accordance with delegations from Council. - Provisions for the repayment of debt. • Act in accordance with delegations from the - Counterparties and credit guidelines. Chief Executive Offi cer.

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT - Risk management methodologies and • Delegate authority to other offi cers ensuring benchmarks. appropriate segregation of duties. - Guidelines for the use of fi nancial • Report to the Chief Executive Offi cer. instruments. • Approve authorised signatories in respect of - The issuance of securities. bank accounts and funding facilities. - Receive an annual review report on the • Authorise the opening and closing of any bank SECTION THREE policy. accounts. • Approve re-fi nancing of existing debt. The Council must also ensure that: • Approve treasury transactions in accordance • It receives regular information from management with policy parameters outside of the delegated on risk exposure and fi nancial instrument usage authority limits of other offi cers, so delegated by in a form, that is understood, and that enables it the Director: Finance. to make informed judgements as to the level of

180 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE LIABILITY MANAGEMENT AND INVESTMENT POLICY

• Report all treasury activities on a timely basis. • Investigate fi nancing alternatives to minimise • Advise of signifi cant treasury events to borrowing costs, margins and interest rates, the Finance and Operational Performance making recommendations to the Finance Committee. and Operational Performance Committee as appropriate. • Authorise interest rate hedge transactions (swaps, FRA’s and options) with bank • Negotiate bank funding facilities and manage counterparties to change the fi xed/fl oating mix to bank and other fi nancial institution relationships, re-profi le the Council’s interest rate risk. including the debenture trust deed and stock register. • Decisions and authorisations to raise and lower fi xed rate (interest rate market price re-set >12 • Monitor and review the performance of the months) percentage of total debt within interest treasury function in terms of achieving the rate policy risk control limits. objectives of minimising and stabilising funding costs year-to-year. • Recommend authorised signatories and delegated authorities in respect of all treasury • Issue cheques and approve direct debt dealing and banking activities. authorities for money market, interest rate risk management, or capital market transactions. • Propose new funding requirements for consideration and submission to the Council. 3.6 DIRECTOR: FINANCE DUTIES DELEGATED TO • Review and make recommendations on all aspects of the Liability Management and OTHER OFFICERS Investment Policy including dealing limits, The Director: Finance may delegate certain approved instruments, counterparties, working transactional limits to other offi cers. However, such capital policies and general guidelines for the delegations should ensure appropriate segregation use of fi nancial instruments. of duties. Such delegations include, but are not limited to the following: • Conduct an annual review of the Liability Management and Investment Policy, treasury • Execute treasury transactions in accordance procedures and all dealing and counterparty with set limits. limits. • Monitor treasury exposure on a regular basis, • Receive advice of breaches of the Liability including current and forecast cash position, Management and Investment Policy and interest rate exposures and borrowings. signifi cant treasury events from other delegated • Provide written evidence of executed deals on offi cers. an agreed form immediately to the Accountant. • Manage the long term fi nancial position of • Complete daily and weekly reports covering the Council in accordance with the Council’s cash/liquidity, interest rate risk position, requirements. transaction activity and performance. • Ensure that all borrowing and fi nancing • Co-ordinate the compilation of cash fl ow covenants to lenders are adhered to. forecasts and cash management. • Design, analyse, evaluate, test and implement • Manage the operation of all bank accounts risk management strategies to position the including arranging group offsets, automatic AND INVESTMENT POLICY LIABILITY MANAGEMENT interest rate risk profi le to be protected against sweeps and other account features. adverse market movements within the approved • Handle all administrative aspects of bank policy limits. counterparty agreements and documentation • Ensure management procedures and policies such as loan agreements and ISDA swap are implemented in accordance with this Liability documents.

Management and Investment Policy. • Prepare treasury reports. SECTION THREE • Ensure all ﬁ nancial instruments are valued and • Account for all treasury transactions in accounted for correctly in accordance with accordance with generally accepted accounting current best practice standards. principles and the Council’s internal policies. • Monitor credit ratings of approved • Monitor all treasury exposures daily. counterparties.

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 181 LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

• Forecast future cash requirements. • Provide regular short term and long term cash fl ow and debt projections to the Director: Finance. • Report any policy breaches in a timely fashion to the Director: Finance. • Check all treasury deal confi rmations against deal documentation and report any irregularities immediately to the Director: Finance. • Review monthly reconciliations and summaries of outstanding fi nancial contracts from banking counterparties to internal records. • Complete all treasury transaction confi rmations and settlements on a daily basis.

3.7 DELEGATION OF AUTHORITY LIMITS Treasury transactions entered into by the Council without the proper authority are difﬁ cult to cancel given the legal doctrine of “apparent authority”. Also, insufﬁ cient authorities for a given bank account or facility may prevent the execution of certain transactions (or at least cause unnecessary delays).

To prevent these types of situations, the following procedures must be complied with: • All delegated authorities and signatories must be reviewed at least annually to ensure that they are still appropriate and current. • A comprehensive letter must be sent to all bank counterparties at least every year that details all relevant current delegated authorities of the Council and contracted personnel empowered to bind the Council.

Whenever a person with delegated authority on any account or facility leaves the Council, all relevant

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT banks and other counterparties must be advised in

???????? writing immediately to ensure that no unauthorised instructions are to be accepted from such persons.

SECTION THREE SECTION ONE

182 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B The Council has the following responsibilities, either directly itself, or via the following stated delegated authorities. delegated stated following the via or itself, directly either responsibilities, following the has Council The nulrve fplc ietr iac N/A N/A Unlimited Finance Director: Unlimited Finance Director: Signatories Authorised two Any Finance Director: policy with with compliance conjunction in Ensuring Finance Director: ofpolicy review Annual accounts bank Opening/closing ofsignatories lists Authorising Risks Commodity Hedge management and tolegislative (subject Unlimited investing,(borrowing, interest rate risk amount transaction daily Maximum facilities approved Council with accordance inManaging funding maturities pro risk rate interest Adjust Council The policy outside transactions Approving Re- Borrowing new debt The Council Unlimited (subject to legislative and and tolegislative (subject Unlimited and tolegislative (subject Unlimited Council The Of Executive Chief management risk day-to-day Overall Council The debt new Borrowing policy changing and Approving fi nancing existing debt Chief Executive Of Executive Chief debt existing nancing CIIYATOIYLIMIT AUTHORITY ACTIVITY fi le Director Finance delegating to the tothe delegating Finance Director le the Director of an effected unit effected ofan Director the Delegated Finance Director: Director: Finance Director: Director: Finance Per risk control limits control risk Per Of Executive Chief Council The Finance Director: signatory authorised other one and Finance Director: by the off signed individually adjustment each Funds Accountant Director: Finance Director: fi nance of nance SECTION THREE SECTION fi fi fi cer cer cer fi cer LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY signatories. authorised totwo subject million $5 borrowing. term short Million $30 signatory. authorised other by one countersigning to subject limitations) regulatory other and tolegislative (subject Unlimited limitations) regulatory other and tolegislative (subject Unlimited than the actual commodity exposure commodity actual the than greater tobe not instrument Hedging Subject topolicy Subject other regulatory limitations) regulatory other as per risk control limits control risk per as pro maturity rate Fixed Agreed Agreed Fixed/ Subject topolicy Subject other regulatory limitations) regulatory other limitations) regulatory other BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB fl oatingratio fi le limit limit le 183

SECTION THREEONE ????????LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

4 LIABILITY MANAGEMENT POLICY AND LIMITS 4.1 DEBT RATIOS AND LIMITS

FINANCIAL RATIOS Net debt as a percentage of total income 161% 212% 235% 254% 273% 281% 270% 254% 229% 197% 163%

Net interest as a percentage of total income 11% 12% 13% 14% 16% 17% 17% 17% 15% 14% 12%

Net interest as a percentage of rates (including water) 18% 20% 22% 24% 25% 26% 25% 24% 21% 19% 16%

The Ratios are increasing in the interim years of the draft LTCCP as a result of the intensive investment in infrastructure required in the growth areas of the city. The recovery of developer contributions to repay debt is staggered over a 20 year time frame. The ratios are used as an annual guide to the management of debt. There is some uncertainty as to the precise timing of the expenditure patterns requiring external ﬁ nancing and therefore the ratios maybe in excess of the peak debt level reached in any given year.

Income is deﬁ ned as earnings from rates, government grants and subsidies, user charges, interest and other revenue.

‘Rates’ exclude regional levies but include general and water rates.

Debt will be repaid as it falls due in accordance with the applicable loan agreement. Subject to the debt limits, a loan may be rolled over or re-negotiated as and when appropriate. Council will set the amount of debt that will be repaid through the Annual Plan, and Long Term Council Community Plan.

4.2 SECURITY The Council’s borrowings and interest-rate risk management instruments will generally be secured by way of a charge over the Council’s Debenture Trust Deed. However, if it is considered advantageous, the Council’s borrowings and other ﬁ nancial arrangements may be on an unsecured basis, or secured by way of a charge over

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT physical assets. ????????

Physical assets will be charged only where: • There is a direct relationship between the debt and the purchase or construction of the asset, which it funds (e.g. an operating lease, or project ﬁ nance). • The Council considers a charge over physical assets to be appropriate. SECTION THREE SECTION ONE • The Director: Finance ensures that the required register of charges and any associated documents are provided, ﬁ led and kept in accordance with the provisions of the Local Government Act 2002 and any other relevant legislation.

4.3 DEBT REPAYMENT The Council will manage debt on a netting basis at all times. Exemptions may apply to some funds vested to the Council for speciﬁ c purposes as dictated by legislation.

184 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B The 5 RISK de RECOGNITION/IDENTIFICATION/MANAGEMENT Interest rate risk management Forward rate agreements (“FRA’s”) on: (“FRA’s”) agreements rate Forward term bank deposits Short management risk rate Interest Investments overdraft Bank borrowing and management Cash Interest will be allocated to internally borrowed funds on a basis of the investment rate that such funds would have would funds such that rate investment ofthe abasis on funds borrowed tointernally allocated be will Interest the Council will be as detailed below. detailed as be will Council the 5.1 INTEREST RATE RISK INTEREST 5.1 in areduction and/or ofdebt reduction tothe applied be will surpluses operating and sales asset all from funds The achieved had they been invested independently for the term and period that the funds were used internally. internally. used were funds the that period and term the for independently invested been they had achieved Dealing in interest rate products must be limited to limited be must products rate interest in Dealing Instruments Financial 5.1.2 Approved borrowing requirements, unless the Council speci Council the unless requirements, borrowing Current approved interest rate instruments are as follows: as are instruments rate interest approved Current signi has Council the Given materially rates) will interest market in movements (due toadverse costs funding that risk the is risk rate Interest 5.1.1 Recognition Risk fi management of underlying interest rate exposures. rate interest ofunderlying management active the through achieved tobe are objectives Both parameters. risk acceptable within Council the for costs through movements rate tointerest uncertainty toreduce is management risk rate ofinterest objective primary the Accordingly, $500,000). = over 12 ofdebt months million (a $50 on 1% movements movement rate rate tointerest interest exposure large adversely impact cost control, capital investment decisions/returns/and feasibilities. decisions/returns/and investment capital control, cost impact adversely to as so projections, cost interest Plan Community Term Long the Council and Plans Annual adopted exceed nition and recognition of interest rate, liquidity, funding, counterparty credit, market, operational and legal risk of risk legal and operational market, credit, counterparty funding, liquidity, rate, ofinterest recognition and nition AEOYINSTRUMENT CATEGORY fi xing of funding costs. However, a secondary objective is to minimise the net funding funding net the tominimise is objective However, asecondary costs. offunding xing fi cant debt, and is likely to increase debt substantially over the next ten years, it has a has it years, ten next over the substantially debt toincrease likely is and debt, cant - Government bonds - Government bills - Bank paper notes/Commercial Promissory bonds Corporate (SOE) bonds Enterprise Owned State or stock Authority Local bills Treasury Bank certi Bank bills issuance Bond facilities market money Uncommitted facilities) (term facilities bill accepted bank and advance cash Committed fi cates of deposit (CD’s) ofdeposit cates fi cally directs that the funds will be put to another use. use. toanother put be will funds the that directs cally SECTION THREE SECTION fi nancial instruments approved by the Council. by the approved instruments nancial LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB 185

SECTION THREEONE ????????LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

CATEGORY INSTRUMENT Interest rate risk management Interest rate swaps including: (CONTINUED) - Forward start swaps (start date <24 months, or for start dates >24 months only if the start date is matched against the maturity date of an existing swap) - Amortising swaps (whereby notional principal amount reduces) - Extendable swaps (where the counterparty has the option to extend the maturity date of the swap on an agreed basis. Interest rate options on: - Bank bills (purchased caps and one for one collars) - Government bonds Interest rate swaptions (purchased only) Commodity Risk Commodity Index Options

Any other ﬁ nancial instrument must be speciﬁ cally approved by the Council on a case-by-case basis and only be applied to the one singular transaction being approved.

5.1.3 Interest Rate Risk Control Limits

Debt/Borrowings The Council’s debt/borrowings should be managed within the following ﬁ xed/ﬂ oating interest rate risk control guidelines:

MASTER FIXED/FLOATING RISK CONTROL LIMIT MINIMUM FIXED RATE MAXIMUM FIXED RATE 55% 95%

“Fixed Rate” is deﬁ ned as an interest rate repricing date beyond 12 months forward on a continuous rolling basis.

“Floating Rate” is deﬁ ned as an interest rate repricing within 12 months.

The percentages are calculated on the rolling 12 month projected net debt level calculated by management (signed off by the Director: Finance). Net debt is the amount of total debt net of liquid ﬁ nancial assets/investments and development properties purchased for the purpose of providing the Council with a positive return on investment. This allows for pre-hedging in advance of projected physical drawdowns of new debt. When approved forecasts are changed, the amount of ﬁ xed rate cover in place may have to be adjusted to comply with the policy minimums and maximums. From time to time the rolling 12 DRFAT LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT DRFAT

???????? month projected net level maybe amended so that hedging activities can be undertaken for identiﬁ ed capital works that will occur beyond the rolling 12 months horizon. If this approach is undertaken, it should be implemented on a forward start basis, aligning the start date of the ﬁ nancial instrument to the anticipated timing of the actual capital expenditure. An over hedged position may result in the Council effectively paying a higher weighted average interest rate.

The ﬁ xed rate amount at any point in time should be managed within the following maturity band guidelines: SECTION THREE SECTION ONE FIXED RATE MATURITY PROFILE LIMIT PERIOD MINIMUM COVER MAXIMUM COVER 1 to 3 years 10% 60% 3 to 5 years 10% 70% 5 years plus 10% 90%

186 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B Special Funds/Other Investments Funds/Other Special mentioned above ofthe outside Therefore, have a will Council the future, foreseeable the For Liquid Investments • projections. cash future meets that toaterm restricted be must investments any liquid exceptions, situation. cash asurplus in tobe requirement have any not would it Accordingly, lines. funding ﬂ use will and position debt/borrowing net permanent not must time atany one FRA’s outstanding • over any spread may be debt rate Floating • • Interest rate options with a maturity date beyond beyond date amaturity with options rate Interest • 12 within mature swaptions borrower Purchased • outright. sold be not should options rate Interest • exible short term working capital money market market money capital working term short exible - Liquid assets will not be required to be tobe required be not will assets Liquid - Funds Special 75% total exceed ofthe of12 term months. amaximum for be may advances Bank to12 out months. maturity of the of the part as counted be cannot rate, interest Bill Bank 90-day current the above 2.00% than higher (exercise rate) rate have astrike that 12 months, months. swap. ofthe extendability the tofacilitate order in counterparty approved toan option rate interest an sell does Council the where arrangement swap extendable an into may enter However,money”. Council the “in-the- rate have not astrike must structure collar ofthe leg option sold The simultaneously. closed be must both by itself, out closed be cannot collar ofthe side one option, ofthe term the During option. purchased simultaneously tothe maturity and by amount precisely matched is option sold the whereby allowable are However, structures 1:1 option collar date. same tothe amount opposite and equal the for aFRA on option an or, date by purchasing alternatively, maturity same tothe FRA opposite and equal an entering by date maturity before out” “closed may be

line of credit. Such a facility will be for an an for be will afacility Such ofcredit. line standby by acommitted covered be will speci tofuture commitments such instead, funds, special against held fi xed rate cover percentage calculation. percentage cover rate xed fl oating rate debt. FRA’s debt. rate oating fi ed releases ed fl ow SECTION THREE SECTION • Trust Funds • Shares • Investment • Investment Properties LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY - Accounting entries representing the annual annual the representing entries Accounting - - Represent funds administered by the Council Council by the administered funds Represent - - Council will consider selling its non-strategic non-strategic its selling consider will Council - that abasis on purchased be only will Shares - any organisation in ofshares acquisition The - - Proceeds from share sales will go to repay torepay go will sales share from Proceeds - - All buildings and and buildings All - - - -

using an average monthly investment rate. investment monthly average an using made be will allocations accrual interest annually. reviewed be will and, over period a12 month commitments release maximum tothe equivalent amount intended. are they which for purpose express the for used tobe are funds Such party. by athird created been has that arrangement, trust similar Trust or Deed, ofaBequest terms in owning the asset is lower than the the than lower is asset the owning from ofreturn rate the where holdings share reasons. business sound other for or community City’s of Waitakere interests future and current the promotes it committee. delegated its or Council by the approved be must directs that the funds be put to another use. toanother put be funds the that directs speci Council the unless debt, existing debt. total Council’s the with associated risks the and asset the to own continuing with associated risks the account into take will Council the considerations its In debt. torepay ofsale proceeds the bene strategically strategically will acquisition such where future the in purchased be only will properties Investment variations. price potential for area the in trends pricing monitor personnel property skilled and damage material for insured are properties fi appropriate the within incurred costs offset to used be will Council by the held properties investment for received funds rental Any use. toanother put be funds the that directs speci Council the unless debt, existing torepay used be will properties investment of sale the from received funds Any nancial division of the property activity. property ofthe division nancial fi BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB t to ratepayers of selling and of using ofusing and ofselling t toratepayers fi t the Council’s core activities. core Council’s t the fi on investmentttings fi nancial nancial fi fi cally cally 187

SECTION THREEONE ????????DRFAT LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

• Foreign Currency • Contingent Liabilities include but are not limited - The Council shall not borrow or enter into to the following: incidental arrangements, within or outside - Redundancies New Zealand, in currency other than New -Guarantees Zealand currency as required under the -Rating apportionments Local Government Act 2002, section 113. • Loans, Advances and Guarantees Disaster Recovery - The Council does not normally grant • Council recognises that events of an unforseen loans, advances or guarantees to external or unforecasted nature may result in fi nancial organisations and will only do so in loss to the Council. Such events are provided for exceptional circumstances, or where it will through undrawn committed bank facilities. promote the current and future interests of Waitakere City’s community, or for other Landfi ll Aftercare sound business reasons. • Council recognises a liability to provide for the - Other policies such as the Community estimated future costs of aftercare for sites Assistance Policy cover the procedures it is responsible for. The liability is calculated and guidelines encompassing loans and based on a prioritised 30 year aftercare guarantees to community groups. programme and incorporates estimated future costs associated with the resource consents - All guarantees will only be given after the process, reparation works, and monitoring costs. receipt and the satisfactory analysis of the Requirements of the Resource Management requesting entities business case, and other Act 1991 are also taken into consideration when supporting information that maybe required, calculating the liability. and any legal or other professional advice required during the analysis and evaluation • The recognised liability is measured on the of the business case. discounted (present) value of the future cash fl ows expected to be incurred in accordance with - The granting of loans, advances, or the Councils risk management plan. guarantees to any organisation must be

approved by the Council or its delegated committee. 5.2 LIQUIDITY RISK/FUNDING RISK

Other Liabilities 5.2.1 Risk Recognition Cash fl ow defi cits in various future periods Creditors and Employee Benefi ts based on long term fi nancial forecasts are reliant on the maturity structure of loans and facilities. • Creditors will be paid when due, notwithstanding Liquidity risk management focuses on the ability that all creditor invoices must complete the to borrow at that future time to fund the gaps. agreed authorisation procedures. Funding risk management centres on the ability • Employee Benefi ts will be provided for and to re-fi nance or raise new debt at a future time LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT

???????? recognised as a liability in respect of benefi ts at the same or more favourable pricing (fees earned by employees but not yet paid at balance and borrowing margins) and maturity terms of date. The provision will be calculated and existing facilities. accrued as required by legislation and generally accepted accounting practices. Managing the Council’s funding risks is important as several risk factors can arise to SECTION THREE SECTION ONE Contingent Liabilities cause an adverse movement in borrowing margins, term availability and general fl exibility • Unless the possibility of an outfl ow is remote, including: contingent liabilities must be identifi ed and reported within the Councils fi nancial • Local Government risk is priced to a higher statements. Such liabilities will be valued based fee and margin level. on an accepted basis, and such a valuation will • The Council’s own credit-standing or be provided for within the fi nancial statements. fi nancial strength as a borrower deteriorates

188 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B • The Director: Finance has the discretionary discretionary the has Finance Director: The • and daily comprehensive provides Treasury • credit committed ofthe amount allocated An • leasing as such mechanisms funding Alternative • and loans new all approve must Council The • Limits Control Risk Liquidity/Funding 5.2.2 A key factor of funding risk management is is management risk offunding Akey factor • The maturity pro maturity The • yaspu 0 60% 10% plus 5 years o5yas1%60% 60% 10% 10% 3 to5years 0 to3years • A large individual lender to the Council Council tothe lender individual Alarge • guidelines: following by the controlled be should facilities, committed and loans toall respect in funding tore- authority forecasts. debt term long and 12 forecast), (rolling month monthly with together reporting, management cash weekly requirements. 5.1.3 legislative Section other in and outlined as funds special tocover place in put be will facility offunds. cost effective and value redemption ownership, consideration, into take should evaluation The funding. sheet on-balance traditional with conjunction with evaluated be should facilities. borrowing market conditions. and desired maturity pro maturity desired and increased unnecessarily not is cost borrowing overall the occur, events above any ofthe if that so time in point atone ofrisk concentration the toreduce risk the control and to spread community investment Zealand New • opportunity. earliest atthe Council by the approved and rati tobe is action Such terms. favourable EIDMNMMMAXIMUM MINIMUM PERIOD due to due experiences their own own their experiences Council investment assets. investment Council of “over supply” asubstantial experiences optimally as desired. as portfolio debt their tomanage able dif fi culties resulting in the Council not being being not Council the in resulting culties fi nancial, regulatory or other reasons. nancial, regulatory fi nance existing debt on more more on debt existing nance fi le of the total committed committed total ofthe le fi le compromised due to due compromised le fi analysisnancial in fi nancial/exposure fi ed SECTION THREE SECTION Credit risk will be regularly reviewed by the Council. Council. by the reviewed regularly be will risk Credit (realised oflosses risk the is risk credit Counterparty RISK CREDIT COUNTERPARTY 5.3 Where Council has investments, limits should be be should limits investments, has Council Where on approved be only can limits and Counterparties into with organisations speci organisations with into entered be only would transactions related Treasury into. entered ofinstrument type the on depending differently weighted be event will adefault in Council tothe risk credit The party. a on defaulting acounterparty from arising unrealised) or concentrations of credit exposure. ofcredit concentrations toavoid ofcounterparties anumber amongst spread above. and A- being Moody’s) or Poor’s & (Standard ratings credit term oflong basis the Council. Not withstanding the overall intentions of this ofthis intentions overall the withstanding Not LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY convenience. earliest atthe ofCouncil Committee delegated tothe reported be will aposition Such cost. least atthe portfolio the manage effectively to order in totime time from required maybe limits these outside schedule amaturity policy, fi nancial instrument where the Council is a is Council the where instrument nancial BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB fi cally approved by the by the approved cally 189

SECTION THREEONE ????????LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

The following matrix guide will determine limits.

INTEREST RATE MINIMUM LONG TERM INVESTMENTS RISK MANAGEMENT TOTAL MAXIMUM PER COUNTERPARTY/ISSUER CREDIT RATING – MAXIMUM PER INSTRUMENT COUNTERPARTY ($M) STATED AND POSSIBLE COUNTERPARTY ($M) MAXIMUM PER COUNTERPARTY ($M) NZ GovernmentA-unlimitednoneunlimited State Owned A-5.0none5.0 Enterprises: • Nil approved NZ Registered Bank: A- 15.0 40.0 55.0 Corporate Bonds: A- 5.0* none 5.0 • Nil approved LABT 5.0none5.0 Local Government 5.0none5.0 Finance Corporation Local Government A- (if rated) 5.0** none 5.0 Stock Unrated 5.0** none 5.0

* Subject to a maximum of $20.0m investment in corporate/securitised bonds at any one point in time. ** Subject to a maximum of $30.0m investment in Local Government stock at any one point in time, including Local Government Finance Corporation.

In determining the usage of the above gross limits, the following product weightings will be used: • Investments (eg. Bank Deposits) – Transaction Notional - Weighting 100%. • Interest Rate Risk Management (eg. swaps, FRA’s) – Transaction Notional - Maturity (years) - 4%.

Each transaction should be entered into a reporting spreadsheet and a monthly report prepared to show assessed counterparty actual exposure versus limits.

Credit ratings should be reviewed by the Director: Finance on an ongoing basis and in the event of material credit downgrades, below the minimum long term credit rating, the investment will cease. Future investments assessed against exposure limits. Counterparties exceeding limits should be reported to the Council.

Risk Management To avoid undue concentration of exposures, a range of ﬁ nancial instruments must be used with as wide a range of

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT counterparties as possible. The approval process to allow the use of individual ﬁ nancial instruments must take into account ???????? the liquidity of the market the instrument is traded in and repriced from. SECTION ONE SECTION THREE

190 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B Operational risk is very relevant when dealing with with dealing when relevant very is risk Operational aresult as ofloss risk the is risk Operational RISK OPERATIONAL 5.4 The Council will seek to minimise this risk by risk this tominimise seek will Council The tothe relate risks regulatory and Legal RISK LEGAL 5.5 All treasury products must be recorded and and recorded be must products treasury All Procedures5.4.3 the is ofresponsibilities division and Separation Duties of Segregation 5.4.2 by those executed be only will Transactions Limits and Authorities 5.4.1 Dealing • Operational risk is minimised through the the through minimised is risk Operational • over the executed are instruments treasury Most • the on placed often is Too reliance much • fully be may not instruments Financial • fi controls. and procedures inadequate and (or failures system fraud), error of human adopting policy regarding: de to due rights it’s toenforce unable is Council the event that the In risks. tosuch exposed may be Council the banks, for relevant more are risks legal While legislation. in contained prohibitions of because usually transaction the into to enter power or capacity legal the having not organisation toan due ofatransaction unenforceability nancial instruments given that: given instruments nancial fi cient or inaccurate documentation. inaccurate or cient separate to this policy. policy. tothis separate manual documentation systems atreasury in compiled be should reports and reconciliations, tickets, ofdeal templates including procedures execution/con following immediately done be must reporting and capture ledger. Deal general the into entries over journal checks and controls appropriate with system, appropriate an on diarised Finance. Director: ofthe responsibility policy. ofthis 3.9 section in table authorities ofdelegated schedule the in detailed are limits These Council. by the approved limits within and persons adoption of all requirements of this policy ofthis requirements ofall adoption phone. people. two or ofone skills specialised understood. fi rmation. Details of Details rmation. SECTION THREE SECTION 6 MEASURING TREASURY In order to determine the success of the Council’s Council’s ofthe success the todetermine order In PERFORMANCE prescribed. have been measures performance and benchmarks following the function, management treasury The actual funding cost for the Council (taking into into (taking Council the for cost funding actual The RATE INTEREST AND DEBT OF MANAGEMENT 6.2 including met, tobe are deadlines treasury All with. complied be must limits treasury All PERFORMANCE OPERATIONAL 6.1 RISK The Council must not enter into any transactions any transactions into enter not must Council The Financial5.5.2 Covenants and Other Obligations into entered be only can instruments Financial 5.5.1 Agreements any non- for advice of expert use The • con party ofthird matching The • settlement and dealing ofstanding use The • consideration costs of entering into interest rate risk risk rate interest into ofentering costs consideration deadlines. reporting Council must maintain a register of charges ofcharges aregister maintain must Council and obligations all with comply must Council The LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY where it would cause a breach of abreach cause would it where Master Agreements for ISDA All Council. the with Agreement Master ISDA executed an have place in that banks with transactions standardised con deal standard persons, authorised accounts, bank (including instructions documentation will be held in Treasury. in held be will documentation Such Council. by the seal under signed be must ofanomalies. follow-up immediate the counterparties. to sent tobe transactions) disputed for arrangements. contractual existing under covenants relating to any commitment which is speci is which toany commitment relating requirements. legislative and facilities funding existing under requirements reporting relating to any asset. toany asset. relating BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB fi nancial instruments instruments nancial fi rmations, contacts contacts rmations, fi rmations and and rmations fi nancial nancial fi cally 191

SECTION THREEONE ????????LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

management transactions) must be below the budgeted interest cost. When budgeting forecast interest costs, the actual physical position of existing loans and swaps/swaptions/FRA’s must be incorporated.

Since the Directorate is granted discretion by the Council to manage debt and interest rate risk within speciﬁ ed limits, the actual funding rate achieved must be compared against an appropriate external benchmark interest rate that assumes a risk neutral position within existing policy. Note: in this respect, a risk neutral position is one that is always precisely at the mid-point of the minimum and maximum percentage limits speciﬁ ed within the policy.

Given current fi xed/fl oating risk control limits and fi xed rate maturity profi le limits as defi ned in Section 5.1.3 of this manual, the market benchmark (composite) indicator rate will be calculated as follows:

COMPOSITE BENCHMARK INDICATOR RATE WEIGHTING RATE 20% Average 90-day bank bill bid-rate for the reporting month 16% 5 year interest rate swap bid-rate, end of reporting month 16% 5 year interest rate swap bid-rate, 1 year ago 16% 5 year interest rate swap bid-rate, 2 years ago 16% 5 year interest rate swap bid-rate, 3 years ago 16% 5 year interest rate swap bid-rate, 4 years ago 100% The micro-benchmark rate used to measure performance is the aggregate of the composite benchmark indicator rate calculated above and the margin that applies to existing funding facilities.

Accordingly, the actual weighted average interest rate for the ﬁ nancial year to date (that incorporates all issuance margins and derivative settlements) must be compared against the micro-benchmark rate on a monthly basis, with historical comparison reported graphically over the previous 12 months to the Chief Executive Ofﬁ cer.

6.3 ADEQUACY OF LIABILITY MANAGEMENT AND INVESTMENT POLICY As part of the annual review of the Liability Management and Investment Policy, it is necessary to compare the actual interest rates achieved for the ﬁ nancial year against an appropriate benchmark interest rate, based on the assumption that the Council had no treasury function, no Liability Management and Investment Policy and did not seek to manage the risks at all.

For the purposes of this performance measure, a “no policy, no management” approach is one where: • 50% of total is fi xed for 12 months on the fi rst day of the fi nancial year. • 50% of total debt is protected from an increase in interest rates by the purchase of a 12-month interest rate option

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT (strike rate at market rates) on the fi rst day of the fi nancial year. ???????? Accordingly, the underlying benchmark rate to apply is calculated as follows: UNDERLYING BENCHMARK RATE WEIGHTING RATE 50% 1 year swap bid-rate on the fi rst day of the fi nancial year (quarterly resets). SECTION THREE SECTION ONE 50% Effective annual rate based on a 1-year at-the-money interest rate option (a strip of 90-day FRA options with quarterly expiry dates) on the fi rst day of the fi nancial year. Note: The annual rate is based on the average rate for each quarter calculated by adding the premium to: • the 90-day bank bill bid-rate at the end of the quarter if 90-day rates fell during the quarter. • the strike (cap) rate if 90-day rates increased during the quarter.

192 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 7 CASH MANAGEMENT The Director: Finance has the responsibility to carry out out tocarry responsibility the has Finance Director: The

• Provide reports detailing actual cash cash actual detailing reports Provide • cash future Match • advance ofcash usage Council’s the Monitor • by charges bank/Government and fees Minimise • • Ensuring ef as functions borrowing term short Undertake • Director: Finance to any other toany other Finance Director: by the delegated is responsibility This activities. management debt term short and cash day-to-day the tomeasure used rate macro-benchmark The • Maximise the return from available funds by funds available from return the Maximise • to units operating Council’s the Co-ordinate • the all download electronically basis, adaily On • of delegated The • Finance. Director: by the appropriate deemed as facilities. structures. account/facility bank optimising spreadsheet modelling. using forecasting toaccurate improvement costs. overdraft minimising required, approved parameters. within position cash the ofmanaging objective the minimum period of period minimum (i.e.over a basis term along on benchmark ‘macro’ above ofthe comparison the toview important Of Executive Chief tothe reported and review annual ofthe part as rate macro-benchmark entire the for rate interest weighted-average actual the respect, this In facilities. funding existing to applies that margin the and rate benchmark above ofthe aggregate the is Policy Investment and Management Liability ofthe adequacy the required, unless there is a is there unless required, than earlier no but terms, payment vendor’s the signi ensuring budgeted. those with compared month the in cash daily determine information. account bank Council months forward). 12 (estimated monthly forward), weeks (four weekly cash doing so. doing fl ow projections on a daily (one week forward), forward), (one week adaily on ow projections fi nancial year is to be compared against the the against compared tobe is year nancial fi cient cash management through through management cash cient fi cant payments are made within within made are payments cant fi cer will calculate and maintain maintain and calculate will cer fl ows to smooth overall timeline. overall tosmooth ows fi ve years). ve fl ows and out and ows fi fi nancial bene nancial nancial of nancial fl ows with with ows fl fi ows during during ows cer or of or cer fi cer. is It fi t from from t fi cers SECTION THREE SECTION REPORTING–PERFORMANCE 8 MEASUREMENT 8.1 TREASURY REPORTING TREASURY 8.1 The Council uses uses Council The FINANCIAL OF TREATMENT ACCOUNTING 8.2 INSTRUMENTS fl to exposure its ofreducing purpose primary the The monthly Finance and Operational Operational and Finance monthly The 8.1.1 Reporting in interestuctuations rates. LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY • Risk • Risk Management: • Material • Material Transactions: • Interest Rate Pro Rate Interest • • Market • Market Commentary: • Forecasted Borrowing Pro Borrowing Forecasted • • Cash/Debt • Cash/Debt position: objectives: information/reporting major following ofthe coverage achieve must package reporting Committee Performance requirements, funding maturity pro maturity funding requirements, borrowing offuture inclusive be will risk rate Interest risk. funding and risk repricing rate requirements. borrowing to future mix ofthat recognition with mix, rate interest only recognise existing borrowings. existing recognise only are new borrowings, re borrowings, new are transactions Such report. by the covered signi Councils ofthe representation direction that the the that direction ofthe look out term tomedium short and of existing speci and derivatives fi term long and forecasts, current encompass facilities. those against drawn amounts and facilities funding committed of Asummary rates. interest investment fi budgeted and forecasted. Such pro Such forecasted. and budgeted both expenditure funded loan of future take. take. sources, sources, all from raised debt including of values nancial strategies. nancial and investments individual leases, nancial fi BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB cant transactions over the month month over the transactions cant fi xed/ fi fi nancial instruments risk for for risk instruments nancial nancial market conditions, conditions, market nancial fl oating rate interest mixes, mixes, interest rate oating fi nancial market is likely to likely is market nancial fi le: A pro fi Including a summary asummary Including c investments. c A brief commentary commentary Abrief A current A current fi nanced borrowings, borrowings, nanced Disclosure of Disclosure fi le of both interest interest ofboth le fi le: fi xed/ A pro fi le will le fi les will will les fl oating fi le 193

SECTION THREEONE ????????LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

The accounting treatment for such ﬁ nancial instruments will comply with Generally Accepted ATTACHMENT I - DEFINITION OF Accounting practices (GAAP). FINANCIAL INSTRUMENTS

8.3 VALUATION OF TREASURY INSTRUMENTS All treasury fi nancial instruments must be 1 FORWARD RATE revalued (marked-to-market) every three months for risk management purposes. This includes AGREEMENTS (FRAS) those instruments that are used only for hedging purposes. 1.1 DEFINITION A forward rate agreement (“FRA”) is a synthetic Note: For accounting purposes, fi nancial contract between two parties in which one party instruments used for hedging will not be marked-to- agrees to pay to the other an agreed interest rate market but will merely be highlighted in the notes to on a notional principal amount, for a fi xed period of the accounts. time, commencing on a specifi c date in the future (settlement date). Underlying rates to be used to value treasury instruments are as follows: A borrowers FRA provides protection against rising • Offi cial daily settlement prices for established interest rates whereas an investor FRA provides markets. protection against falling rates.

• Ofﬁ cial daily market rates for short term treasury FRAs are available from any speciﬁ c date but instruments (eg. FRA settlement rates calculated contract periods are generally quoted for 90-day by Reuters from price maker quotations as periods. FRAs are usually referred to by the number displayed on the BKBM page). of calendar months from the current month to the • Relevant market mid-rates provided by the settlement date against the number of months from company’s bankers at the end of the business the current month to the maturity date. For example, day (5.00pm) for other over-the-counter treasury a 3 month borrowing rate in 4 months time would be instruments. quoted as a 4 against 7 FRA (4 x 7 FRA). • For markets that are illiquid, or where market prices are not readily available, rates calculated FRAs are valued (and settled) on the relevant FRA in accordance with procedures approved by the settlement rates shown on the Reuters BKBM page Director: Finance. each morning at 10:45am. FRA settlement rates are calculated from the 7 Bank Bill price maker bid/offer quotations provided to Reuters at 10:30 am. The 9 POLICY REVIEW settlement rate is the average mid-rate of the quotes after excluding the highest and lowest quotes. This Liability Management and Investment Policy is to be formally reviewed on an annual basis but sooner if 1.2 CHARACTERISTICS circumstances warrant. LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT

???????? • FRAs are generally used to hedge short term The Director: Finance has the responsibility to prepare exposures. a review report that is presented to the Financial and • Because the transaction is synthetic, no Operational Performance Committee. The report will movement of principal amounts is necessary. include: • On settlement date, only the net settlement • Recommendations as to changes, deletions and amount representing proﬁ t or loss changes SECTION ONE SECTION THREE additions to the policy. hands, thereby requiring minimal utilisation of • Any amendment to this policy requires the adoption credit lines. of the special consultative procedures as outlined in • A FRA can be closed out at any time by taking the Local Government Act 2002. an opposite FRA with the same settlement date. • FRAs attract no deposit requirements, margin

194 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B INTEREST RATESWAPS 2 The Council receives $1,000 for the FRA settlement settlement FRA the $1,000 for receives Council The by 40 have risen rates 90-day month’s time, one In by amount the tohedge decides Council The of$2 funds additional toborrow wishes Council The EXAMPLE 1.4 applications: following the for suited ideally are They aview has Council the where used be should FRAs USAGE RECOMMENDED 1.3 An interest rate swap is an agreement between between agreement an is swap rate interest An 2.1 DEFINITION borrow at the rate they budgeted for. budgeted they rate atthe borrow Council i.e.the 5.20% is rate borrowing effective The of5.40%. atarate $2million the borrows and 5.40%. is page BKBM per rate settlement FRA 3month The 5.40%. now rate the with points basis 5.00%. are rates 90-day current Note: 5.20%. is rate FRA agreed hence). The months offour date maturity a and hence month ofone date asettlement (with $2million for FRA a1x4borrower purchasing week. this announced tobe statement Bank ofaReserve rates interest on effect the about concerned is It 90-days. for amonth’s time in million is it and required is funding additional Where • toarollover up coming exists uncertainty Where • rates. borrowing future affect may adversely that trends rate interest on pay interest ata pay interest will party one Generally, amount. principal notional a on based oftime over aperiod intervals regular at payments interest toexchange parties two • FRAs are off-balance sheet transactions with with sheet transactions are off-balance FRAs • toindividual according customised be can FRAs • neutralise the effect of interest rate increases. rate ofinterest effect the neutralise and today arate in” “lock will FRA a borrower buying rise, will rates interest that anticipated determined of period time. over apre- arate in” “lock effectively will FRA aborrower buying borrowings, term for date over the term of the FRA. ofthe term over the variation rate interest tothe limited risk credit counterparty. and date settlement maturity ofamount, terms in requirements fees. brokerage or calls fi xed rate while the other will pay will other the while rate xed SECTION THREE SECTION x% margin + Bills Bank 3month Pays The operation of a swap is determined by the by the determined is ofaswap operation The The following diagram illustrates payment payment illustrates diagram following The contract, paper aseparate is agreement swap The The variations of an interest rate swap include the the include swap rate interest ofan variations The payments swap between intervals the Like FRAs, underlying swap con swap underlying Illustration Swap underlying an has who borrower ofacorporate ofview point the (from swap rate interest an for period swap each the bank and vice-versa. and bank the with be always will risk credit Council’s The banks. be will swaps toall counterparties the Council, the of purposes the For rates. interest rising against a from exposures rate interest underlying its toswap borrower acorporate allows suggests, name swap, its as A“payers” unchanged. remains debt physical the lenders). bank its from rate Bill Bank 90-day Council’s ofthe settlement the as same the day (much the on page BKBM Reuters the a speci be normally will and period swap ofeach beginning The 90-days. be generally will payments between However, period the the as same the be not need period • Forward start swaps: swaps: start Forward • following: rate as appropriate. the periods, swap any speci for be can interest ata interest THE COUNCIL LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY rates interest in ofarise anticipation in drawdowns debt future tohedge used Often date. start LENDER fi ed margin over the 3 month rate shown on on shown rate 3month over the margin ed Loan fl oating exposure and who wishes to wishes who and exposure oating fl BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB oating rate. oating Receives 3 month Bank Bills Bank 3month Receives Pays speci Pays Notional Amount= X Amount= Notional Maturity Period= Y on quarterly basis quarterly on fl fi oating to oating xed interest rate and the the and rate interest xed fi fi ed period (and the (and the period ed rmation. This will de will This rmation. fi ed A swap that has a future afuture has that Aswap fi fl xed rates rates xed oating rate is set at the at the set is rate oating fi xed basis to protect toprotect basis xed fi xed period). period). xed fl SWAP BANK oating fl ows for for ows fi ne the the ne fl oating fi x it): x 195

SECTION THREEONE ????????LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

• Amortising swaps: A swap where the notional 2.3 RECOMMENDED USAGE principal reduces on a straight-line basis over Payer swaps should be used where the Council has the life of the swap. Such swaps are useful a view on interest rate trends that may adversely in hedging the funding of depreciating assets affect future borrowing rates. especially when the loans require regular principal repayments during their life. They are ideally suited for the following applications: • Arrears reset swap: A swap where the fl oating • Where uncertainty exists on medium to long rate is set a couple of days prior to payment term interest rates and the impact this will rather than at the beginning of the interest have on term loans, entering into a swap will period. effectively “lock in” a rate for the entire term of the swap. • Basis swap: A fl oating/fl oating swap where both parties exchange interest payments based • Where additional core funding is required and it on different fl oating rate indexes i.e. the Council is anticipated that interest rates will rise, entering could pay interest on a monthly basis against into a payers swap will “lock in” a rate today and receiving interest on a quarterly basis. neutralise the effect of interest rate increases. • Zero coupon swap: A swap where the fi xed • When it is widely forecast that 90-day Bank Bill rates will rise and average above current 1-5 payer only makes one lump sum payment year fi xed swap rates over the term. on maturity rather than regular payments throughout the life of the swap (the fl oating payer continues to pay as normal). 2.4 EXAMPLE The Council has a new borrowing of $5 million under a revolving credit facility that is rolled every 90- 2.2 CHARACTERISTICS days. There is widespread concern that rates will be • Swaps will typically cover a period in excess considerably higher in the next six months and that of one year. Maturities of less than one year this will most likely continue for the following 12 to 18 generally use FRAs. months. • Because the transaction is synthetic, no exchange of principal amounts is necessary. The Council decides to hedge by entering into a 3 year, $5 million payers swap (with settlement dates • On each settlement date, only the net settlement coinciding with rollover dates for the underlying amount representing the interest differential borrowings). The 3 year swap rate is 7.20%. changes hands. • The Council pays fi xed interest at 7.20%. • Swap agreements may allow early termination. This would normally require settlement of the net • The Council receives fl oating interest at 5.50% present value of all future cash fl ows based on (assuming current 90-day Bank Bill rate) for the the current market settlement rates. fi rst settlement date (in 90-days). • The Council receives fl oating interest at the 90- • A swap can be closed out at any time by taking day Bank Bill rates for each subsequent interest an opposite swap position with the same period (this rate being set on the fi rst day of each settlement periods (referred to as a reverse interest period). swap) or by assigning the obligations under the

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT swap to a different counterparty where the swap ???????? In three months time (on the fi rst rollover date), agreement permits (which would require a lump 90-day Bank Bill rates have risen by 100 basis sum payment of the value of the swap to the points (assumption) with the 90-day Bank Bill rate appropriate counterparty). now 6.50%. The swap fl oating rate cash fl ow is • Swaps attract no deposit requirements, margin accordingly set at 6.50% for the second roll period. calls or brokerage fees. Interest rate calculations for the fi rst roll period SECTION ONE SECTION THREE • Swaps can be customised according to individual requirements i.e. the Council can • The Council pays $5 million x 7.20% x 90/365 = perfectly tailor interest payment dates to match $88,767.12 those of underlying loan advances. • The Council receives $5 million x 6.50% x • Swaps are off-balance sheet transactions. 90/365 = $80,136.99 • Swaps are governed by comprehensive • The Council pays net difference = $8,630.13 agreements called ISDA documents.

196 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B INTERESTRATEOPTIONS 3 Swaptions are an option to enter into apre- into toenter option an are Swaptions Swaptions Floors and Caps A “ obligated) not is (but right the has (holder) buyer The against protection provides option rate interest An 3.1 DEFINITION =7.45% offunds cost annualised Effective 8,630.13 = payments ofswap difference net Plus x margin x0.25% 5,000,000 Plus (6.50%) x Bills xBank 5,000,000 90-day lenders its paying meanwhile is Council The determined swap contract. Options are said to said are Options contract. swap determined (consistent with other option products). price exercise or price strike rate, strike the to as fl The borrowings. for rate funding amaximum to set wanted who borrower by acorporate used be might on rate minimum fl A rates. interest rising against protection provides “cap” rate interest an whereas rates interest falling potential. loss unlimited pro limited has hand pro unlimited while potential loss limited has option ofan buyer pro maximum the conversely and incur will buyer the that loss maximum the is premium the unfavourable, are rates where worthless expire option an let can buyer the As option. ofthe execution the on seller tothe apremium pays buyer The exercised. is option the where buyer tothe topay cash obligated is but rights no has (grantor) seller the whereas favourable be rates should option the to exercise allowing some bene still while movements rate interest future adverse 3,082.19 $80,136.99 (7.20% = 90/365 = 90/365 = offunds cost full the therefore, 0.25% plus Bills Bank oor and cap levels will sometimes be referred referred be sometimes will levels cap and oor a toestablish by investor an used be might oor fl fi oor” provides the buyer protection against against protection buyer the provides oor” t the seller will receive. In other words, the the words, other In receive. will seller t the fi xed rate +0.25% loan margin) loan +0.25% rate xed fi t potential. The seller on the other other the on seller The t potential. fl oating rate deposits and a cap acap and deposits rate oating fi fi t where rates move favourably. move rates t where t potential while having having while t potential $ 91,849.31 SECTION THREE SECTION One of the major bene major ofthe One will tomaturity time along has that option an Clearly in variables following the uses model This generally is (premium) option ofan cost The maturity on exercised are that options rate Interest cost. The most common combination is referred referred is combination common most The cost. attailored strategies management risk effective very requirements. individual tosuit chosen tobe able rate strike the more much are However, options products. forward-based than value and to price complicated more considerably are options evident, be will As option. the expensive more the is, market underlying the volatile rate). more Bill Finally, the Bank underlying the and rate strike the between difference by the (as measured money” ofthe “out is that one than expensive more be will money” the “in is that option an Also, effect. decay time the as described often is cost ofthe portion This maturity. to term ashort has that one than expensive more be market. Bill Bank underlying ofthe Volatility • • Strike rate. Bank forward and (current Bill Bank Underlying • option. ofthe tomaturity Time • price: option the determining model. &Scholes Black the is used widely most the exist, models pricing option many While distributions. probability lognormal on based models mathematical technical using calculated obtained. rate the offset partially will exercised) (if option ofthe However, settlement rates. the market atcurrent funds invest or toborrow buyer the for necessary be still will it delivered, physically not is instrument underlying buyer. the to the As payable amount settlement the with cash-settled are money”. “atthe tobe said are options same, the are rate Bill Bank corresponding the and rate strike the Where rate. Bill Bank corresponding the than option ofthe buyer to the advantageous less is rate strike the where money” ofthe “out tobe said are options Conversely, rate. Bill Bank corresponding the than option of the buyer tothe advantageous more is rate strike the where time in point atagiven money” the “in be of combinations pricing, the affecting variables many fl LIABILITY MANAGEMENT AND INVESTMENT POLICY POLICY INVESTMENT AND MANAGEMENT LIABILITY oors and caps at different strike rates can allow allow can rates strike atdifferent caps and oors Bill rates). BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB fi ts of options is that with so so with that is ofoptions ts fl exiblewith 197

SECTION THREEONE ????????LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT AND INVESTMENT POLICY CONTINUED

to as an interest rate collar, which in the case of a however, the view may be that rates will not rise. corporate borrower involves simultaneously buying a Usually swaps represent the most cost effective cap and selling a fl oor. The premium received from form of actual hedge in the event of rising interest selling the fl oor partially offsets the cost of buying rates due to the relatively high cost of interest rate the cap. In return, profi ts are fi xed at a level. The options. effect of this strategy is that the corporate borrower can minimise its funding rates at very low cost. Options are best purchased when: i) they are not intended to be exercised; 3.2 CHARACTERISTICS ii) volatility in the market is low; or • Options are used to insure against adverse iii) the underlying debt being hedged is uncertain. market movements while still providing the ability to benefi t from favourable movements. 3.4 EXAMPLE • The option premium is payable up-front by The Council has purchased a swaption i.e. an option the buyer and represents the maximum loss to enter into a swap with pre-determined pricing of payable. Sometimes this premium can be 7.20% and a maturity of 3 years. The option expires deferred until the option expiry date. in July of 2000. The notional is $5 million. • Because the transaction is synthetic, no movement of principal amounts is necessary. Should the 3 year swap rate be higher than 7.20% • On maturity, if the option is “in the money” it can next July, the Council will exercise the swaption be exercised with the buyer receiving the profi t. and enter into a swap with the seller of the swaption If the option is either “out of the money” or “at the where the Council will exchange the following cash money” the option will expire worthless with no fl ows each quarter for 3 years. settlement required. • The Council pays 5,000,000 x 7.20% x 90/365 = • Options can be closed-out at any time by taking $88,767.12. an opposite option with the same settlement • The Council receives 5,000,000 x (90-day Bank date and strike rate. Bills) x 90/365. • Combinations of options can provide sophisticated risk management at minimal cost. The net difference is paid by the Council if the 90- day Bank Bill rate is below 7.20% and paid by the • Options attract no deposit requirements, margin swap counterparty if the 90-day Bank Bill rate is calls or brokerage fees. above 7.2%. • Options are able to be customised according to individual requirements in terms of amount, strike rate, maturity settlement date and counterparty. • It is considered dangerous and imprudent for corporate borrowers to sell options for long terms in isolation. Such a transaction produces

LIABILITY MANAGEMENT AND INVESTMENT POLICY LIABILITY MANAGEMENT unknown risk and unlimited potential loss. The ???????? premium received may only be a minor offset to the end loss if market rates shift signiﬁ cantly.

3.3 RECOMMENDED USAGE An interest rate cap will provide a worst case interest SECTION ONE

SECTION THREE rate in the event of short term interest rates (90-day Bank Bills) rising in the future.

Options are at their most economic value when they are needed, and are therefore best used when ﬁ nancial budgeting requires certainty or “a worst case” insurance against a rise in interest rate

198 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B • “signi that; noted tobe needs It Council. by the owned assets strategic the • determining for procedures and criteria any thresholds, • and proposals which todetermining approach general its • plans: community council term long and plans annual its in toshow required is Council the Act, the Under legislation). other under requirements speci or Procedure Consultative Special the follow must it where (except cases in decision each for consult will it how the has still Council The processes. making decision its for follow should it processes consultation what on guidance Council the gives practice, The Signi of a decision. signi the determine will they how out sets that Policy tohave aSigni required are Councils process. making decision- and consultation rigorous amore follow must ‘signi tobe considered is adecision If Act). (the 2002 Act Government Local ofthe 90 Section with accordance in prepared is policy This INTRODUCTION ONSIGNIFICANCE POLICY the greater the degree ofsigni degree the greater the identi options ofthe impact in variation The • if the issue, decision or proposal is not ‘signi not is proposal or decision issue, the if • be followed. have to not does procedure consultative special the that is certainty only The community. the with consultation no be will there that mean not does and unimportant is which proposals and decisions are signi are decisions and proposals which aredecisions signi de high degree of signi (that) a has matter other or decision proposal, any “issue, Not includedintheLTCCP fi ned in Section 5 of the Act) it does not mean that it it that mean not does Act) it 5ofthe Section in ned fi fi cant” is de is cant” cance Policy, along with the Council’s consultation consultation Council’s the with Policy, along cance fi ned in Section 5 of the Act as meaning meaning as Act 5ofthe Section in ned fi cant fi cance” cance” fl exibility to determine speci todetermine exibility fi cance. fi cant’ then the Council Council the then cant’ fi ed (including a ‘do nothing’ option) on the community. The greater the variation variation the greater The community. the on option) a‘do nothing’ (including ed fi cant fi cant’ (as cant’ Greater signi fi fi cance cance cally fi cance cance fi c fi cance A signi THRESHOLDS &CRITERIA • the ability of the Council to achieve community outcomes, outcomes, community toachieve Council ofthe ability the • interest an by with or affected tobe likely persons those • ofWaitakere development sustainable and wellbeing the • upon: impact will which one The extent to which the decision decision the towhich extent The include: may decision that making when considered be will that signi the with commensurate decision, by, the in, have interest an or affected are that bene and costs relative their and options the matter, any other or decision proposal, issue, the for reasons the on information consider will Council signi tothe as adecision making When and policies Council existing with consistency the • identi for implications the • ofservice levels current on effect the • to cost net ofits terms in decision ofthe magnitude the • social, future and present the for implications the • to: regard having matter any other or decision proposal, signi the assess will Council The Plan Plan. or Annual the Community Term Long the Council in made already decision Long Term Council Community Plan. Community TermLong Council identi outcomes other or priorities strategic its in that decision City strategic documents. strategic priorities strategic Council the City ofthe well-being cultural and environmental economic, fi cant issue, proposal, decision or any other matter is is matter any other or decision proposal, issue, cant BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB fi fi cance of that decision. Criteria Criteria decision. ofthat cance ed community outcomes and and outcomes community ed fi fi fl cance of each issue, issue, ofeach cance ts, and the views of those ofthose views the and ts, ows logically from a from logically ows Fully describedintheLTCCP fi cance of a matter ofamatter cance fi ed in its its in ed 199

SECTION THREEONE ????????POLICY ON SIGNIFICANCE POLICY ON SIGNIFICANCE CONTINUED

Greater signiﬁ cance

Radically different options Only minor differences between options

Any adverse impact on the physical and natural environment. The greater the adverse impact the greater the signiﬁ cance.

Greater signiﬁ cance

High adverse environmental impact Positive environmental impact

The reversibility of the outcomes arising from the decision

Greater signiﬁ cance

Completely irreversible Decision can easily be reversed

The beneﬁ t of a precautionary approach, where there is a level of uncertainty of outcomes.

Greater signiﬁ cance

Higher level of uncertainty Full information available

Where a decision is determined to be signiﬁ cant, the Council will: • identify all practical options • assess those options based on the costs and beneﬁ ts of each option, in each case by reference to the present and future

POLICY ON SIGNIFICANCE social, economic, environmental and cultural well-being of the City ???????? • assess the options in terms of the City’s community outcomes and the Council’s strategic priorities • consider the Council’s future capacity to meet its statutory responsibilities • have regard to any other matter the Council thinks relevant.

If the issue, proposal decision or other matter concerns land or bodies of water, the Council will: SECTION THREE SECTION ONE • consult with Maori in accordance with the guidelines outlined in Section 77 of the Act • consider the views and preferences of persons likely to be affected by, or have an interest in the matter • consider any speciﬁ c controls imposed by other sections of the Act, or any other relevant legislation.

Using section 79 as a guide, the Council will make its ﬁ nal decision after having fully considered any information gathered as part of its decision-making process, as well as the results of any consultation undertaken.

200 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B • housing for older adults (as required by section 5of by section (as required adults older for housing • Ltd Holdings City Waitakere in shares • • cemeteries network supply water the • network wastewater the • network stormwater the • are: assets strategic tobe considers Council City Waitakere that ofassets groups and assets The Annual Report. or Plan Annual relevant the in reported be will taken actions Any procedure. consultative aspecial have toundergo not also will situation, unforeseen or emergency an from damage to due safety and health public toensure asset an torepair or arising, situation hazardous immediate an prevent to either required are that assets tostrategic alterations physical Any community. tothe provided ofservice level the affects substantially part that unless asset ofastrategic of apart replacement, or construction minor or control, or ownership of transfer tothe relate that decisions for procedure consultative special the undertake not therefore will Council ef ofthe interests the In service. the delivers that awhole as class asset the is it because assets single whole as assets strategic its considers Council Policy, the ofthe purposes the For . Plan Community Term Long the Council change to order in undertaken be will procedure consultative special for, a provided not is proposal the If Plan. Community Council Term Long current Council’s the in for provided expressly be must listed assets these abandon or replace construct, to any decisions or control, or ownership Council’s to the Once de de signi on policy its in Assets Strategic ofits a list toprovide Act ofthe 90 by section required is Council The STRATEGIC ASSETS fi ned in Section 5 of the Act). 5ofthe Section in ned affordable housing as part of its social policy) social ofits part as housing affordable toprovide capacity authority’s local the to maintain required and authority local by the owned building or any land toinclude Councils requires which Act the fi ned as strategic assets, any signi assets, strategic as ned fi cient management of resources, the the ofresources, management cient fi cant changes changes cant fi cance (as cance SECTION THREE SECTION BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB POLICY ON POLICY SIGNIFICANCE 201

SECTION THREEONE ????????POLICY ON SIGNIFICANCE AUDIT REPORT

TO THE READERS OF

WAITAKERE CITY COUNCIL’S

LONG-TERM COUNCIL COMMUNITY PLAN

FOR THE TEN YEARS COMMENCING 1 JULY 2009

The Auditor-General is the auditor of Waitakere City Council (the City Council). The Auditor-General has appointed me, Ben Halford, using the staff and resources of Audit New Zealand, to report on the Long Term Council Community Plan (LTCCP), on his behalf.

The Auditor-General is required by section 94(1) of the Local Government Act 2002 (the Act) to report on:

• the extent to which the LTCCP complies with the requirements of the Act;

• the quality of information and assumptions underlying the forecast information provided in the LTCCP; and

• the extent to which the forecast information and performance measures will provide an appropriate framework for the meaningful assessment of the actual levels of service provision.

It is not our responsibility to express an opinion on the merits of any policy content within the LTCCP.

The use of information contained in this LTCCP The Government decided to dissolve this City Council and the other existing local authorities that govern the Auckland region (collectively the existing Auckland Councils) after 31 October 2010, and to establish a single unitary authority, the Auckland Council, to govern the entire Auckland region from 1 November 2010. The Local Government (Tamaki Makaurau Reorganisation) Act 2009, enacted in May 2009, provides for the transition to new local government arrangements.

The Auckland Transition Agency (ATA) has been established to facilitate the transition and to enable the Auckland Council to operate on and from its establishment on 1 November 2010. This will involve developing the Auckland Council’s structure and operational arrangements and determining how the systems, plans and policies of this City Council and other existing local authorities and local organisations will be linked to, and integrated within, that structure.

Under draft legislation currently before the House, the Local Government Commission (LGC) is to be given the power to determine ﬁ nal boundaries for the Auckland Council. AUDIT REPORT AUDIT ???????? Section 29 (1) of the Local Government (Tamaki Makaurau Reorganisation) Act 2009 requires existing Auckland Councils to continue to perform their role as local authorities during the transition period.

Although the City Council will be dissolved after 31 October 2010, the LTCCP of the City Council will continue in force beyond that date and is therefore of ongoing relevance to the community it currently governs. After that date the LTCCP of the City Council will be integrated into the new governing structure, subject to the decisions of the ATA and the LGC. For this reason, SECTION THREE SECTION ONE the LTCCP for the City Council has been developed on a going concern basis.

202 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B Auckland Council’s structure and operational arrangements and determining how the systems, plans and policies of policies and plans systems, the how determining and arrangements operational and structure Council’s Auckland the developing when Council, Auckland ATA, the ofthe decisions However, subsequently and ofthe outcome the Council. the to available currently information best the and decisions cumulative the LTCCP on the based prepare are to used assumptions The LTCCP the prepare to used key on assumptions uncertainty ofthe impact potential the about disclosures Council’s The con written obtained Council City The con written get to Councils Auckland existing (Tamaki requires 2009 Government Reorganisation) 31 Makaurau Act Local ofthe Section con obtain must Council The arrangements government local new the about uncertainty ofthe impact potential the regarding disclosures Council’s City the • ATA the that requirement con ofthe must effect the • unquali our In forming region Auckland the for arrangements government newlocal from arising uncertainty the of Disclosures • • • view: In our onSpeci Opinion LTCCP. the inpreparing Council City bythe used ofkey assumptions validity the on uncertainty ofthis impact potential the and region Auckland the for arrangements government local future regarding uncertainty the considered We also speci the weconsidered opinion, overall our In forming Council thereafter. Auckland 2010, the and October 30 until Council City the of activities the about community the to accountability subsequent and public bythe indecision-making participation for and thereafter, Council Auckland bythe and 2010, 31 to October period transition inthe Council City bythe decision-making integrated long-term for basis areasonable provides 2009 June 30 Bdated Ato volumes incorporating Council LTCCP City of the opinion In our Opinion Overall Opinion the extent to which the forecast information and performance measures within the LTCCP provide an LTCCP provide the within measures performance and information forecast the which to extent the supportable and areasonable LTCCP provide the prepare to used assumptions and information underlying the good demonstrating respects inallmaterial Act the of requirements the with complied has Council City the for the Auckland region on key assumptions used by the City Council to prepare the LTCCP. the prepare to Council City bythe used key on assumptions region Auckland the for re provision, service of levels actual the of assessment meaningful the for framework appropriate information; forecast the of preparation the for basis environment; its of context the within scale and size its of acouncil for practice practice for a Council of its size and scale within the context of its environment. its of context the within scale and size its of aCouncil for practice fi rmation from the ATA before implementing certain decisions, including a decision to adopt or amend aLTCCP. amend or adopt to adecision including decisions, ATA certain the from rmation implementing before fi c Matters Required by the Act by the Required c Matters fi ed opinion, we considered: fi ATA LTCCP the from rmation implementing before fi rmation from the ATA the from rmation 29 2009. on June fi and LTCCP implemented; the itis rm before fi c matters outlined in section 94(1) below. out insection set is which outlined Act ofthe c matters BEST FORTHEWEST- WAITAKERE’S 10YEARPLAN-PARTB SECTION THREE SECTION AUDIT AUDIT REPORT fl ects ects good 203

SECTION THREEONE ????????AUDIT REPORT AUDIT REPORT CONTINUED

this Council and other existing Auckland Councils and local government organisations will be linked to, and integrated within, that structure is uncertain at this stage. It is not currently known to what extent the future decisions of the ATA and the Auckland Council may affect the forecast information within this LTCCP, by giving rise to:

• any additional costs of reorganisation and reorganisation savings;

• the transfer of assets and liabilities into or out of the City Council; and

• the revision of the City Council’s existing funding policies.

Also, it is not currently known how the LGC may determine the boundaries for the Auckland Council and the extent to which any boundary changes may affect the forecasts included within this LTCCP.

We consider the disclosures made by the City Council on page 95 Part B regarding the uncertainty about the key assumptions affected by the uncertainty arising from new Local Government arrangements for the Auckland region to be adequate.

The validity of key assumptions used by the City Council to prepare the LTCCP depends on the future decisions of ATA, the Auckland Council and the LGC, and the LTCCP is subject to change based on these future decisions. It is not practical for us to quantify the potential effect of the resolution of this uncertainty on the forecast information within the LTCCP.

Actual results are likely to be different from the forecast information since anticipated events frequently do not occur as expected and the variation may be material. Accordingly, we express no opinion as to whether the forecasts will be achieved.

Our report was completed on 30 June 2009, and is the date at which our opinion is expressed.

The basis of the opinion is explained below. In addition, we outline the responsibilities of the City Council and the Auditor, and explain our independence.

Basis of Opinion We carried out the audit in accordance with the International Standard on Assurance Engagements 3000: Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards. We have examined the forecast ﬁ nancial information in accordance with the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information.

We planned and performed our audit to obtain all the information and explanations we considered necessary to obtain reasonable assurance that the LTCCP does not contain material misstatements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

AUDIT REPORT AUDIT Our audit procedures included assessing whether: ????????

• the LTCCP provides the community with sufﬁ cient and balanced information about the strategic and other key issues, choices and implications it faces to provide an opportunity for participation by the public in decision making processes;

• the City Council ’s fi nancial strategy, supported by fi nancial policies as included in the LTCCP is fi nancially prudent, and has been clearly communicated to the community in the LTCCP; SECTION THREE SECTION ONE • the presentation of the LTCCP complies with the legislative requirements of the Act;

• the decision-making and consultation processes underlying the development of the LTCCP are compliant with the decision- making and consultation requirements of the Act;

204 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B SECTION THREE AUDIT REPORT

• the information in the LTCCP is based on materially complete and reliable asset or activity management information;

• the agreed levels of service are fairly reﬂ ected throughout the LTCCP;

• the key plans and policies adopted by the City Council have been consistently applied in the development of the forecast information;

• the assumptions set out within the LTCCP are based on best information currently available to the City Council and provide a reasonable and supportable basis for the preparation of the forecast information;

• the forecast information has been properly prepared on the basis of the underlying information and the assumptions adopted and the ﬁ nancial information complies with generally accepted accounting practice in New Zealand;

• the rationale for the activities is clearly presented;

• the levels of service and performance measures are reasonable estimates and reﬂ ect the key aspects of the City Council ’s service delivery and performance; and

• the relationship of the levels of service, performance measures and forecast ﬁ nancial information has been adequately explained within the LTCCP.

We do not guarantee complete accuracy of the information in the LTCCP. Our procedures included examining on a test basis, evidence supporting assumptions, amounts and other disclosures in the LTCCP and determining compliance with the requirements of the Act. We evaluated the overall adequacy of the presentation of information. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Council and the Auditor The City Council is responsible for preparing a LTCCP under the Act, by applying the City Council’s assumptions and presenting the ﬁ nancial information in accordance with generally accepted accounting practice in New Zealand. The City Council’s responsibilities arise from sSection 93 of the Act. The Council must get written conﬁ rmation from the ATA before implementing the decision to adopt the LTCCP, in accordance with section 31 of the Local Government (Tamaki Makaurau Reorganisation) Act 2009.

We are responsible for expressing an independent opinion on the LTCCP and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 94(1) of the Act.

Independence When reporting on the LTCCP we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand.

Other than this report and in conducting the audit of the Statement of Proposal for adoption of the LTCCP and the annual audit, REPORT AUDIT we have no relationship with or interests in the City Council. SECTION THREE

Ben Halford Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand

BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B 205 AUDIT REPORT CONTINUED

Matters Relating to the Electronic Presentation of the Audited Long-term Council Community Plan This audit report relates to the Long Term Council Community Plan of Waitakere City Council for the ten years commencing 1 July 2009 included on Waitakere City Council’s website. Waitakere City Council is responsible for the maintenance and integrity of Waitakere City Council’s website. We have not been engaged to report on the integrity of Waitakere City Council’s website. We accept no responsibility for any changes that may have occurred to the Long Term Council Community Plan since they were initially presented on the website.

The audit report refers only to the Long Term Council Community Plan named above. It does not provide an opinion on any other information which may have been hyperlinked to or from the Long Term Council Community Plan. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the Long Term Council Community Plan as well as the related audit report dated 30 June 2009 to conﬁ rm the information included in the audited Long Term Council Community Plan presented on this website.

Legislation in New Zealand governing the preparation and dissemination of ﬁ nancial information may differ from legislation in other jurisdictions. AUDIT REPORT AUDIT SECTION THREE

206 BEST FOR THE WEST - WAITAKERE’S 10 YEAR PLAN - PART B COUNCIL SERVICES CONTACT DETAILS ON LINE GLEN EDEN LIBRARY www.waitakere.govt.nz 9.00 am - 5.30 pm - Monday, Tuesday, Thursday & Friday e-mail: [email protected] 9.00 am - 8.00 pm - Wednesday 10.00 am - 4.00 pm - Saturday CUSTOMER SERVICES CALL CENTRE Closed - Sunday All enquiries - 24 hours, 7 days per week 12 - 32 Glendale Road Telephone: 839 0400 Glen Eden Waitakere 0602 WAITAKERE CENTRAL Telephone: 839 2260 8.00 am to 5.00 pm - Monday to Friday Facsimile: 818 5363 6 Henderson Valley Road Henderson TE ATATU PENINSULA LIBRARY Waitakere 0612 9.00 am - 5.30 pm - Monday to Wednesday & Friday Telephone: 836 8000 9.00 am - 8.00 pm - Thursday (This is also the prime contact number, should you know the 10.00 am - 4.00 pm - Saturday extension number of the person you need to speak to.) Closed - Sunday Facsimile: 836 8001 595 Te Atatu Road Te Atatu Peninsula NEW LYNNWAR MEMORIAL LIBRARY Waitakere 0610 9.00 am - 5.30 pm Monday to Thursday Telephone: 839 2260 9.00 am - 8.00 pm Friday Facsimile: 834 2596 10.00 am - 4.00 pm Saturday & Sunday 3 Memorial Drive TITIRANGI LIBRARY New Lynn 9.00 am - 5.30 pm - Monday to Wednesday & Friday Waitakere 0600 9.00 am - 8.00 pm - Thursday Telephone: 839 2260 10.00 am - 4.00 pm - Saturday Facsimile: 827 3393 Closed - Sunday 500 South Titirangi Road MASSEY LIBRARY Titirangi 9.00 am - 5.30 pm - Monday, Wednesday, Waitakere 0604 Thursday & Friday Telephone: 839 2260 9.00 am - 8.00 pm - Tuesday Facsimile: 817 6085 10.00 am - 4.00 pm - Saturday & Sunday Corner of Don Buck Road and Westgate Drive Massey Waitakere 0614 Telephone: 832 5389 Facsimile: 832 5341 WAITAKERE CITY COUNCIL Best for the West - Waitakere's 10 year Plan

PART B