TABLE OF CONTENTS – SECTION ONE

COUNCIL DIRECTORY ...... 2 STATEMENT OF COMPLIANCE ...... 3 WHAT IS AN ANNUAL REPORT ...... 4 COUNCIL ORGANISATIONAL STRUCTURE ...... 5 RUAPEHU DISTRICT MAP ...... 6 MAYOR AND COUNCILLORS ...... 7 COMMUNITY BOARDS ...... 8 MESSAGE FROM THE MAYOR AND CHIEF EXECUTIVE ...... 9 HOW WE PERFORMED FINANCIALLY ...... 13 AUDITOR’S REPORT ...... 16 RUAPEHU’S VISION AND MISSION ...... 23 COMMUNITY OUTCOMES ...... 24 STRATEGIC ACTIVITIES ...... 25 WELLBEINGS UNDER THE LOCAL GOVERNMENT ACT ...... 25 LAND TRANSPORT ...... 26 WATER SUPPLY ...... 34 WASTEWATER (SEWERAGE) ...... 46 STORMWATER AND FLOOD PROTECTION ...... 56 SOLID WASTE ...... 62 RECREATION AND COMMUNITY FACILITIES & COMMUNITY PROPERTY ...... 67 COMMUNITY SUPPORT ...... 82 LEADERSHIP ...... 92 REGULATION ...... 101

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION 1 - PAGE 1

COUNCIL DIRECTORY

Postal Address: Private Bag 1001, Taumarunui 3946 Website: www.ruapehudc.govt.nz Email: [email protected]

Locations: 59-63 Huia Street, Taumarunui Phone 07 895 8188 Fax 07 895 3256 37 Ayr Street, Ohakune Phone 06 385 8364 Fax 06 385 8628 Cr Duncan/Seddon Streets, Raetihi Phone 06 385 4447 Fax 06 385 4014

Bankers: Bank of New Zealand 101 Hakiaha Street, Taumarunui

Auditors: Audit New Zealand on behalf of the Auditor General 280 Queen Street, Auckland

Solicitors: Le Pine & Co PO Box 140, Taupo

Major Contractors: Alf Downs Streetlighting Ltd Datacom Group Ltd Downer EDI Works Ltd Emmetts Civil Construction Ltd Envirowaste GHD J&J Walters Ltd Jilesen Contractors Ltd Lexel Systems Ltd Mulch & Mow Ltd Roadmarking Services Ltd Veolia Water Services (ANZ) Pty Ltd Visit Ruapehu

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION 1 - PAGE 2

STATEMENT OF COMPLIANCE

Council completed and adopted its 30 June 2020 Annual Report by 31 December 2020, as required by section 98(3) of the Local Government Act 2002, as required under the COVID-19 date extension for Councils to adopt their Annual Reports.

The Council and Management of the Ruapehu District Council confirm that all statutory requirements in relation to the Annual Report, as outlined in the Local Government Act 2002, have been complied with.

Dated this 11th day of December 2020.

Don Cameron JP Clive Manley MAYOR CHIEF EXECUTIVE

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION 1 - PAGE 3

WHAT IS AN ANNUAL REPORT

The local authority is required to produce a plan showing how it will achieve the purpose of Local Government that is to meet the current and future needs of the community. The local authority demonstrates its contribution towards this purpose in the setting of Strategic Goals (SGs) and in the development of a Long Term Plan (LTP).

The LTP describes what a local authority aims to achieve over a minimum period of ten years. The LTP must be produced once every three years, with an Annual Plan for the years in between. The Annual Plan provides the budget for the coming year and explains any changes from the LTP. The first year of the LTP is the Annual Plan for that year.

The Annual Report is used to monitor the local authority’s progress against the SGs and work programmes identified in the 2018-28 LTP and against budgets contained within the 2018-28 LTP and 2019-20 Annual Plan.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION 1 - PAGE 4

COUNCIL ORGANISATIONAL STRUCTURE

Residents of the Ruapehu District

Ward Committee Community Boards Council Audit & Risk

Taumarunui/Ohura National Park Mayor Committee Waimarino-Waiouru Don Cameron JP

Deputy Mayor Karen Ngatai

Members Adie Doyle Kim Wheeler Robyn Gram JP Graeme Cosford JP Lyn Neeson Murray Wilson JP David “Rabbit” Nottage Vivienne Hoeta

Executive Office Ben Goddard QSM • Human Resources. (passed away 23/09/2020) • Corporate Communications. Elijah Pue • Information Technology. • Business Analyst. • Civil Defence & Emergency Chief Executive Management. Clive Manley • Risk & Project Controls Manager.

Group Manager Customer Financial Controller Group Manager Community Acting Environmental Land Transport/ Economic Services Alan Young Services Manager Development Manager Pauline Welch Margaret Hawthorne Stuart Watson Warren Furner

• Customer Services. • Annual & Long Term • Building. • Economic Development. • District Libraries. Planning. • Community Property. • DoC Whakapapa. • Land Transport. • i-SITES. • Financial Analysis & • Compliance. • Water, Wastewater & • RTO (Visit Ruapehu). • Iwi Development. Decision Support Advice. • Environmental Health & Stormwater Services. • Policy/Planning. • Financial & Management Liquor. • Rating. Reporting. • Information Management. • Youth Development. • Services Asset Managers. • Recreation & Community • Treasury. Facilities. • Resource Management. • Solid Waste.

RUAPEHU DISTRICT MAP

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 6

MAYOR AND COUNCILLORS

Don Cameron JP Karen Ngatai Adie Doyle Kim Wheeler Mayor Deputy Mayor Taumarunui Ward Taumarunui Ward Taumarunui Ward 135 Matapuna Road, 168 Golf Road, 4 Taringamotu Road, RD 6, RAETIHI 4696 446 Echolands TAUMARUNUI 3920 TAUMARUNUI 3920 Road, RD 4, Phone 06 385 3033 TAUMARUNUI 3994 Phone 07 895 6766 Phone 07 896 7736

Phone 07 896 6658

Graeme Cosford JP Robyn Gram JP Lyn Neeson Murray Wilson JP Taumarunui Ward Taumarunui Ward Ohura Ward National Park Ward

42 Reu Street, 158 Golf Road, 649 Paparoa Road, 13 MacKenzie TAUMARUNUI 3920 TAUMARUNUI 3920 KIRIKAU 3993 Street, NATIONAL PARK Phone 07 895 7572 Phone 07 895 5320 Phone 07 895 7803 3948

Phone 07 892 2774

Ben Goddard QSM Elijah Pue David “Rabbit” Vivienne Hoeta Waimarino-Waiouru Waimarino-Waiouru Nottage Waimarino-Waiouru Ward (Passed away Ward Waimarino-Waiouru Ward 23/09/20). Ward 51 Queen Street, 34 George Street, PO Box 8, RAETIHI 4632 32 Southridge Drive, RAETIHI 4632 OHAKUNE 3660 OHAKUNE 4625 Phone 027 740 6253 Phone 06 385 4551 Phone 06 385 8324 Phone 021 111 6514

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 7

COMMUNITY BOARDS

National Park Community Board Waimarino-Waiouru Community Board

National Park Ward Councillor Murray Wilson is Waimarino-Waiouru Ward Councillors Vivenne Hoeta Council’s appointed representative on the Board. and David “Rabbit” Nottage are Council’s appointed Mayor Don Cameron is an ex-officio member. representatives on the Board. Mayor Don Cameron has speaking rights.

Peter Zimmer John (Luigi) Hotter (Chair) (Chair)

Whakapapa Road, 99 Ruapehu Road, OWHANGO 3948 OHAKUNE 4625

Phone 027 479 1926 Phone 06 385 8193

Simon O’Neill Alan Whale (Deputy Chair) (Deputy Chair)

3803 State Highway 4, 125 Ruapehu Road, RD 1, RAURIMU 3989 OHAKUNE 4625

Phone 021 661 159 Phone 06 385 9139

Mark Bolten Raewyn (Missy) Biddle (Passed away 12 June 2020)

115 Golf Road 17A Ballance Street, TAUMARUNUI 3920 RAETIHI 4632

Phone 021 191 5385 Phone 022 132 6960

Clark McCarthy Cynthia Dowsett

3 Waimarino Tokaanu 36 Shannon Street, Road OHAKUNE 4625 NATIONAL PARK 3989 Phone 06 385 8086 Phone 027 475 0561

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 8

MESSAGE FROM THE MAYOR AND CHIEF EXECUTIVE

On behalf of Ruapehu District Council we are pleased to present the Annual Report for the 2019/20 financial year.

Council's focus is to drive and support the development of safe, prosperous rural communities that are able to thrive and capitalise on our agriculture, business and tourism sectors while sustaining our beautiful environment.

The Annual Report highlights our progress against these strategic goals and our work programs for 2019/20 which is the second financial year of the ten year 2018-28 Long Term Plan.

Progress maintained despite COVID

The consultation for the 2018-28 Long Term Plan and the revised Growing Ruapehu Economic Development Strategy highlighted the growing community aspirations for the future of Ruapehu.

The adoption of these plans together with the new Waste Management and Minimisation Plan provided Council with the mandate to continue a programme of work and investment that has helped create a platform for Ruapehu’s future growth and prosperity.

For 2019/20 Council adopted an average 3.52% rate increase to deliver on a planned capital works programme worth $17.3m.

There were no significant changes to the Annual Plan work programme from what was outlined in the Long Term Plan however we made some changes to the work plan order.

The amendments to the work plan were considered minor in the scheme of things and were within the normal ‘swings and roundabouts’ that we manage every year.

The start of the COVID-19 pandemic in early 2020 created a lot of uncertainty within our communities with significant discussion on how Council should respond.

Ultimately Council decided that keeping our contractors and suppliers employed by maintaining our work programme was in the best interests of our communities and we should do all we could alongside Government to cushion the impact of COVID-19 in support of regional and local recovery.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 9

Council response during COVID

During the COVID level 4 lockdown period Council activated Emergency Operating Centres (EOC) in Taumarunui and Ohakune.

We maintained the provision of essential services with all staff not required for civil defence or needed to support critical activities working from home.

Over this period worked closely with non-government organisations including iwi to deliver welfare services and other civil defence functions and we would like to thank them for the invaluable contribution they made toward helping to keep our communities safe.

A silver-lining to COVID is that relationships and connections made between Council, non-government organisations and iwi were strengthened and have established a foundation for on-going discussions and cooperation on Council’s work programme and other community priorities.

Government post-COVID expectations.

One of the strong signals from Government was that councils would play a leading role in supporting the recovery through their programme of work which they have supported through the ‘shovel-ready’ programme.

Council responded by identifying projects worth over $150m including from the Ruapehu Regional Destination Development Plan and investments from other economic sectors.

Enabling remote working and responding to Government funding opportunities was an unanticipated draw on resources and Council staff, contractors and supplies have been required to make a step change in order to respond to these higher work demands.

While any Government funding received will impact outside of the 2019/20 financial year it is worth noting that it will be utilised to support our work programme and assist in addressing community priorities.

Active debt management a financial priority

In the current 2018-28 Long Term Plan and last year’s Annual Report we highlighted the affordability challenges facing Council with our small rating base and large demands for infrastructure upgrades notably in 3 Waters.

Over the ten years of the Long Term Plan our debt was projected to grow to $66.5m with water projects accounting for around 67% of new debt, township revitalisation 16% and roading 17%.

Management of our debt is a very important priority for the Finance Team and the debt management programme is regularly reviewed during the year.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 10

Council has worked hard to minimise (and avoid) these debt projections through seeking Government funding assistance wherever possible, being part of the Local Government Funding Agency (LGFA) to minimise financing costs, successfully getting our road subsidy Funding Assistance Rate (FAR) lifted to 72% (moving to 75% in 2020/21), and retaining a 100% subsidy on our Special Purpose mountain roads and a pro-active debt management programme.

External debt rose by $1.2M from $27.8m at 30 June 2019 to $29.0m at 30 June 2020.

The actual debt at 30 June 2020 at $29.0m was $1.1m less than the Annual Plan 2019/20 of $30.1m.

Membership of the LGFA has given Council the ability to access varied borrowing instruments and has resulted in lower debt servicing costs.

Overall Council has managed its finances well showing a net surplus of $4,830,000 against the Annual Plan 2019- 20 $5,128,000

Land Transport still major area of expenditure despite 3 Waters demands

Despite 3 waters projected to be the major driver of future debt Land Transport continues to be largest area of expenditure which for 2019/20 was budgeted at $15.3m or 41% of all Council spending.

The increase in the road subsidy FAR to 72% allowed Council to spend an extra $2m on our roads which was focused on pavement and bridge renewal.

This saw Council schedule $12m of roading capital works for the year.

Resourcing issues, COVID-19 and the need to replace/fix infrastructure affected by emergency events impacted on our ability to catch-up with outstanding repair and maintenance issues and meet capital works targets.

Minor improvement works such as widening, retreats, sealing bridge approaches, etc. which are often identified through community meetings were undertaken at 29 sites.

The benefits of Council providing greater financial certainty to our key contractors through longer term 3 year contracts has allowed investment in a second wheel digger that is now focused on water channel clearance.

Combined with the efforts of road men teams working on culverts the water channel programme is paying off in increasing the resilience of the network.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 11

Council committed to meeting 3 waters obligations despite challenges and uncertainty.

While Council has been closely involved in the discussions on the future 3 Waters model what this may finally look like and what it will mean for our future involvement in the provision of 3 water services is still to be made clear.

In the interim Council has been focused on working with our water contractor Veolia to deliver an advanced capital works programme and gaining Government funding assistance to help offset the impact on ratepayers.

Council has committed to meeting the new drinking water standards within five years assuming we receive the necessary Government funding support.

So far we have been successful in gaining $4m in Government funding toward the $5m upgrade of the Ohakune Water Treatment Plant, raw water line and reservoir to cope with visitor driven growth.

This should mean that by next ski season boil water notices in Ohakune will be a thing of the past.

Council also gained $5.6m toward meeting our obligations for the 3 Waters reform programme, $115,000 for a feasibility study on combining Ohakune and Raetihi Wastewater Treatment Plants and $50,000 for an alternative drinking water source for Pipiriki.

Waste minimisation and sustainability

2019/20 saw the ground work for implementation of the 2018-28 Waste Management and Minimisation Plan put in place with a new contract negotiated with EnviroWaste for transfer station and kerbside collection services (including food waste) and operation of the Waimarino Transfer Station given to a specialist third party provider.

2019/20 leaves Council well-placed for 2020/21.

Council responded well to COVID-19 however its ‘long tail’ has put additional pressures on Council staff and our contractors and partners who are now working to the ‘new normal’.

To help with the increased workloads and help manage staff well-being Council has been relying more on our contractors and using specialist consultants for some projects such as housing.

Overall Council feels its efforts over the 2019/20 financial year have left it in a good position to progress its strategic objectives and respond to any challenges on the 2020/21 horizon.

Don Cameron Clive Manley MAYOR JP CHIEF EXECUTIVE

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 12

HOW WE PERFORMED FINANCIALLY

Operational Result Our operational result for the 2019/20 Financial Year shows a net surplus of $4.7m against a budget of $5.1m.

Capital Works Programme We have completed a capital works programme in the last 12 months totalling $12.5m.

Activity Description $million Land Transport Renewals of various sorts 9.6 Water Supply Renewals of various sorts 1.0 Wastewater Various minor works 0.1 Stormwater Various minor works - Solid Waste Various minor works under $100k - Recreation & Community Facilities Various minor works 0.4 Community Support Various minor works under $100k 0.2 Overheads Computer Equipment, Software and 1.2 Furniture

Total 12.5

Debt Council debt has increased by $1.2m during the 2019/20 Financial Year ($2.0m for 2018/19).

Key Financial Indicators – Comparative Table

($million)

Budget 2020 2019 2018 2017 2016

Income 42.1 43.5 39.4 39.9 35.7 36.9 Less Expenditure 37.0 38.7 35.6 35.5 33.5 34.1 Surplus/(Deficit) 5.1 4.8 3.8 4.4 2.2 2.8

Weighted Average Interest Rates

2020 2019 2018 2017 2016 Short Term < 1 yr. 0.62% 3.79% 4.11% 4.50% 5.22% Long Term > 1 yr. 2.01 % 3.10% 4.48% 4.80% 4.95%

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 13

Key Treasury Management Indicators The table indicates the performance of Council’s Treasury Management against the Treasury Management Policy limits on borrowing and interest rate exposures. Council adopted a new Treasury Policy in February 2018, which is why we have no comparative percentages for the previous years. Two of the three categories are compliant but Council was slightly under in the less than two year category. Policy limits under the 2015-2025 LTP were revised in the 2018-2028 LTP in accordance with the new Treasury Management Policy. Council joined Local Government Funding Agency (LGFA) in July 2018 and has obtained much lower interest rates on its external debt, which has resulted in interest savings of $262k for the 2018/19 financial year.

Acceptable 2019 2018 2017 2016 2020 Range Actual Actual Actual Actual Interest Expense/Operating Revenue 3 to 12% 1.9% 2.9% 2.9% 3.6% 3.7% Total Liabilities /Total Assets <12% 8.2% 8.2% 8.2% 8.0% 8.1% Net Debt /Operating Revenue 1 to 1.5 0.67 0.71 0.65 0.79 0.79 Interest Rate Exposure under old

Liability Management Policy <12 months 10% to 40% - - 55.43% 39.92% 21.3% 12 months - 2 years 10% to 40% - - 29.07% 15.51% 22.5% 2 - 4 years 20% to 50% - - -% 29.07% 40.7% Over 4 years 10% to 20% - - 15.50% 15.5% 15.5%

Acceptable 2019 2018 2017 2016 2020 Range Actual Actual Actual Actual Interest Rate Exposure under new

Treasury Policy Less than 2 years 40% to 100% 32.00% 38.18% - - - 2 - 4 years 25% to 80% 44.00% 32.73% - - - 4 - 8 years 0% to 60% 24.00% 29.09% - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 14

Key Performance Indicators Council records a variety of key performance indicators (KPIs) to report non-financial performance. Individual KPIs are reported in each activity area and can be found on the following pages.

Nine of the one hundred and four KPIs were affected by the COVID-19 lockdown and seven were not achieved as a result.

The activities affected are as follows:

Land Transport One KPI not achieved due to the COVID-19 level 4 lockdown, meant we could not achieve the full pavement rehabilitation programme. Two KPIs were affected by the lockdown but were still achieved.

Solid Waste One KPI not achieved due to a month of non-kerbside recycling due to level 4 lockdown.

Community Support Five KPIs were not achieved in this activity during the level 4 lockdown. Three were affected by the drop in international and domestic tourism. There was a drop in library usage and new members joining the library during the lockdown which affected one KPI. One Emergency Management KPI was affected in the number of Civil Defence community events being held.

2020 Achieved Not Achieved Not Assessed Land Transport 4 3 - Water 7 2 - Wastewater 8 - - Stormwater 7 - - Solid Waste 6 1 1 Recreation and Community Facilities 23 9 - Community Support 8 5 - Leadership 5 2 - Regulation 12 1 - Total 80 23 1

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 15

AUDITOR’S REPORT

Independent Auditor’s Report

To the readers of Ruapehu District Council’s annual report for the year ended 30 June 2020

The Auditor-General is the auditor of Ruapehu District Council (the District Council) and its subsidiaries and controlled entities (the Group). The Auditor-General has appointed me, Clarence Susan, using the staff and resources of Audit New Zealand, to report on the information in the District Council’s annual report that we are required to audit under the Local Government Act 2002 (the Act). We refer to this information as “the audited information” in our report.

We are also required to report on:

• whether the District Council has complied with the requirements of Schedule 10 of the Act that apply to the annual report; and

• the completeness and accuracy of the District Council’s disclosures about its performance against benchmarks that are required by the Local Government (Financial Reporting and Prudence) Regulations 2014.

We refer to this information as “the disclosure requirements” in our report.

We completed our work on 11 December 2020. This is the date on which we give our report.

Opinion

Unmodified opinion on the audited information, excluding the Council Activities statement

In our opinion:

• the financial statements on pages 5 to 64 of section two:

 present fairly, in all material respects:

• the Group’s financial position as at 30 June 2020;

• the results of the operations and cash flows for the year ended on that date; and

 comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Reporting Standards;

• the funding impact statement on page 65 of section two, presents fairly, in all material respects, the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the District Council’s Long-term plan;

• the statement about capital expenditure for each group of activities on pages 25 to 87 of section one, presents fairly, in all material respects, actual capital expenditure as compared to the budgeted capital expenditure included in the District Council’s annual plan; and

• the funding impact statement for each group of activities on pages 33 to 107 of section one, presents fairly, in all material respects, the amount of funds produced from each source of funding and how the funds were applied as compared to the information included in the District Council’s Long-term plan.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 16

Qualified opinion on the Council Activities statement – our work was limited with respect to the verification of the number of complaints for some services

In our opinion, except for the possible effects of the matter described in the Basis for our qualified opinion section of our report, the Council Activities statement on pages 21 to 107 of section one:

 presents fairly, in all material respects, the levels of service for each group of activities for the year ended 30 June 2020, including:

• the levels of service achieved compared with the intended levels of service and whether any intended changes to levels of service were achieved;

• the reasons for any significant variation between the levels of service achieved and the intended levels of service; and

 complies with generally accepted accounting practice in New Zealand

Report on the disclosure requirements

We report that the District Council has:

• complied with the requirements of Schedule 10 of the Act that apply to the annual report; and • made the disclosures about performance against benchmarks as required by the Local Government (Financial Reporting and Prudence Regulations 2014) on pages 69 to 74 of section two, which represent a complete list of required disclosures and accurately reflects the information drawn from the District Council and Group’s audited information and, where applicable, the District Council’s long-term plan and annual plans.

Basis for our qualified opinion on the audited information

The District Council is required to report against the performance measures set out in the Non-Financial Performance Measure Rules 2013 (the Rules) made by the Secretary for Local Government. These mandatory performance measures include the total number of complaints (per 1,000 connections) received about the following:

• drinking water clarity, taste, odour, pressure and flow, continuity of supply, and the District Council’s response times to any of these issues;

• wastewater odour, wastewater system faults and blockages, and the District Council’s response to issues with the wastewater system; and

• the performance of the stormwater system.

These measures are important because the number of complaints is indicative of the quality of services received by ratepayers.

The Department of Internal Affairs has issued guidance to assist local authorities in applying the Rules, including on how to count complaints. Our audit testing found that the District Council has not been counting complaints in accordance with this guidance and that the District Council’s method of counting was likely to have understated the actual number of complaints received both in the current year and in the comparative year to 30 June 2019.

Complete records for all complaints made to the District Council were not available and we were unable to determine whether the District Council’s reported results for these performance measures were materially correct. As a result, our work was limited and there were no practicable audit procedures we could apply to obtain assurance over the number of complaints reported against these performance measures.

We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. We describe our responsibilities under those standards further in the “Responsibilities of the auditor for the audited information” section of this report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 17

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion on the audited information.

Emphasis of matter – Impact of Covid-19

Without further modifying our opinion, we draw attention to the disclosures about the impact of Covid-19 on the District Council as set out in note 36 to the financial statements and page 15 of section one on the Council Activities statement.

Responsibilities of the Council for the audited information

The Council is responsible for meeting all legal requirements that apply to its annual report.

The Council’s responsibilities arise under the Local Government Act 2002 and the Local Government (Financial Reporting and Prudence) Regulations 2014.

The Council is responsible for such internal control as it determines is necessary to enable it to prepare the information we audit that is free from material misstatement, whether due to fraud or error.

In preparing the information we audit the Council is responsible for assessing its ability to continue as a going concern. The Council is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to amalgamate or cease all of the functions of the District Council and the Group or there is no realistic alternative but to do so.

Responsibilities of the auditor for the audited information

Our objectives are to obtain reasonable assurance about whether the audited information, as a whole, is free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in accordance with the Auditor General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of readers taken on the basis of this audited information.

For the budget information reported in the audited information, our procedures were limited to checking that the budget information agreed to the District Council’s annual plan.

We did not evaluate the security and controls over the electronic publication of the audited information.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. Also:

• We identify and assess the risks of material misstatement of the audited information, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District Council and Group’s internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 18

• We determine the appropriateness of the reported intended levels of service in the Council Services statement, as a reasonable basis for assessing the levels of service achieved and reported by the District Council.

• We conclude on the appropriateness of the use of the going concern basis of accounting by the Council and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast a significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the audited information or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• We evaluate the overall presentation, structure and content of the audited information, including the disclosures, and whether the audited information represents, where applicable, the underlying transactions and events in a manner that achieves fair presentation.

• We obtain sufficient appropriate audit evidence regarding the entities or business activities within the Group to express an opinion on the consolidated audited information.

We communicate with the Council regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Other Information

The Council is responsible for the other information included in the annual report. The other information comprises the information included on pages 1 to 15 of section one and 1 to 4 and 66 to 68 of section two, but does not include the audited information and the disclosure requirements.

Our opinion on the audited information and our report on the disclosure requirements do not cover the other information.

Our responsibility is to read the other information. In doing so, we consider whether the other information is materially inconsistent with the audited information and the disclosure requirements, or our knowledge obtained during our work, or otherwise appears to be materially misstated. If, based on our work, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Independence

We are independent of the Group in accordance with the independence requirements of the Auditor-General’s Auditing Standards, which incorporate the independence requirements of Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board.

In addition to our audit and our report on the disclosure requirements, we have performed a limited assurance engagement related to the District Council’s debenture trust deed, which is compatible with those independence requirements. Other than this engagement, we have no relationship with or interests in the District Council or its subsidiaries and controlled entities.

Clarence Susan Audit New Zealand On behalf of the Auditor-General Tauranga, New Zealand

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 19

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 20

SECTION ONE

COUNCIL ACTIVITIES

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 21

Section One cover image: Ruapehu District. Credit Conrad Smith.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 22

RUAPEHU’S VISION AND MISSION

Vision Drive and support the development of safe, prosperous rural communities that are able to thrive and capitalise on our agriculture, business and tourism sectors while sustaining our beautiful environment.

Mission Our mission is to promote an environment which is sustainable, enhances the quality of life and meets the needs of our present and future citizens and visitors to the Ruapehu District.

. Creating and retaining jobs.

. Growing incomes and opportunities.

. Increasing the ratepayer base.

. Providing sustainable infrastructure.

. Providing value for money in all we do.

. Ensuring the people who benefit from Council spending contribute their fair share of the costs.

. Working with Government and others to gain funding for key projects so as to reduce the financial burden on Ruapehu ratepayers.

Image: Taranaki Falls, Whakapapa, Ruapehu District Credit: Graeme Murray RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 23

COMMUNITY OUTCOMES

Council has stated its core priorities in the form of five Community Outcomes. These Outcomes are Council’s “true north” for planning and decision-making. Every project that Council undertakes and every dollar it spends links back to at least one – but often several – of these Outcomes. They are a key way we measure success.

This Annual Report provides information to the community on what Council has done to promote the achievement of the Outcomes.

Safe, Healthy Communities . Quality regulation, regulatory services and infrastructure. . Reduce the volume of waste to the landfill. . Core infrastructure endeavours to keep pace with changing demand. . Excellent standards of safety and welfare are promoted and respected. . Preparation, planning and timely responses protect people and property from natural hazards.

Vibrant and Diverse Living . Traditions, values and history of all ethnic groups are respected. . Activities, facilities and opportunities for youth are provided and supported. . Excellence and achievement in sport, arts/cultural pursuits, community service and business is supported. . Events and festivals are encouraged and supported.

Thriving Natural Environment . Our environment is accessible, clean and safe and our water, soil and air meets required standards. . The promotion of our District includes focus on our natural rivers, bush and mountains, as well as the built heritage, agriculture and railways.

Strong Leadership and Advocacy . Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services. . Council is proactive, transparent and accountable.

Thriving Economy . Regulatory services and reliable infrastructure help the economy prosper. . Our transportation network is reliable, safe and endeavours to meet the needs of users. . Economic diversity and core economic strengths are encouraged in partnership with others. . Planning and regulatory functions balance economic growth and environmental protection.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 24

STRATEGIC ACTIVITIES

Council targets its activities to achieve Outcomes. There are nine groups of activity that Council reports against. These are grouped under two key areas – Facilities and Assets and Community Services.

Facilities and Assets Community Services

. Land Transport . Community Support . Water Supply . Civil Defence & Emergency Management . Wastewater . Library Services . Stormwater / Flood Protection . Regional Tourism Organisation . Solid Waste . i-SITES . Community Facilities . Leadership Cemeteries. - Governance Community Halls. Council. Parks and Reserves. Council Community Boards. Public Toilets. Administration and Library Buildings. - Strategic Development Social Housing. Economic Development. Business Development. Iwi Development. Policy Development. Youth Development.

. Regulation Building Services. Compliance. Environmental Health. Alcohol Licencing. Resource Management.

The section provides information on what Council did, and how much it cost, for each group of activities. The information is provided in the following format for each Activity:

1 What services and activities are included in the Group. 2 Why Council does these things and the contribution to Outcomes. 3 What Council achieved (KPI’s). 4 What Council spent on major capital projects against planned expenditure. 5 Highlights of the year. 6 Funding summary including the operational result and rates allocated to fund the activity. This is compared to the forecast budgets for the 2019/20 and the 2018/19 Financial Years as set out in the Long Term Plan 2018-28 and Annual Plan 2019-20.

WELLBEINGS UNDER THE LOCAL GOVERNMENT ACT

In May 2019, the Local Government Act 2002 was amended to reintroduce the Four Wellbeing’s into the purpose of local government. Councils are now required to play a broad role in promoting the Social, Economic, Environmental and Cultural wellbeing of communities.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 25

LAND TRANSPORT

Introduction The Land Transport Activity provides for the maintenance, renewal and development of local public roads, kerbs and channels, bridges, street lighting and footpaths for the whole District. State Highways are managed by the New Zealand Transport Agency (NZTA).

The district land transport network consists of:

. 488km of sealed roads. . 851km of unsealed road. . 342 bridges and large culverts. . 69km of footpaths. . 1,445 streetlights.

Outcomes Safe, Healthy Communities: . Core infrastructure endeavours to keep pace with changing demand. . Excellent standards of safety and welfare are promoted and respected.

Wellbeings Social, Economic and Environmental.

Rationale The Land Transport activity provides road and pedestrian infrastructure that allows for the safe, reliable, efficient and effective movement of vehicles and people. Roads are essential infrastructure for both community and economic development.

Significant Negative Effects There are significant negative effects associated with the provision of a roads service including loss of landscape amenity values, increased erosion, stormwater and flooding, runoff, noise, dust, vehicle emissions and traffic dangers.

Highlights for the Year This is the second year of the Long Term Plan 2018 – 2028. Land Transport’s approach has been focused on these four overarching issues:

. Forestry and Land Use - Changing land uses (i.e. forestry and mining) is resulting in (and will increase) the deterioration of the network, causing increased reactive (unplanned works to maintain the roading environment) maintenance and repair cost.

. Needs and Expectations - The needs and expectations of road users (local, freight, events, tourists) is resulting in increased investment to maintain and /or improve the form and function of the road network.

. Climate, Geology and Topography - The network is impacted by climate, geology and topography, resulting in reactive / unplanned maintenance costs as well as increased safety risk and operation of the network.

. Safety - Vulnerable road users are at greater risk due to increasing and changing activity and environmental conditions, which is expected to result in increased deaths and serious injuries.

In the consultation for the Long Term Plan, we told you that investment in the road network will be increased by $2 million dollars per annum, due to NZ Transport Agency bringing forward our transition to a 72% investment rate for local roads to 2018/19 rather than 2024/25. Our Special Purpose Road (Ohakune Mountain Road) retained its 100% investment funding from the Agency this year as well.

The extra investment is focused on pavement and bridge renewal to enable our economy and lifestyle.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 26

Pavements Council completed 21.5km of reseal, 4.94km of pavement rehabilitation and 1.73km of advanced earthworks. We were not able to achieve our 30km target for reseals due to budget issues and sealing roads that were wider than the standard 6m width. We were able to complete all the pre-reseal repairs in time for reseal season in January and February, as well as some advanced repairs for next year. By advancing pre-reseal repairs, it helps reseals to be completed over summer, when they have the best chance of achieving the 15-year seal life we hope for. Some of the extra investment was used to address sealed pavement defects outside of the reseal sites.

For pavement rehabilitation, Council reduced our 7km target to 5km this year to address issues in being able to achieve target length by the end of April. We worked hard to achieve this reduced target but the COVID-19 level 4 lockdown in March and April meant we were unable to do this. The site at the ‘Hairpin’ on Ohakune Mountain Road had to be made safe with a temporary seal before a full depth pavement was laid. This site will be completed over summer. Two sites on Ohura Road (15.00 – 15.85 & 15.85 – 16.73 km) had their earthworks completed and the pavement and seal will be completed in 2020/21. Bridges Structural component replacement work continued throughout the year on 11 bridges. Bridge 270 on Crotons Road Bridge (Ruatiti) was replaced, from a 2017/18 emergency event. A temporary bridge has been in place in the meantime. This was a difficult site due to fracturing in the rock under the abutments.

Some pedestrian bridges in Ohakune had repairs carried out too.

Mangateitei Rail Over Bridge (Rangataua) has now been deferred to 2021/22 as funding has not been granted from New Zealand Transport Agency.

Bridge 270 on Crotons Rd replacement – in progress. Bridge 270 on Crotons Rd replacement – complete.

Minor Improvements Works at 29 main sites were completed District wide during the year to match available budgets and along with other improvements such as widening, retreats, sealing bridge approaches and intersections, along with LED upgrades at Golf Road Roundabout, Taumarunui.

Flood Damage Bridge 270, Crotons Road Bridge, was the only emergency reinstatement budget Council held this year. No other events qualified for Emergency reinstatement funding. However, minor events occurred throughout the year, totalling $944,000 for a budget of $734,000. This puts pressure on our budgets and quantum of work is equivalent to a lower emergency event year.

Drainage The water channel programme is underway, travelling around the sealed network (and unsealed roads where the water channel is unable to be graded) on an eight year cycle with wheeled diggers.

COVID-19 Lockdown The lockdown for COVID-19 had an effect on parts of our programme, as described above. However, we were well supported by our contractors during this time. The General Maintenance contractor redeployed some staff onto roadmen duties, which had a good effect on the network.

Footpaths Condition rating in the District began at the end of 2019/20 financial year. This will be used to inform upcoming renewal and maintenance work. RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 27

Bus shelter – National Park Village Park and Ride.

Grant funded projects Council was successful in obtaining Tourism Infrastructure Funding from Ministry of Business, Innovation and Employment (MBIE) to develop a Park and Ride at National Park Village. The Park and Ride would support increased safety in the use of the roads around Tongariro National Park. Work began in February 2019 and was completed in August 2020. It has been well used already.

Mt Ruapehu Passenger Transport No passenger transport for winter 2020 was undertaken as there was no funding available for year three. The previous two years were funded between Ruapehu Alpine Lifts and New Zealand Transport Agency and fares.

Pavement Rehabilitation Sites 2019/20 Road Name RP Location (km) Length (km) Status Poro O Tarao Road 6.00 – 7.16 km 1.16 Completed. Ongarue Waimiha Road (past 3.61 - 5.20 km 1.59 Completed. Knights Road) Ohakune Mountain Road (Hairpin) 13.50 – 13.94 km 0.44 Temporary Seal Completed. Paparoa Road 0.90 Pavement Total 4.09

Earthworks completed. Pavement deferred to Ohura Road 15.00 – 15.85 km 0.85 2020/21 due to COVID-19 Lockdown.

Earthworks completed. Pavement deferred to Ohura Road 15.85 – 16.73 km 0.88 2020/21 due to COVID-19 lockdown. Earthworks Total 5.82

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 28

Major Capital Projects

Carried AP Actual Forward 2019/20 2019/20 Project Description Budget Notes $000 $000 $000 B404 Rail Over Bridge Renewal - 1,010 - 85% Renewals, 15% LOS. Bridge Component Replacements - 1,441 639 85% Renewals, 15% LOS. Bus Shelter Renewals 9 12 40 Renewals. Drainage Renewals - 487 478 15% LOS, 85% Renewals. Facility Roads Capital 14 23 15 15% LOS, 85% Renewals. Footpath Renewals 51 197 38 Renewals. Kerb and Channel Development - 46 4 LOS. Level Crossing Devices Upgrades 112 - - 85% LOS, 15% Renewals. Low Cost Low Risk (SPR) 171 1,020 1,448 85% LOS, 15% Renewals. Minor Improvements - 1,292 - 80% LOS, 20% Renewals. Misc. Minor Capital Projects - 105 - 85% Renewals, 15% LOS. Motorist Service and Tourist Info Signs 27 31 22 85% LOS, 15% Renewals. National Park, Park and Ride - - 1,363 Growth. Ohakune Carrot Park and Intersection - - 16 100% LOS. Ohakune Mountain Road Capacity 116 118 - 60% LOS, 40% Renewals. Improvement Pedestrian Safety Improvements 29 264 51 LOS Pavement Rehabilitation - 3,017 2,188 15% LOS, 85% Renewals. Seal Extensions - - 302 Growth. Sealed Road Surfacing - 1,476 1,688 Renewals. Street Flags District - 17 17 Renewals. Town Revitalisation – Land Transport - - 250 Growth. Traffic Services Renewals - 366 239 Renewals. Under Verandah Lighting Renewals 5 5 - Renewals. Unsealed Road Metalling - 1,092 1,054 Renewals. Total 534 12,019 9,550

Note that the figures of some projects are not specifically detailed in the LTP or EAP in a certain year but are planned to be performed over the ten-year period of the LTP.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 29

Capital Projects Carried Forward

Sometimes a capital project that was budgeted for is not undertaken or it is started but not completed, in the financial year for which it was budgeted. If the project is one that Council believes should be completed, it may decide to carry forward the unspent budget to the following financial year.

Carried forward capital projects in this Activity are:

Work in Progress

Opening Closing Project Description WIP WIP Notes $000 $000 B292 Mangateitei Rail Overbridge Renewal 87 91 Work in Progress. Started June (Mangateitei Road) 2016. To be completed in 2020/21. B353 Upokonui Stream Culvert Renewal 21 21 Construction completed in 2020/21. Bus Shelter Renewal 2 2 Construction completed in 2020/21. Footpath Renewals 142 142 Construction completed in 2020/21. Local roads - 972 Construction completed in 2020/21. Motorist Service and Tourist Info Signs 32 32 Construction completed in 2020/21. Pedestrian Safety Improvements 1 1 Construction completed in 2020/21. Town Revitalisation 250 - Construction completed in 2019/20. Transport Park and Ride Project 1,023 1,023 Construction completed in 2020/21. Unsealed Road Metalling - 256 Construction completed in 2020/21. Total 1,558 2,540

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 30

What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Land Transport

The safety of the The change from Reduction Target for Increase Not achieved. land transport the previous of 1. reducing of 2. network is financial year in the the There were three serious and acceptable to users. number of fatalities number of no fatal crashes in 2019/20, and serious injuries serious compared with one in on the local road injuries 2018/19. network, expressed and as a number. fatalities ≥1.

Roads are managed The average quality 85% Target 92% Achieved. to an acceptable of ride on a sealed level of level and the road local road network, smooth Analysis shows that overall network is available measured by travel Vehicle Kilometers Travelled when required *. smooth travel exposure (VKT) is lower in 19/20 exposure (Note 1). ≥87%. compared with previous year. However, there was a 10% increase in VKT numbers travelling on smooth roads in the Rural <1000 vehicle per day category.

The percentage of 6.2% ≥7.5% 5.3% Not achieved. the sealed local 29.9 km out ≥37km out 25.5km out road network that is of 486 km of 486km. of 486km. COVID-19 level 4 lockdown resurfaced. meant we could not achieve the full pavement rehabilitation programme, reducing the achievement by 0.88km. Some of the resealed roads this year were wider than the standard 6m width, which has an impact on target length able to be achieved.

Maintain the sealed Q1 – 7.1 <5.5 Q1 – 3.6 Achieved. roads to a standard Q2 – 4.7 defects/k Q2 – 5.0 that allows <5.5 Q3 – 3.8 m/quarter. Q3 – 4.7 Please note that the audits defects/km/quarter Q4 – 3.2 Q4 – 4.9 were not able to be (Note 2). completed in March and April due to COVID-19 lockdown alert levels, affecting Q2 and Q3.

Maintain the Q1 – 8.3 <5.5 Q1 – 3.7 Achieved. unsealed roads to a Q2 – 5.6 defects/k Q2 – 3.7 standard that Q3 – 3.9 m/quarter. Q3 – 4.9 Please note that the audits allows <5.5 Q4 – 4.1 Q4 – 4.8 were not able to be defects/km/quarter completed in March and April (Note 2). due to COVID-19 lockdown alert levels, affecting Q2 and Q3.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 31

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Land Transport

The percentage of 98.9% in 90% of 99% of Achieved. footpaths within the average or network to footpaths district that fall better be in are in A sustained footpath renewal within the level of condition. average average or programme for the last five service or service 0.4% in condition greater years targeting footpaths in standard for the poor or greater condition; poor or very poor condition condition of condition. and not 1% are in has resulted in this great footpaths that is set more than poor outcome. out in Council’s 5% of condition. Asset Management network in Plan. poor condition.

The percentage of 84% ≥90% 85% Not achieved. customer service requests relating to Achievement of this target roads and will be a focus for the roading footpaths to which team in 2020/21. This target Council responds is a measure of all aspects of within the time the roading team – in house frame specified in staff, contractors and the LTP (Note 3). consultants. We are disappointed that we were

not able to achieve it this year, or the previous year and are looking to improve our systems and result monitoring in the new financial year to improve our customer service performance.

* The road measures are managed to an acceptable level, and the network available when required.

Notes:

1: Smooth travel exposure is reported annually. The two inputs Road Roughness, which is measured two yearly, was last completed in November 2019 by Shaw’s Consulting Services Ltd. Vehicle Kilometres Travelled (VKT) are continually updated during the year.

2: A defect constitutes potholes on sealed roads, unsealed shoulders on sealed roads, corrugations on unsealed roads, damage to bridges, blocked drain holes and culverts, overgrown vegetation, and damaged running boards and traffic signs.

(a) The accuracy of these have not been verified by Council. The information reported on is collected by Council’s Professional Services for Land Transport consultant GHD.

(b) The coverage of the roads network inspected during the year is aimed at 100%. In 2019/20, 78% of the network roads were inspected, due to the lockdown in March and April.

(c) Defects are calculated by the number of defects / number of kilometres audited over the three months in the quarter.

(d) Each road should be inspected at least once a year.

3: The Request for Service targets can be found in the Asset Management Plan.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 32

Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Land Transport Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general 1,668 1,668 1,783 charges, rates penalties Targeted rates 3,892 3,893 3,823 Subsidies and grants for operating purposes 6,172 6,372 6,289 Fees and charges 126 129 312 Internal charges and overheads recovered - - Local authorities fuel tax, fines, infringement 136 139 143 fees, and other receipts Total operating funding (A) 11,994 12,201 12,350

Applications of operating funding Payments to staff and suppliers 9,305 9,493 9,302 Finance costs 646 580 295 Internal charges and overheads applied 290 313 333 Other operating funding applications - - - Total application of operating funding (B) 10,241 10,386 9,930 Surplus/(deficit) of operating funding (A- 1,753 1,815 2,420 B)

Sources of capital funding Subsidies and grants for capital expenditure 7,344 8,657 7,860 Development and financial contributions 16 16 74 Increase/(decrease) in debt 1,168 1,673 179 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 8,528 10,346 8,113

Application of capital funding Capital expenditure: - To meet additional demand 219 - 1,363 - To improve the level of service 2,058 2,545 871 - To replace existing assets 8,004 9,474 8,299 Increase/(decrease) in reserves - 142 Increase/(decrease) of investments - - Total applications of capital funding (D) 10,281 12,161 10,533 Surplus/(deficit) of capital funding (C-D) (1,753) (1,815) (2,420) Funding balance ((A-B)+(C-D)) - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 33

WATER SUPPLY

Introduction The purpose of the Water Supply Activity is to supply safe drinking water to the communities of the district. Water supply is essential to run households, maintain public health and sustain Economic Development. Council is committed to providing a water supply service that meets the needs of the community.

Council is responsible for the provision and management of six water supply schemes at National Park, Ohakune, Ohura, Owhango, Raetihi and Taumarunui.

A total of 211.5km of pipes make up the reticulation network plus 5 pump stations located across the district.

In Waiouru, Council owns and operates the water supply network outside the Army base and purchases the potable water from the New Zealand Defence Force. Council has also managed the water services for Whakapapa Village on behalf of Department of Conservation since 2015 (but does not own the assets).

The water supply network is made up of a mix of assets: . Headworks, surface water sources, intake weirs and pipelines to treatment plants. . Treatment Plant including raw water pumps, clarifier, filters, main pumps and chemical dosing pumps. . Water storage including reservoirs and pipelines. . A pipe network including pipelines, valves, hydrants, water meters, service connections and pump stations.

Outcomes Safe, Healthy Communities: . Excellent standards of safety and welfare are promoted and respected. . Quality regulation, regulatory services and infrastructure. . Core infrastructure endeavors to keep pace with changing demand.

Thriving Natural Environment: . Our environment is accessible, clean and safe and out water, soil and air meet required standards.

Thriving Economy: . Regulatory services and reliable infrastructure help the economy prosper.

Wellbeings Social, Economic, Environmental and Cultural.

Rationale Water supply is perceived by communities to be one of the essential services Council supplies. Council is required by law to assess the need and provision of water services and to retain its water supplies.

It also has a duty to improve, promote and protect public health. Water supplies can be closed or transferred with the agreement of local communities.

Council also has obligations under the Horizons One Plan regarding the way it delivers and manages water.

Significant Negative Effects The provision of water supply services unfortunately results in negative environmental and cultural impacts on waterways.

Council use of waterways has an opportunity cost to others through reducing the amount of water that may be used by others, e.g. commercial or industrial businesses and farms. This may have a detrimental economic impact on those businesses

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 34

Highlights for the Year The Matapuna Water Treatment Plant has achieved, for the first time, Protozoal Compliance for Drinking Water Standards New Zealand. There have been historical issues around water quality compliance and the provision of data by the minute, as is the requirement. This outcome has been a result of upgrades to SCADA monitoring including the installation of a Watchdog RTU that has been able to capture data when there is a loss of SCADA communications (comms) plus in-depth investigations and the provision of additional information to the Ministry of Health for any apparent non-compliance.

Water modelling investigations for Taumarunui drinking water reticulation was completed in October 2019 with a comprehensive report of the findings made available in June 2020.

The decision to approve the resource consent to abstract water from the Makotuku River for Raetihi municipal supply purposes, was granted by Horizons Regional Council on 11 May 2020 with an expiry date of 1 July 2039.

Ministry of Business, Innovation and Employment (MBIE) approved funding for the Ohakune Water Treatment Plant upgrade, reservoir and raw water line. A condition for the funding is for Council to implement a water meter programme for the Ohakune Township within 3 to 5 years.

Ministry of Business, Innovation and Employment (MBIE) approved funding for a feasibility study for the settlement of Pipiriki. The scope of the study was to investigate improving the capacity of the drinking water and wastewater infrastructure. Bore drilling has been completed this year to determine an alternative drinking water source. The report findings are expected to be completed by GHD on 30 September 2020.

Upgrading the access track to the Raetihi Water Treatment Plant was completed this year, improving vehicle access to the plant.

Water loss investigations were completed for Ohakune, Raetihi, Taumarunui and Owhango during this reporting period. Identifying an alternative drinking water supply for the Owhango Township has become a priority.

Site layout plan for Ohakune Water Treatment Plant upgrade (draft concept) designed by Veolia. GHD have been commissioned to project manage this project.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 35

Summary of minimum night flow water loss for Taumarunui and wider area.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 36

Status of Resource Consents for Water Plants as follows:

Expiry Date of Town Consent Status Notes Consent

Ohura 14 November 2021 Current. This consent is due to expire in November 2021.

Taumarunui 20 June 2017 Consent remains active under the New application lodged with Horizons Regional Council 20 March 2017. Resource Management Act. Council is in the process of responding to an s92 request for further information from Horizons (Note 1). Abstraction continues under the old consent until the lodged consent is processed.

Owhango 20 March 2016 Consent remains active under the New application lodged with Horizons Regional Council 18 December 2015. Resource Management Act. The application remains on hold to allow Council to consider catchment water allocation in conjunction with the Taumarunui consent (Note 1). Abstraction continues under the old consent until the lodged consent is processed.

National Park 12 December 2026 Current This consent will not expire until 2026.

Raetihi 1 July 2039 Current This consent will not expire until 2039.

Ohakune 11 September 2025 Current. This consent will not expire until 2025.

Waiouru * 2021 Current. Waiouru are in the process of gathering data for a new consent (Note 2).

*Water for Waiouru Township is procured from the New Zealand Defence Force.

Notes: 1: The Water Supply Scheme continues to operate under the existing consent until the new consent is granted or declined. 2: Water for Waiouru Township is procured by Council from the New Zealand Defence Force.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 37

Capital Projects

Carried AP Actual Forward Project Description 2019/20 2019/20 Notes Budget $000 $000 $000 District wide: Critical spares - 18 - LOS. National Park: - Above ground asset renewals 29 23 47 LOS. - SCADA upgrades - - 11 - Valve & hydrant replacements 15 - - Renewal. - Water hydraulics 36 - - LOS. - Water main renewals - 25 - - Water meters - 34 3 LOS. - WTP upgrade - 500 - Ohakune: - Asset renewals (replacement and - 40 80 Renewal. refurbishment) - SCADA upgrades - - 59 - Water hydraulics 36 - - LOS. - Water mains renewals (includes - 20 30 90% Renewal, 10% Growth. associated valve, hydrant, etc). - Water meters - 45 24 80% LOS, 10% Growth, 10% Renewal. - WTP: Resource consent 26 - - Renewal. - WTP: Stage 1 Carry over works 44 - - Renewal. Ohura: - Above ground asset renewal 29 35 8 Renewal. - Resource consent - 10 - - Water main replacement - 71 - Renewal. - WTP access track reformation 12 - 8 Renewal. Owhango: - Above ground asset renewals - 18 - Renewal. - Backflow prevention 9 - - LOS. - Generator 48 - 41 - Intake resource consent works - - 10 LOS. - Resource consent 50 - Replacement of failed valves and 21 - - Renewal. Hydrants (reactive renewals) - Water main renewals - 25 2 - Water hydraulics 29 25 - LOS. - WTP upgrades 112 - - Raetihi: - Resource consent - 10 15 - SCADA upgrades - - 16 - Water hydraulics - 21 - - Water main replacement - 150 305 Renewal. - WTP access track reformation - - 6 - WTP & reservoir asset renewal - 20 - LOS. Complete. Taumarunui: - Above ground asset renewals 66 465 141 Renewal. - Backflow prevention - 6 - LOS. - Chlorine gas dosing - - 25 LOS. - Fire supply upgrade 50 56 - LOS. - Manunui pump station renewal 100 - - - Manunui reservoir asset renewal 72 20 29 Renewal. - Matapuna health & safety - 12 24 LOS. - Matapuna intake asset renewals 200 - - Renewal. - Matapuna intake resource consent 15 - - LOS. - Ongarue Bridge Water Main Repairs - - 37 - SCADA upgrades - - 59 LOS. - Water hydraulics 35 54 - LOS. - Water main replacement - 167 Renewal. - Water meters 172 269 50 LOS. Waiouru: - Water main replacement 10 10 - Renewal. - Valve & hydrant replacements 4 - 1 Total 1,170 2,199 1,031

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 38

Work in Progress

Opening Closing Project Description WIP WIP Notes $000 $000 National Park: - Valve and hydrant replacements - 2 - Water meters 4 4 Ohakune: - Asset renewals - 13 - Water meters 19 19 - WTP renewal - 264 - WTP resource consent 1 - Ohura: - Asset renewals - 12 - Water main replacements - 9 Owhango: - Fire supply upgrade 1 - - Intake resource consent 40 40 Required work for consent. Raetihi: - Water main replacement 128 - - WTP CCTV installation 2 - Taumarunui: - Hakiaha Street water main - 87 - Hospital hill booster pump renewal - 23 - Intake asset renewal 2 13 - Intake resource consent 115 115 Consent lodged with Horizons R.C. - Manunui booster WPS - 22 - Manunui reservoir asset renewal 22 22 - Water main replacement 1 1 - Water safety plan 8 - Total 343 646

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 39

What We Achieved

2019/20 Level of Service Key Performance 2018/19 2019/20 Commentary Indicators Actual Target Actual

Water Supply

Quality of Drinking Extent to which Ohura =Y Ohura =Y Ohura = Y Achieved. Water - continuity of Council’s drinking Taumarunui =Y Taumarunui =Y Taumarunui = Y potable water supply water supplies to applicable comply with Part 4 Owhango =Y Owhango =Y Owhango = Y community areas. (bacteria National Park National Park National Park = compliance =Y =Y Y criteria) of the Drinking Water Raetihi =Y Raetihi =Y Raetihi = Y Standards*. Ohakune =Y Ohakune =Y Ohakune = Y (* Future increases reflect changing statutory requirements).

Extent to which Ohura =N Ohura =N Ohura = N Not Achieved. Council’s drinking Taumarunui Taumarunui =Y Taumarunui = Y water supplies =N comply with Part 5 Owhango =N Owhango = N Owhango =N (protozoal National Park National Park = compliance National Park =N N criteria) of the =N Drinking Water Raetihi =Y Raetihi = Y Raetihi =Y Standards* . Ohakune =Y Ohakune = N Ohakune =N

Responsiveness. Percentage of real 21% ≤40% all 12% (Note 9). Achieved. water loss from the supplies.

networked reticulation system, using minimum night flow (MNF) analysis** (Note 8).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 40

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Water Supply

Where the Council attends a call-out in response to a fault or unplanned interruption to its networked reticulation system, the following median

response times

are measured:

Attendance for 19 Minutes. Median 27 Minutes. Achieved. urgent callouts: response from the time that times ≤2 the Council hours. receives notification to the time that service personnel reach the site (i.e., loss of water supply) ** (Notes 2, 5 and 6).

Where the Council attends a call-out

in response to a fault or unplanned interruption to its

networked reticulation

system, the following median response times

are measured:

Resolution of 5.6 hours. Medium 5 hours and Achieved. urgent call outs response 36 minutes. from the time the times ≤6 Council receives hours. notification to the time that service personnel confirm resolution of the fault or interruption site (i.e., loss of water supply)** (Notes 2 and 6).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 41

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Water Supply

Where the Council attends a call-out

in response to a fault or unplanned

interruption to its networked reticulation

system, the following median response times are measured:

Attendance to 5.8 hours. Medium 1 hour and Achieved. non-urgent response 12 minutes. callouts from the times ≤36 time that the hours. Council receives notification to the time that service personnel reach the site (i.e., no loss of water supply) ** (Notes 2, 5 and 7).

Where the Council attends a call-out

in response to a fault or unplanned interruption to its

networked reticulation

system, the following median response times

are measured:

Resolution of non- 19 hours. Median 3 hours and Achieved. urgent callouts response 44 minutes. from the time that times ≤72 the Council hours. receives notification to the time that service personnel confirm resolution of the fault or interruption (i.e., no loss of water supply) ** (Notes 2 and 7).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 42

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Water Supply

Public safety Total number of pressures and flow. complaints (Note

4) received by Council about any of the following

(expressed per 1,000 connections (Note 3) to the

network reticulation

systems. The total

number of

complaints for 2019-20 were 117

(71 for 2018-19) this equates to

21.5 per 1,000 connections (13.1

for 2018-19) and is broken down as follows: (a) 1.3 (a) -≤15 (a) 2.0 Not Achieved.

(a) Drinking

water clarity. (b) 1.3 (b) -≤10 (b) 0.2

(b) Taste. (c) 0.9 (c) -≤5 (c) –

(c) Odour. (d) 6.5 (d) -≤25 (d) 11.6

(d) Pressure and

flow. (e) 1.5 (e) -≤5 (e) 7.7

(e) Continuity of supply and (f) 1.7 (f) -≤25 (f) –

(f) Council response times. The average Normal 500 448 Achieved. consumption of demand drinking water per (using Usual day, per resident Resident within the territorial Population) = authority district 637 (litres per person per day).

Peak demand Peak demand ≤300 252 using peak (using Peak

population (litres Population) =

per person per 252

day).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 43

Notes:

1: Mandatory Non‐Financial Performance Measures, against which all water infrastructure in New Zealand are measured, were introduced by the Department of Internal Affairs in 2014.

2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these have not been verified by Council, however, audits and GPS checks are conducted upon job completion.

3: The number of connections is calculated from the number of customers charged in their rates for use of Council water services (calculated at 5,446 at 1 July 2019).

4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence. However, for afterhours complaints received from the Palmerton North call centre, only the first complaint about an incident was recorded.

5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.

6: An urgent call-out is one that leads to a complete loss of supply of drinking water due to a fault or unplanned interruption.

7: A non-urgent call-out is one where there is still a supply of drinking water.

8: Real water loss refers to volumes lost through leaks, bursts or overflows on mains, service reservoirs and services connections, up to the point of the customer meter.

9: This figure is for Taumarunui urban area only. There is a huge variance across the wider area of Taumarunui. 95% night flow water loss for SH4 Piriaka indicating high leakage or high unmetered consumption during the night (e.g.: for irrigation purposes) and 41% night flow water loss for Mahoe Settlement.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 44

Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Water Supply Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general - - - charges, rates penalties Targeted rates 3,183 3,423 3,421 Subsidies and grants for operating purposes - - 177 Fees and charges 288 293 170 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 3,471 3,716 3,768

Applications of operating funding Payments to staff and suppliers 1,858 2,048 2,504 Finance costs 266 240 122 Internal charges and overheads applied 217 196 209 Other operating funding applications - - - Total application of operating funding (B) 2,341 2,484 2,835 Surplus/(deficit) of operating funding (A- 1,130 1,232 933 B)

Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions 16 16 6 Increase/(decrease) in debt 883 1,146 311 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 899 1,162 317

Application of capital funding Capital expenditure: - To meet additional demand 5 9 29 - To improve the level of service 824 1,115 289 - To replace existing assets 1,043 1,075 1008 Increase/(decrease) in reserves 157 195 (76) Increase/(decrease) of investments - - - Total applications of capital funding (D) 2,029 2,394 1,250 Surplus/(deficit) of capital funding (C-D) (1,130) (1,232) (933) Funding balance ((A-B)+(C-D)) - - -

Operating funding figures have been changed to reflect targeted rates for water correctly. The net amount has not changed.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 45

WASTEWATER (SEWERAGE)

Introduction The purpose of the Wastewater Activity is to collect and dispose of wastewater in an effective and environmentally friendly manner. This activity is essential in order to protect the environment and to maintain public health.

Council owns treatment plants at Taumarunui, National Park Village, Ohakune, Pipiriki, Raetihi and Rangataua. In addition, Council co-operates with the New Zealand Army in Waiouru to provide wastewater services for the town.

Council’s wastewater assets consist of: . 6 wastewater treatment plants. . 126.1km of pipes. . 17 pump stations. . 1,627 manholes. . 4,784 rateable service connections.

Outcomes Safe, Healthy Communities . Quality regulation, regulatory services and infrastructure. . Core infrastructure endeavours to keep pace with changing demand.

Thriving Natural Environment: . Our environment is accessible, clean and safe and our water, soil and air meet required standards.

Thriving Economy: . Regulatory services and reliable infrastructure help the economy prosper.

Wellbeings Social, Economic, Environmental and Cultural.

Rationale Council is required to assess water and other sanitary services available to the community, including stormwater drainage, and has a duty under Section 23 of the Health Act 1956 to improve, promote and protect public health.

As well as the legal mandate, this service contributes to several of Council’s Community Outcomes.

Significant Negative Effects The collection, treatment and discharge of wastewater has a negative effect on the environment through the final disposal of treated wastewater.

Untreated or partially treated wastewater contains pathogens and nutrients that can be harmful to humans and the environment. Wastewater may accumulate on the ground, percolate into groundwater or flow into nearby waterways. This poses public health risks and can damage terrestrial and aquatic environments.

Wastewater discharges may also contribute to pollution issues experienced downstream of treatment facilities. Horizons One Plan’s new targets for wastewater treatment will require significant investment by Council.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 46

Highlights for the Year Funding was approved by the Ministry of Business, Innovation and Employment (MBIE) for a feasibility study to investigate combining the Ohakune and Raetihi Wastewater Treatment Plants. GHD have been undertaking these investigations and a final report of the findings is expected by 30 September 2020.

A joint site visit to the Hikumutu WWTP with Veolia and Horizons Regional Council’s compliance team to discuss and confirm the site for water quality and periphyton sampling as per the resource consent conditions and to discuss the risks associated with non-compliance due to the effects of the Ongarue River confluence.

The annual servicing of all wastewater pump stations was started in Taumarunui which includes the replacement of parts. There were no major issues identified.

The access track to the Ohakune WWTP received an upgrade with the removal of a unsafe bridge crossing over the inlet flume and the track access now goes right around the main pond. The Ohakune septage pump station has been out of service since February 2020. In May 2020, new stators on both pumps were installed, tested and confirmed to pump down the well at 3.2 amps each.

A new effluent flow meter was installed for the Raetihi WWTP.

The irrigation pump station pumps in Pipiriki were serviced. The main wet well pumps were installed in June 2020.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 47

The status of Resource Consents for Wastewater Plants is as follows:

Town Expiry Date of Consent Notes

Taumarunui 1 July 2023 Horizons Regional Council (HRC) and Council to sort a lawyer’s opinion on the status of the consent. This consent is operative.

National Park 17 November 2015 Application lodged with HRC 17 August 2015. This consent has been on hold with HRC as final attempts to obtain iwi formal sign off. In this time there has been a variation to seek load conditions rather than maximum volumes (Note 1).

Raetihi 17 November 2015 Application lodged with HRC 17 August 2015. (Note 2). Ohakune 17 November 2015 Application lodged with HRC 17 August 2015. (Note 2). Pipiriki 1 July 2035 Current.

Waiouru* 1 July 2029 Current (New Zealand Defence Force). (Note 3).

Rangataua December 2005 Application lodged with HRC 30 June 2014. Council has responded to an s92 request for further information from HRC. In addition iwi consultation has been taken further in assessing this system against their goals of “land passage” treatment as expressed in Ohakune and Raetihi resource consents (Note 1).

Notes: 1: The Wastewater Plant continues to operate under the existing consent until the new consent is granted. 2: Pending outcome of MBIE funded feasibility study to combine Ohakune and Raetihi Wastewater Treatment Plant. 3: Wastewater disposal for Waiouru Township is procured by RDC from the New Zealand Defence Force.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 48

Capital Projects

Carried AP Actual Project Description Forward Notes 2019/20 2019/20 Budget $000 $000 $000 District wide projects 97 110 - District wide renewals - 10 - National Park: - I & I reduction/main refurbishment 15 - - - WWTP wave band repair 20 - - - WWTP upgrade 586 3 - Ohakune: - Access track upgrade - - 4 - I & I reduction 178 - - - Hydraulic Modelling 100 - - - WWTP resource consent 24 - - WWTP upgrade 173 - - Raetihi: - Asset renewals - - 27 - Hydraulic Modelling 70 - - - Main relining 93 - 19 Rangataua: - Facilities plant upgrade 5 - - - Main refurbishment - 29 - Taumarunui: - Above ground asset renewal - 8 16 - Bullians Ave WWPS Health & Safety 11 - - - Hikamutu WWTP desluding - 300 - - Huia St WWPS asset renewal - 45 - - Main refurbishment 11 220 29 - Sunshine Rd WWPS asset renewal - - 13 - Victory bridge WWPS renewals 193 - - - Network condition assessment 18 67 - - WWTP asset renewal 8 - - Total 1,602 792 108

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 49

Work in Progress

Opening Closing Project Description WIP WIP Notes $000 $000 District Wide: - SCADA upgrade 60 3 - Strategic design works 13 15 National Park: - Asset renewals - 1 - Headworks & treatment resource 25 - consent - Resource consents 129 154 - WWTP upgrade preliminary work 21 - Ohakune: - Asset renewals - 24 - Headworks & treatment resource 17 17 consent - I&I reduction 6 10 - Resource consents 134 144 Pipiriki: - Asset renewals - 19 Raetihi: - Asset renewals - 2 - Resource consent 98 98 Lodged with Horizons RC. LOS. - Wastewater relining – stage 2 27 - Rangataua: - Resource Consent 44 44 Lodged with Horizons RC. LOS. Taumarunui: - CCTV inspections 38 47 - Gold Road WWPS building alterations 4 - - Hikumutu WWTP asset renewal 2 16 - Hikumutu sewerage resource consent 75 75 Lodged with Horizons RC. LOS. - Huia St WWPS asset renewal 1 5 - Waste water main renewals - 31 - Victory Bridge WWPS asset renewal - 6 Total 703 711

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 50

What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Wastewater

Environmental Number of dry weather 0.84 ≤7 1.90 Achieved. sustainability. wastewater overflows from Council’s system, Increase of (expressed per 1,000 number of dry connections (Note 3) weather to that system). overflows this year. Compliance with - ≤2 - Achieved. Council’s resource consents for No Abatement discharges from the Notices have wastewater system as been received measured by number over the year. of Abatement Notices.

Compliance with - ≤2 - Achieved. Council’s resource consents for No discharges from the Infringement wastewater system as Notices have measured by number been received of Infringement over the year. Notices received.

Compliance with - ≤1 - Achieved. Council’s resource consents for No discharges from the Enforcement wastewater system as Orders have measured by number been received of Enforcement Orders over the year. received.

Compliance with - - - Achieved. Council’s resource consents for Council has no discharges from the Convictions wastewater system as related to measured by number Resource of Convictions Consents over received by Council in the year. relation to those resource consents.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 51

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Wastewater

Responsiveness to Where Council attends infrastructure to wastewater issues. (sewerage) overflows resulting from a blockage or other fault in the Council wastewater system, the following median response times measured:

Attendance time: From 0.2 Median 0.58 Achieved. the time that Council response receives notification to times Attendance the time that service ≤2 hours for a time has personnel reach the blockage or improved for site; and ** (Note 2 and fault. wastewater 5). callouts.

Where Council attends to wastewater (sewerage) overflows resulting from a blockage or other fault in the Council wastewater system, the following median response times measured:

Resolution time: From 2.3 Median 3.07 Achieved. the time that the response Council receives times ≤6 Resolution notification to the time hours for a times have that service personnel blockage or improved for confirm resolution of fault. wastewater the blockage or other callouts. fault** (Note 2 and 5).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 52

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Wastewater

Public safety Where Council attends continuity of to wastewater wastewater (sewerage) overflows collection system. resulting from a blockage or other fault in the Council wastewater system, the following median response times measured:

Total number of complaints (Note 4) received by Council about any of the following (expressed as per 1,000 connections (Note 3) to the territorial authority’s wastewater system. The total number of complaints for 2019-20 were 20 (23 for 2018-19) this equates to 4.22 per 1,000 connections (4.87 for 2018-19) and is broken down as follows:

(a) Wastewater (a) 0.64 (a) ≤15 (a) 0.63 Achieved. odour.

(b) Wastewater (b) 1.48 (b) ≤5 (b) 0.84 system faults.

(c) Wastewater (c) 3.18 (c) ≤25 (c) 2.74 system blockages.

(d) The Council’s response to issues (d) 0.00 (d) ≤25 (d) 0.00 with its wastewater system.

Notes:

1: There are now mandatory Non‐Financial Performance Measures against which all wastewater infrastructure in New Zealand are measured. This is the third year these KPIs have been measured.

2: The times shown for “attendance” and “resolution” are reported by the service provider, Veolia as part of their contracted responsibilities. This includes travel time. The accuracy of these has not been verified by Council.

3: The number of connections is calculated from the number of customers charged in their rates for use of Council wastewater services (calculated at 4,740 as at 1 July 2019).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 53

4: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence. However, for afterhours complaints received from the Palmerton North call centre, only the first complaint about an incident was recorded.

5: The median time presented is based on calls that have been raised directly with Council and not Council’s contractor Veolia.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 54

Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Wastewater Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general 22 22 - charges, rates penalties Targeted rates 2,219 2,395 2,412 Subsidies and grants for operating purposes - - 80 Fees and charges 91 93 101 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 2,332 2,510 2,616

Applications of operating funding Payments to staff and suppliers 1,238 1,369 1,288 Finance costs 105 82 42 Internal charges and overheads applied 181 235 251 Other operating funding applications - - - Total application of operating funding (B) 1,524 1,686 1,581 Surplus/(deficit) of operating funding (A-B) 808 824 1,035

Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions 32 32 14 Increase/(decrease) in debt 768 309 - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 800 341 14

Application of capital funding Capital expenditure: - To meet additional demand 92 56 - - To improve the level of service 743 178 1 - To replace existing assets 249 557 115 Increase/(decrease) in reserves 524 374 933 Increase/(decrease) of investments - - - Total applications of capital funding (D) 1,608 1,165 1,049 Surplus/(deficit) of capital funding (C-D) (808) (824) (1,035) Funding balance ((A-B)+(C-D)) - - -

The wastewater users of National Park are currently repaying the general ratepayer for an historical subsidy by the District. This shows as increased Targeted Rates and negative General Rates in this Funding Impact Statement.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 55

STORMWATER AND FLOOD PROTECTION

Introduction Efficient and effective stormwater and flood protection infrastructure is a key element in the sustainable and healthy development of a community. A developed network of pipes, culverts to drains and watercourses provides a safe and efficient means of collecting and conducting stormwater through townships.

Stormwater is rainwater is rainwater that runs over the ground on its way to a natural watercourse. When rain falls on buildings, carparks, roads, driveways and gardens, but does not soak into the ground, it will pond or follow a natural flow path downhill until it reaches a watercourse or is collected by a pipe system.

Where there is development, runoff from properties and roads flows entering stormwater systems. The greater the level development in a catchment, the greater the level of impermeable surfaces, e.g., roofs, driveways and paths which results in a greater conversion of rainfall into runoff. If this runoff is not managed, it was cause flooding. Generally, stormwater is directed into channels on roadways or into drains, then into streams and rivers.

The stormwater network reticulation comprises of 66.5km of stormwater pipes, 263.3km of stormwater mains plus approximately 645 manholes across the district plus open drains, associated culverts and sumps.

Outcomes Safe, Healthy Communities: . Quality regulation, regulatory services and infrastructure. . Core infrastructure endeavours to keep pace with changing demand. . Excellent standards of safety and welfare are promoted and respected . Preparation, planning and timely responses protect people and property from natural hazards.

Thriving Natural Environment: . Our environment is accessible, clean and safe and our water, soil and air meet required standards.

Thriving Economy: . Regulatory services and reliable infrastructure help the economy prosper.

Wellbeings Social, Economic, Environmental and Cultural.

Rational Under the Local Government Act, Council is required to assess water and other sanitary services available to the community, including stormwater drainage.

As well as the legal mandate to provide this service, Council aims to: . Provide efficient and safe stormwater collection and disposal and flood protection in an effective and environmentally acceptable manner.

. Plan for resilience to flooding and safeguard the lives and property of communities during flood events.

. Develop a stormwater treatment system which reduces degradation and contamination to the receiving environment.

Significant Negative Effects The stormwater and flood protection runoff naturally contains debris and chemicals that are present in the catchment area. Due to the presence of these chemicals and other debris, the disposal of stormwater and flooding into natural watercourses may have negative effects on the quality of the receiving aquatic environment. Stormwater and flooding runoff is monitored by Horizons Regional Council for water quality and other effects. Council maintains its stormwater and flood protection system to reduce the level of flooding within the District. Council will undertake a public awareness campaign including labelling of drains.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 56

Highlights for the Year Significant work was completed on maintenance of the stormwater network, with clearing of sumps and drains in the southern part of the district.

Work was completed cleaning out of open stormwater drains in Taumarunui. Works to redesign and improve the functioning of the Tuku Street drain were underway this year in partnership with Horizons Regional Council who completed investigations on this historical and significant issue for this residential area.

Totara Crescent, Taumarunui – Tuku Street Stormwater Totara Crescent, Taumarunui – Tuku Street Stormwater drain. After cleaning. drain. After cleaning.

A stormwater upgrade for a residential street in Taumarunui was completed, as a direct response from complaints from neighbours that children were playing in the pool of stormwater that formed after heavy rain in a public reserve.

Council’s Stormwater Neutrality Policy 2019 has seen a need to change how we work across the internal teams within Council to be more effective and efficient in providing timely, relevant information to our customers and ratepayers. There has been a growing need to provide information to the general public about definitions for Council managed stormwater drains versus naturally created streams and watercourses. This year has resulted in contractors actively adhering to a regular stormwater maintenance schedule which includes cleaning out blocked sumps that would otherwise impede the effectiveness of the stormwater reticulation.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 57

Capital Projects

Carried AP Actual Project Description Forward Notes 2019/20 2019/20 Budget $000 $000 $000 District wide projects - 6 - 62% Renewal, 38% LOS. National Park: - asset data 19 50 - - drainage around WWTP - 5 - - mains replacement 15 10 - Renewal. Ohakune: - channel B flood control - 95 - LOS. - condition assessments 2 - - - mains rehabilitation / replacement 104 - - Renewal. Ohura: - condition assessments 9 - - - mains rehabilitation / replacement - 6 - Renewal. Owhango: - main replacement 4 4 - Renewal. - open channel drain reformation 7 - - Renewal. Raetihi: - mains rehabilitation / replacement 6 1 - Renewal. Rangataua: - open channel drain reformation 3 - - Renewal. Raurimu: - asset data 1 1 - - open channel drain reformation 2 - - Renewal. Taumarunui: - condition assessment 31 8 - LOS - main replacement 118 - - Renewal. - New Road safety improvements - - 1 - open channel drain reformation 21 - - Renewal. - Pungapunga Stream stopbanks - - Renewal. - Tuku Street flood management 87 - - LOS Waiouru: - asset data 26 - - - main replacement 50 81 - Renewal Total 505 267 1

Work in Progress

Opening Closing Project Description WIP WIP Notes $000 $000 Ohakune condition assessment 21 22 Ohakune main replacement 11 11 Ohura flood warning system 18 18 Turaki and Maata Streets flood control 19 19 Taumarunui drain reformation - 6 Taumarunui Fanthorpe Gate renewal - 14 Taumarunui main replacements - 6 Taumarunui Short St catchment - 18 Taumarunui survey networks – CCTV 47 40 Taumarunui stopbank infrastructure 17 17 resource consent Total 133 171

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 58

What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Stormwater

Capacity/degree of The number of - ≤3 - Achieved. protection. flooding events that occur in a territorial No flooding events this authority district year. (Note 3). For each event, number of habitable floors affected (Note 4) (per 1,000 properties connected (Note 2) to system).

Environmental Compliance with - ≤2 - Achieved. impacts are Council’s resource managed and consents for No Abatement Notices resource consents discharges from the received by Council. complied with. stormwater system as measured by the number of Abatement Notices.

Compliance with - ≤1 - Achieved. resource consents for discharges from No Infringement Notices the stormwater received by Council. system as measured by the number of Infringement Notices received.

Compliance with - ≤1 - Achieved. resource consents for discharges from No Enforcement Orders the stormwater against the Council. system as measured by the number of Enforcement Orders.

Compliance with - - - Achieved. resource consents for discharges from No prosecutions for the stormwater resource consents. system as measured by the number of successful prosecutions received by Council in relation to those resource consents.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 59

Key Performance 2017/18 2017/18 2018/19 Level of Service Commentary Indicators Actual Target Actual

Stormwater

Responsiveness of The median - ≤2 hours - Achieved. service. response time to attend a flooding There have been no event (note 4), flood events reported measured from the 2019/20. time that Council receives notification to the time that service personnel reach the site**.

The number of 5.2 ≤15 3.8 Achieved. complaints (Note 5) received by Council Figures used for about the insufficient capacity and performance of its chokes/blockages stormwater system, combined for 2019/20. (expressed as per 1,000 properties connected to Council’s stormwater system).

Notes:

1: Mandatory Non‐Financial Performance Measures, against which all stormwater and flood protection in New Zealand are measured, were introduced by the Department of Internal Affairs in 2014.

2: The number of connections is calculated from the number of customers charged in their rates for use of Council stormwater services (calculated at 5,407 as at 23 June 2020).

3: A flooding event means an overflow of stormwater from a Council stormwater system that enters a habitable floor.

4: A habitable floor refers to a floor of a building (including a basement) but does not include ancillary structures such as stand-alone garden sheds or garages.

5: There are occasions where there is more than one complaint per event. In such a situation, each complaint is counted separately, not each event or occurrence. However, for afterhours complaints received from the Palmerton North call centre, only the first complaint about an incident was recorded.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 60

Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Stormwater Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general 435 447 457 charges, rates penalties Targeted rates 435 447 444 Subsidies and grants for operating purposes - - - Fees and charges 4 4 9 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 874 898 910

Applications of operating funding Payments to staff and suppliers 393 408 443 Finance costs 28 27 14 Internal charges and overheads applied 109 118 125 Other operating funding applications - - - Total application of operating funding (B) 530 553 582 Surplus/(deficit) of operating funding (A-B) 344 345 328

Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - 11 Increase/(decrease) in debt 40 140 - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 40 140 11

Application of capital funding Capital expenditure: - To meet additional demand - 15 - - To improve the level of service 62 147 11 - To replace existing assets 102 104 28 Increase/(decrease) in reserves 220 219 300 Increase/(decrease) of investments - - - Total applications of capital funding (D) 384 485 339 Surplus/(deficit) of capital funding (C-D) (344) (345) (328) Funding balance ((A-B)+(C-D)) - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 61

SOLID WASTE

Introduction The Waste Management and Minimisation Activity manages the collection and disposal of rubbish and recycling in the District. The assets for this activity include the district landfill in Taumarunui, seven transfer stations and seven decommissioned (closed) landfills.

Since 2015, the proportion of waste to be recycled in the District has declined and consequently the volume of refuse landfill within the Ruapehu District has increased. Over the last three financial years, we have sent an average of 3,344 tonnes of waste to the landfill. This presents a significant challenge to the community as the resource consent for the Taumarunui landfill expires in October 2020 and alternatives for waste disposal must be identified. Any alternative will be expensive; therefore, the community must show a greater commitment to generating and disposing of waste as efficiently as possible. This will include increased recycling and dealing with food waste by a means other than sending it to the landfill (e.g. composting).

Outcomes Safe, Healthy Communities: . Excellent standards of safety and welfare are promoted and respected. . Core infrastructure endeavours to keep pace with changing demand. . Reduce the volume of waste to the landfill.

Thriving Natural Environment: . Our environment is accessible, clean and safe and our water, soil and air meet the required standards.

Wellbeings Social, Economic and Environmental.

Rational There are two pieces of legislation that require councils to provide this service to their communities:

. The Health Act 1956 requires Council to provide this activity to ensure that the public suffers no adverse effects due to the accumulation of refuse (both legal and illegal).

. The Waste Minimisation Act 2008 requires councils to promote effective and efficient waste management.

Significant Negative Effects The Waste Management and Minimisation activity collects rubbish from around the District and deposits it at the District Landfill. The accumulation of waste in one area concentrates the effects that this refuse may have on its immediate environment. This includes negative effects such as water contamination, odour and vermin nuisances.

In addition, landfill waste can result in significant environmental effects on the immediate area.

Ruapehu District Council must abide by resource consent conditions to ensure responsible management of the negative environmental effects of the landfill.

The disposal of waste to landfill has a significant cost associated with it. This cost is likely to increase with the closing of the district landfill in October 2020.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 62

Highlights for the Year Within the 2018 Waste Minimisation Management plan Ruapehu District Council commits to the vision of “Zero Waste by 2040” and also sets goals of implementing a food waste collection in the coming years, greater engagement and involvement of the community with Waste Minimisation activities and a decision on the future of the Taumarunui Landfill.

In 2019/20 a new contract has been negotiated with EnviroWaste for provision of our transfer station operation and kerbside services including a new food waste collection service effective 5th October. Ethical Waste Ltd a small local run organisation has been given the operation of Waimarino Transfer Station to use as a resource recovery centre and this has seen a great initial success despite the COVID-19 pandemic occurring shortly after they took over. This can partially be attributed to the guidance of their partners Global Action Plan but also to the resourcefulness of the staff on site and within Council.

These achievements are in line with our WMMP and our vision.

Capital Projects

Carried AP Actual Forward Project Description 2019/20 2019/20 Notes Budget $000 $000 $000 District wide community initiatives - 1 - LOS District signage - 3 - 80% renewal, 20% growth District container painting - 5 - Renewal National Park road improvement - 6 - 90% LOS, 10% growth National Park site development - - - 60% growth, 40% LOS Recycling facilities at transfer - 6 - 50% LOS, 50% growth stations Sorting facility 210 25 - 60% growth, 40% LOS Taumarunui bins 45 31 - 50% growth, 25% LOS, 25% renewal Taumarunui road improvement - 10 - 90% LOS, 10% growth Waimarino bins 11 20 23 50% growth, 25% LOS, 25%, growth Waimarino road development - 10 - 50% growth, 40% LOS, 10% renewal Waimarino site development 10 10 - 50% growth, 50% LOS Total 276 127 23

Work in Progress

Opening Closing Project Description WIP WIP Notes $000 $000 Taumarunui landfill closure - 13 Total - 13

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 63

What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Waste Management and Minimisation

The community is The portion of waste +0.36% +0.5% -4.1% Not achieved. provided with recycled increases Overall. opportunities to by 0.5% each year COVID-19 Lockdown recycle. (Note 1). resulted in a month of non-recycling which threw us off our target we were on track to meet, this was a country wide phenomenon.

Waste minimisation is A comprehensive - - - To be conducted in 2021. encouraged. waste audit is conducted every LTP cycle to inform any change to the Waste Minimisation Management Plan (2018, 2021 and 2024).

Waste hierarchy Waste Minimisation - 4 13 Achieved. (reduce, reuse, initiatives promoted redirect and refuse district wide through - Boomerang Bags, promoted throughout multimedia - Cloth Nappy packs, the community. communications - Beeswax Wraps, (Note 2). - DIY Wormfarms, - Cropswap, - Fruit Tree Pruning, - Love Food Hate Waste cooking workshops, - Food Storage talks, - No Sew Bags, - Recycle Right/Waste Minimisation talks, - Home Composting Workshops, - Public information Stalls at events and gatherings, - Sustainable Sewing.

Two industry 4 2 2 Achieved. stewardship schemes promoted Agrecovery and annually. E-Waste Recycling.

Legislative Annual resource 2 <2 - Achieved. compliance is consent breaches. achieved.

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Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Waste Management and Minimisation

Waste education in Percentage of 100% 75% 75% Achieved. schools. schools visited annually that participate in Waste Minimisation education programme.

Community is Percentage of 77.54% 75% 80.45% Achieved. satisfied with the community satisfied (Note 3). overall level of with the overall 72.67% in one Customer service for Waste LoS. Services Survey average Management and and 88.24% in the NRB Minimisation. Survey, averaged as the numbers had such a large variance.

Number of requests 84 <52 27 Achieved. for service that indicate poor Excluding “WMO to service provision is investigate RFS” as these less than 52 per are not an indicator of year (approx. 1 per poor service. week) (Note 4).

Notes:

1: Future targets increased to reflect desired response to waste minimisation promotions to multimedia communications.

2: Future targets increased to reflect ability to use Facebook and website video links in addition to tradition methods of communication.

3: Future targets changed to reflect actual performance.

4: Future targets decreased to match desire to provide excellent level of service by principal and contractor.

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Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Waste Management and Minimisation Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general 449 365 373 charges, rates penalties Targeted rates 770 682 705 Subsidies and grants for operating purposes - - - Fees and charges 696 731 761 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement - - - fees, and other receipts Total operating funding (A) 1,915 1,778 1,839

Applications of operating funding Payments to staff and suppliers 1,548 1,669 1,941 Finance costs 19 11 11 Internal charges and overheads applied 326 78 84 Other operating funding applications - - - Total application of operating funding (B) 1,893 1,758 2,036 Surplus/(deficit) of operating funding (A-B) 22 20 (197)

Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt 375 106 233 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 375 106 233

Application of capital funding Capital expenditure: - To meet additional demand 185 56 - - To improve the level of service 185 49 13 - To replace existing assets 27 21 23 Increase/(decrease) in reserves - - - Increase/(decrease) of investments - - - Total applications of capital funding (D) 397 126 36 Surplus/(deficit) of capital funding (C-D) (22) (20) 197 Funding balance ((A-B)+(C-D)) - - -

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RECREATION AND COMMUNITY FACILITIES & COMMUNITY PROPERTY

Introduction This activity provides a range of recreational facilities and properties within each community that is readily accessible and enjoyed by the community. Council regards this activity as an essential service for the public good.

The total value of Recreation and Community Facilities portfolio is currently estimated to be $11.6 million. It includes parks, reserves, playgrounds, walkways, swimming pools, community halls, public toilets and cemeteries.

The total value of the Community Property portfolio is currently estimated to be $17.3 million. It includes the Council administration and library buildings, social housing and others.

Parks and Reserves The Reserves Act 1977 provides the mandate and guidelines for the management of Council Reserves, most of which have been vested in Council by the Crown.

The purpose of Parks and Reserves assets is to: . Provide space for people to pursue active and passive recreational activities for their social, spiritual, mental and physical wellbeing.

. Provide the landscape setting for towns.

. Ensure the protection and maintenance of history (ecological and human) and character of the area.

. Ensure that environments essential to the existence of plant and animal species (including humans) are maintained.

. Protect public access to significant landscape features and recreation areas.

Areas covered by the Parks and Reserves Activity include parks, reserves, playgrounds, camping grounds Taumarunui, Raetihi and Ohakune Holiday Parks), walkways, miscellaneous structures (for example, the Taumarunui Grandstand).

Swimming Pools Council maintains and operates three public swimming pools located in the three main townships; Taumarunui, Ohakune and Raetihi.

Public swimming pools provide highly valued swimming facilities for the people of the District. The three swimming pool complexes owned by Council are considered to be significant assets.

During the summer of 2016/17 the Taumarunui public pool had to be closed because of a significant leak. The cause of the leak was difficult to determine and given that the pool was nearing the end of its useful life (it was built in 1960) Council considered closing it permanently and repurposing the site. During public consultation in 2017 the Taumarunui community was almost unanimous in its opinion that Council should retain and repair the pool. As a result, Council has budgeted $400,000 for the installation of a fibreglass liner to resolve the leak and an upgrade to the pump and filtration system for the pool.

Community Halls There are 15 halls that are managed by Council or that have been vested to Council ownership. These range from large facilities such as the Taumarunui Memorial Hall to smaller, local, community-managed halls such as the Rangataua Hall.

Council’s Community Halls provide and maintain suitable and appropriate public venues throughout the District for local social, recreational, cultural, or educational purposes.

The Taumarunui War Memorial Hall is earthquake prone and booking numbers are very low. The future of the hall was therefore an issue that Council took to the community during consultation for the LTP 2018-28.

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As a result, Council decided that the Memorial Hall would be replaced with a multi-function facility, however a lot more community engagement will need to take place before any action is taken. Council has a small budget for the upkeep of the community-managed halls. This is set up as an annually contestable grant fund.

Public Toilets The provision of public toilet facilities for residents and visitors is an important activity for Council, particularly in relation to public health and safety.

The increasing tourist numbers to the District in recent years has created the need for more public toilet facilities. In 2017 Council received total grant funding of $622,500 from the Ministry of Business, Innovation and Employment to assist in building five public toilets in the high-demand areas of Tangiwai, Ohakune, Raetihi, Owhango and Ohura. These toilets were completed early in 2018. Council funds the ongoing cost of cleaning, maintenance and depreciation.

Cemeteries This service provides enquiry and burial services and burial administration and records for Council cemeteries. Council owns and maintains nine cemeteries in Manunui, Matiere, Ohakune, Ohura, Owhango, Raetihi, Rangataua, Raurimu and Taumarunui. Council also owns the closed cemetery at Tatu (not maintained). In the near future Council intends to investigate the provision of space for natural burials within the larger cemeteries. Council has set aside $30,000 for the development of a new cemetery in Raetihi, as the current cemetery is running out of space for burials.

Social Housing Council owns a total of 81 individual social housing units constructed on six separate sites across the District; Raetihi – 16 units, Ohakune – 8 units, Taumarunui – 57 units (on four different sites). A full review of the Council’s delivery of social housing will be undertaken in this three year period.

Administration Buildings and Libraries Each of the three administration buildings (Taumarunui, Raetihi and Ohakune) house a library, a Council Chamber and staff offices. Council’s provision of libraries sits under both Property activity (the buildings) and the Community Support activity (the service, incl. books, computers, children’s holiday programmes etc.).

Other Properties Council also owns the Taumarunui Aerodrome, Ohakune Railway Station, the former Taumarunui Saleyards and a number of other properties, such as forestry plantations and the former library building in Ohakune. For detailed information on these properties, please see the Community Property Asset Management Plan.

Outcomes Safe, Healthy Communities: - Excellent standards of safety and welfare are promoted and respected.

Vibrant and Diverse Living: - Activities, facilities and opportunities for youth are provided and supported. - Excellence in achievement in sport, arts/cultural pursuits, community service and businesses is supported.

Strong Leadership and Advocacy: . Council is proactive, transparent and accountable.

Wellbeings Social, Economic, Environmental and Cultural.

Rationale Under the Local Government Act, Council is required to “meet the current and future needs of communities for good-quality local infrastructure and local public services in a way that is most cost-effective for households and businesses”. In performing its role, Council must “have particular regard to the contribution that core services make to its communities (including) libraries, reserves, and other recreational facilities and community amenities.

Significant Negative Effects There are no significant effects on the community associated with the provision of the Recreation and Community Facilities or Community Property activities.

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Highlights for the Year

Cemeteries . Silver birch trees at Taumarunui New Cemetery crown lifted and mulched. . Ohakune cemetery extended with two new berms and fencing installed. . New berm installed at Raetihi Cemetery. . New berm installed at Manunui Cemetery. . Southern end of Raetihi Cemetery re-fenced by Raetihi Promotions using Council funds. . Owhango Cemetery carpark widened and fence and gate entrance to the cemetery realigned.

Crown lifted Silver Birch trees at Taumarunui New New berm at Raetihi Cemetery. Cemetery.

Widened carpark at Owhango Cemetery. New berm at Manunui Cemetery.

New fence at the south end of Raetihi Cemetery.

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Community Buildings and Property . Hallways at Huia Street Administration Building in Taumarunui repainted. . Seven decorative LED lights installed on exterior panels at Ohakune i-Site. . Rear garden at Ohakune i-SITE renovated and adjacent cobbles and paths steam cleaned.

LED lights applied to exterior panels at New planting at Ohakune i-SITE. Ohakune i-SITE.

Social Housing . Four unoccupied bedsits at Rangimarie Flats and a one bedroom flat at Rochfort Flats in Taumarunui were upgraded with interior paintwork undertaken, new carpet, vinyl, oven and heat pump installed to enable bedsits to be tenanted. . Flat redecorations as required. . Security doors fitted at 6 Rangimarie Flats, Taumarunui. . Heat pumps installed in two flats in Rangimarie Flats, Taumarunui.

Unoccupied Flats at Rangimarie, Taumarunui upgraded.

Flat redecorations as required.

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Parks and Reserves . Fanthorpe Gate Entrance painted. . Fanthorpe Gate ramp and fencing completed. . Tree work completed throughout the District. . Raetihi’s Makotuku Accessible Walkway extended. . Roadside fencing installed at North end of Makotuku Walkway by Raetihi Promotions Inc. using Council funding. . Manson’s Gardens in Taumarunui replanted. . Four new side by side recycling bins, purchased through funding received from Love New Zealand, installed in Taumarunui (2) and Raetihi (2). . 11 Big Belly solar compacting rubbish bins installed in Taumarunui (2), National Park (2), Owhango (1), Tangiwai (1), Waiouru (1) and Ohakune (4). . New picnic table installed at Owhango by Owhango Residents and Ratepayers Association using Council funds. . Concrete paths laid alongside KCE Jubilee Grandstand in Taumarunui providing safe entry to the Grandstand for the elderly and for those with pushchairs. . Lights installed at Northern Entrance landing in Taumarunui. . Boxing replaced and new softfall material applied to Bullians Avenue playground. . New fence erected by lessee using Council funded materials along Pungapunga Stream in Taumarunui. . Garden behind fish pond on Hakiaha Street in Taumarunui planted. . New playground in Pipiriki completed including flying fox, swings and multiplay equipment. . Taumarunui Saleyards fence repaired. . Sunshine Hill Walkway in Taumarunui reformed and tidied. . CBD footpaths steam cleaned across District.

Love NZ Recyclable bins at Cherry Grove. New solar compacting bin installed at Cherry Grove.

New picnic table at Owhango Reserve. New concrete footpath at KCE Jubilee Grandstand

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Community Halls . Interior of newly acquired Miriama Community Centre interior concrete blockwork painted, concertina doors installed in bar and new doorway built at top of internal ramp. . The stage at Ohura Hall painted.

New doorway at Taumarunui Miriama Community Centre.

Newly painted stage at Ohura Hall.

Public Toilets . Decorative battens applied to exterior of Taumarunui Hakiaha Street public toilets.

Taumarunui Hakiaha Street Public Toilets decorative battens.

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Capital Projects

Carry AP Actual Project Description Forward 2019/20 2019/20 Notes Budget $000 $000 $000 Accessible walkways south 6 - - LOS. Cherry Grove development 13 - 6 LOS. Cosmopolitan Club lower lounge 54 - 6 Growth. District wide playground equipment - - 1 LOS 77%, Renewal 23%. District wide toilets 150 - - Growth. Fanthorpes gate ramp renewal 13 - 87 Renewal. Fencing problem reserves north - 11 8 Renewal. Fencing problem reserves south - 11 15 Renewal. Manunui cemetery extension 3 - 2 Growth. Ohakune cemetery extension - 10 8 Ohakune Railway Station repiling and 29 - - Renewal. On hold, awaiting earthquake proofing advice from Historic Places Trust and final decision on design. Ohakune swimming pool ablution 30 - - LOS. block Ohakune walkway - 21 21 LOS. Owhango cemetery carpark extension - 5 - Parapara Rd Development 10 - - LOS. Pipiriki playground 51 56 Raetihi campground ablution block - 184 Renewal. Concept designs have been delayed. Raetihi cemetery extension - 31 - Rangimarie flat heat pumps - 15 18 Rangimarie flat reconfiguration 39 - 62 LOS. Ruatiti domain toilet upgrade - 82 - Social Housing minor capital works - 18 12 Renewal. Social Housing security doors - 6 - LOS. Taumarunui domain drain realignment 21 - - LOS. Taumarunui domain facilities upgrade 33 - - Taumarunui grandstand refurbishment - - 7 Renewal. Taumarunui railway station - 111 Taumarunui stainless steel rubbish 4 - 110 Renewal. bins Taumarunui town revitalisation - 653 - Growth. Taumarunui walkway - 21 LOS. Tangiwai reserve development 7 - - LOS. Township revitalisation seed funding 152 - - Waiouru playground - 31 - Total 564 1,261 419

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Work in Progress

Opening Closing Project Description WIP WIP Notes $000 $000 Fanthorpes gate ramp renewal 7 - Hakiaha Street landscaping 691 983 Hakiaha Street toilets upgrade - 14 Manunui cemetery extension 2 3 Ohakune iSite roof renewal - 5 Ohakune Railway Station repiling - 13 Raeithi cemetery extension - 6 Tangiwai reserve development 8 27 Taumarunui domain facilities upgrade 3 3 Taumarunui museum archive - 3 Taumarunui railway station 19 38 Town revitalisation – community facilities 348 391 Total 1,078 1,486

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What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Recreation and Community Facilities and Community Property

Council will maintain Council-Owned 100% 100% 58% Not achieved. and provide access Swimming Pools to playgrounds, Achieve NZ Water Independent water public green space, Pool standards for all quality reports as amenities, libraries Pools. provided by contractor. and community halls. Issues with delivery to laboratory, new supplier to be used going forward.

Cemeteries 8 <10/ 6 Achieved. Number of customer Per annum complaints on the maintenance of the District cemeteries.

% of cemetery 97% >95% 97% Achieved. assets in satisfactory condition (grades 1, 124 out of 128 assets in 2 or 3) **. satisfactory condition.

% of cemetery 100% 100% 100% Achieved. internment requests responded to within 24 hours.

Community Halls 100% 100% 100% Achieved. Council managed community halls Evacuation plans in have the required place. Trial evacuations building compliance completed for Manunui and emergency and Taumarunui War evacuations Memorial Halls. procedures in place.

% of Council 95% >95% 90% Not achieved. managed community halls and public 1,337 out of 1,491 asset toilets in satisfactory components in condition (grades 1, satisfactory condition. 2 or 3) **.

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Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Recreation and Community Facilities and Community Property

Community Halls, 100% 100% 100% Achieved. Swimming Pools & Public Toilets No demolition during the Full compliance with year, draft Asbestos legislative Management Plan and requirements when reports where asbestos undertaking repairs, testing completed have refurbishing or been made available for demolition of contractors. buildings including asbestos material.

Community Halls, 100% >90% 100% Achieved. Swimming Pools & Public Toilets 4 out of 4 safety defects Safety defect attended to within requests attended timeframe. and made safe at building within 4 hours.

Community Halls, 100% >85% 100% Achieved. Swimming Pools & Public Toilets 4 out of 4 safety defects Safety defects are rectified within rectified (issue fully timeframe. resolved) within 3 days.

Amenities and Playgrounds 100% 100% 100% Achieved. facilities are provided % of playground that meet the needs assets complying and safety of the with NZ standards community. (annual audit). (Note 2).

Parks and Reserves 93% 85% 92% Achieved. Users feel safe when using actively used 117 out of 127 users felt domains and safe. reserves.

Parks and Reserves 8 <10 per 9 Achieved. Number of customer annum. complaints on the 9 customer complaints maintenance of the received through RFS actively used system. domains and reserves.

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Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Recreation and Community Facilities and Community Property

Parks and Reserves 93% >95% 88% Not achieved. % of parks assets in satisfactory condition 772 out of 879 asset (grades 1, 2 or 3) **. components in satisfactory condition.

Public Toilets 88% 90% 100% Achieved. % of public toilet related emergency 61 out of 61 requests requests for Service responded to within 24 responded to within hours. 47 out of 61 24 hours (Note 1). (77%) fully rectified within 24 hours.

Public Toilets 97% 85% 100% Achieved. % of public toilet related urgent 27 out of 27 requests requests for Service responded to within 48 responded to within hours, 25 out of 27 48 hours (Note 1). (93%) fully rectified within 48 hours.

Public Toilets 37 <20 per 22 Not achieved. Number of customer annum. complaints received. 22 complaints received.

Public Toilets 100% >95% 100% Achieved. Any new public toilets provide safe One new toilet provided: environment for National Park Village users. Park and Ride KiwiCamp facility.

Public Toilets 67% >85% 68% Not achieved. % of public toilets inspected and 18 out of 26 public toilets cleaned daily in all inspected and cleaned areas. daily.

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Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Recreation and Community Facilities and Community Property

Libraries, public Buildings 83% 100% 100% Achieved meeting venues and Council public Administration buildings (including Buildings will be administration, library retained and well and Information maintained. Centres) have the required building compliance in place.

Buildings 100% 100% 100% Achieved. Full compliance with legislative No demolition during the requirements when year, draft Asbestos undertaking repairs, Management Plan and refurbishing, reports where asbestos demolition of testing completed have buildings including been made available for asbestos material. contractors.

Buildings 100% >90% -% Not achieved. Safety defect requests attended One safety defect not and made safe at attended to within 4 building within 4 hours. hours.

Buildings 100% >85% -% Not achieved. Safety defects rectified (issue fully One safety defect not resolved) within 3 fully resolved within 3 days. days (took 4 days).

Buildings 100% >95% 99% Achieved. % of Council buildings in 656 out of 660 asset satisfactory condition components in (grades 1, 2 or 3**). satisfactory condition.

Library Facility 93% 75% 90% Achieved. % of Library users who are satisfied or 66 out of 73 users were highly satisfied with satisfied or highly public library facility. satisfied.

i-SITEs and Service 94% 75% 83% Achieved. Centres Visitor Information 62 out of 75 users were and Service Centre satisfied or highly users are satisfied or satisfied. highly satisfied with buildings (Annual Survey Monkey).

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Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Recreation and Community Facilities and Community Property

Housing units are Social Housing 96% 95% 93% Not achieved. maintained to a % of residents who satisfactory standard feel safe in their 26 out of 28 and provide a safe homes. respondents felt safe. environment for Reasons for not feeling tenants. safe are other tenants or neighbouring properties.

Social Housing 88% 90% 91% Achieved. % of residents are satisfied or very 22 out of 24 satisfied with the LoS respondents are (Note 3). satisfied or very satisfied. The other two marked ‘adequate’.

Social Housing 100% 100% 100% Achieved. All social housing units are proactively Inspection of all units inspected annually. completed in December 2019.

Social Housing 95% 95% 97% Achieved. % of social housing units in satisfactory 1,567 out of 1,622 asset condition (grades 1, 2 components are in or 3) **. satisfactory condition.

Social Housing 98% 85% 95% Achieved. % utilisation rates of social housing units Occupancy sheets. available to use.

Buildings and 61% 80% 44% Not achieved. Social Housing % of requests 44 out of 101 requests responded to within 3 responded to within days (excluding three days. safety defects).

Airfield that is safe for Aerodrome 100% 100% 100% Achieved. authorised aircraft. % compliance of the Taumarunui Aerodrome with civil aviation authority (CAA) safety requirements.

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Notes:

** International infrastructure Management Manual conditions grades: 1 - Very Good, 2 - Good, 3 - Moderate, 4 - Poor, 5 - Very Poor.

1: Future targets decreased to reflect ability of contractors to respond and requirements of contract obligations.

2: Future targets increased to reflect responsibility of Principal under new Health and Safety Act.

3: Future targets increased to closer reflect actual performance.

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Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Community Facilities Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, 2,910 3,004 3,072 rates penalties Targeted rates - - - Subsidies and grants for operating purposes 3 3 16 Fees and charges 452 461 894 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, - - - and other receipts Total operating funding (A) 3,365 3,468 3,982

Applications of operating funding Payments to staff and suppliers 2,664 2,744 2,859 Finance costs 71 64 33 Internal charges and overheads applied 326 353 375 Other operating funding applications - - - Total application of operating funding (B) 3,061 3,161 3,267 Surplus/(deficit) of operating funding (A-B) 304 307 715

Sources of capital funding Subsidies and grants for capital expenditure - - -

Development and financial contributions - - - Increase/(decrease) in debt 965 1,037 101 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 965 1,037 101

Application of capital funding Capital expenditure: - To meet additional demand 584 958 424 - To improve the level of service 368 79 119 - To replace existing assets 205 223 273 Increase/(decrease) in reserves 112 84 - Increase/(decrease) of investments - - - Total applications of capital funding (D) 1,269 1,344 816 Surplus/(deficit) of capital funding (C-D) (304) (307) (715) Funding balance ((A-B)+(C-D)) - - -

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COMMUNITY SUPPORT

Introduction The purpose of Local Government is to provide good quality local infrastructure, public services and regulatory functions at the least possible cost to households and business. In relation to community support functions, the key words are ‘local’ (to differentiate from services better provided by central government) and ‘public’ which means that Councils should not try to replace services provided by the private sector.

For Ruapehu District Council, those services that fall within the Community Support activity are: . Emergency Management (Civil Defence). . Libraries. . i-SITES. . Regional Tourism Organisation.

Emergency Management Council is an active member of the Manawatu-Wanganui Civil Defence Emergency Management (CDEM) Group, as required by the CDEM Act 2002. This group maintains a Plan that considers all phases of emergency – the 4 Rs: Reduction, Readiness, Response and Recovery. A business plan is also managed by the group, with each of the member councils contributing to achieving the goals of the group. The group’s approach is “centralised coordination and local delivery” and works closely with emergency services, welfare agencies.

Council staff and volunteers are trained at various levels of competency in readiness for any civil defence emergency within the district. The aim is to improve consistency in approach and to provide additional resources to enhance the level of readiness and response capability throughout the district and the region.

The increasing impact of climate change has a direct impact on the emergency management activity of Council. There have been numerous events which have required emergency management support. Some recent examples include: . COVID-19 response. . Water outages in Taumarunui.

Council will continue to resource this function to cope with future events and achieve compliance with the Civil Defence Act 2002.

Library Services Ruapehu Community Libraries are situated in Taumarunui, Ohakune and Raetihi. The library buildings are managed by the Community Property activity, but the library services (books, computers, children’s holiday programmes etc.) fall within the Community Support Activity.

Council also supports the community libraries in Ohura and Waiouru with grants each year. i-SITES There are three i-SITES in the District; Taumarunui, Whakapapa and Ohakune. i-SITES provide local information and booking services to visitors.

The Visitor Information Centre in Raetihi receives grant funding from Council.

Visit Ruapehu Limited - Regional Tourism Organisation Visit Ruapehu Limited is the registered legal name of this limited liability company, which from December 2019 began operating as a Council-Controlled Organisation (CCO) wholly owned by Ruapehu District Council.

The company is a New Zealand Regional Tourism Organisation and has been formed with the specific objectives of:

(a) The promotion of social, cultural, environmental and economic welfare of the citizens of the Ruapehu District.

(b) The promotion of the Ruapehu District for the benefit of the public and visitors.

(c) The development and maintenance of resources holding public information about tourism in the Ruapehu District.

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Council contracts out the Regional Tourism Organisation function because it believes that people who have worked in the industry can deliver the services better and more efficiently than Council could. Visit Ruapehu Limited supports the tourism infrastructure of the district and works with local, regional and national partners. Council considers Visit Ruapehu Limited to be an essential part of its economic and community development strategy, particularly the promotion of Ruapehu as a visitor destination, both for the domestic and international markets, in partnership with operators/providers.

Outcomes Safe, Healthy Communities . Excellent standards of safety and welfare are promoted and respected. . Preparation, planning and timely responses protect people and property from natural hazards.

Vibrant and Diverse Living: . Traditions, values and history of all ethnic groups are respected. . Activities, facilities and opportunities for youth are provided and supported. . Excellence and achievement in sport, arts/cultural pursuits, community service and business is supported. . Events and festivals are encouraged and supported.

Thriving, Natural Environment . The promotion of our District includes focus on our natural rivers, bush and mountains, as well as the built heritage, agriculture and railways.

Thriving Economy . Economic diversity and core economic strengths are encouraged in partnerships with others.

Strong Leadership and Advocacy: . Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services. . Council is proactive, transparent and accountable.

Wellbeings Social, Economic, Environmental and Cultural.

Rationale The purpose of this activity is to provide services such as Emergency Management (Civil Defence), Libraries, i-SITES and Visit Ruapehu Limited (for tourism and economic development).

Significant Negative Effects There are no significant negative effects on the community from the provision of these services.

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Highlights for the Year

Grants Direct grants totalling $83,500 were allocated to the Waiouru Library, Ohura Library, Neighbourhood Watch Raetihi Information Centre and various Community Halls (for maintenance activities). Grants also supported the Christmas Parades, which are held in Taumarunui and Raetihi. The Pride of Place grant that was established to help community groups beautify public spaces has been well received within the district. Seven applications totalling $59,305 were received and $50,000 was allocated.

The final allocation was $116,150 including grants council administers on behalf of Creative New Zealand and Sport New Zealand.

Visit Ruapehu Limited – Regional Tourism Organisation Three Year Business Plan - Visit Ruapehu Limited delivered the third year of its committed, annual business plan as re-presented to Council at the January 2018 Economic Development Workshop. Progress against the business plan has been reported regularly to industry in the form of industry updates as well as to Council with each of the three invoices against the funding agreement.

Key Performance Indicators - Regional Tourism Estimate revenue for the financial year ending June 2020 dropped by 11% versus the year prior due to adverse weather conditions during the 2019 ski season, followed by a shortened summer peak season with the arrival of COVID-19 to New Zealand. The FY20 result was $188m for the year ending June 2020. North Island domestic tourism consideration of Ruapehu grew from 17% in 2016 to 24% in 2020 as measured by Kantar TNS in a bespoke research project.

Visit Ruapehu Limited won the Regional Tourism New Zealand supreme award in 2019 for overall performance of nationwide Regional Tourism Organisations.

Local, Regional and National Partnerships - Industry Tourism Forum and Visit Ruapehu Limited AGM was held at the Chateau Tongariro in December and attracted 100 local operators with updates from Visit Ruapehu Limited, Ruapehu Alpine Lifts, the cycle trails and MBIE. A successful marketing workshop was held in Ohakune, and with the limitation of travel from March – June Visit Ruapehu Limited ran frequent online webinars updating industry on work plans and assistance available.

The Ruapehu Regional Visitor Development Plan implementation continues closely with Visit Ruapehu Limited, with the ongoing work of Warren Furner through his Destination Development Programme Manager role funded through MBIE.

The relationship with Destination Great Lake Taupō and Visit Ruapehu Limited has strengthened, seeing Ruapehu work closely together with ski and international marketing opportunities as well as sharing information and meeting with neighbouring iwi on joint destination development planning.

Robust ongoing Tourism New Zealand relationships have resulted in increased trade, media and consumer promotional coverage. Ruapehu-centric content on Tourism NZ.com was filmed at their cost over the year and the region continues to feature in their planning discussions including the COVID-19 pivot to domestic marketing.

Digital & Content Development – The visitruapehu.com website is undergoing a refresh which will be rolled out early in FY21. Year on year July – June has seen an increase of 20% in sessions to 252,725 sessions. Further image and video shoots have been completed over the year with updated content being loaded to BrandKit for distribution

International Travel Trade Development – Ruapehu’s focus for the international market remained on key offshore markets of Australia, UK/Europe and USA predominantly through work in New Zealand with Inbound Tour Operators and industry organisations, participation at global events such as TRENZ, and partnerships with our neighbouring tourism offices through the Explore Central North Island group including in-market visitation throughout the year working closely with Taupō to share costs and resources. TRENZ 2020 was cancelled due to COVID-19, and much of our international work was placed on hold with resources directed to the domestic market.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 84 i-SITES During 2019/20 we saw over 230,000 visitors through our doors. We gave out over 90,000 town maps and over 25,000 tracked brochures with thousands more being distributed that we are unable to track. We were happy to support and work with Enterprise Taumarunui Incorporated to produce a Taumarunui town map for distribution to our visitors.

With all the weather challenges and COVID-19 which meant we closed our doors for almost two months, we are happy to say we made over 17,300 transactions with our visitors for various activities, events and accommodation, transport or retail purchases. We gained great customer service feedback and helped lots of travellers with health and safety tips, responsible camping tips, TIAKI promise awareness and leave no trace, to mention just a few.

We installed digital touch screens to better support key health and safety messages to our community and visitors and also support our business community to advertise their business. We also signed up to RefilNZ to reduce plastic and worked with various organisations and agencies to support their efforts through our community to educate and learn about reducing waste and supporting sustainable tourism. We also took on a new partner through the walking access commission Aotearoa to better advertise our walks and treks in the district. We worked very closely with the Department of Conservation and supported their campaigns throughout the 2019/20 financial year. The support for all the local events were also a highlight as well as new businesses that opened up in the region.

Some staff achieved their NZQA level 3 and 4 in tourism, passed their first aid qualifications and upskilled in various other administration skills and systems including the digital signage and to help improve our internal administration processes.

Civil Defence and Emergency Management Work has finished on the new Civil Defence volunteers headquarters in Taumarunui. This building will be used by volunteers for coordination and training.

For five weeks New Zealand was in lockdown over the pandemic COVID-19. The district has two health boards which meant we had two Emergency Operations Centres operating. Over 40 volunteers assisted council staff, Ruapehu Alpine Lifts, Iwi, Police, Supermarkets and many other agencies. The lockdown was a difficult new normal for most people. The volunteers and staff did an amazing job to help so many different people.

A new volunteer training framework was drafted by both Waikato and Manawatu-Whanganui CDEM groups. As the led council for creating the new framework it has be a team effort. Volunteers will be able to have nationally recognised training which can be used on deployments across the country.

Taumarunui Civil Defence Volunteers During lockdown towns across New Zealand looked like this. Staying home training with ladders at height. was best for our communities.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 85

Libraries All three libraries are now equipped with a complete new suite of APNK devices, technology and systems for public computer use, including booking systems, printers and scanners. With older equipment being replaced by chrome stations, staff and users alike have had to learn and adapt to the consequent new processes involved.

Funds raised from book sales have assisted in the purchase of new furnishings – a magazine rack for Taumarunui, and a sofa for the children’s area in Ohakune. Taumarunui’s junior fiction section has been modified and extended to allow for the growing demand on these books.

The mobile ‘library in schools’ service has now included Kaitieke School, as part of a ‘loop’ between National Park and Owhango Schools.

Visiting entertainer and children’s author, Deano, drew a packed audience of children into Taumarunui Library in the October holidays.

The COVID-19 lockdown saw staff working from home and being kept busy in a number of tasks, including ‘tidying’ the library database, communicating with borrowers by bulk email and assisting them with access to ebooks and the library electronic databases. The APNK WiFi service was disabled over this period to comply with social distancing recommendations. When the libraries re-opened in May, central government guidelines were considered in the restrictions on library use. This involved a contact tracing register, limits on visitor numbers and APNK computer use.

District Co-ordinating Librarian Fiona Thomas assisting children’s District Co-ordinating Librarian Fiona Thomas entertainer Deano in a holiday programme. with children and staff of Kaitieke School.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 86

Capital Projects

Carry AP Actual Project Description Forward 2019/20 2019/20 Notes Budget $000 $000 $000 Civil Defence Base - - 174 LOS Civil Defence Catering Trailer (South) - 15 - Growth Civil Defence Radio Network - 15 1 LOS Civil Defence Spill Response Containment - 12 - LOS E-Books for all Libraries - 5 - Renewal Library Books - Taumarunui - 23 - Renewal Library Books - Ohakune - 13 - Renewal Library Books - Raetihi - 12 - Renewal Mobile Events Platform - - - Growth Ohakune Office Generator - - - Renewal Total - 95 175

Work In Progress

Opening Closing Project Description WIP WIP Notes $000 $000 Civil Defence Base and Training School 160 - Civil Defence Catering Trailer (South) - 14 Civil Defence Radio Network 1 16 Library Books - Taumarunui - 7 Library Books - Ohakune - 5 Library Books - Raetihi - 2 Town Revitalisation – Community Support 15 15 Total 176 59

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 87

What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Emergency Management

Council will provide Percentage of staff 75% 70% 85% Achieved. Civil Defence and who are adequately Emergency trained in an Two CIMS level 4 Management for the approved courses undertaken District. emergency in Taumarunui. response-training programme.

Undertake five or 5 >5 3 Not achieved. more presentations or events within the The COVID-19 community to raise response stopped awareness of Civil community events. Defence.

Have trained 2 3 3 Achieved. volunteer community Civil Defence teams Taumarunui, in the district. National Park and Ohakune.

Respond to 100% 100% 100% Achieved. hazardous substance One response emergencies with undertaken with two hours from emergency powers notification. enacted, site cleaned by contractors.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 88

Key Performance Level of Service 2018/19 2019/20 2019/20 Commentary Indicators Actual Target Actual Library Service

Provide a library Percentage of users 93.33% 75% 77.2% Achieved. service that meets the who are satisfied needs of the with the service community. provided.

Increase the number 8.8% +1% Per Less Not achieved. of active library (1,540) Year. 2.1% members. (1,494) The COVID-19 lockdown prevented active members from borrowing books. Ebook users are not represented in these statistics however. Also, many borrowers did not return to the libraries until Level 1 was reached.

Visitor Information Centres (i-SITES) i-SITES are open 40 Booking transactions 16% +2% -16.2% Not achieved. hours minimum per (sales) increase. week. Global pandemic COVID-19 affected tourism and economy in general.

Customer 90% >/=85% 90% Achieved. satisfaction with i-SITE service from Against a National Trip Advisor, Average of 87.2%. Google+ and Customer Radar.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 89

Key Performance Level of Service 2018/19 2019/20 2019/20 Commentary Indicators Actual Target Actual

Regional Tourism Organisation/Visit Ruapehu Limited

Visit Ruapehu Limited Growth in Regional $211m $210m $188m Not achieved. Regional Tourism Tourism Estimates Organisation (RTO) 2018-28 grow from Results affected by will proactively $195m to $238m adverse ski season promote the (MBIE Regional and the shortened destination to Tourism Estimates) summer season Domestic and (Note 1). due to COVID-19. International markets.

Domestic tourism Not Not 24% Achieved.

awareness of measured. measured.

Ruapehu grows Benchmark of 2016

against the 2016 amended to reflect benchmark of 14%. North Island only research 2020.

International tourism Not Not Not Not Achieved. awareness of measured. measured. measured Ruapehu grows The onset of against the 2016 COVID-19 benchmark of 3%. immediately stopped all international tourism marketing efforts. This activity was therefore not measured and will be reviewed in the Long Term Plan review 2021-2031.

Notes:

1: The base data used in this measure is sourced from Statistics New Zealand Business demography datasets.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 90

Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Community Support Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, 2,280 2,643 2,770 rates penalties Targeted rates 565 576 605 Subsidies and grants for operating purposes - - - Fees and charges 558 604 754 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, - - - and other receipts Total operating funding (A) 3,403 3,823 4,129

Applications of operating funding Payments to staff and suppliers 2,480 2,550 2,496 Finance costs 3 1 - Internal charges and overheads applied 796 1,136 1,210 Other operating funding applications - - - Total application of operating funding (B) 3,279 3,687 3,706 Surplus/(deficit) of operating funding (A-B) 124 136 424

Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt 119 30 43 Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) 119 30 43

Application of capital funding Capital expenditure: - To meet additional demand 100 15 28 - To improve the level of service 25 27 16 - To replace existing assets 52 53 53 Increase/(decrease) in reserves 66 71 370 Increase/(decrease) of investments - - - Total applications of capital funding (D) 243 166 467 Surplus/(deficit) of capital funding (C-D) (124) (136) (424) Funding balance ((A-B)+(C-D)) - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 91

LEADERSHIP

Introduction The Local Government Act 2002 (LGA) sets out the role and principles of local government as well as governance and management principles.

The Leadership Activity is divided into two key areas: . Governance – Council and Community Boards. . Strategic Development – Economic Development, Business Development, Policy Development, Youth Development and Iwi Development.

Governance Council Council is made up of eleven elected members from across the District and the Mayor. Councillors are elected to represent both their Ward and the whole District. While equitable representation is critical (i.e. they are elected as representatives of their Ward) when they are sitting as Council to make governance decisions they do so with consideration of the outcomes for the whole District.

Council’s focus is strategic direction policy and an overview of the financial position of Council.

Community Boards Community Boards are Ward-based and serve an important function in the District. Their role is to be the advocate for their local community (Ward) to Council, to stay involved and engaged with issues “on the ground” and communicate those concerns to Council.

Community Board members are elected every three years by their Ward constituents as part of local body elections. One or two District Councillors also sit on the Community Boards.

In the Ruapehu District we have two community boards, National Park (NPCB) and Waimarino-Waiouru WWCB). In the North there is a different arrangement for Ward representation called the Taumarunui/Ohura Ward Committee (TOWC). The TOWC is made up of all of the Northern Ward Councillors, i.e., the Elected Members from both the Taumarunui and Ohura Wards. There are no other elected or appointed “committee members”.

Strategic Development Economic Development This group of activities promotes the Community Outcomes that mainly target environmental, social and economic objectives.

Business Development Council employed a permanent Business Development and Relationship Manager to advocate for and support diverse business confidence, innovation and growth in the District.

Policy Development Council develops bylaws, strategies and policies to provide practical solutions, guidance and consistency in direction setting and decision making with the purpose of achieving balanced wellbeing outcomes for the District.

Youth Development Council values youth input in decision making and acquires this through the Ruapehu Youth Council. The Facilitator of the Ruapehu Youth Council also engages with external youth development agencies, projects and schools.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 92

Iwi Development Council is committed to building relationships with Māori and establishing better communications and consultation protocols to encourage greater participation by Māori in Council’s decision making process. The Ruapehu District Māori Council (RDMC) is a platform that was established to support this.

Council continues to work with and build relationships with iwi/hapū who sit outside the RDMC, as well as iwi authorities mandated to undertake Treaty settlement processes, both pre and post settlement. To date, the following iwi Treaty settlements across the Ruapehu district that have been finalised are:

. Te Awa Tupua (Whanganui River Claims). . Ngāti Tūwharetoa. . Ngāti Rangi.

Council also has a working relationship with the local Māori Wardens and remains committed to continuing to work collaboratively with them.

Ruapehu District Maori Council Background RDMC was established as a forum to provide opportunities to foster the development of Māori capacity in order for Council to meet its legislative obligations to Māori.

RDMC is made up of 12 members; three Council elected members and a collective of nine representatives mandated by their respective iwi/hapū/marae, each comprising three members, from what Council considers, to be the three main iwi across the Ruapehu district:

. Tuwharetoa. . Maniapoto. . Southern Iwi.

The RDMC forums provide an opportunity for Council to share information with its Māori community and increase an understanding of Council’s role as a local authority. On average a total of six meetings are held per annum over a six weekly cycle. The venues where the meetings are held, generally alternate between the Taumarunui and Ohakune Council Chambers. The meetings dates are advertised in the local papers prior to being held, and iwi/hapū who are not part of RDMC, along with the general public are welcome to attend as observers. From time to time, those who are not formal members of the RDMC have taken the opportunity to attend and discuss relevant matters in the public forum part of the meetings.

RDMC have a Strategic Development Plan and Memorandum of Understanding (MoU) with Council.

Future Focus Council is committed to building and strengthening relationships with Māori across the Ruapehu district and acknowledges the importance of ensuring this is done in a manner that is effective and meaningful. Council is also committed to enhancing its engagement and consultation practices with Māori and will continue to gain a better understanding of how it can improve these practices by continuing to with alongside the RDMC.

Council acknowledges the progress iwi and the Crown have made to date in regards to Treaty settlements, and is committed to continuing to support the principles of as a means of acknowledging its part, in the negotiation process.

Outcomes Vibrant and Diverse Living: . Traditions, values and history of all ethnic groups are respected. . Activities, facilities and opportunities for youth are provided and supported.

Strong Leadership and Advocacy: . Council advocates strongly for the provision of, and access to, affordable and effective health, welfare, law enforcement and education services. . Council is proactive, transparent and accountable.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 93

Wellbeings Social, Economic, Environmental and Cultural.

Rationale As the Governance and decision making body, Council influences and gives effect to all of the four Wellbeings. Council works closing with Iwi and the other diverse community in the district, as well as having a Social Policy that decision making passes through. Council also is an important advocate in the District with both Central Government and its agencies, to deliver the best services to its community. Environmental concerns and the wellbeing of the natural environment, are very important to Ruapehu District Council, as it is both a rural (farming, forestry and growers) and tourist destination. Decision making is always a balanced between needs and costs as Council is aware that some communities in the District are lower on the social /economic scale.

Significant Negative Effects There are no significant negative effects on the community of the Leadership Activity of Council.

Highlights for the Year

Governance (Mayor and Council) During 2019/20, the following number of meetings were held:

Name of Meeting Number of Meetings

Council ordinary meetings 14 Waimarino-Waiouru Community Board 10 Ruapehu District Maori Council - National Park Community Board 7 Taumarunui/Ohura Ward Committee 6 Audit and Risk Committee 4 Total 41

Strategic Development The Annual Plan 2020/21 (AP) was developed and adopted after a series of workshops were held with Councillors. As the Annual Plan reiterated the strategic, service and financial goals set out in the Long Term Plan 2018-28 which was extensively consulted on, additional consultation as per the Local Government Act 2002 was not required.

A series of community meetings were scheduled to be held across the district to inform community members of what Council has scheduled for the 2020/21 period. Unfortunately, these needed to be rescheduled due to COVID-19 lockdown. They were rescheduled to August and have also been used as pre-engagement meetings for the Long Term Plan 2021-31. The meetings have also been live streamed to Council’s Facebook page.

Some areas of Council progress during the 2019/20 period are:

. Implementation of the Waste Management and Minimisation Plan (WMMP) has progressed with planning and preparation for providing a kerbside food waste collection targeted to commence at the same time as the new collection and disposal contracts in October 2020. A switch from contractor operated Waimarino Transfer Station to a community based not for profit organisation operation as the Waimarino Resource and Recovery Centre was fully implemented from early March 2020.

. Work started on the Taumarunui Township Revitalisation. The first phases of revitalisation being the central CBD town square renewal and improved angle parking to the south end of this area and outside the Railway Station were completed.

. Purchase of the Taumarunui Cosmopolitan Club Lower Lounge was completed and renamed Miriama Community Centre. Some minor changes were implemented to provide a facility totally separate from the Taumarunui Cosmopolitan Club activity area. Further refurbishment is to be undertaken over time.

. The development, alongside Uenuku, of a community hub for Raetihi. Progress with Phase One with business case, MoU with Uenuku, establishment of a project team and governance group completed. Now preparing for full community consultation. RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 94

. The design and development of the District Wide Affordability/Liveability Study. The design and development phase of the study has been completed. With community focus groups completed, youth led projects and iwi engagement underway and data being collected and analysed. A completed draft is scheduled for end October 2020.

The following Policies were reviewed (or developed) and adopted during 2019/20:

. Liability Management Policy. . Procurement Policy. . Code of Conduct Policy. . Procurement Strategy. . Standing Orders adopted. . Cadetship, Study and Professional Development Policy. . Conflict of Interest Policy. . Flexible Working Policy. . Non-Smoking Policy. . Recruitment Policy. . Retirement Policy. . Information Management Policy.

Significant projects that have been completed: . Annual Plan 2020/21.

Youth Development Ruapehu Youth Council is made up of two groups of youth aged 12-24 who represent the Youth of the Ruapehu District. These two groups each meet once per month facilitated by Council’s Youth Liaison Officer. Representatives actively promote opportunities for youth, build capability and leadership skills and organise and steer local initiatives. Youth Ambassadors submit on local and national issues and represent the Ruapehu District at national events such as the Festival for the Future and New Zealand Youth Council Conferences.

In March, the 2020 Ruapehu Youth Council was selected and sworn in, with eight youth becoming the Taumarunui-Ohura Youth Ambassadors (TOYA) and 12 as the Waimarino-Waiouru Youth Ambassadors (WWYA).

There was a break for Ruapehu Youth Council during COVID-19 lockdown.

The youth ambassadors attended Festival for the Future Live. This year Festival for the Future was held online in Zoom forums and ambassadors were given the opportunity to choose what speakers they would like to listen to over five days, as oppose to a two day workshop.

TOYA held their first meeting and have committed to completing projects that they hadn’t managed to finish last year, such as a mural down one of the walkways in Taumarunui and progressing a “tourist photo frame” in the northern area of the district. TOYA would also like to like to look at an initiative for shop owners to take pride in their buildings and encourage them to upkeep them.

WWYA have also held their first meeting and have also committed to completing their tourist photo frame project. WWYA have decided that this will be their core focus for the year.

The rest of the year looks productive for both Youth Council groups, with both having meetings scheduled to take part in the districts spatial plan. All members will become familiar with writing reports for the meeting agendas; keep minutes, and the processes of local government consultation.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 95

Economic Development A key highlight for this year has been the delivery of the Immediate Priorities identified in the Manawatū Whanganui Economic Action Plan for tourism. The plan identified Ruapehu District as the natural lead for this work under the brand Accelerate25 which is the name for the Economic Action Plan implementation programme. Visit Ruapehu Limited RTO and Council have collaborated with Ministry of Business Innovation and Employment (MBIE), Horizons Regional Council, Taupō and Whanganui District Council to begin implementation of the Ruapehu Regional Visitor Development Plan (RRVDP), a Destination Management Plan that meets the new Destination Management guidelines produced by MBIE in 2019.

The plan was endorsed by the Accelerate25 lead team in August 2018 and resulted in Council and the Ministry of Business Innovation and Employment investing in a new dedicated role to implement the immediate priorities in the RRVDP over two years. Works completed in year one to 30 June 2020 include advancing the top six priorities identified in the RRVDP and the year-end report submitted to MBIE. In addition to planned works, government’s economic recovery initiatives over Q4 of the year dominated priority actions towards business support services and economic recovery investments.

The Ruapehu District Council has worked successfully to drive the Business Friendly Policy across the district and within the Council. There is consistent focus on working to the Regional Growth Strategy, Accelerate 25 enablers, specifically the Skills and Talent, Transport and Growing Business enablers. The Business Development and Relationship Manager role continues to work to build relationships across the district with a focus on developing our workforce by linking opportunities with the Central Economic Development Agency (CEDA) and to facilitate outcomes associated with Regional Business Partner Programme and COVID-19 recovery skill and talent initiatives.

Council continues to work alongside Chorus and Crown Fibre Holdings to deliver Broadband enhancement and Mobile Black Spot investments over 2019. This is essentially a significant civil work programme delivering door- to-door fibre across the community early in 2020 with Taumarunui, Ōwhango and National Park Villages substantially completed during 2019.

Enjoying Our Greater Outdoors. Mountain Bike, Mt Ruapehu.

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Ruapehu District Maori Council Forum Council continued to meet with the RDMC members, however as the year progressed the forum saw a steady decline in representation. As a result, this has triggered a need to review the forum. Council will continue to work with the members in order to get a better understanding of where Māori see themselves in relation to the RDMC forums. Council views this as a positive opportunity and is looking forward to continuing to work with the members.

Council continued to meet its obligations to building relationships with iwi who have settled, and those who are still to settle their Treaty claims. This included its commitment to the Te Awa Tupua (Whanganui River Claims Settlement) work through the Technical Advisors Group and Te Kōpuka Nā Te Awa Tupua Strategy Group and also its work in collaboration with other local authorities i.e. Whanganui District Council, Stratford District Council and Horizons Regional Council.

Council continued to work collaboratively with local Māori Wardens and was pleased to be able to host their Warrant ceremony in the Taumarunui Council Chamber. Local kaumatua supported the Māori Wardens Warrant ceremony and also continued to support Council at its Citizenship ceremonies. Council acknowledges these relationships and the significance of continuing to work collaboratively in this area.

Council held a number of meetings with the Pipiriki community at Paraweka Marae to discuss options to investigate a central water supply system for Pipiriki, as well as, the opportunity to build a new playground in the community. The playground has now been established and the drilling work in relation to exploring the options for a community water supply has been completed.

Te Kōpuka Nā Te Awa Tupua Strategy Group at its inaugural meeting at Te Ihingarangi Marae, Waimiha.

The Taumarunui Māori Wardens Warrant Ceremony, Taumarunui Council Chamber.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 97

What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Leadership

Council provides Number of Public 39 >40 41 Achieved. public access to Forums per year. the community through Community Boards and Council meetings.

Residents are Percentage of 74% 60% 75.53% Achieved. satisfied with the respondents who Leadership of are satisfied with Council. Council’s overall leadership and performance.

Economic and Business Development

Progress the Continue to 4 additional 3 additional 3 Achieved. Accelerate 25 progress the actions actions. Ruapehu Regional Accelerate 25 achieved. Actions include: Visitor Development Ruapehu Regional investigations and Plan and the Visitor Development feasibility study for new Economic Plan by increasing attractions such as Development the number of Pokaka Eco Sanctuary, Strategy. priority actions Cycle Trails and achieved each year. awareness campaigns delivered.

Continue to 3 additional 3 additional 3 Achieved. progress the actions actions. Economic achieved. Actions include: Fibre Development delivery in three Strategy by communities, increasing the Advancement of the skills number of priority and talent business actions achieved support over COVID-19 each year. and funding for Ohakune Water Treatment Plant upgrades from Tourism Infrastructure Fund.

Iwi Development

Council meets Number of meetings 4 >3 6 Achieved. regularly with Iwi/ with Iwi/ Hapū per Hapū. year.

Number of meetings 7 >6 2 Not achieved. with Ruapehu District Māori Post elections sees the Council per year. need for a review to happen.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 98

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Policy Development

Consultation material Percentage of 81.28% 80% 67.6% Not achieved. will be made publicly respondents who available from all are satisfied or very Council has not had to Council offices and on satisfied with officially consult on the its website. consultations. Annual Plan for the last two years due to there being no significant changes from the LTP. This could reflect why there is less satisfaction in this area than the previous year where a lot of consultation had taken place with the LTP and town revitalisation.

Youth Development

Activities, facilities Support the Ruapehu 19 18 20 Achieved. and opportunities for Youth Council to hold youth are provided 18 meetings a year. and supported. Support the 2 2 2 Achieved. Ruapehu Youth Council to hold two community events per year (at least).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 99

Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Leadership Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, 1,852 1,830 1,873 rates penalties Targeted rates 343 350 358 Subsidies and grants for operating purposes - - - Fees and charges (2) 1 49 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, - - - and other receipts Total operating funding (A) 2,193 2,181 2,280

Applications of operating funding Payments to staff and suppliers 1,757 1,711 1,667 Finance costs - - - Internal charges and overheads applied 434 470 500 Other operating funding applications - - - Total application of operating funding (B) 2,191 2,181 2,167 Surplus/(deficit) of operating funding (A-B) 2 - 113

Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt - - - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) - - -

Application of capital funding Capital expenditure: - To meet additional demand - - - - To improve the level of service - - - - To replace existing assets - - - Increase/(decrease) in reserves 2 - 113 Increase/(decrease) of investments - - - Total applications of capital funding (D) 2 - 113 Surplus/(deficit) of capital funding (C-D) (2) - (113) Funding balance ((A-B)+(C-D)) - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 100

REGULATION

Introduction The Regulation Activity seeks to facilitate a safe and sustainable community through the administration and enforcement of laws made by Central Government. This includes the sustainable management and use of natural resources under the Resource Management Act 1991 and District Bylaws.

Building Services The Building Services team inspects all building works and relocated buildings to ensure they meet the Building Act 2004 and Building Code requirements.

Resource Management The Resource Management team coordinates both the issuing of resource consents and monitoring the conditions of these consents, in line with relevant legislation (primarily the Resource Management Act) and the District Plan.

The District Plan is one of Council’s key planning documents that sets out the rules and policies that guide development in the district. The Resource Management Act requires that the District Plan to be reviewed every ten years. Because of the size and complexity of a DP review, Council will do a ‘rolling review’ of discrete sections as required to satisfy the prescribed review process.

Environmental Health and Alcohol Licencing This activity has a number of functions, including food safety, alcohol licensing, making sure premises and events comply with regulatory standards, as well as monitoring environmental issues and investigating complaints. The team ensures that health and safety of the public are protected by ensuring that food and alcohol premises comply with legal requirements under the Sale and Supply of Alcohol Act 2012, the Health Act 1956 and the Food Act 2014.

Compliance The Compliance Team ensures compliance with Council’s Bylaws the District Plan and legislation such as the Dog Control Act 1996. The role is varied and includes: . Animal control. . Parking. . Noise control. . Bylaws. . Swimming pool inspections . Stock on road calls.

The Compliance Officer’s role is to promote a safe and happy community by educating the public about local bylaws and other community-focused legislation. They also have the responsibility to monitor and enforce these laws and bylaws when necessary.

Outcomes Safe, Healthy Communities: . Quality regulation, regulatory services and infrastructure. . Core infrastructure endeavours to keep pace with changing demand. . Excellent standards of safety and welfare are promoted and respected.

Thriving, Natural Environment: . Our environment is accessible, clean and safe and our water, soil and air meets required standards.

Strong Leadership and Advocacy: . Council is proactive, transparent and accountable.

Thriving Economy: . Regulatory services and reliable infrastructure help the economy prosper. . Economic diversity and core economic strengths are encouraged in partnership with others. . Planning and regulatory functions balance economic growth and environmental protection.

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Wellbeings Social, Economic, Environmental and Cultural.

Rationale Council is required by a number of laws to provide regulatory services. As well as enforcing a number of Central Government Laws, Council also has to enforce its own bylaws. This activity covers building services, resource management, environmental health and alcohol licencing and ensures compliance with other legislative activities.

Significant Negative Effects There are no significant negative effects on the community as a result of the Regulatory Activity of Council.

Highlights for the Year

Compliance During this year, Compliance had another staff change which resulted in the team being understaffed for over four months. Despite this, Compliance have managed to provide the public with a good effective service.

The animal shelter was given a face lift on the outside of the building and the office area a fresh coat of paint.

Council’s animal shelter building before being painted. Council’s animal shelter building after being painted.

Over the period of COVID-19 the Compliance team prioritised calls that were considered as essential business. During the COVID-19 levels there was a particular increase of stock on road calls, trespassing stock and dog attacks. The public responded well despite the difference of life as we know it and were understanding that not all calls and inspections could be attended to.

In order for a dog owner to receive a Hunting Dog status for their dog, part of the criteria is that they must have their dog pass the Kiwi Aversion course. A qualified trainer uses fresh kiwi scent on fake kiwis along the course. The dog must not attack or respond to the kiwi or the dog is given a low voltage shock which is effective to ensure the dog avoids contact with a Kiwi. Compliance held their second Kiwi Aversion training where 11 people attended to have their dogs put through their paces in the training. Although there weren’t the numbers as the first training day those who attended were grateful for the opportunity.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 102

Building Control Unit Building consent applications and site inspections were higher than last year even with COVID-19 slowing us down for a couple of months. New housing is still strong and Pet Pal (Manunui) commercial project is now at stage three. There has also been a significant work increase over multiple projects this year at the Waiouru Army Camp. Looking ahead the Building Consent process is due to go ‘Online’ November 2020, this will be a major change for both staff and customers.

The Building team processed 337 Building Consents, completed 1,109 Site Inspections, issued 314 Code Compliance Certificates, completed 238 Requests for Service and processed 448 Building Warrant of Fitness Compliance Schedules. During the same time, we had a successful audit from IANZ.

New build ski accommodation. Pet Pal Manunui stage 3. New residential build.

Resource Consents 69 consents were processed in the 2019/20 year. The statutory timeframe under the RMA is 20 working days to process and the average was 15 days.

804 Requests for Service have been received and completed.

27 Deemed Permitted Boundary Activity Applications were processed under the new Section 87BA of the Resource Management Act 1991. These applications are exempt from the full Land Use Resource Consent process. They have a 10-day maximum timeframe to process under the RMA. All were processed with an average of six days.

Environmental Health and Liquor Licensing Liquor Licensing continues to work closely with businesses to ensure that the information provided is accurate and acceptable to the District Licensing Committee for all types of liquor licence applications. Some existing licensees are still failing to meet the requirements around the records even though the premises have already renewed their licenses under the Sale and Supply of Alcohol Act 2012 and they were in place at the time. The turnover of staff continues to challenge some premises with the requirements around certified managers proving to be one of the biggest obstacles throughout the District.

The District Licensing Committee has conducted 9 hearings (10 held in the previous year). Three of the premises who have been referred to a hearing have been more than once and returned to ensure previous highlighted concerns had been addressed. New Manager’s Certificates and renewal of Manager’s Certificates were the most common applications to be referred to the Committee, these were for varied reasons such as suitability or lack of knowledge of the Act and the premises where employed.

Health has continued to experience an increased workload since the commencement of the Food Act 2014 with most verifications taking four times longer than those conducted under the previous Act with added commitments around the reports and logging to the national Ministry of Primary Industries database. Most verifications are conducted around the annual renewal date but due to the unique nature of COVID-19 restrictions, no onsite verifications from 23 March – 8 June 2020 were conducted and the added pressure of supporting the ski and tramping lodges situated around Mt Ruapehu who require one-on-one conversations with the Environmental Health Officer to establish their individual requirements the team is experiencing considerable backlog.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 103

Food grading for all food businesses registered with Council has increased the cooperation of food businesses to undertake any corrective actions required to deliver safe and suitable food promptly, with diners now able to make an informed decision about where they eat.

Inspections for health nuisance complaints regarding insanitary conditions have continued to be steady this year and have often been undertaken jointly with other teams within the Regulatory field where appropriate and all have achieved good results with the cooperation of the person of concern.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 104

What We Achieved

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Building Services

Council will effectively Building consents 100% 100% 100% Achieved. process all proposed processed within 20 applications. working days from request. Code Compliance 100% 100% 100% Achieved. Certificates issued within 20 working days from request. Urgent LIMs 100% 100% 100% Achieved. processed in five working days from valid application. Non-urgent LIMs 97.19% 95% 96.49% Achieved. processed in ten working days from valid application (Note 1).

Animal Control

Respond to dog 100% 100% 100% Achieved. attacks within two hours of receiving the complaint. % of all registered 54% 50% 58% Achieved. dogs by 30 June.

Environmental Health

Council will undertake Health-related food 100% 95% 100% Achieved. ongoing monitoring of hygiene complaints conditions to ensure are responded to compliance. within 24 hours working week days and 72 hours weekends and actioned within five days. Percentage of food 95% 90% 96% Achieved. premises complying with improvements requested by Environmental Health Officer as second inspection.

Notes:

Note 1: While Council strives to meet the statutory 10 working day processing timeframe, until LIMs are available electronically, there is always a potential delay through unforeseen lack of human resourcing somewhere in the process.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 105

Key Performance 2018/19 2019/20 2019/20 Level of Service Commentary Indicators Actual Target Actual

Alcohol Licencing

Ensure alcohol Percentage of alcohol 97% 95% 89% Not achieved. licensing complies with licences that comply statutory and licensing with statutory and Businesses that have provisions. licence conditions on failed to comply with first inspection. these requirements were also those who have also appeared before the District Licensing Committee on more than one occasion.

Health Related Noise

Ensure noise Less than 2 health 3 <2 <2 Achieved. complaints are related noise responded to complaints received a effectively, promptly second time. and efficiently.

Resource Management

Resource consents Land Use consents 100% 100% 100% Achieved. are processed within processed within the the legal timeframes. legal timeframes. A total of 64 applications comprising of 29 Land Use; 27 Deemed Permitted Boundary Activity (Land Use); 4 Outline Plan of Works and 4 Certificate of Compliance were processed with the legal timeframe of either 20 days or 10 days.

Subdivision consents 100% 100% 100% Achieved. processed within the legal timeframes. A total of 32 subdivision applications processed with the legal 20 day timeframe.

The public is informed % of pre-application 50% >10% 56% Achieved. about Resource meetings to number of Management applications received. processes and other issues related to maintaining a sustainable environment.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 106

Funding Impact Statement Ruapehu District Council for the year ending 30 June 2020 Regulation Activity

LTP Annual Plan Actual 2019 2020 2020 $000 $000 $000 Sources of operating funding General rates, uniform annual general charges, 1,708 1,782 1,827 rates penalties Targeted rates - - - Subsidies and grants for operating purposes - - - Fees and charges 880 984 937 Internal charges and overheads recovered - - - Local authorities fuel tax, fines, infringement fees, - - 24 and other receipts Total operating funding (A) 2,588 2,766 2,788

Applications of operating funding Payments to staff and suppliers 1,454 1,547 1,629 Finance costs - - - Internal charges and overheads applied 1,134 1,219 1,198 Other operating funding applications - - - Total application of operating funding (B) 2,588 2,766 2,827 Surplus/(deficit) of operating funding (A-B) - - (39)

Sources of capital funding Subsidies and grants for capital expenditure - - - Development and financial contributions - - - Increase/(decrease) in debt - - - Gross proceeds from sale of assets - - - Lump sum contributions - - - Other dedicated capital funding - - - Total sources of capital funding (C) - - -

Application of capital funding Capital expenditure: - To meet additional demand - - - - To improve the level of service - - - - To replace existing assets - - - Increase/(decrease) in reserves - - (39) Increase/(decrease) of investments - - - Total applications of capital funding (D) - - (39) Surplus/(deficit) of capital funding (C-D) - - 39 Funding balance ((A-B)+(C-D)) - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 PAGE 107

SECTION TWO

FINANCIAL INFORMATION

Section Two cover image: Forgotten World Adventures, Rail Cart Tours. Image courtesy of Visit Ruapehu.

TABLE OF CONTENTS – SECTION TWO

STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2020 ...... 5 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 ...... 6 STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2020 ...... 7 CONSOLIDATED STATEMENT OF CASH FLOWS ...... 8 1. STATEMENT OF ACCOUNTING POLICIES ...... 9 2. RATES REVENUE ...... 24 3. FEES AND CHARGES ...... 25 4. SUBSIDIES AND GRANTS ...... 25 5. FINANCE INCOME AND FINANCE COSTS ...... 25 6. OTHER REVENUE ...... 26 7. GAINS...... 26 8. PERSONNEL COSTS ...... 26 9. OTHER EXPENSES ...... 27 10. LOSSES ...... 27 11. CASH AND CASH EQUIVALENTS ...... 27 12. DEBTORS AND OTHER RECEIVABLES ...... 28 13. INVENTORY ...... 30 14. INVESTMENT IN ASSOCIATES ...... 30 15. OTHER FINANCIAL ASSETS ...... 31 16. PROPERTY, PLANT AND EQUIPMENT ...... 32 17. INTANGIBLE ASSETS ...... 38 18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY ...... 39 19. INVESTMENT PROPERTY ...... 39 20. CREDITORS AND OTHER PAYABLES ...... 41 21. BORROWINGS ...... 41 22. EMPLOYEE ENTITLEMENTS ...... 42 23. PROVISIONS ...... 43 24. EQUITY ...... 44 25. RECONCILIATION OF NET SURPLUS (DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES ...... 47 26. COMMITMENTS AND OPERATING LEASES ...... 48 27. CONTINGENCIES ...... 50 28. RELATED PARTY TRANSACTIONS ...... 51 29. REMUNERATION...... 52 30. SEVERANCE PAYMENTS ...... 55 31. EVENTS AFTER BALANCE DATE ...... 55 32. FINANCIAL INSTRUMENT RISKS ...... 55 33. CAPITAL MANAGEMENT ...... 59 34. COUNCIL CONTROLLED ORGANISATIONS ...... 60

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 3

35. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET ...... 61 36. COVID-19 CORONAVIRUS ...... 63 37. PREPAYMENTS, ACCRUED INCOME & INCOME IN ADVANCE ...... 64 Part C – Other Legislative Disclosures ...... 65 1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2020 – WHOLE OF COUNCIL ...... 65 2. SUPPORT FUNDING IMPACT STATEMENT ...... 66 3. OVERALL FUNDING IMPACT STATEMENT RECONCILIATION ...... 67 4. RATING BASE INFORMATION ...... 68 5. INSURANCE ...... 68 6. BENCHMARKS ...... 69

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 4

Part A – Consolidated Statements STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2020

Group and Parent For the year ended 30 June 2020

Council And Group Notes Annual Actual Actual Plan 2020 2020 2019 $000 $000 $000 Revenue Rates 2 23,701 23,506 22,913 Fees and Charges 3 2,822 3,314 2,442 Development and Financial Contributions 105 65 104 Subsidies and Grants 4 14,422 15,032 12,442 Finance Revenue 5 83 31 39 Other Revenue 6 1,531 138 1,064 Gains 7 902 - 363 Total Revenue 43,566 42,086 39,367

Expenses Personnel Costs 8 5,923 5,434 5,504 Depreciation and Amortisation Expense 18 9,280 8,912 8,938 Finance Costs 5 811 1,243 1,122 Other Expenses 9 22,378 21,369 19,385 Losses 10 352 - 660 Total Expenses 38,744 36,958 35,609

Share of Associate's Surplus / (Deficit) 8 - 7 Net Surplus / (Deficit) 4,830 5,128 3,765

Other Comprehensive Revenue and Expense Gain/(Loss) on Property, Plant and Equipment 24 6,630 7,378 14,820 Revaluations Financial Assets at Fair Value Through (32) - 13 Comprehensive Revenue and Expense Total Other Comprehensive Revenue and Expense 6,598 7,378 14,833

Total Comprehensive Revenue and Expense 11,428 12,506 18,598

Explanation of Major Variances against budget are provided in note 35. The accompanying notes form part of these financial statements.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 5

Part A – Consolidated Statements CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020

Group and Parent As at June 2020

Council And Group Notes Annual Actual Actual Plan 2020 2020 2019 $000 $000 $000 Assets Current Assets Cash and Cash Equivalents 11 2,197 2,252 500 Receivables 12 3,967 3,156 4,691 Prepayments and Accrued Income 37 1,015 1,182 985 Inventory 13 382 269 338 Other Financial Assets Current - 639 - Total Current Assets 7,561 7,498 6,514 Non-Current Assets Investment in Associates - Investment in CCOs and other similar Entities 14 48 32 39 Other Financial Assets 15 741 665 712 Property, Plant and Equipment 16 426,074 411,682 415,863 Intangible Assets 17 877 335 222 Investment Property 19 3,636 2,830 3,162 Total Non-Current Assets 431,376 415,544 419,998 Total Assets 438,937 423,042 426,512 Liabilities Current Liabilities Creditors and Other Payables 20 3,540 5,699 5,467 Borrowings 21 8,000 6,000 10,800 Employee Entitlements 22 403 547 565 Income in Advance 37 2,835 906 954 Total Current Liabilities 14,778 13,152 17,786 Non-Current Liabilities Borrowings 21 21,000 24,133 17,000 Provisions 23 199 188 194 Creditors and other Payables 20 - - - Total Non-Current Liabilities 21,199 24,321 17,194 Total Liabilities 35,977 37,473 34,980 Net Assets 402,960 385,569 391,532 Equity Accumulated Funds 24 279,876 275,995 274,911 Other Reserves 24 123,084 109,574 116,621 Total Equity Attributable to the Council 402,960 385,569 391,532

Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 6

Part A – Consolidated Statements STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2020

Group and Parent For the year ended 30 June 2020

Council And Group Notes Actual AP Actual 2020 2020 2019 $000 $000 $000 Balance at 1 July 391,532 373,063 372,934 Total Comprehensive Revenue and Expense for the 11,428 12,506 18,598 Year Balance at 30 June 24 402,960 385,569 391,532

Explanation of Major Variances against budget are provided in note 35. The accompanying notes form part of these financial statements.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 7

Part A – Consolidated Statements CONSOLIDATED STATEMENT OF CASH FLOWS

Group and Parent For the year ended 30 June 2020

Council And Group Notes Actual AP Actual 2020 2020 2019 $000 $000 $000 Cash Flows from Operating Activities Cash was received from: Receipts from Rates Revenue 23,198 23,506 22,890 Receipts from Subsidies and Grants 16,823 15,033 11,206 Interest Received 36 31 28 Dividends Received 47 - - Other Revenue 5,250 3,517 3,900 Goods and Services Tax (Net) 45,354 42,087 38,024 Cash was distributed to: Payments to Suppliers (22,614) (21,370) (19,381) Payments to Employees and Elected Members (6,521) (5,434) (5,853) Interest Paid (808) (1,243) (987) Goods and Services Tax (Net) 131 - (237) (29,812) (28,047) (26,458) Net Cash Flow from Operating Activities 25 15,542 14,040 11,566

Cash Flows from Investing Activities Cash was received from: Investment in Subsidiary (CCO): Visit Ruapehu Ltd 269 Receipts from Sale of Property, Plant and 134 - 10 Equipment Receipts from Sale of Investments 75 - 639 478 - 649 Cash was distributed to: Purchase of Property, Plant and Equipment (14,513) (17,819) (15,258) Purchase of Intangible Assets (841) - - Purchase of Investments (169) - (709) (15,523) (17,819) (15,967) Net Cash Flow from Investing Activities (15,045) (17,819) (15,318)

Cash Flows from Financing Activities Cash was received from: Proceeds from Borrowings 14,800 3,779 14,300 14,800 3,779 14,300 Cash was distributed to: Repayment of Borrowings (13,600) - (12,300) (13,600) - (12,300) Net Cash Flow from Financing Activities 1,200 3,779 2,000

Net Increase/(Decrease) in Cash, Cash 1,697 - (1,752) Equivalents and Bank Overdrafts Cash, Cash Equivalents and Bank Overdrafts at the 500 2,252 2,252 beginning of the year Cash, Cash Equivalents and Bank Overdrafts at 11 2,197 2,252 500 the end of the year

Explanation of Major Variances against budget are provided in note 36. The accompanying notes form part of these financial statements.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 8 Part B – Notes to the Financial Statements for Council and Group

1. STATEMENT OF ACCOUNTING POLICIES

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

The group consists of: . The ultimate parent, Ruapehu District Council. . RDC Holdings Ltd (100% owned subsidiary) which is non-trading. . Manawatu Wanganui LASS Ltd (14.29%) which is equity accounted (an associate). . Visit Ruapehu Limited (100% owned Council Controlled Organisation) CCO.

All subsidiaries and associated entities are established and domiciled in New Zealand.

The financial statements reflect the consolidated results for RDC and group. The only subsidiary of Council (RDC Holdings Limited) is non-active and has no revenue, expenditure, assets or liabilities and there have been no transactions recorded in 2019/20 (Nil 2018/19) as Group and Parent accounts are materially the same. RDC Holdings Limited has a balance date of 30 June 2020.

Visit Ruapehu Limited was incorporated on 23 August 2019, as a Council Controlled Organisation (CCO) with Ruapehu District Council being the 100% owner. This new organisation replaced the Ruapehu Regional Tourism Organisation (RTO) Trust, which was operating from 2009 until it was wound up by a Trustees resolution on 17 October 2019 under a Deed of Confirmation. The assets were transferred to Visit Ruapehu Limited, free of all charges and encumbrances and all the Trusts debts and liabilities were paid.

Only Group (consolidated) accounts have been prepared.

The Council and Group provide local infrastructure, local public services, and perform regulatory functions. The Council does not operate to make a financial return. The Council has designated itself and the group as public benefit entities (PBEs) for financial reporting purposes.

The financial statements of the Council and Group are for the year ended 30 June 2020. The financial statements will be authorised for issue by Council on 11 December 2020. RDC Holdings Ltd and Visit Ruapehu Limited has the same balance date as Council.

Basis of Preparation The financial statements have been prepared on the going concern basis. The accounting policies have been applied consistently throughout the period.

Statement of Compliance The financial statements of the Council and Group have been prepared in accordance with the requirements of the LGA which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP).

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

The PBE accounting standards that have been issued but are not yet effective are as follows;

Financial Instruments In January 2017, the XRB issued PBE IFRS 9 Financial Instruments. PBE 9 replaces PBE IPSAS 29 Financial Instruments: Recognition and Measurement. PBE IFRS 9 is effective for annual periods beginning on or after 1 January 2021, with early adoption permitted. The main changes under PBE IFRS 9 are:

. New financial asset classification requirements for determining whether an asset is measured at fair value or amortised cost.

. A new impairment model for financial assets based on expected losses, which may result in the earlier recognition of impairment losses.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 9 Part B – Notes to the Financial Statements for Council and Group

. Revised hedge accounting requirements to better reflect the management of risks.

The Council plans to apply this standard in preparing its 30 June 2022 financial statements.

Amendments are also made to PBE IPSAS 17 Property, Plant and Equipment and PBE IPSAS 31 Intangible Assets as a result of the amendments to PBE IPSASs 21 and 26.

Previously there was some uncertainty about the requirements relating to the recognition of an impairment loss when an item of revalued property, plant and equipment was damaged or no longer available for use. The issue was whether the entire class of assets needed to be revalued when an impairment loss on damaged/unusable property, plant and equipment was recognised.

This standard removes the uncertainty by including revalued property, plant and equipment and revalued intangible assets in the scope of the impairment standards.

Service Performance Reporting (PBE FRS 48) This standard is mandatory for annual reporting periods beginning on or after 1 January 2021. There has been no PBE Standard dealing solely with service performance reporting. This Standard establishes new requirements for public benefit entities (PBEs) to select and present service performance information.

The Council and group has not yet assessed the effects of these new standards.

Presentation Currency and Rounding The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 10 Part B – Notes to the Financial Statements for Council and Group

Summary of Significant Accounting Policies

Basis of Consolidation The consolidated financial statements comprise the financial statements of Ruapehu District Council and its CCOs and subsidiaries as at 30 June 2020.

CCOs and subsidiaries are entities controlled by the group. Control is achieved when the group has the power to govern their financial and operating policies. In order to establish control, the controlling entity presently have exercisable power to govern decision making to be able to benefit from the activities of the other entity. Consolidation of a subsidiary begins when the group obtains control over the subsidiary and ceases when the group loses control of the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statements from the date the group gains control until the date the group ceases to control the subsidiary. The accounting policies of controlled entities are consistent with the policies adopted by the controlling entity, or if not, adjustments are made to the consolidated financial statements to bring alignment of subsidiaries with the group’s accounting policies. All intra-group balances, transactions, income, expenses, and cash flows relating to transactions between members of the group are eliminated in full on consolidation.

The substantive subsidiary within the group is Visit Ruapehu Limited. Visit Ruapehu Limited was incorporated on 23 August 2019, as a Council Controlled Organisation (CCO) with Ruapehu District Council being the 100% owner. This new organisation replaced the Ruapehu Regional Tourism Organisation (RTO) Trust, which was operating from 2009 until it was wound up by a Trustees resolution on 17 October 2019 under a Deed of Confirmation. The assets were transferred to Visit Ruapehu Limited, free of all charges and encumbrances and all the Trusts debts and liabilities were paid. Its principal activities involve the development and marketing of tourism in the Ruapehu District.

The following parts of the group are exempt activities: . RDC Holdings Ltd (100% owned subsidiary) which is non-trading. . Manawatu Whanganui LASS Ltd (14.29%) which, is equity accounted (an associate) . Visit Ruapehu Limited (100% owned Council Controlled Organisation) CCO.

Implementation of new and amended standards PBE Standards on interests in other entities: . PBE IPSAS 34 Separate Financial Statements; . PBE IPSAS 35 Consolidated Financial Statements; . PBE IPSAS 36 Investments in Associates and Joint Ventures; . PBE IPSAS 37 Joint Arrangements; and . PBE IPSAS 38 Disclosure of Interests in Other Entities.

Basis of Reporting The New Zealand Accounting Standards Board issued these standards to incorporate the equivalent standards issued by the International Public Sector Accounting Standards Board into PBE Standards. These standards replace PBE IPSAS 6 Consolidated and Separate Financial Statements, PBE IPSAS 7 Investments in Associates and PBE IPSAS 8 Interests in Joint Ventures.

The group adopted these standards with effect from 1 July 2019. The key changes introduced by the new standards and the expected impact on the group are as follows:

(a) Control: The new standards introduce an amended definition of control including extensive guidance on this definition, which if applicable, result in consolidation of entities that are not owned by virtue of shareholding. The adoption of new standards has not resulted in the consolidation of additional entities.

(b) Investment entities: The standards introduce the concept of an “investment entity”. They exempt investment entities from consolidating controlled entities and instead require investment entities to recognise controlled entities at fair value through surplus or deficit. These requirements do not apply to the group, as neither the council nor any of its controlled entities meet the definition of an investment entity.

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(c) Joint arrangements: PBE IPSAS 37 introduces a new classification of joint arrangements, sets out the accounting requirements for each type of arrangement (joint operations and joint ventures), and removes the option of using the proportionate consolidation method. These requirements do not apply to the group, none of the councils controlled entities meet the definition of an joint arrangement.

(d) Disclosures of interests in other entities: The standards require PBEs to disclose information of their interests in other entities, including some additional disclosures that are not currently required under PBE IPSAS 6, 7 and 8. This will result in additional disclosures for the group regarding the group’s controlled entities, associates and joint arrangements.

Investment in Subsidiaries Investment in subsidiaries includes the investment in CCOs. These investments are carried at cost less any accumulated impairment.

Investments in Associates Investments in associates are accounted for using the equity method in the group and the council financial statements. The investment is initially recognised at cost and the carrying amount is increased or decreased to recognise the share of the surplus or deficit of the associate or joint venture after the date of acquisition. Distributions received reduce the carrying amount of the investment. Where necessary, adjustments are made to the financial statements of associates and joint ventures to bring their accounting policies in line with the group.

Revenue Revenue is measured at fair value of consideration received or receivable. Revenue may be derived from either exchange or non-exchange transactions.

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

Revenue derived through the provision of services to third parties in a commercial manner is recognised in proportion to the stage of completion at balance date.

Revenue from asset management services is recognised when provided to the customer.

Interest revenue is recognised using the effective interest method. Interest revenue on an impaired financial asset is recognised using the original effective interest rate.

Dividends are recognised when the right to receive payment has been established. When dividends are declared from pre-acquisition surpluses, the dividend is deducted from the cost of the investment.

Non-Exchange Transactions Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, Council either receives value from or gives value to another entity without directly giving or receiving approximately equal value in exchange or where the value given or received is not able to be accurately measured. This includes transactions for activities which are subsidised through rates.

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

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

The specific accounting policies relating to significant revenue items follow.

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Rates Revenue The following policies for rates have been applied: . General rates and targeted rates (excluding water-by-meter), are recognised at the start of the financial year to which the rates resolution relates. They are recognised at the amounts due. The Council considers that the effect of payment of rates by instalments is not sufficient to require discounting of rates receivables and subsequent recognition of interest revenue.

. Rates arising from late payment penalties are recognised as revenue when rates become overdue.

. Revenue from water-by-meter rates is recognised on an accrual basis based on usage. Unbilled usage, as a result of unread meters at year end, is accrued on an average usage basis.

. Rates remissions are recognised as a reduction of rates revenue when the Council has received an application that satisfies its rates remission policy.

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

New Zealand Transport Agency Roading Subsidies The Council receives funding assistance from the New Zealand Transport Agency (NZTA), which subsidises part of the costs of maintenance and capital expenditure on the local roading infrastructure. The subsidies are recognised as revenue upon entitlement, as conditions pertaining to eligible expenditure have been fulfilled.

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

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

Landfill Fees Fees for disposing of waste at the Council’s landfill are recognised as waste is disposed by users.

Infringement Fees and Fines Infringement fees and fines mostly relate to traffic and parking infringements and are recognised when the infringement notice is issued. The fair value of this revenue is determined based on the probability of collecting fines, which is estimated by considering the collection history of fines.

Vested or Donated Physical Assets For assets received for no or nominal consideration, the asset is recognised at its fair value when the Council obtains control of the asset. The fair value of the asset is recognised as revenue, unless there is a use or return condition attached to the asset.

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

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

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 13 Part B – Notes to the Financial Statements for Council and Group

Donated and Bequeathed Financial Assets Donated and bequeathed financial assets are recognised as revenue unless there are substantive use or return conditions. A liability is recorded if there are substantive use or return conditions and the liability released to revenue as the conditions are met (e.g. as the funds are spent for the nominated purpose).

Liabilities Income in Advance Income in Advance is predominantly made up of Central Government Grants for work that is yet to be completed and from rates and dog registrations paid in advance, these are non-exchange transactions.

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

Grant Expenditure Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received.

Discretionary grants are those grants where the Council has no obligation to award on receipt of the grant application and are recognised as expenditure when approved by the Council and the approval has been communicated to the applicant. The Council’s grants awarded have no substantive conditions attached.

Leases Operating Leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset.

Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.

Lease incentives received are recognised in the surplus or deficit as a reduction of rental expense over the lease term.

Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.

Receivables Receivables are recorded at their face value, less any provision for impairment.

Other Financial Assets Financial assets are initially recognised at fair value plus transaction costs unless they are carried at fair value through surplus or deficit in which case the transaction costs are recognised in the surplus or deficit.

Purchases and sales of financial assets are recognised on trade-date, the date on which the Council and group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council and group has transferred substantially all the risks and rewards of ownership.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 14 Part B – Notes to the Financial Statements for Council and Group

Financial assets are classified into the following categories for the purpose of measurement:

. fair value through surplus or deficit; . loans and receivables; . held-to-maturity investments; and . fair value through other comprehensive revenue and expense.

The classification of a financial asset depends on the purpose for which the instrument was acquired.

Financial Assets at Fair Value through Surplus or Deficit Financial assets at fair value through surplus or deficit include financial assets held for trading or is designated as such on initial recognition.

Financial assets acquired principally for the purpose of selling in the short-term or part of a portfolio classified as held for trading are classified as a current asset.

After initial recognition, financial assets in this category are measured at their fair values with gains or losses on re-measurement recognised in the surplus or deficit.

Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets.

After initial recognition, they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit. Held-To-Maturity Investments Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities and there is the positive intention and ability to hold to maturity. They are included in current assets, except for maturities greater than 12 months after balance date, which are included in non-current assets.

After initial recognition they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.

Fair Value through other Comprehensive Revenue and Expense Financial assets at fair value through other comprehensive revenue and expense are those that are designated into the category at initial recognition or are not classified in any of the other categories above. They are included in non-current assets unless Council intends to dispose of, or realise, the investment within 12 months of balance date. The Council and group includes in this category: . Investments that it intends to hold long-term but which may be realised before maturity; and . Shareholdings that it holds for strategic purposes.

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

Impairment of Financial Assets Financial assets are assessed for evidence of impairment at each balance date. Impairment losses are recognised in the surplus or deficit.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 15 Part B – Notes to the Financial Statements for Council and Group

Loans and Receivables and Held-To-Maturity Investments Impairment is established when there is evidence that the Council and group will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, receivership, or liquidation and default in payments are indicators that the asset is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. Overdue receivables that have been renegotiated are reclassified as current (that is, not past due). Impairment in term deposits, local authority stock, government bonds, and community loans, are recognised directly against the instrument’s carrying amount.

Financial Assets at Fair Value through other Comprehensive Revenue and Expense For equity investments, a significant or prolonged decline in the fair value of the investment below its cost is considered objective evidence of impairment. For debt investments, significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy and default in payments, are objective indicators that the asset is impaired.

If impairment evidence exists for investments at fair value through other comprehensive revenue and expense, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit) recognised in other comprehensive revenue and expense is reclassified from equity to the surplus or deficit.

Equity instrument impairment losses recognised in the surplus or deficit are not reversed through the surplus or deficit.

If in a subsequent period the fair value of a debt instrument increases, and the increase can be objectively related to an event occurring after the impairment loss was recognised, the impairment loss is reversed in the surplus or deficit.

Inventory Inventories held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at cost (using the FIFO method), adjusted, when applicable, for any loss of service potential.

Inventories acquired through non-exchange transactions are measured at fair value at the date of acquisition.

Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost (using the FIFO method) and net realisable value. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in the surplus or deficit in the period of the write-down.

Assets held for Sale Assets held for sale are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. Assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

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

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

Assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 16 Part B – Notes to the Financial Statements for Council and Group

Property, Plant and Equipment Property, plant and equipment consist of:

Operational Assets – These include land, buildings, parks and reserves improvements, library books, plant vehicles, computer equipment and office equipment.

Restricted Assets – Restricted assets are mainly parks and reserves owned by Council that provide a benefit or service to the community and cannot be disposed of because of legal or other restrictions.

Infrastructure Assets – Infrastructure assets are the fixed utility systems owned by Council. Each asset class includes all items that are required for the network to function. For example, sewer reticulation includes reticulation piping and sewer pump stations.

Land (operational and restricted) – Is measured at fair value, and buildings (operational and restricted) and infrastructural assets (except land under roads) are measured at fair value less accumulated depreciation. All other operational and restricted asset classes are measured at cost less accumulated depreciation and impairment losses.

Revaluation Land and buildings (operational and restricted) and infrastructural assets (except land under roads) are revalued annually.

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

The net revaluation results are credited or debited to other comprehensive revenue and expense and are accumulated to an asset revaluation reserve in equity for that class-of-asset. Where this would result in a debit balance in the asset revaluation reserve, this balance is not recognised in other comprehensive revenue and expense but is recognised in the surplus or deficit. Any subsequent increase on revaluation that reverses a previous decrease in value recognised in the surplus or deficit will be recognised first in the surplus or deficit up to the amount previously expensed and then recognised in other comprehensive revenue and expense.

Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Council and group and the cost of the item can be measured reliably.

Work in progress is recognised at cost less impairment and is not depreciated.

In most instances, an item of property, plant and equipment is initially recognised at its cost. Where an asset is acquired through a non-exchange transaction, it is recognised at its fair value as at the date of acquisition.

Disposals Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are reported in the surplus or deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to accumulated funds.

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

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

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 17 Part B – Notes to the Financial Statements for Council and Group

Depreciation Property, plant and equipment depreciation is provided on a straight line (SL) or diminishing value (DV) basis at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives.

Infrastructure asset depreciation rates are based on the remaining useful life for each individual asset component. These rates are on a straight line basis.

The revaluation approach, useful lives and associated depreciation rates of major classes of assets have been estimated as per the next page.

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

Any work undertaken on infrastructure assets to reinstate (termed “renewal”) or add to the service potential of the asset is capitalised.

The useful lives and associated depreciation rates of major classes of assets have been estimated as per the following table:

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 18 Part B – Notes to the Financial Statements for Council and Group

Useful Lives and Depreciation Rates

Measurement Property, Plant and Equipment Estimated Life Depreciation Rate Basis (*1) Buildings (Excluding Investment RAD 10 – 100 Years 1 - 20% SL Property) Other Improvements CAD 10 – 100 Years 1 – 17.5% SL Computer Equipment CAD 2.5 Years 40% DV Office Equipment, Furniture and CAD 5 Years 20% DV Fittings Library Books CAD 10 Years 10% SL Plant and Vehicles CAD 3.33 – 10 Years 5 – 25% SL Measurement Roads and Footpaths Estimated Life Depreciation Rate Basis (*1) Top Surface (Seal) RAD 15 Years 6.67% SL Pavement (Base Course) RAD 100 Years 1% SL Culverts RAD 70 – 100 Years 1 – 1.43% SL Footpaths RAD 20 – 80 Years 1.25 – 5% SL Kerbs RAD 80 – 100 Years 1 – 1.25% SL Signs RAD 10 Years 10 – 11.1% SL Street Lights RAD 20 – 25 Years 4 – 5% SL Bridges RAD 70 – 100 Years 1 – 2.77% SL Measurement Water Supply Estimated Life Depreciation Rate Basis (*1) Pipes RAD 50 – 100 Years 1 – 2% SL Valves and Hydrants RAD 15 – 70 Years 1 – 6.67% SL Pump Stations RAD 10 – 60 Years 1.25 – 10% SL Tanks RAD 25 – 80 Years 1 – 6.67% SL Treatment Plants RAD 5 – 104 Years 0.96% – 20% SL Measurement Wastewater Estimated Life Depreciation Rate Basis (*1) Pipes RAD 50 – 100 Years 1 – 2% SL Manholes and Cesspits RAD 50 – 75 Years 1.33 – 4% SL Pump Stations RAD 10 – 60 Years 0.88 – 33.3% SL Treatment Plants RAD 10 – 200 Years 0.5 – 33.3% SL Measurement Stormwater Estimated Life Depreciation Rate Basis (*1) Pipes RAD 40 – 100 Years 1 – 50% SL Manholes and Cesspits RAD 75 Years 1.33 – 20% SL Measurement Solid Waste Estimated Life Depreciation Rate Basis (*1) Various RAD 20 – 70 Years 1.33 - 6% SL Measurement Other (Not Depreciated) Estimated Life Depreciation Rate Basis (*1) Land REV Formation Costs for Roading COST Stop Banks REV Work In Progress and Assets COST Under Construction

*1 CAD = Cost Less Accumulated Depreciation And Impairment Losses. RAD = Revaluation Less Subsequent Depreciation. REV = Revaluation (Not Depreciated). COST = Cost.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 19 Part B – Notes to the Financial Statements for Council and Group

Intangible Assets Software Acquisition and Development Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.

Costs that are directly associated with the development of software for internal use are recognised as an intangible asset. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised in the surplus or deficit when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and maintenance of the Council’s website are recognised as an expense when incurred.

Amortisation The carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the surplus or deficit. The useful lives and amortisation rates have been estimated as follows:

Amortisation Amortisation Rates Intangibles Estimated Life Rate Computer Software 3 years 33.3% SL Pipiriki Wastewater Treatment Plant Resource Consent 22 years 5% SL

Impairment of Property, Plant and Equipment and Intangible Assets Intangible assets subsequently measured at cost that have an indefinite useful life, or are not yet available for use, are not subject to amortisation and are tested annually for impairment.

Property, plant and equipment and intangible assets subsequently measured at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

If an asset’s carrying amount exceeds its recoverable amount, the asset is regarded as impaired and the carrying amount is written-down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit.

Value in Use for Non-Cash-Generating Assets Non-cash-generating assets are those assets that are not held with the primary objective of generating a commercial return. For non-cash generating assets, value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information.

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

Investment property is measured initially at its cost, including transaction costs.

After initial recognition, all investment property is measured at fair value at each reporting date. Gains or losses arising from a change in the fair value of investment property are recognised in the surplus or deficit.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 20 Part B – Notes to the Financial Statements for Council and Group

Payables Short-term creditors and other payables are recorded at their face value.

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

Borrowings are classified as current liabilities unless the Council or group has an unconditional right to defer settlement of the liability for at least 12 months after balance date.

Employment Entitlements Short-Term Employee Entitlements Employee benefits expected to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date.

A liability and an expense are recognised for bonuses where the Council or group has a contractual obligation or where there is a past practice that has created a constructive obligation.

The Council expects all employee entitlements to be settled within 12 months of balance date.

Superannuation Schemes Defined Contribution Schemes Obligations for contributions to KiwiSaver are accounted for as defined contribution superannuation schemes and are recognised as an expense in the surplus or deficit when incurred.

Provisions A provision is recognised for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that an outflow of future economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense and is included in “finance costs”.

Equity Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities.

Equity is disaggregated and classified into the following components: . Accumulated funds; . Restricted reserves; . Asset revaluation reserve; . Fair value through other comprehensive revenue and expense reserve.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 21 Part B – Notes to the Financial Statements for Council and Group

Restricted Reserves Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by the Council.

Restricted reserves include those subject to specific conditions accepted as binding by the Council and which may not be revised by the Council without reference to the Courts or a third party. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met.

Also included in restricted reserves are reserves restricted by Council decision. The Council may alter them without reference to any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council.

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

Fair Value through Other Comprehensive Revenue and Expense Reserve This reserve comprises the cumulative net change in the fair value of assets classified as fair value through other comprehensive revenue and expense.

Goods and Services Tax All items in the financial statements are stated exclusive of GST, except for receivables and payables. Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from, or payable to, the IRD is included as part of receivables or payables in the statement of financial position.

The net GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.

Budget Figures The budget figures are those approved by the Council for the year 2018/19 in its Long Term Plan 2018-28. The budget figures have been prepared in accordance with NZ GAAP, using accounting policies that are consistent with those adopted in preparing these financial statements.

Cost Allocation The cost of service for each significant activity of the Council has been derived using the cost allocation system outlined below:

. Direct costs are those costs directly attributable to a significant activity.

. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific significant activity.

Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as staff numbers and size of budgets.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 22 Part B – Notes to the Financial Statements for Council and Group

Critical Accounting Estimates and Assumptions In preparing these financial statements, estimates and assumptions have been made concerning the future.

These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Infrastructural Assets - Note 16 provides information about the estimates and assumptions applied in determining the fair value of infrastructural assets.

Landfill Aftercare Provision - Note 23 provides information about the estimates and assumptions surrounding the landfill aftercare provision.

Critical Judgements in Applying Accounting Policies Management has exercised the following critical judgements in applying accounting policies for the year ended 30 June 2020.

Classification of Property The Council owns a number of properties held to provide housing to pensioners. The receipt of market-based rental from these properties is incidental to holding them. The properties are held for service delivery objectives as part of the Council’s social housing policy. The properties are therefore classified as property, plant and equipment rather than as investment property.

Parcels of land held for an undetermined future use that are classified as Investment Property may be re- classified in the future if the land use changes.

Taumarunui Airport and Ohakune Railway station are held for strategic reasons rather than for generation of revenue and are therefore classified as property, plant and equipment rather than as investment property.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 23 Part B – Notes to the Financial Statements for Council and Group

2. RATES REVENUE

Actual Actual 2020 2019 $000 $000 General Rates 11,530 11,121 Targeted Rates Attributable to Activities: Community Support 605 539 Leadership 358 363 Land Transport 3,823 3,815 Stormwater 444 431 Wastewater 2,412 2,218 Water 3,421 3,131 Solid Waste 705 764 Rates Penalties 403 531 Total Rates Revenue 23,701 22,913

Of the total rates revenue, $270,865 (2019: $270,513) is for rates paid to Council by Council on properties it owns or leases.

Rates Remissions Rates revenue is shown net of rates remissions. The Council rates remission policy allows rates to be remitted on land used for sport, land protected for historical or cultural purposes and contiguous and land-locked properties.

Actual Actual 2020 2019 $000 $000 Total Gross Rates Revenue 24,290 23,522 Rates Remissions: - Land used for Sport, Clubs and Societies 10 19 - Land protected for Historical or Cultural Purposes 47 45 - Contiguous and Land-Locked Properties 387 392 - Community Organisations 145 153 Total Remissions 589 609 Rates Revenue Net of Remissions 23,701 22,913

Non-Rateable Land Under the Local Government (Rating) Act 2002, certain properties cannot be rated for general rates. These properties include schools, places of religious worship, public gardens and reserves. These non-rateable properties may be subject to targeted rates in respect of wastewater, water, refuse and sanitation. Non-rateable land does not constitute a remission under Council’s Rates Remission Policy.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 24 Part B – Notes to the Financial Statements for Council and Group

3. FEES AND CHARGES

Actual Actual 2020 2019 $000 $000 User Charges 1,301 1,016 Regulatory Revenue 313 266 Rental Charges 448 438 Refuse Charges 760 722 Total Fees and Charges (Non-Exchange) 2,822 2,442

4. SUBSIDIES AND GRANTS

Actual Actual 2020 2019 $000 $000 New Zealand Transport Agency (NZTA) Roading Subsidies Operational Subsidies 5,919 5,337 Capital Subsidies 6,979 6,932 Streetlight Cost Recovery 121 66 Total NZTA Subsidies 13,019 12,335

Other Subsidies Operational Central Govt Subsidies 506 - Capital Central Govt Subsidies 881 100 Other Miscellaneous Subsidies 16 7 Total Other Subsidies 1,403 107 Total Subsidies and Grants (Non-Exchange) 14,422 12,442

5. FINANCE INCOME AND FINANCE COSTS

Actual Actual 2020 2019 $000 $000 Finance Income Interest Income 36 39 Dividend Income 47 - Total Finance Income (Exchange) 83 39

Finance Costs Interest Expense - Interest on Borrowings 806 995 - Discount unwind on Provisions 5 6 - Amortization of RAL loan - Gondola - 121 Total Finance Costs 811 1,122 Net Finance Costs 728 1,083

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 25 Part B – Notes to the Financial Statements for Council and Group

6. OTHER REVENUE

Actual Actual 2020 2019 $000 $000 Non-Exchange Infringements and Fines 24 23 Petrol Tax 143 155 Vested Assets - - Other 821 350 Total Non-Exchange Revenue 988 528

Exchange Rental Revenue (from Investment Properties) 30 21 Other 513 515 Total Exchange Revenue 543 536

Total Other Revenue 1,531 1,064

7. GAINS

Actual Actual 2020 2019 $000 $000 Non-Financial Instruments Investment in Subsidiary (CCO): Visit Ruapehu Ltd 131 - Gain on Disposal of Assets 196 - Fair Value Gain on Investment Property Valuation 575 363 Revaluation of PP&E through P&L - - Total Non-Financial Instrument Gains 902 363

8. PERSONNEL COSTS

Actual Actual 2020 2019 $000 $000 Salaries and Wages 5,930 5,347 Defined Contribution Plan Employer Contributions 155 140 Increase / (Decrease) in Employee Entitlements (162) 17 Other Employee Benefits - - Total Personnel Costs 5,923 5,504

Employer contributions to defined contribution plans include contributions to KiwiSaver. Salaries and Wages are paid in arrears, and timing of the actual payments to staff, will change from year to year, depending on how close to the year end a pay period falls on. The effect of this will see changes from year to year in the Increase/Decrease in Employee Entitlements.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 26 Part B – Notes to the Financial Statements for Council and Group

9. OTHER EXPENSES

Actual Actual 2020 2019 $000 $000 Fees to Principal Auditor - Fees to Audit NZ for the Audit Of RDC's Financial Statements 151 148 - Fees to Audit NZ for the Audit of the LGFA Debenture Trust Deed 6 - Total Fees to Principal Auditor 157 148

Roading Maintenance 6,716 5,603 All Other Maintenance 6,075 5,481 Consultants and Legal Fees 2,311 1,702 Rental Expenses 367 504 Operating Lease Expenditure 136 157 Impairment of Receivables (Note 12) 317 41 Other Operating Expenses 6,299 5,749 Total Other Expenses 22,378 19,385

The 2020 Audit fee includes $6k for the Audit of the LGFA Trust Deed for the 2018/19 financial year.

10. LOSSES

Actual Actual 2020 2019 $000 $000 Non-Financial Instruments Losses on Disposal of Assets 352 660 Total Losses 352 660

11. CASH AND CASH EQUIVALENTS

Actual Actual 2020 2019 $000 $000 Cash at Bank and On Hand 2,197 500 Total Cash and Cash Equivalents 2,197 500

The carrying value of cash at bank and term deposits with original maturities less than three months approximates their fair value.

The Council holds unspent funds, included in cash at bank of $62k (2019:$65k) that are subject to restrictions. These unspent funds include proceeds from the sale of the Forestry Sale in 2019 held for benefit of the Ohakune and Raetihi Communities (Note 24.).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 27 Part B – Notes to the Financial Statements for Council and Group

12. DEBTORS AND OTHER RECEIVABLES

Actual Actual 2020 2019 $000 $000 Non-Exchange Rates Receivables 2,519 2,219 Other Receivables 1,905 2,674 Infringement Receivables - - 4,424 4,893 Less Provision for Impairment (457) (202) 3,967 4,691 Exchange Other Receivables - -

Total Debtors and Other Receivables 3,967 4,691

Fair Value Debtors and other receivables are non-interest bearing and receipt is normally on 30 day terms. Therefore, the carrying value of debtors and other receivables approximates their fair value.

Impairment Council provides for impairment on rates receivables although it has various powers under the Local Government (Rating) Act 2002 to recover any outstanding debts. These powers allow Council to commence legal proceedings to recover any rates that remain unpaid four months after the due date for payment. If payment has not been made within three months of the Court's judgement, Council can apply to the Registrar of the High Court to have the judgement enforced by sale or lease of the rating unit.

Ratepayers can apply for payment plan options in special circumstances. Where such repayment plans are in place, debts are discounted to their present value of future payments if the effect of discounting is material.

Gross 2020 Impairment Net 2020 Net 2019 Rates Receivables $000 $000 $000 $000 Not Past Due – Current Year 1,359 159 1,200 1,181 Past Due by 1 Year 465 94 371 357 Past Due by 2+ Years 695 144 551 497 Total 2,519 397 2,122 2,035

Other Receivables 2020 2019 Ageing Profile At Year End Gross Impairment Net Gross Impairment Net

Not Past Due 1-30 1,570 - 1,570 2,424 - 2,424 Past Due 1-60 Days 39 - 39 24 - 24 Past Due 60-120 Days 145 45 100 135 18 117 Past Due > 120 Days 151 15 136 91 - 91 Total 1,905 60 1,845 2,674 18 2,656

The impairment provision has been calculated based on a review of specific overdue receivables and a collective assessment. The collective impairment provision is based on an analysis of past collection history and debt write-offs.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 28 Part B – Notes to the Financial Statements for Council and Group

Actual Actual Impairment Profile 2020 2019 $000 $000 Individual Impairment 60 18 Collective Impairment 397 184 Total Provision For Impairment 457 202

Individually impaired receivables have been determined to be impaired because there is a dispute over a significant receivable.

Actual Actual Individually Impaired Receivable 2020 2019 $000 $000 Past Due 61 - 120 Days - - Past Due > 120 Days 60 18 Total Provision For Impairment 60 18

Actual Actual Collectively Impaired Receivable 2020 2019 $000 $000 Past Due 61 - 120 Days - - Past Due > 120 Days 397 184 Total Provision For Impairment 397 184

Actual Actual Impairment Source 2020 2019 $000 $000 Rates Debtors 397 184 Sundry Invoice Debtors 45 18 Infringement Debtors 15 - Total Provision For Impairment 457 202

Actual Actual Movement In Impairment Provision 2020 2019 $000 $000 At 1 July 202 488 Provision Reclassification - - Total 202 488

Additional Provisions made during the year 318 41 Provisions Reversed during the year (63) (142) Receivables Written Off during the year - (185) At 30 June 457 202

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 29 Part B – Notes to the Financial Statements for Council and Group

13. INVENTORY

Actual Actual 2020 2019 $000 $000 Merchandise Visitor and Service Centres 82 93 Blue Recycling Bins 8 11 Critical Spares for Operations 292 234 Total Inventory at 30 June 382 338

No inventory is pledged as security for borrowings or payables.

14. INVESTMENT IN ASSOCIATES

Actual Actual 2020 2019 $000 $000 Investment In Associates - Investment In Manawatu-Wanganui LASS Ltd 48 39 48 39 Manawatu Wanganui Lass Ltd Summarised financial information of associates presented on a gross

basis Assets 484 559 Liabilities 222 355 Revenues 1,157 1,204 Surplus/(Deficit) 59 52 RDC’s Share of Surplus/(Deficit) 8 7 RDC's Interest 14.29% 14.29%

All entities have a reporting date of 30 June. The actuals for 2020 are based on unaudited financial statements.

The share of surplus/deficit in the Statement of Comprehensive Revenue and Expenditure includes any movement in prior years results post publication of Council’s Annual Report, when the Associates final numbers became available. None of the Council’s associates have contingent liabilities.

An investor is deemed to have significant influence if it has 20% or more of the voting or potential voting power of the investee. In Ruapehu District Council’s case it holds less than 20% of the associates but is deemed to have significant influence by its representation on the Board.

Manawatu-Wanganui Local Authority Shared Services Limited (MW LASS Ltd)

MW LASS Ltd was formed in October 2008 to provide an ‘umbrella vehicle’ for the councils of the Manawatu- Wanganui region to investigate, procure, develop and deliver shared services.

Such services will be initiated under the umbrella of MW LASS Ltd where a business case shows that they provide benefits to the council users by either improved levels of service, reduced costs, improved efficiency and/or increased value through innovation. Current feasibility studies being undertaken include GIS, Aerial photography and joint procurement.

MW LASS Ltd has been exempted according to section 7 of the Local Government Act 2002. It is therefore not a Council Controlled Organisation for the purposes of the Act.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 30 Part B – Notes to the Financial Statements for Council and Group

15. OTHER FINANCIAL ASSETS

Actual Actual 2020 2019 $000 $000 Non-Current Portion Other Investments: - Unlisted Shares in Civic Assurance 53 91 - Loan to Kakahi Water Board Supply Limited 15 13 - Emissions Trading Scheme ETS - 10 - LGFA Borrower Note – Long Term 272 208 - RAL Term Loan – Gondola 401 390 Total Non-Current Portion 741 712 Total Other Financial Assets 741 712

Council owns an 8.33% share in the Manawatu Wanganui Regional Disaster Relief Fund Trust. The Trust is not in operation and the value of the Trust is therefore nil. Should the Trust come into operation, Council will not be in receipt of any funds from the Trust, unless the District is struck by a disaster.

In the event of the Trust being wound up, the surplus assets and funds, after payment of the Trust’s liabilities, including expenses of winding up, shall not be paid or distributed among the Trustees or the Local Authorities, but shall be paid and transferred to such person or body corporate, for the furtherance of charitable purposes within New Zealand, as the Trustees shall determine at the meeting, when the resolution for winding up is duly confirmed.

During the 2018/19 Financial Year Council entered into a loan to RAL for the gondola project for $500k. At 30 June 2020, the discounted present value was $401k (2019: $390k) as per PBE IPSAS accounting standards. It will be repaid in 9 years’ time at the full loan value of $500k.

Fair Value The carrying amount of other financial assets approximates their fair value. More details are shown in note 32.

Other Investments The investments in Civic Assurance are valued according to Council’s share of the net assets in their financial statements. The investment in Civic Assurance is held for strategic purposes, and Council does not intend to dispose of the asset. During the 2020 Financial Year, the organisation undertook a dividend payout to shareholders, which has reduced Council’s value of this Investment.

The loan to Kakahi Water Board Supply Limited is a loan for unpaid rates, that is a fixed term, with an option of early termination, should the timber on the land be felled before expiry of the loan. Council will either receive the outstanding loan amount, or an agreed portion of the timber revenue, whichever is higher.

The investment in ETS credits is an investment intended to be held until they are needed to satisfy carbon emissions obligations.

Impairment Due to a diluted share of ownership of Civic Assurance, there was an impairment of the investment of $14,623 in 2013. There were no additional impairments in 2019 or 2020.

None of the other financial assets are past due or impaired.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 31 Part B – Notes to the Financial Statements for Council and Group 16. PROPERTY, PLANT AND EQUIPMENT

Opening Accum Accum Depn & Opening Cost/ Depn & Opening Current Year Current Year Current Year Revaluation Carrying Cost / Valuation Impairment As at 30 June 2020 Valuation Impairment Carrying Amount Additions Disposals Depreciation Surplus/ (Deficit) Amount Charges Charges Operational Assets Land 11,126 - 11,126 - - - 2,374 13,500 - 13,500 Buildings 17,267 (918) 16,349 244 - (1,017) 2,164 19,675 (1,935) 17,740 Other Improvements (not revalued) 1,911 (345) 1,566 310 - (45) - 2,221 (390) 1,831 Library Books 1,265 (1,221) 44 39 - (83) - 1,304 (1,304) - Plant & Vehicles 1,279 (800) 479 176 (18) (202) - 1,437 (1,002) 435 Computer Equipment 967 (755) 212 77 (15) (92) - 1,029 (847) 182 Office Equipment 2,056 (1,586) 470 172 (7) (108) - 2,221 (1,694) 527 Total Operational Assets 35,871 (5,625) 30,246 1,018 (40) (1,547) 4,538 41,387 (7,172) 34,215

Restricted Assets Land 240 - 240 - - - 60 300 - 300 Improvements 725 (54) 671 6 - (46) (63) 668 (100) 568 Total Restricted Assets 965 (54) 911 6 - (46) (3) 968 (100) 868

Infrastructural Assets Roading & Footpaths 252,913 (3,902) 249,011 8,913 - (3,950) (930) 260,896 (7,852) 253,044 Bridges 46,493 (1,042) 45,451 639 - (1,070) 759 47,891 (2,112) 45,779 Land Under Roads 9,115 - 9,115 - - - - 9,115 - 9,115 Water Supply - Treatment Plants 7,060 (503) 6,557 505 (61) (505) (310) 7,195 (1,008) 6,186 Water Supply - Reticulation 28,166 (751) 27,415 511 (155) (779) 1,022 29,544 (1,530) 28,014 Wastewater - Treatment Plants 8,894 (246) 8,648 68 (10) (245) 263 9,215 (491) 8,724 Wastewater - Network 18,404 (548) 17,856 41 - (567) 511 18,956 (1,115) 17,842 Stormwater 15,081 (337) 14,744 1 - (351) 619 15,701 (688) 15,013 Stopbanks (no revalued) 156 - 156 - - - - 156 - 156 Solid Waste 1,309 (15) 1,294 23 - (15) 162 1,494 (30) 1,464 Total Infrastructural Assets 387,591 (7,344) 380,247 10,701 (226) (7,482) 2,096 400,162 (14,826) 385,337

Items Under Construction 4,459 - 4,459 1,195 - - - 5,654 - 5,654 Total Property, Plant and Equipment 428,886 (13,023) 415,863 12,920 (266) (9,075) 6,631 448,171 (22,098) 426,073

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 32 Part B – Notes to the Financial Statements for Council and Group

Opening Accum Accum Depn & Opening Cost/ Depn & Opening Current Year Current Year Current Year Revaluation Cost / Valuation Impairment Carrying Amount As at 30 June 2019 Valuation Impairment Carrying Amount Additions Disposals Depreciation Surplus/ (Deficit) Charges Charges Operational Assets Land 10,303 - 10,303 - (9) - 832 11,126 - 11,126 Buildings 16,486 (894) 15,592 991 (276) (918) 960 17,267 (918) 16,349 Other Improvements 1,470 (310) 1,160 441 - (35) - 1,911 (345) 1,566 Library Books 1,216 (1,098) 118 49 - (123) - 1,265 (1,221) 44 Plant & Vehicles 1,079 (612) 467 199 - (187) - 1,279 (800) 479 Computer Equipment 820 (694) 126 148 - (62) - 967 (755) 212 Office Equipment 1,945 (1,512) 433 131 (6) (88) - 2,056 (1,586) 470 Total Operational Assets 33,319 (5,120) 28,199 1,959 (291) (1,413) 1,792 35,871 (5,625) 30,246

Restricted Assets Land 217 - 217 - - - 23 240 - 240 Improvements 733 (55) 678 9 - (54) 38 725 (54) 671 Total Restricted Assets 950 (55) 895 9 - (54) 61 965 (54) 911

Infrastructural Assets Roading & Footpaths 243,107 (3,777) 239,330 9,197 - (3,902) 4,386 252,913 (3,902) 249,011 Bridges 45,888 (1,000) 44,888 785 - (1,042) 820 46,493 (1,042) 45,451 Land Under Roads 9,115 - 9,115 - - - - 9,115 - 9,115 Water Supply - Treatment Plants 7,017 (384) 6,633 218 (34) (507) 248 7,061 (503) 6,558 Water Supply - Reticulation 25,809 (783) 25,026 398 (268) (757) 3,016 28,166 (751) 27,415 Wastewater - Treatment Plants 8,859 (252) 8,607 26 (16) (248) 279 8,894 (246) 8,648 Wastewater - Network 16,084 (553) 15,531 146 (16) (549) 2,744 18,404 (548) 17,856 Stormwater 13,809 (343) 13,466 208 (37) (338) 1,444 15,080 (337) 14,743 Stopbanks 156 - 156 - - - - 156 - 156 Solid Waste 1,264 (15) 1,249 31 - (15) 29 1,309 (15) 1,294 Total Infrastructural Assets 371,108 (7,107) 364,001 11,009 (371) (7,358) 12,966 387,591 (7,344) 380,247

Items Under Construction 2,119 - 2,119 2,340 - - - 4,459 - 4,459 Total Property, Plant and Equipment 407,496 (12,282) 395,214 15,317 (662) (8,825) 14,819 428,886 (13,023) 415,863

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 33 Part B – Notes to the Financial Statements for Council and Group

Core Infrastructure Asset Disclosures

Most Recent Additions Additions Replacement Closing Book Constructed by 2019/20 Transferred to Cost Estimate Value Council Council For Revalued

Assets $000 $000 $000 $000 Roading (excluding land under 298,823 9,552 - 441,021 roads) Water Supply - Treatment Plants & Facilities 6,186 505 - 11,381 - Reticulation 28,015 511 - 59,021 Wastewater - Treatment Plants & Facilities 8,724 68 - 12,989 - Reticulation 17,842 41 - 38,949 Stormwater 15,013 1 - 28,951 Closing Book Additions Additions Most Recent Value Constructed by Transferred to Replacement Council Council Cost Estimate 2018/19 For Revalued Assets $000 $000 $000 $000 Roading (excluding land under 294,462 9,982 - 430,559 roads) Water Supply - Treatment Plants & Facilities 6,557 218 - 11,658 - Reticulation 27,419 398 - 57,422 Wastewater - Treatment Plants & Facilities 8,648 26 - 12,713 - Reticulation 17,852 146 - 37,778 Stormwater 14,744 208 - 27,796

Valuation A revaluation was performed on 1 July 2019 on the following classes of property, plant and equipment and the effects of this revaluation have been reflected in the 2019/20 financial statements:

. Roads and bridges. . Infrastructural assets for Water, Wastewater and Stormwater. . Solid waste infrastructural assets. . Land and buildings.

An annual revaluation was performed as at 1 July 2020 that will be reflected in the 2020/21 financial statements. This was reviewed for materiality and impairment. No material difference was noted between the current carrying value and their revalued amounts.

Land (Operational, Restricted and Infrastructural) Land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the “unencumbered” land value where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value, an open market “willing buyer, willing seller” scenario is assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 34 Part B – Notes to the Financial Statements for Council and Group

Buildings (Operational and Restricted) Specialised buildings are valued at fair value using depreciated replacement cost because no reliable sales data are available for such buildings.

Depreciated replacement cost is determined using a number of significant assumptions:

. The replacement asset is based on the reproduction cost of the specific assets with adjustments where appropriate for obsolescence due to overdesign or surplus capacity.

. The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information.

. The remaining useful life of assets is defined by taking the economic life of the improvement and reducing this by the effective age of the components within each property.

. Straight line depreciation has been applied in determining the depreciated replacement cost value of the asset.

Non-specialised buildings (e.g., residential buildings) are valued at fair value using market-based evidence. Market rents and capitalisation rates were applied to reflect market value.

Infrastructural Asset Classes: Wastewater, Water, Drainage, Roads and Solid Waste Wastewater, water and drainage are valued using depreciated replacement cost methodology. Roading infrastructural assets are valued using the optimised depreciated replacement cost method. There are a number of estimates and assumptions exercised when valuing infrastructural assets using the optimised depreciated replacement cost method. These include:

. Estimating any obsolescence or surplus capacity of the asset.

. Estimating the replacement cost of the asset. The replacement cost is derived from recent construction contracts in the region for similar assets. In addition, indexed replacement costs are also used in the transport valuation (based on NZTA's March 2019 cost adjustment factors) and in three waters (indexed based on the cost fluctuation adjustment as per BSD3-15:2005)

. Estimates of the remaining useful life over which the asset will be depreciated. These estimates can be affected by the local conditions (e.g., weather patterns and traffic growth). If useful lives do not reflect the actual consumption of the benefits of the asset, then Council could be over or under estimating the annual depreciation charge recognised as an expense in the Statement of Comprehensive Revenue. To minimise this risk, infrastructural asset useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group and have been adjusted for local conditions based on past experience. Asset inspections, deterioration, and condition modelling are also carried out regularly as part of asset management planning activities, which provides further assurance over useful life estimates.

The most recent valuation for wastewater, water and stormwater drainage was performed by Minesh Patel of Veolia Water Australia and New Zealand who holds the qualification of Bachelor of Engineering (Chemical & Materials) (Hons). Minesh has been extensively involved in the provision of 3 Waters asset services for Veolia since September 2011 and has been involved in previous Ruapehu District Council asset valuations. The valuation had an effective date of 1 July 2019. The most recent valuation for roading was performed by Scott McIntyre (BBIM AITP) and approved by Stephen Fletcher (REA, MTransport) both of GHD Limited and the valuation had an effective date of 1 July 2019.

The most recent valuation for buildings, land and solid waste assets (valued by assessing the buildings on transfer station locations) was performed by Sarah Busuttin (BBS (VPM) MPINZ, ANZIV) and Angela Scott (BBS (VPM) MPINZ) of Quotable Value Ltd and the valuation had an effective date of 1 July 2019. Three waters useful lives review under PBE IPSAS 3: Land under Roads Land under roads are carried at deemed cost.

Library Collections Library collections are valued at depreciated cost.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 35 Part B – Notes to the Financial Statements for Council and Group

Total Fair Value of Property, Plant and Equipment Valued by each Valuer ($000)

Actual Actual 2020 2019 $000 $000 QV Asset and Advisory 34,246 29,625 Veolia Water 77,536 76,994 GHD 294,291 289,424

A comparison of the carrying value of buildings valued using depreciated replacement cost and buildings valued using market-based evidence is as follows:

2020 2019

$000 $000 Operational buildings Depreciated replacement cost 14,799 12,639 Market-based evidence 4,303 3,719 Total carrying value of operational buildings 19,102 16,358

Restricted buildings Depreciated replacement cost 641 716 Market-based evidence - - Total carrying value of restricted buildings 641 716

Impairment and Security for Liabilities There were no impairment or reversals recognised in the current year (2019: Nil).

None of Council’s assets are pledged as security for liabilities in 2020 (2019: Nil).

Proceeds from Insurance Council received $3k from its insurers for damages to a UAV (2019: $9k).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 36 Part B – Notes to the Financial Statements for Council and Group

Work in Progress

Capital Works in Progress by class of asset is detailed below:

Actual Actual 2020 2019 $000 $000 Operational Assets Land - - Buildings 72 206 Other Improvements 1,436 1,060 Library Books 14 - Plant and Vehicles 30 1 Computer Equipment - 454 Office Equipment - 1

Infrastructural Assets Roading 2,449 1,471 Bridges 91 87 Land Under Roads - - Water Supply 646 343 Wastewater 711 703 Stormwater 171 133 Stopbanks - - Solid Waste 13 -

Property Plant and Equipment Capital Works in Progress Total 5,633 4,459

Intangibles 21 -

Total Capital Works in Progress by Asset Class 5,654 4,459

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 37 Part B – Notes to the Financial Statements for Council and Group

17. INTANGIBLE ASSETS

The intangible assets owned by Council include computer software and a resource consent.

Actual Actual 2020 2019 $000 $000 Carrying Amount at 1 July 222 335

Intangibles Cost Balance at 1 July 2,181 2,181 Additions 860 - Disposals - - Balance At 30 June 3,041 2,181

Accumulated Amortisation Balance at 1 July (1,959) (1,846) Amortisation Charge (205) (113) Disposals - - Balance at 30 June (2,163) (1,959)

Carrying Amount at 30 June 877 222

Carrying Amount per Asset Class Software 755 108 Resource Consents 122 114 Carrying Amount at 30 June 877 222

There are no restrictions over the title or security held on the intangible assets. There were no internally generated intangible assets (2019 Nil).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 38 Part B – Notes to the Financial Statements for Council and Group

18. DEPRECIATION AND AMORTISATION EXPENSE BY GROUP OF ACTIVITY

Actual Actual Directly Attributable Depreciation and Amortisation Expense by Group 2020 2019 of Activity $000 $000 Community Support 5 6 Community Facilities 1,034 970 Land Transport 5,020 4,944 Leadership 6 6 Stormwater and Flood Protection 351 338 Wastewater 820 811 Water Supply 1,285 1,265 Waste Management and Minimisation 21 21 Total Directly Attributable Depreciation and Amortisation by Group Of 8,542 8,360 Activity Depreciation and Amortisation not directly related to Group of Activities 738 578 Total Depreciation and Amortisation Expense 9,280 8,938

19. INVESTMENT PROPERTY

Actual Actual 2020 2019 $000 $000 Land 3,195 2,742 Buildings 441 420 Balance at 30 June 3,636 3,162

Movement in investment property during the year was:

Actual Actual 2020 2019 $000 $000 Balance at 1 July 3,162 2,830 Reclassification to PPE - (44) Additions - 20 Disposals (101) (7) Fair Value Gains/(Losses) on Valuation 575 363 Balance at 30 June 3,636 3,162

Investment properties are revalued annually effective at 30 June to fair value. The valuation was performed by Sarah Busuttin (BBS (VPM) ANZIV MPINZ), Scott Lewis BBS(VPM) and Angela Scott (BBS (VPM) MPINZ), of Quotable Value Ltd and the valuation had an effective date of 30 June 2020.

There are no restrictions on the realisability of investment property or the remittance of revenue or proceeds from disposal.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 39 Part B – Notes to the Financial Statements for Council and Group

Valuation Investment Property Land Investment land is valued at fair value using market-based evidence based on its highest and best use with reference to comparable land values. Adjustments have been made to the “unencumbered” land value where there is a designation against the land or the use of the land is restricted because of reserve or endowment status. These adjustments are intended to reflect the negative effect on the value of the land where an owner is unable to use the land more intensely. Land has been valued as if vacant and incorporates the influences of size, contour, quality, location, zoning, designation and current and potential usage. Improvements by any lessee have been excluded, but land development and fertility improvements have been included. In determining fair value an open market “willing buyer, willing seller” scenario has been assumed. This is effectively the price an informed purchaser would have to pay to acquire a similar property.

Investment Property Buildings Valuations give consideration to:

Sales comparison approach, comparing structures based on market-based net rates per square metre:

. Income approach, capitalising net income and discounted cash flow (based on assumptions including future rental revenue, anticipated maintenance costs, and appropriate discount rates);

. Depreciated replacement cost is used if the fair value method cannot be established using market data. Depreciated replacement cost looks at replacement costs of material less economic physical obsolescence and any over design.

Actual Actual Revenue and Expenditure on Investment Property 2020 2019 $000 $000 Rental Revenue 30 16 Expenditure on Property Generating Revenue (8) (19) Expenditure on Property Not Generating Revenue (20) (26)

Registered Valuations were completed as at 30 June 2020 for RDC’s Investment Properties. The impact of Covid-19 was assessed at that stage, and given how relatively recent the event was, and due to the low levels of Property Sales turned over compared to normal, drawing conclusions on the overall market movements was challenging. The valuer adopted Fair Value assessments on the valuation of these assets towards the lower end of the Market Value Ranges, as indicated by comparable sales evidence.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 40 Part B – Notes to the Financial Statements for Council and Group

20. CREDITORS AND OTHER PAYABLES

Actual Actual 2020 2019 $000 $000 Current Exchange Trade Payables 1,805 4,640 Accrued Expenses 1,506 343 Amounts Due to Customers for Contract Work - - 3,311 4,983 Non-Exchange Trade Payables 9 299 Accrued Expenses - - Other Financial Liabilities 220 185 Transitional GST Payable - - 229 484

Total Current Portion 3,540 5,467

Non-Current Non-Exchange Transitional GST Payable - -

Total Creditors and Other Payables 3,540 5,467

Creditors and other payables are non-interest bearing and are normally settled on 30 day terms, therefore, the carrying value of the creditors and other payables approximates their fair value.

21. BORROWINGS

Carrying Amount Fair Value 2020 2019 2020 2019 $000 $000 $000 $000 Current Portion Secured Loans 8,000 10,500 7,992 10,278 CARL Facility - 300 - 289 Total Current Portion 8,000 10,800 7,992 10,567

Non-Current Portion Secured Loans (Fixed Interest) 21,000 17,000 19,392 14,950 Total Non-Current Portion 21,000 17,000 19,392 14,950

Total Borrowings 29,000 27,800 27,384 25,517

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 41 Part B – Notes to the Financial Statements for Council and Group

Actual Actual Weighted Average Interest Rate 2020 2019 Current 0.62% 3.79% Non-Current 2.01% 3.10% Overall 1.75% 3.36%

Secured Loans Council’s secured loans of $29m (2019: $27.8m) have been borrowed at fixed and floating rates of interest from the Bank of New Zealand ($4m) and the Local Government Funding Authority (LGFA) ($25m). Fixed rate debt rates are set at the time of rollover and include a margin for credit risk. Rates are fixed on terms in line with Council’s Treasury Management Policy, with staggered rollovers to mitigate interest rate risk. During the year Council entered did not enter into any new interest rate swap contracts (2019:$4m).

Security Council operates a Customised Average Rate Loan Facility (CARL) with the Bank of New Zealand. The limit of this facility is $3,000,000, as at 30 June 2020 this had no amounts drawn down on it (2019: $300k). This facilitiy is secured by a charge over rates. There are no restrictions on the use of this facility and it expires on 20 September 2023. Through the LGFA and CARL Facility Council can draw down funds to cover any short term debt requirements to the limits outlined above.

Secured loans are secured over either separate or general rates of Council.

Fair Values The fair values are based on cash flows discounted using weighted average interest rates based on borrowing costs ranging from 0.61% to 4.55% (2019: 2.17% to 5.15%).

Internal Borrowings Council has no internal borrowings, defined as per clause 27 of schedule 10 in the Local Government Act 2002. Council is keeping track of internal movement of funds but these do not qualify as internal borrowings under this provision.

22. EMPLOYEE ENTITLEMENTS

Actual Actual 2020 2019 $000 $000 Annual Leave and Special Leave 346 320 Accrued Salaries 57 245 Total Employee Entitlements 403 565

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 42 Part B – Notes to the Financial Statements for Council and Group

23. PROVISIONS

Actual Actual 2020 2019 $000 $000 Non-Current Portion Landfill Aftercare Provision 199 194

Movement In Landfill Aftercare Provision Balance at 1 July 194 188 Additional Provisions Made 5 6 Amounts Used - - Unused Amount Reversed - - Discount Unwind (Note 5) - - Balance at 30 June 199 194

Landfill Aftercare Costs Upon formation of Council from amalgamation of smaller councils, and the introduction of the Resource Management Act (1991), 13 landfills throughout the District were phased out. Closed landfills are capped and monitored according to resource consent requirements. The risks associated with this operation are not believed to be significant and the expense is budgeted for annually as part of the relevant activity.

Council obtained resource consent in July 2001 to operate a landfill until October 2020. There is a responsibility under the resource consent to provide ongoing maintenance and monitoring of the landfill after the site is closed.

The landfill aftercare costs and provision referred to in this note relate to the one operational landfill in Taumarunui (which will be capped during 2021 and monitored in the future), and the provision utilised to fund this.

The cash outflows for landfill post-closure costs are expected to occur through to 2055. The long-term nature of the liability means that there are inherent uncertainties in estimating costs that will be incurred. The provision has been estimated taking into account existing technology and known changes to legal requirements. The gross provision is $199k (2019: $194k), and was set after obtaining an engineer’s valuation of what the provision needed to be at 30 June 2016. An inflation factor of 3% has been applied for 2020 (2019:3%).

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 43 Part B – Notes to the Financial Statements for Council and Group

24. EQUITY

Actual Actual 2020 2019 $000 $000 Ratepayers Equity Balance at 1 July 274,911 270,738 Transfers (to)/from Asset Revaluation Reserves on Disposal 132 410 Transfers from Restricted Reserves 3 56 Transfers to Restricted Reserves - (58) Transfers to Financial Assets at Fair Value through other Comprehensive - - Revenue Reserve Surplus / (Losses) for the year 4,830 3,765 Balance at 30 June 279,876 274,911

Other Reserves Restricted Reserves Balance at 1 July 65 63 Transfers to Accumulated Funds (3) (56) Transfers from Accumulated Funds - 58 Balance at 30 June 62 65

Asset Revaluation Reserve Balance at 1 July 116,431 102,021 Net Revaluation Gains/(Losses) 6,630 14,820 Transfer to Ratepayers Equity on Disposal of Property (132) (410) Balance at 30 June 122,929 116,431

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 44 Part B – Notes to the Financial Statements for Council and Group

Actual Actual 2020 2019 $000 $000 Asset Revaluation Reserves For Each Asset Class Consist Of: Operational Assets - Land 9,104 6,670 - Buildings 10,364 8,265 Infrastructural Assets - Wastewater System 17,768 16,999 - Stormwater System 11,480 10,860 - Water Supply System 19,062 18,477 - Land Transport (Roading Network) 54,954 55,125 - Solid Waste 197 35 Balance as at 30 June 122,929 116,431

Fair Value Through Comprehensive Revenue and Expense Reserve Balance at 1 July 125 112 Net revaluation gains/(losses) (32) 13 Balance at 30 June 93 125

Total Other Reserves 123,022 116,556 Total Equity 402,960 391,532

The fair value through comprehensive income reserve reflects the cumulative revaluations on other financial assets for which gains and losses are reflected through other comprehensive revenue and expense.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 45 Part B – Notes to the Financial Statements for Council and Group

Information about reserve funds held for a specific purpose is provided below:

Transfers Balance Transfers Balance Activities for which out of Reserve 1 Jul into Fund 30 Jun the Reserve Relates Fund $000 $000 $000 $000 2020 Raetihi Lighting Community Facilities 4 - - 4 Ohakune Lighting Community Facilities 3 - 3 - Ohakune Forestry Sale Allocation Community Facilities 32 - - 32 Raetihi Forestry Sale Allocation Community Facilities 26 - - 26 Total restricted reserves 2020 65 - 3 62

2019 ECNZ Stratford-Huntly Amenities Leadership 43 - 43 - Raetihi Water Supply Water Supply 6 - 6 - Raetihi Lighting Community Facilities 5 - 1 4 Ohakune Lighting Community Facilities 9 - 6 3 Ohakune Forestry Sale Allocation Community Facilities - 32 - 32 Raetihi Forestry Sale Allocation Community Facilities - 26 - 26 Total restricted reserves 2019 63 58 56 65

Restricted reserves are those reserves subject to specific conditions accepted as binding by Council and which Council may not revise without reference to the Courts or a third party. Transfer from these reserves may only be made for certain specific purposes or when specified conditions are met. Most of the restricted reserves were “inherited” during the amalgamation that created Ruapehu District Council. The last two Restricted Reserves that were created in the 2018/19 financial year related to the Ohakune and Raetihi share of the sale of the Whanganui Forestry Investment that occurred in December 2018. The Forestry investment was made between 1979 and 1990 and the two areas contributed some funding for the project and this is their percentage share of the proceeds.

Purpose of Each Reserve Fund

ECNZ Stratford-Huntly Amenities The fund was created prior to 1989 and was established to provide “public” amenities being amenities owned or administered by the Crown or Council for recreational, cultural or social purposes.

Raetihi Water Supply This fund resulted from a contribution by Ruapehu Alpine Lifts Ltd which is designated for Raetihi community projects. $85k was allocated to the Raetihi community for the instalment of water filters in their homes.

Raetihi Lighting In 2013 funds were allocated to the Raetihi community for community lighting.

Ohakune Lighting In 2013, funds were allocated to the Ohakune community. In addition, funds were vested on the Council for use on this project.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 46 Part B – Notes to the Financial Statements for Council and Group

25. RECONCILIATION OF NET SURPLUS (DEFICIT) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Actual Actual 2020 2019 $000 $000 Net Surplus (Loss) 4,830 3,765

Add / (Less) Non-Cash Items Share of Associate's (Surplus) / Deficit (8) (7) Depreciation and Amortisation Expense 9,280 8,938 (Gains) / Losses on Impairment of Receivables 254 (286) (Gains) / Losses in Fair Value of Investment Property (575) (363) (Gains) / Losses in RAL Loan Net Present Value Discount Adjustment (11) 110 13,770 12,157 Add / (Less) Items Classified As Investing Or Financing Activities (Gains) / Losses (Net) on Disposal of Property, Plant and Equipment 131 660 (Gains) / Losses on Financial Assets Taken Through Gains / Losses 21 52 (Gains) / Losses on Disposal of Investments Classified as Fair Value through (32) 13 Other Comprehensive Income 120 725 Add / (Less) Movements In Working Capital Items (Inc) / Dec in Debtors and Other Receivables 470 (1,249) (Inc) / Dec in Prepayments and Accrued Income (30) 197 (Inc) / Dec in Inventory (44) (69) Inc / (Dec) in Creditors and Other Payables 1,413 (219) Inc / (Dec) in Provisions 5 6 Inc / (Dec) in Other Employee Entitlements (162) 18 1,652 (1,316)

Net Cash Inflow / Outflow from Operating Activities 15,542 11,566

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 47 Part B – Notes to the Financial Statements for Council and Group

26. COMMITMENTS AND OPERATING LEASES

Actual Actual 2020 2019 $000 $000 Capital Commitments Roading 6,202 9,721 Bridges 928 1,393 Water 4,712 173 Total Capital Commitments 11,842 11,287

Operating Commitments Not Later Than One Year 10,947 8,696 Later Than One Year And Not Later Than Five Years 11,656 13,993 Later Than Five Years 6,954 - Total Non-Cancellable Operating Commitments 29,557 22,689

Operating Leases As Lessee Not Later Than One Year 225 231 Later Than One Year and Not Later Than Five Years 135 156 Later Than Five Years 150 177 Total Non-Cancellable Operating Leases 510 563

Operating Leases As Lessor Not Later Than One Year 74 79 Later Than One Year And Not Later Than Five Years 148 159 Later Than Five Years 76 44 Total Non-Cancellable Operating Leases 298 282

Capital Commitments Council has received funding from Central Government towards completion of the Upgrade of the Ohakune Water Treatment Plant. This work is required to be completed by 30 June 2021 Operating Commitments Council has entered into a number of non-cancellable contracts for the delivery of services, this includes commitment to undertake spending on funding received ($1.33m) from Central Government for Worker Redeployment to be spent in 2021 as part of the Covid-19 Response, and $113k received from Central Government towards the first two years Operational Expenses following completion of the Upgrade to the Ohakune Water Treatment Plant. Further details on these commitments are disclosed in Section One of this report.

Following balance date, Visit Ruapehu Ltd applied for and was successful in obtaining Strategic Tourism Assets Protection Programme Funding part of the Covid-19 Stimulus from Central Government, of $700k, to be used towards Destination Management and Planning, Industry Capability Building and Product Development, and Domestic Marketing. These funds need to be utilised by February 2022.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 48 Part B – Notes to the Financial Statements for Council and Group

Operating Leases Council leases property, plant and equipment in the normal course of its business. The future aggregate minimum lease payments payable under non-cancellable operating leases are as shown above.

Council leases an office building as the lessee, for which the lease expires in September 2031, with a right of renewal for a further 25 years. There is no option to purchase the asset at the end of the lease term. There are no other significant leases. The total minimum future sublease payments expected to be received under non-cancellable subleases at balance date is $nil (2019: $nil).

There are no restrictions placed on the council by any of the leasing arrangements. No contingent rents have been recognised during the period.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 49 Part B – Notes to the Financial Statements for Council and Group

27. CONTINGENCIES

Contingent Liabilities

Actual Actual 2020 2019 $000 $000 Legal Proceedings 150 150

Council is subject to two legal proceedings against it. The first one alleging inadequate compensation for acquired land.

The potential liability to Council, if the claim is successful, is estimated to be $150,000. The outcome of the claim will not be known until legal proceedings progress further (as for 2019).

In April 2013, the Ministry of Education (MOE) initiated High Court proceedings against Carter Holt Harvey (CHH) and others alleging inherent defects in the shadow-clad plywood cladding sheets manufactured and distributed by CHH. The MOE’s original claim against CHH was for 833 school buildings, six of which are located within the Ruapehu District. In 2016, CCH commenced proceedings against 48 Councils including the Ruapehu District Council, alleging a breach of duty in the processing of building consents, undertaking building inspections and issuing Code Compliance Certificates.

28 school buildings (zero in Ruapehu) built outside the ten year long stop provision contained in the Building Act 2004 have been struck out by the High Court.

The Court has directed that there will be a trial which will be staged. The first stage will be a six month hearing commencing in April 2020, to determine whether shadow clad is inherently defective.

On the 3rd September 2020, following balance date, Notice of Discontinuance of this Claim was filed at the High Court by CHH, clearing this potential liability.

New Zealand Local Government Funding Agency (LGFA): Ruapehu District Council is a guarantor of LGFA. The LGFA was incorporated in December 2011 with the purpose of providing debt funding to local authorities in New Zealand and it has a current rating from Standard and Poors of AA+.

Council is one of 52 local authority guarantors, 31 of which are also shareholders of LGFA. The aggregate amount of uncalled capital ($20m) is available in the event that an imminent default is identified. In addition the New Zealand Government provides a $1 billion standby facility to the LGFA. Council together with other guarantors and shareholders are guarantors pf all LGFA’s borrowings. At 30 June 2020, Council had borrowings with LGFA totalling $25m (2019:$16m).

Financial reporting standards require Council to recognise the guarantee liability at fair value. However, Council is unable to determine a sufficiently reliable fair value of the guarantee and therefore has not recognised a liability. Council considers the risk of LGFA defaulting on payments of interest or capital to be very low on the basis that:

. We are not aware of any local authority debt default in New Zealand, and . Local government legislation would enable local authorities to levy a rate to recover sufficient funds to meet any debt obligation if further funds were required.

Contingent Assets There are no Contingent Assets.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 50 Part B – Notes to the Financial Statements for Council and Group

28. RELATED PARTY TRANSACTIONS

Transactions with Key Management Personnel

2020 2019 Key Management Personnel Compensation FTE’s $000 FTE’s $000 Councillors Remuneration - 387 - 313 Full Time Equivalent Members 12 12 - Senior Management Team Including Chief Executive Salaries and other Short-Term Employee Benefits - 746 - 716 Post-Employment Benefits - - - - Other Long-Term Benefits - - - - Termination Benefits - - - - Full Time Equivalent Members 4 - 4 - Total Key Management Personnel Compensation 16 1,133 16 1,029

Due to the difficulty in determining the full-time equivalent for Councillors, the full-time equivalent figure is taken as the number of Councillors.

Key management personnel include the Mayor, Councillors, Chief Executive and the other three members of the senior management team.

During the year, Councillors and senior management, as part of a normal customer relationship, were involved in minor transactions with Council (such as the payment of rates).

Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances.

Related party disclosures have also not been made for transactions with entities within the Council group (such as funding and financing flows), where the transactions are consistent with the normal operating relationships between the entities and are on normal terms and conditions for such group transactions.

Councillors are also involved in various non-profit organisations throughout the community, which receive funding from Council. There has been no disclosure where the transactions are consistent with a client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the Council and group would have adopted in dealing with the party at arm’s length in the same circumstances.

RDC Holdings Ltd (100% Council owned subsidiary) which is non-active and has no revenue, expenditure, assets or liabilities, and there have been no transactions recorded in the 2020 financial year. (2019: Nil).

Visit Ruapehu Ltd (100% Council Controlled Organisation). This new organization replaced the Ruapehu Regional Tourism Organisation (RTO) Trust, which was operated from 2009 until wound up by a Trustees Resolution on 17 October 2019 under a Deed of Confirmation. The transactions and assets and liabilities for the period 1 November 2019 to 30 June 2020 are consolidated into the Parent Group within the Financial Statements

Provisions/Impairments No impairments have been required for any receivables to related parties (2019: Nil).

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29. REMUNERATION

Chief Executive The total Chief Executive remuneration was:

Chief Executive 2020 2019 Salary – C. Manley 287,007 271,442 Superannuation Contribution – C. Manley 8,128 7,723 Total Chief Executive Remuneration 295,135 279,165

Elected Representatives Remuneration paid to elected representatives:

Council 2020 2019 Cameron, Don (Mayor) 105,773 90,229 Cosford, Graeme 24,429 19,738 Dowsett, Cynthia* 6,281 20,226 Doyle, Adie 24,911 19,888 Gillard, Marion (Deputy Mayor, passed away 13/08/2018) (part)* - 3,599 Goddard, Ben (passed away 23/09/20) 24,532 20,001 Hoeta, Vivienne 24,382 20,038 Neeson, Lyn 24,566 11,806 Ngatai, Karen (Deputy Mayor) 35,804 28,659 Nottage, Rabbit 24,457 19,963 Wheeler, Kim 24,270 19,738 Wilson, Murray 24,270 19,851 Windell, Jacques* 6,168 19,963 Gram, Robyn (elected Oct 2019) 18,334 - Pue, Elijah (elected Oct 2019) 18,522 - Total 386,699 313,698

Notes: *These Elected Representatives were not re-elected at the October 2019 Council election.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 52 Part B – Notes to the Financial Statements for Council and Group

Community Boards Remuneration paid to Community Board Members:

Community Boards 2020 2019 Biddle, Missy (passed away 12/06/2020) 4,119 4,253 Chapman, John* 868 2,914 Hotter, John (Luigi) 8,442 8,506 Oliver, Winston* 1,287 4,253 O’Neill, Simon 2,928 2,881 Pehi, Peta* 868 2,870 Pendleton, Jenni* 1,744 5,755 Whale, Allan 4,338 4,253 Dowsett, Cynthia 3,058 - Zimmer, Peter 4,253 - Bolten, Mark 2,064 - McCarthy, Clark 2,182 - Total 36,151 35,685 Total Elected Representatives' Remuneration 422,850 349,383

Notes: *These Community Board Members were not re-elected at the October 2019 Council election.

Councillors (excluding the Mayor) attended the following meetings as part of their roles:

RDC Councillor Meeting Attendance Council Total Rep External

Cosford, Graeme 20 1 21 Dowsett, Cynthia* 3 1 4 Doyle, Adie 20 4 24 Goddard, Ben 13 1 14 Hoeta, Vivienne 22 4 26 Neeson, Lyn 19 5 24 Ngatai, Karen 29 11 40 Nottage, Rabbit 22 3 25 Wheeler, Kim 16 1 17 Windell, Jacques* 6 - 6 Wilson, Murray 19 2 21 Gram, Robyn 14 7 21 Pue, Elijah 13 1 14 Total 216 41 257

Notes: 1 RDC Rep External represents meetings where the Councillor is attending as the Council appointed representative.

2 *These Community Board Members were not re-elected at the October 2019 Council election.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 53 Part B – Notes to the Financial Statements for Council and Group

Council Employees

Total Annual Remuneration By Band 2020 Bands 2020 < $60,000 58 $60,000 - $79,999 14 $80,000 - $99,999 10 $100,000 - $119,999 4 $120,000 - $139,999 2 $140,000 - $159,999 6 $280,000 - $299,999 1 Total Employees 95

Total Annual Remuneration By Band 2019 Bands 2019 < $60,000 60 $60,000 - $79,999 14 $80,000 - $99,999 11 $100,000 - $159,999 9 $160,000 - $279,999 1 Total Employees 95

Total remuneration includes non-financial benefits provided to employees.

At balance date, the Council employed 62 (2019: 60) full-time employees, with the balance of staff representing 20.46 (2019: 21.92) full-time equivalent employees. A full-time employee is determined on the basis of a 40-hour working week.

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30. SEVERANCE PAYMENTS

For the year ended 30 June 2020, Council made no severance payments (2019: 0).

31. EVENTS AFTER BALANCE DATE

On the 3rd September 2020, a Notice of Discontinuance was filed at the High Court in Auckland, by Carter Holt Harvey against Councils. This is included in Note 27. Contingencies.

32. FINANCIAL INSTRUMENT RISKS

Financial Instrument Categories

The accounting policies for financial instruments have been applied to the line items below:

Actual Actual 2020 2019 $000 $000 Financial Assets Cash and Cash Equivalents 2,197 500 Loans and Receivables 401 390 Debtors and Other Receivables 4,197 3,941 Accrued Income 1,015 985 Total Loans and Receivables 7,810 5,816

Fair Value through other Comprehensive Revenue Other Financial Assets: - Listed Shares - Unlisted Shares 53 90 - Other Investments 287 232 Total Fair Value through other Comprehensive Revenue 340 322

Financial Liabilities Financial Liabilities at Amortised Cost Creditors and Other Payables 3,540 5,467 Borrowings: - CARL Facility - 300 - Secured Loans 29,000 27,500 Total Financial Liabilities at Amortised Cost 32,540 33,267

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Fair Value Hierarchy Disclosures The majority of Council’s financial assets are valued using non-observable inputs. Council has assessed the value of Council’s financial assets as not material and has therefore chosen not to present Fair Value Hierarchy Disclosures.

Valuation Techniques with Significant Non-Observable Inputs (Level 3) The table below provides reconciliation from the opening balance to the closing balance for the Level 3 Fair Value Measurements:

Actual Actual 2020 2019 $000 $000 Balance at 1 July 712 165 Gains and Losses Recognised in the Surplus or Deficit 13 (174) Gains and Losses Recognised in other Comprehensive Revenue (48) 13 Purchases 64 708 Sales - - Transfers into Level 3 - - Transfers out of Level 3 - - Balance at 30 June 741 712

These investments include unlisted shares in Civic Assurance. Also included is a loan to the Kakahi Water Supply Board Limited.

The increase in the value of the loan includes capitalisation of interest income and rates revenue.

Financial Instruments Risk Council has a series of policies to manage the risks associated with financial instruments, is risk averse and seeks to minimise exposure from its treasury activities. The Treasury Management Policies do not allow for any speculative transactions.

Market Risk Price Risk Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices. Council does not have any material exposure to price risk.

Fair Value Interest Rate Risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Borrowings and investments at fixed rates of interest expose Council to fair value interest rate risk. Council’s Treasury Management Policy sets the minimum and maximum levels of fixed interest rate exposure to borrowings across various time intervals.

Cash Flow Interest Rate Risk Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and investments issued at variable interest rates expose Council to cash flow interest rate risk.

Council’s policy is to raise long-term borrowings on fixed interest rates. There is no significant exposure to cash flow interest rate risk.

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Credit Risk Credit risk is the risk that a third party will default on its obligation to Council, causing it to incur a loss. Financial instruments which potentially subject Council to credit risk principally consist of bank balances, accounts receivable, investments and other guarantees.

Debtors and other receivables arise mainly from Council’s statutory functions. Therefore, there are no procedures in place to monitor or report the credit quality of debtors and other receivables with reference to internal or external credit ratings. Council has no significant concentrations of credit risk in relation to debtors and other receivables, as it has a large number of credit customers, mainly ratepayers. Council has powers under the Local Government (Rating) Act 2002 to recover outstanding debts from ratepayers.

Council’s Treasury Policy limits the amount of credit exposure on investment instruments to any one institution or organisation. There are also minimum credit rating limits in place. Council holds no collateral or credit enhancements for financial instruments that give rise to credit risk. Council’s maximum credit risk exposure for each class of financial instrument is as follows:

Actual Actual 2020 2019 $000 $000 Cash at Bank and Term Deposits 2,197 500 Debtors and Other Receivables 4,197 3,941 Accrued Income 1,015 985 Other Financial Assets (Investments) 741 712 Total Credit Risk 8,150 6,138

Credit Quality of Financial Assets The credit quality of financial assets, that are neither past due nor impaired, can be assessed by reference to Standard and Poor’s credit ratings, where such ratings are available.

AA- Unrated Total $000 $000 $000 2020 Cash at Bank and Term Deposits 2,197 - 2,197 Debtors and Other Receivables - 4,197 4,197 Accrued Income - 1,015 1,015 Other Financial Assets (Investments) - 741 740 Total Credit Risk 2,197 5,953 8,149

2019 Cash at Bank and Term Deposits 500 - 500 Debtors and Other Receivables - 3,941 3,941 Accrued Income - 985 985 Other Financial Assets (Investments) - 712 712 Total Credit Risk 500 5,638 6,138

Other financial assets are mainly assets not able to be credit rated. The remaining assets are of insignificant value and are therefore not rated.

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Liquidity Risk Management of Liquidity Risk Liquidity risk is the risk that Council will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Council aims to maintain flexibility in funding by keeping committed credit lines available.

Council manages its borrowings in accordance with its funding and financial policies which include a Treasury Management Policy.

Council has a new CARL Facility with the Bank of New Zealand which has a maximum amount that can be drawn down of $3m (2019: $300k).

Contractual Maturity Analysis of Financial Liabilities The following table analyses Council’s financial liabilities into relevant maturity groupings based on the remaining period at the balance date to the contractual maturity date. Future interest payments on floating rate debt are based on the relevant interest rate at balance date. The amounts disclosed are the contractual undiscounted cash flows and include interest payments.

Carrying Contractual Cash Flows Amount Total < 1 year 1-2 years 2-5 years 5+ years $000 $000 $000 $000 $000 $000 30 June 2020 Creditors and Other Payables 3,540 3,540 3,540 - - - CARL Facility ------Secured Loans 29,000 30,768 8,516 458 19,709 2,085 Bonds (Fixed Interest) ------Total 32,540 34,308 12,056 458 19,709 2,085

30 June 2019 Creditors and Other Payables 5,467 5,467 5,467 - - - CARL Facility 300 300 300 - - - Secured Loans 27,500 28,866 11,251 527 17,088 - Bonds (Fixed Interest) ------Total 33,267 34,633 17,018 527 17,088 -

Sensitivity Analysis The following table illustrates the potential profit and loss impact due to reasonable possible market movements, with all other variables held constant, based on Council’s financial instrument exposures at balance date. There are no financial instruments held for which foreign exchange risk applies. As there is no interest rate to Council, as all interest rates are at a fixed interest rate as balance date (including prior year) no table is included.

2020 2019 Interest Rate Risk (Through Surplus) -50bp +100bp -50bp +100bp $000 $000 $000 $000 Financial Assets Cash and Cash Equivalents (1) 2 - 1

Financial Liabilities Cash and Cash Equivalents - - - - Term Loans (6) 11 (8) 16 Total Sensitivity (6) 13 (8) 17

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 58 Part B – Notes to the Financial Statements for Council and Group

Explanation of Interest Rate Risk Sensitivity The interest rate sensitivity is based on a reasonable possible movement in interest rates, with all other variables held constant, measured as a basis point (bp) movement. For example, a decrease in 50bp is equivalent to a decrease in interest rates of 0.5%.

As Council only secures borrowing through loans, there is no interest rate risk sensitivity on the financial liabilities.

33. CAPITAL MANAGEMENT

Council’s capital is its equity (or ratepayers’ funds) which comprise accumulated funds and reserves. Equity is represented by net assets.

The Local Government Act 2002 (the Act) requires Council to manage its revenues, expenses, assets, liabilities, investments and general financial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayers’ funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments and general financial dealings.

Council complied with all externally imposed capital requirements to which it is subject.

The objective of managing these items is to achieve intergenerational equity. This is a principle promoted in the Act and applied by Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising Council’s assets and does not expect them to meet the full cost of long-term assets that will benefit ratepayers in future generations. Additionally, Council has in place Asset Management Plans for major classes of assets detailing renewal and maintenance programmes, to ensure that ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance. Council is also focussing efforts on ensuring that it is being “smart” with how it maintains and upgrades assets to minimise the impact on ratepayers now and in the future.

The Act requires Council to make adequate and effective provision in the Long Term Plan (LTP) and in its Annual Plan (where applicable) to meet the expenditure needs identified in these plans. The Act also sets out the factors that Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the funding and financial policies in Council’s LTP.

Council has the following Council created reserves:

. Reserves for different areas of benefit. . Trust and bequest reserves.

Reserves for different areas of benefit are used where there is a discrete set of rate or levy payers as distinct from payers of general rates. Any surplus or deficit relating to these separate areas of benefit is applied to the specific reserves.

Trust and bequest reserves are set up where funds that are restricted for a particular purpose have been donated to Council. Interest is added to trust and bequest reserves where applicable and deductions are made where funds have been used for the purpose for which they were donated.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 59 Part B – Notes to the Financial Statements for Council and Group

34. COUNCIL CONTROLLED ORGANISATIONS

RDC Holdings Limited is a company created as a Local Authority Trading Enterprise (LATE) to comply with changes in tendering rules for contracting. The trading activities ceased with the sale of the LATE contracts Plant and Equipment to Works Construction in 1997. The company has been retained as an inactive company because, periodically, opportunities arise which may make it a useful entity. None of these prospective opportunities has materialised to date. RDC Holdings Ltd is intended to be an exempt CCO and has no performance targets.

Visit Ruapehu Limited was incorporated on 23 August 2019, as a Council Controlled Organisation (CCO) with Ruapehu District Council being the 100% owner. This new organisation replaced the Ruapehu Regional Tourism Organisation (RTO) Trust, which was operating from 2009 until it was wound up by a Trustees resolution on 17 October 2019 under a Deed of Confirmation. The assets were transferred to Visit Ruapehu Limited, free of all charges and encumbrances and all the Trusts debts and liabilities were paid. Visit Ruapehu Limited is an exempt entity and is not required to have performance targets.

Actual 2020 $000 Investment In Subsidiaries (CCO) - Investment in Visit Ruapehu Ltd 103 103 Manawatu Wanganui Lass Ltd Summarised financial information of associates presented on a gross basis Assets 303 Liabilities 200 Revenues 443 Surplus/(Deficit) (28) RDC's Interest 100%

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35. EXPLANATION OF MAJOR VARIANCES AGAINST BUDGET

Explanations for major variations from Council’s LTP budget figures for 2018/19 are as follows:

Statement of Comprehensive Revenue and Expense

Revenue Rates are over budget by $195k. This is made up of an additional $27k in General Rates, and $167k in Targeted Rates.

During the year overdue rates has increased as rates receivables has increased by $300k. Other factors impacting rates revenue include unbudgeted rates penalties of $559k, which are partially offset by discounts given of $149k and write offs of $198k that are equally unbudgeted.

Fees and Charges are under budget by $492k. Reclassification of $477k of budget to Other Revenue, accounts for most of this variance.

Receipts from Subsidies and Grants is under budget by $610k for the year. NZTA Subsidies were under budget $435k in Operational and $1.6m in Capital Subsidies. Budgets are set on historic levels, including contingent planning for weather event impacts that did not eventuate this year. This has been partially offset by unbudgeted Central Government Subsidies, including $880k for the National Park, Park and Ride Project, $177k for the Ohakune Water Treatment Plant upgrade and $80k as Tourism Infrastructure Funding (TIF) for a Wastewater Land passage feasibility study for Ohakune and Raetihi. A further $150k was received for covering the secondment of the Economic Development Manager’s.

Other Revenue is over budget by $1.3m. This includes the Insurance pay-out related to the Cherry Grove Flat rebuild, $240k; additional income from the Whakapapa water contract $210k; $81k Ministry of Social Development Cadet subsidy (to contribute to the employment of three cadets during the financial year); and $50k funding for Rubbish Bins.

Gains are over budget by $771k this is driven through the revaluations of Investment Property ($574k) and sale of the house and land at the Quarry.

Expenses Personnel Costs are over budget by $408k, which is driven ($177k) by additional staff, cost of living and Strat pay market adjustments. Council received a salary offset of $150k from MBIE to cover the Economic Development Manager’s work on economic and tourism development in the Ruapehu District and this recovery is included in other revenue, there is one more year to come on this arrangement. A contract was entered into with the Ministry of Social Development for a Wage Subsidy for three cadets and $81k was received, this contract had nothing to do with the Covid 19 pandemic.

Finance costs are under budget by $432k, this is due to market interest rates being below what was budgeted. The majority of the savings resulted from Council’s membership of the LGFA.

Other Expenses are over budget by $1.1m.

This has been driven by Insurance Premiums $110k greater than budget for the year, additional operational spend on IT, and consultant spend ($438k) which includes the additional costs to support applications for Central Government Grants and Subsidies, outsourcing of Noise Control and Water Engineers role, and procurement of new Solid Waste contract.

Losses are through disposal of Assets during the year including $215k in disposals in Water Supply Plant and Equipment.

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Statement of Financial Position Cash and Cash equivalents are $1.4m ahead of last financial year, but $300k below budget. This is due to year end last Financial Year being $1.2m below budget. During the year receipt of unbudgeted subsidies and grants, which are yet to be spent, has seen actual cash inflows greater than budget. Receivables is over budget by $811k. This includes overages in Water Billing receivables of $79k and $1.4m in Sundry Debtors, of which $660k was expected from NZTA for services rendered. A reduction in Rates Receivables ended with these being under budget by $640k.

Property Plant and Equipment are ahead of budget by $14.3m, due to asset revaluations, whilst Intangible Assets are ahead of budget by $521k as a result of investment in additional Software during the year.

Revaluation of Investment Property over the last few years saw this year starting position ahead of the Annual Plan Budget for the full year. During the year the Quarry and Quarry house were sold, however this reduction was offset by a further revaluation increase of $474k.

Creditors and other payables is down by $2.25m on budget, due budgeted works not being completed for the year.

Overall Borrowings are up $1.2m on last year mainly due to the Township Revitalization project work in Taumarunui. The actual borrowings for 2019/20 were $1.1m lower than budget as a result of Three Water Capex projects being behind what was planned.

There is a reduction in Employee Entitlements from last year, and this is $144k below budget, due to timing of the pay period with the end of the financial year. This movement is reflected through the Cash Flow.

Income in Advance is $1.9m ahead of budget. This includes the additional funding of $1.3m that has been received from Central Government for the Worker Redeployment on Local Roading Projects as part of the Covid-19 stimulus along with $323k of funding for the Ohakune Water Treatment Plant upgrade. Other major contributors include an increase in Rates in Advance balances increasing by $100k between 2019 and 2020.

Statement of Cash Flows Receipts from Rates Revenue is below budget, though $308k ahead of last financial year.

Subsidies and grants receipts are ahead of budget by $1.8m and $5.6m ahead of last year. This includes the receipt of the $1.3m Worker Redeployment on Local Roading Projects, and Ohakune Water Treatment Plant Upgrade of $323k along with other Central Government Subsidies during the year, which were unbudgeted, offsetting the shortfall in budgeted subsidies from NZTA.

Cashflow from Other Revenue is $1.6m ahead of budget, and includes unbudgeted items such as $210k Cherry Grove Insurance Payout and additional income of $210k over budget from the Whakapapa Water Contract.

Supplier payments are $1.2m ahead of budget, which is in line with Other Expenses in the Statement of Comprehensive Revenue and Expenses for the year.

Payments to Employees and Elected Members is up $587k up on last year, this is due to differences to the fall of the pay roll period between 2019 and 2020 and payments to additional staff, Strat Pay and cost of living adjustments which were partially offset by additional receipts of subsidies from MBIE $150k and the Ministry of Social Development $81k.

Interest Paid has reduced from last year, and is $435k below budget, as a result of lower than budgeted debt levels, and a lower interest rate environment, than previously budgeted.

Sale of Property Plant and Equipment during the Year, along with sale of old vehicle fleet has seen receipts of $135k.

During the financial year the Quarry and associated Land was sold. This formed part of the Investment Property Portfolio.

Purchase of Property Plant and Equipment is under budget by $3.3m this is mainly due to 3 Waters Capital Projects not being delivered, along with NZTA Capital works being below budget for the year.

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Purchase of Intangible Assets were unbudgeted and relates predominantly to new software purchased during the financial year. Borrowings increased by $1.2m over the year, but sits well below the budgeted figure of $3.8m.

36. COVID-19 CORONAVIRUS

A review of the effect of COVID -19 on Council’s Operating Revenue, Expenditure, Assets and Liabilities has been performed and no material issues arose. Council receives 92% of its revenue from rates and grants so the effect of COVID -19 on its revenue and cash flow streams has been minimal to date. Council made the decision to set its rates at the level required for the Annual Plan 2020/21. The only concessions that Council made to minimise the effect of COVID-19 on Ratepayers was to remit the rates penalties of $56,476 for the fourth quarter’s rates for 2019/20. In addition Council gave rent relief totalling $9,514 to some of its leaseholders. Worker Redeployment on Roading Project funding from Central Government of $1.33m has been received during the Financial Year as part of the Covid-19 stimulus. At balance date these funds are currently sitting in Income in Advance, and will be offset in the 2020-21 Financial Year when it is spent. Registered Valuations were completed as at 30 June 2020 for our Investment Properties, and 1 July 2020 for our operational properties. The impact of Covid-19 was assessed at that stage, and given how relatively recent the event was, and due to the low levels of Property Sales turned over compared to normal, drawing conclusions on the overall market movements was challenging. The valuer adopted Fair Value assessments on the valuation of these assets towards the lower end of the Market Value Ranges, as indicated by comparable sales evidence.

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37. PREPAYMENTS, ACCRUED INCOME & INCOME IN ADVANCE

Actual Actual 2020 2019 $000 $000 Prepayments Insurance Premiums 104 157 Annual Software Subscriptions 56 7 Total Prepayments 160 164

Accrued Income Interest - 3 Petrol Tax 6 13 Water Meter Charges 23 24 NZTA Subsidy 826 781 Total Accrued Income 855 821

Total Prepayments and Accrued Income 1,015 985

Income in Advance MBIE Funding – Ohakune Water Treatment Plant Upgrade 323 - MBIE Funding – Worker Redeployment of Local Roading Projects 1,330 - MBIE Funding – Great Rides 90 - Dog Registrations 81 80 Rates 922 820 Sundry Creditors 39 38 Health Regulation Fees 14 10 Water Meter Charges - 6 CCO Visit Ruapehu Ltd – Marketing Funding 36 - Total Income in Advance 2,835 954

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Part C – Other Legislative Disclosures 1. FUNDING IMPACT STATEMENT FOR RUAPEHU DISTRICT COUNCIL FOR YEAR ENDING 30 JUNE 2020 – WHOLE OF COUNCIL

LTP Actual Annual Actual Plan 2019 2019 2020 2020 $000 $000 $000 $000 Sources Of Operating Funding General Rates, Uniform Annual General Charges, 11,298 11,652 11,740 11,933 Rates Penalties Targeted Rates 11,408 11,261 11,766 11,768 Subsidies And Grants For Operating Purposes 6,175 5,403 6,375 6,562 Fees And Charges 3,106 3,328 3,314 4,122 Interest And Dividends From Investments 30 28 31 83 Local Authorities Fuel Tax, Fines, Infringement Fees, 136 189 139 167 And Other Receipts Total Operating Funding (A) 32,153 31,861 33,365 34,635

Applications Of Operating Funding Payments To Staff And Suppliers 25,633 24,889 26,804 28,136 Finance Costs 1,384 1,122 1,243 811 Other Operating Funding Applications - - - - Total Application Of Operating Funding (B) 27,017 26,011 28,047 28,947 Surplus/(Deficit) Of Operating Funding (A-B) 5,136 5,850 5,318 5,688

Sources Of Capital Funding Subsidies And Grants For Capital Expenditure 7,344 7,040 8,657 7,860 Development And Financial Contributions 65 104 65 105 Increase/(Decrease) In Debt 3,767 2,000 3,779 1,200 Gross Proceeds From Sale Of Assets - 649 - 210 Lump Sum Contributions - - - - Other dedicated capital funding - - - - Total Sources Of Capital Funding (C) 11,176 9,793 12,501 9,375

Application Of Capital Funding Capital Expenditure: - To Meet Additional Demand 1,795 3,082 1,388 1,912 - To Improve The Level Of Service 4,279 2,154 4,447 2,004 - To Replace Existing Assets 10,238 10,054 11,984 9,813 Increase/(Decrease) In Reserves - (355) - 1,165 Increase/(Decrease) Of Investments - 708 - 169 Total Applications Of Capital Funding (D) 16,312 15,643 17,819 15,063 Surplus/(Deficit) Of Capital Funding (C-D) (5,136) (5,850) (5,318) (5,688) Funding Balance ((A-B)+(C-D)) - - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 65 Part C – Notes to the Financial Statements for Council and Group

2. SUPPORT FUNDING IMPACT STATEMENT

LTP Annual Actual Plan 2019 2020 2020 $000 $000 $000 Sources Of Operating Funding General Rates, Uniform Annual General Charges, Rates (27) (22) (245) Penalties Targeted Rates - - - Subsidies And Grants For Operating Purposes - - - Fees And Charges 14 14 135 Internal Charges And Overheads Recovered 3,940 4,252 4,284 Interest And Dividends From Investments 30 31 83 Total Operating Funding (A) 3,957 4,275 4,257

Applications Of Operating Funding Payments To Staff And Suppliers 2,931 3,266 4,006 Finance Costs 246 238 295 Internal Charges And Overheads Applied 129 133 - Other Operating Funding Applications - - - Total Application Of Operating Funding (B) 3,306 3,637 4,301 Surplus/(Deficit) Of Operating Funding (A-B) 651 638 (44)

Sources Of Capital Funding Subsidies And Grants For Capital Expenditure - - - Development And Financial Contributions - - - Increase/(Decrease) In Debt (550) (660) 333 Gross Proceeds From Sale Of Assets - - 210 Lump Sum Contributions - - - Other dedicated capital funding - - - Total Sources Of Capital Funding (C) (550) (660) 543

Application Of Capital Funding Capital Expenditure: - To Meet Additional Demand 610 281 68 - To Improve The Level Of Service 15 306 684 - To Replace Existing Assets 556 475 14 Increase/(Decrease) In Reserves (1,080) (1,084) (436) Increase/(Decrease) Of Investments - - 169 Total Applications Of Capital Funding (D) 101 (22) 499 Surplus/(Deficit) Of Capital Funding (C-D) (651) (638) 44 Funding Balance ((A-B)+(C-D)) - - -

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 66 Part C – Notes to the Financial Statements for Council and Group

3. OVERALL FUNDING IMPACT STATEMENT RECONCILIATION

Reconciliation between the Group of Activities’ Funding Impact Statements, the Overall Council Funding Impact Statement and the Statement of Comprehensive Revenue and Expense against EAP budget.

Actual Annual Actual Plan 2020 2020 2019 $000 $000 $000 Total operating and capital funding sources as shown in the 48,294 49,983 45,028 group of activities’ funding impact statements Less Corporate Services revenue unallocated - - - Less internal charges and overheads recovered (4,284) (4,118) (3,374) Total operating and capital funding sources as shown in the 44,010 45,865 41,654 overall council funding impact statement

(Increase)/decrease in debt (1,200) (3,779) (2,000) Gross proceeds from sale of assets (210) - (649) Vested assets - - - Other gains 771 - 363 Total funding sources 43,371 42,086 39,367 Consolidation of Subsidiary (CCO): Visit Ruapehu Ltd 196 - - Total revenue as shown in the statement of comprehensive 43,566 42,086 39,367 revenue

Application of total operating and capital funding as shown in the 48,294 49,983 45,028 group of activities’ funding impact statements Add corporate services costs - - - Less internal charges and overheads applied (4,285) (4,118) (3,145) Application of total operating and capital funding as shown 44,009 45,865 41,883 in the overall council funding impact statement Capital expenditure (13,729) (17,819) (15,290) (Increase)/decrease in reserves (1,165) - 354 (Increase)/decrease in investments (169) - (708) Less corporate services net gain in allocations - - - Depreciation and amortisation 9,251 8,912 8,938 Other losses 528 - 432 Total funding application 38,725 36,958 35,609 Consolidation of Subsidiary (CCO): Visit Ruapehu Ltd 20 - - Total expenditure as shown in the statement of 38,745 36,958 35,609 comprehensive revenue

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 67 Part C – Notes to the Financial Statements for Council and Group

4. RATING BASE INFORMATION

The 2019/20 rates were set based on the following information, as at 30 June 2020 and prior year comparatives.

Actual Actual 2020 2019 Number of Rating Units 9,883 9,876 Non-Rateable Units 928 935

Total Capital Value of Rating Units in the District 4,842,829,750 4,816,962,650 Total Land Value of Rating Units in the District 2,547,043,200 2,542,949,600

5. INSURANCE

As at 30 June, Ruapehu District Council had the following insurance contracts in place:

2020 2019 Max Insured Value Max Insured Value $000 $000 $000 $000 Material Damage Replacement 87,964 87,964 83,360 83,360 Motor Vehicles Market 1,379 1,379 1,273 1,273 Infrastructural Assets Replacement 40,000 129,063 40,000 123,465

Council has no self-insurance fund set aside. Risk mitigation include the NZTA subsides and Councils ability to borrow to replace lost / damaged assets.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 68 Part C – Notes to the Financial Statements for Council and Group

6. BENCHMARKS

Annual Report Disclosure Statement for the Year Ending 30 June 2020

What is the purpose of this Statement The purpose of this statement is to disclose the Council’s financial performance in relation to various benchmarks to enable the assessment of whether the council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings.

Council is required to include this statement in its annual report in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement.

Rates Affordability Benchmark Council meets the rates affordability benchmark if: . Its actual rates income equals or is less than each quantified limit on rates; and . Its actual rates increase equals or is less than each quantified limit on rates increases.

Rates (Income) Affordability The following graph compares Council’s actual rates revenue with the quantified limit on rates. Council set a quantified limit on the rates income for which it plans to rate (whole of Council), included in the Financial Strategy within its Long Term Plan. This quantified limit is that the whole of Council rate income will not increase by more than the Local Government Cost Index (LGCI) plus 2%, year on year.

The quantified limit for 2019/20 financial year was $23.9m. Council was within this benchmark with a gross rates take of $23.7m.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 69 Part C – Notes to the Financial Statements for Council and Group

Rates (Increases) Affordability The following graph compares Council’s actual rates increase with the quantified limit on rates increases included in the financial strategy included in the Council’s Long Term Plan. The quantified limit is the Local Government Cost index (LGCI) plus 2% for each of the next 10 years of the plan.

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Debt Affordability Benchmark The Council meets the debt affordability benchmark if its actual borrowings are within each quantified limit on borrowing.

The following graph compares the Council’s actual borrowing with a quantified limit on borrowing stated in the financial strategy included in the Council’s Long Term Plan. The quantified limit is that debt should be less than twice the annual rates bill.

Council met this benchmark with an actual debt position of $29M against the quantified limit of $47.5M.

Debt Control Benchmark The following graph displays the Council’s actual net debt as a proportion of planned net debt. In this statement, Net Debt means financial liabilities less financial assets (excluding trade and other receivables.) The Council meets the debt control benchmark if its actual net debt equals or is less than its planned net debt.

Council met this benchmark with an actual result of 84% verses a plan of 100% with there being two key drivers. Firstly, trade payables were down on budget due to timing. Secondly, the 2019/20 Annual Plan forecast Council’s total borrowing down from the 2018-28 LTP forecasted level for the 2019/20 financial year.

RUAPEHU DISTRICT COUNCIL – ANNUAL REPORT 2019/20 SECTION TWO - PAGE 71 Part C – Notes to the Financial Statements for Council and Group

Balanced Budget Benchmark The following graph displays the Council’s revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant and equipment as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant and equipment). The Council meets this benchmark if its revenue equals or is greater than its operating expenses.

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Operations Control Benchmark This graph displays the Council’s actual net cash flow from operations as a proportion of its planned net cash flow from operations. The Council meets the operations control benchmark if its actual net cash flow from operations equals or is greater than its planned net cash flow from operations.

Council achieved this benchmark for the 2019/20 financial year with an operational cash flow that was $1,482k above budget.

Essential Services Benchmark The following graph displays the Council’s capital expenditure on network services as a proportion of depreciation on network services. The Council meets this benchmark if its capital expenditure on network services equals or is greater than depreciation on network services.

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Debt Servicing Benchmark The following graph displays the Council’s borrowing costs as a proportion of revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments, and revaluations of property, plant and equipment). Because Statistics New Zealand projects the Council’s population will grow more slowly than the national population growth rate, it meets the debt servicing benchmark if it’s borrowing costs equal or are less than 10% of its revenue.

The interest to operating revenue benchmark that is measured against is that finance costs not exceed 10% of operating revenue. Council’s finance costs over the last five years have been significantly below this benchmark. The last five years have had very low borrowing costs with interest rates having dropped significantly. The Weighted Average Cost of Capital for Council is 1.75%, which is low next to historical data.

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