Annual Report 2017/18 Adopted 10 October 2018 Statement of Compliance

Compliance The Council and management of -Piako District Council confirm that all statutory requirements of the Local Government Act 2002 have been complied with in relation to the preparation of this Annual Report. Responsibility The Council and management of Matamata-Piako District Council accept: • responsibility for the preparation of the annual Financial Statements and the judgements used in them. • responsibility for establishing and maintaining a system of internal controls designed to provide reasonable assurance as to the integrity and reliability of financial reporting. In the opinion of the Council and management of Matamata-Piako District Council, the Financial Statements for the period ended 30 June 2018 fairly reflect the financial position and operations of the Matamata-Piako District Council.

Janet E Barnes, Mayor Don McLeod, Chief Executive Officer

ISSN 1171-3917 (Print) ISSN 1175-7299 (Online) ISSN 2463-4271 (CD-ROM) Cover photo: › › › › › › › › Part Three: › › › Part Two: › › › › › › › › Part One: Contents

Consents andLicensing Water Wastewater Stormwater Rubbish andRecycling Roading Strategy andEngagement Community Facilities andProperty Involvement inCouncil controlled organisations andCouncil organisations legislativeOther disclosures Financial statements Maori participation inCouncil decision making Community outcomes Your district Customer Survey 2017/18 Financial summary Independent Auditor’s Report Council Message from theMayor ...... Ranges Sheep andKaimai Financials Introduction What we do ...... = . .. 108 90 20 98 65 95 62 92 87 14 14 14 81 71 21 4 6 8 5

3 Contents - Annual Report 2017/18 4 Part One: Introduction - Annual Report 2017/18 Message from theMayor Matamata-Piako continues to betheplace of choice visitorsto ourdistrict. and embraceup opportunities open thousands ofextra to extend thetrail will enable usto build connections, with Central Government including fundingassistance scheduled to occur inthe2018/19 year. Partnership Trail from to Matamata with thephysical work Planning is well underway to extend theHauraki Rail houses our Councilarea office andlibrary. whole community now andinto thefuture andalso honours thesacrifices ofthepast andprovides for the completed and opened inApril2018. This facility The Matamata-Piako CivicandMemorialCentre was of ourdistrict. the parksandtracks that showcase thenatural beauty maintained to ahighstandard and we alltake pridein facilities isat anall-timehigh. Our sports grounds are previous yearand communitysatisfaction these with numbers to our poolfacilities have increased from the residents varied recreation andleisure options. Visitor Our parks, pools, libraries and other facilities offer drinking water andsafeguarding against emergencies inDecember 2017, doubling thetown’s We have completed theMtMiseryReservoir in networks throughout the year maintained andupgraded our roading andutilities support our population andtourism growth. We have Be assured we have provided infrastructure to Infrastructure andfacilitiesindemand: standard, withexcellent governanceacross board.the Our Councillors continue to fulfiltheir role to ahigh service to ratepayers andthe community at large. our fiscaltargets whilemaintaininga goodlevel of We are inastrong positionfinancially, having achieved our residents with pride. Aroha are giving our community anidentityandfilling Trail inMorrinsville andspasstreet sculptures inTe attract visitors from far and wide. Our Herd of Cows is leveraging theinternational appeal of Hobbiton to vistas, historic towns andmuseums, while Matamata strength.Visitors are discoveringruralthe charmofour industry that continues to move from strength to The district hasan expanding population andtourism home. abundant opportunities that they are proud to call for those wanting ahealthy lifestyle, bursting with from for generations to come. I would like to investment andimproved services that we’ll benefit Matamata-Piakohas enjoyed a year prudent of to peopleaged12-24. communities by raising concerns andissues important in itssecond year. The VYA provides leadershipin our PiakoVolunteer YouthAmbassadrors (VYA) currently programme, now initsfourth year andtheMatamata- through youth initiatives like our Tuia Rangatahi Our future leadersare strongly supported by Council and wellbeing. competing to bethemost active andboost theirhealth from around the world are paired according to size, one-on-one community challenge, where communities participate in World ChallengeDay on 30May 2018, a We were alsothefirst district to community at large. industry, smallbusinesses, volunteers, youth andthe We have hosted anumber of events to connect with Events andyouth: weight. look forward to another year of punchingabove our to makingMatamata-Piako a great place to live andI acknowledge you,the community, for your contribution Mayor Janet E. Barnes Mayor Janet E. Barnes Te Aroha Peter Jager Mayor Matamata Kevin Tappin Matamata Brain Hunter JP Janet E. Barnes Morrinsville Neil Goodger Morrinsville Donna Arnold Council

Te Aroha TeenaCornes Te Aroha Ash Tanner Deputy Mayor Morrinsville Paul Cronin Morrinsville, JP James Thomas Matamata Adrienne Wilcock Matamata James Sainsbury

are set out intheNgati HauaClaims SettlementAct2014. The functions of the (Matamata) Aerodrome Committee, Iwi Trust Board. appointed memberandthree members appointed by theNgati Haua The committee comprises of theMayor, DeputyMayor, one Council 2015 by legislation under theNgati Haua ClaimsSettlementAct2014. The Waharoa (Matamata) Aerodrome Committee was created in The Waharoa (Matamata) Aerodrome Committee Councillors. committee includesanindependent chairperson, theMayor andfive risk managementandinternal andfinancial control systems. This The AuditandRiskCommittee ensure’s we have appropriate The Audit andRiskCommittee members, one of whom isaCouncillorand the chairperson. manager’s certificates). The District Licensing Committee has four list alcohol licences (including club, special, on and off licences and District Licensing Committee considers andmakes decisions on applications undertheSaleandSupply of Alcohol Act2012. The Council hasaDistrict Licensing Committee to consider and determine The District Licensing Committee whom isthe chairperson. The HearingsCommission ismadeup of two Councillors, one of of restricting access to residential poolsundertheBuildingAct2004. Act 1996, and granting waivers or modifications in relation to means Act 1991, hearingand determining objections undertheDogControl applications for resource consents undertheResource Management The HearingsCommission isresponsible for hearingand determining The HearingsCommission Hinerangi andNgati Paoa. Ngati Tamatera alsohastheabilityto join. Rahiri Tumutumu, Raukawa, Ngati Maru, Ngati Whanaunga, Ngati The Forum includesrepresentatives from Council, Ngati Haua, Ngati Plan. developing plansandpolicies, suchastheLong Term Plan or District that affect Maoriin our district, andprovides feedback when we are groups. The Forum alsoprovides advice to Councilaboutissues environmental andsocialissues of significance to manawhenua committeeadvise oncultural,Council which of economic, Te Manawhenua Forum moMatamata-Piako (Forum) isastanding Te Manawhenua Forum moMatamata-Piako an AnnualPlan or Report). delegate undertheLocal Government Act2002 (such asadopting Corporate and Operations Committee, except for the ones it can’t has delegated all of itsresponsibilities, duties andpowers to the This committee ismadeup of theMayor andall11Councillors. Council The CorporateandOperationsCommittee decisions andlookafter the district’s day-to-day operations. Executive Officer and staff who provide advice, implementCouncil The elected representatives are supported by theCouncil’s Chief represent their communities andmake decisions for the district. throughout the district. The CouncillorsandMayor are elected to elected by theirrespective wards, andtheMayor, elected by all voters Morrinsville andTe Aroha. Our Council consists of 11Councillors, The Matamata-Piako District is divided into three wards: Matamata, Council

5 Part One: Introduction - Annual Report 2017/18 6 Part One: Introduction - Annual Report 2017/18 Independent Auditor’s Report In ouropinion Opinion on theaudited information We completed ourwork10 on October2018. the dateThisis onwhichwe givereport. our We refer to thisinformation as“the disclosure requirements” in our report. We are alsorequired to report on: report. are required to auditundertheLocal Government Act2002 (theAct). We refer to thisinformation as“theaudited information” in our Halford, usingthestaff and resources ofAuditNew Zealand, to report ontheinformation intheDistrict Council’s annual report that we The Auditor-General istheauditor of Matamata-Piako District Council(theDistrict Council). The Auditor-General hasappointed me, BH for the year ended 30 June 2018 To thereaders of Matamata Piako District Council’s annualreport Independent Auditor’s Report Prudence) Regulations 2014. The Council’s responsibilities ariseundertheLocal Government Act2002 andtheLocal Government (FinancialReporting and The Councilisresponsible for meetingalllegalrequirements that applyto itsannualreport. Responsibilities of theCouncilfor theaudited information information. We believe that theaudit evidence we have obtained issufficientandappropriate to provide abasis for our opinion ontheaudited We have fulfilled our responsibilities inaccordance withtheAuditor-General’s Auditing Standards. section of thisreport. Board. We describe our responsibilities underthosestandards furtherinthe“Responsibilities of theauditor for theaudited information” Standards andtheInternational Standards on Auditing(New Zealand) issued by theNew Zealand AuditingandAssurance Standards We carried out our auditinaccordance with theAuditor-General’s AuditingStandards, which incorporate theProfessional andEthical Basis for our opinion on theaudited information We report that theDistrict Councilhas: Reportthe disclosurerequirements on • • • • • • • • • from theDistrict Council’s audited information and, where applicable, theDistrict Council’s long-term planandannualplans. Regulations 2014) on pages12to 13, which represent a complete list of required disclosures andaccurately reflects theinformation drawn made the disclosures aboutperformance against benchmarksasrequired by theLocal Government (FinancialReporting andPrudence complied with therequirements of Schedule10 of theActthat applyto theannualreport; and Long-term plan. produced from each source of fundingandhow thefunds were appliedas compared to theinformation includedintheDistrict Council’s the fundingimpactstatement for each group of activities on pages80to 108, presents fairly, inallmaterial respects, theamount of funds expenditure as compared to thebudgeted capital expenditure includedintheDistrict Council’s annualplan;and the statement about capital expenditure for each group of activities on pages72 to 107, presents fairly, inallmaterial respects, actual capital the service performance information toon pages 71 108: and how thefunds were appliedas compared to theinformation includedintheDistrict Council’s annualplan; the fundingimpactstatement on page62, presents fairly, inallmaterial respects, theamount of fundsproduced from each source of funding the financial statements onpages21 to 70: Government (FinancialReporting andPrudence) Regulations 2014. the completeness andaccuracy of theDistrict Council’s disclosures aboutitsperformance against benchmarksthat are required by theLocal whether theDistrict Councilhas complied with therequirements of Schedule10 of theActthat applyto theannualreport; and • • • • complies with generally accepted accounting practice inNew Zealand; and 2018, including: presents fairly, inallmaterial respects, theDistrict Council’s levels of service for each group of activitiesfor the year ended 30 June Reporting Standards; comply with generally accepted accounting practice inNew Zealand inaccordance with PublicBenefitEntity present fairly, inallmaterial respects: • • • • the reasons for any significant variation between thelevels ofservice achieved andtheintended levels ofservice; and were achieved; the levels of service achieved compared with theintended levels of service and whether any intended changes to levels of service the results of its operations and cash flows for the year ended onthat date; and the District Council’s financialpositionas at 30 June2018; :

agreed to theDistrict Council’s annualplan. For thebudgetinformation reported intheaudited information, our procedures were limited to checking that thebudgetinformation could reasonably be expected to influence the decisions of readers taken onthebasis ofthisaudited information. amounts or disclosures, and can arisefrom fraud or error. Misstatements are considered material if, individually or intheaggregate, they General’s AuditingStandards will always detect amaterial misstatement when it exists. Misstatements are differences or omissions of Reasonable assurance isahighlevel of assurance, butisnota guarantee that anaudit carried out inaccordance with theAuditor misstatement, whether due to fraud or error, andto issue anauditreport that includes our opinion. Our objectives are to obtain reasonable assurance about whether theaudited information, asa whole, isfree from material Responsibilities of theauditor for theaudited information Tauranga, New Zealand On behalf of theAuditor General Audit New Zealand B HHalford relationship with, or interests in, theDistrict Council. a limited assurance engagement related to theDistrict Council’s debenture trust deed. Other thanthese engagements, we have no information and our report on the disclosure requirements, we have audited theDistrict Council’s 2018-28 longterm plan, performed Assurance Practitioners issued by theNew Zealand AuditingandAssurance Standards Board. Inadditionto our audit of theaudited Standards, which incorporate theindependence requirements of Professional andEthicalStandard 1(Revised): Code of Ethicsfor We are independent of theDistrict Councilinaccordance with theindependence requirements of theAuditor General’s Auditing Independence to report that fact. We have nothingto report inthisregard. materially misstated. If, based on our work, we conclude that there isamaterial misstatement of this other information, we are required with theaudited information andthe disclosure requirements, or our knowledge obtained during our work, or otherwise appearsto be Our responsibility isto read the other information. In doing so, we consider whether the other information ismaterially inconsistent Our opinion on theaudited information and our report on the disclosure requirements do not cover the other information. included on pages4to 5and8to 20, but does notincludetheaudited information andthe disclosure requirements. The Councilisresponsible for the other information includedintheannualreport. The other information comprises theinformation Other Information professional scepticism throughout theaudit. Also: As part of anauditinaccordance with theAuditor-General’s AuditingStandards, we exercise professional judgementandmaintain We did not evaluate thesecurityand controls over the electronic publication of theaudited information. there isanintention to amalgamate or cease all of thefunctions of theDistrict Council or there isnorealistic alternative butto do so. also responsible for disclosing, asapplicable, matters related to going concern andusingthe going concern basis of accounting, unless In preparing theinformation we audittheCouncilisresponsible for assessing itsabilityto continue asa going concern. The Councilis free from material misstatement, whether due to fraud or error. The Councilisresponsible for suchinternal control asit determines isnecessary to enable itto prepare theinformation we auditthat is • • • • • • • including any significant deficienciesininternal control that weidentify during ouraudit. We communicate with theCouncil regarding, among other matters, theplannedscope andtiming of theauditandsignificantfindings, information represents, where applicable, theunderlyingtransactions and events inamannerthat achieves fair presentation. We evaluate the overall presentation, structure and content of theaudited information, includingthe disclosures, and whether theaudited ceaseto a goingconcern. continueas on theaudit evidence obtained upto the date of our auditreport. However, future events or conditions may cause theDistrict Councilto to therelated disclosures intheaudited information or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based ability to continue asa going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditreport obtained, whether amaterial uncertainty exists related to events or conditions that may cast asignificant doubt ontheDistrict Council’s We conclude on theappropriateness of theuse of the going concern basis of accounting by theCounciland, based on theaudit evidence for assessing thelevels of service achieved andreported by theDistrict Council. We determine theappropriateness of thereported intended levels of service inthe service performance information, asareasonable basis by theCouncil. We evaluate theappropriateness of accounting policiesusedandthereasonableness of accounting estimates andrelated disclosures made stances, butnotfor thepurpose of expressing an opinion on the effectiveness oftheDistrict Council’s internal control. We obtain anunderstanding of internal control relevant to theauditin order to design auditprocedures that are appropriate inthe circum ery,intentional omissions,misrepresentations, the override or internal of control. of not detecting amaterial misstatement resulting from fraud ishigherthanfor one resulting from error, asfraud may involve collusion, forg procedures responsive to thoserisks, and obtain audit evidence that issufficientandappropriate to provide abasis for our opinion. Therisk We identifyandassess therisks of material misstatement of theaudited information, whether due to fraud or error, design andperform audit

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7 Part One: Introduction - Annual Report 2017/18 8 Part One: Introduction - Annual Report 2017/18 Financial summary 2017/18 OperatingExpenditure Statement of changes in equity in changes of Statement Statement of comprehensive revenue and expense ended year the for statements financial Summary Balance at 30 June 30 at Balance Total comprehensive revenue and expense 1July at Balance Total comprehensive revenue and expense Property, plant and equipment revaluation expense and revenue comprehensive other through value fair at assets Financial surplus/(deficit) Net surplus/(deficit) venture joint of Share Other comprehensive revenue and expense Finance costs Expenses Revenue Rubbish andRecycling

Strategy and Engagement $4.1m $2.3m Wastewater $4.0m Stormwater Community Facilities $0.4m

$10.1m $3.2m Water 30 June Consents and Licensing $3.5m Roading $7.2m Actual 2016/17 Actual $000 (45,736) 50,921 50,921 581,345 581,345 586,144 586,144 (4,799) (18,817) (4,799) (1,349) 3,844 10,174 Morrinsville Cow 8 Budget 2017/18 $000 (44,642) 586,886 600,511 (1,765) 13,625 12,929 13,625 47,103 696 - - Actual 2017/18 Actual $000 (47,532) 607,701 581,345 26,356 54,823 26,356 (1,335) 19,945 5,958 453 2 formalised. will only progress when industry needfor the capacity is stormwater project ($1.8million) carried forward that plant capacity upgrade ($3.3million)andMorrinsville ($500,000). There was alsotheTe Aroha water treatment the extension of walkways inMorrinsville andMatamata (totalling $1.1 million), andlandpurchases required for main, additional water source andnew reservoir projects again not completed this year includetheMatamata water projects carried forward from previous years that were economic conditions, hasproven difficult. Significant delayed as obtaining therequired resources inthe current projects (particularly Wastewater $681,000) have been being negotiated. Alsoanumber of reticulation renewal being prepared, andtheproperty andplanningissues were being confirmed, application for government funding was TrailRail project, whichwas delayedroutethe while was for this year includedthe$4millionTe Aroha to Matamata work budgeted for the year. Significantprojects budgeted not completeprogrammeCouncil did full the ofcapital the Agency after theAnnualPlanbudget was finalised. to theLEDstreetlighting programme that was approved by Transport Agency was $672,000 higherthanbudgeted due The roading subsidyreceived from theNew Zealand than budgeted including: related to development activity was significantlyhigher Street, Morrinsville andMillarStreet, Te Aroha. Revenue year, as well somesmaller developments includingThames development was amajorsubdivision completed during the District during the year. Morrinsville’s Parkwood residential high level of development activityintheMatamata-Piako A key feature reflecting inthefinancial results wasthe Statement ofcomprehensiverevenue and expense are asfollows: for the year andthebudgetinCouncil’s 2017/18 AnnualPlan Explanations for major variations between theactualresults • • • Walkers tramping inthe District processing costs, resulting inanetrevenue of $419,000). Building andresource consent revenue (offset by increased greater thanbudgeted). Development andfinancial contributions ($1.385million vision process ($3.966million greater thanbudgeted). Land andinfrastructure vested inCouncilthrough thesubdi - year to 30 June 2018. Regional AirportLimited increased by $453,000 for the The fair value of Council'sinvestment inthe from landandbuildingsthat were last valued in2014. $7 millionmore thanhadbeenbudgeted, particularly assets at 1 July 2017, resulted inanincrease in values of The revaluation of Council’s property andinfrastructural Other significantunbudgeted expenses included: contractors have beenrequired to fulfil certain roles. resultedsome cases increasedin operational costs where various forms of unpaidleave. The vacant roles have in due to difficulties filling vacantpositionsand stafftaking Personnel costs were $623,000 lower thanbudgeted, increased investment income totalling $796,000. be utilised. This resulted inreduced borrowing costs and was notrequired, andnor were cash reserves required to of external borrowing budgeted to fundthis capital work The delay inthe capital spendhasmeantthat thelevel • • • • nowbeen expensed project. oncompletionthe of Centre were incorrectly recognised as capital andhave $219,000 of project costs related to theMatamata Civic written off duringthisfinancial year. as income for theSilver Fern Farms Events Centre was $199,000 in contributions recognised intheprevious year portfolio for the year of $265,000. A decrease inthe valuation of Council’s interest rate swap disposal of assets that were replaced during theperiod. $703,000 recognised inthebooksasaloss on the

9 Part One: Introduction - Annual Report 2017/18 10 Part One: Introduction - Annual Report 2017/18 2017/18 CapitalExpenditure $453,000 for 2017/18. not untilafter thebudget was set, resulting ina$10.2 million increase inthe carrying value on thebookslast year, andanincrease of Council’s investment inthe Waikato Regional Airport was last year revalued at fair value investments beingsignificantlyhigher($11million) and external borrowing beingsignificantly lower ($12.8million) thanbudgeted. The delay inthe capital work programme andthepositive cashflows from thehigh development activityinthe district resulted in cash Statement of financialposition follows: Explanations for major variations between theactualresults for the year andthebudgetinCouncil’s 2017/18 AnnualPlanare as Statement of cashflows for the year the for cashflows of Statement position financial of Statement ended year the for statements financial Summary Net from operating activities operating from Net Equity Total liabilities liabilities Non-current liabilities Current assets Total Non-current assets Current assets Closing cash balance balance cash Opening Net increase/decrease in cash held activities financing from Net activities investing from Net

Wastewater Water $1.8m $0.6m Strategy and Engagement $0.7m Community Facilities Stormwater 30 June $0.03m $7.8m Actual 2016/17 Actual Roading $000 $8.1m 622,408 581,345 581,345 595,592 (26,218) (2,699) 41,063 41,063 27,320 27,320

2 13,743 18,699 18,699 4,820 4,820 5,290 5,290 2,591 2,591

6,816 (to comply with accounting standards), but

Budget 2017/18 $000 638,938 647,784 (21,624) 600,511 36,508 47,273 10,765 14,451 8,846 7,389 835 216 619 Actual 2017/18 Actual $000 646,588 (12,808) 607,701 624,170 38,887 16,300 21,843 17,044 22,418 (2,191) 3,892 2,591 1,301 There were nosignificant events after balance date. Events after balance date the local Wetlands Trust. consent, thenanannualsum of $15,000 will bepayable to fails to meetannualnitrate discharge conditions asperthe Te Aroha Wastewater Treatment plant during 2015, ifCouncil resource consent issued by Waikato Regional Council for the TeAroha wastewaterresource consent that: repayment of interest or capital to be very low on thebasis liability. The Council considers therisk of LGFA defaulting on value for the guarantee, andtherefore hasnotrecognised a has beenunableto determine asufficiently reliable fair the guarantee liabilityat fair value. However, theCouncil Financial reporting standards require Councilto recognise interest (2017: $7.946 billionplusaccrued interest). 2018, LGFA lendingtotalled $8.272 billionplusaccrued Council isa guarantor of all of LGFA’s lending. At30 June Togethershareholdersthe and otherguarantors, with Council is one of 9localauthority guarantors of theLGFA. The LGFA has30localauthorityshareholders andthis currency rating of AA. credit rating from Standard andPoor’s of AA+andaforeign to localauthoritiesinNew Zealand andithasa current December 2011 with thepurpose of providing debt funding Agency Limited (LGFA). The LGFA was incorporated in guarantor of theNew Zealand Local Government Funding Local Government FundingAgency Contigent Liabilities million). goods or services have notbeenreceived. (2017: $6.5 for projects where contracts have been entered into but At 30 June 2018, Councilhave commitments of $1.3million Capital Commitments policies during thefinancial year. dollars ($000). There have beenno changes inaccounting dollars andall values are rounded to thenearest thousand The financial statements are presented inNew Zealand Entity (PBE)for financial reporting purposes. community. Councilhas designated itselfasaPublicBenefit services, andperforms regulatory functionsto the The Councilprovides localinfrastructure, local public representationhas equal Council the committee. on Council andThames-Coromandel District Council. Each Management Committee, together with Hauraki District Thames Valley CombinedCivilDefence Emergency Council hasa34%interest inajointly controlled entity, 2002. includes theLGA andtheLocal Government (Rating) Act The relevant legislation governing theCouncil’s operations 2002 (LGA) andis domiciled and operates inNew Zealand. authority established undertheLocal Government Act Matamata-Piako District Council(theCouncil)isalocal Reporting entity Additional disclosures andaccounting policies • • required. to meetany debt obligations iffurtherfunds were authorities to levy arate to recover sufficientfunds local government legislation would local enable events inNew Zealand; and we are notaware of any localauthority debt default - The Council is a - The Councilisa – Underthenew Firth Tower, Matamata 11 Part One: Introduction - Annual Report 2017/18 12 Part One: Introduction - Annual Report 2017/18 LTP is:Annualrates increases¹ will notbemore than4%. The quantified limitfrom thefinancial strategy includedinthe 2015-25 2015-25 Long Term Plan LTP, shown inthesecond graph. changed from the quantified limit on rates increases from theprevious quantified limit on rates increases adopted inthe2015-25 LTP, which included intheCouncil’s Long Term Plan. The first graph shows the a quantified limit on rates increases includedinthefinancial strategy The following graphs compare theCouncil’s actualrates increases with Rates (increases) affordability increases in costs each year asset out inthe2012-22 LTP. in the2012-22 LTP was setat alevel that was intended to meetforecast The quantified limit on rates income from thefinancial strategy included 2012-22 Long Term Plan (2016/17: $31.6m). income (excluding penaltiesandmetered water revenue) was $32.0m The limit on rates income for 2017/18 was setat $34.7m. Actualrates Comment: LTP is:Annualrates income The quantified limitfrom thefinancial strategy includedinthe 2015-25 2015-25 Long Term Plan limit on rates from theprevious LTP, shown inthesecond graph. on rates adopted inthe2015-25 LTP, which changed from the quantified the Council’s Long Term Plan. The first graph shows the quantifiedlimit quantified limit on rates contained inthefinancial strategy includedin The following graphs compare theCouncil’s actualrates income with a Rates (income) affordability on rates increases. • itsactualrates increases equal or are less than each quantified limit rates; and • itsactualrates income equals or isless than each quantified limit on The Councilmeetstherates affordability benchmarkif– Rates affordability benchmark definitions ofsome ofthe terms usedinthis statement. (the regulations). Refer to theregulations for more information including Local Government (FinancialReporting andPrudence) Regulations 2014 to includethisstatement initsAnnualReport inaccordance with the assets, liabilities, and general financial dealings. The Councilis required of whether theCouncilisprudentlymanagingitsrevenues, expenses, performance inrelation to various benchmarksto enable theassessment The purpose of thisstatement isto disclose theCouncil’s financial What isthepurpose of thisstatement? ending 30 June 2018 Annual report disclosure statement for the year

Increase in total rates revenue (%) Rates income $ million 40 30 20 50 45 35 25 10 15 0 5 0 1 2 3 4 5 6 7 8 on rates income Quantified limit on rates income Quantified limit 2013/14 2013/14 2014/15

2014/15 ¹ will notincrease by more than4%. (at or within limit) (at orwithin Actual rates income (at or within limit) (at orwithin Actual rates income

2015/16 Year Year 2015/16 2016/17 2016/17 (exceeds limit) Actual rates income (exceeds limit) Actual rates income 2017/18 2017/18

to more than4% of forecast average annualhouseholdincome. included inthe2012-22 LTP was: Average annualrates will notincrease The quantified limit on rates increases from thefinancial strategy 2012-22 Long Term Plan revenue) for 2017/18 was 1.33%(2016/17: 0.05%). The actualrates increase (excluding penaltiesandmetered water Comment: financial contributions, vested and found assets and other gains. ² Council’s direct control. industrial users). These items are excluded asthelevel of income received isnot within budgeted for) andmetered water revenue (themajority of which comes from afew large ¹ and nature. independent professionals) to beaprudentlimitfor a council of our size 2017/18. This is compared to thelimit of 150%, which is considered (by reduced overall over thelast five years from 67% in2013/14 to 49% in Council’s actualnet debt asapercentage of total revenue has Comment: revenue Long Term Plan. The quantified limitis:net debtasapercentage of total on borrowing stated intheFinancialStrategy includedintheCouncil’s graph compares theCouncil’s actualborrowing with the quantified limit borrowing is within the quantified limit onborrowing. The following The Councilmeetsthe debt affordability benchmarkifitsactual Debt affordability benchmark For thepurpose of these calculations, rates income excludes penalties (which are not Consistent with our LiabilityManagement Policy, total revenue excludes development and Net debt as a percentage of total Average annual rates as a Rates income (%) revenue (%) percentage of forecast annual 100 140 160 120 40 60 80 20

0 average household income (%) 2 0 4 6 8 will not exceed will 150%. 3 5 2 7 1 0 4 6 9 8 3 5 2 7 1

on debt Quantified limit on rates increase Quantified limit on rates increase Quantified limit 2013/14 2013/14 2013/14

2014/15 2014/15 2014/15 within limit) (at or Actual debt (at or within limit) (at orwithin Actual rates increase (at or within limit) (at orwithin Actual rates increase Year Year 2015/16 2015/16 Year 2015/16 2016/17 2016/17

2016/17 limit) (exceedsActual debt (exceeds limit) Actual rates increase (exceeds limit) Actual rates increase 2017/18 2017/18 2017/18 revenue. benchmark ifitsborrowing costs equal or are less than10% of its than thenational population growth rate, itmeetsthe debt servicing New Zealand projects the Council’s population will grow more slowly and revaluations of property, plant, or equipment). BecauseStatistics contributions, vested assets, gains on derivative financialinstruments, proportion of revenue (excluding development contributions, financial The following graph displays theCouncil’s borrowing costs asa Debt servicingbenchmark be more closely aligned. consistent withdepreciation,however overit wouldtime period of a projects. Capitalspendingisnotprogrammed on astraight-line basis as Council completed somesignificant wastewater and water upgrade 205%,so was wellin excess the depreciation of time chargedthe at Council’s capital expenditure before between 2010 and2012 averaged Comment: services. networkservicesis greater equalsor than depreciation network on The Councilmeetsthisbenchmarkifits capital expenditure on network services asaproportion of depreciation on network services. Thefollowing graph displaysCouncil’sthe capitalexpenditure on Essential services benchmark operating expenseis capitalexpenditure.it - is includedin operating, however the cost isnotreflected asan receives to maintainandreplace roading inthe district. This revenue same time, operating revenue alsoincludessubsidiesthat Council “operating expenses”. Council does notrate to cover this. Atthe assets are andthe“loss” “disposedfrom of” doing soisrecorded as when we replace assets like pipesandreseal roads, the old replaced by operating revenue – to “break even”. For accounting purposes, When budgeting, Councilaimsfor operating expenses to be covered Comment is greateror its operatingthan expenses. or equipment). The Councilmeetsthisbenchmarkifitsrevenue equals on derivative financialinstruments and revaluations ofproperty, plant or equipment) asaproportion of operating expenses (excluding losses on derivative financialinstruments, and revaluations ofproperty, plant development contributions, financial contributions, vested assets, gains The following graph displays theCouncil’s revenue (excluding Balanced budgetbenchmark

Capital expenditure/ depreciation (%) Revenue/expenditure (%) 300 100 90 95 110 105 115 100 200 250 150 50 0 :

2013/14 103% 2013/14 92% Benchmark met Benchmark met 2014/15 103% 2014/15 101%

2015/16 109% 2015/16 Year 92% Year Benchmark notmet Benchmark notmet 2016/17 2016/17 105% 115% 2017/18 2017/18 101% 98% or isless thanitsplannednet debt Council meetsthe debt control benchmarkifitsactualnet debt equals financial liabilitiesless financial assets (excluding receivables). The proportion of plannednet debt. Inthisstatement, net debt means The following graph displays theCouncil’s actualnet debt asa Debt controlbenchmark Council’s borrowing costs are sustainable and well underthe10%limit. Comment: flow from operations over thelast five years. Our actual cash flow from operations has exceeded ourbudgeted cash Comment: operations. operations equals or is greater thanitsplannednet cash flow from meets the operations control benchmarkif itsactualnet cash flow from a proportion of itsplannednet cash flow from operations. The Council This graph displays theCouncil’s actualnet cash flow from operations as Operations controlbenchmark debt. lower thanbudgeted andmaturing investments have beenusedto repay Debt over thelast five years has reduced as capitalspendinghasbeen Comment:

Actual/Budgeted net debt (%) Actual/budgeted net cash flow Borrowing costs/revenue (%) from operations (%) 100 140 160 120 40 60 80 20 100 140 160 120 0 10 40 60 80 20 6 0 4 8 9 5 7 3 1 2 0

2013/14 2013/14 4.8% 2013/14 60% 121% Benchmark met Benchmark met Benchmark met 2 2014/15 2014/15 014/15 110% 3.7% 49% . 2015/16 Year 2015/16 Year 2015/16 155% 2.8% Year 50% Benchmark notmet Benchmark notmet Benchmark notmet 2016/17 2016/17 2016/17 127% 2.7% 11% 2017/18 2017/18 2017/18 2.7% 21% 113% 13 Part One: Introduction - Annual Report 2017/18 14 Part One: Introduction - Annual Report 2017/18 Community outcomes Customer Survey 2017/18 *** Excludes metered water rates, targeted rates from industries, lump-sum contributions andpenalties. ** Atthe end of thepreceding financial year. *Electoral enrolment centre. respondents atasimilartime,therewouldbeveryhigh repeated againwithadifferentsetofrandomlyselected interval. Inotherwordsifthissurveywastobe us amarginoferror+/-4.9%atthe95%confidence group andwardofresidence.Thissamplegave selected residents,withweightingappliedforgender,age Census. Thisyearoursamplesizewas400randomly on thelatestpopulationdemographicinformationfrom selected residents.Thesamplesizeisbased company whoconductsphoneinterviewsofrandomly The surveyisundertakenbyanindependentresearch facilities. residents perceptionofperformanceforourservicesand Customer Survey.Thepurposeofthesurveyistogauge As partoftheAnnualReporteachyearweundertakea Overall performance original results. probability thattheresultswouldbewithin5%of Your district 2002, wehaveidentifiedhowouroutcomesrelate In accordancewithchangestotheLocalGovernment Act We havegroupedtheseoutcomesintosixthemes: efficient manner. of currentandfuturegenerationsinacosteffective and democratic localdecisionmakingandtomeettheneeds Community outcomessupportourvisiontoenable Our future approach outcomes that aimto builda vibrant, healthy andthriving district for everyone. Community outcomesarefuture forthe ourvision ofourcommunity.We consultedto2011 withourcommunityin create 6. Growthand development 5. Artsandheritage 4. Ourenvironment 3. Recreationandfacilities 2. Decisionmaking 1. Strongandsafecommunities Average total rates per rating unit rating per rates total Average Total rates*** Total Capital value** value** land Net ofimprovements** Value units** ofrating Number (enrolled)* ofelectors Number • • • • • • Growth anddevelopment Arts andheritage Our environment Recreation andfacilities Decision making Strong andsafecommunities Area 175,477 hectares Community outcomethemes $10,356,653,900 2015/16 $4,064,097,500 $6,292,556,400 $30,800,000 Local public services - Regulatory functions - Local infrastructure -Local functions -Regulatory services public Local Local public services - Regulatory functions -Localinfrastructure -Regulatory functions services Local public -Localinfrastructure -Regulatory functions services Local public -Localinfrastructure -Regulatoryfunctions services Local public $2,070 23,236 14,877 Local public services -Regulatoryfunctions services Local public Local public services -Localinfrastructure services Local public found intherespectiveactivitysectionofthisdocument. Term Plan2015-25.Theresultsforeachactivitycanbe This year’ssurveywasthethird andfinalforourLong example onemissedbyonly1%. targets, someofthesemissedbysmallmargins.For Although afew of oursurveyresultsdidnotmeet 22% saidtheywereneithersatisfiednordissatisfied. to 6%thisyear(4%dissatisfiedand2%verydissatisfied). said theyweredissatisfiedwithCouncil,from11%lastyear and 59%satisfied).Therewasadecrease inpeoplewho year, from68%in2017to72% in2018(13%verysatisfied Overall satisfactionwithCouncilincreased by 4%this improvement andtheprioritiesofourcommunity. for theAnnualReportandhelpusidentifyareas The surveyresultsfeedintoourperformancemonitoring made towardsthesecommunityoutcomesinthisreport towards theseoutcomes.Wehavereportedonprogress encourage thecommunitytomakepositivecontributions We aimtocontributeallthecommunityoutcomes and what wecanachievewithinourresources. by whatourcommunityseesasbeingthepriorityand progress towardsindividualoutcomeswillbeinfluenced Because thecommunityoutcomesareaspirational,our them. Thesearedetailedonthefollowingpages. that helpmeasuretheseoutcomesandprogresstowards activities contributetotheseoutcomes,theindicators and regulatoryfunctions.Wehavealsoidentifiedwhich good qualitylocalinfrastructure,publicservices to theoverallpurposeoflocalgovernment Local Governmentpurpose 2016/17 $4,065,600,500 $10,366,178,900 $6,300,578,400 $30,821,000 $2,070 14,890 23,414 $12,784,283,400 2017/18 $8,240,602,000 $4,543,681,400 $31,324,000 toprovide $2,086 23,767 15,015 . Activities that Community contribute Progress towards community How will we contribute? outcomes to these outcomes outcomes

1. Strong and safe communities

(a) Council will aim to Animal Control By responding quickly to complaints, we can help Please refer to the Levels of Service sections for the Animal significantly reduce Building Consents and prevent illegal building work, anti-social behaviour, Control, Building Consents and Monitoring, and Licensing illegal activities and Monitoring uncontrolled dogs and other animals, loud noises, and and Enforcement activities for our other contributions to anti-social behaviour Licensing and the sale of alcohol to minors which can negatively this outcome. in our community. Enforcement impact people’s health and wellbeing. In 2017/18 we have completed CPTED (Crime Prevention Parks and Tracks Through Environmental Design) assessments of three parks Careful design of new parks and park developments Public Toilets and three public toilet facilities - no major issues were contribute to the safety of parks and helps minimise reported. We applied CPTED principles to the design of the illegal activities. We also carry out studies on parks new Matamata-Piako Civic and Memorial Centre. and public toilets to ensure they are safe for users.

(b) Council will Communications and We organise events to recognise those who give We have granted over $200,000 to community encourage a vibrant Events their time and effort to help others, and support local organisations to support a vibrant and cooperative local and cooperative Strategies and Plans businesses and organisations that provide services community. See the Strategies and Engagement activity for community and for our community. We also aim to foster local more details. Please refer to the Levels of Service section recognise success community development by making grants available for the Communications and Events activity for our other within our district. to groups that provide community services. contributions to this outcome

(c) Council will encourage Strategies and Plans We support growth through providing adequate We provided annual funding of $150,000 to regional growth and prosperity areas for development in the district. We support tourism promotion, $50,000 to the Matamata Public to ensure the district is tourism and businesses in our district, through Relations Association and $70,000 to the Morrinsville an attractive place to partnering with local and regional organisations to Chamber of Commerce. These organisations provide raise a family. promote our district. information services for tourists and supporting businesses and events in the towns. Council owns and operates the Te Aroha i-SITE.

(d) Council will encourage Housing and Property Our Housing and Property Management activity Please refer to the Levels of Service sections for the access to good Management supports this outcome by providing affordable elderly Housing and Property Management, and Building Consents quality and affordable persons housing. and Monitoring activities for our contributions to this housing. outcome. By processing building consents on time we contribute to the timely completion of good quality building projects.

(e) Council will Civil Defence We prepare for emergencies by ensuring staff are Please refer to the Levels of Service section for the Civil prepare for qualified to act if necessary. We also encourage our Defence activity for our contributions to this outcome. emergencies. community to be prepared for an emergency.

(f) Council services Parks and Tracks We aim to have a strong community, and we We have continued to provide these services and activities and activities will Pools and Spas contribute to this through most of our activities: to the community. Please refer to the Levels of Service contribute to the Recreation Facilities -Parks, tracks, pools, spas and recreational and section for the activities listed for our contributions to this health and wellbeing and Heritage heritage facilities provide spaces for formal and outcome. of our community/Iwi. Rubbish and Recycling informal sport, recreation and cultural activities. Stormwater -Our rubbish and recycling activity ensures safe Wastewater disposal of rubbish and recycling. Water -Stormwater services ensure properties are kept safe from flooding when it rains. Licensing and Enforcement -We ensure the safe collection, treatment and Building Consents and disposal of wastewater to contribute towards the Monitoring health and wellbeing of our community. Animal Control -Safe drinking water is essential for healthy communities. -By responding to complaints, street patrols (for animals) and site visits we can help prevent anti- social behaviour, uncontrolled dogs, loud noises, and the sale of alcohol to minors, which can negatively impact people’s health and wellbeing. -By requiring buildings to comply with the building code we ensure that buildings are safe and more sustainable (for example they meet improved building insulation requirements). Part One: Introduction - Annual Report 2017/18 - Annual Report One: Introduction Part

15 Activities that Community contribute Progress towards community How will we contribute? outcomes to these outcomes outcomes

2. Decision making

a) Our community/Iwi Communications and We ensure the community and Iwi are informed about We have provided a wide range of information to the will be informed and Events what we are doing, and encourage them to engage community and Iwi. We have undertaken public consultation have the opportunity to Community Leadership with us throughout the decision making process. on the following documents: comment on significant Strategies and Plans Fees and Charges 2017/18 issues. Resource Consents and Rates Remission and Postponement Policies Monitoring Development Contributions Policy Joint Eastern Waikato Waste Minimisation Plan District Plan - Plan Change 47 2018 -2028 Long Term Plan As part of our Long Term Plan 2018-2028 we have consulted on the following major proposals: - Long Term Plan grant funding - Additional investment in regional economic development - Funding our Volunteer Youth Ambassadors - Preparing for a Matamata Bypass - Changes to the way we fund rubbish and recycling. - Extending the Hauraki Rail Trail - Major repairs to Headon Stadium

We have also undertaken public consultation on our representation arrangements to determine the ratio of elected members to people in our District.

We will provide feedback to the community on how we are doing by publishing our Annual Report 2017/18. We also made improvements to our website so that people can access Council information at their leisure. Please refer to the Levels of Service section for the activities listed for our contributions to this outcome.

(b) Tangata whenua Community Leadership The Te Manawhenua Forum is a standing committee Te Manawhenua Forum mo Matamata-Piako with manawhenua Strategies and Plans of Council that has been developed under a Heads of Te Manawhenua Forum mo Matamata-Piako status (those with Agreement with Forum members. The purpose of the Consents and In 2017/18 there were four meetings of Te Manawhenua authority over the Monitoring Forum is to facilitate Tangata Whenua contribution to land under Maori our decision making. We plan to achieve this outcome Forum mo Matamata-Piako. lore) have meaningful All of Council by continuing to fund and hold Forum meetings Issues considered included 2018 Waitangi Day Celebrations, involvement in each year, workshops where required and establish Tuia Rangatahi Mentoring Programme, Representation decision making. working parties to undertake specific projects so Iwi Review updates, Long Term Plan 2018 -2028, Te Aroha to can participate in decision making. Matamata Cycleway, Matamata-Piako Civic and Memorial The Forum can also make formal submissions to Centre, Te Wānanga o Aotearoa updates, an RMA training our plans and strategies (such as Long Term Plans course, the Waikato Plan, information on the Annual and District Plan changes). Through the submissions Customer Survey and Fees and Charges 2017/18. process, we are able to formally consider the views Waharoa (Matamata) Aerodrome Committee of the Forum. We aim to achieve this outcome by The Committee held three meetings in 2017/18; Issues consulting with the Forum on our key legislative considered included an overview of the aerodrome’s documents. operations and financials, options for improving vehicle We also consult with Iwi in the district on resource access to the adjoining Marae, speed limit discussions and consent applications made under the Resource future hangar options. Management Act 1991 that are relevant to Maori. More information on these committees is set out further on Consultation with Iwi is important in creating an in the Annual Report under ‘Maori participation in decision effective partnership in the management of the making’. district’s natural and physical resources. We consult with Iwi when we receive resource and subdivision Consultation on Resource Consent applications consent applications that may be of Iwi interest. As We measure this through the number of resource consent part of the memoranda of understanding that we consultation responses each financial year. The most have with a number of Iwi, there is no consultation on recent results being for 2016/17 as part of the State of the some types of resource consents, including breaches Environment Report that was produced in November 2017. of development controls such as yard requirements The response rate by Iwi to Council consultation has varied in urban areas. in the past 10 years in the range between 20% and 90%. It is anticipated that as Iwi complete treaty settlement negotiations, Council will continue to move towards a model of providing reports on resource consents to Iwi, and our indicators will need to be reviewed as the percentage of individual responses to resource consents will drop. Response rates are as follows:

2000/01 - 59% 2001/02 - 77% 2002/03 - 68% 2003/04 - 80% 2004/05 - 74% 2005/06 - 45% 2006/07 - 45% 2007/08 - 74% 2008/09 - 80% 2009/10 - 68% 2010/11 - 52% 2011/12 - 56% 2012/13 - 90% 2013/14 - 42% 2014/15 - 20% 2015/16 - 50% 2016/17 - 50% Part One: Introduction - Annual Report 2017/18 - Annual Report One: Introduction Part

16 Activities that Community contribute Progress towards community How will we contribute? outcomes to these outcomes outcomes

(c) Council’s decision Community Leadership Te Manawhenua Forum, a standing committee of Please see the information above on the public making will be sound, Strategies and Plans Council, which is made up of Iwi representatives consultations Council has undertaken this year. We will visionary, and consider Resource Consents and from around the district meets quarterly to make continue to look at ways to best engage with the public to the different needs of Monitoring recommendations to Council regarding a variety of encourage participation in the democratic process. our community/Iwi. our projects. Please refer to the Levels of Service section for the activities To enable the democracy process, the community listed for our other contributions to this outcome. needs to know when, where and how decisions are being made. We actively encourage community engagement and work to reduce barriers for the public in dealing with us. This means people can be confident that we will listen to and respect ideas from the community, and Council decisions will reflect the wants and needs of the community.

(d) Council will recognise Community Leadership We have been working with the Crown to provide We measure progress through the extent to which we have treaty settlement Strategies and Plans feedback on treaty settlement issues. We aim to participated in Treaty of Waitangi settlement negotiation issues between the recognise treaty settlement issues working through discussions. There are four Iwi groups within Matamata- Crown and Iwi. the Office of Treaty Settlement process. Piako that are at various stages with the Crown regarding Treaty of Waitangi Settlements. Council has been engaged at varying levels in these processes. Please refer to the information under ‘Maori participation in decision making’.

3. Recreation and facilities

(a) Council’s reserves Libraries Careful design of new parks and park developments, We have achieved this outcome by continuing to provide and facilities will be Parks and Tracks regular building and playground inspections, parks and reserves, pools, recreation facilities and libraries safe, well maintained Public Toilets swimming pool and spa audits contribute to the that are accessible to the community, along with completion and accessible to safety of reserves and facilities. All of our facilities of the Matamata-Piako Civic and Memorial Centre. encourage people to Cemeteries are well maintained and conveniently located to use them. Recreation Facilities encourage use. We also hosted events such as the summer reading and Heritage programme at our libraries. Please refer to the Levels Pools and Spas of Service section for the activities listed for our other contributions to this outcome.

(b) People will be well Communications and Our website allows customers to find the information In 2017/18 we had 146,015 visits to our website. This is informed of the Events they need and interact with us at any time, from an increase of 1.9% from last year. We have continued to district's resources, anywhere. encourage people to make submissions and applications equipment, and online through our website and to sign up to our facilities. e-newsletter mailing lists.

(c) Council walking Parks and Tracks A track brochure is available at information centres We continue to work with community groups to develop and cycling tracks and track information and maps are also available on and maintain tracks so they are safe and well maintained will be promoted, our website. We are also improving signage along our for people to use. For example, we worked with the Rotary well maintained, tracks. We are planning to expand the tracks available Club of Matamata to develop the Peria Road to Dawson and developed as in our community through the implementation of the Street walkway. We also developed the Avenue Road South resources allow. Open Spaces Strategy 2013 as part of the Long Term connection to the Morrinsville River Walk in conjunction Plan 2015-25. with the Lions Club Morrinsville. New track map signs were installed at the Hamilton Street and Tui Road carparks. We have continued consulting key landowners about the proposed new linkage parks and walkways in Morrinsville and Matamata. Planning and consultation for the cycleway extension from Te Aroha to Matamata was completed and construction is due to start in 2018/19 A new modular playground was installed at Herries Memorial Park. Please refer to the Levels of Service section for the activities listed for our other contributions to this outcome. .

(d) The tourism potential Strategies and Plans We support tourism and businesses in our district We have contributed to this outcome by contributing of our district will through partnering with local and regional $150,000 to regional tourism promotion, $50,000 to the be recognised and organisations to promote our district. public relations association in Matamata and $70,000 to encouraged. the Morrinsville Chamber of Commerce as well as operating the Te Aroha i-SITE. The operation of the Hauraki Rail Trail, which we help fund, is providing opportunities for tourism and growth in our community. Council is also in the process of extending the cycleway to Matamata, to further encourage its use.

(e) Maori cultural facilities Communications and In order for Maori cultural facilities to be recognised We measure progress by recording how Council has (such as Marae) will Events the community need to be aware of them. We aim to supported/ contributed to Maori cultural facilities (e.g. be recognised for provide information on our website about our local funding, rates relief). We currently have recorded 41 non- their contribution to Maori cultural facilities so the community can be rateable Maori properties and 147 rateable Maori properties community wellbeing. informed about the important role they play in the in the district. The value of non rateable (freehold) Maori district. properties in the district is $6,580,000. The value of We also aim to provide opportunities for rates relief rateable Maori properties in the district is $92,698,900 through our policy on rates remissions for Maori ($91,052,900 in 2016/17). The value of Maori freehold land freehold land and policy on Postponement of Rates is adjusted to reflect the requirements of Te Ture Whenua on Maori freehold land. Maori Act 1993. Council remits approximately $13,000 each year on Maori properties. Council did not receive any applications to the Heritage Building Fund in 2017/18. Part One: Introduction - Annual Report 2017/18 - Annual Report One: Introduction Part

17 Activities that Community contribute Progress towards community How will we contribute? outcomes to these outcomes outcomes

(f) Maori will have Parks and Tracks We manage parks and reserves for the benefit of the As a result of completion of Treaty of Waitangi settlement opportunities community. One of our aims is to ensure that Iwi are negotiations with Ngāti Haua, we have one statutory to provide input consulted with on our reserve management plans. co-governance Committee of Council and Ngāti Haua to the governance We measure progress by the number of formalised to oversee the governance of the Waharoa (Matamata) of ancestral lands arrangements for joint management of reserves and Aerodrome. We are currently reviewing the Waharoa administered as number of times Iwi are consulted with on reserve Aerodrome Reserve Management Plan and have been reserves. management plans and the number of reserves actively consulting with both the Waharoa Aerodrome classified as historic reserves or otherwise for Maori co-governance committee and Ngati Haua during 2017/18. purposes. Reviews of reserve management plans generally happen once every five years or more. Council does not have any historic reserves identified for Maori purposes.

4. Our environment

(a) Council will manage Stormwater Stormwater systems discharge treated stormwater We hold four comprehensive stormwater resource contaminants, odours to the environment. The quality and quantity of the consents relating to the urban areas of Matamata, Te Aroha, and air pollution from Wastewater discharge must meet the appropriate standard. Morrinsville and Waharoa. its activities. We will manage our contaminants, odours, air We hold 18 comprehensive wastewater resource consents pollution and ensure compliance with our resource relating to our wastewater networks in Matamata, Waihou, consent conditions for these discharges to contribute Tahuna, Morrinsville and Te Aroha. to the health and well being of our community. Please refer to the Levels of Service section for the activities listed for our contributions to this outcome.

(b) Council will provide Rubbish and Recycling Making sure our services are reliable and available We provided ‘zero waste’ education resources to 25 schools and promote encourages people to recycle and to dispose of waste in our district and supported the Enviroschool’s programme sustainable waste responsibly and sustainably. with 11 participating schools in Matamata-Piako. management options We are achieving this outcome by providing refuse and to protect our recycling services to the community. Please refer to the environment. Levels of Service section for the activities listed for our other contributions to this outcome.

(c) Council will protect Strategies and Plans Our District Plan sets rules to protect significant We have committed to undertaking a rolling review of our and regenerate our Resource Consents and natural features, wahi tapu and to regulate District Plan. Further information about each of the plan native flora, wetlands Monitoring development. Through the implementation of these changes can be found in Part 3 - Strategy and Engagement. and significant natural rules, we protect the community from adverse We also continued to monitor the state of the environment features. effects on the environment. and published the State of the Environment Report 2017 on our website in November. Monitoring and reporting on the state of our Information on the number of consents for subdivision of (d) The adverse effects of environment allows us to identify if we are achieving our objectives to protect the environment and high quality soils has varied between 2 and 42 per year development, industry between 2006/07 and 2016/17. The large increase from 11 and farming will be highlights any issues that need to be addressed during District Plan reviews. Resource consents applications in 2010/11 to 37 applications in 2011/12 may managed, monitored be due to the now operative Rural Subdivision District and minimised. need to be completed within statutory timeframes to ensure development projects can be completed Plan change (Plan Change 42), which was consulted on in seamlessly. To ensure decision making is fair and just, 2011/12, and proposed to increase the minimum lot size in (e) High quality soils in the regulatory planning department have measures rural areas to 40 hectares. our district will be in place to ensure we are consistent when dealing Please refer to the Levels of Service section for the activities protected. with resource consents. listed for our other contributions to this outcome.

5. Arts and heritage

(a) The whakapapa Strategies and Plans Through this activity we apply the rules set down in The Te Aroha Character Area has a special zoning to protect (ancestral heritage)/ our District Plan to protect the whakapapa (ancestral its unique buildings and places. From 2006/07 – 2016/17 heritage and character heritage)/heritage and character of our district. there have been 12 resource consents applied for, and of our district will We measure progress by the number of resource granted, to substantially modify scheduled buildings in be protected and consents applied for/granted to substantially modify the Te Aroha Character Area. These have mainly related promoted. scheduled heritage buildings and/or buildings within to altering the appearance of buildings by the addition of the Te Aroha Character Area and measures taken signage or decks. Since 2006/07 two resource consents by Council toward the recognition and protection have been granted to modify listed heritage features of cultural/heritage sites e.g. funding, numbers of outside the Te Aroha Character Area. resource consents impacting heritage or cultural sites. There are 88 listed heritage features in the Matamata- Piako District Plan. These include historic buildings such as churches and commercial buildings, as well as monuments, geological formations and landing sites. There were no applications to the Heritage Building Fund in 2017/18.

(b) Our kawa (protocol), Strategies and Plans We have developed and will continue to work on We engage with Te Manawhenua Forum mo Matamata- tikanga (customs), protocols to raise our cultural competency to work Piako and post-treaty settlement Iwi entities to understand history and knowledge more effectively with Iwi/hapu and be responsive consultation needs. We have worked with the Forum on the will be respected and to Maori protocols, customs, heritage and culture. development of Tangata Whenua Engagement, Guidelines preserved. This will help ensure our engagement with Maori is and Kaitiaki/Cultural Monitoring Protocols to assist with meaningful and leads to positive outcomes for our Council’s communication with Iwi. communities.

(c) Wahi tapu and taonga Resource Consents and Regulatory Planning is a service provided by There are 78 wahi tapu sites listed in the District Plan and (significant and Monitoring Council as one of the activities required to meet our these include urupa (burial sites), pa and midden sites, and treasured sites) will be obligations under the Resource Management Act Marae. recognised. 1991. In 2015/16, three consents had conditions imposed. These included an undertaking to revisit the consent conditions should a co-management settlement act be signed for the Waihou catchment within 12 months, to ensure consistency between the requirements of the act and the resource consent. In 2016/17, there were two conditions imposed on resource consents; these were in relation to erosion protection and earthworks to re-contour land and develop a walkway for a tourist accommodation venture by lake Karapiro. Also, two consents required archaeological discoveries to be reported to Tangata Whenua and Council; that work must cease immediately and not recommence until after Tangata Whenua values and interests had been considered and written permission had been provided by Council. Part One: Introduction - Annual Report 2017/18 - Annual Report One: Introduction Part

18 Activities that Community contribute Progress towards community How will we contribute? outcomes to these outcomes outcomes

(d) People will have the Libraries We will have resources available at our libraries that In the 2017/18 financial year, our total Maori item category opportunity to learn give people the opportunity to learn about their count was 1,520. In the 2017/18 financial year we added about their own own and others kawa (protocol), tikanga (customs), 73 new items with a Maori item category to our library and others kawa whakapapa (ancestral heritage), heritage and culture. collection. The usage of our Maori collection items is (protocol), tikanga measured by our borrowing records. In 2017/18, there were (customs), whakapapa 123 Maori items issued to library members. (ancestral heritage), heritage and culture. In 2017/18 we worked with local community groups to organise a community event for Waitangi Day 2017. This event was held in Te Aroha.

(e) Council will encourage Communications and Our website helps keep the community informed We have contributed to this outcome by providing the arts. Events about arts events in our community. information on arts events in our online events calendar.

We have also provided annual funding of $24,000 to our district’s museums, $20,000 to Wallace Gallery in Morrinsville, and community grants to local culture and arts organisations and groups to assist with the running of events and equipment purchases.

Growth and Development

(a) Council plans Strategies and Plans We will continue to review and monitor our plans to We have committed to undertaking a rolling review of our will be flexible, to Resource Consents and ensure they meet the needs of our community. We District Plan. Further information about each of the plan accommodate well- Monitoring also aim to ensure that all our strategies are well- changes can be found in the Strategy and Engagement, planned, sustainable planned and flexible to respond to the needs of the Levels of Service section. growth. community by consulting with them when developing these documents.

(b) Development will be Resource Consents and Regulatory planning is a service provided by us as We measure progress by the number of resource consents conducted in a manner Monitoring one of the activities required to meet our obligations applied for/granted to substantially modify scheduled respectful to kawa under the Resource Management Act 1991. Through heritage buildings and/or buildings within the Te Aroha (protocol), tikanga this activity we apply the rules set down in our Character Area and measures taken by Council toward the (customs) and values. District Plan to ensure development is carried out in recognition and protection of cultural/heritage sites e.g. an appropriate way. funding, numbers of resource consents impacting heritage or cultural sites. Please refer to information under community outcome Through our District Plan we provide for the ongoing theme 5 Arts and Heritage for more information. management of the natural and physical resources of the district to ensure it is protected for future generations. Our District Plan objectives, policies and rules are one of the ways we can support facilities such as Marae and Papakainga

(c) Council will provide Roading Ensuring our assets are maintained and replaced We have continued to provide these services and activities essential infrastructure Rubbish and Recycling when required will ensure they meet the needs of our to the community. We have a proactive replacement and to meet the needs of Water community now and in the future. maintenance programme in place for all our assets to ensure our community now they continue to deliver services to our communities. and in the future. Wastewater Stormwater

(d) Council consent Building Consents and By processing consents we ensure projects meet Please refer to the Levels of Service section for the activities processes will ensure Monitoring relevant safety and environmental standards. listed for our other contributions to this outcome. that our communities Resource Consents and and environment are Monitoring safe and sustainable.

(e) Systems will exist to Water Providing safe drinking water is one of our core The Health (Drinking Water) Amendment Act 2007 provide sustainable services. Our plans look at the needs of our requires us to comply with the New Zealand Drinking Water clean water for our community for up to the next 100 years to ensure our Standards (NZDWS) 2008. This involves a rigorous testing community/Iwi. water services are sustainable. and monitoring regime and the preparation of a Water Safety Plans. Water testing and monitoring confirmed that our water supplies were safe to drink. Please refer to the Levels of Service section for the activities listed for our other contributions to this outcome.

(f) Council will support Strategies and Plans Through our District Plan we provide for the ongoing We measure progress by recording the number of Iwi Tangata Whenua in management of the natural and physical resources development and management plans in operation. We are their role to provide of the district to ensure it is protected for future aware of two Iwi development or management plans within facilities such as Marae generations. Our District Plan objectives, policies and the district boundaries: and Papakainga. rules are one of the ways we can support facilities • The Te Rautaki Taiao a Raukawa, the Raukawa such as Marae and Papakainga. Environmental Management Plan 2015 from Raukawa. We aim to support Tangata Whenua to provide • Waikato-Tainui Environmental Plan, Tai Tumu, Tai Pari, facilities such as Marae and Papakainga through Tai Ao from Waikato-Tainui. our Policy on Rates Remissions for Maori Freehold It is anticipated that as Treaty settlements are completed by Land and Policy on Postponement of Rates on Maori local Iwi and the Crown there will be a greater opportunity Freehold land. for Iwi to develop management plans. Treaty settlements also contemplate the creation of co-governance frameworks for natural resources, such as the Waihou and Piako rivers. We also measure progress by recording the number of non-rated Marae and meeting houses as per the Local Government (Rating) Act 2002. Please refer to information under community outcome 3(e) for this information.

(g) Council will contribute Roading We work to provide a roading and footpath Please refer to the Levels of Service section for the activities to a safe and efficient network that is accessible and affordable. One of listed for our contributions to this outcome. transport network. the ways we can measure the safety of our roading network is by the number of serious injury and fatal accidents that occur. Part One: Introduction - Annual Report 2017/18 - Annual Report One: Introduction Part

19 20 Part One: Introduction - Annual Report 2017/18 Maori participation inCouncil decision making established underaHeads of Agreement with the is astanding committee of Councilthat hasbeen Te Manawhenua Forum moMatamata-Piako (Forum) Te Manawhenua Forum moMatamata-Piako have opportunities to contribute to decision makinginthe district. Whanaunga, Ngati Paoa, Ngati Tamatera andNgati Hinerangi. This isreflected in ourprocesses for Maori to lands) or interests in our district, includingNgati Haua, Ngati RahiriTumutumu, Raukawa, Ngati Maru, Ngati opportunities for Maorito contribute to our decision makingprocesses. Several Iwihave rohe (ancestral Under theLocal Government Act2002, we needto establish andmaintainprocesses to provide Ngati RahiriTumutumu. Pukenga, Te Patukirikiri, Ngati Tai kiTamaki and Ngati Whanaunga, Ngati Hei, Ngati Maru, Ngati Tamatera, Ngati Tara-Tokanui, Ngati Porou kiHauraki, Hauraki Collective are Ngati Hako, Ngati Paoa, Ngati possible elements of a settlement. The Iwiin the towards settlement of shared claims, including outlined theprocess for ongoing negotiations Hauraki Collective Framework agreement, which In 2010, theCrown andHauraki Iwisignedthe Treaty Settlements of Waitangi Hauraki settlements. and Iwi, we will beaffected by the outcome ofthese While theseagreements are between theCrown variousTreatystagessettling of Waitangi of claims. currently negotiating with theCrown andare at Iwi inandaround theMatamata-Piako District are TreatyWaitangi of settlements availableat www.mpdc.govt.nz. year in our State of theEnvironment Report, which is Iwi. The results of thismonitoring are reported each number of times we seekandreceive feedback from the resource consent process. We alsomonitor the wereview will how wethroughIwi engagewith review of theDistrict Plan. Aspart of thisprocess Act 1991. We are currently undertakingarolling applications madeundertheResource Management districtto resource consultthem on with consent Currently we have agreements with Iwi within the processing Resource Management Act1991 - resource consent WhenuaMana contributiontomaking. ourdecision Forum. The purpose of theForum isto facilitate a co-governance committeeWaharoathe called Council, theCrown andNgati Hauaagreed that (Matamata) Aerodrome. Aspart of settlement, the of significance to Ngati Hauaisthe Waharoa was passed into law inDecember 2014. One site The Ngati HauaClaimsSettlementAct2014 Treaty Settlement Haua of Waitangi Ngati between theCrown andHauraki Iwi. provide feedback inthe ongoing negotiations councils) have been engaged by theCrown to Regional Counciland other adjoining district importance to theIwi. We (as well asthe Waikato are of significant cultural, historical andspiritual Haua alsohave interests inthe Waihou River that The Crown acknowledges that Raukawa andNgati Crown initsDistrict Plan. to includestatutory acknowledgements of the Management Plan)2015. Council hasbeenrequired Rautaki Taiao aRaukawa (Raukawa Environmental Council andRaukawa. Raukawa have released Te There were nospecificarrangements between Claims SettlementAct2014 reflects thisagreement. settlement signed on 2 June 2012. The Raukawa Iwi with legislation to give effect to the deed of The Crown hassettledthe claims of theRaukawa TreatyRaukawa Settlement of Waitangi in December 2015. Ngati Hinerangi signingtheirAgreement inPrinciple Hinerangi. These negotiations are on going following Crown on itssettlementnegotiations with Ngati We have beeninvited to provide feedback to the Treaty Settlement of Waitangi Hinerangi Ngati Matamata-Piako Operative District Plan. as they relate to the district inAppendix10 of the has incorporated thestatutory acknowledgements, established for the Waharoa Aerodrome. Council Ngati HauaandCouncilrepresentatives would be (Matamata)Aerodrome Committee comprising of

Financial statements For the year ended 30 June 2018 Statement ofcomprehensiverevenue and expense Part Two: Financials The accompanying notes form part of thesefinancial statements. Explanations of major variances against budgetare provided inNote 25. For the year ended 30 June 2018 Statementin equity ofchanges The accompanying notes form part of thesefinancial statements. Explanations of major variances against budgetare provided inNote 25. 2016/1 2016/17 ($000) Actual Actual Actual Actual $000 581,345 586,144 (4,799) (8,643) (4,799) (18,817) 34,079 47,085 50,921 13,958 17,963 3,844 13,815 10,174 7,360 1,349 1,239 7,170 7 549 524 8 Development andfinancial contributions Feesand charges and grantsSubsidies Rates Revenue Total comprehensiverevenue and expense Total othercomprehensiverevenue and expense Property, plantand equipment revaluations Financial assets at fair value through other comprehensive revenue and expense Other comprehensiverevenue and expense Surplus/(deficit) Share of joint venture surplus/(deficit) Total expenses Other expenses Finance costs Depreciation andamortisation Personnel costs Expenses Total revenue Other revenue Interest revenue Total comprehensive revenue and expense for the year Balance at 1 July Balance at 30 June Notes Notes 15 21 21 12 4 3 5 2 2 2 2 2

Annual Plan Annual Plan 2017/18 2017/18 $000 $000 586,886 600,511 46,407 16,050 12,929 13,625 14,638 47,103 12,929 13,625 34,177 13,953 5,647 1,766 6,151 405 466 696 257 - - 2017/18 2017/18 Actual Actual Actual Actual $000 $000 607,701 581,345 34,099 26,356 20,398 48,867 54,823 26,356 19,499 19,945 14,018 14,015 6,990 5,958 4,491 1,790 6,831 1,335 453 622 2 21 Part Two: Financials - Annual Report 2017/18 22 Part Two: Financials - Annual Report 2017/18 As at 30 June 2018 financial statements. Explanations of major variances against budget are provided innote 25. The accompanying notes form part of these Statement of financialposition 2016/17 Actual Actual $000 622,408 425,934 595,592 580,876 581,345 581,345 27,320 41,063 26,816 155,411 24,616 13,447 19,339 13,743 3,876 1,002 1,595 2,591 1,524 6,731 5,191 450 649 659 262 216 281 80

81 5 - - - Investments inCCOsand other similar entities Other financialassets Derivative financialinstruments Non-current assets heldfor sale Inventory Prepayments Receivables and cashequivalentsCash Current assets Assets Total equity Other reserves Accumulated funds Equity Net assets (assets minusliabilities) Total liabilities Total non-current liabilities Provisions Employee entitlements Borrowings Derivative financial instruments Non-current liabilities Total currentliabilities Provisions Employee entitlements Borrowings Derivative financialinstruments Payables and deferred revenue Current liabilities Liabilities Total assets Total non-current assets Intangible assets Property, plantand equipment Investments- in otherentities - Investments inCCOsand other similar entities Other financialassets Derivative financialinstruments Non-current assets Total currentassets Investments- in otherentities Notes 10 10 10 10 14 19 19 16 18 18 13 21 21 17 17 11 11 11 11 9 6 8 7 Annual Plan 2017/18 $000 405,026 638,938 632,846 647,784 195,485 600,511 600,511 36,508 35,284 47,273 10,765 3,000 8,846 3,062 4,837 1,300 4,184 5,192 2,112 835 918 613 174 611 89 ------2017/18 Actual Actual $000 609,505 646,588 429,837 624,170 607,701 607,701 177,864 38,887 19,000 17,044 21,843 22,418 12,778 13,814 3,958 3,892 6,475 8,616 1,661 1,861 380 850 602 426 839 389 136 216 76 - - 1 The accompanying notes form part of thesefinancial statements. Explanations of major variances against budgetare provided inNote 25. Statement of cashflows For the year ended 30 June 2018 2016/17 Actual Actual $000 (16,846) (26,218) (16,939) (13,841) (2,699) (9,899) 34,403 (1,344) 18,699 5,000 4,820 (290) 5,290 8,249 6,875 (180) 2,591 (33) 496 576 572 261 241 - - - Cash flows from financingactivities Net cash flows from investing activities Purchase ofown your ownproperties Acquisitioninvestments of Purchase of intangibleassets Purchase of property, plantand equipment Proceeds from sale/maturity of investments Receipts from thesale of property, plantand equipment Receipts from therepayment of loansandadvances Cash flows from investing activities Net cash flow from operating activities GST (net) Interest paid Paymentsto employees Payments to suppliers Receipts from other revenue Dividends received Interest received Development andfinancial contributions received Fees and charges received Subsidies and grants received Receipts from rates revenue Cashflows from operating activities Cash and cashequivalentsthe yearCash the endof at Cash and cash equivalents at thebeginning of the year Net (decrease)/increase in cash and cash equivalents Net cash flows from financingactivities Repaymentborrowings of Proceeds from borrowings

Notes 6 nul Plan Annual 2017/18 $000 (16,049) (21,624) (14,638) (22,316) (1,765) 14,451 34,177 5,647 7,389 7,389 6,151 (97) 405 266 835 257 573 214 619 216 ------2017/18 Actual Actual $000 (12,808) (18,848) (13,947) (19,074) 16,300 (1,323) (2,191) 34,271 (5,191) 3,000 3,892 6,528 (416) 1,796 2,591 5,719 1,301 7,416 (99) 650 232 318 217 31 21 - 23 Part Two: Financials - Annual Report 2017/18 24 Part Two: Financials - Annual Report 2017/18 Reconciliation of surplus/(deficit) to net cashflow from operating Statement of cashflows For the year ended 30 June 2018 (continued) The accompanying notes form part of thesefinancial statements. 2016/17 Actual Actual $000 18,699 13,027 13,958 3,844 (959) (184) (36) (26) 206 945 895 933 (12) 674 164 (8) (7) 119 21 - Net cash inflow/(outflow) from operating activities Net movement in working capital items Increase/(decrease) inprovisions Increase/(decrease)in employee entitlements Increase/(decrease) inpayables (Increase)/decrease ininventory (Increase)/decrease inprepayments (Increase)/decrease inreceivables Add/(less) movements in working capital items Total items classified asinvesting orfinancingactivities (Gains)/lossesproperty, ondisposalof and equipment plant Add/(less) items classified asinvesting orfinancingactivities Total non-cashitems Other non-cash operating items Assets under construction reclassified as operating expenditure (Gains)/losses on derivative financialinstruments (Gains)/losses on disposal of investments inCouncil Controlled Organisations Vested assets revenue Depreciation andamortisation expense Share of joint venture surplus/(deficit) Add/(less) non-cashitems Surplus/(deficit) (Gains)/losses on thefair value of loansandreceivables

activities Actual 2017/18 Actual $000 16,300 (4,166) 10,271 14,018 5,958 (625) (256) (108) (189) (64) (82) (57) 696 220 703 265 (2) (7) 67 - Financial statement notes Notes index Notes NOTES TO THEFINANCIAL STATEMENTS FOR THE YEAR ENDED30 JUNE 2018 2 Revenue...... 28 1 Statement of accounting policies...... 26 8 Inventory...... 36 7 Receivables...... 34 6 Cash and cash equivalents...... 34 5 Other expenses...... 32 4 Finance costs...... 32 3 Personnel costs...... 31 25 Explanations of major variances against budget...... 60 24 Financial instruments...... 55 23 Events after balance date...... 54 22 Related party transactions...... 54 21 Equity...... 51 20 Contingencies...... 50 19 Provisions...... 49 18 Employee entitlements...... 48 17 Borrowings...... 47 16 Payables and deferred revenue...... 47 15 Depreciation and amortisation expense by group of activity...... 47 14 Intangible assets...... 46 13 Property, plant and equipment...... 39 12 Investment in joint venture...... 39 11 Other financial assets...... 37 10 Derivative financial instruments...... 37 9 Non-current assets held for sale...... 36 25 Part Two: Financials - Annual Report 2017/18 26 Part Two: Financials - Annual Report 2017/18 The financial statements of the Council are for the year ended 30 June 2018. The financial statements were authorised authorised were statements financial The 2018. June 30 ended year the for are Council ofthe statements financial The purposes. reporting financial for (PBE) Entity Benefit aPublic as itself designated has Council community. to the functions regulatory performs and services, public local infrastructure, local provides Council The committee. the on representation equal has Council Each Council. District Thames-Coromandel and Council District Hauraki with together Committee, Management Emergency Defence Valley Civil Thames entity, controlled ajointly in interest a34% has Council 2002. Act (Rating) Government Local the LGA and the includes operations Council’s the governing legislation relevant The Zealand. New in operates and domiciled is (LGA) and 2002 Act Government Local the under established authority alocal is Council) (the Council District Matamata-Piako entity Reporting policies accounting of Statement 1. amortised cost. or value fair at measured is asset an whether determining for requirements classification asset financial •New are: Council this 9affecting IFRS PBE under changes main The permitted. application early with 2021, January 1 after or on beginning periods annual for effective 9is IFRS PBE Measurement. and Recognition Instruments: Financial 29 IPSAS PBE 9replaces IFRS PBE Instruments. 9Financial IFRS PBE 2017, issued XRB the January In instruments Financial standards. new ofthese effects the assessed not yet has Council The statements. financial 2020 June 30 the preparing in standards new the apply to plans Council permitted. application early with 2019, January 1 after or on beginning periods annual for effective are standards new 6-8). The IPSAS (PBE entities other in interests for standards existing the replace standards entities new These -38). 34 IPSAS (PBE entities other in interests for standards new 2017, issued XRB the other January In in Interests are: Council the to are relevant which and adopted, early been have not that yet effective not but issued amendments, and Standards adopted early not and yet effective, not and issued Standards policies. accounting in changes other no have been There changesOther in accounting policies belongs. asset the to which ofasset class entire the to revalue having without asset revalued a impair therefore can Council The amount. carrying the than less is amount recoverable the if loss impairment an recognise and asset ofthat amount recoverable the to assess required is Council the exists, indication any If impaired. may be asset an that indication any is there whether date reporting each at to assess required is Council the onwards, 2017 year June 30 the From statements. financial 2017 June 30 its preparing in amendment this adopted early has Council The standards. accounting impairment the into scoped were cost at measured assets equipment and plant, property, only Previously, standards. accounting impairment the into equipment and plant, property, revalued in scopes now which Assets, ofRevalued Impairment issued (XRB) Board Reporting 2017, April External In the Assets Revalued of Impairment are: adopted early havebeen that yet effective not but issued amendments and Standards adopted early havebeen that yet effective not and issued Standards dollar. nearest to the rounded are disclosures transaction party related and payment, severance remuneration, The 22. Note in disclosures transaction party related the and 3, Note in disclosures payment severance the and remuneration the than other ($000), dollars thousand nearest to the are rounded values all and dollars New Zealand in presented are statements financial The Presentation currency and rounding Standards. PBE with comply and with accordance in prepared been have statements financial The GAAP). (NZ Zealand New in practice accounting accepted generally with to comply requirement the include which (LG(FRP)R), 2014 Regulations Prudence) and Reporting (Financial Government Local the and ofthe LGA, requirements the with accordance in prepared havebeen Council ofthe statements financial The Statement of compliance year. the throughout consistently applied havebeen policies accounting the and basis concern going on the prepared havebeen statements financial The Basis of preparation 2018. October 10 on by Council issue for Financial statement notes •Fair value of investment in Waikato Regional Airport Limited – see Note 11. Note –see Limited Airport Waikato in Regional ofinvestment value •Fair Note13. see – property of •Classification policies: accounting applying in judgements critical following the exercised has Management Critical in judgements applying accounting policies 19. Note –see provisions Council’s •Estimating 13. Note –see assets infrastructural and buildings, ofland, value fair the •Estimating are: year financial next the within liabilities and ofassets amounts carrying to the adjustment amaterial of causing risk have asignificant that assumptions and estimates The circumstances. the under reasonable to be believed are that events future or expectations including factors, other and experience historical on based are and evaluated continually are assumptions and Estimates results. actual subsequent the from may differ assumptions and estimates These future. the concerning made havebeen assumptions and estimates statements, financial these preparing In assumptions and estimates accounting Critical benchmarked against neighbouring local authorities for moderation. been also has Council of activities the to costs indirect of allocation The area. floor and numbers staff usage, actual as such drivers cost appropriate using activities significant to charged are costs Indirect activities. to significant directly charged are costs Direct activity. significant specific a with manner, feasible economically an in identified be cannot which costs, are those costs Indirect activity. to asignificant attributable directly costs those are costs Direct Cost allocation statements. financial these preparing in Council by the adopted those with consistent are that policies accounting GAAP, NZ with using accordance in prepared been have figures budget The Plan. Annual 2017/18 its in Council approved by the are those figures budget The figures Budget deficit. or surplus the in recognised are currencies foreign in denominated liabilities and assets monetary of rates exchange year-end at translation the from and transactions ofsuch settlement the for resulting losses and gains exchange Foreign transactions. ofthe dates the rate at exchange spot the using currency) functional (the NZ$ into translated are contracts) exchange foreign to forward subject those (including transactions currency Foreign Foreign currency transactions ofGST. exclusive disclosed are contingencies and Commitments flows. cash of statement the in flow cash operating an as classified is activities, financing and to investing relating GST including IRD, the from or received to paid GST net The position. offinancial statement the in payables or receivables of part as included is (IRD) Department Revenue Inland to, the payable or from recoverable ofGST amount net The expense. or asset related ofthe part as recognised is it then tax input as recoverable not is GST Where basis. inclusive a GST on stated are which payables and GST, of receivables exclusive for stated except are statements financial the in Items (GST) tax services and Goods below. outlined are note to aspecific relate not do that policies accounting Significant relate. they notes which to in the included are policies accounting Significant policies accounting significant of Summary standard. new ofthe effects the assessed not yet has Council The statements. financial 2022 June 30 its preparing in standard this to apply plans Council losses. impairment of recognition earlier in the may result which losses, on expected based assets financial for model •A impairment new 27 Part Two: Financials - Annual Report 2017/18 28 Part Two: Financials - Annual Report 2017/18 Donated and bequeathed financial assets assets financial purpose). nominated the for spent are funds the as example, (for met are conditions the as to revenue released liability the and conditions return or use substantive are there if recorded is Aliability conditions. bequeathed or return use substantive are there unless as revenue are recognised assets and financial bequeathed and Donated Donated identified. are they that time the from value fair their at recognised are assets for. These accounted previously been have not assets these entity), and by other any such as recorded not is (and asset that asset of the management and control we have full where or we own, that ofassets value the recognises revenue asset Found assets Found party. to another asset the pass or return to need will it that expects Council the if only recognised is Aliability revenue. as asset ofthe value fair the recognises immediately Council reserve), the as a recreation used be must that land example, use (for aspecific for used be must that assets long-lived For 2001. 1July at as district whole ofthe areas rural and urban the for values land average the using valued is which roads under land is to this exception An developer. property by the provided information price construction on based is value fair the developments, property from received assets For asset. the assets constructing of cost to the by reference determined usually is assets donated or ofvested value fair The asset. to the attached physical condition return or ause is there unless revenue, as recognised is asset ofthe value fair The asset. ofthe control obtains Council the when value fair its at recognised is asset the donated consideration, nominal or no for received assets For or Vested contributions service. the to provide, able is or provides, Council the as time such until liabilities as are recognised financial contributions financial and development Otherwise charged. was contribution the which for service the and provide, to able is or provides, Council the when as revenue are recognised contributions financial and Development Development term. lease over the basis line astraight on for accounted by is us owned property on arising revenue rental and Lease Lease and rental revenue rental and fines Lease and fees received. isrevenue fine or fee ofthe payment the when are recognised control animal to related fines and fees Infringement consent Infringement resource invoiced. or received when recognised are services consent resource and and building for charges and Fees Building balance date. at work ofthe ofcompletion stage to the by reference revenue as recognised is works private from revenue The works Private licence. ofthe renewal upon fees, oflicence or, case the in to pay arises obligation the when revenue charges as recognised are charges and Fees and Fees satisfied. are grant ofthe conditions when revenue as recognised and advance in received grants as recorded initially are grants the obligation, an such is there If met. not are grant ofthe conditions if funds the return received to substance in obligation an is there unless receivable become they when revenue as recognised are grants subsidies Other grants Other roading Agency fulfilled. have been expenditure to eligible pertaining conditions as entitlement, upon revenue as recognised are subsidies The infrastructure. roading local the on expenditure capital and of maintenance Transport costs ofthe part subsidises which Agency, Transport Zealand New the from assistance funding receives Council The Zealand New policy. remission rates its satisfies that application an received has Council the when revenue ofrates areduction as recognised are remissions • Rates invoiced. is it as recognised is water-by-meter rates from • Revenue overdue. become rates when revenue as recognised are penalties payment late from arising • Rates revenue. ofinterest recognition subsequent and receivables of rates discounting require to sufficient not is instalments rates of by payment of effect the considers Council The due. amounts at the are recognised They relates. resolution rates the which to year financial ofthe start the at recognised are charges general annual (excluding rates water-by-meter), uniform targeted and rates, • General applied: have rates been for policies following The revenue Rates below: areexplained items revenue significant for policies accounting specific The value. fair at measured is Revenue Accounting policy Revenue 2.

(I) Breakdown of rates andfurtherinformation (II) Breakdown of subsidiesand grants purposes of theLGFA Guarantee andIndemnityDeed disclosure isshown above. those other Local Authoritiesrate. The annualrates income of theCouncilfor the year ended 30 June 2018 for the with any revenue received by theCouncilfrom other localauthoritiesfor services provided by that Councilfor which to thetotal revenue from any fundingmechanismauthorisedby theLocal Government (Rating) Act2002 together its financial statements (or notes), ourannual rates income. That Deed definesannual rates income asanamount equal The Councilisrequired by theLocal Government FundingAgency (LGFA) Guarantee andIndemnityDeedto disclose in established. been has payment the receive dividends to right the when are recognised Dividends method. interest and effective the using recognised is revenue Interest Interest 2016/17 2016/17 $000 $000 20,086 34,079 4,597 (498) 7,360 3,495 2,763 6,785 2,347 1,303 2,891 2,651 1,102 856 133 112 99 77 - Halls - Refuse - Stormwater - Wastewater water- Other rates - Metered water supply Targeted rates attributable to activities: General rates Total subsidiesand grants New Zealand Transport Agency roading subsidies and grantsSubsidies for capitalexpenditure Totaland grantssubsidies for capitalexpenditure Silver Fern Farms Events Centre Te Aroha project donations Total subsidiesand grants for operating purposes Other governmentsubsidies New Zealand Transport Agency roading subsidies Subsidies and grants for operating purposes Total rates Rates remissions Rates penalties sum contributionsLump 2017/18 2017/18 $000 $000 34,099 2,690 6,684 (483) 21,193 2,428 2,556 1,944 6,831 1,299 4,141 4,141 801 134 136 97 - - 29 Part Two: Financials - Annual Report 2017/18 30 Part Two: Financials - Annual Report 2017/18 (III) Breakdown of fees and charges No contingent rents have beenrecognised during the year. minimum leasepayments to be collected undernon-cancellable operating leasesare asfollows: Council alsohas one perpetualnon-cancellable lease for endowment property (2017: one). The future aggregate Council leasesitsproperty under operating leases. The majority of theseleaseshave cancellable terms of 36months. Operating leasesasalessor (V) Breakdown of other revenue (IV) Breakdown of interest revenue 2016/17 2016/17 2016/17 2016/17 $000 $000 $000 $000 1,239 1,076 1,229 7,170 549 965 296 520 497 959 744 235 238 722 130 914 195 167 43 67 23 27 19 12 5 2 7 - - Resource consent charges Propertyrental charges Property leaserevenue Total fees and charges user chargesOther facilitiesCommunity charges Cemetery fees and charges Library charges Aquatic facilities revenue Rubbish andrecycling charges Liquor andhealthlicensing fees Building consent charges Trade waste charges Later thanfive years Total non-cancellable operating leases Later than one year andnotlater thanfive years laterNot thanoneyear Total other revenue Unrealised gain on loansandreceivables Unrealised gain on interest rate swaps Dividend revenue Bequestsand otherdonations Petrol tax Fines andinfringementfees Vested landandinfrastructure from property development Listed bondsandborrower notes Termand on-calldeposits Total interest revenue Community loans 2017/18 2017/18 2017/18 2017/18 $000 $000 $000 $000 6,990 4,491 1,080 4,166 1,031 600 870 244 622 583 293 952 759 267 170 701 113 171 20 39 62 38 19 31 4 5 2 7 - Inland Revenue Departmentinrespect of that vehicle. the Mayor, italsoincludesnon-financialbenefits, beingtheuse ofamotor vehicle, andtheFringebenefit Taxpaid tothe The amountsshown includethebasesalarypaidto the elected representatives as well asany hearingfees. Inrespect of remuneration Elected representatives received thefollowing remuneration: representatives’ Elected $330,265 remuneration The total remuneration (includingandnon-financialbenefits) paid or payable forthe year totheChief Executive was Executive Chief Defined contribution superannuation scheme Breakdown of personnel costs andfurtherinformation superannuation superannuation schemesandare expensed inthesurplus or deficit asincurred. contribution Employer contributions to Kiwisaver, the Government Superannuation Fund, are accounted for as defined contribution Defined Accounting policy costs Personnel 3. 2016/17 2016/17 $000 $ 413,479 26,990 30,628 29,339 110,103 26,753

27,953 27,738 13,570 13,815 19,081 19,081 19,081 19,081 19,081 (2017: $309,152). 7,714 7,714 7,714 7,714 7,714 (26) 271 Councillor PeterCouncillor Jager Councillor BrianHunter Neil Goodger Councillor Councillor Paul Cronin Councillor Teena Cornes Councillor DonnaArnold Deputy Mayor, James Thomas Mayor,Barnes Janet Totalpersonnel costs Increase/(decrease)in employee entitlements Defined contribution plan employer contributions and wagesSalaries Total elected representatives’ remuneration Ex-Councillor Leonie Tisch Ex-Councillor Maurice Steffert Ex-CouncillorStanley Garry Ex-Councillor NickiRobb Ex-Councillor Robert McGrail Adrienne WilcockCouncillor Councillor Kevin Tappin Councillor Ashley Tanner Sainsbury Councillor James 2017/18 2017/18 $000 $ 432,257 2 28,448 3 34,076 27,208 27,208 27,208 27,208 27,335 111,972 13,665 3 31,289 14,015 8,448 0,568 1,289 283 67 - - - - - 31 Part Two: Financials - Annual Report 2017/18 32 Part Two: Financials - Annual Report 2017/18 term. term. Lease incentives received are recognised inthesurplus or deficit asa reduction of rental expense over thelease asset. Lease payments underan operating leaseare recognised asan expense on astraight-line basis over thelease leases An operating leaseisathat does nottransfer substantially alltherisksandrewards incidentalto ownership of an Operating applicant. and are recognised as expenditure when approved by theCouncilandapproval hasbeen communicated to the Discretionary grants are those grants where theCouncilhave no obligation to award on receipt of the grant application recognised as expenditure when anapplication that meetsthespecified criteria for the grant hasbeen received. Non-discretionary grants are those grants that are awarded if the grant application meetsthespecified criteria andare The Council’s grants awarded have nosubstantive conditions attached. expenditure Grant Accounting policy Other5. expenses Breakdown of finance costs Borrowing costs are recognised asan expense inthefinancial year in whichthey are incurred. Accounting policy costs Finance 4. payments Council did notmake any severance payments during the year ended 30 June 2018 (2017: nil). Severance (2017: 49) full-time equivalent employees. Afull-time employee is determined on thebasis of a40-hour working week. At balance date, theCouncil employed 147 (2017: 149) full-time employees, with thebalance of staff representing 49 Total remuneration includesnon-financialbenefits provided to employees. Council employee remuneration by band by remuneration Total annualremuneration by bandfor employees (includingtheChiefExecutive)employee asat 30 June: Council employees Number of 2016/17 2016/17 $000 1,349 508 820 245 156 42 31 21 12 4 Total finance costs - heldfor trading interest rate swaps Interest derivatives (presented net): - - Interest expense: Total employees $160,000$319,999 - $100,000$159,999 - $80,000$99,999 - $60,000$79,999 - <$60,000 discount unwind on provisions (note 19) interestborrowings on

Total annualremuneration by bandfor employees (includingtheChiefExecutive) asat 30 June: employees Number of 2017/18 2017/18 $000 1,335 240 736 578 145 29 51 21 11 4 Breakdown ofotherexpensesinformationfurther and 2016/17 $000 15,617 17,197 (24) 405 205 745 415 122 13 21 5 - - Insurance premiums and grantsDonations - - Fees to auditors: Total otherexpenses Other operating expenses Lossinvestments ofdisposal ControlledCouncil in Organisationsand otherentities lossproperty,Net ondisposalof and equipment plant Unrealised loss on interest rate swaps Review of provisions (note 19) Operatinglease expense Impairment of receivables (note 7) -

fees to AuditNew Zealand for theaudit of theLong Term Plan fees to AuditNew Zealand for audit of financial statements fees to AuditNew Zealand for theDebenture Trust Deedaudit 2017/18 $000 19,499 17,157 433 703 265 437 276 123 78 22 5 - - 33 Part Two: Financials - Annual Report 2017/18 34 Part Two: Financials - Annual Report 2017/18 Government (Rating) Act2002 to recover any outstanding debts. The Council does notprovide for any uncollectability on rates receivable, asithas various powers undertheLocal Assessment for uncollectability fairtheir value. Receivables are general short-term andnon-interest bearing. Therefore the carrying value of receivables approximates Fair value Breakdown of receivables andfurtherinformation collected. restrictions that isuncollectable isthe difference between theamount dueandthepresent value of the amount expected to be to considered to beuncollectable when there is evidence that theamount due will notbefully collected. The amount subject Short-term receivables are recorded at theamount due,are less any provision for uncollectability. Areceivable is that Accounting policy 7. Receivables transaction the fundsare required to bespent. non-exchange a trust funds(see Notein 21), where thespending of fundsisseparately monitored. The restrictions generally specifyhow subject to restrictions. These unspentfundsrelate to endowment landsales, reserves development andbequests and recognised The Councilholdunspentfunds, includedin cash at bankandinvestments of $394,000 Assets Breakdowninformationand cashequivalentsfurther ofcash and borrowings in current liabilitiesinthestatement of financialposition. investments with original maturities of three months or less andbank overdrafts. Bank overdrafts are shown within Cash and cash equivalents include cash on hand, deposits heldat call with banks, other short-term highlyliquid Accounting policy 6. Cash and cash equivalents 2016/17 2016/17 $000 $000 4,343 3,029 1,500 2,591 (186) 4,157 1,091 1,128 824 759 927 910 321 321 infringements, andfees and charges that are partlysubsidisedby rates Receivables from non-exchange transactions - thisincludes outstanding amountsfor rates, grants, Totalreceivables comprise: Total receivables Receivables (gross) Accrued income Other generalreceivables GST receivables New Zealand Transport Agency subsidy Totaland cashequivalents cash Term deposits with maturities of less thanthree monthsat acquisition Cash at bankand on hand and charges that have notbeensubsidisedby rates Receivables from exchange transactions - thisincludes outstanding amountsfor commercial salesandfees Less provision for uncollectability Metered waterreceivables Rates receivables

(2017: $705,000) that are 2017/18 2017/18 $000 $000 2,400 3,446 3,958 3,892 (253) 1,492 2,164 4,211 468 866 333 276 104 512 assessment. The collective assessment isbased on ananalysis of past collection history and debt write-offs. The provision for uncollectability hasbeen calculated based on areview of specific overdue receivables anda collective All receivables greater than30 days inageare considered to bepast due. uncollectable. no othercollateralhold TheCouncil security orothercreditas enhancements overreceivables arethat past either due or Movements intheprovision for uncollectability of receivables are asfollows: being experienced by the debtor. Ananalysis of theseindividuallyimpaired debtors isasfollows: Individually impaired receivables have been determined to beimpaired because of thesignificantfinancial difficulties The ageingprofile of receivables at year-end is detailedbelow: Total Past90 days> due Past6190 days due - Past60 days1 - due pastNot due Total Past90 days> due Past6190 days due - Past60 days1 - due pastNot due 2016/17 2016/17 2016/17 $000 $000 $000 (26) (24) 236 186 186 158 28 28 28 - - Collective provision for uncollectability Individual provision for uncollectability Balance at 30 June Receivables written off duringtheperiod Additional provisions made during the year Balance at 1 July Total individualprovision for uncollectability Past90 days> due Past6190 days due - Past60 days1 - due Total provision for uncollectability 2016/17 2017/18 Gross Gross $000 $000 3,940 4,343 3,806 4,211 324 253 201 18 12 - uncollectability uncollectability Provision for for Provision for Provision $000 $000 (253) (253) (186) (185) (1) - - - - - $000 $000 Net Net 2017/18 2017/18 2017/18 $000 $000 $000 3,940 3,806 (209) 3,958 4,157 253 253 324 276 186 187 66 66 66 16 18 11 - - - - 35 Part Two: Financials - Annual Report 2017/18 36 Part Two: Financials - Annual Report 2017/18 They are expected to besold within thenext 12months. During the year, Councilrepurchased 2‘own your own’ properties inMorrinsville that remained unsoldat 30 June 2018. Breakdown of non-current assets heldfor saleandfurtherinformation a disposalgroup).part of Non-current assets are not depreciated or amortised while they are classified asheld for sale(includingthosethat are value (less costs to sell)are recognised upto thelevel of any impairmentlosses that have been previously recognised. less costs to sell. Any impairmentlosses for write-downs are recognised inthesurplus or deficit. Any increases in fair transaction rather thanthrough continuing use. They are measured at thelower of their carrying amountandfair value Non-current assets are classified asheld for saleiftheir carryingamount willbe recovered principallythrough asale Accounting policy sale for held assets Non-current 9. retention of title clauses (2017: Nil). equipment will be usedasspare partsfor theplant. Noinventory ispledgedas securityfor liabilities, or issubjectto Equipment remaining from theMorrinsville wastewater treatment plantupgrade is classified asinventory asthe (2017: Nil). There was no write-down of inventory during the year (2017: $75,084). There have beennoreversals of write-downs Breakdown of inventory andfurtherinformation equipment. capitalised to inventory with the exception of infrastructural asset costs, which are capitalised to property, plantand fair value of thelandat the date of thetransfer isits deemed cost. Costs directly attributable to the developed landare When landheldfor development andfuture resale istransferred from property, plantand equipment to inventory, the surplus or deficit inthe year ofthe write-down. of acquisition. Any write down from cost to netrealisable value or for theloss of service potential isrecognized inthe distributed or usedfirst.Inventories acquired through non-exchange transactions are measured at fair value at the date Cost isallocated usingthefirst-in-first-out (FIFO) method, which assumes the inventories that were purchased first are • Non-commercial: measured at cost, adjusted for any loss of service potential. • Commercial: measured at thelower of cost andnetrealizable value. nominal charge) distribution or use. Inventories are measured asfollows: depends on whether theinventories are heldfor commercial or non-commercial (distribution at no charge or for a Inventories are heldfor distribution or for useintheprovision of goods andservices. The measurement of inventories Inventory Accounting policy Inventory8. 2016/17 2016/17 $000 $000 649 554 95 - - - Total inventory - Non-commercial inventory: Total assets held for sale Own your ownproperties - Own you ownproperty Commercial inventory: -

wastewater treatment plantparts inventory heldfor distribution 2017/18 2017/18 $000 $000 426 550 426 839 106 183 Local authority and other stock (held-to-maturity) stock other using the effective interestand method. After initialrecognition, localauthorityand other stock (designates asheldto maturity) are measured at amortised costs authority Local If assets are impaired, theamountnot expected to be collected isrecognised inthesurplus or deficit. payments are indicators that theasset isimpaired. difficulties ofthe debtor, probability that the debtor will enter bankruptcy, receivership orliquidation and default in the Council will notbeableto collect amounts due according to the original terms of thereceivable. Significantfinancial At year-end, theassets are assessed for indicators of impairment. Impairmentis established when there is evidence that effective interest method. Where applicable, interest accrued isadded to theinvestment balance. After initialrecognition, term deposits and community and other loansare measured at amortised cost usingthe recognised inthesurplus or deficit asa grant expense. organsiations, the difference between the loanamountandpresent value ofthe expected future cashflows oftheloanis cash flows, discounted at the current market rate of return for asimilarfinancialinstrument. Forloans to community Loans madeat nil or below-market interest rates are initially recognised at thepresent value of their expected future Term deposits, and community and other loans(loansandreceivables) surplus or deficit, in which casethetransaction costs are recognised inthesurplus or deficit. Financial assets are initiallyrecognised at fair value plustransaction costs unless they are carried at fair value through Accounting policy assets financial Other 11. instrument prices. independently sourced market parameters suchasinterest rate yield curves. Most market parameters are impliedfrom terms of theswaps and discounting these values to present value. The inputsinto the valuation modelare from The fair values of interest rate swaps have been determined by calculating the expected cash flows underthe Fair value At 30 June 2018, thefixed interest rates oftheinterest rate swaps ranged from 2.53% to 5.05% (2017: 3.07% to 5.05%). $34 million). The notionalprincipalamounts of the outstanding interest rate swap contracts for theCouncil were $40million(2017: Breakdown of non-current assets heldfor saleandfurtherinformation balance date. Otherwise derivatives are classified asnon-current. deficit. The fair value ofthe derivative is classified as current ifthe contract is due forsettlement within12 months of remeasured at theirfair value at each balance date. The associated gains or losses are recognised inthesurplus or Derivatives are initiallyrecognised at fair value on the date a derivative contract is entered into and are subsequently trading purposes. activities. Inaccordance with itstreasury policies, theCouncil does nothold or issue derivative financialinstruments for Derivative financialinstruments are used to manage exposure to interest rate risksarisingfrom theCouncil’s financing Accounting policy instruments financial Derivative 10. 2016/17 $000 1,595 1,676 1,595 81 81 5 5 Total derivative financialinstrument liabilities Total non-current liabilities Interest rate swaps – heldfor trading Non-current liabilities Total currentliabilities Interest rate swaps - heldfor trading Current liabilities Total non-current derivative financialinstrument assets Interest rate swaps - heldfor trading Non-current assets 2017/18 $000 1,937 1,861 1,861 76 76 1 1

37 Part Two: Financials - Annual Report 2017/18 38 Part Two: Financials - Annual Report 2017/18 Breakdown of other financialassets andfurtherinformation not reversed through thesurplus or deficit. and expense istransferred to thesurplus or deficit. Impairment losses onshares recognised inthe surplus or deficit are evidence of impairment. Ifimpairment evidence exists, the cumulative loss recognised in other comprehensive revenue For shares, asignificant orprolonged declineinthe fair value oftheshares below its cost is considered to be objective the surplus or deficit. sold, the cumulative gain or loss previously recognised in other comprehensive revenue and expense istransferred to comprehensive revenue and expense, except for impairmentlosses, which are recognised inthesurplus or deficit. When After initialrecognition, theshares are measured at theirfair value, with gains andlosses recognised in other revenueand expense. Shares inCouncilControlled Organisations and other entities are designated at fair value through other comprehensive expense) Investments inCouncilControlled Organisations and other entities (fair value through other comprehensive revenue and andlossesGains when theasset isimpaired or derecognised are recognised inthesurplus or deficit. evidenceimpairment. of that the debtor will enter bankruptcy, receivership or liquidation and default inpayments is considered to be objective At year-end, they are assessed for indicators of impairment. Significant financial difficulties of the debtor, probability 2016/17 $000 18,300 13,447 19,339 12,797 340 434 262 392 225 216 116 80 80 20 49 35 87 37 Total currentinvestment in otherentities Local authorityand other stock Banks Road development loan Industry loan Community loans Term deposits Investmentin otherentities: Total current investment inCCOsandsimilar entities New Zealand Local Government FundingAgency - borrower notes Total non-current investment in other entities Industry loan Community loans Investmentin otherentities: Total non-current investment inCCOsandsimilar entities Hauraki RailTrail Charitable Trust Waikato Local AuthorityShared Services Limited Thames Valley CivilDefence Emergency ManagementCommittee New Zealand Local Government Insurance Corporation Waikato Regional AirportLimited New Zealand Local Government FundingAgency - borrower notes Investment inCCOsandsimilar entities: Non-current Investment inCCOsandsimilar entities: Current 2017/18 $000 13,250 12,778 13,814 12,150 304 230 347 136 136 116 20 89 35 51 - - - - years. three every least at and value fair from materially differ not does amount carrying their that ensure to regularity sufficient with revalued roads) are under (except land assets infrastructural and restricted), and (operational buildings and Land Revaluations losses. impairment and depreciation accumulated less cost at measured are classes asset other All depreciation. accumulated less value fair at measured roads) are under (except land assets infrastructural and restricted), and (operational buildings and value, fair at measured is restricted) and (operational Land assets stations. pump wastewater and piping reticulation includes reticulation wastewater example, For to function. network the for required are that items all Infrastructure assets restrictions. other or legal of because of disposed be cannot and community to the Restricted assets collections. library Operational of: consist equipment and plant Property, Accounting policy equipment and plant Property, 13. nil). (2017: 2018 June 30 at assets contingent or liabilities contingent commitments, capital no has venture joint The as a jointly controlled operation. The Council’s interests in the jointly controlled operation are as follows: as are operation controlled jointly the in interests Council’s The operation. controlled ajointly as for accounted is venture joint Committee Management Emergency Defence Civil Valley Thames the in interest Council’s The Breakdown of other financialassets andfurtherinformation venture. joint the from earns it that revenue of share the and incurs, it expenses and liabilities the controls, it assets the statements financial its in recognises Council the operations, controlled jointly For activity. over an control of sharing agreed the is control Joint control. to joint subject A joint venture is a binding arrangement whereby two or more parties are committed to undertake an activity that is is that activity an to undertake committed are parties more or two whereby arrangement abinding is venture A joint Accounting policy venture joint in Investment 12. impaired. or due past either are assets financial these of none date, balance At assets. financial other for provisions or expenses impairment no were There Committee Impairment investments. these of shares to dispose plans no are there and purposes, strategic for held are investments Management These assets. these for market active no is there because cost at measured is shares unlisted of unlisted value fair The Other Emergency recognition. Defence initial the after Committee notes the of deficit or surplus the of share Council’s to recognise Civil decreased or increased is amount carrying the and cost, at (TVCDEMC) Committee Management Emergency Defence Valley Civil Valley borrower Thames of value the recognised - initially Council Limited Thames Agency Airport company. the of backing asset net the using value fair at WRAL in investment its measure to reliably able Funding are Council value, fair at carried is (WRAL’s) sheet Regional Limited’s balance Airport loans Regional Waikato of portion increasing an As Waikato Government Development 2025. April and 2017 December Local between mature will These $472,000). (2017: interest of rates floating at Road Agency Funding Government Local the with invested notes borrowing in $440,000 has Council At year-end Zealand Banks New and 2.21%). (2017: Industry 2.3% of rate swap two year the on based rate at a discounted flows cash using determined value, fair at recognised are loans These Community, value. fair their approximates deposits term of amount carrying The deposits Term Fair value 2016/17 $000

(166) (14) 174 86 15 - Current assets Expenses Revenue Non-current liabilities Current liabilities Non-current assets – - Restricted assets are mainly parks and reserves owned by the Council that provide a benefit or service service or abenefit provide that Council by the owned reserves and parks mainly are assets Restricted – These include land, buildings, plant and machinery, furniture and equipment, computer equipment, and and equipment, computer equipment, and furniture machinery, and plant buildings, land, include These Infrastructure assets are the fixed utility systems owned by the Council. Each asset class includes includes class asset Each Council. the by owned systems utility fixed the are assets Infrastructure

2017/18 $000 (134) (13) 136 50 53 - 39 Part Two: Financials - Annual Report 2017/18 40 Part Two: Financials - Annual Report 2017/18 major classes of assets have been estimated as follows: as estimated have been assets of classes major of rates depreciation associated and lives useful The basis. value adiminishing on depreciated is collection library The lives. useful their over values residual estimated their to assets the of cost valuation) the (or off write will that rates at collection), library the and land (other than equipment and plant property, all on basis astraight-line on provided is Depreciation Depreciation funds to accumulated transferred are assets those of respect in reserves revaluation asset in included amounts the sold, are assets revalued When deficit. or surplus the in net reported are disposals on losses and Gains asset. the of amount carrying the with proceeds disposal the by comparing determined are disposals on losses and Gains Disposals incurred. are they as deficit or surplus the in recognised are equipment and plant property, of servicing day-to-day of costs The reliably. measured be can item the of cost the and Council to flow will item the with associated potential service or benefits economic future that probable is it when only capitalised are acquisition to initial subsequent incurred Costs acquisition. of date the at as value fair at recognised is it transaction, anon-exchange through acquired is asset an Where cost. its at recognised initially is equipment and plant property, of item an instances, most In depreciated. not is and impairment less cost at recognised is progress Work in reliably. measured be can the item of cost the and Council the flow to will item the with associated potential service or benefits economic future that probable is it when only asset an as recognised is equipment and plant property, of item an of cost The Additions comprehensive revenue and expense.other in recognised then and expensed, previously amount the up to deficit or surplus the in first recognised be will deficit or surplus the in recognised value in decrease previous a reverses that revaluation on increase subsequent Any deficit. or surplus the in recognised is but expense and revenue comprehensive other in recognised not is balance this reserve, revaluation asset the in balance adebit in result would this Where class-of-asset. that for equity in reserve revaluation asset to an accumulated are and expense and revenue comprehensive to other debited or credited are results revaluation net The basis. aclass-of-asset on for accounted are movements Revaluation Wastewater pump station equipment Infrastructural assets Operational assets Water pumpstation equipment Restricted assets (buildings) Furnitureand equipment Wastewater service lines Formation carriageway Computer equipment Plant andmachinery Pavement surfacing Pavement structure Wastewater mains Serverhard drives Wastewater other Library collection Roading network Water hydrants Street lighting Water valves Water nodes Utility assets Water mains Footpaths Buildings Buildings Drainage All other Bridges Useful life Useful life 80 to 100 years 50 to 100 years 50 to 100 years 60 to 90 years 50 to 80 years 40 to 88 years 35 to 80 years 75 to 90 years 39 to 47 years 3 to 100 years 2 to 100 years 2 to 100 years 1 to 120 years 5 to 50 years 7 to 50 years 2 to 20 years 2 to 10 years 1 to 57 years 2 to 9 years 3 to 5 years 100 years 80 years 80 years 25 years 1 year Deprecation rate Deprecation rate 20% - 33% 20% - 10% - 50% 10% - 1% - 100% 1% - 11% - 50% 11% - 5% - 50% 5% - 2% - 50% 2% - 2% - 20% 2% - 1% - 50% 1% - 50% 1% - 2% - 14% 2% - 1% - 33% 1% - 3% - 4% 3% - 1% - 3% 1% - 3% 1% - 1% - 2% 1% - 2% 1% - 1% - 2% 1% - 2% 1% - 2% 1% - 2% 1% - 100% 4% 1% 1% 1% If an asset’s carrying amount exceeds its recoverable amount, the asset is regarded as impaired and the carrying carrying the and impaired as regarded is asset the amount, recoverable its exceeds amount carrying asset’s an If use. in value its and to sell costs less value fair asset’s ofan higher the is amount recoverable The amount. recoverable its exceeds amount carrying asset’s the by which amount the for recognised is loss impairment An recoverable. be may not amount carrying the that indicate circumstances in changes or events whenever and date balance each at impairment for are reviewed life useful have afinite that equipment and plant Property, Impairment of property, plantand equipment date. balance each at applicable, if adjusted and reviewed, is asset ofan life useful and value residual The rates using the appropriate Statistics New Zealand Capital Goods Price Index. Price Goods Capital Zealand New Statistics appropriate the using rates unit Councils escalated Valuers assets, specialised particularly For records. Valuers the and Councils comparable other with compared and assets equivalent ofmodern contracts construction recent from derived is cost replacement • The valuations. recent most the for adjustments optimization no been has There capacity. surplus or to due over-design optimization for appropriate where adjusted are assets specific ofthe costs replacement • The include: valuation 2017 1July the in used assumptions Significant assumptions. of significant a number using determined is cost replacement infrastructural) Depreciated and buildings. such for available is data market reliable no because cost replacement depreciated using value fair at valued are buildings restricted Specialised and 2017. 1July at as effective was valuation The Limited. Consultants by SPM (operational performed was ofbuildings valuation recent most The Buildings ownership. outright of benefits full the receive substantially will and future foreseeable the for land ofthe use operational has Council the because land ofthe value the impair not normally would land to sell ability Council’s the on Restrictions judgement. valuer’s the on based are which zoning, different to reflect adjustment alocation plus value land rural on based is valued land Such use. in restriction the reflects approach valuation the status, endowment or reserve infrastructural) of because restricted is land ofthe use the or land the against adesignation is this Where values. land and comparable to reference with use best and highest its on based evidence based market using value fair at valued is Land restricted 2017. July at 1 as effective is valuation The Limited. Tizard Curnow valuers, registered by independent performed was of land valuation recent most The (operational, Land assets Critical accounting estimates andassumptions cash-flows. future ofexpected value present the is assets cash-generating cash-generating for use in value The for return. acommercial ofgenerating objective primary the with held are that assets those are assets use Cash-generating in Value ofinformation. assets availability and impairment ofthe nature the on depends use in value to measure used approach appropriate most The approach. units aservice or approach cost arestoration approach, cost replacement adepreciated either on based approach an using determined is use in value assets, non-cash-generating For non-cash-generating return. for acommercial ofgenerating objective primary the with held not are that assets those are assets use Non-cash-generating in Value deficit. or surplus the in recognised is loss impairment of an reversal the amount, arevalued at carried not assets For deficit. or surplus the in recognised also is loss impairment ofthe a reversal deficit, or surplus the in recognised previously was ofasset class that for loss impairment However, an that extent to ofasset. the class that for reserve revaluation asset the increases and expense and revenue comprehensive to other credited is asset arevalued on loss impairment ofan reversal The deficit. or surplus the in recognised is loss impairment total the amount, arevalued at carried not assets For deficit. or surplus the in recognised is balance the reserve, revaluation the in balance adebit in results that Where ofasset. class that for reserve revaluation the against recognised is loss impairment the assets, revalued For amount. recoverable to the written-down is amount Operational assets

Stormwater service lines Stormwater manholes Stormwater pumps Water service lines Stormwater mains Swale drains Useful life 60 to 100 years 51 to 100 years 40 to 88 years 100 years Indefinite 15 years Deprecation rate 1% - 3% 1% - 1% - 2% 1% - 2% 1% - 0% 7% 1% 41 Part Two: Financials - Annual Report 2017/18 42 Part Two: Financials - Annual Report 2017/18 using market-based evidence isasfollows: A comparisonthe carryingvaluebuildings valued of the using depreciated of replacement costbuildings valuedand evidence. market-based using value fair at valued are buildings) office and residential example, (for buildings Non-specialised asset. ofthe value cost replacement depreciated the determining in applied been has depreciation • Straight-line buildings. similar with experience and plans, replacement and maintenance future assets, ofthe condition the as such factors considering after estimated is ofassets life useful remaining • The Movements in the carrying value for each class of property, plant and equipment are as follows: as are equipment and plant ofproperty, class each for value carrying the in Movements Breakdown of property, plantand equipment andfurtherinformation property. investment as than rather equipment and plant property, as for accounted therefore are properties The policy. housing social Council’s ofthe part as objectives delivery service for held are properties The them. to holding incidental is properties these from rental ofmarket-based receipt The persons. to elderly housing to provide held ofproperties anumber owns Council The Classification ofproperty Critical judgementsinapplyingaccounting policies estimates. life useful over the assurance further provides which activities, planning management asset of part as regularly out carried also are condition-modelling and deterioration inspections, Asset experience. past on based conditions local for adjusted have been and Group, Steering Management Asset National by the published Guidelines Depreciation and Valuation Asset Infrastructural Zealand New to the reference with determined been have lives useful asset infrastructural risk, this To minimise expense. and revenue comprehensive of statement the in expense an as recognised charge depreciation annual the under-estimating or be over could Council the then asset, the of benefits the of consumption actual the reflect not do lives useful If growth. traffic and patterns weather example, For conditions. local the by affected be can estimates These depreciated. be will asset the over which life useful remaining the of • Estimates date. valuation the at value dollar to current them to convert construction bridge and road for NZTA the or Index constructions civil for index) quarter 2017 June the on (based Index Price Goods capital Zealand’s New Statistics using indexed is it date, of out considered is information cost contract recent If location. and depth, material, size, on based network the of to components applied have been rates Unit determined. are rates unit which from assets, equivalent modern for region the in contracts construction recent on based is asset an of cost replacement The asset. the of cost replacement the • Estimating asset. the of capacity surplus or obsolescence any • Estimating networks depreciated replacement cost method. the These include: using assets infrastructural valuing when exercised assumptions and estimates of anumber are There method. stormwater cost replacement depreciated the using valued are assets infrastructural stormwater and and water, wastewater Roading, wastewater 2017. July at 1 as effective is valuation The by PJ reviewed Associates. and peer then was valuation The reliability. water, reasonable with assets these of value fair the establish that indices price available readily and market active an is there as staff experienced by house in roading, performed was assets infrastructural stormwater and water, for wastewater valuation recent most The classes: 2017. July at 1 as effective asset is valuation the and Limited International by Opus performed was assets infrastructural roading of valuation recent most The Infrastructural provided going forward. be will information Comparative disclosed. and captured been has information this that year first the is this Note Operational buildings Depreciatedreplacement cost Operational Total carryingvaluerestricted of buildings Market-based evidence Depreciatedreplacement costbuildings Restricted Total carryingvalue ofoperationalbuildings Market-based evidence 2017/18 $000 34,509 26,925 13,182 13,182 7,584 - for liabilities. for security as pledged are equipment and plant property, of year.items No the during sale for held as classified equipment and plant property, include and depreciation ofaccumulated net reported are tables these in disposals that Note and equipment plant Total property, assets Total infrastructural construction under Assets Buildings Land reticulation systems) (including assets -other Wastewater facilities and plants -treatment Wastewater system Stormwater reticulation systems) (including assets -other supply Water facilities and plants treatment - supply Water Land under roads Roads Infrastructural assets Total restricted assets construction Assets under Buildings Land Restricted assets Total operationalassets construction Assets under Library collections Computer equipment equipment Furniture and Plant andmachinery Buildings Land Operational assets 2017/18 $000 610,937 610,937 285,991 517,925 517,925 30,447 30,447 66,732 66,732 39,941 39,941 48,301 27,948 13,265 13,265 41,787 41,787 14,907 44,711 32,115 32,115 2,943 2,943

6,670 Cost/ 2,759 2,759 4,873 1,945 1,945 3,724 17,163 1,856 13,121 2,651 valuation

99 1 July 2017 $000 (30,061) (10,973) (16,030)

(5,989) Accumulated (4,095) (3,058) (3,058) (4,752) (1,875) (2,252) (3,199) (1,732) depreciation (580) (703) (207) (957) (662) and impairment charges 1 July 2017 ------280,002 280,002 506,952 506,952 580,876 580,876 $000 40,830 40,830 66,732 66,732 24,890 28,572 28,572 12,603 12,603 39,361 39,361 41,653 10,869 14,907 32,271 32,271 31,412 31,412 2,943 2,943 2,759 2,759 17,163 1,738 1,738 1,856 Carrying value 1,918 525 778

919 1 July 2017 99 $000 19,002 19,002 10,575 10,575 6,360 6,360 7,026 7,026 7,547 7,547 1,803 1,803 1,401 1,401 Current year 250 250 354 354 569 569 266 266 307 307 207 207 637 637 474 474 150 150 additions 29 29 23 23 13 13 13 - - - - $000 4,165 4,165 4,165

1,855 1,855 Current year 543 543 437 437 979 979 vested and 351 351 found assets ------$000 (702) (358) (258) (715) Current year (75) (13) (13) (6) (5) disposals ------$000 (1,407) (1,578) Work in (106) 1,307 1,307 progress 930 930 320 320 108 108 271 271 transferred into 96 96 45 45 10 10

4 assets ------$000 Current year impairment ------charges (10,827) (13,768) $000 (5,986) (1,884) (1,782) (1,159) (1,159) (594) (634) (926) (353) (355) (787) (721) (116)

(171) Current year (82) depreciation ------$000 (2,227) 19,945 19,945 5,846 5,846 4,828 4,828 4,683 4,683 2,754 2,754 2,735 2,735 Revaluation 9,271 9,271 6,517 6,517 3,111 626 626 207 207 679 679 229 229

627 627 surplus/ (deficit) 4 ------653,334 653,334 299,863 299,863 $000 536,791 536,791 58,960 58,960 23,680 23,680 40,725 38,726 38,726 57,583 57,583 18,550 18,550 67,275 67,275 13,862 41,622 41,622 31,377 31,377 33,187 33,187 5,080 5,080 16,221 16,221 2,968 2,968 3,569 3,569 3,874 3,874 2,156 2,156 3,155 3,155 Cost/valuation 7,131 7,131 307 307 30 June 2018 6 (43,829) (21,800) $000 (17,812) (11,975) (4,448) (3,039) (3,370) (3,759) (1,848) (1,296) (1,883) (4,217) (1,424) (5,107) Accumulated (4,217) (1,174)

(289) depreciation and impairment charges ------30 June 2018 $000 609,505 287,888 514,991 514,991 40,448 40,448 34,509 34,509 23,680 23,680 53,366 38,842 38,842 18,550 18,550 67,275 67,275 12,566 12,566 31,763 31,763 41,148 41,148 27,618 27,618 Carrying value 13,182 13,182 3,569 3,569 2,024 2,024 1,867 1,867 3,155 3,155

1,120 1,120 30 June 2018 504 504 307 632 632 6 43 Part Two: Financials - Annual Report 2017/18 44 Part Two: Financials - Annual Report 2017/18 between the various assets types. assets various the between assets of classification in the identified errors some to correct Report Annual 2017 June 30 the from restated been has assets restricted and operational some for year 2016/17 the for transactions and balance opening 2016 1July The and equipment plant Total property, assets Total infrastructural construction under Assets Buildings Land reticulation systems) (including assets -other Wastewater facilities and plants treatment - Wastewater system Stormwater reticulation systems) (including assets -other supply Water facilities treatment - supply Water Land under roads Roading Infrastructural assets assets Total Restricted construction Assets under Buildings Land Restricted assets assets Total operational construction Assets under Library collections Computer equipment equipment Furniture and Plant andmachinery Buildings 2016/17 Land Operational assets plants and and 625,035 535,075 293,037 $000 42,532 47,428 29,488 23,239 45,383 66,672 39,955 14,842 10,647 17,425 31,976 13,169 6,367 3,555 4,451 4,371 2,516 1,945 Cost/ 2,713 2,751 valuation 25 1 July 2016 (26,848)- $000 (10,644) (14,288) Accumulated (3,030) (4,394) (3,764) (1,628) (1,472) (1,916) depreciation (1,916)

(136) and

impairment charges ------1 July 2016 598,187 293,037 $000 33,140 33,140 40,616 29,488 45,383 66,672 39,955 14,842 10,647 10,647 21,323 17,425 31,976 11,697 4,451 1,809 1,973 2,713 Carrying 2,751 607 888 525 value 25 25 1 July 2016 $000 16,559 12,474 2,641 2,641 1,444 1,303 1,303 2,296 1,273 1,273 1,950 7,199 456 456 502 502 290 169 169 Current year 667 115 115 117 117 65 65 85 85 60 additions - 5 7 - - $000 Current year vested and

7 found assets ------5 7 2 ------$000 (336) (336) (343) (153) 1,174 (93) (97)

495 Current year 387

76 disposals 31 ------1 (3,898) $000 (1,904)

3,898 3,898 Work in 1,082

(41) progress 262 185 261 23 23 114 18 18 transferred ------into assets $000 Current year impairment charges ------(10,837) (13,721) $000 (5,989) (1,142) (1,742) (1,142) (1,875) (780) (358) (104) (169) (580) (703) (331) (957) (662) Current year (71) depreciation ------(18,982) (18,628) $000 (14,120) (4,453) (228) (126) (165) (126) (760) Revaluation (63) 586 (14) surplus/ 133 (deficit) ------610,937 285,991 $000 517,925 27,948 27,948 14,907 14,907 30,447 48,301 44,711 44,711 66,732 39,941 13,265 6,670 6,670 41,797 4,873 4,873 17,163 17,163 3,724 3,724 13,121 13,121 1,856 1,856 32,115 2,943 2,651 2,759 1,945 Cost/

99 99 valuation 30 June 2017 (30,061) (16,030) (10,973) (3,058) $000 (4,095) (3,058) (2,252)

(4,752) Accumulated (3,199) (5,989) (1,732) (1,875) depreciation (580) (703) (207) (957) (662) and impairment - - - - charges - - - 30 June 2017 580,876 280,002 506,952 $000 24,890 24,890 40,830 10,869 10,869 14,907 14,907 41,653 41,653 66,732 28,572 32,271 32,271 12,603 39,361 17,163 17,163 31,412 1,856 1,856 2,943

2,759 Carrying 1,918 1,738 525 525 778 778

919 value 99 99 30 June 2017 Included within theCouncilinfrastructure assets above are thefollowing core Councilassets: Core infrastructure asset disclosures which the asset can beused. other restrictions (such as land or buildings acquired underabequest or donation that restricts thepurpose for This includes restrictions from legislation (such asland declared asareserve undertheReserves Act 1977), or Land andbuildings inthe“Restricted Asset” category are subjectto restrictions on either use or disposal, or both. Restrictions Property, plantand equipment inthe course of construction by class of asset is detailed below: Assetsunder construction There was noimpairment of property, plantand equipment thisfinancial year (2017: nil). Impairment comprehensive revenue and expense under‘other expenses’ (2017: $745,000). The netloss on disposal of property, plantand equipment ($703,000) hasbeenrecognised inthestatement of Disposals fair value where cost does not equate to fair value. Landunderroads isnolongerrevalued. the fair value of landunderroads asat 1 July 2001 as deemed cost. Subsequentadditionsare recorded at cost or at 1 July 2001. This is considered to bethefair value of theland. On transition to NZ IFRSCouncil elected to use Land underroads was valued usingtheaverage land values for theurbanandrural areas of the whole district as Land underroads Roading reticulation systems) Wastewaterassets(including –other Wastewater – treatment plantsandfacilities system Stormwater reticulation systems) Water supply – other assets (including Water supply – treatment plantsandfacilities Roading reticulation systems) Wastewaterassets(including –other Wastewater – treatment plantsandfacilities system Stormwater reticulation systems) Water supply – other assets (including Water supply – treatment plantsandfacilities Balance as at 30 June June 30 at as Balance $000 2017 4,714 1,307 1,856 2016/17 2017/18 236 974 103 139 99 Total assets under construction Infrastructural buildings Wastewater Water supply Roading Restricted assets Operational assets Stormwater system Stormwater Closing book value Closing book value $000 $000 346,734 355,163 40,448 40,830 38,842 28,572 12,603 12,566 39,361 31,763 27,618 31,412 constructed by constructed by constructed Additions: Additions: Council Council $000 $000 3,378 7,592 1,284 7,521 404 889 928 374 23 13 5 - transferred to to transferred to transferred Additions Additions Council Council $000 $000 2,398 437 979 351 5 2 ------Most recent replacement cost Most recent replacement cost estimate for revalued assets. revalued for estimate assets. revalued for estimate Balance as at 30 June June 30 at as Balance $000 $000 $000 2018 455,604 446,322 20,043 60,234 39,802 59,092 40,578 74,056 77,626 56,139 55,188 3,458 20,151 1,919 300 723 100 274 139 3 45 Part Two: Financials - Annual Report 2017/18 46 Part Two: Financials - Annual Report 2017/18 The amount of contractual commitments for acquisition of property, plantand equipment is: Capital commitments There were noassets considered to beimpaired in2018 (2017: nil). Impairment There are no capital commitments for intangible assets (2017: nil) Capital commitments There are norestrictions over thetitle of intangibleassets. Nointangibleassets are pledgedassecurityfor liabilities. Restrictions Note that disposals inthesetablesare reported net of accumulated depreciation. Movements inthe carrying value for computer software isasfollows: Breakdown of intangibleassets andfurtherinformation impairment of intangible assets. Refer to thepolicy for impairment of property, plantand equipment inNote 13. The sameapproach appliesto the Impairment useful life of 1to 15 years andisamortisedat arate of 6.67% to 100%. amortisation charge for each periodisrecognised inthesurplus or deficit. Computer software is estimated to have a Amortisation begins when theasset isavailable for useand ceases at the date that theasset is derecognised. The The carrying value of anintangibleasset with afinite life isamortised ona straight-line basis over itsusefullife. Amortisation incurred. software. Costs associated with staff training andmaintaining computer software are recognised asan expense when software Computer software licenses are capitalised on thebasis of the costs incurred to acquire andbringto usethespecific Computer Accounting policy assets Intangible 14. 2016/17 2017/18 Computer software 2016/17 $000 5,456 6,533 780 297 Restricted buildings Total capitalcommitments Water Roading $000 1,907 2,197 Opening cost

$000 Opening ac-

(1,195) cumulated (958) amortisation and impair- ment charges $000

1,002 Opening carry-

949 ing amount $000

Current year 290

99 additions $000 Current year disposals

- - $000 Current year impairment charges - - $000

(237) Current year (251) amortisation $000 2,296 2,197 Closing cost

$000 Closing ac- (1,446)

(1,195) cumulated amortisation and impair- ment charges 2017/18 $000 $000 1,330 1,002 Closing carry- 804 850 ing amount 526 - afterbalance date. as current liabilities unless the Council has an unconditional right to defer settlement of the liability for at least 12 months due on theborrowings issubsequentlyaccrued andrecognised inaccrued expenses (Note 16). Borrowings are classified Borrowings on normal commercial terms are initiallyrecognised at theamountborrowed plustransaction costs. Interest Accounting policy Borrowings 17. payables approximates theirfair value Payables are generally non-interest bearingandare normallysettled on 30-day terms. Therefore the carrying value of Breakdown of payables andfurtherinformation Short-term creditors and other payables are recorded at theirface value. Accounting policy revenue deferred and Payables 16. 15. Depreciation and amortisation expense by group of activity of by group expense amortisation and Depreciation 15. 2016/17 2016/17 $000 $000 13,958 13,037 4,936 5,989 2,597 1,649 6,731 1,283 1,795 2,185 4,151 508 580 482 307 921 26 9 2 Revenue inadvance Contract retentions Deposits andbonds Accrued expenses Trade payables Total depreciationamortisation expenseand Depreciation andamortisation not directly related to groups of activities Total directlyattributable depreciationamortisation expenseand by groupactivity of Environmental Care Community Development Water Wastewater Stormwater Rubbish andRecycling Roading Community Facilities activity of by group expense amortisation and depreciation attributable Directly services Payables from exchange transactions - thisincludesamounts owing for commercial purchases of goods and received inadvance, andtaxes and grants payable Payables from non-exchange transactions - thisincludesbondsand deposits for planning, rates andlicenses Total payables and deferred revenue comprise: Total payables and deferred revenue . 2017/18 2017/18 $000 $000 13,074 14,018 6,475 5,986 4,395 2,079 3,427 2,625 2,233 1,348 1,595 406 944 594 740 554 31 8 2 47 Part Two: Financials - Annual Report 2017/18 48 Part Two: Financials - Annual Report 2017/18 available to be drawn at 30 June (2017: $6million). to fundshortterm revolving requirements. The facility hasalimit of $6million(2017: $6million)andthere is$6million Council hasamulti-option credit linefacility with Westpac Corporate Business. This provides Council with theability Credit facilities quarterly based on the90-day bankbillrate plusamargin for credit risk. The Council’s secured loansare mostly issued at floating rates ofinterest. For floating rate debt, theinterest rate is reset Interest terms for secured loans Breakdown of borrowings andfurtherinformation Presentation of employee entitlements employee date are classified asa current liabilities. All other employee entitlementsare classified asanon-current liabilities. of Sick leave, annualleave, longservice leave andretirement gratuities expected to besettled within 12months of balance Presentation • The present value of the estimated future cash flows. reach thepoint of entitlement, and contractual entitlement information; and • Likely future entitlements accruing to staff, based on years ofservice, years to entitlement, thelikelihood that staff will calculations are based on: entitlements provides therelated service, suchasretirement andlongservice leave, have been calculated on anactuarialbasis. The employee Employee benefitsthat are due to besettledbeyond 12monthsafter the end ofthe year in whichthe employee Long-term wages accruedentitlements upto balance date, annualleave earned to, butnot yet taken at balance date, andsickleave. the related service are measured based on accrued entitlements at current rates of pay. These includesalariesand employee Employee benefitsthat are due to besettled within12monthsafter the end ofthe year in whichthe employee provides Short-term Accounting policy Employee18. entitlements approximates theirfair value. Due to interest rates on debt resetting to themarket rate every three months, the carrying amounts of secured loans Fair values Internal borrowings are eliminated on consolidation of activitiesintheCouncil’s financial statements. Information aboutinternal borrowings isprovided inthe‘OtherLegislative disclosures’ section of thisAnnualReport. Internal borrowings general rates of theCouncil. (2017:$500,000). There are no restrictions on theuse of thisfacility. Council’s loansare secured over either separate or Council hasanunsecured overdraft. The maximumamountthat can be drawn down against thefacility is$500,000 Security 2016/17 2016/17 $000 $000 29,807 24,616 1,524 1,087 5,191 450 139 158 135 311 48 96 Totalnon-current employee entitlements Retirement gratuities Total borrowings Non-current loans Current loans Long service leave Non-current employee entitlements Total current employee entitlements Retirement gratuities Long service leave Sick leave Annual leave Accrued pay Current employee entitlements 2017/18 2017/18 $000 $000 19,000 27,616 8,616 1,661 204 1,101 380 242 130 138 173 53 $10,000 (2017: $20,000). Provision for other minor claims against Councilhasbeen madebased on estimated costs and/or insurance excesses of Council’s insurance providers have confirmed cover for thismatter and aprovision of$50,000 excess hasbeenmade. At present, there isstill insufficientinformation to conclude onpotential liabilityand claim quantum, if any. However, Shadowclad isinherently defective. The HighCourtaccepted theMoEproposal. CHHhasappealedthis decision. to commence inrelation to 20 buildings. MoE opposed theapplication, seekingatrial on the determination of whether the 10 year longstop contained within theBuildingAct2004. Further, CHHappliedfor trialstaging, with proceedings out of the claim, butstruck out proceedings inrelation to 28schoolbuildings(2inMatamata-Piako District) built outside During the current year theCouncilssought to strike out CHH’s claims against them. The HighCourt declined thestrike Certificates. breach of duty intheprocessing of building consents, undertakingbuilding inspectionsandissuing CodeCompliance In 2016, CHH commenced proceedings against 48Councils, includingMatamata-Piako District Council, alleginga original claim against CHH was for 833 school buildings, 29 of which are located within theMatamata-Piako District. alleging inherent defects intheShadowclad plywood cladding sheetsmanufactured and distributed by CHH. The MOE’s In 2013, theMinistry of Education (MOE)initiated HighCourtproceedings against Carter HoltHarvey (CHH)and others There are no claims lodged with the Weathertight HomesResolution Service (WHRS)asat 30 June 2018 (2017: Nil). Weathertightnessand otherclaims • a discount rate of 3.21%(2017: 3.17%). • obligations for thepost closure work are for 30 years after landfill closure The following significantassumptions have beenmadein calculating theprovision: has been estimated takinginto account existing technology andknown changes to legalrequirements. nature of theliabilitymeansthat there are inherent uncertainties in estimating costs that will beincurred. The provision The cash outflows for landfillpost closure costs are expected to occur over the next 17 years (to 2036). Thelong-term landfills sites. Council hasresponsibility underthe resource consents to provide ongoing maintenance andmonitoring of these closed • Te Aroha Landfill, closed9December 1998 • Matamata Landfill, closed8December 2001 • Morrinsville Landfill, closed31May 2000 Council hasresource consents for thefollowing landfills, each of whichare now closed: Landfill aftercare provision Breakdown of provisions andfurtherinformation costs’ (see Note 4). The increase intheprovision due to thepassage of timeisrecognised asaninterest expense andisincludedin‘finance discount rate that reflects current market assessments ofthetime value ofmoney andtherisksspecific tothe obligation. Provisions are measured at thepresent value of the expenditures expected to berequired to settlethe obligation usinga • areliable estimate can bemade of theamount of the obligation. • itisprobable that an outflow offuture economic benefits willbe required tosettlethe obligation; and • there isapresent obligation (either legal or constructive) asaresult of apast event; A provision isrecognised for future expenditure of uncertain amount or timing when: Accounting policy Provisions19. 2016/17 $000 448 659 216 141 191 70 25 Tui Minesite monitoring Total non-current provisions Weathertightnessand other claims Landfill aftercare Non-current provisions Total currentprovisions Tui Minesite monitoring Landfill aftercare Current provisions 2017/18 $000 602 422 120 216 191 60 25 49 Part Two: Financials - Annual Report 2017/18 50 Part Two: Financials - Annual Report 2017/18 Movements for each class of provision are asfollows: estimated takinginto account existing technology and discounted usinga discount rate of 3.21%. (2017: 3.17%). liability meansthat there are inherent uncertainties in estimating costs that will beincurred. The provision hasbeen at five yearly intervals for thenext 30 years (at an estimated cost of$25,000 eachtime). The long-term nature ofthe Resource consent monitoring conditions require detailed biologicaland chemical testing of theformer Tui Minesite Tui Minesite monitoring obligations iffurtherfunds were required. • local government legislation would enable local authoritiesto levy arate to recover sufficientfunds tomeet any debt • itisnotaware of any local authority debt default events in New Zealand; and The Council considers therisk of LGFA defaulting on repayment of interest or capital to be very low on the basisthat: been unableto determine asufficiently reliable fair value forthe guarantee, andtherefore hasnot recognised aliability. Financial reporting standards require Councilto recognise the guarantee liabilityat fair value. However, theCouncil has 2018, theLGFA hadborrowings totaling $8.272 billion plusaccrued interest (2017: $7.946 billionplusaccrued interest). Together with theshareholders and other guarantors, Councilisa guarantor of all of LGFA’s borrowings. At30 June The LGFA has30local authorityshareholders andthisCouncil is one of 9localauthority guarantors of theLGFA. has a current credit rating from Fitch Ratings andStandard and Poor’s of AA+andaforeign currency rating of AA. incorporated inDecember 2011 with thepurpose of providing debt fundingto localauthoritiesinNew Zealand. LGFA The Councilisa guarantor of theNew Zealand Local Government FundingAgency Limited (LGFA). The LGFA was Local Government FundingAgency be payable to thelocal Wetlands Trust. 2016, ifCouncilfails to meetannualnitrate discharge conditions asperthe consent, thenanannualsum of $15,000 will Under theresource consent issued by Waikato Regional Councilfor theTe Aroha Wastewater Treatment Plant during TeAroha wastewaterresource consent Breakdown of contingent liabilities andfurtherinformation 20. Contingencies Additional provisions made Balance at 1 July 2017 2017/18 Balance at 30 June 2017 Discount unwind Unused amountsreversed Amounts used Additional provisions made Balance at 1 July 2016 2016/17 Balance at 30 June 2018 Discount unwind Unused amountsreversed Amounts used 2016/17 $000 21 15 5 1 Te Aroha Wastewater resource consent Total contingentliabilities - Waikato Regional AerialPhotography Service - Uncalled share capital: Waikato Local AuthorityShared Services Limited Landfill aftercare aftercare Landfill $000 costs (24) 498 (10) 639 639 (18) (15) 150 613 16 16 - Weather tight ness/other claims $000 (50) (10) (10) 60 70 70 55 75 - - - - - Tui Mine Site Tui Mine $000 (22) 166 166 145 157 (4) 4 5 5 - - - Hauraki Rail Rail Hauraki $000 Trail (17) (9) 26 ------Total 2017/18 (40) $000 (38) (82) (25) 205 756 875 875 818 21 21 - 21 15 5 1 Accumulated funds Accumulated Breakdowninformationfurther and of equity Other reserves Other change inthefair value of assets classified as fair value through other comprehensive revenue and expense. - Fair value through other comprehensive revenue and expense reserve – thisreserve comprises the cumulative net until suchtimeasthe gain isrealised andatransfer can bemadeto retained earnings. - specified purposes or when certain conditions are met. be revised without reference to theCourts or third party. Transfers from thesereserves may bemade only for certain - third party or theCourts. Transfers to andfrom thesereserves are at Council’s discretion. - parts of equity have beenassigned. Reserves may belegallyrestricted or created by Council. Other reserves include: • Other reserves - other reserves are a component of equity generally representing aparticularuseto which various • Accumulated funds liabilities. Equity is disaggregated and classified into the following components: Equity isthe community’s interest intheCouncilandismeasured asthe difference between total assets and total Accounting policy 21. Equity Asset revaluation reserves reserves revaluation Asset reserves Restricted Council created reserves created Council 2016/17 2016/17 $000 $000 425,934 (18,534) (17,099) (13,392) 425,742 120,888 42,625 38,918 17,099 13,392 3,844 (447) (110) 705 595 165 110 - - Accumulated funds Transfer to accumulated funds on disposal of assets revaluationNet gains Balance at 1 July Asset revaluation reserves Balance at 30 June Transfers to accumulated funds Transfers from accumulated funds Balance at 1 July Restricted reserves Balance at 30 June Transfers from accumulated funds Transfers to accumulated funds Balance at 1 July Council created reserves Balance at 30 June Surplus/(deficit) for the year Transfer from revaluation reserves Transfer from restricted reserves Transfer from Council created reserves Transfer to restricted reserves Transfers to Council created reserves Balance at 1 July - thosereserves subjectto specific conditions accepted asbinding by Counciland whichmay not - reserves established by Council decision. Councilmay alter them without reference to any - represent unrealised gains on assets owned by Council. The gains are heldinthereserve 2017/18 2017/18 $000 $000 (15,044) 425,934 429,837 (17,410) 101,907 42,625 44,991 15,044 20,135 17,410 (669) 5,958 (359) (190) 394 669 705 359 - 51 Part Two: Financials - Annual Report 2017/18 52 Part Two: Financials - Annual Report 2017/18 Restricted reserves Restricted reserves created Council Information aboutreserve fundsheld for aspecificpurposeisprovided as follows $000 23,895 $000 38,919 Balance 1 9,335 Balance 1 4,792 569 July 2016/17 July 335 $000 512 50 - 2016 2016 101,907 155,411 10,174 10,174 $000 17,099 $000 13,856

Transfers 1,476 110 200 Transfers 701 817 - in - 50

- in Net revaluationNet gains Impairment charges Totalreserves other Balance at 30 June Balance at 1 July Fair valuethrough othercomprehensiverevenue and expense reserve Balance at 30 June $000 (13,392) $000 Transfers (11,415) (534) (810) (120) out (514) Transfers out - - - $000

Balance 42,625 23,902 569 $000 110 11,775 30 5,754

679 Balance 100

June 2017 415 30 reserve land sales Endowment June 2017 development Reserve fund project desludging Wastewater Te Aroha reserve improvement Stormwater reserves Depreciation reserve contribution capital Wastewater reserve fund Zealand Power New reserve purposes Community Reserve fund Reserves reserves. contributions to beused for parks and Funds setaside from reserves inhabitants of Te Aroha. amenities for thebenefit ofthe improvement of services andpublic The proceeds must beusedfor of sale of endowment landinTe Aroha. Funds setasideinrespect of the Total Council created reserves wastewater ponds. desludging of theTe Aroha Funds setasidefor the stormwater projects. Funds setasideto fund borrowing. and usedto fundinternal replacementassets of Funds setasidefor the deprecation. set asideto offset future received from industry and Capital contributionfunds to subsidiserates. investment, with returns used internalborrowing orexternal The fundisutilisedfor in 1998. local power board co-operative fromthe dissolutionthe of the communitybehalf of on Funds received andsetaside grants. foror communitypurposes e.g. foruse oncommunityfacilities Funds received andsetaside Purpose Purpose activities All Council Wastewater Stormwater activities All Council Wastewater activities All Council related to related Activities Activities reserves of parks and Developments Facilities Community Activities related related Activities : to 42,625 23,902 $000 Balance 1 11,775 5,754

679 July 100 415 2017

$000 Balance 1

569 July $000 17,410 14,145 110

2017 1,682 695 837 Transfers 50 in - $000 Transfers (15,044) (12,305) - - in $000 (1,420) (828) (475) Transfers (16) (457) $000 out Transfers 2017/18 -

out $000 - 177,864 121,852 44,991 10,627 23,911 13,615 10,174 6,016 $000 899 399

Balance 453

Balance 150

110 30 112 30 June 2018 June 2018 - generations. Additionally, Council has in place asset management plans for major classes of assets detailing renewal and Council’s assets andnot expecting themto meetthefull cost of longterm assets that will benefit ratepayers infuture the Actandappliedby Council. Intergenerational equity requires today’s ratepayers to meetthe costs of utilising The objective of managingtheseitems isto achieve intergenerational equity, which isaprinciplepromoted in liabilities, investments and general financial dealings. of the community. Ratepayers’ fundsare largely managedasaby-product of managingrevenues, expenses, assets, investments and general financial dealingsprudentlyandinamannerthat promotes the current andfuture interests The Local Government Act2002 (theAct)requires Councilto manageits revenues, expenses, assets, liabilities, represented by netassets. Council’s capital isits equity (or ratepayers’ funds), which comprise accumulated fundsandreserves. Equity is Capital management reserves revaluation Asset • Trust andbequest reserves. • Reserves for different areas ofbenefit. Council hasthefollowing Council created reserves: its activities. The sources andlevels of fundingare set out inthefundingandfinancialpoliciesCouncil’s LTP. the factors that Councilisrequired to consider when determining themost appropriate sources of fundingfor each of (where applicable) to meetthe expenditure needsidentifiedinthoseplans. The Actfurthersets out The Actrequires Councilto make adequate and effective provision inits Long Term Plan(LTP) andinitsAnnualPlan renewals andmaintenance. maintenance programmes, to ensure ratepayers infuture generations are notrequired to meetthe costs of deferred

Balance 1 595 2016/17

26 July $000

- - 2016 101,907 22,628 6,004 16,441 21,431 13,188 5,242 10,811 5,774

388 Transfers 110

- in - - - Total asset revaluation reserves Buildings Land Wastewater Stormwater Roading Infrastructural assets: Restricted buildings Restricted land Restricted assets Buildings Land Operational assets: Water

Transfers out - - - -

705 Balance

26 30 - - June 2017 Waste trust funds Bequests and Ambassadors Youth reserves restricted Total minimisation Reserve fund minimisation ofwaste of initiatives encouraging the Funds setasidefor thepurpose trust fund. nominated purpose of thebequest or Funds setasideto beusedfor the empowerthe youth ofourdistrict Funds setasidefor initiatives that Purpose purposes Nominated purposes Nominated purposes Nominated Activities related related Activities to

Balance 1

705 July

26 2017 0 0 348 359 Transfers 10 0 in (669) (205) Transfers (7) 2017/18

0 out $000 121,852 20,629 13,820 17,328 22,110 8,354 21,124 8,528 8,738 Balance 394 626 143 595

26 30

3 June 2018 53 Part Two: Financials - Annual Report 2017/18 54 Part Two: Financials - Annual Report 2017/18 Key management personnel compensation compensation personnel management Key such transactions. are consistent with thenormal operating relationships between the entities andare on normalterms and conditions for Further transactions with joint ventures and associated entities (such as funding and financing flows), where transactions adopted in dealing with thepartyat arm’s lengthinthesame circumstances. • on terms and conditions nomore or less favourable thanthosethat itisreasonable to expect theCouncil would have • within anormalsupplier or client/recipient relationship; and Related party disclosures have notbeenmadefor transactions with related partiesthat are: Related22. party transactions for thepurposethey were donated Interest isaddedto trust andbequest reserves where applicableand deductions are made where fundshave beenused Trust andbequest reserves are setup where Councilhasbeen donated fundsthat are restricted for particularpurposes. Any surplus or deficit relating to theseseparate areas ofbenefitisapplied to thespecific reserves. of generalrates. Reserves for different areas ofbenefit are used where there is a discrete set of rate or levy payers as distinct from payers There were nosignificant events after balance date. date balance after Events 23. is provided inNote 3. number of Councillors. Ananalysis of Councillorremuneration andfurtherinformation on ChiefExecutive remuneration Due to the difficulty in determining thefull-time equivalent forCouncillors, thefull-time equivalent figure is taken asthe 2016/17 $1,388,138 $974,654 $413,484 16 12 4 Total key managementpersonnelremuneration Total full-time equivalent personnel Full-time equivalentmembers Executive ManagementTeam, includingtheChiefExecutive Full-time equivalentmembers Mayor and Councillors Remuneration Remuneration 2017/18 $1,432,076 $432,257 $999,819 16 12 4 The carrying amounts of financialassets andliabilitiesin each ofthefinancialinstrument categories are as follows: 24A Financialinstruments categories Financial24. instruments 2016/17 $000 29,807 35,255 18,300 25,313 13,527 13,551 5,448 3,555 1,676 2,591 1,676 340 410 410 441 86 24 5 5 - Term- deposits Other financialassets: Receivables and cashequivalentsCash Loans andreceivables Derivative financialinstrument assets Fair value through surplus or deficit -held for trading assets Financial Derivative financialinstrument liabilities Fair value through surplus or deficit –held for trading Financial liabilities Total financialliabilities at amortised cost Borrowings Payables Financial liabilitiesat amortised cost Total fair value through surplus or deficit –held for trading Totalfair valuethrough othercomprehensiverevenue and expense - Investments inCouncilControlled Organisations and other entities - Local authorityand other stock Fair valuethrough othercomprehensiverevenue and expense Total heldto maturity - Local authorityand other stock Other financialassets: Held to maturity Total loansandreceivables - BanksRoad development loan - Industry loan - Communityloans Total fair value through surplus or deficit –held for trading 2017/18 $000 20,524 32,743 13,950 13,950 27,616 12,150 3,854 3,892 1,937 1,937 5,127 230 347 51 - - - 1 1 55 Part Two: Financials - Annual Report 2017/18 56 Part Two: Financials - Annual Report 2017/18 statement of financialposition: The following table analyses thebasis of the valuation classes of financialinstruments measured at fair value inthe where one or more significantinputsare not observable. • Valuation techniques with significantnon-observable inputs(level 3) –Financialinstruments valued usingmodels valued usingmodels where allsignificantinputsare observable. in active markets or quoted prices for identical or similarinstruments ininactive markets andfinancialinstruments • Valuation technique using observable inputs(level 2) - Financialinstruments with quoted prices for similarinstruments • Quoted market price (level 1) – Financialinstruments with quoted prices for identicalinstruments inactive markets. to thefollowing hierarchy: For thoseinstruments recognised at fair value inthestatement of financialposition, fair values are determined according 24B Fair value hierarchy disclosures value. Changing a valuation assumption to areasonable possible alternative assumption would notsignificantly change fair measurements: The tablebelow provides areconciliation from the opening balance to the closing balance for thelevel 3fair value Valuation techniques with significantnon-observable inputs(level 3) There were notransfers between the different levels ofthe fair value hierarchy. Derivative financialinstrument liabilities Financial liabilities other entities Investments inCouncilControlled Organisations and Local authorityand other stock Derivative financialinstrument assets Financial assets Derivative financialinstrument liabilities Financial liabilities other entities Investments inCouncilControlled Organisations and Derivative financialinstrument assets Financial assets 2016/17 $000 13,055 10,182 2,895 (22) - Balance at 30 June Sales Purchases Gain/(loss) recognised inthesurplus or deficit 1July at Balance Valuation techniques Valuation techniques $000 $000 2016/17 2017/18 Total Total 13,950 13,527 1,676 1,937 434 5 1 Quoted Market Market Quoted Quoted Market Market Quoted $000 $000 price price 434 ------Observable Observable Observable Observable inputs inputs $000 $000 1,676 1,937 440 472 5 - 1 observable inputs observable observable inputs observable Significantnon- Significantnon- $000 $000 2017/18 $000 13,055 13,055 13,510 13,510 455 ------Maximum exposure to credit risk credit to exposure Council’s maximum credit risk exposure for each class of financialinstrument isas follows: Maximum Council holdsno collateral or credit enhancements for financialinstruments that give rise to credit risk. Standard andPoor’s credit rating of at least A1for shortterm andAfor longterm investments. secured by charges over rates. Other than other localauthorities, Councilinvests funds only with entities that have a limits theamount of credit exposure to any one institution or organisation. Investments in other localauthoritiesare Council invests funds only in deposits with registered banksand localauthoritystock andCouncil’s Investment Policy which gives riseto credit risk. the timing of its cash inflows and outflows, theCouncil invests surplus cashinto term depositsandlocalauthority stock Credit riskisthethat athird party will default on its obligation to Council, causing Councilto incuraloss. Dueto Credit risk to theagreed notionalprincipalamounts. specified intervals, the difference between fixed contract rates and floating rate interest amounts calculated by reference borrowed at fixed rates directly. Undertheinterest rate swaps, theCouncilagrees with otherparties to exchange at converting borrowings at floating rates into fixed rates that are generally lower thanthose available iftheCouncil rate swaps in order to managethe cash flow interest rate risk. Suchinterest rate swaps have the economic effect of Generally, theCouncilraises longterm borrowings at floating rates and swaps theminto fixed rates usinginterest risk rate risk. rate market interest rates. Borrowings andinvestments issued at variable interest rates expose Councilto cash flow interest interest Cash flow interest rate riskisthethat the cashflows from afinancial instrument willfluctuate because ofchangesin flow Cash has borrowed at fixed rates outside ofthe30%target. Fixed to floating interest rate swaps are entered into to hedgethe fair value interest rate riskarising where theCouncil risk Council’s LiabilityManagementPolicy isto maintainnotless than30% of total borrowings infixed rate instruments. rate interest rates. Borrowings andinvestments issued at fixed rates ofinterest expose Council to fair value interest rate risk. interest Fair value interest rate riskisthethat the value of afinancialinstrument willfluctuate due to changesinmarket value Fair foreign exchange rates. Councilisnot exposed to any significant currency risk. risk Currency riskisthethat thefair value or future cash flows ofafinancialinstrument willfluctuate due to changesin Currency market prices. Councilisnot exposed to any significantprice risk. Price riskisthethat thefair value of future cash flows ofafinancialinstrument willfluctuate as a result of changesin risk Price Market risk Investment policies. These policies do notallow any transactions that are speculative innature to be entered into. to minimise exposure from itstreasury activities. Councilhas established Councilapproved LiabilityManagementand Council hasaseries of policiesto managetherisksassociated with financialinstruments. Councilisrisk averse andseeks Council’s activities expose itto a variety of financialinstrument risksincludingmarket risk, credit riskandliquidityrisk. 24C Financialinstrument risks Credit quality of financial assets financial and Poor’s credit ratingsof (ifavailable) or to historical information about counterparty default rates: The credit quality of financialassets that are neitherpast duenorimpaired canbeassessed by referencequality to Standard Credit explained in note 20. The Councilis exposed to credit riskasa guarantor of all of the LGFA’s borrowings. Information aboutthis exposure is 2016/17 $000 25,752 18,300 3,555 2,591 340 434 441 86 5 Total creditrisk Derivative financial instrument assets - Local authority and other stock - BanksRoad development loan Term- deposits Other financialassets: Receivables equivalents cash and Cash - Industry loan - Communityloans 2017/18 $000 20,525 12,150 3,854 3,892 230 347 51 - 1 57 Part Two: Financials - Annual Report 2017/18 58 Part Two: Financials - Annual Report 2017/18 Contractual maturity analysis of financial liabilities financial of include interest payments. floating rate ontheinstrument at balance date.analysis The amounts disclosedare the contractual undiscounted cashflows and at balance date to the contractual maturity date. Future interest payments on floating rate debtare based onthe maturity The following tableanalyses Council’s financialliabilitiesinto relevant maturity groupings based onthe remaining period Contractual • Maintainingaprudent debt maturity profile. • Maintainingappropriate short-term borrowing facilities. theyfall due. when • Appropriate cash flow management to ensure that sufficientfunds are available tomeetall ofits obligations asand by: liquidity its manages Council funding by keeping committed credit linesavailable. risk amount of committed credit facilities andtheabilityto close out market positions. Councilaimsto maintainflexibility in liquidity Prudent liquidityriskmanagementimpliesmaintainingsufficient cash, the availability offundingthrough anadequate of Liquidity riskisthethat Council will encounter difficulty raisingliquidfunds tomeet commitmentsasthey fall due. Management Liquidity risk ratepayers. mainly ratepayers, andhaspowers undertheLocal Government (Rating) Act2002 to recover outstanding debts from no significant concentrations of credit riskin relation to receivables, asithasalarge number of credit customers, monitor or report the credit quality of receivables with reference to internal or external credit ratings. Council has in thepast. Receivables mainly arisefrom Councilstatutory functions. Therefore there are noprocedures inplace to The counterparties that are notrated for credit quality (asshown inthetables on theleft)have nohistory of defaults Derivative financialinstrument assets Term deposits and cashequivalentsCash Derivative financialinstrument assets Banks Road development loan Industry loan Community loans Banks Road development loan Industry loan Community loans Local authorityand other stock Term deposits and cashequivalentsCash Credit ratings Credit ratings 2016/17 2017/18 $000 $000 14,800 AA- AA- 12,150 3,892 2,591 110 5 ------1 $000 $000 A+ A+ 300 ------$000 $000 3,500 A A ------$000 $000 A- A- 24 ------Not Rated Not Not Rated Not $000 $000 340 230 347 441 86 51 ------$000 $000 Total Total 18,300 12,150 3,892 2,591 340 434 230 347 441 86 51 5 1 Contractual maturity analysis of financial assets financial of analysis and includeinterest receipts. the balance date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flowsmaturity The tablebelow analyses Council’s financialassets into relevant maturity groupings based onthe remaining period at Contractual note 20. in the event of theLGFA failing to pay itsborrowings when they fall due. Information aboutthis exposure is explained in The Councilis exposed to liquidityriskasa guarantor of all of theLGFA’s borrowings. This guarantee becomes callable Total Borrowings Net settled derivative liabilities Payables 2017/18 Total - Local authorityand other stock - BanksRoad development loan - Industry loan - Communityloans Term- deposits Other financialassets: Net settled derivative assets Receivables and cashequivalentsCash 2016/17 Total Term- deposits - BanksRoad development loan - Industry loan - Communityloans Other financialassets: Net settled derivative assets Receivables and cashequivalentsCash 2017/18 Total Borrowings Net settled derivative liabilities Payables 2016/17 Carrying Carrying Carrying Carrying Carrying Carrying amount amount amount amount $000 $000 $000 $000 34,680 20,525 29,807 25,752 18,300 36,931 27,616 12,150 5,448 3,854 3,892 3,555 2,591 1,676 1,937 5,127 340 434 230 347 441 86 51 5 1 Contractual Contractual Contractual Contractual cash flows cash flows cash cash flows cash flows cash $000 $000 $000 $000 20,767 33,077 35,622 27,803 30,016 18,720 12,374 26,119 3,904 5,448 3,854 2,593 3,555 5,127 340 445 347 475 237 158 147 91 51 - - Less than 1 than Less 1 than Less Less than 1 than Less 1 than Less $000 $000 $000 $000 year year year year 25,843 20,767 14,077 18,720 11,003 12,374 3,904 5,448 8,803 3,854 2,593 3,555 5,397 5,127 340 445 347 238 237 158 147 52 51 - - 1-5 years 1-5 years 1-5 1-5 years 1-5 years 1-5 $000 $000 $000 $000 11,000 11,000 15,619 15,619 276 237 39 ------More than 5 than More 5 than More 5 than More 5 than More $000 $000 $000 $000 years years years years 9,000 8,000 9,000 8,000 ------59 Part Two: Financials - Annual Report 2017/18 60 Part Two: Financials - Annual Report 2017/18 market risk exposures at balance date. reasonably possible market movements, with all other variables held constant, based on Council’s financialinstrument The following table illustrates thepotential effect onthesurplus or deficitand equity (excluding accumulated funds) for Sensitivity analysis LED streetlighting programme that was approved by theAgency after theAnnualPlanbudget was finalised. The roading subsidyreceived from theNew Zealand Transport Agency was $672,000 higher thanbudgeted due to the • Buildingandresource consent revenue (offset by increased processing costs, resulting inanet revenue of$419,000). • Development andfinancial contributions ($1.385million greater thanbudgeted) • Landandinfrastructure vested inCouncilthrough thesubdivisionprocess ($3.966million greater thanbudgeted) development activity was significantlyhigherthanbudgeted including: well somesmaller developments includingThames Street, Morrinsville andMillarStreet, Te Aroha. Revenue related to during the year. Morrinsville’s Parkwood residential development was amajorsubdivision completed during the year, as A key feature reflecting inthefinancial results wasthehigh level of development activityinthe Matamata-Piako District Statement ofcomprehensiverevenue and expense Explanations for major variations from thebudgetfigures inCouncil’s 2017/18 AnnualPlanare as follows: budget against variances major of Explanations 25. parallel shiftininterest rates of -100bps/+100bps. sensitivity The sensitivityfor derivatives (interest rate swaps) hasbeen calculated usinga derivative valuation modelbased on a risk rate interest rates of 1%. interest constant, measured asabasispoints(bps) movement. For example,of a decrease in100bpsis equivalent to a decrease in The interest rate sensitivityisbased on areasonable possible movement ininterest rates, with all other variables held Explanation *bps =basispoints. Decrease by 100basispoint=1%interest rate decrease. Borrowings Financial liabilities and cashequivalentsCash Financial assets Interest rate risk Total sensitivity Borrowings Financial liabilities and cashequivalentsCash Financial assets Interest rate risk Total sensitivity 2016/17 2017/18 Surplus Surplus (15) (11) -100bps -100bps 50 70 59 35 Other equity Other equity Other $000 $000 ------Surplus Surplus (50) (70) (59) (35) 15 +100bps +100bps 11 Other equity Other equity Other ------June 2018. The fair value of Councilsinvestment inthe Waikato Regional Airport Limited increased by $453,000 for the year to 30 project.on completionthe of • written off duringthisfinancial year. • $199,000 in contributions recognised intheprevious year asincome for theSilver Fern Farms Events Centre was • A decrease inthe valuation of Council’s interest rate swap portfolio for the year of $265,000. • $703,000 recognised inthebooksasaloss on the disposal of assets that were replaced during theperiod. Other significantunbudgeted expenses included; have beenrequired to fulfil certain roles. forms of unpaidleave. The vacant roles have insome cases resulted inincreased operational costs where contractors Personnel costs were $623,000 lower thanbudgeted, due to difficulties filling vacantpositionsand stafftaking various borrowing costs andincreased investment income totalling $796,000. to fundthis capital work was notrequired, andnor were cash reserves required to beutilised. This resulted inreduced for the capacity isformalised. The delay inthe capital spendhasmeantthat thele million) andMorrinsville stormwater project ($1.8million) carried forward that will only progress when industry need in Morrinsville andMatamata ($500,000). There was alsotheTe Aroha water treatment plant capacity upgrade ($3.3 source andnew reservoir projects (totalling $1.1 million), andlandpurchases required for the extension of walkways forward from previous years that were againnot completed this year includethe Matamata water main, additional water obtaining therequired resources inthe current economic conditions, hasproven difficult. Significant projects carried negotiated. Alsoanumber of reticulation renewal projects (particularly Wastewater $681,000) have been delayed as confirmed, application for government funding was beingprepared, andtheproperty andplanningissues were being this year includedthe$4millionTe Aroha to Matamata RailTrail project, which was delayed while theroute was being Council did not complete thefullprogramme of capital work budgeted for the year. Significantprojects budgeted for last year andafair value movement this year of $453,000. standards), butnotuntilafter thebudget was set, resulting in a$10.2 millionincrease inthe carrying value on thebooks Council’s investment inthe Waikato Regional Airport was last year revalued at fair value (to comply with accounting ($12.8 million)thanbudgeted. resulted in cash investments beingsignificantlyhigher($11million)and external borrowing beingsignificantly lower The delay inthe capital work programme andthepositive cashflows from thehigh development activityinthe district Statement of financialposition million more thanhadbeenbudgeted, particularlyfrom landandbuildingsthat were last valued in2014. The revaluation of Council’s property andinfrastructural assets at 1 July 2017, resulted inanincrease in values of $7 $219,000 of project costs related to theMatamata CivicCentre were incorrectly recognised as capital andhave now been expensed vel ofexternalborrowing budgeted 61 Part Two: Financials - Annual Report 2017/18 62 Part Two: Financials - Annual Report 2017/18 for the year ended 30 June 2018 for the whole of Council 1. Fundingimpactstatement legislativeOther disclosures reconciliation following identifiesthe differences between these statements. and unrealised losses on assets to be reflected, whereas theseare excluded from the fundingimpact statement. The statement of comprehensive revenue and expense alsorequires “non-cash” expenses suchas depreciation, amortisation, by GAAP) suchasassets that are vested to usthrough thesubdivision process, or unrealised gains on assets. The “non-cash” income that is classified asincome inthe statement of comprehensive revenue and expense (as required intended to show inatransparent manner, how all sources of fundingreceived by usare applied. It does not include statements are not compliant with generally accepted accounting standards (GAAP). The fundingimpactstatement is Act 2002. Unlike the statement of comprehensive income (intheFinancialStatements section), thefundingimpact prepared in compliance with therequirements of clauses 26and30, part3, schedule10 of theLocal Government The fundingimpactstatements for each group of activitiesandthe overall Councilfundingimpactstatement are Annual Plan 2016/17 $000 (10,647) 20,045 22,225 10,647 10,976 10,922 13,453 29,412 41,818 11,578 4,666 2,630 3,583 31,171 1,759 7,519 405 266 758 327 71 -, - - - - - 2016/17 Acutal $000 (12,384) 30,482 23,072 10,660 (1,287) 10,688 44,215 20,190 12,384 31,831 6,640 4,820 13,812 6,298 4,597 2,763 1,349 7,281 549 670 524 120 261 77 - - - Funding balance ((A−B)+(CD)) Surplus (deficit) of capitalfunding(C− D) Total applications of capital funding(D) Increase (decrease) of investments Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Capital expenditure: funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt Development andfinancial contributions and grantsSubsidies for capitalexpenditure Sourcesfunding ofcapital Surplus/(deficit) of operating funding(A−B) Total applications of operating funding(B) Other operating fundingapplications Finance costs Payments to staff and suppliers Applications ofoperatingfunding Total operating funding(A) Local authoritiesfueltax, fines, infringement fees, and other receipts Interest and dividends from investments Feesand charges Subsidies and grants for operating purposes Targeted rates General rates, uniform annual general charges, rates penalties Sources of operatingfunding nul Plan Annual 2017/18 $000 (10,584) 42,600 30,250 21,840 10,584 32,016 10,397 11,256 13,031 21,146 11,734 3,462 2,689 (573) 7,389 1,766 5,211 405 266 282 257 ------2017/18 Actual Actual $000 (10,840) (5,608) 44,337 33,497 10,840 21,300 14,601 12,799 (2,191) 32,162 2,690 6,643 9,345 9,457 1,790 3,761 1,335 1,108 4,141 299 622 283 21 - - - - statements. 2018, thisrate was 3.76% (2017: 3.66%). Internal borrowings are eliminated on consolidation of activitiesinthefinancial between our average borrowing andaverage investment rates obtained intheprior year. For the year ended 30 June sources. Interest is charged to the various activitiesfor theirinternal borrowing at arate equal themid-way point Internal borrowings are utilisedto fund capital projects for various activitiesinstead of obtaining fundingfrom external 3. Internal borrowing and expense 2. Reconciliation between Council’s overall fundingimpactstatement andthestatement of comprehensive revenue Total internal borrowing Strategy andEngagement Groupsactivities of Water Wastewater Stormwater Rubbish andRecycling Community Facilities Roading 2016/17 Actual Actual $000 47,085 47,085 23,072 (1,287) 50,921 50,921 10,688 44,215 13,958 17,078 4,820 31,831 7,281 530 530 670 766 971 7 Other losses Depreciation andamortisation non-funded expenditureAdd Increase/(decrease) ininvestments Increase/(decrease) inreserves Capital expenditure Totalfunding applications ofcapital Totalapplications ofoperating funding Application of fundingasshown inthe overall Councilfundingimpactstatement Total expenditure asshown inthestatement of comprehensive revenue and expense Total fundingapplication Expenses from supportactivities Income from supportactivities Other gains Vested landandinfrastructure from property development Add non-fundedincome Gross proceeds from sale of assets Increase/(decrease)in debt Lessmovements capital Lessmovements capital Total income asshown inthestatement of comprehensive revenue and expense Total fundingsources Totalfunding capital Total operatingfunding Funding sources asshown inthe overall Councilfundingimpactstatement July 2017 July balance 1 balance Opening 28,847 9,826 7,908 1,209 6,471 1,425 1,149 859 funds borrowed Additional Additional 2017/18 $000 5,704 7,363 1,659 - - - - - Funds repaid repaid Funds 2017/18 $000 3,234 1,425 286 652 788 60 23 - Annual Plan Annual balance 30 30 balance 2017/18 June 2018 June $000 Closing $000 46,407 46,407 42,600 21,840 32,016 47,103 47,103 13,953 22,413 32,976 11,256 14,878 (573) 7,389 9,567 1,089 6,185 200 436 436 1,186 71 - - - - - Interest paid paid Interest 2017/18 2017/18 Actual Actual $000 $000 (5,608) 48,867 48,867 54,825 54,825 44,337 33,497 (2,191) 14,601 14,018 19,101 1,240 4,166 3,761 1,108 968 384 384 556 363 233 44 21 41 7 3 - 63 Part Two: Financials - Annual Report 2017/18 64 Part Two: Financials - Annual Report 2017/18 The following information relates to theinsurance of Councilassets asat 30 June: 4. Insurance of assets stormwater and wastewater assets, andprovide asubsidytowards therestoration of roads. In the event of natural disaster, central government may contribute upto 60%towards therestoration of water, June 2017 June $000 150,000 149,020 15,000 - - - Other natural- Other disasters - Fire The maximumamountto which insured assets are insured: contracts by insurance covered assets Council all of value total The Maximum amountavailable to theCouncilunderfinancialrisksharingarrangements The total value of allCouncilassets covered by financial risksharingarrangements June 2018 June $000 150,000 156,108 15,000 - - Matamata-Piako District Councils. Matamata-Piako’s shareholding is15.625%. WRAL isjointly owned by five localauthorities:Hamilton City, Waikato District, Waipa District, Otorohanga District and Waikato. the of economy to the important facility, infrastructural amajor as airport the of retention the to secure holding share former Crown’s the of purchase the negotiated owners part authority local The District. Waipa within Rukuhia at situated airport the to operate 1989 in established was WRAL (WRAL) Limited Airport Regional Waikato * Performance measures exclude the effect oflandsales(and cost oflandsales) and revaluation gains/(losses) Shareholders fundsto total assets Net cash flow (operating andinvesting) Funding Titanium Park Limited Net Investing cash flow Net Operating cash flow (EBITDA)* Earnings before interest, taxation and depreciation Net surplus/(deficit) after tax* recurring negative feedback ispromptly acted upon. the customer experience.toa database Maintain ensure feedback forms to continuously monitor andimprove Collect,(whereact and viable) document oncustomer in accordance with theNoiseManagementPlan. Facilitate noisemanagement meetings each 4months uncontrollable events). all scheduledpassenger services (except for Ensure airportis operationally available for evidenced by CivilAviation Authorityauditreports. required by theCivilAviation Authorityandas To achieve theAirportCertification Standards as system eachyear. Work Act2015 andindependentlyreview andauditthe align with therequirements of theHealthandSafety at Implement the Group’s HealthandSafety framework to Zero WorkSafe notifiableaccidents/injuries. with representativeswith from eachcompany department. Facilitate Health&Safety meetings every 2months organisations andCouncil organisations Involvement inCouncil controlled Performance measure ($1,500,000) ($366,000) $2,374,000 $1,700,000 $200,000 Achieve Achieve Achieve Achieve Achieve Achieve Achieve Target 76% 0 ($4,710,000) ($1,950,000) $3,023,000 $2,760,000 ($36,000) Achieved Achieved Achieved Achieved Achieved Achieved Achieved Actual 79% 0 impacted by controllable impacted operationally being flights incidences of scheduled There have no Certification Standards. Airport the to meet continues airport The implemented. recommendations were undertaken. All safety framework was and health Group’s the An independent audit of incidents. notifiable no were There on monthly basis. meetings are undertaken Safety and Health increasing property valuations and profitability budgeted than better to due planned than better is ratio The building. Hotel Airport the of purchase unbudgeted the reflects Result budgeted property sales TPL achieving higher than to due planned than better is Result Group’s property strategy the with line in was but building, Hotel Airport the of purchase unbudgeted the reflects Result activity improving earnings. higher than forecast passenger to due planned than better is Result activity improving earnings. higher than forecast passenger to due planned than better is Result activity. passenger forecast than to higher due planned than better is Result upgrade projects. improvements and future for planning in considered are and departments to relevant provided are forms Feedback received. forms feedback all of maintained is A database months. been facilitated every 4 Regular meetings have events. Actual outcome Actual 65 Part Two: Financials - Annual Report 2017/18 66 Part Two: Financials - Annual Report 2017/18 * Performance measures exclude the effect oflandsales(and cost oflandsales) and revaluation gains/(losses) Interest cover* Percentagenon-landing charges of revenue* Total liability/shareholders’ funds(debt/equity ratio) Net Debt Performance measure $13,000,000 Target 35:65 76% 5.0 $13,145,000 Actual 26:74 85% 6.0 activity improving earnings higher than forecast passenger to due planned than better is Result other revenue streams to relative higher being charges passenger in growth reflects Result and increasing property valuations. profitability budgeted than to better due planned than better is ratio The building. Hotel Airport the of purchase unbudgeted reflects Result Actual outcome Actual directors to supplementthe directors’ expertise. councils each director istheChiefExecutive of alocalauthority. Inadditiontheboard may appointupto three professional WLASS hastwelve Directors with each director representing ashareholder council. Unless otherwise agreed by theappointing Matamata-Piako’s shareholding is8.33%. organisation by way of a company, in which each localauthorityinthe Waikato Region hasasingleshare. Local authorities of the Waikato Region have established Local AuthorityShared Services Limited asa council controlled (WLASS) Limited Services Shared Authority Local Waikato approved by theSVDS Advisory Group. All capital enhancement work issupported by abusiness case and normal working99% of hours. The Shared Valuation Data Services (SVDS) isavailable to usersat least month following theirreceipt. Approved invoices for Mayoral Forum projects are paidby the20th of the that all of thestatutory requirements of the WLASS are beingadhered to Every second report shallbetheAnnualReport, which includesareport financial position ofthe WLASS to theshareholders every sixmonths. The Board shallprovide a written report on thebusiness operations and unless priorapproval is obtained from theBoard. Administration expenditure shallnot exceed budgetby more than5%, The WLASS Board reviews thefinancial statements quarterly. either renegotiated or retendered through a competitive process. Contracts which are due for renewal are tested for competitiveness and The WLASS Contracts Register ismaintainedandmanaged. by theBoard, andtheprojects are implemented. annum.If considered ofvalue,businessare cases developedforapproval A minimum of three priorityprojects for collaboration are identifiedper process New suppliersare awarded contracts through a competitive tender by theBoard. Implement therecommendations of theProcurement review, asapproved . Performance measure A single suite of resource consent applications was developed. was applications consent resource of suite A single data. valuation shared for platform anew • establish agent delivery aservice into WLASS • transform strategy digital the • execute Portal Data Waikato the • develop Board approved business cases to: Achieved renewal). of right contract the to exercise agreed Vehicle Fleet Management and Maintenance (where WLASS and Services, Health Occupational and Services Training and Assessment Driver On-line for processes tender competitive following procured were contracts service shared New Achieved across Councils. applied be will which tools supporting framework, policies, templates and developing a standard procurement - work has commenced on and Councils; to assist engaged been has specialist - aprocurement recommendations: the with line In Achieved There were no capital enhancements during the period. N/A year. the during hours business of 99.84% available was SVDS The Achieved Achieved report. annual this in out set as Completed Achieved to shareholding Councils. circulated and prepared Full-yearreport and Half via Completed Achieved advance. in Board by the approved were budget than greater materially items line Specific amount. budgeted the of – 83% budgeted than less ~$54k were costs administration Company Achieved meeting. Board each at accounts management received Board The advance. in invoiced being revenue of aresult largely is this although ~$616k, was period the for surplus cash The Achieved extension. to prior renegotiated appropriate where and reviewed were renewal for due contracts 18 period the Throughout Achieved maintained. is register risk Contracts Achieved completed. was assets infrastructure of construction and design the to relating Specifications Technical Infrastructure Regional Outcome 67 Part Two: Financials - Annual Report 2017/18 68 Part Two: Financials - Annual Report 2017/18 The day-to-day service provided by Aonisassessed assatisfactory inthe participating councils.the is assessed assatisfactory intheannual WLASS Shareholders’ survey by Strategic advice provided by Aon on theinsurance programme structure The SVDS Advisory Group meetsat least 6-monthly. The SVDS AdvisoryGroup meetsat least 6-monthly. meets statutorymeets compliance. Group membersare provided with ajoint quality assurance system that foreach Groupmember Control across the Waikato region. Internal auditsare completed annually Provide strategic direction andactively pursue improvements inBuilding CONSENT GROUP WAIKATO BUILDING peer reviewed each time the modelisupdated. out intheNZTA’s Economic Evaluation Manual), andisindependently The quality of thebasemodel complies with NZTA guidelines (asset model isprovided to the WLASS Board at least every sixmonths. A report from RATA on any new developments and on thestatus of the and budget. from themodelsupplierare actioned within theagreed timeframe, scope well maintainedandavailable to allusers. Allmodellingreports requested Waikato Regional Transportation Model(WRTM) The WRTM isreliable, stakeholders. Any data issues are identifiedand resolved, withany incidents reported to tendered through a competitive process. for renewal are tested for competitiveness and either renegotiated or managed inaccordance with best practice. Contracts which are due Data collection contracts (minimum of two across theregion) are circulated to stakeholders. Report on tour outcomes prepared by 31December each year and participate inthetour. knowledge and experience. AllRATA councils to provide opportunities for councils’ roading staff to share their Annual Forward Works Programme tours are completed, Reports includeasummary of savings andachievements. Boardas at 30December and30 June, and circulated to stakeholders. Road Asset Technical Accord (RATA)reports are presented to WLASS annual WLASS Shareholders’ survey by theparticipating councils Performance measure The tours were undertaken in August/September 2017. Achieved Reports presented savings to Councils. Achieved reporting). end year of part as 2018 September 28 on report final and 2018 April 13 on reporting year (half to Board presented reporting full-year and Half Achieved very satisfactory. or satisfactory either as advice the regarded respondents All Achieved satisfactory. very or satisfactory either as advice the regarded respondents all 2018, March in undertaken survey shareholders’ the on Based Achieved Sreplacement SVD the for case business the discuss to 2018 April in meeting additional an was year. THere the throughout meetings scheduled four had Group advisory The Achieved Sreplacement SVD the for case business the discuss to 2018 April in meeting additional an was year. THere the throughout meetings scheduled four had Group advisory The Achieved assessments since 1 July 2017. Only minor changes required. changes minor 2017. Only 1July since assessments at 6 IANZ by off signed been has Buildwaikato.co.nz www on information public and documents standard manual, QA Achieved FY19. for strategy WBCG the of part as addressed being is issue This programme. audit the compromised has resource of Lack Not Achieved model. the endorsed have and review peer the NZTAreceived have consultant. modelling traffic independent by an reviewed peer been has it and NZTA, the with approach agreed an with accordance in developed been has model The Achieved reporting). end year of part as 2018 September 28 on report final and 2018 April 13 on reporting year (half to Board presented reporting full-year and Half model. the in included projections population low and use Land Achieved completed. been have reports 22 year the During reporting. quarterly formal plus performance review that weeks six every Stantec with held meetings are there year. Further, financial each of beginning the at aschedule establishes and contract this oversees manager commercial WRTM The requested. reports modelling all to WRTM contract under to customers provide Group) Design Traffic the as known the (previously Stantec Achieved identified.- issues data no with met criteria performance All Achieved operating in accordance with contract requirements. are suppliers All renegotiated. and reviewed were renewals contract and process tender follow year the during awarded Counting Traffic and Surveys Rating Condition Collection, Data Speed to High related RATA three contracts The Achieved 2018. January in but shared and completed outcomes on Report Partially achieved Outcome WLASS, isupdated and circulated to shareholders by 31December 2017. achievements of The “Collaboration inAction” document, which summarisesthe and AnnualReport to shareholders. benefits beingachieved by WLASS are includedinthe6-monthly councils by WLASS. Information on thefinancialandnonfinancial Shareholders are informed of thebenefitsbeingprovided to shareholding BENEFITS REVIEW OF shareholders. to all reported are results the year, and each undertaken is shareholders Shareholders are satisfied withtheperformanceof of WLASS.survey A SURVEY SHAREHOLDER and achievements. All stakeholders are kept informed aboutFuture Proof’s projects FUTURE PROOF activities. Report at least sixmonthlyto the WLASS Board on the Group’s Performance measure although this occurred in the first half of 2018. of half first the in occurred this although notified, being Council’s shareholding with website, WLASS’s on The Collaboration in Action document is complete and included Partially achieved Intent of Statement the in out set are Benefits Achieved report. annual this of part as to shareholders reported being are Results 42%. low, at was rate response the although completed been has survey The In Progress meetings. Board 2018 July and 2017 December the at presented reports monthly Six Achieved process. end year the of part as 2018 September and 2018 January in provided Board to WLASS Reporting Achieved Outcome 69 Part Two: Financials - Annual Report 2017/18 70 Part Two: Financials - Annual Report 2017/18 This company’s prime objective is to ensure the long term provision of stable and cost effective risk financing products for products financing risk effective cost and stable of provision term long the to ensure is objective prime company’s This New Zealand Local Government Insurance Corporation Other companies and organisations Rail Trail. operator. It will alsoseekfundingfrom charitable organisations (such as gambling trusts) to fundthe extension of theHauraki Trail to appropriate standards. The Trust will oversee the operation andmaintenance of theHauraki RailTrail by a commercial of theTrust includethespecific objectives of expanding theHauraki Rail Trail where possible andmaintainingtheHauraki Rail The Trust’s purposeis generally to operate andfacilitate theuseand enjoyment of theHauraki RailTrail. The defined purposes Local Government Act2002. however on 14December 2011 we exempted theTrust from council controlled organisation reporting requirements underthe districts can alsoappoint one trustee to theTrust. The Trust falls within the definition ofa council controlled organisation, Hauraki, Thames-Coromandel andMatamata-Piako District Councils, who can each appointthree trustees. Iwiinthethree The Hauraki RailTrail CharitableTrust isa charitable trust formed to managethe cycleway. The Trust hasbeen created by supported theproject andinMay 2012 the cycleway (known astheHauraki RailTrail) was completed. from Paeroa to Te Aroha andto underwrite themaintenance of our portion of the cycleway. The community overwhelmingly In 2012 Council consulted on whether itshould contribute $500,000 to Hauraki District Councilto construct a cycleway Hauraki Rail Trail Charitable Trust other councils in New Zealand. New in councils other by held being shares remaining the with company the in shares the of 1.09% holds Council Zealand. New in government local The exemption must bereviewed every three years and was last reviewed on 08

November 2017.

What we do Significant effects them. effects ofCommunity Facilities andProperty are identifiedbelow, along with how weplan tomanageandmaintain Our activitieshave thepotential to have bothpositive andnegative effects onthe community. The significantnegative Community Facilities andProperty Partthree: What we do Why weactivities these do Libraries, Parks andTracks, Pools andSpas, PublicToilets andRecreation Facilities andHeritage. The activitiesresponsible for thisare CarparksandStreet Furniture, Cemeteries, Housingand Property Management, housing for elderly people, buildings, andfacilities that enable usto provide arange of services to the community. Community Facilities andProperty isaboutproviding facilities for sport, recreation and cultural activities, affordable community a great place to live and visit. responsible for managinghousingfor elderly peopleandCouncillandbuildings. These activitiesallhelpmake our like parksandtracks, through to practical facilities like public toilets, carparks and cemeteries. This activityisalso tourist attractions like FirthTower Museum, Te Aroha Mineral Spas, Hauraki RailTrail, andTe Aroha i-SITE, open spaces Community Facilities andProperty provide a wide range of community facilities like pools, libraries, and events centres, costs. maintenanceand energy may leadto increased buildings and other facilities units,housing corporate The ageand design of some provided. if services are notadequately by cemeteriestoiletspublic or issuesHealth couldbe caused natural environment. couldto causedamage our to maintain/create tracks nativeModifying ecosystems distribution. to theirlocation, size and under oroverbe used due Our community facilities may and bullying). (such as vandalism, graffiti result inanti-socialbehaviour communityfacilities could Theand designof location our activities Significant negative effects of

p p Carparks and street furniture p p p Cemeteries

p p p Housing and

property Council activities p p p Libraries

p p p Parks and tracks p p p Pools and spas p p p p Public toilets

Recreation p p p facilities and heritage housing units. coststhroughrenewals proactiveand maintenance our of hot water bore in2014. We continue to lessen maintenance energy costs at Swim Zone Matamata since installing anew as LEDlightingand double glazing. We continue to save on design of the Matmata-Piako CivicandMemorialCentre such We have incorporated energy efficient componentsinthe and safe to usefor our customers and visitors. toilets are cleaned four times daily to ensure they remain clean customer requests isprovided. Some of our busierpublic monitored/audited, andatimelyresponse to complaints/ We have ensured our staff are trained, our facilities are around assessing andmanaging environmental effects. was reviewed in2016/17. The revised Strategy includespolicies ecosystem e.g. replanting native plants. Our Track Strategy methods that cause theleast possible damage to the trackIn carryingoutour maintenance work wehave used the vision of the Open Spaces Strategy. continuing with our Track Strategy (adopted 2008)to reflect incorporated intheLong Term Plan2015-25. In2017/18 we are Various projects identifiedinthe Strategy have been and theneedfor additionallinkage parksand walkways. The Open Spaces Strategy 2013 looksat open space provision Matamata-Piako CivicandMemorialCentre. the Silver Fern Farms Events Centre inTe Aroha andthe and developing new parksand other facilities, including We continue to consider theCPTEDprinciples when planning How we have mitigated the effects 71 Part Three: What we do - Annual Report 2017/18 72 Part Three: What we do - Annual Report 2017/18 Carparks andStreet Furniture What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of improve safety andpublicart. parking in our three maintowns andstreet furniture like seats, picnictables, drinking fountains, signs, bollards to Carparks andStreet Furniture isaboutproviding convenient facilities for localsand visitors. This includesproviding Our projects from thelast twelve months Key projects undertaken inthelast twelve monthsare outlined below. Other (e.g. graffiti, blown lightbulb, otherminormaintenance issues). (e.g. broken glass, discarded needles, severe structural damage). Safety related - Animmediate riskto safety, likely to cause harmto users, Complaint type Total key capital projects (includinginflation) Total key capital projects Bulk funds Capital projects timely manner. and graffiti ina address vandalism furnitureand will carparks andstreet well maintained Weprovide will Levelservice of MatamataTown centre assigned timeframe*. responded to within the street furniture will be and Council carparks complaints regarding vandalism and graffiti more90% or ofdamage, performance How wemeasure secured fundingfrom other sources, suchasCentral Government, to complete thisproject. Carpark. Planningis well underway for thisproject and due to be completed in2018/19. We have also $40,000 was allocated from BulkFundsin2016-17 towards improving/expanding the Wairere Falls Wairere Falls is $150,000, thisisreallocated asneededbetween theactivitiesinthis group. While CarparksandStreet Furniture hasanidentifiedbudget of$25,000 the total budget for bulkfunds renewal plans/renewal budgets. Potential projects are assessed against criteria before beingapproved. This fundingprovides for minor, unplanned works and currently alsofundsrenewals that fall outside the Whathave webeen doing?

New measure 2014/15 Actual

57% Broadway, Matamata 2015/16 *Expected response times

46.15% 2016/17 2017/18 90% or 90% or Actual Target more 70% 2 working daysless or 2 worklesshours or to Friday 7am-4pm) During work hours(Monday X Achieved Additional information Silver Fern Farms Events Centre. complaint was aboutbroken glass inthe carpark outside the and meant we achieved 100% on urgent complaints. This matter that was responded to intheassigned timeframe time frame, giving usaresult of 70%. We had one urgent of these, we responded to 14 complaints within theassigned street furniture for theperiod1 July 2017 to 30 June 2018, We received atotal of 20 complaints regarding carparks and timely manner. acceptable standard, we aimto respond to complaints ina To ensure our facilities are safe andmaintainedto an Request Managementsystem Our response rate ismeasured through our Customer start of the nextstartthe of working day. 2 working daysless, or countedfrom the nextstartthe of working day. 2 work hours or less, counted from the After hours/weekend/statutory holiday Budget $000 2017/18 26 25 25 Actual $000 41 41 Cemeteries Our projects from thelast twelve months ashes interments andmemorials. cultural wellbeing of the community. Our cemeteries provide landfor traditional burialsas well asareas for ashesburials, Cemeteries provide spaces for the dignified burial ofbodiesandinterment ofashes, contributing to thesocialand Key projects undertaken inthelast twelve monthsare outlined below. Te Aroha Cemetery What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of standard. at ahigh maintained will be Cemeteries service Level of Total key capital projects (includinginflation) Total key capital projects Expansion Te Aroha Cemetery Bulk funds Capital projects the lastthe year. Council cemeteryin have visiteda cemeteries, who very satisfied with people satisfied/ Percentage of performance How wemeasure 2018/19. We have undertaken planningandscoping for theTe Aroha Cemetery expansion that will take place in reallocated asneededbetween theactivitiesinthis group. While Cemeteries hasanidentifiedbudget of$25,000 the total budget for bulkfundsis$150,000, thisis renewal plans/renewal budgets. Potential projects are assessed against criteria before beingapproved. This fundingprovides for minor, unplanned works and currently alsofundsrenewals that fall outside the Whathave webeen doing? 90% 2014/15 Actual 88% 2015/16 91% 2016/17 2017/18 Actual Target 80% 89% p Achieved We aimto maintain cemeteries at astandard that satisfies cemetery We measure thisthrough our AnnualCustomer Survey. Additional information included general maintenance andupgrading required. of respondents saidthey were dissatisfied. Reasons given for dissatisfaction 6% saidthey were neithersatisfied nor dissatisfied and1% didn’tknow. 4% cemeteries. 48%saidthey were very satisfied, 41% were satisfied. Afurther previous years with 89% of respondents satisfied/very satisfied with our visitors andshows respect to our deceased. This year’s result issimilarto Budget $000 26 25 25 2017/18 - Actual $000 9 9 - 73 Part Three: What we do - Annual Report 2017/18 74 Part Three: What we do - Annual Report 2017/18 buildings, suchas clubrooms on parks, that we leaseto others until we needthem. by hallmanagement committees. There isalsoarange of land, suchasundeveloped reserves and general property, and We alsohave 19 community halls, mainlylocated inrural areas. While we own thehalls, theindividualhallsare operated used to deliver services to the community includingCouncil offices, depotsandananimal pound. and any vacant staff housesare rented to members ofthepublic. This activityisalso responsible for corporate buildings provide staff housing to help attract new staff to move tothe district. Staff that use staffhousing pay market rate rents access affordable and convenient housingina quiet, maintenance free andsupportive living environment. We also We own andmanagea variety of land andbuildingsincludingproviding elderly personshousingfor older peopleto months are outlined below. There wereno Our projects from thelast twelve months Housing andProperty Management What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of Elderly personshousing Other projects Total projects (includinginflation) Total projects well utilised. be housing will persons Our elderly housing. persons elderly affordable provide We will elderly people. needs of meets the housing that provide We will service Level of

occupied. be housing will elderly persons At least 90% of district. median for the below themarket be housing will elderly persons Rent chargedfor accommodation. maintenance and standardthe of very satisfied with tenants satisfied/ persons housing Percentage of elderly performance How wemeasure new capital projects plannedin2017/18. Renewal projects that have beenundertaken inthelast twelve smaller projects suchasinstalling heat pumps, refurbishment andreplacement of bathroom fixtures etc. funding, meaningtherevenue gained through rent isusedto maintaintheseunitsandalso complete We maintainanumber of elderly personshousingunitsthroughout the district. This activityisself- Whathave webeen doing?

Achieved 85% 2014/15 Rents below median 99% Rents at least 10% Actual 87% below median

Achieved 2015/16 98.73% 82.6%

2016/17 Rents 10% least 10% Rents at 2017/18 median median 80.82% market market Actual Actual Actual Target below below 99.5% 80% 95% p p p Achieved ensure we are providing affordable housinginthe district. High occupancyrates housing will persons ofelderly This ismeasured through our internal records of occupancy. median. is $280). This 13.3%and 25%respectively, below market $180) and$210for atwo bedroom flat (market median Rent for a one bedroom flat is$156(market median is the market medianfor the district to ensure itisaffordable. Our policy isto set elderly personshousingrents below the ministry of Building, Innovation andEmployment. and review of annualmarket medianrents assuppliedby This ismeasured thoughanaudit of our annualaccounts condition of some of theunits. concerns aboutlack of ground maintenance andthepoor satisfaction. The mainreason for dissatisfaction was One respondent (1.36%)provided nofeedback on their respondents saidthey were neithersatisfied, nor disatisfied. with the overall elderly personshousingservice. 10.9% of were satisfied. 6.85% of tenants saidthey were dissatisfied 45.21% saidthey were very satisfied and 35.61% saidthey have access to good quality affordable housing. This year We provide elderly personshousingso elderly people can housing tenants undertaken inApril each year. This ismeasured by anannualsurvey of elderly persons Additional information Budget $000 2017/18 - - Actual $000 333 333 Libraries Our projects from thelast twelve months providing aninformation gateway. putting peopleintouch with information and point, offering opportunities for lifelong learning, providing publicspace anda community focal technology for people of allages, localheritage, such asreading, literacy andinformation support, andare actively involved inactivities the library have remained thesame. Our libraries mayhave changedovertime, the core roles of years. While thetechnology and delivery options communities with library services for over 100 Our publiclibraries have beensupplying our Levelsservice of Key projects undertaken inthelast twelve monthsare outlined below. What you canexpecthowand youknow will weare meeting your expectations. service Level of needs. community will support resources Our library community. to the be accessible services will Our library Total key capital projects (includinginflation) Total key capital projects broadband High speed issue RFID andself Capital projects The online. information library accessing of people The number libraries. visiting our of people The number performance measure How we services. with library very satisfied are satisfied/ users who of percentage Kaharoa (APNK). High speedbroadband improvements - Our publicinternet isprovided through theAotearoa People’s Network circulation efficiencies. RFID (RadioFrequency Identification) andselfissue provides increased stock managementand security, and Whathave webeen doing? 198,103 visits visits 8,154 85% 2014/15 186,552 Actual 16,383 visits visits 85% 2015/16 164,055 25,051 visits visits 85% 2016/17 (222,843 visits) 90% satisfied 143,292 visits (6,389 visits) 26,594 visits benchmark benchmark Morrinsville Library Customer Maintain Maintain satisfied 2013/14 2013/14 2017/18 or very Actual Actual Actual Target 90% p p X Achieved a perceived lack of titlesavailable on loan. and 2% didn’t know. Reasons given for dissatisfaction included dissatisfied and5% ofusersindicating they were dissatisfied being very satisfied, 32%satisfied, 3%neither satisfied nor Target satisfaction was achieved with 58% of respondents 2016/17 to 90% in2017/18. User satisfaction for thelibrary services hasincreased 5%from This ismeasured through our AnnualCustomer Survey. e-books,newspapers online and databases. correlates with increased electronic resources including The growth inpeopleaccessing our library information online 26,594 visits to thelibraries online services. benchmark of 6,389 visits. In2017/18 we had more than Our 2017/18 performance target isto maintainthe2013/14 This ismeasured through website visitor statistics. libraries. changed the way they are accessing information from the have increased (refer below), which indicates peoplehave was beingbuilt. Itisnoted that visits to thelibrary website space usedinthefirst half ofthe year whilst thenew library Matamata library visits are lower due to thesmalltemporary users choosing to interact with thelibrary services online. is consistent with national trends with more andmore library Physical visits to our three libraries continue to decline. This With 143,292 visitors for the year we did notreach thetarget. 222,843 visits.benchmark of Our 2017/18 performance target was to maintainthe2013/14 This ismeasured through door count records. Additional information Budget $000 100 118 112 112 2017/18 Actual $000 93 - 75 Part Three: What we do - Annual Report 2017/18 76 Part Three: What we do - Annual Report 2017/18 Parks andTracks Levelsservice of Our projects from thelast twelve months tracksare developedpartnership withvolunteerin maintained and community groups. children and young people. Our tracks provide opportunities for walking, cycling and experiencing nature. Many of our Playground andskate parkfacilities provide opportunities for recreation, physical development andsocialactivitiesfor We provide a variety of parksfor the community to useand enjoy for a variety of sportandrecreation activities. What you canexpecthowand youknow will weare meeting your expectations. Key projects undertaken inthelast twelve monthsare outlined below. will besafe. playgrounds Our public and reserves. parks use our community to the encourage promote and We will users. needs of to meetthe field facilities quality sports provide good We will service Level of Total key capital projects (includinginflation) Total key capital projects Bulk funds Playground Herries Park Capital projects regular basis. assesseda on safetybe will Playground reserves. parks and satisfied with or very users satisfied Percentage of sports fields. satisfied with satisfied/ very of users Percentage performance measure How we due to wet weather conditions and will be completed inthe2018-19 Financial Year. activities inthis group. Fundinghasbeenallocated towards new footpaths inreserves, thesehave been delayed the between $150,000, needed of budget as reallocated is total $50,000 this of budget Tracksidentified an has plans/renewal budgets. Potential projects are assessed against criteria before beingapproved. While Parks and This fundingprovides for minor, unplanned works and currently alsofundsrenewals that fall outside therenewal and improved safety. In July 2017 we upgraded theplayground at Herriespark - Te Aroha with new equipment to for a wider agerange Whathave webeen doing? 75% 81% 2014/15 Achieved Actual 79% 79% 2015/16 83% 79% 2016/17 undertaken annuallyto undertaken once every with therelevant New two weeks,and once external audit will be evaluate compliance school holidays. An 80% satisfied/very 80% satisfied/very 84% satisfied/very Inspections will be Inspections will every week during 79% satisfied/very Zealand Standard. Achieved satisfied satisfied satisfied satisfied 2017/18 Actual Actual Actual Target p p X Achieved incorporated into the work programme during the year. with recommendations for maintenance andrenewal work being An external playground audit was completed inDecember 2017 measured through our playground safety auditrecords. two weeksand once every weekholidays.school during Thisis 2017/18the During yearinspections were undertaken once every Be assured your children will besafe when usingplaygrounds. facilities underutilised. dissatisfaction includedlack of maintenance, dog fouling and dissatisfied and1%saidthey were very dissatisfied. Reasons for they were neithersatisfied nor dissatisfied. 2%saidthey were year. 34% were very satisfied and50% were satisfied. 13%said year’s results saw animprovement of 1% compared to last This ismeasured through our AnnualCustomer Survey. This facilities underutilisedandlack of parking. given for dissatisfaction included dog fouling on thefields, dissatisfied andno-onesaidthey were very dissatisfied. Reasons satisfied nor dissatisfied, and4% didn’tknow. 2%saidthey were very satisfied and42% were satisfied. 15%saidthey were neither year’s results were thesameaslast year. 37% saidthey were This ismeasured through our AnnualCustomer Survey. This Additional information Budget $000 50 50 52 - 2017/18 Actual $000 85 85 - relaxation. Te Aroha Mineral Spasare apopular tourist attraction for both domestic andinternational tourists. Pools andspas contribute to thehealthand wellbeing of our community by providing opportunities for swimming and What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of Our projects from thelast twelve months Pools andSpas Key projects undertaken inthelast twelve monthsare outlined below. the district. facilities in aquatic maintained provide well We will staff. users and for facility will besafe Our facilities service Level of Total key capital projects (includinginflation) Total key capital projects refurbishment Outdoor pool Matamata Bulk funds facilities. aquatic to use community our encourage promote and We will Te Aroha Mineral Spas

Morrinsville. out on Swim Zone be carried audits will Two independent Aroha Mineral Spas. Matamata andtheTe Aroha, Swim Zone out on Swim Zone Te be carried audits will Four independent performance How wemeasure maintained. pool facilities will be customersusing our Thenumber of last year. have usedtheminthe pool facilities that very satisfied with customers satisfied/ Percentage of Refurbish 25m outdoor poolat Matamata Swimzone Whathave webeen doing? Zones. the between needed activities in this group. as Examples reallocated of bulk funded projects include new drinking fountains is at each of our Swim $150,000 of budget total this $25,000, of budget identified an has Spas plans /renewal budgets. Potential projects are assessed against criteria before being approved. While Pools and This fundingprovides for minor, unplanned works and currently alsofundsrenewals that fall outside therenewal Achieved

124,824 75% Actual 2014/15

145,363 74% 2015/16

169,780 70% 2016/17 Swim Zone Morrinsville. Visitor numbers will be independent auditsfor Te Aroha andTe Aroha Matamata, Swim Zone audits for Swim Zone within 5% of thefive Four independent Mineral Spas. Two year average Achieved 176,466 2017/18 Actual Actual Actual Target 80% 87% p p p Achieved Additional information which exceedstarget. our During the year we had176,466 visitors to our poolfacilities, five year average. The five year average was133,651 visitors. The target for 2017/18 is visitor numbers will be within 5% of the of district visitors. and thefigures donot differentiate between residentsand out Measured by attendance records, each visit is counted as one comments about costs andrestricted opening hours. for dissatisfaction includedrequests for upgrading facilities, and afurther1%saidthey were very dissatisfied. Reasons dissatisfied, and1% didn’tknow. 1%saidthey were dissatisfied were satisfied. Afurther10%saidthey were neithersatisfied nor to 2017/18. 49% of respondents were very satisfied and38% This year’s results saw animprovement of 17% when compared This ismeasured through our AnnualCustomer Survey. programme andtherenewal planningfor future years. need to be cleaned. This hasbeenincorporated into the work some areas within thefacilities require maintenance and 2017 andMarch, June 2018. The auditreports identifiedthat pools andspas were completed inSeptember andDecember safety will notbeputat risk while using our pools. Audits on our Professional pool operation andmanagement ensures people’s This ismeasured through records of quarterly external audits. Budget $000 26 25 25 2017/18 - Actual $000 391 371 20 77 Part Three: What we do - Annual Report 2017/18 78 Part Three: What we do - Annual Report 2017/18 Public Toilets Our projects from thelast twelve months Our publictoilets provide residents and visitors access to safe, clean and convenient toilet facilities. Levelsservice of There were nomajorprojects plannedfor thePublicToilets activityplanin2017/18. What you canexpecthowand youknow will weare meeting your expectations. standards. to acceptable maintained toiletsbe will Our public Levelservice of Matamata Public Toilets public toilets.public cleanliness of with the dissatisfaction received regarding complaints number of Through the performance How wemeasure

New measure 2014/15 Actual

22 complaints 2015/16

34 complaints 2016/17 20 or less20 or complaints about cleanlinessper 36 complaintsabout cleanliness 2017/18 Actual Target year X Achieved relocated if demand changes inthefuture. vandal-resistant, more aesthetically pleasing, andableto be better ableto cope with visitor numbers, easier to maintain, renew the Waharoa toilets in2019/20. The new toilets will be monitor thisfacility. We have allocated $200,000 to replace/ 2018/19 will be cleaned three times daily. We are continuing to rest area toilets. These toilets are cleaned twice daily andin A large proportion of complaints are related to the Waharoa toilets2017/18. during We received 36 complaints regarding the cleanliness of public reported via our Customer Request ManagementSystem. measured through thenumber of complaints about cleanliness wellbeing of our community isnotnegatively affected. This is Our publictoilets will bemaintainedto ensure thehealthand Additional information information centres. museums, heritagebuildingsand campgrounds, event centres, facilities includeanaerodrome, touriststo ourdistrict. recreationOur cultural heritageand encouraging well aspromoting andpreserving our is aboutrecreation opportunities as Recreation Facilities andHeritage Recreation Facilities andHeritage Key projects undertaken inthelast twelve monthsare outlined below. Our projects from thelast twelve months Levelsservice of What you canexpecthowand youknow will weare meeting your expectations. manner. and graffiti inatimely damage, vandalism addressand will and heritagefacilities maintained recreation Weprovide will well Levelservice of Bulk funds Centre Memorial Civic and Piako Matamata- projects Capital Total key capital projects (includinginflation) Total key capital projects Stadium Headon maintenance issues). Other - (e.g. graffiti, blown lightbulb, otherminor severestructural damage). cause harmto users, (e.g. broken glass, discarded needles, Safety related - Animmediate riskto safety, likely to Complaint type - Expected response times Planning isunderway for theHeadonStadium renewal andmaintenance project. $50,000 wasgroup. allocated against thisactivityundertheLong Termthis in Plan. activities the between needed under CommunityFacilities andProperty hasabudgetidentified, this total budget of$150,000 is reallocated as plans/renewal budgets. Potential projects are assessed against criteria before beingapproved. While each activity This fundingprovides for minor, unplanned works and currently alsofundsrenewals that fall outside therenewal This project was budgeted over multiple years andthe overall project came within budget. houses aMemorialHallas well asCouncil’s Matamata Area Office andLibrary. The Matamata-Piako CivicandMemorialCentre serves the whole district. The facility was opened inApril2018, it Whathave webeen doing? assigned timeframe. responded to within the facilitiesbe will recreation andheritage complaints regarding vandalism and graffiti more90% or ofdamage, performance How wemeasure

New measure 2014/15 Actual 2 working daysless or 2 worklesshours or Friday 7am-4pm) During work hours(Monday to Matamata-Piako CivicandMemorialCentre 57% 2015/16 90% 2016/17 2017/18 90% or Actual Target more 83% X Achieved urgent complaints within theadopted timeframes. attended to within timeframe. We have attended 100% of Grandstand, toilet blockand changing shed. This was complaint relating to broken glass at theAR Johns Stadium inPohlen Park. We alsorecieved one urgent of thesix complaints were related to graffiti atHeadon were responded to within theadopted timeframe. Three Heritage facilities in 2017/18. 5(83%) of these complaints six complaints about damage to our Recreation and Request Managementsystem. We received atotal of Our response rate was measured from our Customer Additional information next working day. 2 working daysless, or countedfromstartthe the of next working day. 2 work hours or less, counted from thestart of the After hours/weekend/statutory Holiday Budget $000 2,000 2,050 2,147 50 2017/18 - Actual $000 5,580 5,619 39 - 79 Part Three: What we do - Annual Report 2017/18 80 Part Three: What we do - Annual Report 2017/18 Community Facilities andProperty Funding impact statement for the year ended 30 June 2018 June 30 ended year the for statement impact Funding Term Plan 2016/17 budget $000 Long (2,801) 6,840 9,027 2,203 11,108 1,434 2,801 2,722 3,515 1,770 1,378 1,104 8,191 134 195 417 56 61 13 ------2016/17 (2,407) Actual $000 11,750 2,407 8,043 9,343 3,536 (552) 3,377 7,285 2,091 1,252 1,129 1,714 1,102 344 227 501 120 99 78 73 4 ------Capital expenditure funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt Development andfinancial contributions and grantsSubsidies for capitalexpenditure Sourcesfunding ofcapital Surplus (deficit) of operating funding(A−B) Total applications of operating funding(B) Other operating fundingapplications Internal chargesand overheads applied Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Total operating funding(A) fees, and other receipts Local authoritiesfueltax, fines, infringement Internal chargesand overheads recovered Feesand charges Subsidies and grants for operating purposes Targeted rates charges, rates penalties General rates, uniform annual general Sources ofoperatingfunding Funding balance ((A −B)+(CD)) Surplus (deficit) of capitalfunding (C− D) Total applications of capital funding(D) Increase (decrease) of investments Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Term Plan 2017/18 budget $000 Long (2,154) 11,488 2,690 9,334 (553) 2,239 8,527 2,762 2,154 1,866 7,010 458 536 847 478 136 157 63 58 ------2017/18 Actual (1,426) $000 10,081 11,507 2,984 6,455 6,379 7,805 2,052 8,263 1,426 7,858

6,173 1,137 206 159 213 171 97 4 ------forgave theremaining $199,000 donation owing from theTe of CommunityFacilities compared to that budgeted. Council cost was recognised for staff timeinvolved inthemaintenance season to provide asafe playing field. Inaddition, ahigher ground required re-soiling andreseeding priorto therugby removal of old vegetation at HerriesPark. The Waihou rugby maintenance was required on thebike track inTe Aroha, andthe StreetHetana in where extratree work wasrequired, extra additional costscaused comparedsafetytobudget -concerns commissioned on Matamata's HeadonStadium. Weather events to budgetincludingaparkssafety auditandan options report Additional assetmanagement work wasundertaken compared due to ahighersurplus of fundsavailable for internal borrowing. Internal interest allocated to thisactivity was higherthanbudgeted Farms Events Centre, the Waharoa Aerodrome andFirthTower. increase inactivityat the Te Aroha Mineral Spas , theSilver Fern from theElderlyPersons Housingunits. There was alsoan The majorincrease infees in charges was from increased rents targeted rates for specificprojects planned for theirrural halls. A number of HallCommittees requested increases to the the extentbudgeted. The LTP includedaforecast for inflation that didnot eventuate to from that set out intheLTP. The timing of theMatamata Civic Centre project was delayed be raised inprior years. which was completed2017/18 during wasbudgetedto originally Debt raised inrespect of theMatamata CivicCentre project, and Thames Street, Morrinsville subdivisions. contributions received inrespect of theMillerStreet, Te Aroha for theMorrinsville residential subdivision. There were also contributions received this year were from Parkwood MV Limited significantly higherthanbudgeted. The major development Thelevel ofdevelopement contributionsreceived was was operating coststhe overheads onwhich are allocated. costs for thisactivityare higherthanbudgeted due to theincrease in available internally to meet capital fundingrequirements. Overhead budgeted, but offset by lower external finance costs as cash was Internal interest charges allocated to thisactivity were higherthan finance costs. in the capital programme (as detailed below), reducing overall Debt raised was lower thanprojected intheLTP due to the delay expensedproject. oncompletionthe of Centre were incorrectly recognised as capital andhave now been this year. $219,000 of project costs related to theMatamata Civic Aroha Events Centre CharitableTrust which hasbeen expensed Explanation of key variances to theLong Term Planbudget Did youknow? Parade, which all helpto make Matamata-Piako District a great place to live. District suchas, theannualMorrinsville Fireworks Extravaganza, theherd of cows project andtheMatamata Christmas our Community, suchas, operating thei-site buildings, street cleaning andmaintenance as well asbringing events to the Council hasallocated fundingto anumber of organisations in our District that work to enrich andprovide services to along with how we planto manageandmaintainthem. effects of Strategy andEngagementare identifiedbelow, negative effects onthe community. The significantnegative Our activitieshave thepotential to have bothpositive and Significant effects What we do Why weactivities these do Strategy andEngagement meet. as itsetsanumber of legislative requirements that we must Act 2002 alsohasasignificantimpact ontheseactivities, an integrated andsustainable way. The Local Government termto ensurethat ourcommunities growand develop in transparent decision making. This helpsusplanfor thelong of Councilactivitiesand can beinvolved in open and Theseactivities ensure ourcommunityare informed Community Leadership, andStrategies andPlans. for thisare CivilDefence, Communications andEvents, for thefuture of our community. The activitiesresponsible Strategy andEngagementisaboutmaking good decisions Morrinsvile Art Charitable TrustGallery Morrinsville Chamber of Commerce Matamata PublicRelations Association Sport Waikato Hamilton and Waikato Tourism Organisation poor emergencyplanning. The community could beputat riskby and strong strategies andplans. can contributeto community wellbeing Council/community relationships that Potential failure to buildandmaintain requirements. are inadequate or fail to meetstatutory developmentplanning documents if our community, the environment and A risk of negative impacts on the whole community, includingIwi. for engagement may notreach the Our communicationsand opportunities activities Significant negative effects of our p p p p Civil Defence Council activities

p p Communications and Events Provides sport programmes andsupprts sports inthe Waikato Region. Operates the Wallace inMorrinsville.Gallery serving asa champion for improving the overall quality of life intheregion. Promotesbusiness, enhances economicand community development while serving asa champion for improving the overall quality of life intheregion. Promotesbusiness, enhances economicand community development while Promotes our District asaleadingtourist destination. How thefundingisused

p p Community Leadership

p p p Strategies and Plans How we have mitigated the effects Defence activityfor more details on our activities. and having staff trained to supportan emergency response. Please refer to theCivil We are prepared for emergencies through community education, response planning through ourcommunicationsplanning. ensure community groups likely to beimpacted by theseare engaged intheprocess and community goals.When weinvite feedbackstrategies onvariousand plans we We continue to work with andsupport community organisations that share Council changes. Plan, pleaserefer to theStrategies andPlanactivityfor more details on theseplan our community. We are committed to undertakingarolling review of our District We continue to review andmonitor our plansto ensure they meettheneeds of communicationIwi. with Guidelines andKaitiaki/Cultural Monitoring Protocols to assist with Council’s have workedForumthe developmentthe on with Tangata of WhenuaEngagement, Piako andpost-treaty settlementIwi entities to understand consultation needs. We and engagement are used. We engage with Te Manawhenua Forum moMatamata- prepare a communications planto ensure appropriate forms of communication ensuring themethods chosen are appropriate for thetarget audience/s. We Wea varietyuse ofcommunicationto channels communicatethe community, with

Anzac day2018 Amount granted $150,000 $50,000 $20,000 $70,000 $70,000 $70,000 2017/18 81 Part Three: What we do - Annual Report 2017/18 Civil Defence

Civil Defence Emergency Management (CDEM) is a function and responsibility of regional, city and district councils. Our Civil Defence role includes community, organisational and business readiness, including public education and awareness, training and exercises and local response planning. We are part of the Waikato CDEM Group, which includes the Waikato Regional Council and all 10 district/city councils, as well as emergency services, welfare agencies and utility providers. This group works closely with research institutions, utility operators and central government to reduce risks and improve community resilience. We’re also part of the Thames Valley emergency operating area, which provides Civil Defence services locally.

Our projects from the last twelve months Running emergency exercises and the regular review of our local and regional plans are the core of this activity. A Disaster Recovery Plan has been developed for our district.

Levels of service What you can expect and how you will know we are meeting your expectations.

How we 2017/18 Level of measure Additional information

service 2014/15 2015/16 2016/17 performance

Actual Target Achieved

We need to have the right staff with the right qualifications to respond to a civil defence emergency in the Thames Valley civil 70% defence area. Those positions include the controller, intelligence officers and several other essential roles. We aim to ensure a minimum We will have We will be percentage of those positions are filled (taking staff turnover into sufficient prepared to account). This is measured through our internal records. trained staff assist the within the The national training framework for Civil Defence is still being community 24% 35% 36% Actual Thames Valley X developed and is programmed to occur over the next two years. Once in the Emergency these are available we will ensure we have appropriately trained staff. event of an Management emergency. As of 30 June 2018 we have only reached 42% of the positions filled Operating Area. with appropriately trained staff. The remaining courses are still being 42% developed nationally. We provide information to our community on emergency readiness via our website and facebook.

CIvil Defence Emergency Pack Part Three: What we do - Annual Report 2017/18 - Annual Report do we What Three: Part Matamata-Piako District Councillors 2017/18 82 Communications and Events

Communications and Events is responsible for keeping the community informed and actively encouraging people to engage with Council. This involves developing plans and materials to engage with the community, monitoring social trends such as social media, online services and mobility, and implementing improvements to make it easier for customers to do business with us or participate in our processes. Communications and Events also organise events that contribute to a sense of community such as ANZAC Day ceremonies and the Community Volunteer morning tea and economic development activities such as the Business Night Out and Industry Training Graduation.

Our projects from the last twelve months Key projects undertaken in the last twelve months are outlined below.

2017/18

Projects What have we been doing? Budget Actual $000 $000

Increase transactions/ Allowing people to access, apply, pay and track differtent Council services online (such as resource consents, 75 - services that are dog registrations and rates. See comments below under the levels of service table. available online This year we have held the Business Night Out, Volunteer morning tea, Industry training graduation, Anzac Day Events 28 31 ceremonies

Total key operational projects 103 31

Total key operational projects (including inflation) 108

Levels of service What you can expect and how you will know we are meeting your expectations.

Level of How we measure 2017/18 Additional information

service performance 2014/15 2015/16 2016/17

Actual Target Achieved We will hold one function A volunteer evening was held on 21 June at Kaimai annually to recognise Cheese to recognise and thank the groups and volunteers, ANZAC individuals who volunteer in our community. Volunteers Day commemorations are the heart of any caring community and many services and two functions to could not exist without these individuals and groups who contribute to economic freely give of their time and expertise. development. ANZAC Day Civic ceremonies were held in Matamata, Morrinsville, Te Aroha and Walton on 25 April. These Actual ceremonies give the community a chance to remember We will hold Business Night Out We will hold one and pay their respects to those who served our country. events to function annually The Business Night Out was held on 12 October, 2017 recognise to recognise ANZAC Day at the Silver Fern Farms Event Centre in Te Aroha to volunteering volunteers, celebrate business success in our community. Guests and cultural ANZAC Day Business Night Out were entertained by keynote speaker Martin Sneddon. significance commemorations Industry Training This event was sponsored by and in our ANZAC Day p and two Graduation Fonterra (major sponsors), and Bayleys and Gull (award community commemorations in functions to sponsors). and Matamata, Morrinsville, Te contribute contribute Community Volunteer Aroha and Walton The Industry Training Graduation was held at Power to economic to economic Awards Farming on 27 April to celebrate the success of those development. Industry Training development. Graduation who have chosen to complete a qualification through and Industry Training Organisation, and to thank the Hauraki Rail Trail Business employers who have supported them through these opportunites workshop qualifications. Community Volunteer In addition to these events, a workshop was held on 12 Awards June at the Matamata-Piako Civic and Memorial Centre for business opportunities associated with the Te Aroha to Matamata Hauraki Rail Trail extension. The Volunteer Youth Ambassadors coordinated their first Youth Volunteer Awards on 30 November 2017. We will continue One new transaction/ This is measured through our internal records. developing service per year The ability for customers to purchase rubbish bags and online recycling bins online was added to the MPDC website The number of services so ahead of changes to how Council supplies rubbish bags transactions/ residents and Actual to residents and ratepayers. services that can ratepayers be completed Council also began live streaming events to Facebook can access p electronically will to improve community access to information. Examples

information vouchers increase each Purchase rubbish bags & include live streaming a walk through of the Matamata- Service kiosk Service and interact measure New year. recycling bins online Piako Civic and Memorial Centre during the construction, with Council Recruitment system system Recruitment and a meeting between Mayor Jan, Councillor Ash Tanner Livestreaming events at any and Waikato Police Superintendent Bruce Bird about time, from gift purchase system Ticket crime issues in Te Aroha. anywhere. Part Three: What we do - Annual Report 2017/18 - Annual Report do we What Three: Part

Matamata-Piako District Councillors 2017/18 83 84 Part Three: What we do - Annual Report 2017/18 the elctions to beheld October 2019. There have beennokey projects undertaken inthelast twelve months, thekey project of thisactivity will be Our projects from thelast twelve months Levelsservice of What you canexpecthowand youknow will weare meeting your expectations. Community Leadership and involving peoplein decision makingprocesses. represent themandto make decisions on theirbehalf. This involves providing leadershipfor the community asa whole Community Leadership isresponsible for involving the community in decision making. Communities elect membersto service Level of access. find and people to easy for information Council Wemake will process. making the decision status in Whenua with Mana Whenua Tangata will involve Council members. elected in theirlocal confidence will have People service Level of Matamata-Piako District Councillors2017/18 Information andMeetings Government Official provisions of theLocal accordancethe with meetings are heard in and committeeCouncil and Mayor. performanceCouncillors of very satisfied withthe community satisfied/ Percentagethe of performance How wemeasure in decision making. in decision are recognised andinvolved WhenuaWhenuaMana with satisfied that Tangata members satisfied/ very Manawhenua Forum PercentageTe of Act 1987. performance How wemeasure information. access to Council with easeof are satisfied residents who Percentage of

New measure 2014/15 (bench Actual mark) 61%

77% compliance 63% 2015/16 2015/16 Actual 100%

64% 65% 2016/17 63% 2016/17 65% 68% 2017/18 2% improvement2% on 75%more or 75%more or compliance satisfied satisfied 2018/19 Actual Actual Actual Target 100% 100% benchmark 70% 56% 2017/18 Actual Target 65% p X X Achieved Additional information decisions after thefact so don’t feel involved inthe decision. three members. This comment saidthey felt they received the Only onecommentabout dissatisfaction wasreceived from results were downfrom 2016/17. Manawhenua moMatamata-Piako Forum members. This years This ismeasured by anannualsatisfaction survey of Te community. informed andrepresentative decisions on behalf of the decision makingprocess, we can ensure that we are making By involving Tangata Whenua with manawhenua status inthe through our internal records. when, where andhow decisions are beingmade. This ismeasured To enable the democratic process the community needsto know lack ofcommunication,and consultation.action members. The mainreason given for dissatisfaction was about they were very dissatisfied withthe performance of elected and 7% didn’t know. 3%saidthey were dissatisfied and2%said and 53%). Afurther18% were neithersatisfied nor dissatisfied survey respondents were either very satisfied orsatisfied (17% This ismeasured by theAnnualCustomer Survey. In2018 70% of p Achieved information yourselfand generally unhappy. access to information, timeliness of response, have to find dissatisfaction included comments aboutlack of ready dissatisfied and1% very dissatisfied. Reasons given for satisfied nor dissatisfied and6% didn’tknow. 6% were and 46% were satisfied. Afurther22% were neither 19% of respondents saidthey were very satisfied This ismeasured through our AnnualCustomer Survey. Additional information

• • • • decision making: There are four key documents that are developed undertheStrategy andPlansactivity. Involving the community in Levelsservice of What you canexpecthowand youknow will weare meeting your expectations. - Strategies andPlans Key projects undertaken inthelast twelve monthsare outlined below. Our projects from thelast twelve months to participate in havethe opportunity Our community will district. resourcesthe of natural andphysical and theprotection of and development, progress on landuse updateannual on We will provide an processes. Council consultation Levelservice of Total key operational projects (includinginflation) Total key operational projects RMA policy Regional review District Plan collaboration Regional Bylaws Policy and Report Annual Annual Plan Plan Long Term Projects The District Plan The AnnualReport The AnnualPlan The Long Term Plan JWP with thesupport of staff from each council. Otorohanga to become the Joint Working Party (JWP). Elected representatives of thesix councils madeupthe Statement (RPS), we engaged with five other councils -Hauraki, South Waikato, Thames-Coromandel, Waitomo and To ensure that Councilplayed anactive role inthe development of theProposed Waikato Regional Policy havechanges been completed be over orwill the coming years. 10 year statutory timeframe, we have commenced areview of each of the39 plan changes required. These plan reviewed each year. The Matamata-Piako District Planbecame operative in July 2005 so, in order to meetthe become operative. We have decided to undertake arolling review, which meansthat parts of theplan will be We are required to commence areview on theprovisions in our District Plannolater than10 years after they comprehensive and effective long-term (30 year) strategy for Waikato’s growth and development.’ for theplanis‘To contribute to the Waikato’s social, economic, environmental, and cultural wellbeing through a a ‘one Waikato’ view aboutthefuture of theregion to enable informed decision making. The primary objective The development of a Waikato Planhasbeenunderway since May 2013. The aim of the Waikato Planisto take Contributions Policy andRates Remission andPostponement Policies. Council reviewed anumber of policiesinthe2017/18 year inclduingtheEaster Trading Policy, Development against our key performance targets andbudgets. year. The AnnualReport letsthe community know what projects we have undertaken andhow we have performed Under theLocal Government Act2002, we are required to prepare andadoptanAnnualReport each financial the budgetfor that financial year. adopt aLong Term Plan. The AnnualPlanletsthe community know what projects we plan on undertakingandsets Under theLocal Government Act2002, we are required to prepare andadoptanAnnualPlaninthe years we do not for thisproject over three years. We review our 10 year strategic plan every three year. To lessen theimpact on rates we have smoothed thebudget Whathave webeen doing? each year. Council’son website reports will beupdated environment monitoring Statethe of consultation processes. to beinvolved in an opportunity with have beenprovided very satisfied that they community satisfied/ Percentagethe of performance How wemeasure

20 November New measure 2014/15 Actual

20 November 52% (bench mark) 2015/16

18 November 49% 2016/17 20 November reportbe will 16 November The updated available by Benchmark each year 2017/18 Actual Actual Target 2017 56% 52% p p Achieved monitoring intheAnnualReport. We alsoreport on trends that we identifythrough our updateresultsmonitoring this onto of ourwebsiteannually. need to beaddressed during District Planreviews. We protect the environment andhighlights any issues that allows usto identifyif we are achieving our objectives to reportingstateMonitoringand the on ofourenvironment our website 16November 2017 The State of Environment Report 2016/17 was published on percievedlack ofconsultationpublic. the with very dissatisfied. The main reason for dissatisfaction was a 11% don’t know. 4%saidthey were dissatisfied and1% were of respondents saidneithersatisfied nor dissatisfied and 2017. 13% were very satisfied and43% were satisfied. 28% This year’s results saw a7%increase when compared to This ismeasured through our AnnualCustomer Survey. Additional information Budget $000 200 399 381 50 50 45 22 15 - 2017/18 Actual $000 274 115 50 27 71 9 2 - 85 Part Three: What we do - Annual Report 2017/18 86 Part Three: What we do - Annual Report 2017/18 Funding impactstatement for the year ended 30 June 2018 Strategy andEngagement Term Plan 2016/17 budget ($000 Long 4,704 3,948 3,883 2,507 (140) 1,020 (821) 1,341 608 880 148 821 59 59 35 ------2016/17 Actual ($000 (1,870) 4,866 5,035 2,508 6,685 4,797 3,967 (916) 5,951 3,881 1,349 1,136 445 372 916 169 24 13 ------Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Capital expenditure funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt contributions Development andfinancial expenditure and grants-Subsidies for capital Sourcesfunding- ofcapital funding (A−B) Surplus (deficit) of operating funding (B) Totalapplications ofoperating Other operating fundingapplications applied Internal chargesand overheads Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Total operating funding(A) infringement fees, and other receipts Local authoritiesfueltax, fines, recovered Internal chargesand overheads Feesand charges purposes and grantsSubsidies for operating Targeted rates general charges, rates penalties General rates, uniform annual Sources ofoperatingfunding Funding balance ((A−B)+(CD)) (C −D) Surplus (deficit) of capitalfunding (D) Totalfunding applications ofcapital Increase (decrease) of investments Term Plan 2017/18 budget $000 Long 4,946 3,964 4,024 (982) (279) 1,409 1,399 2,521 1,130 982 774 148 148 148 44 ------2017/18 Actual $000 (4,484) (5,732) (5,392) (5,753) (1,248) 4,076 4,280 5,324 2,576 1,500 1,248 590 694 454 214 21 ------Internal interest charges allocated to thisactivity were higher due to the delay in capital spending. The opening balance of debt islower thanbudgeted intheLTP Central Government following legislation from July 2017. The Rural Fire activitymoved from the control of Councilto borrowing.internal budgeted due to areduced surplus of fundsavailable for Internal interest allocated to thisactivity was lower than the year.during has resulted inahigherlevel of cash investments beingheld activity ishigherthanbudgeted asthe delay in capital projects Income from Council-wide investments allocated to this activity, andare notbudgeted for. Rates penaltiesreceived for the year are credited to this loan that matured inDecember 2017. Available cash investments were utilisedto repay a$5million system will happeninthenext financial year. happened andaplannedupgrade of Council's telephone Budgeted plantandIT equipment purchases have not available cash, was notrequired to berefinanced asbudgeted. A $5millionloanmatured inDecember 2017 and due to overheads are allocated. budgetedincreasetothe in operating due coststhe onwhich requirements. Overhead costs for thisactivityare higherthan as cash was available internally to meet capital funding than budgeted, but offset by lower external finance costs Explanation of key variances to theLong Term Planbudget Roading Significant effects negative effects of Roading are identifiedbelow, along with how weplan tomanageandmaintainthem. Our activitieshave thepotential to have bothpositive andnegative effects onthe community. The significant Why weactivities these do Our projects from thelast twelve months Key projects undertaken inthelast twelve monthsare outlined below. What we do and protect the existing roading network. As aresult our first priorityis to maintain, operate entireroading network as oneofourcore activities. We planto continue to own, control andmanage our employment opportunities. provides people with social, cultural, recreational and enables businesses to access resources/markets and and essentialservices,people witheachother The roading network linksareas and connects managed by theNew Zealand Transport Agency. and Whitaker/Kenrick Streets inTe Aroha, which are Firth Street inMatamata, AllenStreet inMorrinsville district except for state highways, Broadway and 52km of unsealedroads. This isalltheroads inthe within the district, including946km of sealedand We own andmaintain998kilometres of localroads Total key capital projects (Includinginflation) Total key capital projects LED project New street lighting New footpath New kerb and channel Seal widening Minor improvements Cycleway extension Te Aroha - Matamata Capital projects can conflict with other forms oftraffic. The particularneeds of pedestrians and cyclists injuredor roads on eachyear. control) and cause anumber of peopleto bekilled crashes (particularlythosethat involve loss of Roadand environment factors cancontributeto significant andproductive land. Roading developmentimpact onculturally can Significant negative effects of ouractivities this project is well underway andphysical work isscheduledto occur in2018/19. will alsohelppromote cycling. This project hasbeenfunded over multiple years. Planningfor Extending an existing tourist attraction to help encourage visitors to stay inthe district. This Whathave webeen doing? by Counciland85%by NZTA). Change our existing street lightsto LEDlightsfor energy efficiency (this project isfunded15% Extend andupgrade our existing street lightingin our urbanareas Extending the existing footpath network in our urbanareas Extending the existing footpath to network in our urbanareas Widening of existing roads to meet district planrequirement for road width. sight visibilityetc. A mixture of safety improvements, traffic calmingmeasures, guard railing, improvement to

Strategy. These are designed to promote environment for pedestrians and cyclists. We are have implemented anumber of therecommendations of our Walking andCycling maximise fundingfor minorimprovement works to helpreduce road accidents in our district. deaths andinjuries. We will undertake crash reduction studies androute securityprojects and the percentage of accidents caused by loss of control andthepercentage of allroad related The New Zealand Transport Agency monitors andrecords through theCrash Analysis System Resource ManagementAct1991. for allprojects outside the existing road reserve. We will comply with therequirements of the We track andrecord allthe consultation procedures andresults for each affected Maori/Iwi How we have mitigated the effects District Road Budget $000 2,000 3,089 3,235 659 160 160 2017/18 55 55 - Actual $000 1,953 860 663 156 153 91 12 87 Part Three: What we do - Annual Report 2017/18 88 Part Three: What we do - Annual Report 2017/18 * These are mandatory performance measures that have beenintroduced for all councils around New Zealand. What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of service Level of manner. in atimely requests service to customer will respond network and roading a reliable provide We will and comfort. smoothness to provide developed and is maintained network that roading provide a We will users. is safe for all network that roading provide a We will the district. throughout network transport affordable and accessible provide an We will plan.* specified inthelong term to within thetimeframe that Councilresponds roads andfootpaths requests relating to customer service Thepercentage of long term plan).* annual worksprogram or asset managementplan, activity managementplan, (such as our annualplan, relevantin our documents of footpaths that isset out standard for the condition levelservice service of or district that fall within the footpaths withinour Thepercentage of that isresurfaced.* sealed localroad network The percentage of the exposure.* by smoothtravel road network, measured local sealed ride onour Theaverage qualityof number).* network, (expressed asa crashes on thelocalroad and seriousinjury the number of fatalities previous financial year in The change from the term. maintained for thelong roading network is well who believe that the Percentage ofcustomers performance How wemeasure measure measure measure measure measure measure New New New New New New 2014/15 timeframes non-urgent 2014/156 - Increase of responded measured or serious 12 serious of urgent 100% (11) assigned and 90% to within requests previous (2015/16 - 18fatal crashes) crashes, roading roading (714) of (714) request crashes or fatal serious fatal or 9.52% Actual were from year 98% Not 61% 2015/16 five working non-urgent Increase of Survey not responded responded conducted confirmed or serious Transport 88.14% of 6 serious crashes - - 24 fatal to within to within requests requests Agencry previous (2016/17 working (NZTA). Zealand 100% of by New crashes or fatal urgent from days 8.7% year 99% 59% one day 2016/17 – based off of crash 2016/17.There were 95% or more95% or within (CAS) interim(CAS) data. less fatal or serious within oneworking within oneworking within five working within five working completed in17/18 crashes in2017/18 from theprevious 19 fatal or serious on Councilroads Twoless crashes urgent requests urgent requests analysis system 100% of urgent100% of 97.84%non- of the acceptable (2017/1821 or - levelservice of serious or fatalserious or fatalserious or 90% of urgent90% of Decrease5 of responded to responded to responded to responded to 8.5% or more8.5% or crashes from requests (15) year that are 97%more or 90% of non- 90% of Survey not requests crashes) 2017/18 Actual Actual Actual Actual Actual Actual Target 99.3% 9.95% days days 63% 75% day day p p p p X Achieved This ismeasured by asmoothtravel confirmed finalfigure of 24. actual hasbeenupdated with the is not confirmed untillate 2018. 2016/17 System (CAS)upto 30 June 2018, data NZ Transport Agency Crash Analysis is based on interim data available from from theprevious year. 2017/18 actual decrease of five serious or fatal crashes road network in2017/18. This isa fatalserious or crasheslocal onour fatalserious or crashes.There were19 Our target for 2017/18 was 21 or less of theroads andtrucks on theroad. maintenance, general conditionsome of given for dissatisfaction includedlack of 3% were very dissatisfied. Reasons dissatisfied. 8% were dissatisfied and further 26% were neithersatisfied nor satisfied and50% were satisfied. A respondents13% of 2017 were very satisfaction4% whencomparedto This year’s results saw anincrease of Customer Survey. This ismeasured by theAnnual Additional information berms andpotholes. were road floodings, blocked culverts, within five working days. The mainissues requests, of these861 were responded to We received 880non-urgent roading be determined asurgent. completely impassable for therequest to The road, street or footpath must be respondedto withinoneworking day. fewer than theprevious year, all were urgent roading requests which is36 We received 15 complaints regarding others can take timeto work through. resolvedcomplaintsbe can quickly; within appropriate timeframes. Some We aimto investigate customer requests survey isscheduledfor June 2019. completed every two years andthenext was completed in June 2017, thisis grade 3. Our most recent assessment 95% of footpaths shallbe grade 1to service standard setby Councilisthat acceptable level of service. The level of fair) are considered to fall within the condition). Ratings 1to 3(excellent to (excellent condition) to 5(very poor Footpaths are given a grade from 1 our footpaths. This ismeasured by anassessment of This isanincrease of 1.3% on last year. (9.95%) hasbeenresurfaced in2017/18 local road network. Of these, 94.2km We have 946.4km of sealedroads in our This ismeasured by our internal records. provide smoothness and comfort. Well maintainedroads andfootpaths undertaken in2019/20. a result of 99.3%. The survey will next be Survey was completed2017 with July in everytwo years. exposure analysis that is conducted

Funding impactstatement for the year ended 30 June 2018 Roading TermPlan 2016/17 budget $000 Long (3,151) 5,093 8,244 6,636 3,069 5,650 (669) 2,544 9,787 6,272 1,862 3,102 5,781 3,151 590 734 235 252 146 129 63 ------2016/17 Actual $000 (2,425) 6,208 2,425 5,037 3,495 6,749 7,462 5,770 5,702 1,400 2,652 1,254 9,174 238 170 142 412 812 167 ------Subsidies and grantsSubsidies for capitalexpenditure Sourcesfunding ofcapital B) Surplus (deficit) of operating funding(A− Total applications of operating funding(B) Other operating fundingapplications Internal chargesand overheads applied Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Total operating funding(A) fees, and other receipts Local authoritiesfueltax, fines, infringement Internal chargesand overheads recovered Feesand charges Subsidies and grants for operating purposes Targeted rates charges, rates penalties General rates, uniform annual general Sources ofoperatingfunding Funding balance ((A−B) +(C− D)) Surplus (deficit) of capital funding(C− D) Total applications of capital funding(D) Increase (decrease) of investments Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Capital expenditure funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt Development andfinancial contributions Term Plan 2017/18 budget $000 Long (3,358) 10,284 (1,752) 6,009 6,926 6,699 2,607 3,358 7,492 5,792 4,134 3,155 3,171 590 303 847 831 147 241 132 64 ------2017/18 Actual $000 (2,325) 9,564 5,784 2,325 2,556 7,239 8,109 1,205 6,219 1,926 5,881 4,141 6,131 943 244 438 367 415 178 52 ------which the overheads are allocated. budgetedincreasetothe in operating due costs on Overhead costs for thisactivityare higherthan internally to meet capital fundingrequirements. external finance costs as cash was available were higherthanbudgeted, but offset by lower Internal interest charges allocated to thisactivity programme, reducing overall finance costs. projected intheLTP due to the delay inthe capital Thelevel opening ofdebtwaslower than carried out this year compared to theLTP budget. Additional Asset Managementplanning work was available for internal borrowing. than budgeted due to areduced surplus of funds Internal interest allocated to thisactivity was lower reduced rate requirement. been approved by NZTAfor subsidy, resulting ina projects budgeted asunsubsidisedintheLTP have not eventuate to the extent budgeted. Capital The LTP includedaforecast for inflation that did budgeted intheLTP. approved by NZTA, compared to what was Additional capital subsidised work hasbeen project hasbeen delayed compared to theLTP. The timing of theTe Aroha to Matamata Cycleway spent $665,000 during theperiod. project was notbudgeted intheLTP andCouncilhas to abudgeted $2million. The streetlighting LED Te Aroha to Matamata rail trail project compared the LTP budget. Councilhasspent $152,000 on the Renewal projects were completed largely inline with budgeted to increase debt inthepriorfinancial year. Te Aroha to Matamata rail trail project that was compared to budget. This hasbeen offset by the the current year hasresulted inincrease in debt The LEDstreetlighting project approved during Thames Street, Morrinsville subdivisions. received inrespect of theMillerStreet, Te Aroha and residential subdivision. There were also contributions were from Parkwood MV Limited for theMorrinsville major development contributionsreceived this year was was significantlyhigherthanbudgeted. The Thelevel ofdevelopement contributionsreceived the LTP. the year which was notbudgeted for at thetime of recevied for theLEDstreetlighting project during $300,000 insubsidy. NZTAsubsidyhasbeen by NZTAfor subsidyat 51%bringinginanadditional renewal work that hassubsequentlybeenapproved The LTP budgetincludedsomeunsubsidised Explanation of key variances to theLong Term Plan budget 89 Part Three: What we do - Annual Report 2017/18 90 Part Three: What we do - Annual Report 2017/18 What we do Rubbish &Recycling effects ofrubbishand recycling are identifiedbelow, along with how weplan tomanageandmaintainthem. Our activities have the potential to have both positive and negative effects on the community. The significant negative environment or publichealth. and Te Aroha that are monitored undertheterms of theirresource consents to ensure they do not endanger the sustainability education to schoolsacross the district. We alsohave three closed landfills at Matamata, Morrinsville as operating three transfer stations located at Matamata, Morrinsville and Waihou. We provide waste minimisation and We currently provide kerbside rubbishandrecycling collection services to 9844properties across the district, as well Key projects undertaken inthelast twelve monthsare outlined below. Why weactivities these do and futureand generations. Managing this waste effectively and efficiently, and promoting waste minimisation protects our environment for current Our day to day lives generate alot of waste that must bemanagedfor thehealth of our community and our environment. Our projects from thelast twelve months Significant effects What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of options. management sustainable waste by providing more disposal to landfill minimise waste residents to We willencourage the community. will beavailable to collection services refuse andrecycling Reliable kerbside stations. and transfer and rural townships services to urban recycling collection kerbside refuse and Weprovide will Levelservice of Total key operational projects (includinginflation) Total key operational projects activities Waste minimisation education projects Rubbish andRecycling Operational projects in wasteminimisation. due to lack of community participation Increase inrubbish disposed to landfill facilities. toincreaseddue costusing waste of People dumping rubbishillegally activities Significant negative effects of our collection service. kerbside recycling station and from thetransfer composted) (recycled or waste diverted Proportion of day. usual collection collectedthe on and recycling not kerbside refuse complaints about Number of stations. and transfer collection services and recycling and refuse with kerbside very satisfied satisfied/ Percentage performance How wemeasure General Waste minimisation activities Education programmes inschools Whathave webeen doing?

collected by thekerbside collection. In2017/18 we diverted 51.60% Wheelie bins were introduced for recycling in2013, which increased the volume of recycling that could be We provide community education on thebenefits of recycling. We willprovide free drop off for recycling. to ensurepricesare our competitive. We have competitively tendered contracts and we ensure the efficient management of facilitiesandservices How we have mitigated the effects average month 19 on 47% 73% per 2014/15 average Actual month 17 on 80% 48% per 2015/16 average 45.77% 15.8 on month 82% per 2016/17 45% or more45% or of 10.7 complaints on average per the totalthe waste complaints on diverted from very satisfied 80% or more80% or average per satisfied or the landfill 20 or less20 or 2017/18 Actual Actual Actual month month Target 51.6% 80% p p p Achieved sustainably. of waste going to landfill, helping our community to act By encouragingrecycling we candecreaseamount the recyclables. weighbridge quantities of kerbside andtransfer station This ismeasured through our records of monthly collected thenext day. complaints permonth. The majority of these were the usual day for 2017/18. This equates to 10.7 rubbish andrecycling notbeing collected on appropriately. There were 128 complaints about torecyclepeople and disposeofwaste Making sure our services are reliable encourages Management system. This ismeasured through our Customer Request collection. for dissatisfaction wasinconsistent kerbside said they were very dissatisfied. The main reason of respondents saidthey were dissatisfied and2% satisfied nor dissatisfied and7% didn’tknow. 3% and 30% were satisfied. Afurther8% were neither In 2018 50% of respondents were very satisfied Survey. This ismeasured through our AnnualCustomer Additional information

of allrubbishandrecycling from landfills.

Budget $000 110 114 95 2017/18 15 Actual $000 84 74 10 Funding impactstatement for the year ended 30 June 2018 Rubbish andRecycling Term Plan 2016/17 budget $000 Long 2,090 2,372 1,330 2,321 (51) 467 227 481 (2) (2) 49 94 42 51 4 7 ------2016/17 Actual $000 2,372 2,410 1,303 2,176 (38) 460 497 215 94 38 41 41 19 18 3 3 ------Sources ofoperatingfunding Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt Development andfinancial contributions and grantsSubsidies for capitalexpenditure Sourcesfunding ofcapital − B) Surplus (deficit) of operating funding(A Total applications of operating funding(B) Other operating fundingapplications Internal chargesand overheads applied Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Total operating funding(A) fees, and other receipts Local authoritiesfueltax, fines, infringement Internal chargesand overheads recovered Feesand charges Subsidies and grants for operating purposes Targeted rates charges, rates penalties General rates, uniform annual general Funding balance ((A−B)+(CD)) Surplus (deficit) of capitalfunding(C− D) Total applications of capital funding(D) Increase (decrease) of investments Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Capital expenditure funding Applications ofcapital Term Plan 2017/18 budget $000 Long 2,430 2,376 2,140 1,362 (54) 493 479 231 (2) (2) 44 54 96 52 8 5 ------2017/18 Actual $000 2,474 2,333 2,074 1,299 (141) (141) (141) 584 458 235 130 141 24 3 ------that budgeted intheLTP. Transfer station fees were increased compared to not eventuate to the extent budgeted. The LTP includedaforecast for inflation that did not eventuate to the extent budgeted. The LTP includedaforecast for inflation that did Explanation of key variances to theLong Term Plan budget 91 Part Three: What we do - Annual Report 2017/18 92 Part Three: What we do - Annual Report 2017/18 Stormwater stormwater is well managed, and work with property owners to improve stormwater andreduce flooding. Stormwater systems safely and efficiently drain surface water tominimiseflooding in our communities. Weaim to ensure effects of stormwater are identifiedbelow, along with how Councilplans tomanageandmaintainthem. Our activitieshave thepotential to have bothpositive andnegative effects onthe community. The significantnegative Significant effects Why weactivities these do What we do Key projects undertaken inthelast twelve monthsare outlined below. required. maintenance andrepair work. We have renewal strategies to allow for theprogressive replacement of assets asthey are the drainage system (streams andrivers). Maintainingall of our assets involves undertakingscheduledandunscheduled condition. We also work collaboratively with Waikato Regional Councilasthey also own, manageandmaintainparts of and staff to respond to storm events andimplementmaintenance programs to ensure our systems remain in good . These systems includeamix of pipes, open channels and drains. We work to ensure there are adequate services We currently have stormwater drainage systems inMatamata, Morrinsville, Te Aroha, Waharoa andalimited system in Our projects from thelast twelve months pollute ourenvironment. waterways andlakes without treatment can Discharge ofcontaminatedstormwater into property. will leadto flooding, which canaffect life and Poor management of thestormwater system (including inflation) Total key capital projects Total key capital projects existing stormwater network Increasethe capacityof Capital projects Significant negative effects of ouractivities

Whathave webeen doing? mainly theinstallation of soakholes. To complete some work to increase the existing stormwater network where feasible. This work is

How we have mitigated the effects environmental monitoring programme. and disposal.We have compliedWaikato with RegionalCouncil consent an conditionsand carriedout We continue to work on thelongterm reduction of stormwater through theuse of on-site storage we purchased additionallandinMorrinsville for thepurpose of stormwater management. and effectively. We have emergency plans in place to respond to flooding. In the 2016/17 financial year We continually monitor the effects ofany floodand assess the practicalities ofmitigating it efficiently Budget $000 100 100 105 2017/18 Actual $000 4 4 ** These are mandatory performance measures that have beenintroduced for all councils around New Zealand. include ancillarystructure suchasstandalone garden sheds or garages). * Aflooding event is definedasan overflow of stormwater fromCouncil’s stormwater system that enters ahabitablefloor(the ofabuildingincludingbasement, not butdoes Levelsservice of What you canexpecthowand youknow will weare meeting your expectations. minimise harm. of protection to an appropriate level system that provides effective stormwater We will have an Levelservice of system. of thestormwater overall performance satisfied withthe Residentsbe will a timelymanner. from our residents in requests for service and will respond to stormwater systems We will have reliable waterways. discharging into contaminates from stormwater the environment Weprotect will system).** connected to our stormwater (expressed per1,000 properties of our stormwater system, received abouttheperformance Thenumber ofcomplaints we site.** that service personnelreach the receive notification to thetime measured from thetimethat we to attend aflooding event*, The medianresponse time to thoseresource consents).** convictions, received inrelation enforcement orders, and notices, infringementnotices, by thenumber of: abatement stormwater system, (measured consentsfor dischargefrom our Complianceresource withour stormwater system.)** properties connectedto our affected. (Expressed per1,000 number of habitablefloors For each flooding event, the that occurin ourdistrict. The number of flooding events* How we measure performance

New measure New measure New measure New measure 2014/15 Zero

Total of 9 complaints 0 hours 0 flooding events 0 habitable floors affected Actual 2015/16 Zero Median 1 hour 13.5 101 complaints 1 flooding events 2 habitable floors affected 2016/17 minutes 1,000 connections 0 habitablefloors 0 flooding events Median: 24 hours Median 1hour48 1 habitablefloors 4 complaintsper 1 flooding events per year (32in 40 complaints affected affected minutes 2017/18 Actual Actual Actual Actual Target total) Zero Zero p p X X Achieved Request Managementsystem. This ismeasured by our Customer appropriate standard. The quality and quantity must meetthe treated stormwater into the environment. Our stormwater system discharges This ismeasured by our internal records. call. 1 hourand48minutes after receiving the occurs. Councilstaff were in attendance response from Council when flooding People have therightto expect aprompt in 2017/18.* one habitable floor affected in our district There hasbeen one flooding event with flooding in oururbanareas. Our stormwater network helpsto prevent Request Managementsystem. This ismeasured by our Customer Additional information heavy rainfall. abnormally periods of logged during buldings.these callswereThemajority of complaints aboutflooding ofhabitable of our stormwater system, they are not complaints relate to theperformance Request Managementsystem. These measured through our Customer about our storm water network is Thenumber ofcomplaints werecieve impacts) when itrains. its potential healthandsocial wellbeing property will besafe from flooding(and People have therightto expect that their

93 Part Three: What we do - Annual Report 2017/18 94 Part Three: What we do - Annual Report 2017/18 Funding impactstatement for the year ending 30 June 2018 Stormwater Term Plan 2016/17 budget $000 Long (605) 1,202 (50) (26) 605 934 270 597 579 477 144 102 183 152 24 38 78 ------2016/17 Actual $000 (690) (583) (518) 1,081 690 856 140 391 172 176 181 46 34 65 85 47 79 ------Funding balance ((A −B)+(CD)) (B) Totalapplications ofoperating funding Other operating fundingapplications Internal chargesand overheads applied Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Total operating funding(A) infringement fees, and other receipts Local authoritiesfueltax, fines, Internal chargesand overheads recovered Feesand charges purposes and grantsSubsidies for operating Targeted rates charges, rates penalties General rates, uniform annual general Sources ofoperatingfunding expenditure and grantsSubsidies for capital Sourcesfunding ofcapital (A −B) Surplus (deficit) of operating funding − D) Surplus (deficit) of capitalfunding (C Total applications of capital funding(D) Increase (decrease) of investments Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Capital expenditure funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt Development andfinancial contributions em Plan Term 2017/18 budget $000 Long 1,234 (618) (56) (32) 970 586 276 616 105 618 148 481 158 192 68 24 38 ------2017/18 Actual $000 (594) (625) 1,030 (761) 405 625 237 801 168 167 131 98 31 31 ------finance costs. to the delay inthe capital programme, reducing overall Debt raised was lower thanprojected intheLTP due period compared to budget. Moremaintenance work wasundertaken the during borrowing.internal budgeted due to ahighersurplus of fundsavailable for Internal interest allocated to thisactivity was higherthan in Morrinsville that hasnotprogressed to date. developers inrelation to aplannedstorm water project The LTP budgetincludedaforecast for receoveries from stormwater were notrequired at thelevel planned. LTP hasnot yet progressed, therefore targeted rates for A stormwater project plannedfor Morrinsville inthe eventuate to the extent budgeted. The LTP includedaforecast for inflation that didnot were reduced. the delay inthe capital programme, andinternal loans Debt raised was lower thanprojected intheLTP due to due to the delay inthe capital programme. Internal interest cost are lower thanbudgeted intheLTP rather thanreserves for thisactivity. Funding was appliedto thereduction of Internal loans Rata Street renewal work isnotbudgeted for started this year butnot completed A stormwater project budgeted for SpurStreet was Morrinsville subdivisions. respect of theMillerStreet, Te Aroha and Thames Street, subdivision. There were also contributions received in Parkwood MV Limited for theMorrinsville residential development contributionsreceived this year werefrom was significantlyhigherthanbudgeted. The major Thelevel ofdevelopement contributionsreceived was Explanation of key variances to theLong Term Plan budget Council plansto manageandmaintainthem. effects of wastewater are identifiedbelow, along with how negative effects onthe community. The significantnegative Our activitieshave thepotential to have bothpositive and costprocessing of their own waste. wastewater isregulated through tradewaste agreements and our Tradewaste Bylaw which ensure companies pay for the Approximately 50% of the wastewater treated inMorrinsville isfrom localindustry. Industrial and commercial Morrinsville treatment plantalsotreats and disposes of rural septictank waste. and Raungaiti), Morrinsville (whichalsotreats wastewater from Rukumoana), Te Aroha, Tahuna and Waihou. The We own and operate wastewater treatment plants(WWTP) inMatamata (whichalsotreats wastewater from Waharoa What we do Why weactivities these do Wastewater Significant effects of ourcommunityand ourenvironment. We aimto ensure wastewater is well managedfor the wellbeing waterways or to land. important asafter wastewater istreated itis discharged into and disposed of appropriately. The treatment isparticularly the grey waterthat goesdown your drains)is collected, treated Our wastewater services ensure that wastewater (sewage and replace themembrane at theMatamata Plant was alsoundertaken. Key projects undertaken inthelast twelve monthsare outlined below. One majorrenewal project costing $656,000 to Our projects from thelast twelve months Total key capital projects (Includinginflation) Total key capital projects requirements Wastewater subdivisional renewed Upgraded pipesbeing identified by risk assessments Pump station H&S - as Tahuna WWTP flow meters Morrinsville generator Capital projects treatment plants. overflows andaffect the ongoing operation ofthe Teand Aroha wastewatersystems, whichcancause Stormwater isknown to enter boththeMorrinsville pollutethe environment risks. health orcause Overflows that discharge to land or water could risks. couldpollutethe environment health orcause Discharge of poorlytreated bio-solidsto land risks. couldpollutethe environment health orcause management ofourwastewaterPoor systems Significant negative effects of ouractivities Subdivisional demands sizes of pipesasthey are replaced. This does not refer to specific pipesthisjust refers to pipe replacement in general. Increasing Health andSafety issues addressed. in operationstreatments onwhat touse. overflow tanks. This information isnecessary for plant designand to make informed decisions Tahuna does nothave flow meter that records inflow into theplant orthe diversion tothe Install generators at key locations Whathave webeen doing?

and theinstigation of anintegrated renewals strategy. reduction strategies includetheuse of smoke testing, on-going property inspectionprogrammes We are tryingto reduce theamount of stormwater entering our wastewater system. These storage requirements. reported. Our renewals strategy incorporates investigation of flows, standby generators and We have resolved any overflows from pump stations withinashortspace oftimefrom itbeing We have implemented bio-solidsmanagement with wastewater treatment plantupgrades. protectthe environmentand wellbeing health the ofourcommunity.and We have complied with our resource consents for all wastewater treatment plant discharges to How we have mitigated the effects Wastewater treatment plant Budget $000 238 227 100 2017/18 30 50 35 12 Actual $000 94 97 3 - - - 95 Part Three: What we do - Annual Report 2017/18 96 Part Three: What we do - Annual Report 2017/18 What you canexpecthowand youknow will weare meeting your expectations. * These are mandatory performance measures that have beenintroduced for all councils around New Zealand Levelsservice of We will protection. level of appropriate provides an system that wastewater an effective Wehave will service Level of manner. in atimely residents form our for service to requests will respond systems and wastewater reliable Wehave will environment. to our discharged before being treated is properly wastewater our by ensuring environment protect the notices; infringement the number of: abatement wastewater (measured by dischargefrom our resource consentsfor Compliance withour system).* yearto ourwastewater 1,000 connectionsper system, (expressed per from ourwastewater weather sewage overflows Thenumber ofdry performance How wemeasure • • • • following: Council aboutany of the complaints received by The total number of blockagefault*. orother confirm resolution ofthe that service personnel notification to thetime the timethat we receive Resolution time:from reach thesite.* that service personnel notification to thetime the timethat we receive Attendance time: from our wastewater system, we will measure thefollowing medianresponse times: Where we attend to sewage overflows resulting from ablockage or other fault in resourcethose cons received inrelation to orders,and convictions, notices; enforcement connectionsper year).* (expressed as1,000 wastewater system toissues withour Council’s response blockages wastewater system faults wastewater system sewage odour e nts).*

New measure New measure New measure New measure New measure Actual 2014/15

17 complaints 3 complaints Median: 2 hours and 29 Median: 40 1 complaint total 3 complaints total Zero 7 complaints 2015/16 total total minutes minutes

22 complaints 36 complaints 4 complaints Median: 19 hours and 36 1 complaint total 24.5 minutes Zero 7 complaints 2016/17 total total total minutes Wastewater system blockages 26.99 hours(1619.4 minutes) 8 per1,000 connections (64 4 per1,000 connections (32 with ourwastewatersystem Council’s response to issues 2 per1,000 connections (16 2 per1,000 connections (16 1 per1,000 connections per Wastewater system faults One complainttotal 29 complaintstotal 8 complaintstotal Median: 24 hours Median: 4hours Sewage odour 25.8mintues year (8total) 7 complaints 7 complaints 2017/18 Actual Actual Actual Actual Actual Actual Actual Actual Target total) total) total) total) Zero Zero Achieved p p p X serious asthey present animmediate Overflows into dwellings are themost and mitigated where practical. these events are recorded, reviewed that the community isaware of thisand Overflows can occur. Itisimportant Request Managementsystem. This ismeasured by our Customer the year’son compliance. consents andprovides anassessment Regional Councilmonitors our resource wastewateris discharged. Waikato is minimisedbefore thetreated number ofcontaminantsthe means Properlytreating wastewater records. This ismeasured by our internal hour period. rain hasfallen during a continuous 24 applies to days when less than1mm of during dryweather.Dry weather sewage overflows into the environment We received 7 complaints about Request Managementsystem. This ismeasured by our Customer Additional information categories. We achieved our target inallfour wastewater. risk of infectious diseases spread by community isprotected from the Wastewaterservices ensure our Request Managementsystem. This ismeasured by our Customer 59 minutes. target resolution timeby 2hoursand This year we have failed to meet our take longerthan others to fullyresolve. and 59 minutes. Some overflows do a medianresolution time of 26hours forthese callswasminutes 25.8 with weather. The medianattendance time 7 complaints occurring duringdry wastewater overflow complaints with In 2017/18 we received 18total wastewater overflows. we respond quickly to calls about danger to health. Itisimportantthat Wastewater Funding impactstatement for the year ending 30 June 2018 Term Plan 2016/17 budget $000 Long (2,681) 2,944 6,394 7,098 2,593 4,417 2,681 1,524 (271) (88) 790 643 686 683 352 112 61 31 71 ------2016/17 Actual $000 (3,226) (1,969) (1,757) 3,226 1,469 3,971 3,013 6,316 7,197 264 433 952 253 525 722 159 135 77 ------Sourcesfunding ofcapital − B) Surplus (deficit) of operating funding(A Total applications of operating funding(B) Other operating fundingapplications Internal chargesand overheads applied Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Total operating funding(A) infringement fees, and other receipts Local authoritiesfueltax, fines, Internal chargesand overheads recovered Feesand charges purposes and grantsSubsidies for operating Targeted rates charges, rates penalties General rates, uniform annual general Sources ofoperatingfunding Funding balance ((A −B)+(CD)) Surplus (deficit) of capitalfunding (C− D) Total applications of capital funding(D) Increase (decrease) of investments Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Capital expenditure funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt Development andfinancial contributions expenditure and grantsSubsidies for capital Term Plan 2017/18 budget $000 Long (2,838) 2,645 4,547 (308) 3,036 6,665 2,838 1,060 7,385 (193) 1,347 808 659 703 207 115 61 31 ------2017/18 Actual $000 (2,595) (3,213) (3,144) 3,043 3,992 7,205 6,229 3,213 408 549 425 524 763 210 618 213 ------below), andinternal interest rates were lower, reducing to the delay inthe capital programme (as detailed Debt raised was lower thanprojected intheLTP due available for internal borrowing. than budgeted due to ahighersurplus of funds Internal interest allocated to thisactivity was higher industrialtrade waste. Higher income due to anincrease inthe volume of years. budgeted due to the delayed capital spendinprevious the LTP as debt andinterest costs are lower than The amount of targeted rates hasreduced from rather thanreserves for thisactivity. Funding was appliedto thereduction of Internal loans year compared to thelevel budgeted. Reticulation renewal work hasbeen delayed during the internal debt more thanthelevel budgeted. Surplus operating funding was appliedto reduce the Thames Street, Morrinsville subdivisions. received inrespect of theMillerStreet, Te Aroha and residential subdivision. There were also contributions from Parkwood MV Limited for theMorrinsville development contributionsreceived this year were was significantlyhigherthanbudgeted. The major Thelevel ofdevelopment contributionsreceived programme. the LTP due to the delay inthe capital andrenewal Internal interest costs are lower thanbudgeted in overall finance costs. Explanation of key variances to theLong Term Plan budget 97 Part Three: What we do - Annual Report 2017/18 98 Part Three: What we do - Annual Report 2017/18 Key projects undertaken inthelast twelve monthsare outlined below. Our projects from thelast twelve months Why weactivities these do Water What we do as water mains) andrenew them when necessary. programmes inplace to ensure our systems remain in good condition. We alsomonitor thelifecycles of our assets (such and training staff to respond rapidly inthe event ofaproblem. We have corrective and preventative maintenance hours a day, seven days a week, which means operating andmaintaining equipment, machineryand backup facilities, Morrinsville, Te Aroha andfour smallschemesinTe Poi, Tahuna, Hinuera andTe Aroha West. We provide water 24 We own and operate seven water supplyschemesinthe district - inMatamata (including Waharoa andRaungaiti), wellbeingresidents. ofour TheWater activity ensures ourcommunitiesare supplied withclean, safe drinkingwatertoand ensurehealth the effects of water are identifiedbelow, along with how Councilplans tomanageandmaintainthem. Our activitieshave thepotential to have bothpositive andnegative effects onthe community. The significantnegative Significant effects Total key capital projects (includinginflation) Total key capital projects Mount MiseryReservoir Matamata reticulation Subdivisional requirements Capital projects KVS staff inspectinga waterpipe could impact on the waycouldimpact on weuse water.all and competitionformanagement of Poor water could pollute the environment. management ofourwaterPoor treatment plants Significant negative effects of ouractivities Mount MiseryReservoir project, see description above undersignificant effects Upgrade 990m undersized subdivisional demands Whathave webeen doing?

summer with signsandnewspaper articlesto raise awareness about water conservation. sufficient water levels in our reservoirs. We ran a water conservation education campaign during 3400m3 to 83000m3. Water restrictions were notrequired during thesummer of 2017/18 due to constructed anew reservoir inMorrinsville, doubling the capacity of theMtMiseryReseroir from We have implemented water reduction/efficiency strategies to conserve water. Inaddition we have resource consent conditions andreceived zero abatement notices in2016/17. Our water treatment plantsare well maintainedandmanaged; we have complied with all our How we have mitigated the effects Budget $000 40 30 42 10 2017/18 - Actual $000 366 376 10 - cryptosporidium) could survive ifthey were present. These conditions may occur for a variety of reasons. Aslongasthe standards usearisk-based approach. The references are for conditions when the organisms (protozoa e.g. giardia or This does notindicate thepresence of harmful organisms inthe water suppliedto thereticulated network. The identified, andsolutionsproposed. improve therobustness of our system to avoid thisproblem reoccurring. Progress hasbeen good with several causes software upgrades happening. We are presently conducting furtherinvestigation on why this occurs andhow we can caused turbidityinthefinal water. The cause ofthemissing minutes canbe attributed to computer shutting down and Morrinsville andMatamata plants due to missing minutes of data aspart of our continuous monitoring and events that Part 5Protozoa Compliance: We are likely to achieve full compliance for Te Aroha but were non-compliant for undertaking animprovement planare examples of this. Drinking Water Standards for New Zealand (DWSNZ). UsingUV light disinfection, reviewing compliance data and transferred. Matamata-Piako District Council(MPDC)are takingaproactive stance towards full compliance with the E-coli are present inthe environment and care must betaken when obtaining samplesasmicrobes are very easily mg/L of free available chlorine (FAC)ismaintainedinthe distribution system, E-coli israrely found. concentrations can be depleted relatively quickly, sofree available chlorine residuals are measured, andifmore than0.2 leaving the water treatment plant or inthe distribution zones. Chemical disinfectants (Chlorine) are very reactive and E-coli isusedasanindicator organism for contamination of drinking-water. E-coli must notbepresent in drinking-water monitor water suppliesfor allpotential humanpathogens, sosurrogates are usedto indicate possible contamination Part 4Bacterial Compliance: Allplants were compliant for E-coli testing throughout the year. Itisimpracticable to Compliance with New Zealand Drinking Water Standards Levelsservice of is being developed and capital andrenewal projects will beprioritisedfor the2018/19 year. why minutes weren’t recorded. Further investigation into improving plant compliance isunderway. Animprovement plan disinfection unitsthroughout anumber of treatment plants, undertakingreviews of compliance data and determining are undertakingsignificant steps to increase compliance with DWSNZ. These steps includeinstallation ofUV light no record to prove the effectiveness of ourfiltration process fortheperiod relating tothemissing sample data. MPDC data integrity from the online turbiditymeters. This meantthat somesample data was lost or corrupted, and we have to each filter at all our water treatment facilities. Attimes during2017/18 we experienced some difficulties with our process of removing particulate matter from the water treatment process. We have an online turbiditymeter attached (filtration). Turbidity isameasure ofhow cloudythe water isandmeasured to prove the effectiveness ofthefiltration Protozoa reproduce by means of a cyst or spore that isresistant to chemical attack somust bephysically removed Health Department. time isless thana certain period every monththesystem overall isacceptable. We report these“transgressions” to the * These are mandatory performance measures that have beenintroduced for all councils around New Zealand. What you canexpecthowand youknow will weare meeting your expectations. properties). use (serviced and business for household reliable water safe and Weprovide will Levelservice of with: drinking watersupply complies The extenttoCouncil’s which How we measure performance • • compliance criteria).* water standards (protozoal the drinking- 5 of part criteria); and standards(bacteria compliance the drinking-water4 of part

New measure 2014/15 Actual Not compliant 2015/16

Not compliant 2016/17 Not compliant Compliant 2017/18 Actual Target X Achieved explained below. not achieve compliance as Matamata andMorrinsville did Te Aroha achieved compliance. Assessor. independent Drinking-Water of compliance by the pending theassessment reported are provisional, The results for 2017/18 receiving. on the water quality they are communities can beinformed and delivery ofwaterthat so compliance for thesupply provides thisinformation on The Department of Health Additional information 99 Part Three: What we do - Annual Report 2017/18 100 Part Three: What we do - Annual Report 2017/18 * These are mandatory performance measures that have been introduced for all councils around New Zealand. count on. community can systemsthat our reliable water Weprovide will when required. and replaced are maintained that theassets managed and maintained and assetsare well that ourwater We willensure Levelservice of count on. community can systemsthat our reliable water Weprovide will minimum nightflow analysis). * reticulation system (using loss from Council’s networked Thepercentage real of water How we measure performance • • • • reticulation system, we will measure thefollowing medianresponse times: Where we attend a call-out inresponse to afault or unplannedinterruption to our networked reach thesite.* time that service personnel we receive notification to the call-outs: from thetimethat Attendance for non-urgent or interruption.* confirm resolution ofthe fault time that service personnel we receive notification to the call-outs: from thetimethat Resolutionnon-urgent of faultinterruption.* or confirm resolution ofthe time that service personnel receive notification to the outs: from thetimethat we Resolutionurgent of call- reach thesite.* time that service personnel receive notification to the outs: from thetimethat we Attendance for urgent call-

New measure New measure New measure New measure New measure 2014/15

21 hours and 15 5 hours and 17 2 hours and 9 Actual 44 minutes 24.91% (benchmark) 2015/16 minutes minutes minutes

3 hours and 12 4 working days 2 working days 25 minutes 20.61% 2016/17 minutes Median: 3 workingMedian: daysless or Median: 5 workingMedian: daysless or Median: 1hourand59 minutes Median: 24 hours or less Median: 2 workingMedian: days Median: 4hours or less Median: 1 workingMedian: day Median: 20minutes 2017/18 25.22% 24.91% Actual Actual Actual Actual Actual Target p p X Achieved 66 urgent66 about water. calls supply ofwater.We received people have a continuous respond quickly to make sure supply issues we needto If there are any unplanned Management system. our Customer Request This ismeasured by Morrinsville inMay 2018. during September 2017 and detection work inTe Aroha Weleak carriedout national average. which is a real water loss of 25.22%, is our ActivityManagementPlan The national average usedin guidelines. Department of Internal Affairs night flow analysis asperthe records usingtheminimum This ismeasured from internal Additional information working days. day, with aresolution time of 2 time for these was 1 working water. The medianattendance 380 non-urgent calls about supply ofwater.We received people have a continuous respond quickly to make sure supply issues we needto If there are any unplanned Management system. our Customer Request This ismeasured by hours and59 minutes. a medianresolution time of 1 for these was 20minutes with The medianattendance time

16%.

In 2017/18, we recorded

9.22% higherthanthe * These are mandatory performance measures that have beenintroduced for all councils around New Zealand. the future. adequately for are managed water assets Council’s properties). use (serviced and business for household reliable water provide safe and Council will Levelservice of residentthe district.* within drinking waterper day per Theaverage consumption of connectionsper year).* (expressed per1,000 • • • • • • the following: received by Councilaboutany of Thetotalnumber ofcomplaints How we measure performance these issues Council’s response to any of supply Continuity of flow Drinking waterpressure or Drinking water odour Drinking watertaste Drinking water clarity

New measure New measure 2014/15

Drinking water clarity: 17 complaints total Drinking water taste: 5 complaints total Actual 572 litres per urban resident per day (benchmark) Drinking water odour:0 complaints total Drinking water pressure or flow:24 complaints total 2015/16 Continuity of supply: 2 complaints total Council’s response to any of these issues: 1 complaint total

Drinking water clarity: 16 complaints total Drinking water taste: 3 complaints total Drinking water 462 litres odour: 6 complaints totalDrinking water pressure or flow: 32 complaints total Continuity of supply: 2016/17 5 complaints totalCouncil’s response to any of these issues: 0 complaints total 2 per1,000 people connected to 2 per1,000 people connected to 2 per1,000 people connected to Drinking water pressure or flow: Drinking water pressure or flow: 1 per1,000 people connected to 1 per1,000 people connected to 1 per1,000 people connected to 572 litres or less (bench mark) Council’s response to any of Council’s response to any of water supply(16total) water supply(16total) water supply(16total) Drinking water clarity: Drinking water clarity: Drinking water odour: Drinking water odour water supply(8total) water supply(8total) water supply(8total) Continuity of supply: Continuity of Continuity of supply: Continuity of Drinking watertaste: Drinking watertaste: 60 complaintstotal 38 complaintstotal 10 complaintstotal 0 complaintstotal 4 complaintstotal 5 complaintstotal these issues: these issues: 467 litres 2017/18 Actual Actual Target :

p X Achieved three working days. were allattended to within main waterlines. These calls were resolved by flushingthe these calls Themajority of November 2017. a Morrinsville water mainin calls occured after abreak to 60 water34 ofour clarity flow. and waterclarity pressure or failed to meet were for water is noted that thetargets we four of thesix categories. It We achieved our target for timeframes. assignedthe all callswithin responded to andinvestigated about thesameissue. Staff there weremultiple calls as one. Insomeinstances is countedindividual call Each Management system. our Customer Request This ismeasured by Additional information deducted from thisfigure. industry usagehasbeen urban resident per day, major consumption is467 usage. Adjusted average includes allindustry water 707 litres per day) 683 litres per day, (2016/17: the suppliedurbanareas is of water perresident in Totalaverage consumption calculated. drinking purposes cannot be water usedspecifically for to residential consumers and drinking water that issupplied consumption butitisnot only measures‘drinking water’ performancemeasure only when calculating this. The of Internal Affairs guidelines We have usedtheDepartment records. Measured by our internal

this

litres per 101 Part Three: What we do - Annual Report 2017/18 102 Part Three: What we do - Annual Report 2017/18 Funding impactstatement for the year ending 30 June 2018 Water Term Plan 2016/17 budget $000 Long (1,576) 5,050 4,960 2,086 3,328 3,474 1,560 1,659 1,576 1,752 2,318 (911) 546 593 610 43 93 47 ------2016/17 Actual $000 (2,175) 5,448 3,896 2,650 3,273 5,238 2,473 1,066 2,175 1,721 1,617 564 236 104 180 116 94 ------—to improve thelevel of service —to meetadditional demand Capital expenditure funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt contributions Development andfinancial expenditure and grantsSubsidies for capital Sourcesfunding ofcapital funding (A−B) Surplus (deficit) of operating funding (B) Totalapplications ofoperating Other operating fundingapplications applied Internal chargesand overheads Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Total operating funding(A) infringement fees, and other receipts Local authoritiesfueltax, fines, recovered Internal chargesand overheads Feesand charges purposes and grantsSubsidies for operating Targeted rates general charges, rates penalties General rates, uniform annual Sources ofoperatingfunding Funding balance ((A−B) +(C− D)) (C −D) Surplus (deficit) of capitalfunding (D) Totalfunding applications ofcapital Increase (decrease) of investments Increase (decrease) inreserves —to replace existing assets em Plan Term 2017/18 budget $000 Long (1,768) 5,460 3,692 5,383 1,650 1,768 (213) 1,332 2,515 (118) 558 276 619 43 34 42 95 ------2017/18 Actual $000 (1,375) 4,554 2,035 2,380 4,373 1,087 3,179 (216) 1,375 660 430 407 230 598 723 201 161 20 34 ------issues. during the year like theScott andSnellRoad’s water mains higher thanbudgeted due to more leakage andmajor events required to date. Offsetting this, water reticulation costs were Aroha water plant capacity upgrade, which hasnotbeen forecast to increase in17/18 asaresult of theplannedTe At thetimeLTP budget was set, operating costs were budget. Income from water tanker fillingsincreased compared to the period. reuslted inless metered water income thanbudgeted during industrial usershas developed their own supply, which has has notbeenrequired to date. Inaddition, one of our large capacity upgrade to theTe Aroha water plant. This upgrade from industry was forecast for 17/18 asaresult of aplanned In theLTP budget, anincrease inmetered water income reserves. Avaliable funding was appliedto capital spendingrather than forward from prior years. projects undertaken that had been budgeted and carried budgeted for inprior years. There were alsoa few other $326,000 spent on theMt. MiseryReservior this year was funding beingrequired thanbudgeted for inthis year. years were completedthis year, resultingmore in debt Some projects budgeted and carried forward from previous Aroha andThames Street, Morrinsville subdivisions. also contributions received inrespect of theMillerStreet, Te Limited for theMorrinsville residential subdivision. There were contributions received this year were from Parkwood MV significantly higherthanbudgeted. The major development Thelevel ofdevelopement contributionsreceived was was due to the delay in capital spending. The opening balance of debt islower thanbudgeted intheLTP Explanation of key variances to theLong Term Planbudget Significant effects Why weactivities these do What we do effects ofConsentsandLicensing are identifiedbelow, along with how weplan tomanageandmaintainthem. Our activitieshave thepotential to have bothpositive andnegative effects onthe community. The significantnegative meet. Legislation alsohasasignificantimpact ontheseactivities, asitsetsanumber oflegislative requirements that we must communities safe andhealthy, andbalancingthe different needsandinterests ofpeopleandbusinesses in our community. The ConsentsandLicensing activity group ensures we are protecting thenatural resources of the district, keeping our Enforcement andResource ConsentsandMonitoring. legislation. The activitiesresponsible for thisare AnimalControl, BuildingConsentsand Monitoring, Licensing and Consents andLicensing isabout carrying out our regulatory functionsthat we have an obligation to perform under Consents andLicensing making process. community inthe decision Failure to involve Iwiandthe environment. put usersat riskandharmthe add costsand to development, proceduresinspection candelay Poor consentingand decisions behaviour. community andariseinantisocial result insafety threats to our investigations of complaints could timelinessand of Poor quality legislative requirements. frompeople complying with processesapplication could deter The costlicences of and consent our activities Significant negative effects of

p p Animal Control Council activities

p p p Building Consents and monitoring

p p p Licensing and enforcement p p p p Resource consents and monitoring fees are fair. We reviewed our fees and charges to ensure they remain fair and We continue to review our operation to ensure that itis cost effective and How we have mitigated the effects involve themintheresource consent process. them to beinvolved in decision making. We have protocols inplace with Iwito Consulting with Iwithrough agreed processes increases the opportunities for good decisions. Auditing andpeerreview of our processes and decisions ensure we are making leading to improved services. Accreditation asa‘BuildingControl Authority’ ensures our processes are robust, our processes. We work withothercouncilsto collaboratebestpractice on and consistency in complytheir obligations. with We worked with stakeholders suchasthepolice, to ensure licence holders We completed staff training to ensure legislative requirements are understood. throughout the district for animal control. We completed 1,054 street patrols and visited more than700 properties complaints) andsettimeframes for responses to all complaints. We provide a24/7 service for our most timesensitive issues (animalandnoise equitable to our customers andratepayers. 103 Part Three: What we do - Annual Report 2017/18 104 Part Three: What we do - Annual Report 2017/18 Our projects from thelast twelve months What you canexpecthowand youknow will weare meeting your expectations. There were nomajorprojects during thelast twelve monthsfor AnimalControl. Reported incident Current incident Aggressive CRM Most complaints aboutanimal welfare andneglectare referred to theSPCAfor investigation. from barkingto aggressive behaviour. The AnimalControl Officers also respond to complaintsabout wandering stock. wandering dogs,providing ownersinformationpet carefollowing with on and up oncomplaintsabout dogs, ranging Control Officers centres ontheadministration oftheDogControl Act1996 - ensuringthat dogs are registered, catching have one dog poundandstock yard that services the whole district. The majority of work undertaken by theAnimal regulations and do not create problems for others. They provide a24 houra day, seven day a week service. We also We have two Animal Control Levelsservice of caused by disturbances Any service Level of animals. from stray streets free to keep the street patrols out regular We willcarry responsible. owners are ensure dog visits to property out regular We willcarry efficiently. quickly and and reported investigated will be animals Animal welfare Unregistered Wandering stock Wandering dog Barking dog Attackedanimal/bird other Attacked stock Aggressive dog Dog bite person Complaint type means our Customer Request Managementsystem meansrushedat theperson/vehicle or displaying threatening behaviour. meanstheincident ishappeningnow andthe dog isanimmediate danger to thepublic.

main towns. the three in eachof undertaken street patrols Number of year. visits per property Number of timeframes. within set investigated will be Complaints performance measure How we Animal Control Officers whosejobis tomake sure people control theiranimals, are meeting laws and anincidentisreported that happenedsometimeinthe past butisnota current threat to thepublic. Reported incident Current incident(on road) Reported incident Caught intrap Current incident Reported incident Current incident Over theaverage of 10 95.1% per monthtown 711 2014/15 Actual 96.2% 649 2015/16 93.6% 718 2016/17

per month per month visits per yearvisits Average10 of 600 property street patrols 706 property 29.3 average *Animal Control response times timeframes* 95% within (see table) adopted 2017/18 Actual Actual Actual Target visits town town CRM CRM CRM Phone CRM CRM Phone CRM Phone Notification type 87% p p X Achieved We responded to 87% of calls within settimeframes (737/847). We received 847 requests in 2017/18 as compared to 786 in2016/17. action. take timeto work through with animal owners andmay involve court timeframes.resolvedSome complaintsbe can quickly, otherscan what action(ifany) we have taken or intend to take within adopted We aimto investigate the complaint andletthe complainant know about animals, from wandering stock to barking or attacking dogs. One of our mainresponsibilities isfollowing up on complaints made This ismeasured by our Customer Request Managementsystem. Additional information Matamata 367, Morrinsville 338andTe Aroha 349. patrols across the district. Our street patrols pertown are asfollows: that could poseariskto our community. We undertook 1,054 street Street patrols allow our staff to checkifthere are wandering animals This ismeasured by internal records. 706 property visits across the district. of problems caused by animalsin our community. We undertook secured on theirproperty. Both of thesehelpto reduce thenumber Property visits letus check that dogs are appropriately housedand This ismeasured by internal records. 4 hours 24 hours Next working day 1 hour Next working day 1 hour 1 hour 4 hours 1 hour 0800 - 1700 hours Next working day Next working day Next working day 1 hour Next working day 1 hour 1 hour Next working day 1 hour 1700hours weekend/holiday0800 - activity. months for theBuildingConsentsandMonitoring There hasbeenno Building ConsentsandMonitoring necessary. illegal buildingwork,takingenforcementactionwhere Fitness requirementsandinvestigatecomplaintsabout building ownerscomplywiththeirBuildingWarrantsof also carryoutauditstomakesurethatcommercial building workatcriticalphasesoftheproject.We To dothisweprocessbuildingconsentsandinspect in ourdistrictcomplieswiththeBuildingAct2004. Our primaryfunctionistoensurethatbuildingwork Our projects from thelast twelve months What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of consents Building service Level of activity. unauthorised illegal/ of alleged complaints respond to We will efficiently. quickly and administered will be days. 10 working to within responded to be Complaints timeframes. processing consent Building performance measure How we

major projects during thelast twelve (732) 100% 100% 2014/15 97.7% Actual (707) 100% 2015/16 73.68% 99.5% out of 806) (802 2016/17 be processed working days consents will to10 within timeframes complaints responded (762/763) statutory building 100% of 100% of 2017/18 Actual Actual Target within 99.9% 91.6% to be Te Aroha buildingsite X X Achieved Additional information within thetimeframe. A total of 12 complaints were received with 11 complaints responded to owners. complicated andit can take timeto reach aresolution with thebuilding what action we are taking. Issues regarding illegalbuilding work can be if building work isillegal or dangerous andletthe complainant know work or swimming pools. We will investigate the complaint to determine complaints from the community aboutillegal or dangerous building regulate compliancebuilding codestandards. with We sometimes get dangerous building work inthe district. One of our mainroles isto a timelymanner we helpto reduce theincidences of illegaland In fulfilling our enforcement role underthe BuildingAct2004in This ismeasured through our Customer Request Managementsystem. • • Currently thestatutory timeframes for processing building consents are: statutory timeframes. community. In2017/18 we processed 762 of 763 building consents within requirements, and contribute to thehealthand wellbeing of our sustainable, for example they meetimproved buildinginsulation code requirements we ensure that buildingsare safe andmore completion of buildingprojects. By ensuring buildingsmeetbuilding By processing building consents on time we contribute to thetimely This ismeasured by amonthlystatistical report. Twenty working daysbuilding consents.forall other approval. Ten working days for building consents with anational multipleuse

105 Part Three: What we do - Annual Report 2017/18 106 Part Three: What we do - Annual Report 2017/18 Licensing andEnforcement Levelsservice of under thenew Food Act2014. not amajorproject, over thelast twelve months we have been wokring with food premises helpingthemtransition There have beennomajorprojects during thelast twelve monthsfor theLicensing andEnforcement activity. Although Our projects from thelast twelve months Reform Act2003, Hazardous Substances andNew Organisms Act1996andtheHealth1956. responsibilities underseveral other Acts. suchasthe Act2003,Gambling Psychoactive Substances Act2013, Prostitution contractors. Licensing andEnforcement alsomonitors andresponds to complaint aboutbreaches of our bylaws, andhave responding to excessive or unreasonable noise. After hoursnoise control complaints are handledby our security This activityisalsoresponsible for noise control in our community, which isa24 hour, seven days a week service registration andauditinginstead of annualinspections. Act 2014 came into force 1March 2016, changing the way we managefood safety. Food premises are now assessed by new qualification that must beheld by allmanagers. Inaddition, we undertake monitoring of food premises. The Food the way we regulate alcohol, includingtheabilityto have aLocal Alcohol Policy, anannualfee for allpremises anda and Supply of Alcohol Act2012 replaced theSale of LiquorAct1989. The new Actbrought insignificant changes to also involves inspecting or auditingthelicensed premises to ensure they meettherequired standards. In2012 theSale Licensing andEnforcement isresponsible for processing healthandalcohol licences andmanagers certificates; this What youcanexpectandhowwillknowwearemeetingyourexpectations. responsibly. licencesare operating districtalcohol with all premises inthe We willensurethat complaints wereceive. We will act on allnoise regulations. 2014 and/or health Health Act, Food Act accordancethe with they are runningin the districtto ensure camping groundsin hairdresser, and audit allfood premises, Weinspect or will Levelservice of standards. alcohol licensing comply with ensure they annually to be inspected premises will alcohol licenced On and off hours. within three responded to noise complaints public holidays) weekends and 5pm and8am, (between of after hours Percentage standards. comply with to ensurethey audited annually inspected or groundsbe will and camping hairdressers Food premises, performance How wemeasure

2014/15 Actual Target 100% 100% 100% 2015/16

2016/17 responded responded or audited inspected inspected inspected inspected to within to within 2017/18 Actual Actual Actual Target hours hours 100% 100% 100% 100% 100% 100% three three p p p Achieved This ismeasured by aninternal monitoring system. Additional information the premises, alcohol licence. Regulatory andLicensing Authority for thesuspension or cancellation of may result inaninspector makinganapplication to theAlcohol given an opportunity to rectify any problems. Ongoing non-compliance If premises do not comply with the conditions of itslicence, they will be activities andantisocialbehaviour. do not comply with liquorlicensing standards can contribute to illegal We have inspected all This information is collected through aninternal monitoring system. complainants are advised of theaction we will take. with business operations. Noise complaints are investigated and usually relate to general householdnoise or ongoing noiseassociated (8am-5pm), staff respond to complaints. Complaints duringthe day contractors, usuallyto loud stereos and parties. During working hours After hoursresponses to noise complaints are madeby our security and wellbeing.health be preventing antisocialbehaviour, which can negatively impactpeople’s responded to within three hours. Byacting on noise complaints we will We received 397 complaints regarding noiseafter hours. All of these were This information is collected through aninternal monitoring system. time however they have allbeenaudited within thefinancial year. required to transition, notallpremises were audited within thespecified that somenew businesses weren’t operating andthescale of work and new businesses were registered inaccordance with theAct. GIven transition by offering workshops andmentoring sessions. Alltransitioning auditing. Given thesignificant change, Councilhave assisted premises to food premises are assessed from annualinspectionsto registration and The introduction of theFood Act2014 has changed the way in which district gives residents confidence that they cansafely usethese facilities. Inspecting food premises, hairdressers and camping grounds inthe

72 alcohol premises. Licensed premises that

Resource ConsentsandMonitoring Our projects for thelast twelve months investigating breaches of theDistrict Plan, andtaking enforcement action where necessary. applications for landuseandsubdivision consents, monitoring compliance with landuseandsubdivision consent conditions, for administering theDistrict Plan, advising customers on District PlanandResource ManagementAct1991requirements, processing Resource ConsentsandMonitoring helpslookafter our natural andphysical resources for future generations. This activityisresponsible What you canexpecthowand youknow will weare meeting your expectations. Levelsservice of There have beenno compliance. use consent monitor land We will efficiently. quickly and administered will be consents Resource service Level of View over theKaimai Ranges being granted. months of within four monitored consents of landuse Percentage timelines. statutory within processed consents of resource Percentage performance measure How we

major projects during thelast twelve monthsfor theResource ConsentsandMonitoring activity. 100% 98% 2014/15 Actual 99.5% 94.7%

2015/16 98.6% 99.5%

2016/17 2017/18 Actual Actual Target 100% 100% 100% 100% p p Achieved This ismonitored through aninternal managementsystem. processed within thestatutory timeframe. us to refund aportion of the costs on any resource consents that are not The 2009amendmentto theResource Management Act1991requires ensure development projects are ableto be completed seamlessly. Resource consents needto be completed within statutory timeframes to timeframe. Of these, 100% of applications were processed within theadopted We processed 206applications for Resource Consentsin2017/18. This ismonitored through aninternal managementsystem. Additional information monitored within theadopted timeframe. In the2017/18 year we monitored 124 consents, 100% of these were Management Act1991to ensure compliance. be achieved then we will take enforcement actionundertheResource then we will work with theapplicantto rectify theissues. Ifthis cannot are complied with. Shouldnon-compliance beidentified at thistime, remind theapplicant of allthe conditions of consent and ensure they This istheinitial visit to seeif or how works are progressing andto consents to ensure the character of thetowns remains intact. The communityrelytomonitor can us on complianceresource of

. 107 Part Three: What we do - Annual Report 2017/18 108 Part Three: What we do - Annual Report 2017/18 Consents andlicensing Funding impactstatement for the year ending 30 June 2018 Term Plan 2016/17 budget $000 Long (200) 3,049 3,249 1,406 1,807 1,876 1,173 200 200 200 36 ------2016/17 Actual $000 (583) 3,278 3,861 1,935 1,878 1,162 2,116 583 583 583 23 25 ------Increase (decrease) inreserves —to replace existing assets —to improve thelevel of service —to meetadditional demand Capital expenditure funding Applications ofcapital Total sources of capital funding(C) Other dedicatedfunding capital sum contributionsLump Gross proceeds from sale of assets Increase (decrease) in debt Development andfinancial contributions and grantsSubsidies for capitalexpenditure Sourcesfunding ofcapital B) Surplus (deficit) of operating funding(A− Total applications of operating funding(B) Other operating fundingapplications Internal chargesand overheads applied Finance costs Payments to staff andsuppliers Applications ofoperatingfunding Funding balance ((A−B)+(CD)) Surplus (deficit) of capitalfunding(C− D) Total applications of capital funding(D) Increase (decrease) of investments Feesand charges Subsidies and grants for operating purposes Targeted rates charges, rates penalties General rates, uniform annual general Sources ofoperatingfunding Total operating funding(A) fees, and other receipts Local authoritiesfueltax, fines, infringement Internal chargesand overheads recovered Term Plan 2017/18 budget $000 Long (205) 3,332 1,440 1,206 1,855 3,127 1,921 205 205 205 37 ------2017/18 Actual $000 4,005 2,005 (487) 1,949 3,518 1,297 2,221 487 487 487 39 12 ------the LTP forecast for consents andlicencing was to complete this work compared to budget. Also consent activityresulted inanincrease in costs health monitoring. Increased buildingandresource Staff costs were higherthanbudgeted inthe area of which the overheads are allocated. budgetedincreasetothe in operating due costs on Overhead costs for thisactivityare higherthan eliminated.being not overstated by $162,000 due to internal transactions internal transactions notbeing eliminated. and licencing was overstated by $162,000 due to all theseareas. AlsotheLTP forecast for consents increased income compared to that budgeted across health legislation since theLTP was setresulting in resource consents, animal control anda change in There was increased activityinbuilding consents and development activityinthe district. additional staff and costs asa result ofsignificant Rates were increased compared to theLTP to fund Explanation of key variances to theLong Term Plan budget Consents and licensing