2009/2019 Ten Year Plan

88 2009/2019 Ten Year Plan The Family

COUNCIL CONTROLLED ORGANISATIONS

To help achieve the Tomorrow’s Some CCOs are council-controlled Manukau community outcomes, some trading organisations (CCTO) which of our services and activities are operate to make a profit. Each CCO is provided through trusts and other required to agree a Statement of Intent organisations. Where necessary, the (SOI) with the council each year. The council provides funding or part of the SOI sets out the CCOs nature and scope funding for these organisations, which of activities, key performance targets, independently manage the facilities or and reporting requirements along with services they’re set up to provide for other matters. Manukau’s communities. The council can exempt small CCOs A council-controlled organisation (CCO) from the reporting requirements that is a company or organisation in which are otherwise required. CCOs that the a council or councils hold 50 per cent council currently exempts are: or more of the voting rights or can • Arts Regional Trust appoint 50 per cent or more of the • Mangere Mountain Education Trust. trustees, directors or managers.

Manukau City Council The Manukau Family 2009/2019 Ten Year Plan 1 Manukau Water Limited

Why does it exist? tree roots. These blockages result in wastewater escaping from the pipes into the environment. Activities within plumbing inside The council provides water and wastewater services to the city’s properties have the potential to pollute the public drinking water. residents and businesses, through Manukau Water, which was set There are also potential visual and noise impacts of the operation up as a CCO on 1 July 2006. Because the council owns 100 per and maintenance of infrastructure. This includes the disruption cent of the company, it has: to road users when pipes are laid and repaired under roads. • Control of ownership of the city’s water and wastewater assets Manukau Water is required to manage its assets and operations • Control of service level specification and of pricing policy; incorporating best practice procedures to minimise negative and adverse impacts on its customers and to the environment. By • Oversight and final signoff approval of Manukau Water’s Asset their very presence, wastewater treatments plants, in Beachlands Management Plan (AMP) and funding plans and and the proposed plant at Kawakawa Bay will have visual • Control of any changes in residential and non-residential and odour effects. Wastewater services may also impact on the tariff structures for water and wastewater. environment through the unintended discharge of wastewater into Manukau Water’s objective is to provide a cost efficient water the environment due to equipment failure or rainwater entering and wastewater service. As a CCO its primary objective is not and overloading the system during storm events. to make a profit but to break even in the long run, while making sure the water and wastewater systems can meet the needs of Key Performance Measures and Targets current and future generations. • Manukau Water remains financially sound by achieving Funds from Operation Interest Cover Ratio (EBITDA/Interest Accordingly Manukau Water is a council controlled organisation Payable) within the range 2.7 to 3.8 and debt remains and a Public Benefit Entity. Because it does not have a purpose to between 50 and 60% of total assets. make profits, it is not a council controlled trading organisation. • Price increases will be within CPI increases subject Manukau Water has annual revenues of more than $87m; to adjustments if required, for price increases imposed total assets of $973.1m and total liabilities of $548.3m1. by Watercare Services Limited.

What does it do? • Achieve operational efficiency by maintaining controllable Manukau Water is responsible for providing water and wastewater costs to CPI-1% excluding one-off items, new compliance requirements effectively and efficiently. The company provides the requirements and times that are funded by corresponding reticulation system to distribute water and collect wastewater. It revenues. also treats wastewater for the Beachlands/Maraetai community. • Asset service capacity and quality is maintained by ensuring Wholesale water treatment and distribution and wastewater asset management planning process and procedures meet collection and treatment are provided by Watercare Services industry best practice Limited which is jointly owned with the other territorial authorities of the region except for Council. • Achieving full compliance with the Drinking Water Standards Manukau Water’s role is to: for 2005 for potable reticulated water and the health (Drinking Water) Amendment Act 2007; and • Provide water services; • Operating the water reticulation system to maintain the • Provide wastewater services; Ministry of health “a” grading • Develop and maintain the water and, wastewater system; and • Managing the water reticulation system to ensure that • Maintain the council’s storm water system. there are less than five water quality complaints per 1,000 Negative Effects customer connections on average in any year. • Ensuring at least 90% of all planned and unplanned water While the provision of good public water and wastewater shutdowns are restored within five hours. services is fundamental to the improvement of public health and environment, and for growth, its operation has the potential to • Operating the water system with less than 30 watermain have adverse effects. There is a potential for wastewater pipes breaks per 100 km of pipe annually. to be blocked by undesirable habits of customers or naturally by

90 1 Financial data for CCOs that are companies or joint ventures refer to the period ending 30 June 2008.

Manukau City Council 2009/2019 Ten Year Plan The Manukau Family Manukau Water Limited 1

• Operating its wastewater system in compliance with the Forecast spending on assets conditions of the resource consents it has obtained from Manukau Water’s capital expenditure allows for replacing assets as the Auckland Regional Council. they end their useful lives, and for investment in new assets as the • Planning for and constructing infrastructure required to meet city grows. Over the next two years Manukau Water is forecasting the needs of its customers and shareholder, while minimising to spend over $11.2 million to complete the construction of the environmental impacts, in accordance with the standards wastewater scheme at Kawakawa Bay. prescribed in the conditions of the resource consents. The following table sets out Manukau Water’s projected capital • Ensuring at least 98% of wastewater blockages are expenditure for the next 10 years in $millions. The table divides the responded to within one hour. expenditure into four categories; renewals, growth, level of service and that undertaken in association with major roading projects. • Operate the wastewater system with less than 60 blockages The table shows this for both water and wastewater. The table does per 100km of pipe annually. not include assets built by developers and vested in the council • Ensuring at least 95% of all customers’ enquiries and then sold to Manukau Water. complaints are responded to in a meaningful way within ten working days.

• Ensuring requests for new service connections are actioned within 15 working days of payment or as agreed with the customer.

Capex Forecast ($millions) Year ending 30 June 5 Years to

Water 2010 2011 2012 2013 2014 2019

Growth 1.37 1.84 3.15 3.46 3.28 19.94

Level of Service 1.76 1.98 1.48 0.72 0.38 2.39

Roading 1.45 0.80 0.84 0.88 1.16 8.14

Renewal 2.22 1.98 1.74 2.39 2.63 19.66

Total 6.80 6.60 7.21 7.45 7.45 50.13

Wastewater 2010 2011 2012 2013 2014 2019

Growth 4.01 4.82 6.45 5.82 8.52 45.10

Level of Service 1.76 2.87 5.04 3.49 6.37 30.69

Roading 0.56 0.78 0.72 0.84 0.96 5.12

Renewal 2.32 3.23 4.05 3.92 2.69 19.46

Rural 7.0 4.2

Total 15.65 15.9 16.26 14.07 18.54 100.37

Capex Overall Total 22.45 22.50 23.47 21.51 25.99 150.50

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Manukau City Council The Manukau Family 2009/2019 Ten Year Plan 1 Manukau Water Limited

Manukau Water’s Forecast Financial Performance

The following table sets out Manukau water’s projected financial performance and funding requirements for the next 10 years ($000s).

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Operating Revenue 91,379 95,933 102,155 109,781 115,157 119,625 124,081 130,446 136,567 142,276

Payments to 45,370 47,255 49,538 54,105 57,581 61,120 66,404 69,862 74,553 79,437 Watercare

Operating 21,909 22,904 23,741 24,866 25,670 26,424 27,690 28,594 29,504 30,818 Expenditure

Depreciation 19,459 19,938 20,334 21,985 22,251 22,446 24,048 24,419 24,885 26,392

Interest 10,370 10,370 10,108 9,846 9,584 9,322 9,060 8,798 8,536 8,406

net Profit/Loss -5,729 -4,534 -1,566 -1,021 71 313 -3,121 -1,227 -911 -2,777

Funded From

reverse non-cash items (depreciation 19,599 20,308 20,734 22,485 22,751 22,946 24,618 24,989 25,455 26,962 and asset write offs)

less Asset Development -20,150 -20,100 -21,400 -18,260 -26,790 -26,750 -30,030 -32,810 -32,800 -31,410 (including purchase of vested assets)

Total Cash -6,280 -4,326 -2,232 -3,205 -3,968 -3,491 -8,533 -9,048 -8,256 -7,225 Requirement

MCC Loans 4,229 4,343 5,569 7,290 8,483 9,552 9,462 9,900 10,114 10,114

Working Capital -2051 -17 -3,337 -4,085 -4,515 -6,061 -929 -852 -1,858 -2,889

Total Funding 6,280 4,326 -2,232 3,205 3,968 3,491 8,533 9,149 8,256 7, 255

Manukau Water’s charges this is not possible over the next 10 years because of substantial increases in bulk water and wastewater prices signalled by Following extensive consultation in 2008 the council decided to Watercare Services Limited. Payments to Watercare make up retain a fixed charge for residential wastewater. It also decided approximately 50% of Manukau Water’s costs. Watercare has to reduce the subsidy of residential consumers by business indicated increases in its bulk charges to fund expansion in customers over the period to 2011/12. As a result, the residential its system to support the region’s growth and to meet higher wastewater prices increase over this period while those for regulatory standards. Watercare will provide councils with businesses fall. its Funding Plan and the following table shows Watercare’s While Manukau Water and the council aim to have water and indicative price increases in percentage terms. wastewater prices increase by no more than the rate of inflation,

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

Water 7% 9% 9% 9% 10% 10% 10% 4% 2% 0%

Wastewater 6% 11% 10% 9% 3% 4% 9% 7% 9% 9%

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Manukau City Council 2009/2019 Ten Year Plan The Manukau Family Manukau Water Limited 1

Manukau Water Limited’s water prices per cubic meter (all customer categories).

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

$/m3 1.280 1.312 1.351 1.392 1.441 1.491 1.551 1.598 1.646 1.654

% change 0 3 3 3 4 3 4 3 3 0

Residential wastewater prices per dwelling unit.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

$ / dwelling unit 399 419 449 464 467 473 486 504 523 553

% change 0 5 7 3 1 1 3 4 4 6

Beachlands/Maraetai residential wastewater price per dwelling unit.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

$ / dwelling unit 438 480 530 546 562 579 596 614 632 651

% change 0 9 10 3 3 3 3 3 3 3

Community (schools, churches, community halls and marae) will pay a fixed wastewater charge per connection first plus a variable charge based on the volume of water purchased.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

$ per connection 328 265 215 222 224 227 233 242 251 265

$m3 water Purchased 1.68 2.38 2.60 2.68 2.70 2.73 2.81 2.92 3.03 3.20

Non-residential (excluding community) wastewater will pay a fixed charge per connection plus a variable charge based on the volume of water purchased.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

$ per connection 482 352 215 222 224 227 233 242 251 265

$m3 water Purchased 2.68 2.68 2.60 2.68 2.70 2.73 2.81 2.92 3.03 3.20

The charge non-residential customers who are also trade-waste customers of Watercare has the same fixed charge as in the table above but the variable charge as in the table below. The variable component is lower to reflect the payments these customers make directly to Watercare.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

$m3 water Purchased 1.25 1.26 1.29 1.29 1.30 1.31 1.30 1.32 1.33 1.36

Manukau Water also charges developers a Network Growth Charge (NGC) to cover the costs of growth on the system. This charge is levied per residential equivalent unit. The NGC in the table below is in $ per residential equivalent unit with urban Manukau in the first row and Beachlands/Maraetai in the second.

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

$ per residential equivalent 4090 4170 4250 4360 4470 4560 4650 4990 5090 5190 unit – urban Manukau

$ per residential equivalent 4830 4930 5030 5160 5290 5400 5510 5620 5730 5840 unit – Beachlands/Maraetai 93 www.manukauwater.co.nz

Manukau City Council The Manukau Family 2009/2019 Ten Year Plan Tomorrow’s Manukau Properties 2 Limited and TMPL () Limited

Why does it exist? What does it do? The council established Tomorrow’s Manukau Properties TMPL’s and TFB’s roles regarding the new town centre Limited (TMPL) in October 2005 as a CCTO to promote the in Flat Bush include: development of Flat Bush town centre but also so that it could • Buy further land and associated assets if requested influence its planning and the final form. The company will take by the council a similar role in other potential land developments. The council owns 100 per cent of the shares in TMPL. • Create a new town centre for Flat Bush that is in accordance with the criteria set by the council TMPL (Flat Bush) Limited (TFB) was established in December 2006 as a CCTO and wholly owned subsidiary of TMPL and as • Take ownership of and undertake the redevelopment of, its vehicle for the Flat Bush development. It owns the land for council land assets in town centre in order the town centre. TFB was established for commercial and legal to revitalise the town reasons and operates within the same restrictions as TMPL and • Achieve long-term sustainability for council, business, to the same performance targets. It therefore does not have residential and community activities in the town centers separate reporting. The directors and management are the in which TMPL undertakes activities same as TMPL’s. • Establish effective partnerships The vision of TMPL and TFB is ‘to be recognised in New Zealand as the model for the delivery of urban development and • Undertake other initiatives at the request of the council. regeneration. In the next 10 years TMPL will achieve success in the development of the town centre for Flat Bush and will Key Performance Measures and Targets have undertaken the revitalisation of other Manukau city town • To manage the business efficiently, maintaining cash flows centres on behalf of the council.’ as budgeted and managing land sales to achieve budgeted TMPL express their purpose as follows: ‘To develop partnerships returns that build better places.’ • To ensure that costs of running the business conform In September 2007, TMPL negotiated a development agreement to budgeted levels with Melview Developments Limited for Melview to design and • To maintain an effective control of development so that implement the new Flat Bush town centre. the value of land in TMPL Group’s ownership is maintained TMPL Group (TMPL and TFB) has total assets of $41.4m and or enhanced total liabilities of $1.5m. • To gain community recognition that the town centre at Flat Bush reflects social, community and environmental qualities, as identified through surveys and other feedback mechanisms

• To achieve recognition, by a peer group of environmental professionals, of excellence in TMPL’s work and delivery

• To progress the development of the town centre at Flat Bush in accordance with the development agreement with Melview Developments Limited.

(These measures and targets may be expanded or amended depending on council decisions)

www.tmpl.co.nz

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Manukau City Council 2009/2019 Ten Year Plan The Manukau Family Waste Disposal Services (WDS) 3

Why does it exist? Key Performance Measures and Targets One of the council’s roles is to collect and dispose of household • Operation of the WDS facilities within the approved rubbish. WDS is an unincorporated joint venture between operating conditions, management plans, resource consents the council and Wastecare Limited, which is now owned by and statutory requirements using recognised best practice Transpacific Industries Group (NZ) Limited. The joint venture and in a manner which does not result in any breach which was established in 1993 to provide cost-effective waste disposal leads to prosecution services for the city. A CCTO, it is primarily a commercial • Provide effective liaison with the local community through venture operating the Whitford Sanitary Landfill and the East continual facilitation and convening at least four meetings Tamaki Refuse Transfer Station. per annum with the Whitford Landfill Community Committee In the year to June 2008 it had annual revenues of $18.3m, • Earn 20 per cent pre-tax on average equity on a total assets of $29.3m and total liabilities of $4.5m. sustainable basis • Operate the Whitford Sanitary Landfill to achieve a What does it do? compaction rate of 0.8 tonnes per 1 cubic metre of • Redevelops, operates and manages the Whitford landfill volume. Sanitary Landfill • Constructs and manages transfer stations, with facilities to dispose of refuse, recyclables and compostibles as appropriate • Markets solid waste services for waste generated within Manukau and surrounding regions • Pursues other opportunities as required from time to time to improve its efficiency and profitability.

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Manukau City Council The Manukau Family 2009/2019 Ten Year Plan Manukau City 4 Investments Limited (MCIL)

Why does it exist? Key Performance Measures and Targets

MCIL was established in September 2005 to hold the council’s • The Annual Review is to conclude that: shareholding in Auckland International Airport Limited. It is a CCO wholly owned by the council. – Council has no material concerns with MCIL’s performance

MCIL has annual income of approximately $13m, total assets – MCIL’s corporate governance procedures are appropriate, of $221.0m and total liabilities of $132.0m. documented and reflect best practice • MCIL’s actual financial performance is in line with targeted What does it do? performance

MCIL was established to: • MCIL’s treasury management policies are appropriate and consistent with the council’s investment, borrowing and • Hold the council’s equity investment in Auckland funding policies International Airport Limited (AIAL) • MCIL shall maintain and monitor a tax imputation credit • Exercise any rights (including the right to attend meetings) account, and that account shall not go into debit balance or powers of whatever kind that MCIL has as a holder of at end of any dividend cycle, without the prior approval AIAL shares of the council. • Monitor AIAL’s activities and report to the council in • Major matters of urgency are to be reported to council respect of: committee and/or the Director Strategy within three – Any matter relating to the exercise of MCIL’s rights business days. or powers as a holder of AIAL shares: and

– Any other matters relating to AIAL that are likely to be of interest to the council

• Receive dividends declared on the AIAL shares held by it together with any imputation credits attached to those dividends.

• Pay dividends on income earned by MCIL to the council.

• Undertake such other activities as are appropriate to manage MCIL’s investment in AIAL

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Manukau City Council 2009/2019 Ten Year Plan The Manukau Family Manukau Building Consultants Limited (MBCL) 5

Why does it exist? Key Performance Measures and Targets Manukau City Council has a responsibility to issue building • MBCL remains financially sound consents. To do this, the council has to have access to building • Ensuring that MBCL’s financial targets are in line with the consent inspection services. These services are provided council’s requirements by MBCL and some smaller private sector providers. MBCL • MBCL builds and maintains strategic customer alliances was established on 1 July 2007 as a CCTO to take over the and partnerships council’s building consent inspection service. It is wholly owned by the council. • MBCL maintains and improves appropriate systems and processes to ensure consistently high quality outcomes MBCL has annual revenues of over $5.4m, total assets of and to minimise risks to all stakeholders. $2.3m and total liabilities of $1.6m

What does it do? MBCL provides building consent and compliance monitoring services, aiming to provide excellent customer service and value for money in line with best practice. MBCL also provides specialised consent processing services and advice to other local authorities.

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Manukau City Council The Manukau Family 2009/2019 Ten Year Plan Manukau Leisure Services Limited 6 (Manukau Leisure)

Why does it exist? Key Performance Measures and Targets Key themes of Tomorrow’s Manukau are to promote vibrant • Manukau Leisure remains financially sound ; and strong communities and healthy people. To contribute to • Ensuring that Manukau Leisure’s financial targets are in line these outcomes the council owns and operates a number of with the council’s requirements swimming pools and recreation centres. Manukau Leisure took • That Manukau Leisure maintains a robust and sustainable over responsibility for operating the council’s leisure services pricing policy and reviews the pricing policy annually, so (swimming pools, recreation centres, gyms, child care and that it is in line with the council’s pricing guidelines; community halls), from 1 July 2007. • Delivers programmes / events that have a specific Manukau Leisure is a CCO wholly owned by the council. It has community good outcome annual revenues in the region of $20m, total assets of $6.3m • Developing partnerships with educational and and total liabilities of $4.6m. health providers. What does it do? Manukau Leisure was established to manage the council’s leisure facilities and programmes including operational management as well as service planning for the business. Manukau Leisure has a dual focus to manage and deliver both community and business outcomes. Its mission is to inspire active, vibrant communities by being the best in community leisure.

The council contracts Manukau Leisure to provide a range of services, such as free swimming pools, which it subsidises.

Because Manukau Leisure produces both commercial and public good programmes, the council has set specific parameters regarding its pricing policy. It has been agreed that the company will:

• Comply with contractual obligations • Comply with the council’s strategic focus to achieve social good outcomes • Ensure commercial activities are fairly priced against private sector providers and • Ensure that commercial activities are accessible and affordable to the local community.

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Manukau City Council 2009/2019 Ten Year Plan The Manukau Family Auckland Regional Transport Network Limited (ARTNL) 7

Why does it exist? ARTNL is responsible for managing passenger transport Negotiations regarding Britomart between infrastructure in the . The council owns Council and the ARC have been deferred until the outcome 22.18% of ARTNL. The other shareholders are Auckland of the changes in Auckland’s government is known. Once the City Council and Council. negotiations have been completed, it is likely that ARTNL will be placed into voluntary liquidation and the company will be The rail station and ferry terminal assets of ARTNL have removed from the Companies Register. been transferred to the Auckland Regional Transport Authority. ARTNL’s only remaining operations are the management of the Britomart rail and bus terminal.

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Manukau City Council The Manukau Family 2009/2019 Ten Year Plan Manukau Enterprise and 8 Employment Trust (Enterprising Manukau)

Why does it exist? These activities include: Tomorrow’s Manukau seeks to have a thriving economy • Creating employment initiatives and undertaking through fostering economic growth. The trust, trading as initiatives designed to reduce unemployment in Enterprising Manukau (an economic development agency), was the Counties Manukau sub-region formed to promote, foster and develop a dynamic sustainable • Providing a focus for all public and private activities and wealth generating economy in the Counties Manukau sub- in the Counties Manukau sub-region which enhance region for the benefit of the Counties Manukau communities. the employment climate The number of trustees is between five and eight and the • Encouraging and assisting in the establishment power to appoint these trustees is vested in the Mayor. and development of sustainable new and existing businesses and promoting enterprise development What does it do? • Becoming involved in projects promoting vocational Enterprising Manukau is a dynamic, commercially neutral and educational opportunities organisation which facilitates economic and business success • Marketing business opportunities and tourism from business start-up assistance, through all business to prospective investors and visitors activities from attraction and development of investment capital, attraction and relocation of businesses and other Key Performance Measures and Targets economic and business interventions that contribute to the economic wealth for Manukau and its wider environs. • Create 15,000 jobs over the next three years • Facilitate $100 million investment in three years • Ensure the organisation is sustainable

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Manukau City Council 2009/2019 Ten Year Plan The Manukau Family The City of Manukau Education Trust (COMET) 9

Why does it exist? • Lead responses to council and city-wide strategic priorities related to agreed community outcomes for Educated and Tomorrow’s Manukau identifies educated and knowledgeable Knowledgeable People and Thriving Economy. people as a key theme. This trust was established in 1999 by the council to undertake education initiatives. The trust Key Performance Measures and Targets consists of not less than nine, and not more than 12 trustees. The Trust Deed provides that the Mayor appoints the trustees. • Delivery of at least four education sector events and/or advocacy documents or submissions per annum What does it do? • Advocacy activities align with the council’s strategic goals Analysis and Advocacy – to enhance community and central and/or central government strategies in order to maximise government dialogue relating to educational issues in leverage for new initiatives Manukau through: • The trust provides evidence of at least four projects • Analysis of local issues that advance the strategic priorities for the city

• Development of advocacy documents and submissions • Funds are leveraged from external stakeholders. to central government or other agencies www.comet.org.nz • Consultation and collaboration with relevant local networks, including those for Maori and Pasifika communities

• Development of forums, conferences or seminars to share information, increase public and community awareness of education issues

• Providing a channel for community input into implementation projects

Works together: Project leadership, co-ordination and facilitation services to:

• Strengthen the leadership role of the organisation through increasing strategic and tactical networks with central government agencies, non-governmental organisations, service providers and communities

• Initiate partnerships, programmes or other projects that meet gaps in services or address needs

• Co-ordinate projects, programmes or events that address needs

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Manukau City Council The Manukau Family 2009/2019 Ten Year Plan Arts and 10 Cultural Trust (PACT)

Why does it exist? Key Performance Measures and Targets The Pakuranga Arts and Cultural Trust (PACT) was established • Outcomes achieved against the performance targets as in 2000 by the Pakuranga Arts Society and the council as part stated in the Service Level Agreement with the council of a joint commitment to increase the arts in Manukau. The • Increase or maintain the visitor numbers and community trust consists of between six and eight trustees. The Trust participation at the te tuhi complex Deed provides that the Mayor appoints up to five trustees and therefore more than 50 per cent of trustees. • Work alongside other agencies/stakeholders to increase participation in the arts in Manukau What does it do? • Exhibitions achieve the highest musicological standards • Facilitates and supports initiatives designed to attract, of quality, display and interpretation retain and grow the arts • Periodic surveys of stakeholders, clients and customers • Helps develop an arts culture in the region to determine satisfaction levels. • Leverages all sources of funding to enhance arts development in the region www.tetuhi.org.nz • Provision of mentor and other services to enhance the development of the arts within Manukau

• Encourage and assist with the development of arts tourism opportunities within Manukau

• Fosters closer relationships with other regional arts institutions throughout New Zealand and with international art institutions

• Ownership and management of the te tuhi – the mark complex in Pakuranga.

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Manukau City Council 2009/2019 Ten Year Plan The Manukau Family Highbrook Park Trust 11

Why does it exist? Key Performance Measures and Targets As part of the planning for Highbrook Business Park the • To progressively acquire the land for the park council and Highbrook Development Limited agreed to • To establish, maintain, enhance and make the park establish a park on the adjoining peninsula. The trust was available to Manukau residents and the public at large established by the council and Highbrook Development for their enjoyment Limited in 2000 and has four trustees. The council has the power under the Trust Deed to appoint two trustees. • To ensure the effective, efficient and safe use of the park

What does it do? • To protect environmentally sensitive and geologically important areas within the park The trust was formed to acquire, establish and maintain a park on the Waiouru Peninsula for the benefit of the region’s • To ensure uses and activities within the park are compatible public. The acquisition of the 40 hectares of land has been with the nearby communities carried out on a progressive basis and is being developed into • To maintain references within the park to the historic uses a world-class public open space in conjunction with the staged of the land development of the Highbrook Business Park. The park is to be established whilst protecting the environmentally sensitive www.highbrook.co.nz and geologically important areas within the park.

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Manukau City Council The Manukau Family 2009/2019 Ten Year Plan 12 Manukau Beautification Charitable Trust (Beautiful Manukau)

Why does it exist? Key Performance Measures and Targets The council is committed to eradicating graffiti in the city and • All enquiries for graffiti removal are effectively dealt to supporting initiatives that beautify the city and established with in a timely fashion this trust in 2001. The trust has no less than nine or more • The quality of graffiti paint-out work will have been than twelve trustees. The Trust Deeds vests the power to maintained at a high standard appoint trustees in the council. The trust was formed to promote, support and undertake programmes, actions and • Graffiti database information will be regularly used by initiatives to beautify Manukau’s urban and rural environment police to identify and prosecute offenders for the benefit and enjoyment of the Manukau community • School based mural projects will continue to be supported and the public at large. through the provision of management, labour and materials

What does it do? • The 17km of ONTRACK Manukau rail corridor will have • Eradicates graffiti tagging and rubbish removed on a five day-a-week basis by a permanent team of five workers • Educates to bring about environmental pride, respect and responsibility www.beautifulmanukau.org.nz • Enforces graffiti legislation and collects and provides evidence to help the police prosecute taggers

• Beautifies the city through removal of tagging, rubbish and weeds and replanting with native trees, on the Manukau section of the ONTRACK rail corridor

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Manukau City Council 2009/2019 Ten Year Plan The Manukau Family Te Puru Community Charitable Trust 13

Why does it exist? Key Performance Measures and Targets The council supports the recreational, social and community • Increase membership and participation of sports groups needs of the residents of Beachlands/Maraetai/Whitford by a further 10 per cent and the Clevedon community. This trust was established by • Increase the centre’s use by other community groups the council in 2003, and has up to nine trustees. Trustees are appointed by the Mayor, acting collectively, with two • Meet budgeted targets for sponsorship, donations other people. and funding

• Encourage major sporting or community events to use What does it do? the park and centre as a base • Promotes, supports and develops programmes, actions • Continue planning and development work for increased and initiatives for the recreational, social and community facilities at Te Puru Park. needs for Beachlands/Maraetai/Whitford residents and the Clevedon community www.tepuru.co.nz • Establishes facilities for those recreational, social and community activities

• Provides and promotes facilities for the performing and visual arts

• Provides financial assistance to organisations that provide for the recreational, social and community needs of the residents of the area

• Develops Te Puru Park as the principal facility and the community centre as the trust’s headquarters

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Manukau City Council Our Elected Representatives 2009/2019 Ten Year Plan

Our Elected representatives

What you’ve said so far: “ Working together as a community, we are stronger when we are together. ”

Manukau City Council 2009/2019 Ten Year Plan Our Elected Representatives

Meet the Mayor and councillors

MANUREWA

Cr Colleen Brown MNZM JP Cr Anne Candy QSO, JP Home: 266-7925 Home: 268-0141 Mobile: 0274 797-978 Fax: 268-1018 Fax: 266-7925 Mobile: 0274 812-699 [email protected] [email protected]

Cr Sir Cr Daniel Newman His Worship the Mayor, Business: 523-2563 Home: 268-0718 Home Ph: 262-2995 Fax: 529-0563 Mobile: 021 240-2800 Mobile: 021 893-196 [email protected] Business: 300-9587 [email protected] [email protected]

BOTANY-CLEVEDON PAKURANGA PAPATOETOE

Cr Maggie Burrill Cr Cr Gary Troup Mobile: 021 858-228 Home: 577-3340 (Deputy Mayor) Home: 278-9429 Fax: 263-9071 Fax: 576-8004 Mobile: 027 488-2322 [email protected] Mobile: 0274 902-114 Business: 577-3360 [email protected] [email protected]

Cr Michael Williams Cr David Collings Cr Bob Wichman Home: 534-5450 Home: 576-2350 Home: 277-0896 Mobile : 021 702-802 Mobile: 027 576-2350 Fax: 277-0894 Business: 262-5790 [email protected] Business: 278-7847 [email protected] Fax: 278-9074 [email protected]

HOWICK MANGERE OTARA

Cr Jami-Lee Ross Cr Alf Filipaina Cr Arthur Anae Home: 271-3255 Mobile: 021 051-9967 Home: 276-1405 Mobile: 0274 059-178 [email protected] Fax: 276-1408 [email protected] Mobile: 021 921-941 [email protected]

Cr Sharon Stewart QSM Cr Sylvia Taylor Cr Efu Koka Home: 577-4127 Home: 622-2982 Home: 278-4787 Mobile: 027 243-1685 Fax: 622-2987 Fax: 278-4789 [email protected] Mobile: 021 471-555 Mobile: 021 902-094 Business: 622-2982 [email protected] Fax: 622-2987 [email protected]

Cr Hugh Graham Mobile: 021 184-1124 Hugh_henrygraham @yahoo.com 107

Manukau City Council Our Elected Representatives 2009/2019 Ten Year Plan

Community Boards

Community boards provide an additional link with the community

Manukau city has eight community boards made up of people The Community Board Multi-Activity Budget 2009/10 below elected directly to the board, plus the councillors who shows the amounts allocated to each Community Board by represent each ward. the council. The amounts are adjusted annually to allow for inflation and differences in population ratios between the The boards provide a ‘grass-roots’ linkage with the community, Boards’ areas. These adjustments will be made at the time helping the council understand each community’s distinct the Annual Plans for 2010/11 and 2011/12 are prepared. requirements. They also have some decision-making authority.

Our community board chairs are:

Botany Community Board Clevedon Community Board Howick Community Board Mangere Community Board

Dyann Calverley Maurice Hinton Jim Donald Leau Peter Skelton Address: 2 Lexington Drive, Address: 230 Whitford Address: 111 Macleans Road, Address: 11 Quennell Avenue, Howick Park Road RD1, Mangere Mobile: 021 535 682 Mobile: 027 279 9176 Mobile: 021 186 6895 Tel (H): 09 537 6400 Mobile: 027 285 5770 Tel (H): 09 535 8711 Tel (H): 09 275 9062 Tel (H): 09 530 8698 Tel (B): 09 272 6609 Email: jimrdonald@ Fax (H): 09 275 9026 Fax (H): 09 530 8698 hotmail.com Email: dyanncalverley@ Email: epskelton@xtra. hotmail.com Tel (B): 09 262 2269 co.nz Fax (B): 09 272 2270 Email: hinton_family@ xtra.co.nz

Manurewa Papatoetoe Pakuranga Otara Community Board Community Board Community Board Community Board Tunumafono Ava Fa’amoe Michael Bailey Stephen Grey Ross Warren Address: 54/289 Shirley Address: 10 Rimu Road, Address: 31 Glen Avenue, Address: 32 Devon Road, Road, Papatoetoe Manurewa Papatoetoe Beachlands Beach Mobile: 027 680 7973 Mobile: 027 224 7149 Mobile: 021 244 2748 Mobile: 021 959 218 Tel (H): 09 278 2626 Tel (H): 09 268 7533 Tel (H): 09 278 3905 Tel (H): 09 534 3425 Fax (H): 09 278 2622 Tel (B): 09 277 8278 Fax (H): 09 268 7536 Fax (B): 09 534 3425 Tel (B): 09 278 2626 Fax (B): 09 278 5725 Email: [email protected] Tel (B): 09 261 1300 Fax (B): 09 278 2622 Email: stephen.grey@ Fax (B): 09 292 2663 Email: acfaamoe@ chestergrey.co.nz Email: [email protected] f5enterprise.co.nz

Activity Botany Clevedon Howick Mangere Manurewa Otara Pakuranga Papatoetoe City-wide Totals $ $ $ $ $ $ $ $ $ Local Events 10,500 3,000 21,000 8,700 10,000 14,600 9,300 10,750 87,850 & Initiatives

Community Board 500 500 500 500 500 800 500 500 4,300 General Expenses

Parks Minor Capital Works 45,100 14,500 42,000 55,600 71,900 39,300 31,500 33,000 332,900

Roading Capital Works 46,600 87,700 51,000 108,200 157,700 40,900 73,600 78,750 644,450

Streetlighting 0 3,200 3,400 2,200 2,600 9,000 4,700 4,000 29,100

New Street Trees 0 0 5,000 4,000 2,300 2,100 0 0 13,400 & Streetscaping 108 Total 102,700 108,900 122,900 179,200 245,000 106,700 119,600 127,000 1,112,000

Manukau City Council 2009/2019 Ten Year Plan

Executive Leadership Team

Responsibilities of the council and management

The efficient running of the council depends on the clear division between the roles of council and management.

The council concentrates on setting policy and strategy and providing a clear direction for management to follow. Management’s role is to implement the decisions of the council.

Mayor and Councillors

Chief Executive Officer

LEIGH AUTON

Chief Advisor Risk Director Chief Director and Assurance Community Advisor Finance

GEOFF FOSTER IAN MAXWELL PHIL WILSON DAVE FOSTER

• Risk Management • Parks • Advice support to the • Financial reporting • Internal Audit and External • Libraries Chief Executive Officer and compliance Audit Liaison • Leisure (swimming pools, • Te Tiriti o Waitangi • Rating and rating policy recreation centres, community responsibilities • Treasury gyms, childcare facilities, • Democratic support community halls) • Legal • Arts and art centres • Citizens’ Advice Bureaux • Community Services • Manukau Memorial Gardens • Housing for the Elderly

Director Director Director Organisational Director Economic Strategy Performance Environment

RICK WALDEN GRANT TAYLOR ROBYN McCULLOCH REE ANDERSON

• Property • Emergency management • Information management • City growth and planning • Transport (road construction • Annual Plan • Human resources • Sustainable Environment and maintenance, Long-Term Council • Best Practice (Procurement, • Resource consents footpaths etc) Community Plan quality, best value) and compliance • Economic Development • Strategy development • Customer relations (call • Building consents including tourism, • Council-controlled centre and customer centre) and compliance business growth organisations, trusts • Stormwater services • Asset management planning • Waste management • Communications and events • Environmental by-laws • Building Authority

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Manukau City Council 2009/2019 Ten Year Plan Facts

Area 55,387 hectares with 29,626 hectares rural

Coastline 382 kilometres

Parks 400

Population 328,968 (increase of 45.768 or 16.2% since 2001)

Ethnic groups 180 (46% identify as European, 28% Pacific, 22% Asian, 15% Maori)

Age 42 per cent under 25 years, median age 31

95,118 occupied dwellings, 4,569 unoccupied

In the three months to April 2008 Manukau house sales were down 54% on a year earlier – the largest annual fall on record (since January Dwellings 1994). Over the year to May the number of new residential consents in Manukau fell 25% on the year before, which was considerably larger than the fall of 12% measured nationally. The value of building consents in the year to May 2008 up 32% on a year earlier. This rate was considerably higher than growth of 8% measured at the national level.

Schools 138 (as of 2007)

Leisure and 10 (council-owned, operated by Manukau Leisure Services Ltd) recreation centres

Libraries 19

Art Centres 6

Urban Marae 23

Total employment grew by 3.9% in the March 2008 quarter compared with the same quarter in 2007. Employment in the year to March Employment 2008 was 1.4% above the previous year. Estimated unemployment rate increased from 6.9% in December 2007 to 8.9% in March 2008 compared with 4.6% in the region and 3.6% nationally.

Unless otherwise stated, statistics are from the 2006 census.

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Manukau City Council 111 2009/2019 Ten Year Plan Timeline

C 1100 1305

Maori settle in Great Waka Manukau migration

1937 1946 1952 1965

Manurewa becomes Howick becomes Manukau County and becomes a a borough a borough Manurewa Borough borough amalgamate to form Manukau City. Hugh Lambie elected as Mayor

112

Manukau City Council 2009/2019 Ten Year Plan Timeline

1847/48 1876 1911

Fencible settlements Manukau County Manukau County divided established at Onehunga, established into Manukau County Panmure, Howick and . and Franklin County

1848 ‘Hundreds’ of Howick and Otahuhu established

1968 1977 1983 1989 2007

Sir Lloyd Elsmore Manukau Sir Barry Curtis Papatoetoe City Len Brown elected as Mayor City Council elected as Mayor and Howick elected as Mayor administration Borough building opens amalgamated with Manukau City

113

Manukau City Council 2009/2019 Ten Year Plan

Audit Report

REPORT TO THE READERS OF MANUKAU CITY COUNCIL’S LONG-TERM COUNCIL COMMUNITY PLAN FOR THE TEN YEARS COMMENCING 1 JULY 2009

The Auditor-General is the auditor of Manukau City Council (the City Council). The Auditor-General has appointed me, F Caetano, using the staff and resources of Audit New Zealand, to report on the Long Term Council Community Plan (LTCCP), on his behalf. The Auditor-General is required by section 94(1) of the Local Government Act 2002 (the Act) to report on: • the extent to which the LTCCP complies with the requirements of the Act; • the quality of information and assumptions underlying the forecast information provided in the LTCCP; and • the extent to which the forecast information and performance measures will provide an appropriate framework for the meaningful assessment of the actual levels of service provision. It is not our responsibility to express an opinion on the merits of any policy content within the LTCCP.

The use of information contained in this LTCCP The Government decided to dissolve this City Council and the other existing local authorities that govern the Auckland region (collectively the existing Auckland Councils) after 31 October 2010, and to establish a single unitary authority, the , to govern the entire Auckland region from 1 November 2010. The Local Government (Tamaki Makaurau Reorganisation) Act 2009, enacted in May 2009, provides for the transition to new local government arrangements. The Auckland Transition Agency (ATA) has been established to facilitate the transition and to enable Auckland Council to operate on and from its establishment on 1 November 2010. This will involve developing Auckland Council’s structure and operational arrangements and determining how the systems, plans and policies of this City Council and other existing local authorities and local organisations will be linked to, and integrated within, that structure. Under draft legislation currently before the House, the Local Government Commission (LGC) is to be given the power to determine final boundaries for Auckland Council. Section 29 (1) of the Local Government (Tamaki Makaurau Reorganisation) Act 2009 requires existing Auckland Councils to continue to perform their role as local authorities during the transition period. Although the City Council will be dissolved after 31 October 2010, the LTCCP of the City Council will continue in force beyond that date and is therefore of ongoing relevance to the community it currently governs. After that date the LTCCP of the City Council will be integrated into the new governing structure, subject to the decisions of the ATA and the LGC. For this reason, the LTCCP for the City Council has been developed on a going concern basis.

Opinion Overall Opinion In our opinion the LTCCP of the City Council incorporating volumes one and two dated 30 June 2009 provides a reasonable basis for long-term integrated decision-making by the City Council in the transition period to 31 October 2010, and by the Auckland Council thereafter, and for participation in decision-making by the public and subsequent accountability to the community about the activities of the City Council until 30 October 2010, and the Auckland Council thereafter.

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Audit Statement 2009/2019 Ten Year Plan

Audit Report

In forming our overall opinion, we considered the specific matters outlined in section 94(1) of the Act which is set out below. We also considered the uncertainty regarding future local government arrangements for the Auckland region and the potential impact of this uncertainty on the validity of key assumptions used by the City Council in preparing the LTCCP.

Opinion on Specific Matters Required by the Act In our view: • the City Council has complied with the requirements of the Act in all material respects demonstrating good practice for a council of its size and scale within the context of its environment; • the underlying information and assumptions used to prepare the LTCCP provide a reasonable and supportable basis for the preparation of the forecast information; and • the extent to which the forecast information and performance measures within the LTCCP provide an appropriate framework for the meaningful assessment of the actual levels of service provision, reflects good practice for a Council of its size and scale within the context of its environment.

Disclosures of the uncertainty arising from new local government arrangements for the Auckland region In forming our unqualified opinion, we considered: • the effect of the requirement that the ATA must confirm the LTCCP before it is implemented; and • the City Council’s disclosures regarding the potential impact of the uncertainty about the new local government arrangements for the Auckland region on key assumptions used by the City Council to prepare the LTCCP.

The Council must obtain confirmation from ATA before implementing the LTCCP Section 31 of the Local Government (Tamaki Makaurau Reorganisation) Act 2009 requires existing Auckland Councils to get written confirmation from the ATA before implementing certain decisions, including a decision to adopt or amend a LTCCP. The City Council obtained written confirmation from the ATA on 29 June 2009.

The Council’s disclosures about the potential impact of the uncertainty on key assumptions used to prepare the LTCCP The assumptions used to prepare the LTCCP are based on the cumulative decisions and the best information currently available to the Council. However, the outcome of the decisions of the ATA, and subsequently the Auckland Council, when developing the Auckland Council’s structure and operational arrangements and determining how the systems, plans and policies of this Council and other existing Auckland Councils and local government organisations will be linked to, and integrated within, that structure is uncertain at this stage. It is not currently known to what extent the future decisions of the ATA and Auckland Council may affect the forecast information within this LTCCP, by giving rise to: • any additional costs of reorganisation and reorganisation savings; • the transfer of assets and liabilities into or out of the City Council; and • the revision of the City Council’s existing funding policies. 115

Audit Statement 2009/2019 Ten Year Plan

Audit Report

Also, it is not currently known how the LGC may determine the boundaries for Auckland Council and the extent to which any boundary changes may affect the forecasts included within this LTCCP. We consider the disclosures made by the City Council on page 18 of volume two regarding the uncertainty about the key assumptions affected by the uncertainty arising from new local government arrangements for the Auckland region to be adequate. The validity of key assumptions used by the City Council to prepare the LTCCP depends on the future decisions of ATA, the Auckland Council and the LGC, and the LTCCP is subject to change based on these future decisions. It is not practical for us to quantify the potential effect of the resolution of this uncertainty on the forecast information within the LTCCP. Actual results are likely to be different from the forecast information since anticipated events frequently do not occur as expected and the variation may be material. Accordingly, we express no opinion as to whether the forecasts will be achieved. Our report was completed on 30 June 2009, and is the date at which our opinion is expressed. The basis of the opinion is explained below. In addition, we outline the responsibilities of the City Council and the Auditor, and explain our independence.

Basis of Opinion We carried out the audit in accordance with the International Standard on Assurance Engagements 3000: Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards. We have examined the forecast financial information in accordance with the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information. We planned and performed our audit to obtain all the information and explanations we considered necessary to obtain reasonable assurance that the LTCCP does not contain material misstatements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. Our audit procedures included assessing whether: • the LTCCP provides the community with sufficient and balanced information about the strategic and other key issues, choices and implications it faces to provide an opportunity for participation by the public in decision making processes; • the City Council’s financial strategy, supported by financial policies as included in the LTCCP is financially prudent, and has been clearly communicated to the community in the LTCCP; • the presentation of the LTCCP complies with the legislative requirements of the Act; • the decision-making and consultation processes underlying the development of the LTCCP are compliant with the decision-making and consultation requirements of the Act; • the information in the LTCCP is based on materially complete and reliable asset or activity management information; • the agreed levels of service are fairly reflected throughout the LTCCP; • the key plans and policies adopted by the City Council have been consistently applied in the development of the forecast information; • the assumptions set out within the LTCCP are based on best information currently available to the City Council and provide a reasonable and supportable basis for the preparation of the forecast information;

116

Audit Statement 2009/2019 Ten Year Plan

Audit Report

• the forecast information has been properly prepared on the basis of the underlying information and the assumptions adopted and the financial information complies with generally accepted accounting practice in New Zealand; • the rationale for the activities is clearly presented; • the levels of service and performance measures are reasonable estimates and reflect the key aspects of the City Council’s service delivery and performance; and • the relationship of the levels of service, performance measures and forecast financial information has been adequately explained within the LTCCP. We do not guarantee complete accuracy of the information in the LTCCP. Our procedures included examining on a test basis, evidence supporting assumptions, amounts and other disclosures in the LTCCP and determining compliance with the requirements of the Act. We evaluated the overall adequacy of the presentation of information. We obtained all the information and explanations we required to support our opinion above.

Responsibilities of the Council and the Auditor The City Council is responsible for preparing a LTCCP under the Act, by applying the City Council’s assumptions and presenting the financial information in accordance with generally accepted accounting practice in New Zealand. The City Council’s responsibilities arise from section 93 of the Act. The Council must get written confirmation from the ATA before implementing the decision to adopt the LTCCP, in accordance with section 31 of the Local Government (Tamaki Makaurau Reorganisation) Act 2009. We are responsible for expressing an independent opinion on the LTCCP and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and section 94(1) of the Act.

Independence When reporting on the LTCCP we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. We have provided assurance to Council over tender processes for the selection of professional services providers and physical works providers, which is compatible with those independence requirements. Other than this report and in conducting the audit of the Statement of Proposal for adoption of the LTCCP, the annual audit and the assurance related assignments, we have no relationship with or interests in the City Council.

F. Caetano Audit New Zealand On behalf of the Auditor-General Auckland, New Zealand

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Audit Statement The planning process

Main external influences on why we plan [Legislation/External Strategies/Other Factors/Tomorrow’s Manukau]

Internal (Council) influences [Vision/Mission, Policy & Strategies]

10-year plan SUBMISSION IMPLEMENTATION MEASURE REPORT BACK Annual Plan Planning (Consultation) (Carry out Plan) (Our Progress) (Annual Report)

2009 2006 2007 2008 2010 2011

LTCCP Annual Plan Annual Plan Review Annual Plan Annual Plan

Ti mel i ne 10 year Plan (year 2 10-year plan) (year 3 10-year plan) 10-year plan