138 2012-22 Hauraki Long-Term Plan – Volume 1 of 2

Land Drainage

What is the Land Drainage activity and why is the Council involved?

Land Drainage and Flood Protection and Control activities both work towards achieving the same goals in terms of retaining the productive capability of the land, therefore these activities have been incorporated into one Group of Activities called Land Drainage. The Council also believes that Land Drainage is the most easily understood name for this activity for those who are affected. The legislative requirement for the Flood Protection and Control Works activities is set out in section 2 of the 10 schedule of the Local Government Act, 2002. Land Drainage is a particularly significant activity for Hauraki District Council, more so than for most other local authorities in New Zealand. The Council has Land Drainage standing committees that have representatives from both the Council and users that advise the Council on land drainage and flood protection and control measures.

Land drainage and flood protection and control are key functions of the Council’s operation, as a considerable portion of the northern Hauraki Plains lies at or below the normal high tide level in the Firth of Thames. The remainder of the land on the Hauraki Plains is only slightly above this level, so protection against high water tables, extreme weather events, high tides and river floods is essential to the continuing occupation and use of the land for residential, agricultural and horticultural purposes.

Flood Protection The majority of the Flood Protection activity in the Hauraki District is provided by the river schemes of the Waikato Regional Council, except in the northwest part of the District (Waitakaruru to Miranda) where it is provided by Hauraki District Council. The assets that provide direct protection from river and tidal flooding include stopbanks, floodgates and pump stations, and are referred to as primary flood protection assets.

Land Drainage Land drainage assets collect runoff from the catchment areas of the District and convey it to the primary flood protection assets which discharge it direct to river or sea outlets. In addition to the drainage network, land drainage assets can include stopbanks, floodgates and pumps. The latter drainage assets perform a land drainage function, e.g. pumping from a minor drain into a major drain; they do not provide direct protection from river and tidal flooding, and are referred to as secondary protection assets.

These services are provided by the Council in three Drainage Districts:  The Western Plains Drainage District which lies between the Piako River and State Highway 27, from the Firth of Thames to the District boundary with Matamata-Piako District Council.  The Eastern Plains Drainage District which lies between the Piako River and the Waihou River, from the Firth of Thames to the District boundary with Matamata-Piako District Council.  The Paeroa Rural Drainage District which comprises three smaller former drainage districts east of the Waihou River. The former districts were the Komata North, Opukeko and Tirohia Rotokohu drainage districts.

The Land Drainage activity provides protection in a sustainable manner, through achieving a high degree of public safety and effective protection of property, farmland and roads by draining excess surface water and managing ground water levels. The Land Drainage activity delivers services which the community needs to function productively and comfortably on a day to day basis, which meet high community health and safety standards, and which promote continuing productive use of the land.

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There is a community demand for Land Drainage services, and also an expectation that sustainable management of the environment will be a key driver in the design and management of the systems.

How does the Council provide this activity?

The Council carries out the Land Drainage activity by maintaining drains, canals, control structures, floodgates, flood pumps, culverts and stopbanks. Maintenance of the drains ensures that effective performance of the drainage system in removing surface runoff can be relied upon in order to meet the agreed level of service. Council drains are maintained by a combination of spraying and machine cleaning programmes, conducted by the Council’s Construction and Maintenance business unit.

Each drainage district has its own advisory committee of members elected to represent ratepayers specifically on drainage matters in their area. The Western Plains Drainage Committee also has responsibility for the management of the flood protection aspect of the activity. The drainage advisory committees report directly to the Council. The drainage committees establish levels of service with the Council and the community and recommend the annual or on-going works programme. The Council then sets the rates to be collected on their behalf to fund these works.

The Council currently owns and maintains:  The land drainage schemes which have a replacement value of approximately $15.6m (excluding land value). Overall there are 646 km of drains1, 49km of stopbanks, 92 floodgates and control gates, and 4 pump stations.  The Flood Protection schemes have a replacement value of $7.4m (excluding land value). Overall there are 37.7km of stopbanks and 16 floodgates, and one pump station.

In November 2010 Kaiaua area was incorporated into the Hauraki District. One small land drainage district (Taramaire Drainage District) was transferred to Hauraki District Council. This drainage district is essentially locally managed, but administrative support is provided by the Council.

1 As per the 2011 Infrastructure Valuation 140 2012-22 Hauraki Long-Term Plan – Volume 1 of 2

Map of Hauraki Land Drainage Districts and Flood Protection area

Taramaire

Flood Protection

Komata North Western Plains

Opukeko

Eastern Plains

Tirohia Rotokohu

How does this activity promote sustainability?

The focus of the Land Drainage activity is sustainable protection of high quality agricultural and horticultural land, and infrastructural services, to ensure on-going social and economic well-being for future generations. It also endeavours to support sustainable principles by mitigating adverse effects from these activities, and promoting a balanced set of well-beings including consideration of environmental, social, cultural and economic benefits in decision making processes. Some ways in which the activity acts sustainably are:  Improved education to residents and ratepayers on sustainability and how the Council can help protect the resources of the District.  Provision of land drainage, enabling the Plains to be farmed in a manner which provides both for today’s generation and future generations.  Control of foreshore and stream stopbanks around Waitakaruru and Miranda. By protecting the area from the tide the Council performs a sustainable practice, as it enables continued habitation, farming practices and operation of tourist facilities.

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Sustainability Tuner for Land drainage

Well-being Dimension What does this mean? The Land Drainage and Flood Protection Group Scale Economic Environmental Social Cultural generally has positive effects on the four aspects of community well-being. This Group of Activities 5 enables farming to continue on the Hauraki Plains. 4 Farming is arguably a cultural tradition and has 3 significant economic benefits, both locally and 2 nationally. This Group of Activities does have a 1 significant negative effect on environmental well- 0 being, including the loss of natural habitat. -1 However, this negative effect is balanced by the -2 positive effects on well-being.

-3 For a further explanation of the criteria and how to -4 use the sustainability tuner please see Appendix 7. -5

External issues that affect Land Drainage

The capital and renewal works for Land Drainage can be influenced by a number of factors outside the control of the Council. These factors include obtaining resource consents, tender prices, weather conditions, natural disasters, climate change, changes in community expectations and legislative requirements including the Waikato Regional Plan. Capital Works programmes show specific years for undertaking the work, but actual timing may vary as a result of any of the above factors.

Climate change and what it means for the Hauraki District Climate change remains a topical issue at an international, national and local scale. The gradual warming of the earth’s surface is associated with polar ice and glacial retreat, more frequent and intense storms, droughts and a rise in sea level.

Whilst it is believed that the Hauraki District is unlikely to see any extensive changes in temperature or rainfall averages in the near future, extreme weather events may increasingly affect the District. An increase in the frequency of flooding and/or droughts, increased risk of tidal surges due to sea-level rise, and an increased risk of infestation of invasive flora species are some of the potential outcomes of climate change for this District which could have an effect on the Land Drainage activity.

Although the extent of the effects of climate change are still being debated, the Central Government has given local government clear direction (through the Resource Management Act, 1991 and the Local Government Act, 2002) to plan for the effects of climate change. As a result the Council sought community feedback on a range of climate change policy scenarios during the development process of its Hauraki Community Plan 2009-19.

The consultation and submission process helped to guide the Council with its decision making regarding climate change and how best to approach its potential effects on this District.

Hauraki District Council’s current response to climate change The Council calculated a series of projections to help it plan for possible changes in temperature, rainfall, rainfall intensity and sea level rise. Based on guidance from the Ministry for the Environment and the feedback given by the community, the Council adopted a midline approach for climate change projections. The table below lists the projections adopted by the Council in 2009.

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Projections for the next 100 years Temperature Temperature will be likely to rise by 2.1°C as a mean average. Rainfall There will likely be a decreased annual rainfall of  Plains: - 10mm  Waihi: -30mm  Paeroa: -10mm Rainfall intensity Increase in rainfall intensity of up to 20% Sea level rise Sea levels will be likely to rise by 0.5m. Please note that these projections are subject to change and will be updated as further research is released by the appropriate national and international organisations.

These mid-line projections guide the Council’s decision making regarding setting standards for the design and construction of stormwater systems, land drainage and flood protection and control works. For example with the projected increase in rainfall intensity, the Council must ensure that stormwater and land drainage assets are designed and constructed to be capable of moving this increased amount of water during each event through its stormwater and land drainage systems to the receiving point. The Council has amended its design criteria to allow for this predicted increase in intensity. In the future the Council may also need to increase its flood pump capacity to move increased levels of water into the protected river systems.

The Western Plains Drainage District made a submission to the Council’s Draft Hauraki Long Term Plan seeking the inclusion of an investigation regarding the appropriate level of service for the foreshore stopbanks. This investigation will be undertaken in 2012/13 and any works arising from this investigation will be detailed in the Draft 2013/14 Annual Plan and will be part of the Draft Annual Plan consultation process.

Asset Valuations and Depreciation

The Council re-values its assets every three years to assess total network values and to recalculate depreciation based on those new values. Depreciation (the wearing out of an asset) is an operating expense which is required to be funded through rates.

Some significant changes in Land Drainage asset valuations have resulted from the 2011 revaluation, for the following reasons:  The total length of stopbanks valued has reduced from the 95.6 km figure used in the 2008 valuation to 86.2 km for the current valuation (resulting from improved accuracy of measurement), reducing stopbank asset value by 10%.  Cost increases in replacing floodgate and pump station assets over the three years between revaluations.

The annual depreciation amount for Land Drainage has decreased by 27%. Predominant reasons for the reduction are:  Provision of an allowance for capital renewal works expenditure every 20 years on average for stopbanks has been taken into account.  The expected lives for floodgates have been increased.

Key legislative drivers

 Land Drainage Act, 1908  Civil Defence and Emergency Management Act, 2002  Resource Management Act, 1991  Soil Conservation and Rivers Control Act, 1941  Climate Change Response Act, 2002  Health Act, 1956  Governments Sustainable Development Action Plan  Waikato Regional Council Regional Policy Statement and Regional Plan Land Drainage 143

Relevant Policies, Plans and Strategies

Type of Plan Description and Objective

Land Drainage Asset An Asset Management Plan is in place and was reviewed and updated in Management Plan preparation for this 2012-22 Hauraki Long Term Plan.

The Land Drainage Asset Management Plan details the systems in place for managing, monitoring and reporting on the performance of assets. The plan itemises and categorises assets and details the maintenance, renewal and capital expenditure programs over a 10 year period. It also identifies levels of service, the supporting asset performance measurement issues, and defines areas where further information is required. It addresses the lifecycle of the asset, the demands on the asset, the risks to the asset and how these risks will be mitigated. It is reviewed on an on-going basis to ensure that a sustainable development approach is taken, and that planning is as fully integrated as possible. Operative District Plan and Provides a framework for the sustainable management of the natural and Proposed District Plan physical environment, and assists the Council to carry out its functions in order to achieve the purpose of the Resource Management Act, 1991. Hauraki District Council Provides laws applicable only to Hauraki District that in general protect the public Consolidated Bylaw from nuisance; protect, promote and maintain public health and safety; and minimise the potential for offensive behaviour in public places.

Demand Management

The Council’s drainage systems are nearly fully developed and are currently on a programme of maintenance and renewal. The majority of capital works are therefore focussed on programmed renewals. Development of land in the District for agricultural purposes has now been largely completed. As the Land Drainage activity is essentially area based, the future demand on the Council’s system of canals, drains, stopbanks and flood control structures, as a result of population changes is expected to be very limited.

Increased drainage pumping capacity may be needed in time to counteract the possible impact of climate change and rising sea level, in addition to that needed to counteract the lowering ground levels on the peat soils of the Hauraki Plains.

While there is unlikely to be any major drainage development in the foreseeable future, there will be small additions from time to time to the drainage network. The cost of these additions will be met by the beneficiaries of the additions. Provided that a number of conditions are met, the completed drain addition will be added to the network.

The Council is aware that the predicted impacts of climate change could have significant effects on the foreshore and lower river stopbank requirements for the Regional Council’s river schemes. This may lead to the need for additional flood control measures and structures in the drainage districts. Given the relationship between the river schemes and the drainage districts, the Council will work closely with Waikato Regional Council to develop appropriate responses over the life of this Plan to mitigate the possible consequences of climate change. As well as addressing structural issues, funding issues will also need to be considered if additional works or assets are required. This could impact on the land drainage rates for users in the future in the land drainage areas.

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What are the significant positive and negative effects?

Where possible, negative effects associated with the provision of services are addressed. The column showing how negative effects are remedied includes the methods currently in use, and does not list all options available to the Council.

How do we remedy these Positive Negative negative effects?

 Contributes to health, comfort  Cost of compliance with  Operation of a Competitive and safety and the proper standards. Pricing Policy for which functioning of communities.  Potential conflict between tender applications are  Reduced flooding risk. operation of the activity and sought with the lowest Helps protect viable, healthy cultural values. tender taken in most land, contributing to  Intensive farming negates cases. sustainable farming. diversity options.  Mitigation of issues on a  Some productive land lost to one by one basis. drainage channels.  Observation and  Potential pollution from fertiliser monitoring. runoff and chemical sprays conveyed through the drainage network.  Loss of natural wetland habitat.  Peat shrinkage and lowering of the water table.

Effect on well-being

The impact of land drainage and flood protection services and activities on well-being is generally positive, as they contribute to preservation and protection of the land’s farming capacity, in turn creating a financially and socially healthy environment in which communities can thrive. Negative impacts have historically included changes to natural replenishing and draining systems of the land which can result in loss of habitat and flora and fauna.

Collaborative Projects

Relationship with Waikato Regional Council Most of the Council’s drainage districts lie within the catchments covered by the Piako River or the Waihou Valley Schemes operated by the Waikato Regional Council. The maintenance of these schemes’ foreshore and river stopbanks and associated structures (such as the floodgates and pump stations), which provide the outlets for the Council’s drainage districts, is the responsibility of Waikato Regional Council. The Council’s flood protection and control works lie outside the area of the river schemes.

The Hauraki Plains drainage areas are entirely dependent on the continuing operation of the Regional Council’s river scheme assets, both for protection from tidal and river flooding, and for the means of discharging runoff through the primary floodgated outlets and pumps. The scheme assets (stopbanks, floodgates and pumps) are owned by the Waikato Regional Council, which has the responsibility for provision, maintenance, and depreciation funding of the assets. Waikato Regional Council also funds the power company’s network charges to their pumps. Hauraki District Council has responsibility for the drainage networks, the weed clearing maintenance of the pump screens, and the funding of the energy component of the power company’s charges.

The urban areas of Ngatea, Kerepehi, Turua and Paeroa all discharge to the Waihou or Piako Rivers via Waikato Regional Council floodgates and pump stations. In the Plains towns, the main drainage outlet channels also convey runoff from upstream rural catchments. The maintenance of these channels is the responsibility of the appropriate drainage committee. In Paeroa, the primary urban drainage channel is the Hape Stream (Paeroa Main Drain) which is maintained under the urban stormwater budget. This channel also conveys upstream rural catchment runoff.

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There is a close co-operative relationship between the two organisations. The Council appoints a representative to the Waikato Regional Council Waihou-Piako Zone Liaison Sub-committee. There are also additional local community representatives, often from the Hauraki District, that are appointed to the zone sub-committee. Staff of both Councils share the routine monitoring, inspection and minor maintenance of the pump stations. In times of flood events there is also a close co-operative relationship between Councils’ staff and contractors to provide the level of service delivery.

Levels of Service and how the Council will measure them

Community Method of Levels of Service Baseline Target 2012-22 Outcome measurement

Quality drainage services provided to all customers.

Measure: Customer  2012/13: >60% 37% Percentage of affected customers satisfied satisfaction  2013-22: To be (2010/11) with the land drainage services. survey advised** A reliable land drainage network is provided. Measure: Number of properties affected by ponding Drainage of more than three days duration during a Committee 0* 0 one in ten year event or less (as defined by reports the HIRDS analysis). Efficient response to drainage problems and emergencies. Measure:  2012/13: >90% Percentage of urgent service requests Service Request  2013/14: >90% 92% regarding land drainage responded to database  2014/15: >95% within four hours.  2015-22: >95% Measure:  2012/13: >90% Percentage of non-urgent service requests Service Request  2013/14: >90% 92% regarding land drainage services database  2014/15: >95% responded to within two working days.  2015-22: >95% Reliable flood protection assets are provided. Monthly inspections Measure: recorded in The number of failures of stopbanks and 0* 0 Authority Asset floodgates in a one in 50 year event. Management (AM) database. * This is a new measure however the baseline has been calculated based on existing records. ** Targets for the years 2013-2022 will be established once the initial baseline survey is undertaken in 2012/13. The targets for 2013-22 will be proposed for community consideration as part of the 2013/14 Annual Plan.

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Possible impacts on Levels of Service

Throughout the 2012-22 Hauraki Long Term Plan, considerable effort has been made to ensure the levels of service are as concise as possible, however due to the nature of Local Government, in some cases there may be unforeseen circumstances that may impact on these service levels.

Levels of Service Possible impacts on Level of Service

Quality drainage services  The Council will be undertaking a user satisfaction survey in 2012/13 to provided to all customers establish base lines for user satisfaction with the provision of Council services. It is possible that the user satisfaction targets set in this Plan will need to change as a result of the survey. The method for the survey programmed is similar to previous surveys, however it will now target users of services rather than all residents and ratepayers. The estimated targets in this Plan have been predominantly based on external survey techniques used for similar sized Councils however, the Council is unsure at this stage how appropriate these estimated targets are to Hauraki District.  Lowering of ground levels on the peat soils of the Hauraki Plains may result in the need for additional pumping capacity.  Increased environmental awareness surrounding the water quality discharged into the drainage and river systems may lead to changes in the standards applied to drain management. Particular concerns that may require attention are: - The protection of water quality in drains/stream from contaminants that may be carried by urban stormwater (e.g. silt, hydrocarbons, untreated sewage, heavy metals) or stormwater runoff from roads. - The importance of riparian zones (stream banks) in the protection of the District’s biodiversity and the need to integrate riparian zone management and improvement with agricultural practices. A reliable land drainage network  Increased drainage pumping costs may be incurred in order to counteract is provided the potential impact of climate change and rising sea level.  There may be advancements in chemical sprays and biological methods to control weeds as and when they begin to adversely impact on the efficiency of drainage channels resulting in reduced costs.  During the effective life of this Plan, Waikato Regional Council may develop a mechanism of consenting drain maintenance programmes. Efficient response to drainage  Changes in land use, for example increased horticulture could result in the problems and emergencies need for increased drainage capacity. Reliable flood protection assets  Increasing costs to maintain/raise stopbanks to allow for possible sea level are provided. rise and associated tidal surge due to climate change.  During the life of this Plan an Event Management and Flood Control procedure will be developed. Depending on the outcome of this process there may need to be some changes to the way major weather events are managed.  During 2012/13 an investigation will be undertaken by Council staff for the Western Plains Drainage District to assess the appropriate level of service for the foreshore stopbanks with particular regard to climate change and the Waikato Regional Council foreshore stopbank standards.

Future Directions There is a possibility that the Waikato Regional Council may take responsibility for some of the Hauraki District Council’s Land Drainage and/or Flood Protection activity.

Future reviews of the Council’s climate change policy could result in changes to the design elements for this activity.

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Programmed actions for 2012-22

Capital Works Schedule – District-wide $1.94 million of funding has been allocated for Land Drainage capital projects during the life of this Plan. This is predominantly to upgrade existing networks and to provide for the replacement of assets on the networks that have reached the end of their useful lives.

Capital projects include:  Canal reconstruction  Stopbank shaping and reconstruction  Foreshore stopbank reconstruction  Culvert replacement

The full list of capital works for the District can be found on page 22 in Volume 2 of the Plan and the major capital works are listed below.

Community 2012/13 2013/14 2014/15 2015-22 Project Outcome ($)000 ($)000 ($)000 ($)000 Land drainage West Plains Drainage District pump screen replacement: Replacement of four pump screens - 68 in 2016/17 at the estimated end of their service life. Eastern Plains Drainage District Terrace stopbank: Surveying the stop bank in 2012/13 6 74 with reconstruction of the stopbank to follow in 2013/14. Komata North Drainage District Alexander Canal: Stopbank Survey scheduled for 2013/14 6 164 with reconstruction to follow in 2015/16. Tirohia Rotokohu Drainage District Kuaoiti Canal: Stopbank Survey scheduled for 2020/21 256 with reconstruction to follow in 2021/22. Flood Protection Reconstruction Waitakaruru stopbank shaping: Finishing the shaping/trimming of 80 material excavated in 2011/12. Other stopbank reconstruction: Reconstruction of the stopbanks from Karito to Hot Springs, Karito to Indian floodgate, Hot Springs to Boundary and Waitakaruru (all on 145 209 400 the Miranda-Waitakaruru foreshore area) are all on a 10 year reconstruction cycle due to foundation settlement and the need to maintain levels of service.

Karito and Hot Springs Canals - stopbank 106 154 reconstruction. Miranda Pump Switch Board: Switch boards have an estimated life of 20 years and therefore 16 its replacement has been scheduled for 2015/16. Smythe floodgate replacement: The replacement of Smythes floodgate is to be confirmed with a condition assessment however - - 249 the current estimated date of replacement is 2019/20.

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What are the costs of operating Land Drainage?

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000

OPERATING EXPENDITURE 172 Vegetation Control 172 179 185 192 199 206 213 221 230 240 12 Maintenance/Fencing/Culverts 13 13 14 14 15 15 16 16 17 18 168 Mechanical Cleaning 171 177 184 190 198 205 212 220 229 238 21 Floodgates 21 22 23 23 24 25 26 27 28 29 170 Pumps 234 247 258 269 281 292 304 318 333 349 206 Overheads 194 200 205 210 216 222 228 234 241 248 86 Other 51 53 55 57 59 62 64 66 69 72 315 Depreciation 229 229 266 266 266 298 298 298 343 343 (42) Interest (39) (57) (68) (74) (75) (94) (116) (131) (141) (163) 1,108 1,046 1,063 1,122 1,147 1,183 1,231 1,245 1,269 1,349 1,374

OPERATING REVENUE ‐ Fees and Charges ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ External Subsidies ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,052 Targeted Rates 1,053 1,067 1,088 1,104 1,122 1,140 1,159 1,178 1,199 1,220 186 General Rates 186 188 192 195 198 201 204 208 212 215 1,238 1,239 1,255 1,280 1,299 1,320 1,341 1,363 1,386 1,411 1,435

130 OPERATING SURPLUS/(DEFICIT) 193 192 158 152 137 110 118 117 62 61

CAPITAL EXPENDITURE ‐ Capacity Demand Increases ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 125 Level of Service Increases ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 400 Renewals 88 225 317 396 70 ‐ 146 249 8 441 ‐ Other Capital Expenditure ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 525 88 225 317 396 70 ‐ 146 249 8 441

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Funding Impact Statement for Land Drainage

Budget Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2021‐22 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 SOURCES OF OPERATING FUNDING General rates, uniform annual general charges, 186 rate penalties 186 188 192 195 198 201 204 208 212 215 Targeted rates (other than a targeted rate for 1,052 water supply) 1,053 1,067 1,088 1,104 1,122 1,140 1,159 1,178 1,199 1,220 ‐ Subsidies and grants for operating purposes ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ Fees, charges, and targeted rates for water supply ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Internal charges and overheads recovered ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Local Authorities fuel tax, fines, infringement ‐ fees, and other receipts ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,238 Total Operating Funding (A) 1,239 1,255 1,280 1,299 1,320 1,341 1,363 1,386 1,411 1,435

APPLICATIONS OF OPERATING FUNDING 630 Payments to staff and suppliers 662 692 718 746 776 805 835 868 906 946 ‐ Finance Costs ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 163 Internal charges and overheads applied 155 142 138 135 141 128 112 103 100 85 ‐ Other operating funding applications ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 793 Total Applications of Operating Funding (B) 817 834 856 881 917 933 947 971 1,006 1,031

445 SURPLUS (DEFICIT) OF OPERATING FUNDING (A ‐ B) 422 421 424 418 403 408 416 415 405 404

SOURCES OF CAPITAL FUNDING ‐ Subsidies and grants for capital expenditure ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Development and financial contributions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 102 Increase (decrease) in debt ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Gross proceeds from sale of assets ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Lump sum contributions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 102 Total Sources of Capital Funding (C) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

APPLICATIONS OF CAPITAL FUNDING Capital Expenditure ‐ ‐ to meet additional demand ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 125 ‐ to improve the level of service ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 400 ‐ to replace existing assets 88 225 317 396 70 ‐ 146 249 8 441 22 Increase (decrease) in reserves 334 196 107 22 333 408 270 166 397 (37) ‐ Increase (decrease) of investments ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 547 Total Applications of Capital Funding (D) 422 421 424 418 403 408 416 415 405 404

(445) SURPLUS (DEFICIT) OF CAPITAL FUNDING (C ‐ D) (422) (421) (424) (418) (403) (408) (416) (415) (405) (404)

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

Reconciliation of Cost of Service Statement to Funding Impact Statement

130 OPERATING SURPLUS/(DEFICIT) 193 192 158 152 137 110 118 117 62 61

315 Depreciation 229 229 266 266 266 298 298 298 343 343 ‐ Subsidies and grants for capital expenditure ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Development and financial contributions ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

445 SURPLUS (DEFICIT) OF OPERATING FUNDING (A ‐ B) 422 421 424 418 403 408 416 415 405 404

The funding impact statement is required under the Local Government Act 2002 Schedule and conforms to clause 5 of the Local Government (Financial Reporting) Regulations 2011. They cover the 10-year period from 2012/2013 to 2021/2022 and outline the Council’s sources of funding and its Plan to apply them. Generally accepted accounting practice does not apply to the preparation of the funding impact statements as stated in section 111(2) of the Local Government Act. The key divergences from generally accepted accounting practice are the non inclusion of depreciation and the inclusion of internal charges.