ANNUAL REPORT 2018/19 for the period 1 July 2018 to 30 June 2019 Adopted 26 September 2019 ISSN 1770-9847 [print] ISSN 1177-9888 [online] Contents Introduction ......................................................................................................................................................................1 Overview from the Mayor and the Chief Executive .................................................................................................................................. 2 Strategic Direction ................................................................................................................................................................................................ 3 Mayor and Councillors ........................................................................................................................................................................................ 3 Statement of Compliance and Responsibility ............................................................................................................................................4 Key Statistics ........................................................................................................................................................................................................... 5 Average Residential Rates Comparison ........................................................................................................................................................ 6 How Rates Were Spent ........................................................................................................................................................................................ 7 Māori Contribution to Decision Making Process ........................................................................................................................................ 8 Financial Overview ................................................................................................................................................................................................ 9 Financial Information ....................................................................................................................................................13 Financial Statements ...........................................................................................................................................................................................14 Notes to the Financial Statements ................................................................................................................................................................32 Reserve Funds ......................................................................................................................................................................................................68 Borrowing Programme ......................................................................................................................................................................................75 Financial Prudence Benchmarks ....................................................................................................................................................................76 Funding Impact Statement (Whole of Council) .......................................................................................................................................81 Activity Groups .............................................................................................................................................................83 Change in Activity Group Reporting ........................................................................................................................................................... 84 Democracy and Governance ...........................................................................................................................................................................85 Transport .................................................................................................................................................................................................................88 Stormwater.............................................................................................................................................................................................................92 Wastewater ............................................................................................................................................................................................................95 Water Supply .........................................................................................................................................................................................................98 Other Infrastructure ..........................................................................................................................................................................................103 City Strategy ........................................................................................................................................................................................................ 107 Community and Visitor Experiences ........................................................................................................................................................... 115 Property Assets .................................................................................................................................................................................................. 126 Audit New Zealand Report ............................................................................................................................................................................130 Appendices .................................................................................................................................................................. 135 Council Controlled Organisations ............................................................................................................................................................... 136 Glossary of Terms ..............................................................................................................................................................................................140 Our Facilities AQUATIC LIBRARIES CENTRE THE FARADAY CENTRE hawke’s bay museum of technology Napier City Council - 2018/19 Annual Report Napier City Council 1 Introduction Introduction Overview from the Acting Mayor and Chief Executive Welcome to the Napier City Council’s Annual Report for 2018/19. Council is in good financial health, with a healthy balance sheet. We have continued to work hard to set rates and debt levels that balance affordability with the need to provide for our growing community. We are proud that Napier’s average residential rates remain one of the lowest in the country at $2,118 per property for 2018/19. Improving our water network has been a big focus during the year and recently Council confirmed that water is its number one priority. There is urgency with regards to work required but it will take time. As part of the large water programme to address dirty water, a significant amount of work has been undertaken to make improvements to our water network. There has been significant increase in cleaning and changes to network configuration. We will continue to give this work priority. We also designed new de-chlorinated water stations and the first station was completed and commissioned on 1 July. Napier continues to be a very high user of water compared to other areas across New Zealand and we plan to encourage and educate the public on ways to make water conservation part of their daily lives. This year saw the settlement of a weathertightness claim. Council is in the unenviable position of being last man standing in these situations. At this year’s LGNZ Annual Conference a remit was put forward by Napier City Council to introduce a cap on the liability of Councils in relation to building defects claims. This remit was passed with 93 per cent support of the sector. Napier City Council will work closely with central government agencies to progress a positive outcome for Councils in this space. One of the most successful projects undertaken was the re-turfing of McLean Park. This project included new stormwater mains and drains being laid, and then 130 truckloads of hybrid turf was laid down. This project was completed in August in time for the first rugby match on 2 September when Hawke’s Bay took on Counties-Manukau in the Mitre 10 cup clash. Nitro Circus was the first non-sporting event to be held on the new turf. This event sold more tickets per capita than any other Nitro Circus show of the tour. We have continued to work on the Park Island Northern Development and expect this project to be complete in 2019/20. The re-development of the northern end of Hastings Street has created a vibrancy in our central business district with locals and visitors enjoying this space by day and night. Signature events are not only a drawcard for visitors but provide many opportunities for locals too. We sponsored the outdoor and street events of the hugely popular Art Deco Festival held in February 2019. We also hosted a number of events such as Nitro