Annual Report 1 July 2009 – 30 June 2010 annual report 2009/2010 Contents Introduction 7 Parks & Reserves ................................................. 74 Introduction from the Mayor and Chief Executive ...... 7 Public Conveniences ............................................ 77 What Council has done to Improve the Quality of our Representation .................................................... 79 Asset Information ................................................ 10 Resource Management ........................................ 82 How this Report Works ........................................ 11 Roading ............................................................. 85 Highlights 15 Service Centres ................................................... 90 Council Five-Year Summary................................... 15 Sewerage ........................................................... 92 Capital Expenditure Report ................................... 16 Solid Waste Management ..................................... 95 Stormwater Drainage ........................................... 99 Reports and Policies 29 Swimming Pools .................................................101 Community Outcomes – Report on Progress ........... 29 Water Supplies ...................................................103 Linkage Between Council Policies & Plans ............... 32 Report on Long Term Council Community Plan and Financial Statements 109 Policies............................................................... 33 Consolidated Statement of Comprehensive Income 109 Governance Report ............................................. 37 Consolidated Statement of Changes in Equity ........110 Statement of Financial Involvement in Council Controlled Organisations ...................................... 39 Consolidated Statement of Financial Position ..........111 Report of the Auditor-General ............................... 40 Consolidated Statement of Cash Flows ..................113 Statement of Compliance and Responsibility ........... 42 Statement of Commitments and Operating Leases (Council) ...........................................................115 Statements of Service Performance 45 Statement of Commitments and Operating Leases Summary of Performance Measures ....................... 45 (Consolidated) ...................................................117 Animal Control .................................................... 46 Statement of Accounting Policies ..........................118 Cemeteries ......................................................... 49 Consolidated Notes to Financial Statements ...........131 Commercial Property ........................................... 52 Council’s Significant Interests in Other Entities ........181 Community Buildings ........................................... 54 Community Outcomes ........................................190 Community Support ............................................ 56 District Promotion and Development ..................... 58 General Information 200 Emergency Management ...................................... 61 Council .............................................................200 Footpaths ........................................................... 64 Community Boards & Council Committees .............201 Health & Safety ................................................... 67 Management Team .............................................202 Housing ............................................................. 69 Tararua District Council Statistics ..........................203 Library ............................................................... 71 Glossary of Terms ...............................................204 Introduction Introduction from the Mayor and Chief Executive Overview • Agreeing with Central Hawkes Bay District Council to jointly send staff to promote our districts at the The global recession dominated headlines in 2009/10, and Auckland Home Show against this backdrop, we give thanks to the community, Councillors and staff for the successes delivered. • Reviewed the Class 4 Gambling Policy that controls pokie machines, and agreed to impose a sinking lid Following the staff restructure at the start of 2009, we policy. were able to minimise use of engineering consultants, with these savings going into developing and updating Asset Further successes are outlined under each of the activity Management Plans. This work enabled Audit New Zealand to headings within the Annual Report. remove the reference to the qualification in their audit report on the Annual Report. The revised Asset Management Plans, Financial Strategy Overview and reduced consultants also meant Council could trim the Council ended the year with a financial loss of $38,000 for the forecast rates requirements in the 2010/11 year. 2009/10 year. This result was as expected due to: Examples of the successes delivered through 2009-10 include • awaiting subsidies for the proposed $8.9 million • Reviewing Infracon’s service delivery in maintaining upgrade of the Pahiatua Track route, that is supported our water networks, parks and reserves, and as a strategic project for this region and Wairarapa. roading. This meant the proposal to bring a Reserves Discussions with the NZ Transport Agency have Maintenance team in-house was no longer required, indicated if we can double the benefit-cost ratio by but we will recruit a specialist treatment plant team. altering the scope of the works, then it is likely to be funded. • Awarding a new Roading and Bridge Maintenance contract for $11.7 million over three years. This • still awaiting the $1.425 million subsidy for building a is within $50,000 of the previous tender five years new treatment plant and 24 hours storage for Pahiatua ago, yet includes a tighter level of service to reflect water that remains subject to the Ministry of Health ratepayer concerns. programme placed on hold by the Government. In the interim, the Ministry of Health have approved a • Starting the Reserve Management Plan process for $200,000 subsidy to connect the new bore to the Akitio and Herbertville Coastal area, and consulting current town supply due to the higher quality and on a draft Plan for the iconic Dannevirke Domain security of raw water we can obtain relative to the and surrounds. stream. • Obtaining a new 4wd fire appliance with two thirds • the Broadband network subsidy of $688,000 is no subsidy from the National Rural Fire Authority. This longer required as the Government has cancelled will enable our volunteers to respond to a wider range the regional broadband approach and subsidies of of incidents. We have also supplied volunteers with $622,000. pagers, to reduce response times, and avoid reliance • reduced fees and charges of ($153,000) due to on “phone tree’s”. less building consents ($57,000) and water fees • Gaining better fire weather data to manage risks in ($60,000) and landfill fees ($97,000) this was offset the coastal area through building a fully subsidised by increased revenue with in roading $24,000 and remote all weather station (RAWS). sewerage $25,000. • Working with the coastal communities, Police, Fire, • no dividends were declared by our Council Controlled Search and Rescue and the Boating Clubs to build Trading Organisation (TDC Holdings Ltd) that owns a new radio repeater at Cape Turnagain, to provide shares in Infracon and Forestry as at 30 June 2010, uninterrupted radio coverage down the coast to the compared to $215,000 received in 2009. This has Masterton District. been attributed to the economic downturn affecting the profitability of Infracon Limited. • Working closely with Horizons Regional Council under the Memorandum of Understanding we jointly • reduced income from investments as interest rates signed, to improve the quality of discharges from fell. our wastewater plants. Through an innovative trial Council operating costs were less than budget by $601,000. conducted by staff, the compliance for discharge of The most significant under expenditure was: phosphorus has greatly improved. • Within the roading activity, $372,000 under budget, • Obtaining workers under the Community Max as NZ Transport Agency approved a lower programme scheme funded by the Ministry of Social Development value for sealed pavement maintenance and to build a mountain bike and walking track through structures maintenance, therefore a higher emphasis the reserve at the north end of Dannevirke. was placed on routine drainage, environmental ANNUAL REPORT 2009/2010 INTRODUCTION 7 maintenance, and traffic services. Emergency This has not become available and therefore is reinstatement was also significantly under budget unlikely to be required. ($603,000) as actual works completed for 2009/2010 was not required. Renewal Capital • In addition Sewerage operating costs were under A total of $6.768 million was spent on renewals compared to budget by ($293,000) primarily due to savings a budget of $7.282 million. The main expenditure items and made by Council on the Infracon Ltd contract for the variances to budget include: sewerage treatment plant at Dannevirke $160,000 • Dannevirke Sports Centre building maintenance and Woodville $100,000. budget of $20,000 for a stove and fridge is waiting Council costs were above budget for: on contractors. • Depreciation and amortisation by $1.106 million as at • Dannevirke Housing maintenance budget of $18,000 the time of setting the budgets the significant increase has had $7,120 spent year to date; the balance will from the 2008/09