· council's vision and mission statement our vision first to see the light. first choice for...
TRANSCRIPT
OUR DRAFT 2012-2022
APPROVED FOR PUBLIC CONSULTATION
ON 15 MARCH 2012
Ten Year PlanVolume 1
Council's Vision and Mission Statement
OUR VISIONFirst to see the light.
First choice for lifestyle and people,
enterprise and environment.
Ka mau te wehi!
OUR SEVEN VALUESGiving service, solution focus ,
innovation, working together,
learning and improving, can-do-
attitude, doing it right the fi rst
time
OUR MISSIONLead and support the social,
cultural, economic and
environmental development
of our communities.
Mō tātou te Tairāwhiti
What’s insideWhat’s inside
VOLUME 1
Introduction Foreword from the Mayor and Chief Executive ............................................................................ 6
Audit Opinion .................................................................................................................................... 8 About this Plan ................................................................................................................................ 10 SECTION 1: Gisborne/East Coast - Our Future Our District ....................................................................................................................................... 14 Our Direction and Future Challenges .......................................................................................... 18 Financial Strategy ........................................................................................................................... 34 Our Focus - Major and Collaborative Projects ............................................................................ 42
SECTION 2: What we do Guide to the section ...................................................................................................................... 54
Commercial Operations ............................................................................................................... 56 Community Planning and Services Aquatic and Recreation Facility (Olympic Pool) ............................................................. 62 Arts and Culture ................................................................................................................... 66 Community Housing ............................................................................................................ 71 Community Planning and Development ......................................................................... 74 HB Williams Memorial Library .............................................................................................. 80 Parks and Open Spaces ..................................................................................................... 84 Environmental Policy and Services Animal Control ..................................................................................................................... 90 Building Services .................................................................................................................. 92 Civil Defence and Emergency Management (CDEM) .................................................. 95 Environmental Health ........................................................................................................ 100 Environmental Policy ......................................................................................................... 103 Environmental Services ..................................................................................................... 108 Resource Consents ............................................................................................................ 113
Governance and Support Services Governance ....................................................................................................................... 116 Support Services ................................................................................................................ 119
ur Future..........................................................
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Our Futu.............................................................
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.............. 18.......................................... 34
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................................ 62..................................................... 66
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ment (CDEM) ............................................................................ 100
....... 18....
................................................... 42
............ 62.......................................................... 66
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men ..... 5.....
Infrastructure Services Flood Protection ................................................................................................................ 123 Land Transport and Parking ............................................................................................. 128 Solid Waste ......................................................................................................................... 134 Urban Stormwater Services .............................................................................................. 138 Wastewater ........................................................................................................................ 142 Water Supply ...................................................................................................................... 148 SECTION 3: The Finances Introduction ................................................................................................................................... 154 Prospective Financial Statements ............................................................................................... 156 Financial Commentary ................................................................................................................ 159 Notes to the Prospective Financial Statements ........................................................................ 163 Funding Impact Statement ......................................................................................................... 184 Rating Information ........................................................................................................................ 211 Signifi cant Assumptions ................................................................................................................ 218 Glossary of Terms........................................................................................................................... 223
SECTION 4: Governance and Structure Council Governance and Structure ........................................................................................... 226 Council Controlled Organisation ................................................................................................ 229
VOLUME 2
Fees and Charges ................................................................................................................................ 232Policies Signifi cance Policy (draft for consultation) ................................................................................ 234 Development Contributions Policy (draft for consultation ...................................................... 237 Fostering Māori Participation in Council Decision-Making ...................................................... 253 Revenue and Financing Policy (draft for consultation) ........................................................... 255 Rating Remission, Postponement and Penalty Policies ............................................................ 288 Liability Management Policy ....................................................................................................... 300 Investment Policy .......................................................................................................................... 303 APPENDICES Council Contacts/Accountants ................................................................................................. 308
IntroductionIntroduction Foreword from the Mayor and Chief ExecutiveForeword from the Mayor and Chief Executive
Audit opinion Audit opinion
About this plan About this plan
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We are proud to present this draft 2012-2022 Ten Year Plan. You may recall that in September 2011 we asked you which major community enhancement projects Council should deliver for the district. We published a 'special edition' Town & Country Matters to get you thinking and we used your feedback to help prepare the draft plan. This draft Ten Year Plan sets out Council's proposals for the projects it intends to undertake, the budgets required and the priorities it has set, and of course the rates income required for the next ten years. Now is the time for you to have your input.
Rebuilding the War Memorial Theatre is a top priority and we are planning to begin this next year. This project has been consulted on before. The alternatives have also been fully investigated. Council and the Trust that has been set up to assist with fundraising are ready to go.
Council also plans to start extending the city’s hugely popular cycle and walkways from next year. An extension
to the library is also proposed to begin in 2012/13.
The inner harbour will be upgraded and we plan to bring the rich culture and heritage of the area around the Turanganui River to life as part of the Tairāwhiti Navigations Traditions Project. We need external funding, but we can do it - just look at the former 'Works' building now. The Olympic Pool is also still on the priority list for a $30 million redevelopment beginning in 2016/17.
It's unfortunate, but Council also has to strengthen or rebuild the part of its Fitzherbert Street offi ce building that was built in the 1950's as it is earthquake prone. Repairing the Cenotaph is still on the agenda and a complete rebuild is earmarked for the future.
Work on the Waiapu and Waipaoa River fl ood protection schemes will continue – however the level of investment needed for the Waipaoa scheme is considerably less than was originally planned.
All of these projects are possible because Council has managed its fi nances well over the past three years especially.
Our debt is down and Council has made signifi cant operating and accounting surpluses. We still need to be cautious though as low average incomes across the district continue to make rates unaffordable for many. Concern about the global fi nancial situation and the New Zealand economy remain with us.
Mayor and Chief Executive’s ForewordForeword
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In drafting the Ten Year Plan Council has tried to balance our community's ability to pay with the need to invest in community facilities and our core assets so that the district remains an attractive place to live and work. We must continue to foster pride among those who call Gisborne and Te Tairāwhiti home.
But let's not forget the many 'business as usual' activities that Council provides - water and wastewater, roads, parks and open spaces, animal control, fl ood protection and land drainage, biosecurity control and our planning and regulatory roles. The demand for these remains high and they all need to be paid for. A change to the way that solid waste is managed, especially to the way that the rural transfer stations are operated, has been necessary to save money and to allocate costs more fairly.
Following changes to the Local Government Act, this draft Ten Year Plan is required to include a Financial Strategy. Council has set out six key directions for achieving fi nancial sustainability. They are to:• minimise rates• keep Council's debt levels in check• have an emphasis on user pays• increase Council's non-rates income where possible• maintain existing services, activities and infrastructure• assist in improving the district's ability to pay.
The Financial Strategy includes limits on total rates and rates increases. Council aims to limit total rates to within 70% of Council's total funding requirements and to limit annual rates increases to within 3.1% - 5.5% of total rates over the period of the Plan. Debt will be kept in the low to medium band which Council describes at $18m to $55m.
Next year it is estimated that we will need to collect $49.07 million in rates. This is an increase of 4.4% on last year. This is a very good result considering the extra insurance costs and bad debts we have had to absorb.
Please read this document and let us know what you think by making a submission.
Meng Foon Lindsay McKenzieMAYOR CHIEF EXECUTIVE
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INDEPENDENT AUDITOR’S REPORT TO THE READERS OF
GISBORNE DISTRICT COUNCIL’SLONG-TERM PLAN STATEMENT OF
PROPOSAL FOR PUBLIC CONSULTATION FOR THE TEN YEARS COMMENCING
1 JULY 2012 The Auditor-General is the auditor of Gisborne District Council (the District Council). The Auditor-General has appointed me, Grant Taylor, using the staff and resources of Ernst & Young, to report on the Long-term Plan Statement of Proposal (LTP Statement of Proposal) for public consultation on her behalf.
The Auditor-General is required by section 84(4) of the Local Government Act 2002 (the Act) to report on:• the extent to which the LTP Statement of Proposal
complies with the requirements of the Act; and• the quality of information and assumptions underlying
the forecast information provided in the LTP Statement of Proposal.
We have audited the LTP Statement of Proposal of Gisborne District Council, incorporating volumes 1 and 2 dated 14 March 2012, for public consultation for the ten years commencing 1 July 2012.
OpinionOverall OpinionIn our opinion the LTP Statement of Proposal of the District Council incorporating volumes 1 and 2 dated 14 March 2012 provides a reasonable basis for long term integrated decision-making by the District Council and for participation in decision-making by the public and subsequent accountability to the community about the activities of the District Council.
In forming our overall opinion, we considered the specifi c matters outlined in section 84(4) of the Act which we report on as follows.
Opinion on Specifi c Matters Required by the Act
In our view:
• the District 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; and
• the underlying information and assumptions used to prepare the LTP Statement of Proposal provide a reasonable and supportable basis for the preparation of the forecast information.
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 14 March 2012, 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 District Council and the Auditor, and explain our independence.
Basis of OpinionWe 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 International Standards on Auditing (New Zealand). We have examined the forecast fi nancial information in accordance with the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information.
Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain all the information and explanations we considered necessary to obtain reasonable assurance that the LTP Statement of Proposal does not contain material misstatements. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.
An audit involves performing procedures to obtain audit evidence about the forecast information and disclosures in the LTP Statement of Proposal. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the information in the LTP Statement of Proposal. In making those risk assessments we consider internal control relevant to the District Council’s preparation of the LTP Statement of Proposal. We consider internal control in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District Council‘s internal control.
Our audit procedures also include assessing whether:
• the LTP Statement of Proposal provides the community with suffi cient 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 District Council’s fi nancial strategy, supported by fi nancial policies as included in the LTP Statement of Proposal is fi nancially prudent, and has been clearly communicated to the community in the LTP Statement of Proposal;
Chartered Accountants
Audit Opinion
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• thepresentationoftheLTPStatementofProposalcomplieswiththelegislativerequirementsoftheAct;
• thedecision-makingandconsultationprocessesunderlying the development of the Statement of Proposalarecompliantwiththedecision-makingandconsultationrequirementsoftheAct;
• theinformationintheLTPStatementofProposalisbased on materially complete and reliable asset or activitymanagementplans;
• theagreedlevelsofservicearefairlyreflectedthroughouttheLTPStatementofProposal;
• thekeyplansandpoliciesadoptedbytheDistrictCouncil have been consistently applied in the developmentoftheforecastinformation;
• theassumptionssetoutwithintheLTPStatementof Proposal are based on best information currently available to the District Council and provide a reasonable and supportable basis for the preparation oftheforecastinformation;
• theforecastinformationhasbeenproperlypreparedon the basis of the underlying information and the assumptionsadoptedandthefinancialinformationcomplieswithgenerallyacceptedaccountingpracticeinNewZealand;
• therationalefortheactivitiesisclearlypresented;
• thelevelsofserviceandperformancemeasuresarereasonableestimatesandreflectthekeyaspects of the District Council’s service delivery and performance;and
• therelationshipofthelevelsofservice,performancemeasuresandforecastfinancialinformationhasbeenadequatelyexplainedwithintheLTPStatementofProposal.
We do not guarantee complete accuracy of the information in the LTP Statement of Proposal. Our procedures includedexaminingonatestbasis,evidencesupportingassumptions, amounts and other disclosures in the LTP StatementofProposalanddeterminingcompliancewiththe requirements of the Act. We evaluated the overall adequacy of the presentation of information. We obtained alltheinformationandexplanationswerequiredtosupportour opinion above.
Responsibilities of the Council The District Council is responsible for preparing a LTP under the Act, by applying the District Council’s assumptionsandpresentingthefinancialinformationinaccordancewithgenerallyacceptedaccountingpracticeinNewZealand.TheDistrictCouncilisalsoresponsiblefor such internal controls as it determines is necessary to enable the preparation of a LTP that is free from material misstatement.
The District Council’s responsibilities arise from Section 93 of the Act.
Responsibilities of the AuditorWeareresponsibleforexpressinganindependentopinion on the LTP Statement of Proposal and reporting that opinion to you based on our audit. This responsibility arises from section 15 of the Public Audit Act 2001 and section 84(4) of the Act.
ItisnotourresponsibilitytoexpressanopiniononthemeritsofanypolicycontentwithintheLTPStatementofProposal.
IndependenceWhen reporting on the LTP Statement of Proposal wefollowedtheindependencerequirementsoftheAuditor-General,whichincorporatetheindependencerequirements of the Institute of Chartered Accountants of NewZealand.
Other than this report and in conducting the annual audit, wehavenorelationshipwithorinterestsintheDistrictCouncil.
Grant TaylorErnst & Young
On behalf of the Auditor-GeneralWellington,NewZealand
Matters relating to the electronic presentation of the Long-Term Plan Statement of Proposal
This audit report relates to the Long-term Plan Statement of Proposal (LTP Statement of Proposal) of Gisborne District Council, incorporating volumes 1 and 2 for public consultation for the ten years commencing 1 July 2012 included on Gisborne DistrictCouncil’swebsite.TheCouncilisresponsiblefor the maintenance and integrity of Gisborne District Council’swebsite.Wehavenotbeenengagedtoreport on the integrity of Gisborne District Council’s website.Weacceptnoresponsibilityforanychangesthat may have occurred to the LTP Statement of Proposalsinceitwasinitiallypresentedonthewebsite.
The audit report refers only to the information named above. It does not provide an opinion on any other informationwhichmayhavebeenhyperlinkedtoorfrom the LTP Statement of Proposal. If readers of this reportareconcernedwiththeinherentrisksarisingfrom electronic data communication they should refer to the published hard copy of the LTP Statement of Proposalaswellastherelatedauditreportdated15March2012toconfirmtheinformationincludedin the LTP Statement of Proposal presented on this website.
LegislationinNewZealandgoverningthepreparationanddisseminationoffinancialinformationmaydifferfrom legislation in other jurisdictions.
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What is a Ten Year Plan?This document is the Gisborne District Council’s Draft Ten Year Plan 2012-2022. The Ten Year Plan is Gisborne District Council’s commitment to you and your community. It tells you what activities and projects the Council is proposing over the next ten years, how much they will cost and how we are going to pay for them. Government requires all Councils to come up with a Ten Year Plan and review it every three years to make sure we are accountable.
How did Council decide what’s in the draft plan?Drafting Council’s Ten Year Plan is a lengthy and complex process. We have to think about current and future issues facing our district - such as population growth and affordability - strategies and policies that the Council and the community have worked together on, as well as activity plans and how much all this will cost. Most of what goes in our plan is what you’ve told us you want or what legislation tells us we need to provide. Council’s Early Engagement Programme carried out during August – October 2011 helped Council to make sure it was on track with the content and priorities included in this draft Ten Year Plan.
Why is it important to me?Council’s plans will affect everyone who lives in this district. Whether it is through the amount of rates you pay for the services we provide or through the activities we do in your neighbourhood.
Help make the district betterWe want to make sure that you know what’s being planned and how this affects you. We want you to have your say on the proposed plan and how you think
it will impact on the Gisborne district’s future. The formal consultation period for the draft Ten Year Plan runs from 20 March to 20 April 2012. A summary of this draft Ten Year Plan will be distributed to all households in the district around 20 March.
How to have your sayWe want you to have your say. You can do this in a number of ways:
• fi ll out the submission form in the Ten Year Plan summary and send it Freepost or by email to [email protected]
• Go to our website for more information. Make a submission online at:
www.gdc.govt.nz/ten-year-plan-submission.
• Attend a community update meeting near you. You can ask the Mayor, Councillors and staff questions and tell them what you think. The dates and venues are published in the summary.
• Present your submission to the Mayor and Councillors at the Ten Year Plan hearings in May.
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If your submission relates to waste or transport it will be used to help inform how money is spent in the Regional Land Transport Programme and the Waste Management and Minimisation Plan.
For full copies of these two documents and the Ten Year Plan you can visit the Council website or view a copy at:
• Gisborne District Council, 15 Fitzherbert Street, Gisborne, Ph 867 2049
• HB Williams Library
• Te Puia Springs Council Offi ce.
Council’s Ten Year Plan EngagementCouncil carried out an early engagement for the 2012-2022 Ten Year Plan. The early engagement programme gave you the opportunity to have your say on the big issues and projects affecting you and your family over the next ten years. The timing of the feedback allowed it to inform Council's activity management plan reviews, project prioritisation work that Councillors undertook in November and December and the drafting of the 2012-2022 Ten Year Plan more generally. This early consultation process was an important precursor to the formal consultation now underway.
The early engagement programme was extremely effective with 254 feedback forms received from a wide cross-section of the community.
The feedback showed a strong degree of support for the Council’s proposed Community Infrastructure projects with very strong support for the Walking and Cycleway extension. The early engagement also highlighted strong local community opposition to proposals to close the rural transfer stations at Whatatutu, Te Puia Springs and Tikitiki.
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Gisborne/East Coast - our futureGisborne/East Coast - our future Our District - fi rst to see the lightOur District - fi rst to see the light
Our Direction and Future Challenges Our Direction and Future Challenges
Financial Strategy Financial Strategy
Our Focus - Major and Collaborative Projects Our Focus - Major and Collaborative Projects
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Our district covers the largest land area in the North Island of New Zealand with 8,360 square kilometres of land. We are located in the north-eastern corner of the central North Island and are referred to as Tairāwhiti, the East Cape, East Coast and the Eastland region.
The unspoiled East Coast region is still one of the world’s best kept secrets and has inspired authors, poets, artists and wine lovers. It has some of New Zealand’s most exiting and consistent surf breaks as well as safe swimming.
Our UniquenessAs the site of the fi rst meeting between Māori and European, our district is rich in history. You can see Gisborne’s bi-cultural heritage everywhere from the elaborate Māori canoe masthead to the Cook Memorial. Over 100 marae in the district are living treasure houses of traditional Māori history. We have a unique population mix with the highest proportion of Māori (47%) compared to non-Māori in the country. At Kaiti beach, near the city of Gisborne, Māori landed their waka Te Ikaroa-a-Rauru. Here also was the fi rst landing place of Captain Cook in 1769, naming the area “Poverty Bay” previously known by the pre-Europeans as Tūranganui-a-Kiwa meaning “the waiting place of Kiwa” (who was said to have landed on our shores around 1450AD).
Overlooking our city and its rivers is Titirangi (Kaiti Hill), offering views of Poverty Bay and the surrounding rural areas. The white cliff headlands of Young Nick’s Head (Te Kuri-a-Paoa, The Dog of Paoa) stand out against the skyline.
In the distance stands Mount Hikurangi, the fi fth highest mountain in the North Island, and its highest non-volcanic peak. Hikurangi is the fi rst mountain in the world to see the sun each day.
Our District - fi rst to see the light
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Quick Facts
District Land area:8,360km (based on the highwater mark)
Percentage of total New Zealand land:
3.2%
Reserves: 959ha
Population: 44,460 (2006 Census)
Capital value: $8.5 billion (July 2011)
Land value: $4.8 billion (July 2011)
Average population density: 5.3 persons per sq km
Number of dwellings: 17,364
Number of rateable properties: 22,922
Council’s total asset value: $1.815 billion
Our LifestyleGisborne is home to a vibrant and progressive community, serviced by a full range of modern amenities. Our district is renowned for its warm climate with a total of 2,200 sunshine hours each year, and over 65 days where the temperature reaches above 24 degrees centigrade. Rainfall varies from about 1,000mm near the coast to over 2,500mm in the higher inland country. Property costs here are relatively low and wherever you choose to live, you’re never too far from the beach.
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Along with a number of national chain stores, the city’s numerous municipal facilities include excellent libraries, museums and theatres that stage some 40 plus performances every year. Our Tairāwhiti Museum and Art Gallery has a reputation as one of the most innovative regional museums in New Zealand.
Our EconomyGisborne is rich with business and employment opportunity. There are more than 2,800 businesses located in the Gisborne district.
Agriculture has been the most important industry since earliest settlement. However, agriculture has diversifi ed over the
years and now forestry, viticulture, horticulture and related industries
such as food processing are becoming increasingly important. Tourism has also
been targeted as an industry of high growth potential.
Gisborne is one of the three main grape growing areas in New Zealand. Here 1,724
h e c t a r e s support seventeen wineries including New Zealand’s largest winery. The Gisborne area is known as the Chardonnay Capital of New Zealand. The region has a particularly favourable environment for industry with a stable labour force combined with high tech skills associated with food processing and manufacturing.
In addition to all its natural advantages of mild climate, fertile soil and clean environment, the district has been developing infrastructure to match the district’s growth. Effi cient, frequent transport services link Gisborne with the larger population areas of Auckland and Wellington. Notwithstanding major city links, across our region lie 1,893 kilometres of roading allowing access to some of the most remote areas of New Zealand.
Port Gisborne Ltd has a positive commercial attitude and is capable of handling vessels of up to 190 metres in length and a draught of up 10.5 metres. There is a modern fl eet of cargo-handling equipment, a bulk handling installation, and cold storage facilities at the export wharf.
For manufacturing and food processing, the Gisborne District Council is able to offer an effi cient, reliable supply of quality water. Gisborne is also well served with a high-capacity network of electric power lines and substations covering the entire region. Virtually the whole of the urban area, including the industrial estate, is reticulated with natural gas.
Real estate prices present good opportunities. Commercial and industrial space is available at extremely moderate rates compared with those in other areas. The local building industry can handle all types of construction, including large factories and multi-storey buildings. There are registered architects who offer a full range of design services.
Our CommunityPopulationGisborne district is home to a population of 44,460 people with the majority residing in the city 32,530 (73%). The age distribution of Gisborne/East Coast district’s population is different from the national picture, with more children in the population than national averages and with fewer young and e a r l y - m i d d l e aged adults. Nationally, 60% of Māori were aged under 30 in 2006 compared with 56% in Gisborne.
Gisborne/East Coast district is predicted to experience an aging population in years to come.
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Māori make up almost one-half (47%) of the district’s population, more than three times the national proportion of 15%. Ngāti Porou is by far the most numerous iwi affi liation among Gisborne Māori, with 12,400 people identifying with that iwi.
Other iwi in the district includes Ngāi Tāmanuhiri, Rongowhakaata, Te Aitanga ā Māhaki, Te Whanau-ā-Kai and Ngā Āriki Kaipūtahi.
In 2006, Gisborne/East Coast district contained 4% of New Zealand’s Māori language speakers, with around 6,740 residents saying they were able to hold a conversation in Māori.
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Our Direction
Introduction to this sectionThe quality of a good plan is only as good as the information that is used to create the plan. This section sets out the most important factors Council took into account when developing its draft programme of work for the next ten years. More specifi cally we outline some of the major challenges and drivers that may impact on our district. We then explain the main elements that make up our strategic direction including our vision, mission, community outcomes, strategic challenges and strategies and plans.
Our fi nancial strategy is also critically important to our strategic direction as it addresses how we intend to sustainably fund the activities and services we provide and the assets we maintain in our district.
PART ONE: Future challenges and drivers for change
This section outlines the future challenges and drivers that were considered when Council developed its strategic direction (including its fi nancial strategy) and that subsequently infl uenced decisions that were made on the types of activities and services that are provided for in this draft Ten Year Plan. The next few pages describe the district’s social, political, environmental and economic challenges and drivers for change.
Social FactorsPopulation TrendsThe population of the Gisborne district is projected to remain at around 46,000 up to 2031. However, the makeup of our population and where people live within the district is changing.
The average age of those living in the Gisborne district is increasing because of a steady increase in longevity and the ageing of the “baby boom” generation. At present the resident population aged 65 years or more is estimated at under 6,000. However, in 20 years time, the number is projected to be around 10,000. This is an increase of 70%. The working age population is also expected to decline. This year the population between 20 and 64 is estimated to be 26,000. This is expected to decrease by 11% to around 23,000 in 2031.
This changing demographic will mean there will be increasing demands for policies to meet the needs of older people.
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This may include increased demand for services and infrastructure that increase mobility and accessibility such as more comprehensive public transport, accessible parks and public walkways and passive recreation opportunities more generally. Gisborne District Council is currently reviewing its Positive Ageing Strategy to ensure the needs of this group will continue to be met into the future.
The population projection information also suggests that limited growth coupled with an ageing population, will mean that a focus on attracting businesses and or people to the region is going to be extremely important if the district is to remain affordable. Council, in partnership with Eastland Community Trust, is considering whether to form an Economic Development Agency. If this goes ahead funding would be redirected from Tourism Eastland and the Heart of Gisborne into a single organisation with wider responsibilities including: • Business development • Promoting the region • Events • Tourism• Promoting the city centre.
This would be a major change to how Council invests in economic development in the region.
The location of those living in the district is also set to change in the next 20 years. Smaller rural communities in the west of the district and the East Coast continue to decline in number. The populations in these communities are projected to reduce by 6.5% by 2031. Council will continue to work with these communities, through Township Plans, to help them remain socially and economically viable and attractive places to live.
Social TrendsGisborne has a relatively large population of young people with 22% of the population between the ages of 10-24 years. A report produced by the Department of Labour in 2008 illustrated that youth in both Gisborne and Hawkes Bay regions had a higher rate of being not in employment, education or training than the national average. The qualifi cations held by youth in both Gisborne and Hawke's Bay Region were also lower than the national average. The Tairāwhiti region also has a deprivation ranking of 9 (10 being the highest rate of deprivation – 1 being the lowest).
High deprivation rates, coupled with the possibility of future decline in social services (such as health and education) and a static population needs to be considered when planning for Council services and activities. These future trends suggest that attention should be placed on identifying ways to attract people to the region while assisting the development and growth of communities to develop themselves positively.
Political FactorsTreaty SettlementsThere are a number of Treaty of Waitangi claims within the region that are about to be settled. These include settlements for Ngati Porou, Ngai Tamanuhiri, Rongowhakaata, Te Aitanga a Mahaki and affi liates.
These settlements are of great signifi cance to the region. They will result in addressing a number of longstanding grievances that some Iwi and Hapu in our region have had with the Crown. The settlements will also result in commercial and cultural redress that is likely to change the business, and cultural landscape within the region.
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Currently, there are two Settlement Bills that will directly impact on the way Council does business. The fi rst is the Ngai Tāmanuhiri Settlement Bill. This Bill will result in the establishment of a Local Leadership Body which will create a Joint Committee of Council and provide a vehicle for Tūranganui-a-Kiwa Iwi to have meaningful input into Council business with a particular focus on the natural and physical resources within the Turanga rohe. The operation of this agreement needs to be compatible with the Local Government Act and Resource Management Act (RMA) and the role and purpose of Council under those Acts.
The second is the Ngāti Porou Settement Bill which contains clauses that will affect the development of new resource management plans, and their administration. Cultural redress clauses within the Bill are also likely to impact on Council through the revision of our road naming policies, Maori language use policies and the like.
In addition to these, the Crown has also entered a draft agreement with Nga hapū o Ngāti Porou relating to the foreshore and seabed. This deed is likely to be given effect to by special legislation. That legislation will impact on the administration and review of the Gisborne Coastal Environmental Plan prepared under the RMA.
Council will need to work with Iwi to build its own capacity and capability to support requirements given effect to by the Settlements.
New Legislation2010 Amendments to the Local Government Act 2002 This draft Ten Year Plan is the fi rst plan prepared by the Council under the provisions of the 2010 amendments to the Local Government Act. The amendments include a number of signifi cant changes that have impacted on the preparation of this draft Ten Year Plan. These include: • A change to the defi nition of community outcomes
to only those areas in which the Council itself aims to achieve. More information on how Council has responded to this change is described on page 32.
• The necessity for the Council to produce and include a Financial Strategy within its Ten Year Plan. Council’s draft Financial Strategy is on page 40.
• New additional fi nancial disclosures.
Resource Management Act ReformsThe Government has signalled that it may announce changes as part of Phase II of the Resource Management Act reform in the fi rst half of 2012. These reforms are likely to include more emphasis on using spatial plans that provide clear strategic direction of urban growth, and the use of new tools to promote a higher quality of urban design.
The current National Party-led Government has been keen to promote the use of National Policy Statements and National Environmental Standards to promote more national regulatory consistency and achieve increased effectiveness of RMA instruments. Such approaches are not always useful for the Gisborne context, as the growth dynamics, scale and nature of environmental issues and social, economic, geological and cultural conditions in this district are quite distinct from many other parts of New Zealand. When the government embarks on such initiatives it is not always easy to provide adequately for the special conditions of the Gisborne environment. The Proposed Environmental Standards for Production Forestry and the National Policy Statement on Freshwater Management are key examples of this.
Council is keen to see that the Phase II reforms allow for a practical resolution of the problems that the compulsory review requirement of the Regional Policy Statement causes. For a unitary Council like Gisborne the benefi ts of this instrument are limited, as there is no co-ordinating role for any territorial local authorities in the region. Council staff are liaising with other unitary Councils and the Ministry for the Environment in an effort to make the review of this policy instrument optional for unitary Councils, thus removing an onerous task with limited benefi t from the Council’s and stakeholders’ work list.
Environmental FactorsClimate ChangeWhile debate continues as to the causes and effects of climate change there is no doubt this is an issue that needs to be addressed both locally and globally. Predictions from the International Panel on Climate Change (IPCC) include sea level rises of up to 50cm by 2100. In early 2009 Council released to the public, a comprehensive update on climate change predictions, Government policy developments and implications for the future. In Gisborne there is predicted to be an average temperature rise of 2.1 degrees Celsius, and 5% less overall rainfall by 2090. There will be more heavy rainfall events. This will affect most Council activities, with the obvious impacts being on water supplies, storm damage, coastal development, drainage and primary production. Predicted climate changes and resulting impacts will also continue to be factored into Council’s planning and works design activities.
The Emissions Trading Scheme (ETS) brought in by Government to assist New Zealand to meet its international obligations will have signifi cant local impacts. Additional costs have been imposed on fossil fuel use, and the clearance of indigenous or exotic forests to pasture. When agriculture enters the scheme in 2015, processors of the produce will also face charges that will inevitably fl ow onto farmers.
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The Council has undertaken an assessment of the ETS on its operations and has put in place a Carbon Management Policy (CMP). The CMP will help manage the considerable uncertainty that surrounds ‘carbon prices’ and ensure that the Council meets all of its legal obligations under the New Zealand Emission Trading Scheme (NZETS), and related legislation.
A complete inventory of the Council’s post 1989 and pre 1990 forest lands has been compiled and these have been registered in the ETS.
The Council will actively consider opportunities, including new technologies and investment, to reduce greenhouse gas emissions and liabilities from its wholly-owned landfi ll operations and its waste disposed of in third party landfi lls.
HazardscapeNatural hazards have the potential to signifi cantly disrupt the e c o n o m i c , e n v i r o n m e n t a l and social fabric of the community. For instance, while the Gisborne earthquake in December 2007 did not result in loss of life, it is
estimated to have caused up to $50m in damage to public and private property.
Council has a long-running programme of assessing and managing a range of natural hazard risks to reduce the risks to life and property. There are RMA planning provisions and building standards from the Building Act that help to avoid or mitigate risks where practical. Council's earthquake prone building policy requires earthquake strengthening of buildings that are not up to modern earthquake protection standards.
In some instances, Council provides protection works, funded though targeted rates, to reduce hazard risks. Schemes like the Waipaoa Flood Control Scheme have signifi cant benefi ts in protecting Gisborne’s urban area and the productive capacity of the Poverty Bay Flats with the fl ooding from Cyclone Bola in 1988 still a recent memory for some people.
The Gisborne Civil Defence Emergency Management Group Plan contains measures to promote that the district is resilient in the event of natural hazard events and other emergencies and it provides for a coordinated and effective response to such events.Upcoming work on hazard management includes a coastal hazard assessment for Hicks Bay and Te Araroa and better responses to the risks of tsunami.
Council is looking, with other stakeholders including the National Rural Fire Authority, Wairoa District Council, the Department of Conservation and the commercial forestry interests in the region, to see whether a better integrated rural fi re service across Gisborne and possibly Wairoa can produce economies, whilst providing similar or better levels of service. At the time of writing this plan, the stakeholders had not yet produced a proposal for such an enlarged rural fi re district.
Land UseSome of the key land use changes likely to have an impact on Gisborne communities and the environment over the coming decade are the increase in forest harvesting and growth in the number of households in Gisborne City.
Plantation forestry continues to grow as a major industry in the Gisborne district. Projections are that there will be a 'wall of wood' leaving the Gisborne Port over the next 20 years. Increased heavy vehicle traffi c to the port, which is situated in the middle of the city, inevitably will confl ict with other environmental aspirations, and this issue needs to be managed carefully.
There are large economic benefi ts from forestry. Plantation forests also provide valuable services in assisting to control soil erosion and storing carbon. However, if harvesting is not carefully managed, any erosion and sediment control benefi ts provided during forest growth can be quickly undermined and cause irreparable damage to downstream ecosystems. Council’s role is in ensuring that the adverse effects of harvesting are managed and ecosystem integrity is maintained.
Growth projections for Gisborne estimate that, while total population is likely to remain at similar levels in the medium term, the number of households in Gisborne City is projected to increase by 2,400 by 2031. Where the new households are sited will have implications for the initial capital and ongoing maintenance and depreciation costs of supporting infrastructure. We need to better understand the full short and long term fi nancial implications of decisions on urban form.
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Council's policy is to keep Gisborne's urban area compact, but the immediate costs of infi ll and redevelopment can often be higher than greenfi eld development, and these realities need to be managed carefully. ErosionThe Gisborne district's young and soft soils make the land in our district highly productive. However, large areas of the district’s hill country are extremely erosion prone. This is a major issue for the rural economy, but very signifi cant progress is being made. Council continues to work alongside Central Government to address this. Central Government provides grants as part of the East Coast Forestry Project and Gisborne District Council’s Sustainable Hill Country Project (SHCP) provides a regulatory format to underpin Central Government’s role. The SHCP requires the establishment of tree cover on the most erosion prone (Overlay 3A) land. Council continues to work with landowners to verify treated Overlay 3A land and to develop work plans for such land yet to be treated. Our District Plan stipulates that this process was to be completed by June 2011 however, given the complexity of the farm management decisions to be made, particularly on larger properties with large areas of 3A land, the deadline has been extended.
Central Government has proposed a National Environmental Standard (NES) for plantation forestry. If formally approved this will put in place a set of rules and standards for most forest activities that will apply across New Zealand irrespective of differences in land, climate, water bodies and community values. The proposal would override Council’s current planning provisions (Overlay 3A) and remove Council’s ability to set conditions on harvesting activities such as replanting specifi cations and harvesting methods. It would lower present environmental standards for forestry activities in this district. Council has been able to infl uence the direction of the NES in some other
important areas and will continue to make comment as far as the very limited statutory process allows.
Water Quality and SupplyOur communities rely on suffi cient clean water to sustain life, grow food (both for local consumption and for export markets), maintain ecosystems, and carry
out a range of cultural and recreational pursuits. Lower rainfall in summer months can sometimes constrain the water available for domestic and irrigation purposes and for maintaining native freshwater fl ora and fauna. In addition, while our young soft soils may make the land in our district highly productive, they also result in naturally high sediment loads in rivers and coastal waters. Sedimentation is exacerbated by human activity and requires careful management to ensure fresh and coastal water values are sustained.
Council manages water quality through a number of provisions in planning documents including:• Requirements to plant trees on the worst eroding
land in the district to reduce erosion and sedimentation of waterways
• Provisions in the Discharges Plan to manage point sources discharges to water.
Council is also working with a Fresh Water Advisory Group of key stakeholders to identify the economic, ecological, social, recreational and tangata whenua values of freshwater across the district. The Group is comprised of a wide range of freshwater interests from tangata whenua to agricultural to recreational interests. Understanding the various freshwater values across the district is the fi rst step in developing a plan for managing our district’s freshwater. Council is aiming to have a draft plan that will go out for public consultation in the second half of 2012. In the meantime, Council has prepared a Freshwater Discussion Paper for community comment.
WasteIn 2010, a total of 13,735 tonnes of waste from Gisborne district was disposed to landfi ll. At approximately 0.305 tonnes per year per capita, this is the lowest per capita waste level of districts/regions of a similar size. The challenge for the district is to fi nd ways to continue to reduce all waste streams in the face of rising transport costs and tough economic times.
Council has prepared a draft Waste Management and Minimisation Plan so that Council can infl uence, promote and implement measures to reduce and minimise waste to landfi ll. This draft plan is being consulted on in conjunction with the draft Ten Year Plan.
Total Waste(tonnes - per person -
per annum)
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Oil explorationGovernment has a Petroleum Action Plan that seeks to maximise the return to New Zealand from it's petroleum
r e s o u r c e s . Fundamental to this has been the allocation of p e t r o l e u m e x p l o r a t i o n r i g h t s . R e c e n t l y e x p l o r a t i o n r ight-holders have been siesmic testing possible oil
or gas holding geological formations, both off shore and on shore. Tag Oil/Apache have indicated an intention to drill two exploration wells in the Waitangi-Kanakanaia area. If these are successful, other wells may follow. Although there have been wells sunk previously without success, this time confi dence appears to be much higher, driven by petroleum prices and new technologies.
There has been wide public interest in the exploration activities, mainly around possible adverse environmental effects. Marine spills and "fracking" (the fracturing of target rocks at depth by high pressure liquid discharges) are of particular concern. On land and out as far as the 12 nautical mile limit these activities are managed through provisions in Council's statutory plans prepared under the RMA. Council will be tasked with ensuring community concerns about environmental effects are appropriately addressed.
Economic FactorsEconomic OverviewContinued global uncertainty, with the sovereign debt problems in Europe to the fore, is tainting the economic outlook for New Zealand. Growth is expected to be steady but lower than earlier forecasts. New Zealand's key trading partners are still performing "satisfactorily", indicating that New Zealand’s short and medium term growth will be at best steady.
Gisborne’s economic growth for the year to March 2011 was relatively small at 0.6 % compared to the previous year’s growth of 2.1 %. Agriculture and forestry are the largest industries in Gisborne accounting for 25% of total GDP, with manufacturing the second largest industry contributing 13.2% of the total GDP. Both of these industries have shown a small downturn over the last year to March 2011 with forestry prices down 12% since their peak in mid 2010. The volume of logs exported from Eastland Port continues to rise monthly with an additional 330,000 tonnes exported this year to November in comparison with the same period last year.
While the wholesale and retail trade sector made the largest contribution to overall growth in the Gisborne district during the year to March 2011 it is expected that households will spend less and businesses will be cautious about investing. Consequently the local retail market is expected to remain relatively fl at with new jobs rising only modestly. Total employment in Gisborne was 20,495 in the year to March 2011, down 1.1% on the previous year. Employment growth in Gisborne averaged 0.8%p.a. between 2001 and 2011 compared with 1.6%p.a. in the national economy.
Growth within the district over the 2012 year will be signifi cantly less than the forecasted national rate of 2.2% to 3.0% and more in line with last years 0.6% given the concentration of both resources and activity in the rebuild of Christchurch.
Energy ElectricityThe Gisborne district continues to face some of the highest costs for electricity and in some areas, the least reliable supply. While the district continues to face an electricity constraint as transmission and distribution lines into the district move towards capacity, Transpower continues to deliver more from the system by lifting grid and system performance. In addition Eastland Infrastructure continues to search for and evaluate renewable energy options.
Peak OilPeak oil is not a "theory". Because oil is a fi nite resource, it is an inevitability.
The debate is all about its timing and about the production of conventionally extracted oil. The world has used less than half of the planet's conventionally extracted oil, but the remaining resources will be more diffi cult and expensive to get out of the ground, slowing production and increasing prices of crude.
In the Gisborne district, transport uses the lion share of fossil fuel. These volumes can only be expected to increase as the district moves closer to its peak log harvest volumes in 2019.
To meet energy needs, the Gisborne District Council continues to work with various groups to promote a portfolio of supply and demand solutions. The Council has in place an Energy Strategy which is under review given the release of the new national energy strategy in August 2011.
Council’s current Energy Strategy aims to proactively manage the Council and district energy needs to ensure a sustainable energy future maintaining that the future demand can be met by:• Promoting energy effi ciency
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24
• Encouraging the effective use of energy resources through energy management plans, procedures and technology
• Encouraging investment in local small and micro generation facilities.
Over the last year the Council has provided support for a number of programmes from the insulation of houses to curtain banks and business energy audit programmes. In addition the Council has taken further steps to advance its monitoring of its own energy use with the implementation of the eBench monitoring service.
The eBench programme allows the Council to effectively measure electricity, gas, wood fuel, petrol and diesel consumption and the resulting carbon emissions which result from this consumption. Council is currently reviewing the recommendations contained in previous energy reports undertaken over the last few years on Council's larger power consuming assets. On completion of the reviews further consideration will then be given to placing the audit reviews on a fi ve year cycle.
Many energy projects have not only social, economic and cultural benefi ts, but also environmental benefi ts, since less energy used means lower greenhouse gas emissions and a smaller carbon footprint for the district. The revised strategy will continue to work on reducing the Council and the district’s carbon footprint.
Housing AffordabilityNew Zealand and subsequently the Gisborne district are coming off the back of a period of soaring house prices and a declining rate of home ownership. In addition the changing housing needs within the district are following national trends. The retiring baby boomers
are looking to move out of their larger homes into smaller units and more typically into multi-unit c o n s t r u c t i o n developments . C o n s e q u e n t l y the growth of new household formation is in the couple-only and single person households as
evidenced by the growth in the Beetham and Ryman retirement villages. A signifi cant proportion of new construction will continue to be for units connected to multi-unit retirement complexes. However in the medium term the majority of new house construction locally will continue to be dominated by those that can afford to build a large (fl oor area 200m² plus), modern, energy effi cient, four bedroom family home.
The home ownership aspirations of young families are currently not being met due to the high cost of new housing and the poor quality or location of the existing housing stock. Consequently the number of renters will continue to grow and while the reasons for the declining ownership vary, all families still aspire to ownership with the main barrier being affordability.
The rising cost of living has contributed signifi cantly to the lower rates of home ownership with both the cost of land and house construction rising signifi cantly since the mid 1990’s. The trend over the last two decades towards double income households saw a major lift in demand with the prices of homes increasing signifi cantly, putting them out of reach of the single income family.
In addition the increase in the cost of energy over the last decade has made the purchase of a pre 1990 house even less affordable due to their sub standard, or total lack of, insulation. This is slowly being corrected through the Gisborne district-wide warmer homes insulation programme which has been in operation for the last 5 years. While the programme has targeted owner occupied housing in the past, an increasing number of rental properties are now being retrofi tted.The impact of an aging population moving out of the three to four bedrooms home is likely to see an increase in the available housing stock resulting in the prices for the lower quality houses to fall signifi cantly. While this may improve the affordability of homes, purchase will depend signifi cantly on the availability of fi nance at an attractive rate for both the purchase and the upgrade of such houses.
Currently New Zealand’s social housing sector is undergoing signifi cant reform to meet New Zealanders’ changing and increasing social housing needs. While the Council is not in a position to grow its own social housing stock, the Gisborne District Housing Advisory Group, within which the Council participates, will continue to monitor housing demand and social housing delivery locally. In addition the Council will focus on providing support for the development of initiatives to improve social housing locally and lobby Central Government on housing issues critical to the well being within its communities. Unlike other parts of New Zealand, Gisborne does not face a shortage of residential land for new development and signifi cant infi ll capacity is also available. The signifi cant areas of land zoned for residential development would help to keep residential land prices in check.
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BroadbandThe Government’s objective for the Ultra-Fast Broadband (UFB) initiative is to accelerate the roll-out of ultra-fast broadband, deploying optic fi bre infrastructure to 75% of New Zealanders by the end of 2019. In addition the Government
has in place a Rural Broadband Initiative (RBI) bringing
ultra fast broadband to rural schools and communities.
The initial plan for the district will see the majority of schools, all hospitals and the new and upgrading of wireless sites completed by June 2013.
Broadband is a general purpose technology (GPT): it is an enabler and its value depends on the applications it will support and the benefi ts these applications bring to businesses and consumers. Broadband has the potential to develop many complementary innovations that fuel economic growth. While some sectors can extract signifi cant benefi ts from low speed broadband, such as on-line banking services, higher speed (above 50 Mbps) and symmetric data transfer is required for high quality video and audio and high volume data applications.
In general, businesses may benefi t from broadband, through the deployment of productivity-enhancing applications within their businesses, through complementary innovation and the development of new products and through closer connection with markets and the identifi cation of market needs. In effect many businesses and organisations will be less isolated and as a result become more integrated in the national and global communities.
Broadband will have a bigger impact if businesses are prepared to use it and see it as a core part of their business strategy. In addition income tends to affect broadband uptake and those communities with higher social deprivation will show a low level of demand for broadband if specifi c support programmes are not in place.
The Council recognises that where communities are well connected through technology they are more creative, innovative and vibrant and consequently will work to encourage corporate social responsibility programmes.
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Council will help provide and support local and Central Government intervention where required through marketing/education, plus through design and adoption of e-government services that enable and encourage consumers and businesses to join the information society.
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PART TWO: Our strategic direction
VISIONFirst to see the light.
First choice for lifestyle
and people,
enterprise and
environment
Ka mau te wehi
Financial Strategy
Activities22 Groups of Activities
Plans, Policies and
Strategies
MISSIONLead and support the
social, cultural,
economic and environ-
mental development of
our communities
Mō tātou te Tairāwhiti
TEN
STR
ATEG
IC C
HA
LLEN
GES
SEV
EN V
ALU
ESGi
ving
serv
ice,
solu
tion
focu
s , in
nova
tion,
wor
king
toge
ther
, le
arni
ng a
nd im
prov
ing,
can
-do-
attit
ude
and
doin
g it
right
the
first
tim
e.
COMMUNITY OUTCOMES(revised - eight outcomes reflecting community wellbeing/aspirations)
COMMUNITY WELLBEING(community aspirations)
How
Cou
ncil
cont
ribut
es to
ach
ievi
ng o
utco
mes
Cou
nci
l’s S
trat
egic
Fra
mew
ork
Environmentally Sustainable Tair whiti / Tair whiti Ukauka Taiao
Safe Tair whiti / Tair whiti huru M wai
Healthy Tair whiti / Tair whiti Hauora Pai
Vibrant Tair whiti / Tair whiti T Ihiihi
Connected Tair whiti / Tair whiti Hononga Rau
Prosperous Tair whiti / Tair whiti Hua T nui
Skilled and Educated Tair whiti / Tair whiti M tau Nui
Empower Tair whiti / Tair whiti Whakamana Tangata
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Our road mapOne way of looking at our strategic direction is to think about our strategy as a road map requiring a series of planned steps to achieve the ultimate goal of arriving at a destination.
The destination for our road map is the achievement of community wellbeing through having in place the things that make this district a better place to live in. How the Council does this is described by our eight community outcomes. These outcomes outline how Council intends to promote social, cultural, economic and environmental wellbeing in the district.
Our Councils vision, mission, values, strategic challenges, strategies plans and policies and services and activities are all the places that we need to plan for in order to reach our destination.
The parts of our strategic direction are broken down below and then explained in the next few pages.
Community wellbeingOur community’s aspirations and description of what wellbeing means.
Community outcomesOur Council's contribution to promoting community wellbeing.
Vision, mission and values
Our Council's internal direction to help us achieve our outcomes.
Strategic challenges
Critical short to medium term issues that need to be addressed in order to fully achieve our outcomes
Strategies, plans and policies
Our strategies, policies and plans help us defi ne what our contribution is as Council is not solely responsible for promoting wellbeing.
Activities
In order to achieve our outcomes, strategies, policies and plans our activities and services are organised into groups of activities.
Each of these have levels of service setting out the service that our community can expect to receive from an activity.
Financial strategy
Sets out the direction for how we are going to pay for our activities and services in order to achieve our outcomes.
Community outcomesWhat is community wellbeing and what are community outcomes?
Community outcomesOur Council's contribution to promoting community wellbeing.
Local authorities exist to enable democratic decision making and to promote the social, cultural, economic and environmental wellbeing of
communities (now and in the future). Community wellbeing can mean many things to different people. A useful way to look at community wellbeing is to consider what things would be in place in order to help you and your whānau/family have a good life.
Community outcomes are closely related to community wellbeing. Community outcomes are the things that a local authority "aims to achieve in order to promote the social, economic, environmental and cultural wellbeing of its district or region, in the present and for the future”.
What happened to the old community outcomes? At the time of the 2009-2019 Ten Year Plan, Council adopted eight community outcomes in a document called “Tairāwhiti by Choice”. The process for developing the outcomes in “Tairāwhiti by Choice” took over two years and involved over 70 different agencies and organisations from the public, private and not for profi t sector. The amendments to the Local Government Act 2002 changed the defi nition of ‘community outcomes’ from outcomes that the community defi ne (and own) to those that a local authority aims to achieve and is responsible for. The eight community outcomes identifi ed in Tairāwhiti by Choice are retained within Council’s strategic framework as community aspirations. These community aspirations as a whole defi ne what wellbeing is in this district.
How were the new community outcomes developed?At a workshop on 23 February 2011, Council agreed that it would adapt the Tairāwhiti by Choice community outcome statements to be more applicable to the aims and intentions of Council. Council formally approved the new community outcomes (otherwise referred to as Council Outcomes) for inclusion in the draft Ten Year Plan. Council’s new outcomes are outlined in the table below.
How do the outcomes link to the strategic direction?The community outcomes are central to Council’s strategic direction as they set out what we are aiming to achieve through the services and activities we provide. All of Council’s strategies, policies, plans, services and activities contribute to the achievement of our community outcomes. As you will see in this draft Ten Year Plan, each of our 22 activities identifi es which community outcomes they contribute to.
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Community Outcomes We aim to achieve... We support our outcomes by...
Environmentally Sustainable Tairāwhiti
A district where natural environments are protected, restored and/or utilised sustainably in a way that enhances them for the future.
• Providing a balanced regulatory framework that supports the natural and physical environment.
• Promoting and implementing systems and plans for the sustainable management of land and water resources.
• Proactively preserving and protecting indigenous biodiversity and ecosystems within the district.
• Supporting sustainable land use.
Healthy Tairāwhiti A district that has a healthy environment, easy access to active lifestyle facilities, high quality infrastructure and effective planning for a healthy and active community.
• Providing infrastructure and services for a healthy and active region ie safe drinking water and waste disposal services.
• Supporting leisure and recreational opportunities.
• Promoting and regulating for safe and healthy environments.
• Ensuring accessibility to services and that all citizens can move around safely.
• Advocating for community needs.
Connected Tairāwhiti A district that has essential infrastructure that is well planned, affordable, equitable and meets the needs of our community now and in to the future.
• Facilitating people, goods and information moving safely and easily around the district.
• Supporting and/or advocating for a range of sustainable and secure transportation systems, reticulation, communication, energy supplies and protective infrastructure.
• Assessing and managing risk effectively.
• Having a clear planning framework that guides the district's development and encourages opportunities.
Prosperous Tairāwhiti A district that is prosperous and an economy that is supported to sustainably grow, develop and diversify.
• Supporting communities and townships to be sustainable and prosperous.
• Providing services and infrastructure to help the economy develop, grow and diversify.
• Facilitating local, national and international business opportunities.
• Maximising benefi ts from economic initiatives and opportunities.
• Supporting innovative businesses to start up and relocate here.
• Encouraging investment in research and development.
• Supporting initiatives to attract talent, investment and visitors without compromising the environment, cultural values or social wellbeing and regulatory requirements.
Skilled and Educated Tairāwhiti
A district where infrastructure, leadership and advocacy supports our community to be highly skilled, educated and innovative.
• Advocating for education provision that meets lifelong learning needs, regional employment opportunities and encourages innovation.
• Providing centres of learning through supporting libraries and museums.
• Supporting leadership and education initiatives.
Vibrant Tairāwhiti A district that is vibrant and values our unique and diverse art, culture and heritage.
• Promoting, protecting and valuing local heritage.
• Supporting local art access and production.
• Providing public facilities and initiatives to enable cultural and artistic expression.
• Supporting the development of cultural, heritage, artistic and community groups in the district.
• Respecting and fostering a local sense of place.
Safe Tairāwhiti A district where communities are safe, caring and prepared.
• Providing information and emergency management solutions.
• Protection of people, properties and land from damage caused by natural hazards.
• Supporting and advocating for safer communities.
• Supporting and encouraging community capacity and capability building initiatives and processes.
Empowered Tairāwhiti
A district that leads and advocates for itself, encouraging and enabling all citizens to be actively involved in community life and participate in democratic processes.
• Promoting community wellbeing, participation and engagement.
• Recognising vulnerable and hard to reach communities and supporting their capacity to engage and participate in democratic processes.
• Advocating with and for our communities.
• Encouraging community responsibility.
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Vision, mission, values
Vision, mission and values
Our Council's internal direction to help us achieve our outcomes.
Since the last Ten Year Plan, Council has adopted and put in place the high level vision and mission of the organisation. Council’s vision and mission contributes to the achievement
of our high level community outcomes.
Council’s vision for the region is to be:“First to see the light. First choice for lifestyle and people, enterprise and environment - Ka mau te wehi!”
This vision sees Gisborne/Tairāwhiti needing to be more than a place for today. It sees a place for tomorrow as well so that those who follow after us inherit a district that is better than it is now. For Council this means taking responsibility for leading our communities now and into the future; not through directing, but through helping to shape, collaborating with and listening to our communities and seeking the best advice.
Council’s mission describes the purpose of Council and how it will achieve this vision. The mission is to:
“Lead and support the social, cultural, economic and environmental development of our communities - Mō tātou te Tairāwhiti”.
The mission gives effect to the purpose of local authorities as specifi ed in the Local Government Act 2002.
Seven values underpin Council’s mission and vision and infl uence the way the Council staff work with and for our communities and with each other. These values are:
• giving service • solution focus • innovation • working together • doing it right the fi rst time • can-do-attitude• learning & improving.
The performance of Council and achievement of the community outcomes, vision and mission are reliant on other important elements. These include strategic challenges, strategies, policies and plans.
Strategic challenges
Strategic challenges
Critical short to medium term issues that need to be addressed in order to fully achieve our outcomes
In 2009, Council adopted its ‘strategic challenges’ which sit within the context of Council’s vision, mission and values. The strategic challenges are a mix of internal and external challenges that identify critical
issues that need to be addressed in order to make the district “better than it is now”. The challenges and outcomes are listed below.
The Challenges we face are The Outcomes we Seek
1. Performance Culture: Creating a culture of performance in a semi political organisation with a limited budget in a relatively remote location.
Council is a high performer within its preferred cultural framework.
2. Governance Effectiveness: Earning the confi dence of the elected representatives and achieving aligned purpose.
A close and effective working relationship exists between elected members and staff that better contributes to community well-being.
3. Community Engagement: Engaging with the communities – especially Māori – within a demographically unique region.
We inter-connect with the community through collaboration and effective communication and there is effective Māori contribution to Council decision making.
4. Major Projects: Providing the district with the major community facility and infrastructure projects that are needed or desired.
The right projects are delivered at the right place, right price and the right time.
5. Natural Resource Use: Manage natural resources so that the aspirations for lifestyle, the economy and kaitiakitanga/ stewardship are recognised and the needs of future generations are not compromised
Natural resource use and development is supported to be sustainable through effective leadership, collaboration, advocacy, policy development and regulation.
6. Financial Sustainability: Living within our means in the face of prevailing economic conditions, government policy changes, affordability and the limits on rates revenue.
Current and future Council commitments are funded in a way that the community can afford and which meets Council’s stewardship obligations to the district.
7. Community Viability and Functioning: Improving community viability and functioning in light of economic, environmental and socio-demographic challenges affecting the district.
Communities are supported to be sustainable and prosperous so that they contribute to the district’s well-being.
8. Risk Management: Identifying and managing risks to enable best use of resources.
Business objectives will continue to be met despite adverse events or changes in circumstances.
9. Business Effi ciency: Improving the effi ciency of processes to add value for the benefi t of customers and the community.
Our business processes are optimised to produce high quality results within the political, regulatory and compliance environment.
10. Customer Need: Understanding and addressing customer and community needs in a proactive way while creating value.
An organisation that focuses on understanding current and future customer/community needs and addresses them in a way that increases value.
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Strategies, plans and policies
Strategies, plans and policies
Our strategies, policies and plans help us defi ne what our contribution is, as Council is not solely responsible for promoting wellbeing.
Council has around forty adopted or emerging strategies and plans that have infl uenced the work programmes, priorities and projects in this Ten Year Plan. This is important because it means that
almost everything in the plan has come from strategies and plans that have already been consulted on in the community. The timing, sequence and scale of the resulting projects have been prioritised by Council over the ten year life of the plan to be affordable.
The following plans or groups of plans are described here because of their level of importance in our Strategic Planning Framework. - Council’s Resource Management Act Plans.- The Gisborne Urban Development Strategy.- The District’s Ten Township Plans.- The draft Regional Land Transport Programme.- The draft Waste Minimisation and Management Plan.
Resource Management Act PlansThe Resource Management Act 1991 (RMA) establishes a framework for regulating adverse effects of activities on the district’s natural and physical resources. The diagram below shows responsibilities of various levels of government under the RMA.
As a Unitary Authority, with both regional and district functions, Council manages air, soil, water, the coastal environment, as well as land use in our urban centres, rural land use, and open spaces on behalf of the community.
Council’s regulatory framework consists of a Regional Policy Statement, several Regional Plans that cover coastal, water, air and land resources, and a District Plan covering land use, our urban form and functions. These plans include objectives, policies and rules.
Council is currently investigating ways to simplify and streamline its planning documents including moving to more integrated RMA plans.
The Regional Policy Statement (RPS) is the main vehicle for interpreting and applying the sustainable management requirements of the RMA in a local context. It identifi es key issues and objectives for managing our natural and urban environments and includes policies and methods to guide the development of the lower order planning documents such as the Coastal and District Plans.
A review of the RPS is due to start in 2012. One of the key matters to be considered during the review will be the shape and function of our urban form and how to give effect to non-statutory plans such as the Gisborne Urban Development Strategy and Urban Coastal Strategy. During the RPS review Council will also consider options for streamlining its RMA plans.
The Regional Coastal Plan regulates most activities in the coastal marine area (from mean high water springs out to the 12 mile nautical limit) and also includes objectives and policies for the land adjacent to the coastal marine area. The fi rst version of the Coastal Plan is almost operative with the sole outstanding issue being the protection of heritage values at the Cook Landing Site. The NZ Coastal Policy Statement 2010 will require several changes to be made to the Coastal Plan to give effect to Central Government policy. Pending priorities for action include: port operations, tangata whenua engagement, subdivision form and location in coastal environments, water quality management and vehicles on beaches.
The Regional Discharges Plan regulates activities (except in the coastal marine area) that produce discharges to land and water. The Plan was made operative in 2009. A change to the Discharges Plan is proposed currently. It aims to improve management of on-site wastewater management systems (eg septic tanks).
Council is currently developing a Freshwater Plan that will outline the management framework for freshwater resources in the district. It will set water quality standards and water allocation limits for ground and surface water in catchments. The Freshwater Plan is due to be published for public comment in a formal consultation process later in 2012.
Council also has a Regional Air Plan that was made operative in 2008, with a review due to start in 2018.
The District Plan outlines Council’s framework for the integrated management of the effects of subdivision and land development activities, and the control of those effects on the environment. It covers a broad range of subject material including cultural heritage, signs, papakainga and noise.
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It also outlines several land use zones and the rules for activities within those zones.
Most of the District Plan is now operative (excluding provisions related to the Cook Landing Site and regional provisions related to soil conservation that remain subject to appeals). There are several changes to the District Plan proposed at present to bring provisions into line with national best practice and local circumstances including changes to: • Infrastructure standards; natural hazard provisions;
and land use zoning along Awapuni Road (Gisborne) and Lloyd George Road (Wainui).
Changes may also result from the RPS review, while updates on a number of provisions may be required to refl ect changing conditions and policy initiatives.
Gisborne Urban Development StrategyThe Urban Development Strategy is a guiding document for spatial and physical planning for Gisborne city. It intends to give confi dence to the community and Council about the future direction of the city. It sets out seven ‘Key Directions’ and, for each of these, a set of objectives and actions. The Key Directions are:• Compact City• Quality Environment, Places and Spaces• Strong Neighbourhoods• Vibrant Culture and Identifi cation with Heritage• Articulation of the Māori Cultural Landscape• Support for Economic Development• Implement Best Practice and Integrated Planning.
Implementation of the Urban Development Strategy to date has focused on the following priority actions:• A review of Council’s Development Contributions
Policy. • Preparation of a Regional Public Transport Plan.• Safety and environment audits at Cook’s Plaza,
Bright Street bus stop and the I-site completed and implemented.
• Investigation of options for central city plaza.• A review of Infrastructure standards in the District
Plan.• Completion of a Streamside Planting Guideline.• Environment, amenity and safety audits for
suburban areas (parts of Kaiti and Elgin) completed.
• Adoption of an Arts and Culture Strategy.
Work to continue to implement the Urban Development Strategy over the next three years includes:• A review of the Gisborne Urban Area Boundary. • Central Business District Inner Commercial Design
Guidelines
• Planning and building of key cycle ways and routes around the city to enhance connectivity.
• Updating reserve management plans for Waikanae and Midway.
• Review of the land use zoning along Awapuni Road.
• Planning and design for enhancement of the inner harbour area.
• Preparation of a City Transport Study to defi ne freight routes.
• Review of infrastructure standards in the Engineering Code of Practice.
• Planning provisions to address areas of special character at Wainui/Okitu.
Township PlansTownsip Plans guide Council in planning for the future development and viability of specifi c rural townships in the Gisborne region. The Plans are non-statutory planning documents and are owned by each community.
To date Council has worked with communities to prepare Township Plans for Te Araroa, Tokomaru Bay and Tolaga Bay in 2006; Patutahi, Ruatoria and Te Karaka in 2008; and Manutuke, Matawai/Motu, Rangitukia/Tikitiki and Te Puia Springs/Waipiro Bay in 2011. Some of the community projects completed with Council assistance over the past fi ve years are:• Investigation of drinking water reticulation for
Manutuke township.• Establishment of a themed rest area in Motu.• Installation of a skate ramp and basketball hoop
at Patutahi.• Completion of stage one of the Waiapu Flood
Control project.• Upgrade of the main street in Te Araroa.• Erection of town sign in Tikitiki.• Establishment of a fi tness trail at Tokomaru Bay.• Installation of new play equipment in Tolaga Bay.The recently developed plans are more sophisticated in their community engagement and plan development with a much stronger focus on prioritisation and implementation planning.
of
e
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With that in mind, a review of the older Township Plans was instigated to bring them up to the same standard as the newer plans in time to feed township priorities into this Ten Year Plan 2012-22.
Each Township Plan identifi es vision statements that are further defi ned by a number of key goals. The statements and goals express the community’s desired direction for their townships to be considered by staff making decisions and carrying out activities that may affect each community. From the statements and goals, a number of priority projects are identifi ed for action by the community, Council and other agencies. All of the priority project tasks identifi ed in the Township Plans, where Council has a responsibility, are included for community consultation in this draft Ten Year Plan 2012-22.
Draft Regional Land Transport ProgrammeThe Land Transport Management Act 2003 requires Gisborne District Council to develop a Regional Land Transport Programme (RLTP) every three years.
Three regional transport priorities will infl uence which projects have the fi rst call on roading funds from Central Government - reducing fatalities and casualties associated with Gisborne roads, promoting security and reliability on our roading networks and promoting affordable alternative transport options.
Projects in the draft programme include:• Promoting road safety programmes aimed at
keeping young drivers and motorcyclists safe by reducing alcohol/drug impaired driving and keeping speeds down.
• A transportation study to review preferred heavy truck routes within Gisborne city.
• Strengthening the Gladstone Road Bridge. Currently it is restricting heavy transport use from the Western Industrial area to the Eastland Port.
• Funding $100 million of road maintenance and operations on state highways and local roads over the next three years to maintain our roading networks.
• Funding for new bus shelters and installing mobility ramps to approved taxi companies.
• Continuing minor improvement projects on sites with a history of accidents, e.g. road improvements to the intersection at Wainui and Rutene Road on SH35.
• Applying for funding to construct a cycleway from Wainui to Gisborne and introducing a pedestrian link over Waikanae Creek near Awapuni School.
The draft RLTP is being consulted on alongside the draft Ten Year Plan consultation process.
Draft Waste Minimisation and Management PlanCouncil must adopt a Waste Management and Minimisation Plan (WMMP) before 1 July 2012. The plan looks at how we manage our rubbish, who is responsible and who should pay.
It also looks at the challenges we face to reduce the amount of solid waste going to the landfi ll and how we will meet these challenges.
Gisborne is leading the way in reducing what we are throwing away. In 1995 we sent 70,000 tonnes of rubbish to the dump. In 2010 that was less that 14,000 tonnes - see Figure 1. The challenge is that decline has halted over the past two years.
FIGURE 1: How much waste each of us generates
One of the key issues in the draft plan is how to best manage the cost of dealing with rubbish in rural areas. Council no longer plans to close the rural transfer stations and recycling facilities will continue to be provided for free.
However, it is planned that all rural households within 15km of a rural transfer station will be rated $126 per year in addition to other solid waste charges. These households will be provided with 52 rubbish stickers per year and a new recycling bin. They will also be given a compost bin if someone from the house attends a Council compost workshop.
As with the draft RLTP the draft WMMP is being consulted on as part of this draft Ten Year Plan consultation process.
Other Key Council StrategiesOther key Council strategies that have infl uenced the work programmes, priorities and projects in this Ten Year Plan include:• 2006-2016 Gisborne Regional Land Transport
Strategy (RLTS)• Gisborne Regional Economic Strategy• Tairawhiti Positive Ageing Strategy• GDC Disabilities Strategy• Arts and Culture Strategy • Tairawhiti Youth Strategy • Gisborne District Council Energy Strategy
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• Whanau Tamariki Community Strategy• Safe Tairawhiti Strategy• Council’s Reserve Management Plans.
ActivitiesActivities
In order to achieve our outcomes, strategies, policies and plans our activities and services are organised into groups of activities.
Each of these have levels of service setting out the service that our community can expect to receive from an activity.
The business of Council is the activities and services that are delivered. Council has twenty two groups of activities clustered under fi ve groupings (see table below).
All activities contribute to the achievement of
Council’s community outcomes, vision and mission and strategic challenges. They are also aligned to Council strategies, policies and plans.
Community services & planning
Environmental policy & services
Governance & support services
Infrastructure services
Commercial operations
Arts & Culture
Community Housing
Community Planning &
Development
Parks & Open Spaces
Pools
Libraries
Animal Control
Building Services
Civil Defence & Emergency Management
Environmental Health
Environmental Policy
Environmental Services
Resource Consents
Governance
Support Services
Roading
Water Supply
Wastewater
Flood Protection
Stormwater
Commercial Operations
Leading into the draft 2012-2022 Ten Year Plan, Council restructured some of its groups of activities by moving components of activities into other areas (for example Māori engagement from Governance to Community Planning and Development) and adding the Resource Consents activity. The purpose of doing so was to better capture Council’s expectations for the services delivered within each activity.
The amendments to the Local Government Act 2002 requires mandatory reporting for fi ve groups of activities from 2014. These activities account for almost 70% of Council’s capital expenditure. They are:• The provision of roads and footpaths• Sewage and the treatment and disposal of sewage• Storm water drainage• Flood protection and control works• Water supply.
As you can see in the previous table we have clustered these groups of activities under infrastructure services. Our plans for the groups of activities and funding requirements are described further in section 2 of this report.
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Financial Strategy
Having a fi nancial strategy is one of the key tools to the Council achieving its vision for the future. It is a new requirement under the amendments to the Local Government Act 2002. It sets out the overall approach to the fi nancial side of the 2012-2022 Ten Year Plan based on the current fi nancial position and future direction of Council and our community.
Our draft Ten Year Plan shows that total rates are forecast to continue to increase by around 4% each year during the 2012-2022 period. The lowest levels of rate increases occur mainly towards the end of the ten year period. Council’s careful fi nancial management over the last three years has resulted in surpluses largely due to the corporate-wide drive to create effi ciencies. Council is now working harder and smarter with the funding we receive from rates.
Council ended the 2011 year with total debt at $33.9m, well below the planned level of $48.7m. The main driver for this favourable debt position was the continued tight fi nancial management and control of Council’s capital works programmes and projects. Council’s fi nancial performance over the past three years and lower-than-forecast borrowings has put Council in a strong fi nancial position.
The section on future challenges and drivers for change (outlined in Part One of this plan, page 18) discusses some of the demographic challenges that we will face and how these may impact on our fi nances over the next ten years.
The challenges include a fairly static population, but one where the average age of those living in our district is increasing and the working age population is decreasing. Our district has an affordability challenge where the mean income is well below that of the national norm. We are not anticipating any signifi cant changes in the use of land that would materially impact upon our fi nancial forecasts, plans, policies and strategies outlined in this draft Ten Year Plan.
What is Council’s fi nancial strategy?The overarching aim of our fi nancial strategy is to be fi nancially sustainable. To Council this means that our commitments (that are prescribed by statutes and what our community expect from us) are funded in a way that the community can afford and which meet Council’s obligation to be good stewards of the assets of the district. To achieve the aim of being fi nancially sustainable our fi nancial strategy sets out six key directions (elaborated further in this section).
Council will monitor the fi nancial strategy regularly through monthly and quarterly fi nancial reporting to Council through the Finance and Monitoring Committee. The Financial Strategy may be reviewed at any time if circumstances change. The strategy will be formally reviewed at three yearly intervals as part of the ten year planning process.
Financial strategy
Sets out the direction for how we are going to pay for our activities and services in order to achieve our outcomes.
Fin
an
cial S
trate
gy
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Financial Strategy Key Directions1. Minimise and smooth rates increasesTotal rates revenue will comprise up to 70% of Council’s funding requirements.Total rates increases will be between 3.1% - 5.5% of total rates over the term of the Plan.
2. Minimise debt levelsDebt will be kept in the low to medium band ($18m - $55m).
3. Have an emphasis on “user pays and benefi ciaries”The Revenue and Financing Policy including rates remissions policies will be used to allocate the cost of services and “public good”.
4. Increase other income (not from rates)Fees and cost recoveries will be consistent with those charged by other Councils or the private sector.Fees and charges will increase by infl ation at between 2% – 4% a year.The objective for holding and managing commercial investments is to provide income streams that are available to reduce rates. 5. Maintain (and in some instances decrease)
existing services, activities and infrastructureThe focus will be on delivering and maintaining essential services and infrastructure (community and network infrastructure) at their current levels. 6. Assist in improving the district’s ability to payEconomic agencies will be supported to assist in growing the district’s economy.Key stakeholders and others will be helped to improve the productivity of Māori land.Infrastructure to support and attract businesses into our district will be provided.Community infrastructure will be provided that attracts people to the district to “Live, Work, and Play”.
Key directions for the Financial Strategy
1. Minimise rates increasesLimits on RatesIn order to balance the rates affordability challenges and continue to provide services to our communities, Council has set the following limits on rates revenue and rates increases for the duration of this draft plan:• Total rates revenue will comprise no more than 70%
of Council’s funding requirements. This assumes that Council’s Council Controlled Organisations (CCOs) and other enterprise operations generate the budgeted level of revenue and provide Council with the agreed level of return to offset rates requirements.
• Total rates increases will be between 3.1% - 5.5% over the term of the Ten Year Plan.
This level of rates limits will enable Council to provide and maintain the existing level of services and to meet limited additional demands.
There can be large movements in some of Council’s rates, especially targeted rates, when services are extended or cyclical expenditure occurs (e.g. Waiapu river fl ood control, Wainui foredune protection). In setting limits on rates, Council has included a small level of fl exibility in the majority of years to allow for unforeseen events such as increased Central Government requirements or communities requesting additional services.
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Rate Movement
49 51 54 57 59 61 63 66 68 70
01020304050607080
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Total Rates $M
0%2%
4%6%
8%10%
12%14%
Percent Increase
014 2015 2016 2017 2018 201Ratestes % Increase
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Total Rates $M
49.1 51.5 54.3 56.8 57.9 60.7 63.4 65.5 67.7 69.8
Total Rates % Increase
4.4% 4.9% 5.5% 4.6% 3.7% 3.4% 4.1% 3.3% 3.3% 3.1%
Rates as a % of Total Income
62% 61% 58% 64% 65% 61% 60% 61% 65% 65%
Why not use the consumer price index as a base for Council’s limits on rates?The “basket of goods” which local government purchase is quite different from those that go into the running of a household. Council’s infrastructure spend of $44m includes bitumen for roading and plastic pipes for our utilities. The increase in costs in these areas are heavily infl uenced by the price of oil, as it is a raw material used in the production of bitumen and plastic.
Infrastructure services will also be effected by the rebuild of Christchurch and the impact that this may have on the availablility of skilled labour and contractors. Therefore for Council the consumer price index is not an appropriate measure on which to base limits on rates increases.
Balancing the budgetCouncil sets operating income at a level to meet each year’s operating expenditure. This is to ensure that there is access to enough funding to enable the services to continue to be provided long term. However, there are activities where this approach may not be practical or prudent due to the activity’s long term nature ie wastewater, forestry, soil conservation nurseries.Over the next ten years Council intends to:1. Smooth rates increases by running activity defi cits/
surpluses or repaying activity defi cits.2. Not fund a portion of depreciation on specifi c
assets or components of assets funded through capital rates or subsidies (i.e. waste water treatment plant and some roading assets).
3. Use operational reserves and/or activity balances to fund some specifi c operational expenditure where appropriate.
In making these decisions Council has considered the overall impact of its fi nancial management policies, level of service and ensured the cash fl ow is neutral or positive in each year (excluding major projects).
For more information refer to “The Finances” section of the draft Ten Year Plan.
2. Minimise debt levelsCouncil has a relatively low level of debt compared to similar councils which refl ects Council’s fi nancial strategy of minimising debt levels. Council takes into account the following when considering the appropriate level of debt:1. Possible impact on Levels of Service (LOS).2. Council’s ability to service and repay borrowing.3. Rates affordability.4. Deferred maintenance.5. Intergenerational equity.6. The long term sustainability of Council and its
activities.
BorrowingDebt is used to spread the cost of gaining major assets over time. Debt spreads the responsibility for funding an activity across both today’s and tomorrow's ratepayers, ensuring that all of those who benefi t make a contribution to the funding of a particular asset (intergenerational equity).
Council has forecast its borrowings at the beginning of the Ten Year Plan to be $37m. The borrowings graph shows debt rising to $41m in 2015. The debt profi le refl ects our proposed capital works programme. Total Borrowing
0
10
20
30
40
50
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Year
Debt $M
Total Debt
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$M $M $M $M $M $M $M $M $M $M
Total Borrowing
36 40 41 40 38 37 36 34 30 26
Interest 3 3 4 4 3 3 3 3 3 3
Limits on Borrowings Borrowing occurs to support working capital requirements and the Council’s capital expenditure programme. Council’s limits on borrowing were last set in 2009 and these maximum levels will not be exceeded during the 2012-2022 period.
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These limits provide a series of tests and the lowest of the test limits is used to determine the maximum borrowing limit. Council considers a low to medium level of debt ($18m - $55m) to be fi nancially sustainable over the term of the Ten Year Plan.
Council measures the fi nancial sustainability of its debt by the fi nancial ratios and limits set out in the Council’s Treasury Policy.
Current Debt Ratios and Borrowing Limits as set out in the Treasury Policy
GDC Current policy Limits 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Debt ($M) $18M - $55M 35.7 40.0 41.0 39.8 37.5 37.0 35.7 33.8 30.0 25.7
Net Surplus/ (Defi cit) (M) NA 1.4 4.2 10.6 3.5 2.2 8.4 10.5 8.9 1.4 0.5
Net Debt as % of Equity <10% 1.9% 2.1% 2.2% 2.1% 2.0% 1.9% 1.9% 1.7% 1.5% 1.3%
Net debt as a % of Income <95% 43.3% 45.3% 42.4% 43.1% 39.6% 35.2% 32.2% 29.8% 27.2% 22.5%
Net Interest as a % of Income <10% 3.39% 3.90% 3.75% 3.93% 3.70% 3.24% 3.01% 2.85% 2.75% 2.41%
Net Interest as a % of Annual Rate Income
<15% 5.45% 6.40% 6.42% 6.13% 5.70% 5.35% 5.03% 4.69% 4.24% 3.69%
Total Debt per capita <$1,700 767 858 882 855 807 795 766 726 643 551
Proposal to join the Local Government Funding Agency (LGFA)
Council proposes to participate as a “Principle Shareholding Local Authority” (PSLA) in the New Zealand Local Government Funding Agency Ltd (LGFA). The LGFA will be a Council Controlled Trading Organisation (CCTO).
It has been established as a co-operative by a large group of Councils and Central Government to allow Councils to borrow at lower interest rates and have easier access to long term borrowing. The government supports the LGFA and will have a shareholding of up to a maximum of 20%. The LGFA credit rating matches that of Central Government (AA+ ranking). This is a benefi t to smaller Council’s, like Gisborne, where the costs of getting a credit rating often outweighs the costs.
As Principal Shareholding Local Authority, Council will be required to invest $100K of capital in the LGFA. As a Principal Shareholding Local Authority we will be required to meet a certain proportion of our borrowing needs through the LGFA Scheme for an initial period. This is to ensure that suffi cient borrowings are channelled through the LGFA to ensure its success.
More information is included in the Council Controlled Organisation section of the draft Ten Year Plan. An Information Memorandum, describing the arrangements in more detail has been prepared and is available on request. Please contact Council’s customer services or visit the Council’s website: www.gdc.govt.nz.
Securities for Borrowings Council does not currently provide security over any specifi c assets. Council has a debenture trust deed, representing the interests of all lenders to the Council.
The debenture is a fl oating debenture but provides the lenders with a specifi c charge over the rates revenue of Council.
Intergenerational equityCouncil has a desire to build a better district for current and future generations. Council seeks to ensure that today's ratepayers pay only for the services and assets which it currently provides to the community and not for benefi ts that will be received by the community in the future. This is known as intergenerational equity.
Our strategy is to partially loan fund new major projects. This allows us to pay for the new facilities over a longer period of time, often 20 – 30 years. By doing this the people who use the asset in the future also help pay for the asset. If we didn’t do this today’s ratepayers would pay much higher rates.
Intergenerational equity is also achieved by funding the cost of renewing and replacing assets through rate funded depreciation reserves. Depreciation is the allocation of the wearing out of the asset over its life. By funding depreciation through rates current ratepayers are paying for the portion of the asset they are using.
3. Have an emphasis on “user pays and benefi ciaries”
Council recognises the concerns ratepayers have in terms of ability to pay for rates and aims to keep the level of income required from rates steady and smooth rates increases where possible. Council services are funded by a variety of rating tools. These are oulined below:• General rates pay for Council activities which the
community requires and has available to them but no identifi able person or property benefi ts. How much you pay depends on the capital value of your property. This makes up about 6% of a Gisborne City homeowners rate bill.
• Uniform Annual General Charge (UAGC) also pays for Council activities that everyone benefi ts from.
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These activities - library, museum, toilets and civil defence - are more related to the existence of a household than the value of the property. Every ratepayer pays the same amount whether you live in Tolaga Bay or Wainui – that’s why it is uniform. If you have two houses you pay two UAGCs. This makes up about 27% of a typical Gisborne city homeowner’s rates bill. The maximum level of rates income that a council can charge as UAGC is 30%. This is set by the Local Goverment Rating Act.
• Targeted rates (think user pays). The majority of our rates are based on what services - like drainage, public transport, water, stormwater, wastewater, roads and rubbish collection – you receive or have access to. If you can access them you pay. This makes up about 67% of a typical Gisborne City homeowners rate bill.
How Council uses these rating tools can impact on the incidence of rates across our district. Council has a focus on benefi ciaries/user pays, use of fi xed charges and the use of the UAGC to the maximum statutory level.
The overall effect of this is that rates levels in residential areas do not differ greatly between low and high value properties.
An example of the impact of revenue and fi nancing policy changes is seen in the high city residential capital value properties (capital values in excess of $800k) where rates increases are above 4%.
The policy changes which have given rise to this effect are:i) The rates funding of stormwater and building
activities is proposed to change from a fi xed amount per property to a rate based on the capital value of the property.
ii) The rates funding of resource consents monitoring and public advice is proposed to change from a fi xed amount per property to a rate based on land value of the property.
Unlike some other Councils, Gisborne does not use differentials (weighting) to increase rates to the business sector to the benefi t of the residential sector.
For more information refer to “The Revenue & Financing Policy" section and the "Rating Information" section of the draft Ten Year Plan.
Revenue & Financing Policy The Council reviewed its Revenue and Financing Policy as part of the draft Ten Year Plan preparation. The Revenue and Financing Policy determines from where and whom Council is seeking to fund its operations. The policy sets out why and how the funding sources are used.
In order to ensure the incentives the funding approach creates are consistent, Council applied the following general principles:
1. Increase in use of fees and charges2. Extensive use of benefi ciaries and user pays
through targeted rates3. Use of Uniform Annual General and other fi xed
charges to legislative maximum of 30%4. Use of targeted rates on Differential Rating Areas
and inner/outer zone 5. Limited use of Capital Value rates.
Despite these principles, there is an element of cross subsidisation in the way the rates are distributed across the district. This is appropriate as many goods and services are what are known as “public good”. Council has tried to manage the demand for goods and services in the pricing signals that rate setting and fees and charges send.
4. Increase other income (not from rates)Council mainly collects income through rates. The rates increases over the term of the Ten Year Plan have been smoothed with increases ranging from 3% to 5.5% pa (an overall average of 4% pa). The balance of the funding is from grants, subsidies, dividends and user fees.
Rates make up over 60% of the expected income in the 2013 year. There are no major changes anticipated for Council’s funding policies or sources of income over the term of the Ten Year Plan, therefore the Council Income Chart below is representative of the funding sources over the next ten years.
Where does the money come from?
Increasing income from fees and chargesThe Revenue and Financing Policy tries to ensure that those users creating the demand for activities and services will fund them (ie the user pays principle). This is from targeted rates or fees and charges. Council collects fees and charges for a wide range of activities it provides, based on cost recovery. Council’s strategy is to ensure fees and cost recoveries are set robustly and at a level consistent with those charged by other Councils or the private sector for similar professional work. The cost of Council providing services is increasing, therefore, Council’s fees and charges must also increase, most by infl ation at between 2% – 4% a year.
3939
Operating Income
Structuring of investments and commercial activitiesCouncil maintains a number of investments in Council Controlled Organisations (CCOs). Its largest investment is in Gisborne Holdings Ltd. The only trading operation of Gisborne Holdings Ltd is Tauwhareparae Farms Ltd. Council also runs a number of non-core activities. These include:
• Commercial Forestry • Commercial Property • Gisborne Vehicle Testing• Waikanae Beach Top 10 Holiday Park.
Council does not take a pure commercial approach to its investments. These investments are all located in the district and some are held for historic or legacy reasons. Revenues will vary and rates may need to be increased to offset reduced dividends sometimes.
Over the next three years Council will review the governance and ownership structures of these investments and commercial activities.
This will be with the view to ensure that returns are maximised for Council by having in place an effi cient management structure that provides a very strong business emphasis. This may involve introducing additional equity partners and/or disposal of underperforming investments.
Council’s primary objective for holding and managing these investments is to provide income streams that are available to reduce the rates. The quantifi ed targets for returns from these investments are set out below.
Other Investments – no return is budgeted for Council's investment in Civic Assurance and BOPLASS. Council's involvement in these companies is for operational rather than investment purposes.
2013 $000
2014$000
2015 $000
2016 $000
2017 $000
2018 $000
2019 $000
2020 $000
2021 $000
2022 $000
Gisborne Holdings Limited 784 940 750 750 750 750 750 750 750 750
Gisborne Holdings Ltd – interim dividend of $500Kpa, fi nal dividend making a total of 70% of the net distributable income
Waikanae Beach Top 10 Holiday Park 26 22 22 24 27 29 36 43 48 53
Waikanae Beach Top10 Holiday Park – 80% to 100% of the operating surplus as a dividend. In addition to the above dividend the park contributes approximately $200k pa in internal lease charges and $95k pa in overheads. It retains approximately $7k pa surplus to fund capital projects.
Gisborne Vehicle Testing Station 95 100 105 114 116 117 128 135 145 155
Gisborne Vehicle Testing – 80%-100% of the operating surplus as a dividend. In addition to the above dividend the GVT contributes approximately $50k in internal lease charges and $115k pa in overheads. It retains approximately $25k pa surplus to fund capital projects.
Forestry 0 0 0 0 0 0 0 0 0 0
Commercial Forestry – 90% of the cash surplus as dividend. Due to the uncertainty of the timing and amount of the forestry income it is considered fi nancially prudent not to apply the forecast surpluses/defi cits to offset rates at this time. The next major harvest is currently forecast to occur in 2019 and this will be reviewed in the next ten year plan.
Commercial property - 90%-100% of the operating surplus as a dividend. The make up and structure of this activity is currently under review. Initial indications show that the current non commercial property (i.e. stock paddocks and small holdings) will continue to require a rates income to cover ongoing operational costs, including the payment of Council’s rates.
5. Maintain existing services, activities and infrastructure
Council’s fi nancial strategy is one of maintaining existing levels of service, except for major projects. It does not propose anything signifi cantly new to current activities and services. Rather, it aims to focus on delivering and maintaining essential services and infrastructure (community and network infrastructure) at their current levels or improve them where there has been deterioration in the past.
Operational expenditureThe cost of Council doing its day to day business is driven by a number of factors. These include infl ation, debt levels, salary and wage infl ation, the amount of assets we own (and therefore have to maintain) and whether
we increase or decrease our services to the community. The pie chart below shows that Council's spend on infrastructure makes up 58% of our total expenditure.
How the money is spent
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Council has nearly $1.9 billion invested in fi xed assets. These are mainly used to provide essential services to our communities – roads, water, stormwater, wastewater, fl ood protection, parks and open spaces and community facilities. Council must ensure these assets are maintained and replaced if necessary so that the services they provide can continue now and into the future. The maintenance and depreciation on Council’s assets is costly. In 2013 depreciation is forecast to be $19m; this is 25% of our costs. Increases in depreciation costs have caused rates to rise in 2013 by 2.9%. Council’s repairs and maintenance for 2013 is estimated at $3m.
Operating expenditure
-
20,000
40,000
60,000
80,000
100,000
120,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Year
$000
Operating Costs Depreciation and Amortisation Finance Costs
Expenditure
2013
-$M
2014
-$M
2015
-$M
2016
-$M
2017
-$M
2018
-$M
2019
-$M
2020
-$M
2021
-$M
2022
-$M
Operating 55 57 58 59 62 65 67 70 73 76
Depreciation 19 20 21 22 23 24 25 26 27 28
Interest 3 3 4 3 3 3 3 3 3 3
Total 77 80 82 85 89 92 95 99 103 106
One factor which Council has had limited control over is the increase in insurance costs. The impact of the Canterbury earthquakes and a number of other natural disasters in the Asia-Pacifi c region have resulted in large insurance cost increases. For Council, insurance costs are estimated to increase by $800,000 in 2013 to $1.3m.
There is a growing level of rates owing on Māori land in our region. This is of concern to Council; however there are no quick fi x solutions to reduce it immediately. Council has conservatively forecast its bad debts to increase over previous Annual Plan budgets by about $500,000 in 2013 to $1m. Council intends to work with other agencies and Councils to look at options for increasing the ability and willingness of Māori landowners to pay their rates.
To offset these increases and being aware of rates affordability Council has committed to savings across the organisation. This may affect the speed of delivery of some community projects.
The New Zealand Transport Agency (NZTA) funds approximately 58% of our roading expenditure.
The Draft Ten Year Plan expenditure on the roading activity subsidised by NZTA is capped for three years at levels consistent with this level of funding.
Capital ExpenditureOver the last nine years Council’s core capital expenditure has ranged between $16m and $22m (excluding Regional Development Roading and the Waste Water Treatment Plant). Therefore we anticipate the capital expenditure to maintain Council’s asset base would continue at a similar level. Council proposes to spend $277m on capital projects over the next ten years. These are focused on core and major community infrastructure renewal projects.
To maintain our assets, so they provide the same level of service to the community, Council proposes to spend around $18 - $24 million a year on these routine/core projects. These are mainly renewals of existing assets that have come to the end of their useful life.
Council now has the capacity and is in a better position to undertake much needed major community infrastructure projects.
The major projects have been spread across the term of the Ten Year Plan as Council cannot afford to build them all at once. Council also anticipates obtaining external funding to help pay for some of the major community infrastructure projects. Capital projects - core and major
Managing capital project costs and debt Council now has staff dedicated to major project management. This has resulted in a marked improvement in Council’s ability to deliver the right projects at the right place, right price and right time. The Council has a programme of major community infrastructure projects planned for the next ten years. Potential funders of these projects have an expectation that Council will fund between 30% - 33% of most of the proposed major projects. This means that, for the agreed projects, Council will aim to achieve about 70% of funding from sources outside Council. When considering major projects Council is aware of the ongoing pressures on rates affordability.
The prioritisation of the TYP major projects involves considering the following for each project:
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• Spend• Speed of its implementation• Availability of suffi cient contractors• Funding.
Decisions on the funding of Council’s capital projects consider the following factors:• Who will use the assets or services provided (the
benefi ciaries)?• What is the impact on debt levels?• What is the impact on rates?• What is the total pool of grants that are available
for community projects across the district?• Are we competing with other not for profi t
organisations for community grants?• What are the stakeholder expectations?• Has the principal of intergenerational equity been
considered?
Council commits to utilising the proceeds from the sale of community assets to purchase, redevelop or upgrade other community assets. Council has not yet identifi ed any particular sales for inclusion in the Ten Year Plan.
Levels of Service (capital and operational)Council has reviewed expenditure levels to ensure they realistically match the agreed Level of Service (LOS) set out for each activity. However, in doing so, we are aware of the need to manage the risk of concentrating on short term fi nancial gains that may lead to longer term loss of service or deferred costs in asset repairs or replacement.
Council cyclically reviews its LOS with the view to matching them to community expectations. The fi nancial implications of any changes to LOS are always considered. Recent reviews have already resulted in savings in the HB Williams Library and Solid Waste activities.
Council considers the following factors when reviewing LOS of activities:• Maintaining the Council’s asset base• Consideration of ratepayer expectations• How community infrastructure LOS impacts on the
attractiveness of the Gisborne Region as a place to “Live, Work, Play”
• Competition with other provincial centres for investment, economic growth and skilled staff
• Possible alternatives to providing minimum LOS• Rates affordability.
Council’s fi nancial strategy for the next ten years is to maintain LOS at their current levels. No planned increases to LOS have been provided for.
6. Assist in improving the district’s ability to payA major theme running through our 2012-2022 draft Ten Year Plan is the district’s ability to pay. There are two aspects to the ability to pay challenge. The fi rst relates to the cost of Council’s goods and services on the community and the way these costs are allocated. Council can control those aspects. The second relates to the value of a rate payer’s property and other income. There is little Council can do about that.
Our challenge is clear from the following statistics:• In 2006, 31% of the district’s residents lived in areas
assessed as decile 10 (measurement taking socio economic factors into account – decile 10 being the poorest) and a further 15% lived in decile 9 areas. This means that at the time of the 2006 Census, a little under one-half (46%) of the district’s population lived in places judged to be among the 20% most socio economically deprived in the country.
• At $20,600, Gisborne/East Coast district residents aged 15 and over had a median personal income considerably below the 2006 national median of $24,400. Household incomes in 2006 showed a larger-than-average representation of Gisborne/East Coast district households at the lower end of the income scale (over-represented at all income levels up to $50,000 and under-represented in all incomes above $50,000.
For Council, this means (in addition to reducing costs) looking at ways in which we can maintain and more importantly increase our rating basis (ie our population). Council can assist in improving the economic performance of the district and therefore increase ratepayers’ ability to pay. With limited growth projected and the current income challenge the strategy is to:• Support economic agencies to assist in growing
the district's economy• Work with key stakeholders and others to improve
the productivity of Māori Land• Provide infrastructure to support and attract
businesses in to our district• Provide the necessary community infrastructure
that attracts people to the district to “Live, Work, and Play”.
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This section outlines how Council plans, over the next ten years, to deliver major projects that will help ensure the Gisborne district remains a great place to live and do business. A number of major capital projects were identifi ed in the 2009-2019 Ten Year Plan, but although there was community support for the projects through the consultation process, Council deferred most of them beyond Year 3 (2011/12) because of the costs and potential impact of the recession on affordability. This had the result of signalling an intention but effectively putting them on hold.
We have come through those three years and have managed well with a debt level $11 million less than forecast. We still need to be cautious but recognise that many of our community facilities urgently need work. The idea of investing in community facilities is to create a sense of place that attracts people here and also engenders pride in those of us who already live here.
Council has demonstrated through the wastewater treatment project that it can deliver projects on time and within budget. A key to this has been ensuring that the scope of the project has been well defi ned and understood and then that proper and sound project management disciplines have been put in place
including funding and fi nancial controls. We have also improved our capacity in the funding and support area. This has been reinforced by Council’s commitment to increase its contribution to the development of the projects, signalling a serious intent to potential external funders.
From August to October 2011 Council sought feedback from the community on which of the projects should be progressed through the 2012-2022 Ten Year Plan. All the projects showed signifi cantly high levels of support, particularly the walking and cycling extensions. Council has achieved good fi nancial results over the last three years and is now well placed to lead with developing well supported projects that will benefi t the district over the next ten years and for future generations.
Our Major Project plans for the next 10 years
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Cycle and Walkways
Why they’re neededOur natural environment is a key asset that makes Tairāwhiti unique and attractive. Off-road cycle and walkways allow people of all ages and ability to access nature, as well as encouraging active and healthy lifestyles and improved, safer transport links in and around the city. Walking and cycling has a positive impact on a range of other areas including: creating vibrant streets, improving personal safety, reducing carbon emissions, reducing traffi c fatalities, providing cheaper travel options, improving accessibility for the mobility impaired and economic outcomes including tourism benefi ts.
What we propose Council plans to extend the existing cycle and walkway that follows the river from the Peel Street Bridge to Waikanae over three stages: along Waikanae Beach; beside Waikanae Creek through Alfred Cox Park; and along the Taruheru River. The three walkway extensions
will be part of a network of connected walking and cycling routes. The network is designed to link homes, shops, schools, parks, public transport interchanges, green spaces, the beach, rivers and other important destinations such as the Olympic Pool.
The extensions will be undertaken in sections beginning in year 1 and are scheduled for completion in year 9 at a cost of $4.3m. It is proposed that Council will contribute the scope, consent and land tenure costs plus 32% of the design and construction costs in years 1-3 and 42% in years 4-9 (totalling $1.2m). This will be paid for using Council’s existing Financial Contributions Reserve Fund, (collected in lieu of land as a condition of resource consent) which stands at about $2.24m. It is assumed that NZTA will be able to contribute the remaining funds ($3.1m). If funding were not available, Council could use the full amount of the reserves fund and loan fund any shortfall to pay for the three extensions.
Council also hopes to secure funding from NZTA to develop a cycle/walkway along the shoulder of SH35 from Kaiti to Wainui. This is scheduled for year 2 at a cost of $723k. This would be 100% funded by NZTA as Council’s Financial Contributions Reserve would not be available as the land in question is a road reserve, not a recreational reserve.
Cost: $4.3mCouncil contribution: $1.2m NZTA funding: $3.1m Construction: Beginning 2012/13 Completed 2020/21
1. Waikanae Beach – in two sections. Firstly along the beach front from Customhouse Street to Grey Street and then Grey Street to the Midway Surf Club.
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The fi rst section will be undertaken in year 1 at a cost of $235k. The second section is likely to get underway in year 2 and be completed in year 3 at a cost of $415k.
2. Alfred Cox Park - from the park along the Waikanae Stream, with a bridge and links to Anzac Street, Awapuni School and Stanley Road through to Midway Beach. This would be undertaken in three sections:
• Awapuni School to Anzac Street via the Creek bridge in years 1-2, costing $280k.
• Awapuni School to Stanley Road in year 4, costing $94k.
• Alfred Cox Park through to Stanley Road via the Creek bridge with links to Anzac Street and Awapuni School in years 4-5, costing $335k.
3. Taruheru River - from Bright Street to Campion Road through the Botanical Gardens. This would be undertaken in seven sections:• Bright Street to Grey Street.• Grey Street to Derby Street.• Derby Street to Thomson Street.• Botanical Gardens.• Roebuck Road to Stanley Road.• Stanley Road to Lytton Road.• Lytton Road to Campion Road.
Depending on consents these stages are planned to commence in year 5 and be completed in year 9 at a total cost of $2.22m.
The proposed cycle/walkways will contribute to the following community outcomes:
Connected Vibrant Environmentally Tairāwhiti Tairāwhiti Sustainable Tairāwhiti Progress to dateCouncil’s 2004 Walking and Cycling Strategy identifi ed the need for cycle and walkway extensions, dependent on New Zealand Transport Agency (NZTA) funding. Consultation undertaken during the 2009-2019 Ten Year Plan found there was considerable support for the proposed extensions. However the proposals in the plan were reliant on NZTA funding that was then removed due to a change of direction from Government. In 2010 Council was unsuccessful in securing funding through the Government’s “Model Walking and Cycling Community” fund. Since then the community has indicated that the extensions are still a priority for the district. Throughout this period, Council has continued to progress plans for the extensions on the assumption that NZTA funding could become available at a later date.
Waikanae BeachA detailed design and cost estimate ($235k) is complete and resource consent for the Customhouse to Grey Street section has been obtained. Council will commit funding to the consented track in year 1.
Some preliminary design was completed for a resource consent application for the Grey Street to Midway Surf Club section in 2009. Consent hearings commenced in 2010 but objections from some stakeholders led to an adjournment. Scoping has recommenced with a focus group made up of Council staff, consultants and affected parties.
Alfred Cox Park Scoping for this section of the walkway is complete and the cost is estimated to be $335k. The fi rst section, Awapuni School to a single accessway on Anzac Street via the Creek bridge, has been included in the proposed three year Land Transport Programme as an NZTA funded pedestrian safety improvement, as it will potentially alleviate safety concerns on Awapuni Road.
Awapuni School have contributed $70k over time in clearing the creek bank area at the rear of the school to assist in the overall project. The school will also provide a track through the school grounds to Awapuni Road. Council has committed funding of $90k to the design, consenting and construction of the creek bridge through the 2010/11 Annual Plan.
Taruheru River It is felt that the best approach for scoping and consenting is to carry out the project in stages as some stages have properties that have developed the river bank and may object to the track at the rear of their property. Council have engaged a consultant to undertake further scoping and it is estimated that the cost to scope the design and prepare resource consent documents for all the sections will cost $80k and be completed by year 5.
Kaiti – WainuiThis project has been designed by the NZTA, but when the Government changed their roading priorities in 2008 it was deferred. Consultation in 2009 and 2011 has indicated that this is still a priority for the community. Council is hopeful that the NZTA will reconsider its position and look to fund the project.
Options for considerationCouncil plans to contribute to the extensions by paying for the scoping, consent and land tenure costs plus 32% of the construction costs in the fi rst three years and then 42% of costs for the remaining six years of construction (totalling $1.2m).
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Council has been collecting fi nancial contributions in lieu of land for reserve contributions as a condition of resource consent and will use these funds to pay for the extensions. It is assumed that NZTA will be able to contribute the remaining funds.
However, if NZTA funding is still unavailable there are other funding options available:
1. The Reserves Contributions Fund currently has a balance of $2.24m. The cycle and walkways are projects that fi t within the criteria for using this account, except for the provision on state highways and road reserves. If NZTA funding were not available, Council could use the full amount of the reserves fund and then loan fund any shortfall to pay for the three extensions.
2. Council could decide on the amount of funding they wish to allocate per annum and prioritise the sections based on this allocation.
3. A further option is to involve interested community groups to share the cost. This would mean Council could supply the materials and community groups/business groups/private donors could supply the labour for construction and contribute to the provision of seats, shelters, interpretive signage etc.
HB Williams Memorial Library Extension
Why it’s neededThe HB Williams Memorial Library is a great facility that provides a range of services from book lending to a specialised teenage section to internet services. However its current size places physical constraints on the ability to provide adequate services given that over time the extent of library services has increased as has demand. There is now a recognised lack of space for stock, young adult services, archival storage, public meeting spaces, study spaces and staff work areas. The current fl oor space of the library is 1,135m2, which is about one third of the fl oor space recommended by the Library and Information Association New Zealand Aotearoa (LIANZA).
What we proposeThe plan is to upgrade and enlarge the HB Williams Memorial Library on its existing site to better accommodate current and future needs. The aim is to ease congestion for existing services, provide space to meet customer expectations including for young adults and improve access for disabled users. The proposal will take into account best practice in library services as well as site constraints and affordability. Council have allocated $200k for design in Year 1 (2012/13). The upgrade would be undertaken in Year 2 (2013/14) with a cost of $3m and involve extending the existing building out onto the Bright Street car park.
The proposed library extension will contribute to the following community outcomes:
Connected Empowered Vibrant Skilled and Tairāwhiti Tairāwhiti Tairāwhiti Educated Tairawhiti
Cost: $3mCouncil contribution: $1.4mGrant funding: $1.6mConstruction: 2013/14
Progress to dateThe playground and car park behind the library is on land gifted to the people of Gisborne by the Williams family for the purpose of library extensions. Already $1.6m has been put towards the upgrade due to bequeaths from the estates of Stanley Green, Hannah Dunlop and Jessie Iris Jeffreys. Consultation undertaken as part of the 2009-2019 Ten Year Plan showed signifi cant support for the extension leading to its inclusion in the plan programmed for 2013/14. This support was reaffi rmed in early engagement on the 2012-2022 Ten Year Plan undertaken last year.
Other Options ConsideredDo nothingOne option available to Council is to not undertake the extension. However there would still be a cost to the ratepayer as necessary maintenance that has been deferred (due to the planned extension) would have to be undertaken to ensure the continued operation of the library. If the extension is not undertaken the existing space and service issues would compound meaning the library would fail to meet the needs of the community now and into the future. It would also mean the Council would not be able to use the funds specifi cally bequeathed for the extension of the library.
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Larger expansionA further option is to undertake an extension of the library that would comply with the LIANZA guidelines for recommended fl oor space per capita. This would mean increasing the building size by 1,980m2 allowing for a fi t for purpose building that would deal with the lack of space for stock, young adult services, archival storage, public meeting spaces, study spaces and staff work areas. However it is felt that the cost of such an extension (approximately $9m) is currently unaffordable for the district.
Tairāwhiti Navigations and Inner Harbour
Why it’s neededTairāwhiti is rich in navigational history and culture. Our Inner Harbour precinct and wider region hold signifi cant cultural, social and economic opportunities. The Tairāwhiti Navigations project is about interpreting and celebrating the district’s rich navigational heritage with specifi c design themes and the provision of historic information. Developing an attractive and vibrant Inner Harbour with improved public spaces and infrastructure will form an integral part of the project.
What we proposeThe Tairawhiti Navigations Project will comprise a community/iwi-driven cultural heritage trail through the Gisborne Inner Harbour area, Titirangi Reserve and key sites throughout the district, all linked to a permanent, world-class Navigations experience at Tairawhiti Museum. It involves the development of a number of sites, centred around the Inner Harbour precinct where viewing facilities and information boards displaying navigational heritage will be provided, linked together by walkways and paths. The project aims to bring together the voyaging, arrival and settlement histories from New Zealand’s two founding cultures: Māori and Pakeha.
It will acknowledge our heritage, generate business and tourism opportunities and affi rm the appeal of Tairāwhiti as a great place to live and visit. The various components will include:
• Path and landscape elements from the museum to the marina.
• A pedestrian walkway attached to the railway bridge across the Turanganui River.
• Walkways connecting the inner harbour to Titirangi and the Cook Landing site.
• A new lookout on Titirangi overlooking the Cook Landing monument.
• A walkway from Te Poho o Rawiri Marae to the summit of Titirangi.
• A pedestrian bridge over the river to Waikanae Beach.
• A boardwalk to the slipway in the middle of the harbour.
• The development of regional sites such as: Tolaga Bay and Cooks Cove, Whangara, Anaura Bay and Mount Hikurangi.
It will also involve signifi cant enhancement of the Inner Harbour including: a new roading layout, improved car parking, landscaping and other installations such as lighting and fencing.
The proposed project will contribute to the following community outcomes:
Connected Prosperous Vibrant Tairāwhiti Tairāwhiti Tairāwhiti
Tairawhiti Navigations: $9.45mInner Harbour: $3.10mTOTAL COST: $12.55m
Council contribution: $4.03m (32%)External funding: $8.52m (68%)Construction: Beginning 2012/13 Completed 2019/20
Progress to dateThe project arose from the museum development project in 2003 and the Tairāwhiti development project in 2006 and is a long term cultural, social and economic development project involving Council, Iwi and Eastland Port. It has progressed over the past fi ve years with funding from New Zealand Trade and Enterprise, Eastland Community Trust and Eastland Infrastructure. This has allowed for the creation of a project steering group and feasibility assessment work that has determined the business concept model and the design for the light infrastructure work.
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Scoping and cost estimates are complete for all components except the Inner Harbour.
Initially the Inner Harbour and Navigations were considered different projects. However in order to maximise resources and prevent operational ineffi ciencies, Council has determined that they should progress as a single project. Consultation undertaken in 2011 showed that the community is supportive of the combined project.
Alternative optionsAnother option available to Council is to progress only some of the proposed components of the project, depending on priorities determined by stakeholders and the community.
War Memorial Theatre Upgrade
Why it’s neededThe War Memorial Theatre requires major upgrading to bring it up to a standard that will suit the needs of both theatre-goers and organisations bringing shows and entertainment to Gisborne. The current theatre is a great asset for the district as many local performing arts groups use it and touring performances usually perform to a packed house. However the size and poor condition are limiting the performances that can come to Gisborne. The building is suffering badly from run down back stage facilities, a leaking roof and inadequate seating and toilets and has reached the point where it should be replaced so that the city has a fi rst class facility for the future.
What we proposeWe plan to expand and upgrade the theatre on its existing site to create a modern attractive complex which meets the future needs of performers and the audience.
The proposal will cost around $7.2m. This design will see a full upgrade of the stage and back-stage areas, a new and larger foyer area, additional seating, and works to the roof of the auditorium and existing front of house. The seating capacity will increase from 420 to 540.
The redevelopment will signifi cantly extend the theatre’s ability to deliver performing arts services for both the Gisborne community and visitors to the region for a long time to come. The improved foyer/entry area, ablution and kitchen facilities will greatly enhance the comfort of the theatre for patrons.The proposed theatre upgrade will contribute to the following community outcomes:
Prosperous Vibrant Tairāwhiti Tairāwhiti
Cost: $7.17mCouncil contribution: $2.15m (30%)External funding: $5.02m (70%)Construction: Beginning 2012/2013,
completed in 2014/2015
Progress to dateThe upgrade of the theatre has been mooted since the 2006–2016 Ten Year Plan. Since then consultation with the public, including the 2009-2019 Ten Year Plan and early engagement undertaken in 2011, has shown signifi cant support for the project.
A project group has been formalised and specialist theatre architects Shand Shelton have produced preliminary plans and fi rm costings. A consultant was commissioned in early 2011 to produce a feasibility study which examined four options for the project with the expansion and upgrading of the existing site considered the most feasible.
Council will allocate $2.15m of funding for the major upgrade but funding of around $5m from external funders will be required. It is expected fundraising will take 12 to 18 months. The design scope has been completed and if the project proceeds the district should have a fi rst class performing arts facility completed by 2014.
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Other options consideredDo nothingThe outcome of choosing this option would be further deterioration of the building and facilities; decreased ability to provide shows/performances at the current standard; little ability to host or attract any new out of town acts; increasing dissatisfaction of theatre staff and users with the deterioration of the building and facilities leading to the loss of touring acts that presently come to Gisborne; growing dissatisfaction from audiences with the building and facilities; and limited quality of shows. If the proposed upgrade did not go ahead, Council would commission an assessment on the building to determine whether closure of the theatre is necessary.
New theatre on alternative siteThe advantage of an alternative site is that a fi t for purpose theatre could be built with a larger stage area and greater seating capacity which would attract more out of town acts. After a range of alternative sites were considered, a feasibility study looking at developing a new theatre on the existing Lawson Field site was undertaken. However at a cost of $11.7m, the two stage design incorporating an auditorium with foyer and a stage house, was seen as too expensive for the community.
Redevelopment on existing site incorporating part of the RSA BuildingThis option included utilising part of the adjacent RSA building for the foyer/hospitality area, with the theatre turned 90 degrees so as to achieve better audience interaction. It included construction of a new and larger stage, better acoustics, a modern back-stage and set-up, and an increase in seating to 500 seats. It would have allowed for greater use and versatility of the facility not only as a theatre, but also as a function facility. The cost at $9.5m however has been deemed unacceptable and Council consider this to no longer be an option.
Olympic Pool Upgrade
Why it’s neededDiscussions about the future of the Olympic Pool complex and its potential redevelopment have been ongoing since 2004. An upgrade is required due to the current lack of facilities and revenue opportunities at the Olympic Pool Complex (e.g. a lack of learn to swim facilities, a café and retail space), the age and physical condition of the assets and operational ineffi ciencies due to the semi-outdoor nature of the facility. An independent evaluation has established a remaining useful life of about fi ve years for some of the major asset components.
What we proposeCouncil will allocate $100k (2017/18) of the Ten Year Plan as a contribution towards the scoping of the project. Although the exact costs of this project will not be determined until the scoping is completed, Council has included plans to undertake an upgrade of the existing Olympic Pool over three years commencing in year 6 (2017/18) at a cost of $30.2m (based on fi gures determined in a 2009 preliminary feasibility report). Council intends to fund 10% of the total cost with the rest to come from external funders. Once the scoping report is completed the project steering group will develop a business plan that will seek to gain the funding required to ensure the community will have an aquatic facility that meets its needs by year 8 (2019/20).The proposed Olympic Pool upgrade will contribute to the following community outcomes:
Connected Healthy Vibrant Tairāwhiti Tairāwhiti Tairāwhiti
Cost: $30.19mCouncil contribution: $9.66 (32%)Funding: $20.53m (68%)Construction: Beginning 2017, completed
in 2019
Progress to dateThe Olympic Pool was fi rst signposted for an upgrade in the 2006-2016 Ten Year Plan. Council’s Active Recreation Strategy (2005) provided a commitment to undertake feasibility studies for both the possible redevelopment of the Olympic Pool Complex and a multi-purpose sports facility. The feasibility report was undertaken in 2009 by Nicoll Blackburn Architects with preliminary designs for both the pool upgrade and the recreation facility at an estimated cost of $61m. In the 2009-2019 Ten Year Plan, the project was expanded to include the indoor multipurpose stadium component.
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However consultation undertaken in 2011 found there was little objection to Council removing the recreational facility component from the 2012-2022 Ten Year Plan, due to the possible cost of the project and the existence of alternative facilities.
Other options consideredDo nothingRetaining the existing facility as is would require signifi cant investment to repair and replace existing assets and to ensure compliance with the current Swimming Pool Design Standard (NZS4441:2008). The estimated capital costs for this option are $8.4m. If the Olympic Pool is not upgraded the three major problems facing the complex, i.e. its lack of facilities and revenue opportunities; its age and asset conditions; and its operational ineffi ciencies, would not be addressed. Accordingly, Council feels that doing nothing is not a viable option for ensuring the health and recreation needs of the district are met.
Multi purpose aquatic and recreation centreAs mentioned earlier Council has considered undertaking the development of a multi-purpose aquatic and recreation centre. However with an estimated cost of $61m this is deemed too expensive and surplus to the needs of the district.
Earthquake Strengthening of Council Offi ces
Why it’s neededA recent seismic assessment of the original two-storey part of the Council Offi ces building in Fitzherbert Street, built in 1954, has found that the building only meets 19% of the New Building Standard.
Under the Building Act 2004 the building is required to have greater strength capacity as it is critical in any response to a civil defence emergency.
A notice to strengthen the building, to ensure the safety of staff and allow for the continued operation of Council services from the existing site, has been issued by Council’s Building Services section. Improvements must be completed by 12 October 2016.
What we proposeCouncil plans to investigate ground conditions and provide a geotechnical report to determine whether a new building or strengthening the existing building is the best approach.
Any proposed work will contribute to the following community outcomes:
Connected Empowered Prosperous Safe Tairāwhiti Tairāwhiti Tairāwhiti Tairāwhiti
Options for considerationOption 1: Strengthen the building – 800m2
Due to the building strength capacity being so far below the New Building Standard, any strengthening undertaken would be substantial. The preferred strengthening option is to install shear walls in between columns to give the support required to the structure. The downside of this approach is a reduction in the available space due to the limitations of the new fl oor layout. Further provision of offi ce space would also need to be built to cater for the current activities.
The structural design life of the building would be extended. However, this would not address parts of the building that have been surpassed by current design and building standards or items that will require replacing in the near future, such as the roof, lift and windows.
Cost = $1.96m which includes the following:
• Approximate fi gures for relocation and fi t out of temporary premises during construction.
• Fit out and adjustment of fl oor plate to suit new solid walls.
• Extra building area required to house displaced staff (approximately 10 staff).
• Internal strengthening.
• Medium term maintenance/replacement items.
Option 2: New Build – 1,200m2
The new build option takes into account current needs with the added ability to increase the fl oor space to 1,200 m2 and create an improved link and use of space through the customer service area of Council. The increased size of the fl oor plate and versatile nature of the new build would allow greater fl exibility to changes in the internal offi ce layout.
50
With a design life of eighty years this allows for a replacement of the current building with a building designed to modern standards that also takes advantage of sustainable building enhancements.Cost = $3.5m, which includes the following:
• Demolition of the current building.
• 1,200m2 building built to modern standards with an 80 year design life.
• All new services, including lift and mechanical services.
• Approximate fi gures for relocation and fi t out of temporary premises during construction.
• Increased fl exibility of space.
Other Major ProjectsThe Cenotaph RestorationThe Gisborne Cenotaph was damaged in the
December 2007 earthquake and has yet to be repaired. It is registered as a Category 1 nationally signifi cant historic place.
While Council's insurers have been deciding on how to repair and strengthen the Cenotaph, some people want a complete rebuild. Council will start repairing and strengthening the Cenotaph in 2012 at the insurer's expense ($240,000) and work with those interested in a complete rebuild to confi rm how this can be done. A full restoration would cost about $1.9 million and would
have to be funded through grants.
Waipaoa River Flood Control SchemeCouncil has decided not to upgrade the Waipaoa River Flood Control Scheme. An upgrade that included raising the stopbanks to provide protection against a one-in-150-year fl ood was included in the 2009-2019 Ten Year Plan. It would cost about $24 million.
Recently an independent review by NIWA found that the existing fl ood protection is better than we thought. The banks will protect against a one-in-100-year fl ood.
The protection level was thought to only protect against a fl ood the size of Cyclone Bola expected every 70 years. Council will still look at how the capacity of the existing scheme can be improved.
Protecting Ruatoria from the Waiapu RiverLarge concrete groynes installed to divert the Waiapu River away from the Ruatoria township are working well. The porous groynes are slowly diverting the water fl ow towards the middle of the river and away from the badly-eroded right bank.
Stage two of the project will involve installing more groynes upriver. This is planned for 2012/13 and will cost $200,000. If fully effective, stage three which is planned to start in 2012/14 and cost $415,000 will not be needed.
Collaborative ProjectsCouncil supports many projects led by the community or other agencies that may or may not have funding allocated to them in the draft Ten Year Plan. Council support could be in the form of land, advice, and/or support for funding applications. Some of the collaborative projects included in this draft Ten Year Plan include:- Turanganui Walkway Art Project.- Tairāwhiti Museum and Nga Taonga a Nga Tama
Toa Trust.- Community House.- Sports Facilities Review and Sports Hub for Kaiti.
Turanganui Walkway Art ProjectIn September 1998 an agreement was entered into by the Gisborne District Council and Te Whānau a Iwi of Te Aitanga a Mahāki (later expanded Ngati Oneone, Ngai Tawhiri and Te Rūnanga o Tūranganui a Kiwa in 2000) relating to the recognition, protection and accommodation of wahi tapu on the Heinz-Watties site in the course of any demolition. Part of the agreement involved the recognition of the hapū and iwi through a permanent art work on the site. The site marked for the sculpture is at the end of the new Tūranga River walkway adjacent to the Waikanae Creek. An open grassed space has been left clear for the sculpture and a budget has been set aside for this work for a number of years until a suitable art work was chosen.
In 2011, Council with the support of tangata whenua worked together to implement a selection process to identify a preferred artist and art piece. Large scale engagement with iwi and hapu representatives occurred and an artist for the project was selected.
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Mr Matt Randall a local artist, was selected for his art work “Ruapani” a paramount Chief of Tūranga who is said to have a common thread to all tribes of Tairāwhiti. The design of the piece encapsulates the themes of powhiri, Tairāwhiti Navigations and occupations. Council intends to gain resource consent for the art work and work with iwi and hapu to pursue additional grant funding for the work.
Tairāwhiti Museum and Nga Taonga a nga Tama Toa TrustCouncil was approached in 2010 by Nga Taonga o Ngā Tama Toa Trust to lease some land adjacent to the Tairāwhiti Museum so that it can construct a building to house its taonga related to the 28th Maori Battalion. Council intends to work with the Tairawhiti Museum and Ngā Taonga o Nga Tama Toa Trustees to support this culturally and historically signifi cant project.
Community HouseGisborne’s Community House - a “one stop shop” for the community to seek assistance – will open in 2012 with the support of Council. A suitable central city place to lease has been found and Eastland Community Trust has provided a grant which will cover the fi rst year’s running costs. Council recently granted the non-profi t Community House a 50% rates remission of $3k for one year. The Gisborne Community House Charitable Trust will fundraise and seek grants to employ staff.
Kaiti Community Sport and Recreation HubCouncil are very supportive of the proposal for a “Kaiti Community Sport and Recreation Hub” at Waikirikiri Reserve. Horouta Sports Club and Sport Gisborne Tairāwhiti have put forward a successful Expression of Interest (EOI) to Sport New Zealand’s Active Communities fund. They are one of fi ve organisations that have been shortlisted to submit a proposal. The project is to develop a ‘sportsville’ model in Kaiti, located on Council's Waikirikiri Reserve. Council’s support is required if the project is to be successful. Under the Active Communities fund, Sport New Zealand also require Council support. If successful, Sport New Zealand will grant $100k towards the project.
In addition to Council staff support for the project, Council is also signalling a fi nancial contribution of $20k per annum for the next three years. Once submissions on the draft Ten Year Plan are considered in June, Council will look at reprioritising operational budgets to provide the funding required.
Economic Development AgencyMany districts have an Economic Development Agency. Council will decide whether this is a good idea in partnership with Eastland Community Trust (ECT).
Throughout 2011/12 Council has been doing a lot of work on the concept of an Economic Development Agency or Entity. This has included undertaking external reviews on our current service providers, Tourism Eastland and the Heart of Gisborne. A proposal for a new entity has been established which may see funding redirected from existing organisations providing economic services into a joined up single entity.
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The Council has put a proposal to the Eastland Community Trust asking them to partner with us to progress the entity. The types of services that would be delivered by the entity would include:• Business Development• Promotion and Events• Relationship and Partnerships • Tourism• City Centre Promotions.
We are still in negotiations with ECT as to what this might look like. But if this goes forward, there will be a major change in what economic development organisations the Council invests in.
What we doWhat we do Commercial operationsCommercial operations
Community planning and services Community planning and services
Environment policy and services Environment policy and services
Governance and support services Governance and support services
Infrastructure services Infrastructure services
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Why we do itA brief description of why Council undertakes this activity including the benefi ts to the community.
What we doA brief description of what the activity involves.
Council OutcomesAn illustration of which Council Outcomes the activity contributes to. The Council Outcomes are explained in further detail on page 27.
Connected Vibrant Safe Tairāwhiti Tairāwhiti Tairāwhiti
Healthy Empowered Prosperous Tairāwhiti Tairāwhiti Tairāwhiti Skilled and Environmentally Educated Sustainable Tairāwhiti Tairāwhiti Our Strategic ChallengesA list of the strategic challenge areas that the activity intends to contribute to. The strategic challenges are explained in further detail on page 29.
Performance CultureGovernance Effectiveness
Groups of Activities - how to read this section
Community EngagementMajor ProjectsNatural Resource UseFinancial SustainabilityCommunity Viability and FunctioningRisk ManagementBusiness Effi ciencyCustomer Needs
What are our plans for the next ten years?A table that explains the activities and services we are currently providing, an outline of what activities and services will be undertaken between years 1 – 10 and a list of the methods, strategies and policies we will employ to ensure we achieve our proposed plans. Where applicable our plans will be broken down into activities occurring in Years 1 - 3 and those occurring in Years 4 - 10.
Challenges and OpportunitiesThe key challenges and opportunities the Council faces in delivering the activity.
Signifi cant effects (if any)The signifi cant negative effects from the activity and the initiatives planned to address these effects.
Risk Mitigation (if any)The systems or plans in place to make sure any risks inherent in undertaking the activity are properly managed.
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How will we know if we are on trackA table showing the Levels of Service we seek to achieve, the performance measures we use to check our progress and the targets we aim for to reach our desired results.
Key assumptions and uncertainties (if any)An outline of any signifi cant activity-specifi c assumptions made, or uncertainties considered, during the preparation of this Ten Year Plan. Organisation-wide assumptions are included in the Signifi cant Assumptions section of this document.
Forecast activity cost statementThis table shows:• Net Cost of Service: The amount of external
income and expenditure for the activity. This is the cost of the activity before internal overheads and recoveries are allocated.
• Capital Expenditure: The breakdown of capital projects proposed by the activity for each year of the plan broken down by level of service.
GraphsTotal Capital Projects: All capital projects proposed by the activity broken into levels of service.
Depreciation v Renewal: Compares the amount of depreciation set aside each year by an activity against how much is spent on renewals (replacing existing assets) for the activity.
Capital expenditureDetailed list of capital projects proposed for the Ten Year Plan. Shows timing and values of projects year by year.
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Why we do it Commercial Operations contains the commercial and business activities of Council. The primary reason for holding these investments is to generate cost savings or provide income to Council to reduce its reliance on rates income.
What we do and whyThe Commercial Operations Group includes the following activities:• Gisborne Vehicle Testing• Waikanae Beach Top 10 Holiday Park• Commercial Property • Commercial Forestry• Council Controlled Organisations (CCOs)
Our Commercial Operations are made up of a number of commercial investments. The investment portfolio contains a range of mostly locally run businesses and services; some are run on a commercial basis for the benefi t of Council operations, while others are run to supplement Council’s rates income.
Gisborne Vehicle TestingThis commercial operation provides a range of services to the motoring public including warrant of fi tness, vehicle registration, driver licensing and AA services.
Rationale for this investment:• To generate income that reduces the cost of rates
to the Gisborne district ratepayers. • To provide a competitive business that provides
quality, affordable services to the local community and benefi ts the Gisborne ratepayers.
• To ensure there is a competitive low cost vehicle certifi cation service for local residents.
• To provide local employment.• To retain the economic benefi ts of the activity
within the local community.
Waikanae Beach Top 10 Holiday ParkThe Council runs a Qualmark 4 star plus quality Holiday Park at Waikanae Beach in Gisborne city. The park provides a range of quality affordable accommodation in an ideal location. The park operates profi tably and is looking to build its reputation as a quality destination park.
Rationale for this investment:• To generate income that reduces the cost of rates
to the Gisborne district ratepayers.
Commercial Operations
• To stimulate economic activity by providing a range of quality, affordable and temporary accommodation that attracts visitors and holiday-makers to the Gisborne Region.
• To maximise the fi nancial return from the valuable beach-front reserve the Holiday Park occupies.
Commercial PropertyCommercial Property comprises Council holdings of land and buildings for either commercial return or non specialist accommodation that could easily be sourced from the private sector.
Rationale for these investments:
General • To generate income that reduces the cost of rates
to the Gisborne district ratepayers.
Industrial Land Holdings • To purchase and consolidate land holdings for
resale as industrial holdings to encourage regional capital investment and industrial development.
• To ensure that suitably zoned and serviced land is available when industry needs it.
Municipal Buildings• To provide cost effective accommodation for
Council activities and certainty of tenure.
Other Commercial Property• To obtain a commercial return on property
acquired for supporting Council’s other services and long term plans.
• To support strategic activities in the region e.g. Gisborne Airport.
• To maximise the return on legacy property assets prior to disposal.
Commercial ForestryThe Council owns a number of forestry blocks and is involved with Juken New Zealand in a joint venture on Council’s Pamoa lands.
Rationale for this investment:• To generate income from Council land holdings.• To protect the Council’s water supply dams.• To utilise legacy land holdings throughout the
district.
Council Controlled OrganisationsCouncil owns partly or wholly a number of companies and other entities. These entities either facilitate Council involvement with other councils for mutual benefi t or provide income to Council from legacy assets.
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Gisborne Holdings LtdRationale for this investment:• To generate income that reduces the cost of rates
to the Gisborne district ratepayers.
• Gisborne Holdings Ltd holds through its subsidiary Tauwhareparae Farms Ltd, farm and forestry operations in Tolaga Bay. These farms are a legacy asset and were provided by the Crown to give fi nancial support to the Gisborne Port. The Council has since sold the Port but retained the farms.
• Gisborne Holdings Ltd is intended to be a vehicle for potential CCO undertakings and establishment opportunities. A specifi c objective under the Statement of Intent is to report to Council on CCO establishment opportunities, and other investment opportunities that have the potential to enhance the economic well-being of the region, and to provide an adequate return.
New Zealand Local Government Insurance Corporation Ltd (Civic Assurance)Rationale for this investment:• The shares were acquired by virtue of the Council
being a local authority. The purpose of the corporation, in which most local authorities are shareholders, is to ensure that adequate insurance arrangements are available to local authorities at the lowest possible cost.
Bay Of Plenty Local Authority Shared Services (BOPLASS)Rationale for this investment:• The shares were acquired by Council to enable
participation in BOPLASS.
The objectives of BOPLASS are: Working together with the full support and involvement of staff to provide benefi t to councils and their stakeholders through improved levels of service, reduced costs, improved effi ciency and/or increased value through innovation.
• Reduced costs through joint procurement and shared services.
Local Government Funding Agency (LGFA)Rationale for this investment:• Council’s proposed investment as a shareholder
is to support the establishment of the LGFA. This will allow Council to access funding on more favourable terms than it could achieve on its own.
This activity contributes to the following Council outcomes
Prosperous Tairāwhiti Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Financial Sustainability • Business Effi ciency
What are our plans for the next ten years?
What are we doing now? What will we do in years 1-10?
Commercial operations are nearing the end of a signifi cant planning and restructuring phase which sets out the nature of the returns expected by Council.
Years 1-3
Following completion of the business plans for Commercial Operations, activity management structures are being set up or improved to have a consistency of management practice across the commercial activities. The primary focus will be on increasing profi tability.
Over the fi rst three years of the Ten Year Plan, a review of the current ownership structure for Commercial Operations will also take place. This may result in the transfer of management or ownership to a Trust, CCO, third party or similar.
Years 4-10
Review the business plans and progress at relevant intervals and diversify the portfolio to reduce the concentrated risk and improve the consistency of expected returns.
Comm
ercial Operations
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What are we doing now? What will we do in years 1-10?
We will achieve these plans by…
• Working with Gisborne Holdings Directors to identify business opportunities.
• Reviewing the structure of Commercial Operations to ensure that they are operating in a business like manner. This will include the ability to take normal commercial risks to grow the businesses.
• Improving customer satisfaction within the separate Commercial Operations to encourage return custom and solidify market share as well as developing effi cient and productive ways to deliver consistent management services.
Challenges and opportunitiesSome of Council’s Commercial Operations have traditionally faced little competition across their respective market sectors, while others have suffered from inconsistent management and investment practises resulting in varying rates of return. The increased focus on the return from under performing assets is allowing a commercial approach to be applied to continued business investment.
Challenges:• Market competition (external and internal) and
erosion of market share.• Declining market share resulting in reduced facility
utilisation.• Customer negativity around previous business
practices.• Management of decreasing returns and unrealistic
expectations.• Current economic climate and associated
reduced returns and managing variable returns over a poorly diversifi ed portfolio of investments.
Opportunities:• Further investment across activities to smooth and
solidify dividend return.• Leverage improved management structures to
gain operational effi ciencies.• Enhance commercial management practices
and industry partnerships.
Signifi cant effects There are no signifi cant negative effects from this activity.
Risk mitigationSignifi cant short term risks have been addressed across the Gisborne Vehicle Testing, Forestry and Waikanae Beach Top 10 Holiday Park activities. These have ranged from compliance to relevant regulatory codes as well as costly service provision risk mitigation measures and improvement of facilities. Improved forecasting across short to medium term capital requirements will aid the sustainable approach to returns expected by Council.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
These operations contribute to a Prosperous Tairawhiti as income generated from these assets is an important income stream for Council and is used to reduce the level of rates. The primary focus of Commercial Operations is to operate profi tably and increase their returns to Council.
Gisborne Vehicle Testing Expected return - Operations
Return on Revenue (ROR) in the range (before contribution to Council overheads) of 5% to 10% pa.
New Measure
5-10% 5-10%
Expected return - Property
Return on assets employed in the range 2% to 4%.
New Measure
2-4% 2-4%
Waikanae Beach Top 10 Holiday Park
Expected return
Return on Revenue (ROR) (before Contribution to Council Overheads) in the range 12% to 16%.
New Measure
12-16% 12-16%
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Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
Annual Revenue per Occupied room.
New Measure
12-16% 12-16%
Annual Revenue per Available room.
New Measure
12-16% 12-16%
Commercial Property Expected return
Market based returns 4%-6% return on investment
New Measure
4-6% 4-6%
Municipal Buildings - small return 1%-2% to offset future capital requirements and to smooth fl uctuations in operating costs.
New Measure
1-2% 1-2%
Properties supporting Council business units (e.g. Gisborne Vehicle Testing (GVT), Holiday Park) market based returns after taking into account encumbrances on the land.
New Measure
Achieved Achieved
All disposals at current market rates based on independent valuation.
New Measure
Achieved Achieved
Commercial Forestry Expected return
Forestry Joint Venture with Juken NZ Ltd net proceeds on harvest 16.75% to GDC 83.25% to Juken Nissho.
New Measure
Achieved Achieved
Other forestry blocks - the Internal Rate of Return (IRR) 5%-7% (excluding CPI infl ation).
New Measure
Achieved Achieved
Proceeds from sale of excess carbon credits.
New Measure
Achieved Achieved
Council Controlled Organisations Expected return – Gisborne Holdings Ltd
An interim dividend of $500k paid in February each year. The fi nal dividend making a total of 70% of the net distributable income will be paid in October. Estimated dividends disclosed in the 2011 Statement of Intent (SOI) range from $784k – $940kpa.
New Measure
Achieved Achieved
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Forecast activity cost statement OPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 2,516 2,563 2,826 2,880 2,834 2,946 4,605 3,288 3,640 3,317
Operating Expenses 3,533 3,603 3,630 3,714 3,811 3,911 3,996 4,087 4,198 4,314
Net Cost of Service 1,017 1,040 804 834 977 965 (609) 799 558 997
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Increase level of service
11 10 16 11 6 6 6 6 6 7
Asset purchases - Maintain level of service
513 3,685 761 266 244 129 159 403 177 198
Capital Projects 524 3,695 777 277 250 135 165 409 183 205
Total capital projects
Depreciation v Renewal capital projects
0
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Capital expenditure 2012-2022
Description LOSTotal Cost
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Commercial Operations
Commercial Property - GVT Facility and Business Improvements
Increase 84,000 11,000 10,000 16,000 11,000 6,000 6,000 6,000 6,000 6,000 6,000
Commercial Property - Municipal Buildings - Carpet Renewal
Maintain 108,000 30,000 31,000 21,000 26,000
Commercial Property - Municipal Buildings - Earthquake Strengthening
Maintain 3,504,000 190,000 3,261,000 53,000
Commercial Property - Municipal Buildings and Leased Property - Carparks
Maintain 110,000 25,000 26,000 27,000 32,000
Dog Pound Pump Replacement
Maintain 18,000 18,000
Commercial Property - Replace Septic System WINZ Building
Maintain 25,000 25,000
Air Conditioning Replacement (Fitzherbert Street)
Maintain 270,000 270,000
Commercial Property - Te Puia Service Centre Rebuild
Maintain 477,000 477,000
Commercial Property - Waikanae Beach Holiday Park Renewals
Maintain 518,000 80,000 31,000 85,000 33,000 56,000 35,000 59,000 37,000 63,000 39,000
Commercial Property - Leased Property - Banks St Roof
Maintain 144,000 144,000
Commercial Property - Leased Property - Carparks
Maintain 61,000 28,000 33,000
Commercial Property - GVT Equipment Replacement
Maintain 66,000 5,000 50,000 11,000
Commercial Property - Waikanae Beach Holiday Park - Operating Software
Maintain 30,000 30,000
Commercial Property Waikanae Beach Holiday Park - Ride on Mower
Maintain 16,000 16,000
Commercial Property - Waikanae Beach Holiday Park, Facility Refurbishment
Maintain 875,000 80,000 133,000 80,000 139,000 117,000 76,000 48,000 77,000 46,000 79,000
Commercial Property - GVT Carpark Re-sealing
Maintain 31,000 31,000
Commercial Property - Waikanae Beach Holiday Park - Water Heaters
Maintain 32,000 20,000 12,000
Commercial Property - Stock Paddocks
Maintain 68,000 12,000 13,000 14,000 14,000 15,000
Commercial Property - Municipal Buildings - Renewals
Maintain 183,000 16,000 16,000 17,000 17,000 18,000 19,000 19,000 20,000 20,000 21,000
Totals: 6,620,000 524,000 3,695,000 777,000 277,000 250,000 135,000 165,000 409,000 183,000 205,000
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Why we do itThe Olympic Pool Complex is one of the key recreational facilities in the Gisborne district and listed as a strategic community asset.
A wide range of activity programmes are available for individuals and groups like schools and community organisations. The facility’s purpose is:• To offer opportunities for aquatic recreation,
fi tness, sport, play, fun, education, health and social interaction.
• To meet the recreational demands of the people in our community and tourists.
• To provide access to events space and affordable accommodation for groups.
• To present a safe and accessible facility for people of all ages and abilities.
What we do and whyUnder the Amendments to the Local Government Act 2002 the provision of recreational facilities, i.e. swimming pools, is considered to be a core activity of councils.
The Gisborne Olympic Pool Complex is currently managed as a Council owned and operated community unit. By defi nition, community units are not business units in the sense that they exist to create a fi nancial profi t. No public swimming pool in New Zealand achieves that.
Aquatic & Recreation Facility (Olympic Pool)
The rationale for Council’s investment into facilities for recreation, sports, fi tness, active living, arts and cultural services (e.g. pools, parks, reserves, halls, libraries, museums, playgrounds, cycle and walkways, clean beaches, art in public places etc) is the wider community good that is created and the non-monetary benefi ts that are generated for the community and its people.
This activity contributes to the following Council outcomes
Healthy Prosperous Tairāwhiti Tairāwhiti
Vibrant Safe Tairāwhiti Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Major Projects • Financial Sustainability • Community Viability and Functioning• Risk Management • Business Effi ciency • Customer Needs
What are our plans for the next ten years?
What are we doing now? What will we do in years 1-10?
Day-to-day operation of the existing swimming pool complex in accordance with the PoolSafe Quality Management Scheme.
Asset management strategies to slow down the process of ageing and deterioration of various components.
Early planning stages for proposed replacement/redevelopment of the aquatic recreation facility.
Years 1-3
Continue day-to-day operation and asset management.
Project planning for replacement / redevelopment of the aquatic recreation facility.
Pursue external project funding opportunities.
Years 4-10
Pool replacement/redevelopment. Specifi c project planning and project management.
Construction of pool redevelopment.
We will achieve these plans by…
• Including potential partners and stakeholders in the early project planning process.
• Working closely with Eastland Community Trust (a potential funder).
• Developing a realistic project proposal of high quality (feasibility including demand modelling, business plan, pre-design, cost estimate).
• Consulting thoroughly with all sectors of the community and obtain a strong community mandate for the project.
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Challenges and opportunitiesIn regards to the long-term sustainability of the Olympic Pool Complex, there are three major challenges:
• The age and poor condition of assets.
• A lack of facilities and revenue opportunities.
• Operational ineffi ciencies due to the semi-outdoor nature of the pool.
There are a number of opportunities the Gisborne community can build on when discussing the provision of aquatic recreation facilities for the future.• A community tradition in water based recreation
and sports and a strong demand for quality facilities.
• A growing awareness for water safety and swimming education needs (e.g. SPARC KiwiSport funding and Water Safety New Zealand ‘Swim for Life’ initiative).
• The ability to maximise revenue from established users and community stakeholders / partners (e.g. Swim Club).
Signifi cant effects There are no signifi cant negative effects from this activity.
Risk mitigationPotential risks for the Olympic Pool Complex activity are summarised below along with risk management actions.• Financial risk (unexpected cost or loss of revenue)
– sensible management practices.• Asset deterioration and break down; potential
pool closure as a result – planning for facility replacement / redevelopment within 5 to 8 years.
• Inability to meet changing customer expectations / demands - planning for facility replacement / redevelopment within 5 to 8 years.
• Potential risks to health & safety – compliance with PoolSafe Management Scheme.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
TargetsYears 1-3 Years 4-10
We contribute to a Healthy, Prosperous and Vibrant Tairāwhiti by providing a range of sustainable, quality aquatic and recreational opportunities for Gisborne district residents and visitors.
Percentage of residents satisfi ed with the Olympic Pool as found in our Annual Resident Satisfaction Survey.
66% 70% 70% until year 8 85% from year 9
Percentage of households who have used the pool in the last 12 months as found in our Annual Resident Satisfaction Survey.
55% 55% 55% until year 8 65% from year 9
Number of pool admissions per annum.
148,468 150k 150k until year 8225k from year 9
Percentage of external revenue from users versus expenditure.
36% 40% 40%
We contribute to a Safe and Healthy Tairawhiti by providing a safe place for aquatic and recreational activities in a managed healthy environment.
Percentage of customers who are satisfi ed that the pool provides a safe environment for aquatic recreation as found in annual user survey.
96% 95% 95%
Percentage of customers who are satisfi ed that the pool water is clean and pleasant as found in annual user survey.
93% 90% 95%
Percentage of time pool water quality meets NZ Standard 5826:2010.
94% 90% 90%
Compliance with PoolSafe Management Scheme – an independent assessment of pools management and operation in accordance with industry standards.
Achieved Achieved Achieved
Comm
unity Planning and Services
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Forecast cost activity statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 575 611 630 651 674 697 720 743 1,500 1,573
Operating Expenses 1,505 1,564 1,598 1,646 1,822 1,872 2,264 2,596 3,230 3,268
Net Cost of Service 930 953 968 995 1,148 1,175 1,544 1,853 1,730 1,695
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Increase level of service
0 0 0 0 0 9,232 8,824 9,114 0 0
Asset purchases - Maintain level of service
57 39 55 61 22 1,047 1,004 1,019 27 9
Capital Projects 57 39 55 61 22 10,279 9,828 10,133 27 9
Total capital projects
Depreciation v renewal capital assets
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Pools
Redevelopment of Olympic Pool Complex
Increase 30,189,000 10,257,000 9,805,000 10,127,000
Olympic Pool - Replace Therapy Pool Water Heater
Maintain 5,000 5,000
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Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Olympic Pool - Install quality shade sails around Kiosk/BBQ area
Maintain 10,000 10,000
Olympic Pool - repair/replace public address system
Maintain 20,000 20,000
Olympic Pool - Automatic Pool Vacuum Cleaner
Maintain 33,000 7,000 8,000 9,000 9,000
Olympic Pool - Replace shower coin units (4x)
Maintain 4,000 4,000
Olympic Pool - Refurbish/ reseal balance tank
Maintain 13,000 13,000
Olympic Pool - Install quality shade sails at playground
Maintain 15,000 15,000
Olympic Pool - Replace Spa Pool including heater
Maintain 16,000 16,000
Olympic Pool - Assess hydroslide & general renovation
Maintain 16,000 16,000
Olympic Pool - Assess Canopy Structure and repairs as required
Maintain 39,000 39,000
Renovations of Spa Therapy Pool
Maintain 27,000 13,000 14,000
Dive Pool Tile Renewal, Sealing Maintain 10,000 10,000
Diving Board Renewals Maintain 27,000 9,000 9,000 9,000
Olympic Pool - Renew Handheld Radios
Maintain 38,000 11,000 13,000 14,000
Olympic Pool - Replace BBQ Facilities
Maintain 12,000 6,000 6,000
Olympic Pool - Infl atable Pool Toy
Maintain 35,000 10,000 12,000 13,000
Totals: 30,509,000 57,000 39,000 55,000 61,000 22,000 10,279,000 9,828,000 10,133,000 27,000 9,000
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Arts and Culture
Why we do itTo provide facilities, services and art in public places that enable the public to experience and participate in the performing and visual arts, and to house and support a regional museum to provide a safe repository for the district’s taonga (treasures).
What we do and whyArts and Culture includes the following activities:• Theatres and Community Halls• Art in Public Places and Arts and Cultural Heritage
Facilitation• Museum Grants• Tairawhiti Navigations Project.
Under the Local Government Act 2002 local authorities are required to “promote the social, economic, cultural and environmental wellbeing of communities in the present and future.” This involves providing facilities, services and activities not only for the enjoyment of locals and visitors; but to create a sense of pride and place, and to refl ect the diverse cultures of the district’s people. Arts and cultural institutions, and access to the arts and culture generally, make a signifi cant contribution to the social and economic development of an area. Arts and culture plays an important role in enhancing a sense of identity and local distinctiveness.
Theatres and Community HallsTheatres and community halls are facilities that encourage and enable the public to experience the performing and visual arts, and to provide venues suitable for seminars, weddings and other community activities. Council owns and administers three theatres:• Lawson Field Theatre on Fitzherbert Street• War Memorial Theatre on Bright Street• Outdoor Theatre on Centennial Marine Drive
Also included within the activity is provision of land for rural communities to construct and operate community halls. The halls are not owned or maintained by Council. Halls currently exist at Matawai, Te Karaka, Otoko, Patutahi and Tiniroto. Art in Public Places and Art and Cultural Heritage Facilitation Council provides Art in Public Places such as parks, squares and other public and civic areas/buildings. Funding for the maintenance of Art in Public Places is provided for under the Reserves and Open Spaces Activity. Council also administers the Creative Communities NZ fund, allocating funding for arts and cultural projects that:
• Increase community participation in the arts and the range and diversity of arts available to communities.
• Enhance or strengthen the local arts sector.
A small amount of grant funding is provided to aid Creative Tairāwhiti in the delivery of services to support and build community capacity in the area of arts and culture.
Council also has an Arts and Culture Strategy 2011-2013 which it adopted in May 2011. The strategy was developed in consultation with the community and interested people and includes a vision, goals and action plan.
Museum Grants• Tairāwhiti MuseumIn accordance with the 21 year contractual agreement signed in 2001, Council provides an annual allocation to the museum to maintain, develop, document, exhibit and make accessible the region’s heritage collections and to research and promote the region’s art, culture and heritage. The Gisborne Museum of Art and History Trust Incorporated operates the Tairawhiti Museum. Council owns the Tairawhiti Museum building and three other buildings, and the land, at the Stout Street properties in Gisborne.
• East Coast Museum of TechnologyCouncil provides a smaller annual grant to assist the East Coast Museum of Technology, at Makaraka, to preserve, protect, catalogue and restore the region’s collection of interesting vehicles and machinery, many of which have been restored to working condition.
• Tairāwhiti Navigations Project The Mayor leads the steering group for this project. Council also provides administrative and project management support and coordination through the Community Policy and Resources Team and the Group Managers Community Planning and Development, and Engineering and Works. The project is now included as a major Council project in the 2012-2022 Ten Year Plan.
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This activity contributes to the following Council outcomes
Prosperous Vibrant Tairāwhiti Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Major Projects • Financial Sustainability • Community Viability and Functioning• Customer Needs
What are our plans for the next ten years? Theatres
What are we doing now? What will we do in years 1-10?
Providing facilities for the community to use.
Years 1-3Develop comprehensive business plans and asset management plans.
Gain external grant funding for the War Memorial Theatre upgrade.
Improve the comfort, safety and overall theatre experience for theatre-goers through an increase in both audience and performance/event capacity by:
- Retractable seating at the Lawson Field Theatre
- War Memorial Theatre upgrade.
Years 4-10Increase the ability of the theatres to attract different events/performances.
Increase the number and variety of events and performances provided at the theatres and increase the number of Gisborne residents using the theatres.
We will achieve these plans by…• Securing suffi cient funding and/or sponsorship.
• Reconsidering current resourcing of the theatres in terms of staffi ng levels and marketing and promotion of the facilities.
Art in Public Places and Art and Cultural Heritage Facilitation
What are we doing now? What will we do in years 1-10?
Working with the Art in Public Places Committee to gain funding for existing projects.
Years 1-3Work with Turanga (Gisborne) iwi to put in place the Turanga Art Piece.
Have implemented the Arts and Culture Strategy 2011-2013.
Years 4-10Continue to maintain existing public art installations for the enjoyment of the community.
We will achieve these plans by…• Implementing the strategy.
• Prioritising work streams and resources.
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Museum Grants
What are we doing now? What will we do in years 1-10?
Regular planning meetings between Council and Tairawhiti Museum.
Ensure the provision of appropriate care and access to the collections.
Years 1-3
Have supported the museum to have additional storage and exhibition space through implementation of the Museum Development Plan 2011-2019.
Work with Ngā Taonga a Ngā Tama Toa Trust to progress with the proposed C Company 28th Maori Battalion exhibition facility.
Years 4-10
Continue to support the museum to maintain the museum’s national reputation for bicultural governance, strong relationships with key stakeholders and quality exhibition and education programmes.
We will achieve these plans by…
• Implementing the Museum Development Plan.
• Providing additional climate controlled storage and exhibition facilities.
• Continuing to acquire artworks that relate to the major historical themes of the district.
• Continuing to enhance on-line presence.
• Continuing to develop capacity to generate revenue from museum-based commercial activities.
Tairawhiti Navigations
What are we doing now? What will we do in years 1-10?
Have the Tairāwhiti Navigations Project included as a major project for consideration and project prioritisation in Council’s 2012-2022 Ten Year Plan.
Providing project management support.
Years 1-3
Obtain grant funding for the project.
Continue project management support.
Implementation of the project.
Years 4-10
Gain international recognition of Tairawhiti’s navigational history.
We will achieve these plans by…
• Include the Tairāwhiti Navigations Project as a major project for the draft Ten Year Plan.
• Continue to provide project management through the Group Managers of Community Planning and Development and Engineering and Works.
• Council staff to investigate options of gaining international recognition of Tairāwhiti navigational history.
Challenges and opportunitiesThe War Memorial Theatre redevelopment project presents several challenges. Particularly around securing the necessary funding for the project to go ahead. The theatre is currently severely under resourced, especially in regard to staffi ng levels and marketing and promotion.
Challenges in delivering the Art and Culture Activity exist in responding to the diverse needs of the Arts and Culture Strategy. Implementation may also be challenging due to the fact that Council does not have a specifi c Arts and Culture Manager and an organisation-wide approach is required to develop and deliver this area of work.
The Manager for Community Policy and Resources will monitor implementation and an interdepartmental group (Arts and Culture Working Group) will be established with the aim to better integrate this work across Council.
A major challenge for Art in Public Places is also securing funding for artworks.
A major challenge for Tairāwhiti Museum is raising the funds for implementation of the Museum Development Plan 2011-2019. All capital works are to be funded by the museum.
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It is a challenging environment to secure funding in light of the current economic situation and given there are other community projects competing for the limited dollar. Other challenges to the implementation of the Museum Development Plan may be present in the planning consent process.
Challenges for the Tairāwhiti Navigation project lie in the effective integration with other related projects
such as the Inner Harbour and Cone of Vision projects, appropriate phasing of project steps, securing external grant funding, and internal project resourcing and funding.
Signifi cant effects There are no signifi cant negative effects from this activity.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Vibrant and Prosperous Tairawhiti by providing facilities and services that help create a strong sense of community mana, pride and identity, refl ecting the heritage and culture of the region.
Number of booking days per annum: Lawson Field Theatre 211 Year 1: 190
Year 2: 203
Year 3: 203
204-207
War Memorial Theatre 80 Year 1: 78
Year 2: 78
Year 3: 79
79-82
Percentage of residents satisfi ed (according to our Annual Resident Satisfaction Survey) with:
Lawson Field Theatre 71% 75% 80%
War Memorial Theatre 56% 55% 80%
Percentage of revenue return on operational cost.
34% Year 1: 35%
Year 2: 35%
Year 3: 40%
45%
Compliance with Health & Safety codes of practice.
Achieved Achieved Achieved
Number of publicly displayed artwork projects worked on that contribute to enhancing arts and culture in the district.
3 3 3-5
We contribute to a Vibrant Tairawhiti by providing adequate facilities and contracted management of the distinctive museum collection and displays.
Number of visitors per annum to Tairāwhiti Museum.
New measure 40,000 42,000-44,000
Percentage of residents satisfi ed with Tairāwhiti Museum as found in our Annual Resident Satisfaction Survey.
New measure 81% 85%
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Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 112 115 119 123 128 132 136 141 146 151
Operating Expenses 1,177 1,248 1,501 1,663 1,702 1,740 1,778 1,820 1,865 1,772
Net Cost of Service 1,065 1,133 1,382 1,540 1,574 1,608 1,642 1,679 1,719 1,621
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Increase level of service
500 1,598 5,070 0 0 0 0 0 0 0
Asset purchases - Maintain level of service
120 77 55 22 0 0 0 0 0 0
Capital Projects 620 1,675 5,125 22 0 0 0 0 0 0
Total capital projects
$000
's
Depreciation v renewal capital assets
250
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Arts & Culture
War Memorial Theatre Upgrade
Increase 7,169,000 500,000 1,598,000 5,070,000
Lawson Field Theatre - Renewals
Maintain 274,000 120,000 77,000 55,000 22,000
Totals: 7,443,000 620,000 1,675,000 5,125,000 22,000
The fi nancial information for the Navigations Project, Inner Harbour is shown in the Parks and Open Spaces activity summary.
The fi nancial information for Art in Public Places is shown in Support Services activity summary.
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Community Housing Why we do itTo provide quality housing for the elderly who have diffi culty in providing it for themselves.
What we do and whyProvide and maintain a range of one bedroom units (120 units in 10 complexes) to enable independent living for people aged 55 years and over. Council does not provide social welfare services for its tenants but works with other agencies to ensure that these services are known about and readily accessible for tenants that may need them.
This activity contributes to the following Council outcomes
Healthy Tairāwhiti Safe Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Community Engagement • Financial Sustainability • Community Viability and Functioning • Risk Management • Business Effi ciency • Customer Needs.
What are our plans for the next ten years?
What are we doing now? What will we do in years 1-10?
Providing a consistent level of operational service to our 120 tenants while maintaining the security and access of the units.
Years 1-3Improve the asset management plan to encompass maintenance checks and scheduled replacements.
Over the fi rst three years of the Ten Year Plan, a review of the current ownership structure for Community Housing will also take place. This may result in the transfer of management or ownership to a Trust, CCO, third party or similar.
Years 4-10Review the management practice to ensure the activity is cost neutral to Council and maintain the units to an acceptable standard for letting.
We will achieve these plans by…• Improving the asset management processes around the units to ensure a smooth fl ow of replacements and maintenance
checks across the activity.
• Continue to review rents on an annual basis to ensure the return meets Council's self funding initiative with any increases managed in an affordable way for tenants.
Challenges and opportunities Council’s community housing has an age range of 1963-1992, the older units are not designed for modern living and do not take into account the age of our tenants. For this reason external and internal accessibility has become an issue.
Current replacements and improvements are focusing on insulation and security and will move to improving the layout and features internally of units.
Challenges:• Increased request for housing from socially
challenged or mentally ill members of the community.
• Older style of housing that does not meet current needs for internal space and access.
• Increase in fi nancial pressure on tenants as rents rise.• Changing expectations of tenants.
Opportunities:• Community atmosphere creation with fruit trees
and place for vegetable gardens.• Whole of complex approach to improvements
allowing a greater variety of units to be provided in one location.
• Facility improvements allow for greater tenant satisfaction and less risk of tenant turnover.
Signifi cant effects There are no signifi cant negative effects from this activity.
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How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Safe and Healthy Tairawhiti by providing housing suitable for the elderly who have diffi culty providing it themselves.
Percentage of customer satisfaction with standard of accommodation and services as found in our annual inspection survey.
97%
Achieved
95% 95%
No cost to ratepayers for Council’s housing services.
$2780
Not Achieved
0 0
Annual occupancy rate. 98%
Achieved
95% 95%
Rent as a percentage of market rate (lower quartile) not to exceed 90%.
Achieved Achieved Achieved
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 875 903 932 964 997 1,031 1,065 1,101 1,140 1,180
Operating Expenses 721 748 775 801 827 852 877 903 929 958
Net Cost of Service (154) (155) (157) (163) (170) (179) (188) (198) (211) (222)
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Maintain level of service
175 165 185 175 197 185 208 196 221 209
Capital Projects 175 165 185 175 197 185 208 196 221 209
Total capital projects
Depreciation v renewal capital projects
73
Capital expenditure 2012-2022
Description LOSTotal Cost
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Community Housing
Commercial Property - Staff Housing Upgrades
Maintain 85,000 15,000 16,000 17,000 18,000 19,000
Community Housing - Upgrades
Maintain 1,832,000 160,000 165,000 169,000 175,000 180,000 185,000 190,000 196,000 202,000 209,000
Totals: 1,917,000 175,000 165,000 185,000 175,000 197,000 185,000 208,000 196,000 221,000 209,000
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Why we do itTo assist Council to contribute to a civil society, the functioning of democracy, social inclusion, a sense of place and sustainable economic development.
What we do and whyThe Community Planning and Development Group includes the following activities:
• Planning and Performance
• Community Policy and Resources (includes community and economic development)
• Māori Engagement
• Area Liaison
The activities undertaken in the Community Planning and Development Group collectively provide the policy, planning, and engagement mechanisms required for Council to meet legislative requirements. The activity assists Council in its leadership and advocacy role in understanding, planning and promoting wellbeing (predominately in the social, cultural and economic areas) within the district for and with its communities. The group of activities enables Council to:
• Set directions and deliver on them.
• Be accountable to the community.
• Provide mechanisms for community engagement.
• Grow and develop the community.
An activity review carried out by Council has resulted in a redefi nition to align with Council’s expectations for the activity.
Planning and Performance The driver for this activity arises from legislative requirements under the Local Government Act 2002. The major strategic documents include the Ten Year Plan, Annual Plans and Annual Reports.
This activity enables Council to formulate and manage processes to set the strategic direction of the organisation and to report to ratepayers and residents on the performance of Council in terms of its direction and objectives. Community Policy and Resources Council has a broad mandate to promote community and economic wellbeing under the Local Government Act 2002 and to also provide mechanisms to encourage community input into decision making.
The community expects that the Council will support and encourage the region to sustainably grow.
This activity assists the Council and the community to:• Support and assist community capacity building
initiatives and processes.
• Assist in developing and delivering coordinated and agreed strategic social and cultural outcomes for the region.
• Connect people (young and old) and organisations for the social and cultural betterment of the community.
• Advocate on behalf of communities to infl uence Central Government decisions and action.
• Provide research and policy information to Council to assist in strong decision making.
• Contribute to, and facilitate, sustainable long term and strategic economic planning for the region.
• Facilitate collaboration of all relevant parties in achieving agreed strategic economic outcomes for the region.
• Create leverage to take advantage of funding opportunities.
• Provide research and policy information to Council to assist in strong decision making.
Maori Engagement The driver for the Māori Engagement activity arises from legislative requirements under the Local Government Act 2002 and the Resource Management Act 1991. The purpose of the activity is to:
• Assist in developing mutually benefi cial relationships between Council, Māori and tangata whenua.
• Facilitate input from the Māori community and tangata whenua into decision making processes.
• Assist in building the capability and/or capacity of Māori to engage in Council decision making processes.
• Improve the internal capability and capacity of Council to fulfi l its legislative requirements.
• Provide advice to Council on matters relating to Māori and tangata whenua to assist in strong decision making.
Community Planning and Development
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Area Liaison The Area Liaison activity is closely aligned to support local communities and customers by providing information, advice and advocacy and helps Council services become more responsive by providing local knowledge or liaison. This activity contributes to the wider outcomes of community policy and resources.
This activity contributes to the following Council outcomes
Healthy Vibrant Prosperous Tairāwhiti Tairāwhiti Tairāwhiti
Empowered Safe ConnectedTairāwhiti Tairāwhiti Tairāwhiti
Skilled and Environmentally Educated SustainableTairāwhiti Tairawhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:
• Governance Effectiveness
• Community Engagement
• Major Projects
• Financial Sustainability
• Community Viability and Functioning
• Customer Needs
• Performance Culture
What are our plans for the next ten years? PLANNING and PERFORMANCE
What are we doing now? What will we do in years 1-10?
Preparing the 2012-2012 Ten Year Plan. Years 1-3
Prepare and consult on Council’s Ten Year Plan and Annual Plans.
Prepare and disseminate Annual Reports.
Have in place a performance management system for integrated reporting across the organisation.
Undertake Council outcome reporting.
Years 4-10
Preparation and consultation on Council’s Ten Year Plan and Annual Plans.
Implement new performance management system for integrated reporting.
We will achieve these plans by…
• Adequately resourcing the Planning and Performance section, the community consultation processes and the production and dissemination of our plans and reports.
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COMMUNITY POLICY and RESOURCES
What are we doing now? What will we do in years 1-10?Operating distinct work-streams through the Community Development and Economic Development units.
Facilitating the development of strategies and identifying collaborative partnerships for new strategies.
Identifying and sourcing external funding for community and economic development initiatives.
Supporting community and youth participation in decision-making.
Distributing community grants.
Funding external providers to deliver regional marketing and city centre promotions.
Providing economic monitoring to Council and supporting economic development initiatives.
Years 1-3Have fully integrated community development and economic development strategies, policy budgets and work-streams to better deliver on community outcomes.
Embed community policy and resources work across all departments of Council.
Implement, review and monitor strategies that have been developed with the community.
Continue to source external funding collaborative initiatives and deliver programmes to a high standard.
Build on Tairawhiti Youth Voice through sourcing funding and support.
Improve on service level agreements and monitoring and reporting frameworks for contractors.
Support the development of an economic development entity.
Undertake investigations and collaborations for a youth/community hub.
Assist and/or lead initiatives that make the district an attractive place to work, live and play.
Support the facilitation of community projects /neighbourhood initiatives. Support the Waikirikiri community hub project.
Support the development of the Gisborne Community House.
Support a regional Tamariki/Whanau Strategy.
Support the roll out of the Rural Broadband Initiative and the Ultra Fast Broadband Initiative.Years 4-10Continue to maintain levels of service.
We will achieve these plans by…• Reviewing current roles and responsibilities across the Community Development Unit and Economic Development Unit
reprioritising current work activity to better align with the delivery of strategic outcomes and community well beings.
• Initiate changes to Council funding schemes to ensure better monitoring and reporting on outcomes.
• Build the capacity and capability of Council to deliver on programmes and initiatives effi ciently and within budget.
MĀORI ENGAGEMENT
What are we doing now? What will we do in years 1-10?Operating a liaison service primarily in an advisory capacity to the elected members.
Years 1-3
Assist in establishing processes for the Local Leadership Body.
Review existing mechanisms for Māori to participate in democratic decision making.
Implement and review internal capability building project “Te Tuia”.Years 4-10
Ongoing implementation and development of Council vision and values.
We will achieve these plans by…
• Information sharing to keep people informed , seek submissions and seek further engagement.
• Consider any resourcing implications that may arise from engagement for Council and community.
• Use of Standing Orders, Appendix G – a fi xed agenda item for every Council and Council Committee meeting that allows for direct tangata whenua input into the decision-making forums and processes of Council.
• Being available to assist as appropriate.
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Challenges and opportunitiesThe challenge for Council’s Community Planning and Development Activity is to be responsive to the changing needs of the community and their drive to have more sustainable neighbourhoods and townships. Declining Central Government funding may see more pressure on Council to deliver local solutions for local issues.
The projections of a static population suggests that the economic development activity needs to have more of a focus on attracting people to live and do business in our region. A major consideration for Council will also be whether or not to support and/or fund a stand alone Economic Development Agency. This may see the current levels of service delivered under Economic Development increase.
The Local Leadership Body is also going to require a concerted effort from Council to develop and have in place appropriate processes to deliver operationally on the requirements of the new entity.
Information technology is developing at rapid speeds and will impact on how effectively Council engages with and supports the community to contribute to decision making.
Signifi cant effects There are no signifi cant negative effects from this activity.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
PLANNING and PERFORMANCE
We contribute to all Council outcomes by supporting Council and the community to formulate the region's direction by coordinating Council's strategic planning and reporting documents that take into account the community's views and preferences.
Council’s planning and reporting documents meet compliance standards.
Achieved Achieved Achieved
Percentage of residents satisfi ed with the way Council involves the public in the decisions it makes as found in the Annual Resident Satisfaction Survey.
56% 65% 70%
Percentage of respondents’ satisfaction with Council’s long term planning consultation and direction as found in a biannual survey of key internal and external stakeholders.
New Measure Year 1: 65%
Year 2: 70%
Year 3: 70%
70%
Percentage of residents who have seen or read the Annual Plan Summary or Annual Report Summary as found in the Annual Resident Satisfaction Survey.
New Measure 60% 60%
COMMUNITY POLICY and RESOURCES
We contribute to a Prosperous and Connected Tairāwhiti by providing and contracting services that enhance and promote the city centre and region in order to attract people and businesses.
Contracted organisations meet agreed performance targets.
New Measure Achieved Achieved
Percentage of stakeholders satisfi ed with district and city centre promotion and marketing as found in two yearly stakeholder survey.
New Measure Establish baseline
To be determined
after baseline set
78
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Prosperous Tairāwhiti by working collaboratively with organisations and community groups to support and/or enhance economic development opportunities in the region.
Percentage of stakeholders satisfi ed with Council’s participation in economic development as found in two yearly stakeholder survey.
New Measure Establish baseline
To be determined
after baseline set
Percentage of residents satisfi ed with Council’s efforts to expand business within the region as found in the Annual Resident Satisfaction Survey.
59% 60% 65%
We contribute to an Empowered Tairāwhiti by supporting communities to participate in decision making processes.
Stakeholder surveys show that interventions have improved targeted community understanding of, and participation in, decision making processes.
New Measure Year 1: 60%
Year 2 : 70%
Year 3 : 70%
Number of workshops between targeted community groups and Council that address participation in decision making.
New Measure Establish baseline
To be determined
after baseline set
We contribute to an Empowered, Prosperous, Skilled and Educated, Vibrant and Safe Tairāwhiti by working with communities and government agencies to deliver and/or coordinate resources and programmes into the community so that they are supported to fi nd their own solutions to issues.
Key stakeholder satisfaction with Council’s contribution to community development as found in bi-annual stakeholder survey.
New Measure Year 1: 65%
Year 2 : 70%
Year 3 : 70%
70%
Number of partnerships maintained with government/non-government agencies and community groups.
60 To be determined
To be determined
Number of external funding programmes supported to assist collaborative/community initiatives.
New Measure To be determined
To be determined
MĀORI ENGAGEMENT
We contribute to an Empowered Tairāwhiti by supporting and encouraging effective Māori participation in Council processes and by meeting the obligation to the Local Leadership Body as set out in the statute.
Level of service agreements (or Memorandums of Understanding) are in place with Māori entities.
New Measure Achieved Achieved
Council’s obligations to the Local Leadership Body as set out in the statute are met.
New Measure Achieved Achieved
Relationships are working as evidenced by the Local Leadership Body annual satisfaction survey.
New Measure Achieved Achieved
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Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 135 137 139 141 143 146 148 151 154 157
Operating Expenses 1,834 1,852 2,029 1,928 1,969 2,201 2,145 2,099 2,332 2,212
Net Cost of Service 1,699 1,715 1,890 1,787 1,826 2,055 1,997 1,948 2,178 2,055
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Increase level of service
25 0 0 0 0 0 0 0 0 0
Capital Projects 25 0 0 0 0 0 0 0 0 0
Total capital projects
$000
's
Depreciation v renewal capital projects
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Community Planning & Development
Implementation of Origen Performance Management
Increase 25,000 25,000
Totals: 25,000 25,000
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Why we do itThe Council aims to contribute to our community’s life-long learning, literacy development, education, intellectual development, recreational, economic and cultural needs through the provision of library activities and services.
What we do and whyCouncil library services provide a wide range of resources for the community that individuals may not be able to afford for themselves. Council operates the HB Williams Memorial Library, serving Gisborne’s urban and rural communities by providing space and resources including professional staff, books, a website, databases, free internet, e-books, magazines, non-book material, talking books, music and art works. In addition, the following six smaller community libraries, managed by volunteers, also operate to enhance rural access to library resources:Matawai RereMotu Tokomaru BayTolaga Bay Waikura Valley.
This activity contributes to the following Council outcomes
Connected Empowered Tairāwhiti Tairāwhiti
Skilled and Educated Vibrant Tairāwhiti Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Community Engagement • Major Projects • Financial Sustainability • Risk Management • Business Effi ciency • Customer Needs.
What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?Providing an excellent collection of books, non-book materials, internet and wifi .
Staff designed and delivered literacy programmes for preschoolers through to tertiary students occur on a near daily basis.
Positioning work has been completed to provide for the next 10 years. Re-roofi ng, carpeting, web-based Library management software, a radio identifi cation security system and a laser-based fi re security system allow for integration of new databases and accurate security of assets.
Years 1-3Carry out the necessary feasibility and design work, in order to complete construction of an expansion to the existing HB Williams Memorial Library by 2013/14.
In consultation with rural residents, review the viability of community libraries.
Develop and ratify the Library Strategy 2013-2017.
Have resourced and implemented technological improvements in line with customer expectations.
Years 4-10Manage and deliver new opportunities and programmes in services associated with facility development i.e. research centre, community spaces for specifi c audiences, all based around literacy and information development in the community.
Continue to provide relevant traditional library services as determined by community yet move service to become primarily tailored around individual needs.
We will achieve these plans by…• Ensuring Gisborne’s library service is a community leader in the delivery of signifi cant opportunities for life-long learning
through providing, preserving and accessing useful collections and services refl ecting the district’s unique bicultural population base.
• Responding to technological expectations through an improved website, databases, accurate catalogue, free internet and wifi hotspots to support urban, rural and transient customers.
• Supporting services to elderly and print disabled through provision of large print books, e-books and delivery to homebound clients.
• Developing services for teenagers through suffi cient and relevant spaces and resources.
• Provide ongoing effi ciencies through smart provision of services by freeing staff from repeat transactions that could be provided electronically e.g. Digitisation of Photo News project, self issue and payment machines.
HB Williams Memorial Library
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Challenges and opportunities• Building Expansion: There is potential for up to a
30% increase in use, in addition to the 30% increase in use over the past 3 years. Whilst the building will receive increased numbers it is expected demand in customer requests will exceed available resources, both in staff and operational funding. The challenge is to continue to provide excellent contemporary service funded appropriately.
• Literacy development and local economic growth: There is a challenge to measure literacy quality growth in the community, linked to library services. Probable participation in national customer study supported by local authorities.
• The large sector of population aged 12 – 25 years may be unsupported by quality library services and growing literacy inadequacies in the age group.
• National Library of New Zealand directions/initiatives will determine to a certain extent the shape and type of library services provided in the future.
• Possible school closures and increased forestry on farmlands could mean continued decline of rural library use.
• Communication networks in rural areas may not be robust enough for multiple application or even cell phone coverage.
• Capped limited operating budgets.
Signifi cant effectsThere are no signifi cant negative effects from this activity.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Vibrant, Empowered, Connected, Skilled and Educated Tairawhiti by providing a range of accessible, quality library services tailored to meet the needs of Gisborne district residents.
Percentage of households that have used the HB Williams Memorial Library in the last 12 months as found in the Annual Resident Satisfaction Survey.
66% 66% 80%
Number of visitors to HB Williams Memorial Library per annum.
New Measure
230,000 265,000
Number of registered members as a percentage of total population according to Library Information Association of New Zealand Aotearoa (LIANZA) standard E.3.1 - 35% of total population.
49% 50% 50%
To provide new book and non-book items including e-books according to LIANZA standard D.1.3.
New Measure
350 per 1000 capita
350 per1000 capita
Percentage of residents satisfi ed with Gisborne district’s library services as found in the Annual Resident Satisfaction Survey.
82% 80% To increase by 1% per annum
Compliance with LIANZA Guidelines for library opening hours per week.
47 hours 47 hours 47 hours
Number of key literacy/education programmes run each year.
39 30 30
82
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 137 142 146 151 157 162 167 173 179 185
Operating Expenses 1,495 1,575 1,595 1,627 1,684 1,760 1,813 1,878 1,930 1,992
Net Cost of Service 1,358 1,433 1,449 1,476 1,527 1,598 1,646 1,705 1,751 1,807
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Increase level of service
200 2,838 0 0 0 0 0 0 0 0
Asset purchases - Maintain level of service
193 202 212 198 307 199 206 213 324 228
Capital Projects 393 3,040 212 198 307 199 206 213 324 228
Total capital projects
Depreciation v renewal capital projects
83
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Libraries
Library - Building Expansion Increase 3,038,000 200,000 2,838,000
Library - Replace Air conditioning Units
Maintain 26,000 26,000
Library - Furniture : bench and seating for commons area
Maintain 20,000 20,000
Library - PC enable TV & freeview box
Maintain 2,000 2,000
Library - Surveillance camera pack
Maintain 2,000 2,000
Library - replace carpet Maintain 104,000 104,000
Library - replace cash register Maintain 2,000 2,000
Library - E-books Maintain 47,000 4,000 4,000 4,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Renew Integrated Library Management System
Maintain 114,000 114,000
Replacing Ceiling Baffl es Maintain 32,000 32,000
Library - DVD / CD's / Talking Books
Maintain 116,000 10,000 10,000 11,000 11,000 11,000 12,000 12,000 13,000 13,000 13,000
Library - Covered Way Roof Replacement
Maintain 12,000 12,000
Library Books Maintain 1,572,000 135,000 139,000 144,000 149,000 154,000 159,000 164,000 170,000 176,000 182,000
Library Books ex Book Trust Maintain 233,000 20,000 21,000 21,000 22,000 23,000 24,000 24,000 25,000 26,000 27,000
Totals: 5,320,000 393,000 3,040,000 212,000 198,000 307,000 199,000 206,000 213,000 324,000 228,000
84
Parks and Open SpacesWhy we do itThe Council maintains a Parks and Open Spaces network that provides our district with areas that allow cultural, leisure and recreational activity and opportunities while ensuring landscape amenity values and ecological protection and enhancement of these areas is achieved.
What we do and whyThe Parks and Open Spaces Group includes the following activities:• Parks, Reserves and Open Spaces• Cemeteries• Conveniences.
Council provides a range of parks and open space areas, amenities, services and venues for both active and passive recreation across the district. These include parks and open spaces that are categorised according to their primary purpose:
• Sport and Recreation.
• Neighbourhood Parks.
• Public Gardens.
• Cultural Heritage (including cenotaphs, memorials and cemeteries).
• Nature Parks (including coastal and esplanade natural or semi-natural areas, boat ramps and jetties).
• Outdoor Adventure.
• Civic Space.
• Recreation and Ecological Linkages (including walking and cycling access ways).
The Parks and Open Spaces network includes assets that relate to public parks and reserves, sports grounds, foreshore, beaches, bush, rivers, esplanade and other open space recreation areas throughout the district. Approximately two thirds of the value of these assets are located within the Gisborne City urban area, with the balance spread throughout the district, roughly in proportion to population distribution.
The network helps protect the district’s biodiversity and moderate the impact of human activity on the natural environment. Because much of the benefi t derived from these areas is intangible and occurs over time, they are diffi cult to price, can be overlooked, taken for granted or undervalued. The Parks and Open Spaces activity is however consistently an area of Council provision that is highly rated and appreciated by the public.
Parks and open space areas also have an inherent existence value in that their very presence confers wellbeing benefi ts even to people who may never set foot in them. Open spaces and linkages in and around Gisborne City help foster more active lifestyles and provide outdoor, cultural and recreational opportunities. For rural townships, parks and open space areas bring benefi t by providing a focal point where people gather for sport, recreation and social or cultural based activities which help engender a sense of community. A function of Council under legislation is to provide for and ensure sustainable community health and wellbeing. A key driver and considerable part of this is gained from and expected by communities through the adequate and appropriate provision of parks and open space areas.
This activity contributes to the following Council outcomes
Connected Healthy Tairāwhiti Tairāwhiti
Vibrant Environmentally Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Community Engagement.
85
What are our plans for the next ten years?What are we doing now? What will we do in years 1-10?
Working with communities, individuals and key stakeholder groups on Parks and open Spaces activity related goals and outcomes that fl ow from the Township Plans and Parks and Reserves Management Plans.
Working with contractors and service providers to drive improvement and achieve community outcomes.
Years 1 - 3Programmes to upgrade and potentially rationalise the district's playgrounds to ensure national safety standards are achieved and maintained and playgrounds are fi t for purpose and located relevant to demand.
Review of Council owned properties (open space) to ensure surplus areas are not retained if not required.
Development and use of the Parks and Open Space Activity Management Plan and parks and open space areas Improvement Schedules.
Review of Gisborne region's sporting facilities and related demand sponsored by Eastland Community Trust (ECT).
Review and alignment of Parks and Open Space service provider contracts with a view to streamline and align activities (where possible) to ensure best value is delivered.
Years 4-10:Future acquisition of key/strategic esplanade reserves and provision of new neighbourhood parks as appropriate and relevant to urban development.
Review of Council owned properties (open space) to ensure surplus areas are not retained if not required.
Review of Gisborne region's sporting facilities and related demand (ECT sponsored).
We will achieve these plans by…Various Council strategies including the Walking and Cycling Strategy, Urban Coastal Strategy, Active Recreation Strategy and the Open Spaces Strategy detail the management and development of the district’s Parks and Open Spaces network.
Alongside and a key part of these are inputs and desired outcomes from:
• The cyclic preparation, implementation and review of Parks and Reserves Management Plans (as required under the Reserves Act).
• Recreation and open spaces related aspirational desires/outcomes that emanate from Township Plans.
• Continued review of methods, systems and processes that look to drive improvement and ensure agreed levels of service remain achievable.
• Strengthening and where appropriate formalising relationships with key stakeholder groups and communities who have a specifi c or broad interest in the Parks and Open Spaces network.
Challenges and opportunitiesAs communities develop and change, challenges for Council within the Parks and Open Spaces activity will include the need to plan for such things as:• An ageing population and likely related fi xed
incomes.• Potentially increased transport and mobility costs
of customers.• A desire for affordable and readily accessible
recreation, social and cultural related activities and opportunities.
• The potential rationalisation of children’s playgrounds and play equipment related to provision appropriate to demand.
• The provision of urban walking and cycleway linkages.
• Better all round utility of sporting infrastructure.
• Opportunities to attract visitors and/or new residents to the district related to the notion of seeing the Gisborne district as a great place to live, work and play.
• Opportunities to review levels of service appropriate to the Park or Open Space category (i.e. its primary purpose and location). This could include, for example, adjusting mowing regimes/frequency based on ‘what good looks like’ (i.e. fi t for purpose) from the customer's point of view, or the reduction over time of public litter bins in line with waste minimisation strategies or the reduction of annual plantings in favour of lower cost perennial plantings.
Signifi cant effects There are no signifi cant effects from this activity.
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How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
PARKS and OPEN SPACES
We contribute to a Healthy Vibrant and Environmentally Sustainable Tairawhiti by providing a parks and open spaces network that protects landscape amenity values and biodiversity while promoting leisure and recreational opportunities that meet the needs of the district.
Percentage of residents satisfi ed with our local parks as found in the Annual Resident Satisfaction Survey.
New Measure 86% 86%
Percentage of Requests for Service regarding Parks and Open Spaces resolved within target timeframes ranging from 2 days for emergency public convenience matters to 60 days for ongoing street tree issues.
93% 95% 95%
Percentage of customers who rate Request for Survey responses as excellent/good.
98% 100% 100%
User satisfaction with sports fi eld surface conditions and maintenance.
76% 82% 82%
User satisfaction with park cleanliness and lack of litter and graffi ti.
78% Increasing Increasing
Percentage of playgrounds that meet relevant New Zealand safety standards.
68% Increasing Increasing
Percentage of operating costs recovered from user charges per annum.
5% 5% 5%
Number of collaborative projects undertaken with community groups that maintain or improve Parks and Open Spaces.
New Measure 10 10
CEMETERIES
We contribute to a Connected Tairawhiti by ensuring cemeteries and crematoria are accessible, affordable and cater for the cultural, spiritual and burial needs of the district.
Compliance with the Burials and Cremation Act 1964 to achieve safe and hygienic burials and cremations.
Achieved Achieved Achieved
Percentage of operating costs recovered from user charges per annum.
49% 80% 80%
PUBLIC CONVENIENCES
We contribute to a Connected Tairawhiti by providing safe, fi t for purpose and appropriately located public conveniences that meet the needs of the district.
Percentage of residents satisfi ed with public conveniences as found in the Annual Resident Satisfaction Survey.
59% Year 1: 65%
Year 2&3: Increasing
Increasing
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Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 334 349 360 372 384 398 411 424 440 455
Operating Expenses 4,156 4,304 4,579 4,948 5,318 5,635 5,817 6,011 6,240 6,434
Net Cost of Service 3,822 3,955 4,219 4,576 4,934 5,237 5,406 5,587 5,800 5,979
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Growth 2 0 16 135 68 5 7 13 3 523
Asset purchases - Increase level of service
190 2,558 3,624 2,484 2,775 337 518 1,530 57 13
Asset purchases - Maintain level of service
665 521 2,604 552 743 678 785 614 1,034 655
Capital Projects 857 3,079 6,244 3,172 3,585 1,020 1,310 2,157 1,094 1,191
Total capital projects
2022
Depreciation v renewal capital projects
88
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Parks & Open Spaces
Parks & Reserves - Land Improvements (DC'S)
Growth 296,000 109,000 56,000 131,000
Parks and Reserves - Land Purchases (DC's)
Growth 392,000 392,000
Conveniences Proposed New Toilet (Inner Harbour)
Increase 118,000 118,000
Parks and Reserves - Ruatoria Domain Recreational Reserve (Puawaitange Park)
Increase 112,000 60,000 26,000 26,000
Parks and Reserves - Te Arai Recreation Reserve (Manutuke Park)
Increase 33,000 22,000 11,000
Parks and Reserves - Tokomaru Bay
Increase 66,000 32,000 22,000 12,000
Parks and Reserves - Te Araroa
Increase 64,000 5,000 59,000
Parks and Reserves - Sports Grounds
Increase 430,000 212,000 218,000
Tairawhiti Navigations Project Increase 9,458,000 100,000 2,212,000 3,230,000 818,000 945,000 266,000 416,000 1,470,000
Parks and Reserves - Matawai Increase 10,000 10,000
Parks and Reserves - Te Puia and Waipiro
Increase 59,000 5,000 26,000 27,000
Parks and Reserves - Tikitiki & Rangitukia
Increase 50,000 11,000 39,000
Town Entrance - Airport to City Increase 24,000 24,000
Kaiti Beach Reserve Increase 56,000 10,000 11,000 11,000 12,000 13,000
Parks and Reserves - Makorori Beach Reserve Implementation of Proposed Management Plan
Increase 55,000 11,000 22,000 23,000
Parks and Reserves - Wainui Reserve Carpark
Increase 55,000 55,000
Anzac Park - New Planting Increase 3,000 1,000 1,000 1,000
Parks and Reserves - Nelson Park Upgrade - Carpark and Implement Proposed Management Plan
Increase 119,000 26,000 27,000 11,000 12,000 12,000 31,000
Parks and Reserves - Waihirere Domain Reserve Management Plan
Increase 54,000 29,000 25,000
Parks and Reserves - Waikanae/Midway Beach Reserve Management Plan
Increase 248,000 53,000 55,000 56,000 23,000 24,000 18,000 19,000
Inner Harbour Redevelopment Increase 3,087,000 309,000 1,091,000 1,688,000
Parks and Reserves - Implementation of Rere Management Plan
Increase 58,000 10,000 11,000 11,000 12,000 13,000
Conveniences - Rural Maintain 206,000 18,000 19,000 19,000 20,000 20,000 20,000 21,000 22,000 23,000 24,000
Conveniences - City/Rural Maintain 630,000 55,000 57,000 58,000 60,000 62,000 64,000 65,000 67,000 70,000 72,000
Conveniences Pit Toilets Maintain 141,000 25,000 26,000 28,000 30,000 32,000
Parks and Reserves - Adventure Playground Recreation Reserve
Maintain 111,000 53,000 58,000
Parks and Reserves - Bridges Maintain 81,000 14,000 15,000 16,000 17,000 18,000
Parks and Reserves - Buildings Maintain 343,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000
Kapututea Private Reserve - Waipaoa River Mouth
Maintain 53,000 20,000 10,000 11,000 11,000
Parks and Reserves - Hard Surfacing/Paving/Concrete
Maintain 916,000 80,000 82,000 85,000 87,000 90,000 93,000 95,000 98,000 101,000 105,000
Parks and Reserves - Picnic Tables, Furniture and Fountains
Maintain 572,000 50,000 51,000 53,000 55,000 56,000 58,000 59,000 61,000 63,000 65,000
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Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Parks and Reserves - Lighting Maintain 114,000 10,000 10,000 11,000 11,000 11,000 12,000 12,000 12,000 13,000 13,000
Parks and Reserves - Playground Equipment
Maintain 1,427,000 150,000 103,000 159,000 109,000 169,000 116,000 178,000 123,000 190,000 131,000
Parks and Reserves - Walls/Retaining Sea Walls/Monuments
Maintain 572,000 50,000 51,000 53,000 55,000 56,000 58,000 59,000 61,000 63,000 65,000
Parks and Reserves - Titirangi Recreation Reserve
Maintain 339,000 55,000 26,000 26,000 27,000 51,000 29,000 30,000 31,000 32,000 33,000
Parks and Reserves - Dune Care Maintain 114,000 10,000 10,000 11,000 11,000 11,000 11,000 12,000 12,000 13,000 13,000
Parks and Reserves - WD Lysnar & Wainui Beach Reserves
Maintain 113,000 20,000 21,000 23,000 24,000 25,000
Parks and Reserves - Neighbourhood Parks Recreational and Local Purpose Reserves
Maintain 229,000 20,000 21,000 21,000 22,000 23,000 23,000 24,000 25,000 25,000 26,000
Cemeteries Capital Renewals Maintain 104,000 4,000 14,000 4,000 15,000 5,000 16,000 5,000 17,000 5,000 18,000
Cenotaph Earthquake Repairs Maintain 1,900,000 1,900,000
Parks and Reserves - Jetties and Boat Ramps
Maintain 395,000 70,000 74,000 79,000 83,000 89,000
Parks and Reserves - Management Plans
Maintain 59,000 28,000 6,000 6,000 6,000 6,000 7,000
Parks and Reserves - Alfred Cox Park - Implement Waikanae/Midway Management Plan
Maintain 47,000 29,000 18,000
Parks and Reserves - Civic Reserves Implementation of Management Plan
Maintain 30,000 30,000
Parks and Reserves - Botanical Gardens - Implement Management Plan
Maintain 116,000 21,000 22,000 23,000 25,000 26,000
Parks and Reserves/Sports Grounds Renewals Programme
Maintain
Totals: 23,709,000 857,000 3,079,000 6,244,000 3,172,000 3,585,000 1,020,000 1,310,000 2,157,000 1,094,000 1,191,000
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Animal Control Why we do itTo minimise the danger, distress and nuisance caused by stray dogs, and to ensure the control of stock on the roads of the district in the interests of public safety.
What we do and whyThe Animal and Stock Control section is responsible for effective dog and stock control in the Gisborne district. This includes:
• Investigating complaints received in relation to dog and stock behaviour.
• Maintaining a register of dogs within the district and identifying and processing unregistered dogs.
• Controlling stock on all district roads and on State Highway 2 and 35 on behalf of the New Zealand Transport Agency.
• Maintaining a service and facilities for the impounding and care of stray and seized dogs and stock.
• Providing education on dog and stock control, ownership and safety.
• Monitoring and enforcing regulations and bylaws.
The new dog pound in Dunstan Road, Gisborne has been in operation since August 2010. This facility is a vast improvement on the previous pound and is working satisfactorily. An upgrade of the Te Puia Service dog pound has recently been completed.
Dog registration compliance continues to be encouraged through such means as education and microchip compliance. Dog registration data continues to be uploaded on the recently established National Dog database. The Council also runs educational information on topics such as dog bite safety, animal control and welfare.
The Council ensures that the district’s roads are kept free of wandering stock by the physical removal of stock from roads following notifi cation, undertaking a programme of rural fencing checks throughout the district and through providing information to farmers. The delivery of the Animal Control activity is guided by a number of key strategies and policy documents in addition to specifi c Acts and Bylaws. These documents set the strategic environment under which this Activity Management Plan has been developed and how the activity is managed. This plan is consistent with this strategic environment. Key strategies, Acts and Bylaws include: • Dog Control Act 1996 and subsequent
amendments.• Impounding Act 1995.• Gisborne District Council Dog Control Bylaw .• Gisborne District Council Dog Control Policy.
This activity contributes to the following Council outcomes
Healthy Tairāwhiti Safe Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Community Engagement • Financial Sustainability • Community Viability and Functioning• Risk Management • Business Effi ciency • Customer Needs.
What are our plans for the next ten years?What are we doing now? What will we do in years 1-10?
Continuing to provide a high quality dog and stock control service for the benefi t of their owners and the wider community.
Managing and servicing the recently completed fi t for purpose dog pound facility.
Continue to provide a high quality animal control service for animals, their owners and the wider community.
Continue to recognise and adequately resource the benefi ts of preventative measures and education to minimise dog and stock control incidents.
Achieve increases in compliance from dog and stock owners with all policies and regulations.
We will achieve these plans by…
• Adequately resourcing and carrying out all existing elements of the Animal Control activity.
91
Challenges and OpportunitiesThere are constraints on Council recovering costs and the user of a service cannot always be directly identifi ed. The monitoring of regulations and bylaws and the impounding of a dog whose owner cannot be identifi ed are two examples. Enforcement actions (Council prosecuting an owner in Court) are an expensive process and the ability to recover these costs is constrained by law.
Environmental Services
Signifi cant effects There are no signifi cant effects from this activity.
Risk mitigationAnimal Control issues with the highest degree of risk primarily relate to the health and safety of fi eld workers being compromised. An annually updated fi eld manual mitigates this. A risk register is included in the Animal Control Activity Management Plan.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3
Years 4-10
We contribute to a Safe and Healthy Tairawhiti by providing a service that controls dogs and stock to minimise risk to the public.
Percentage of Requests for Service resolved within target timeframes (ranging from 1 day for “person attacked” to 60 days for “ongoing fouling”).
96% 95% 95%
Percentage of customers who rate Requests for Service responses as excellent/good.
99% 95% 95%
Percentage of residents satisfi ed with Council’s efforts in controlling dogs as found in Annual Resident Satisfaction Survey.
69% 70% 70%
Percentage of known dogs that are registered.
89% 97% 97%
Percentage of properties with known dogs visited per year.
60% 90% 90%
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 697 717 739 762 787 812 837 863 893 922
Operating Expenses 575 583 597 612 628 643 658 676 696 714
Net Cost of Service (122) (134) (142) (150) (159) (169) (179) (187) (197) (208)
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Capital Projects 0 0 0 0 0 0 0 0 0 0
92
Building Services Why we do itTo promote the safety of people living and working in buildings and provide information on request to applicants who either intend to build on or purchase a property.
What we do and whyThe Building Services activity is governed by the Building Act 2004 and the Local Government Offi cial Information and Meeting Act and provides the following services:
• Issuing and monitoring building consents which ensure new structures meet the NZ Building Code.
• Issuing Code Compliance Certifi cates (CCCs) for building works that have been completed in accordance with the building consent.
• Issuing Land Information Memoranda (LIMs) which identify and disclose information about the property or surrounding properties including which consents have been issued for the property.
• Providing accurate and up to date information in relation to the building consent process to members of the public.
• Issuing compliance schedules and monitoring the currency of building warrants of fi tness.
• Responding to requests for service on building related matters and drainage on private property.
• Provide a building management and overview service for the Community Facilities section for public conveniences.
• Ensure all new pools comply with the provisions of the Fencing of Swimming Pools Act and monitor the district for pools without building consent or non compliant pool fences.
• Assess buildings constructed before 1976 (the implementation of New Zealand Standard 4203) against the defi nition of earthquake prone as defi ned in the Building Act.
This activity contributes to the following Council outcomes
Healthy Safe Prosperous Tairāwhiti Tairāwhiti Tairāwhiti
Environmentally Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Governance Effectiveness • Natural Resource Use • Financial Sustainability • Community Viability and Functioning • Risk Management • Business Effi ciency • Customer Needs.
93
What are our plans for the next ten years?What are we doing now? What will we do in years 1-10?
Currently 93% of all building consents are processed within statutory timeframes. Since the introduction of the accreditation requirements of the Building Act 2004, processing times increased for a period of years but have now, since the processes have become embedded in staff work methods, improved to be consistently over 90%.
The Building Act 2004 requires that local authorities be registered as building consent authorities before they can undertake building consent processing. To be registered as a building consent authority, organisations must be granted accreditation from the Building Consent Accreditation Body. Gisborne District Council was registered as an Accredited Building Consent Authority on 13 May 2008. The second audit occurred in 2009 and accreditation against the quality assurance regulation 17 awarded on 5 October 2010.
Currently 98.8% of LIMs are processed within statutory timeframes.
Maintain accreditation with the Department of Building and Housing as a building consent authority.
Achieve improved effi ciency in the receipt and processing of consent applications and LIMs, particularly through the use of electronic applications and processing means.
Revise compliance schedules to ensure specifi ed systems and features are scheduled accurately.
Upskill staff in preparedness for impending changes to the Building Act 2004 and other relevant legislation.
Reduce processing times for all building consents and LIMs applications without detracting from the quality and thoroughness of the process.
Reduce the backlog of outstanding Code Compliance Certifi cates.
Be among the most earthquake prepared cities in relation to strengthened buildings in New Zealand.
Ensure all identifi ed swimming pools in the city and environs comply with the provision of the Fencing of Swimming Pools Act and maintain that compliance.
We will achieve these plans by…
• Maintaining the quality assurance systems to meet Regulation 17 of the Building Act 2004 and ensure ongoing team consistency.
• Researching and evaluating electronic solutions to consent processing and inspection recording. The primary aim is to reduce paper handling and allow parallel processing of building consents which will eliminate ‘hang’ time as sections pass the consent around.
• Continuing with a program for reducing/removing the backlog of outstanding Code Compliance Certifi cates.
• Ensuring that all building control offi cers have an appropriate qualifi cation or are working towards one and allow staff the time and resources to upskill in aspects of the new Building Act that applies to their processes.
• Auditing buildings for fi re safety features and other specifi ed systems to ensure they comply with the requirements of the New Zealand Building Code to ensure ongoing public safety.
• Maintaining the earthquake prone building register and ensure compliance with the earthquake prone building policy timeframes.
• Introducing a targeted rate for all swimming pool owners and use that income to fund a three yearly rotating inspection regime for all pools.
Challenges and opportunitiesSince the introduction of the Building Act 2004, processing times have increased due to the increase in documentation to be supplied and checked. This has caused diffi culties in maintaining compliance with statutory timeframes. Additional burden has been placed on staff in completing the process to become an Accredited Building Consent Authority.
Any growth in demand for building consents is expected to be tempered by the impact of the provisions of the Building Bill (No. 3) if it is passed by Parliament and then enacted. The proposed timeframes for these possible changes can not be quantifi ed at this point.
Signifi cant effects Earthquake strengthening legal requirements may lead to the demolition of older buildings in order to ensure a safer central business district.
Risk mitigationThe Building Services activity has included a risk register in its Activity Management Plan to ensure any identifi ed risks are mitigated.
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How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years
1-3Years 4-10
We contribute to a Safe, Healthy, Environmentally Sustainable and Prosperous Tairawhiti by promoting the safety of people living and working in buildings through processing and monitoring building consent applications.
Percentage of Requests for Service resolved within target timeframes.
77% Year 1: 85%
Year 2 : 87%
Year 3 : 90%
90%
Percentage of customers who rate Request for Service responses as excellent / good.
99% 90% 90%
Percentage of Building Consents processed within target timeframes.
93% Year 1: 90%
Year 2 : 90%
Year 3 : 95%
95%
Percentage of Land Information Memorandums processed within target timeframes.
99% Year 1 : 90%
Year 2 : 90%
Year 3 : 95%
95%
Advise building owners / occupiers of the expiry date of their Warrant of Fitness one month before the expiry date.
100% 95% 95%
Percentage of Code Compliance Certifi cates that remain unresolved annually.
12% Year 1 : <16%
Year 2: <15%
Year 3: <14%
13%
Forecast activity cost statementOPERATING REVENUE &
EXPENDITURE ($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 844 871 899 930 962 995 1,028 1,062 1,100 1,139
Operating Expenses 1,021 1,073 1,074 1,133 1,136 1,196 1,197 1,264 1,269 1,343
Net Cost of Service 177 202 175 203 174 201 169 202 169 204
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Capital Projects 0 0 0 0 0 0 0 0 0 0
95
Why we do itCivil Defence Emergency Management (CDEM)To increase community awareness, understanding, preparedness and participation in CDEM, reduce the risks from hazards to the district and enhance the district’s capability to manage and recover from emergencies.
Rural FiresTo safeguard life, property and the environment by the prevention, detention, control, restriction, suppression and extinction of fi re in forest and rural areas within the Gisborne District Council Rural Fire Authority boundaries.
Marine Oil SpillTo protect our marine environment from pollution accidents.
What we do and whyThe Emergency Management Group includes the following activities:• Civil Defence Emergency Management• Rural Fire• Marine Oil Spill.
Civil Defence Emergency Management In accordance with the CDEM Act 2002, the Council:• Ensures there is organisational capability to
provide overall leadership for the response to, and the recovery from, an emergency.
• Has established and maintains a network of volunteers.
• Promotes and raises awareness of hazards and levels of preparedness.
• Provides the necessary planning and advice to the community for the management of response to, and recovery from, an emergency.
• Establishes and maintains systems for effective emergency communication (radio system) with the communities and other service providers.
There is a requirement under the Act for Council to carry out and lead CDEM in the Gisborne district. The outcome of this requirement is detailed in the CDEM Group Plan and its supporting documents. There are several other national documents that direct the activity and they are the National Strategy, with which the Group Plan cannot be inconsistent and the Directors Guidelines that must be taken into account.
The Council carries out the activity as it is required legally (CDEM Act 2002), but they also need to promote a level of service that complies with the intent of the Act, to deliver an organised and coordinated response to ensure community safety.
Rural FiresGisborne District Council has a statutory obligation to carry out the functions of a Rural Fire Authority as set out within the Forest and Rural Fires Act 1977 and the Forest and Rural Fires Regulations 2005.
The Gisborne District Council Rural Fire Authority works closely with other partners to ensure the most effective response to fi res within the district. This includes the establishment and operation of Volunteer Rural Fire Forces (Hicks Bay, Gisborne and Tiniroto), the co-locating of rural fi re authority tankers in New Zealand Fire Service Stations (Ruatoria, Tolaga Bay and Patutahi) and a joint operational response and fi re management partnership with the Eastland Rural Fire District. A close working relationship also exists with the Department of Conservation and Wairoa District Council.
Marine Oil SpillThe management of this activity recently transferred to the Emergency Management activity. The primary objective of the Marine Oil Spill is to safely mitigate the effects of an oil spill (in the marine environment) within the Gisborne district and, if practicable, to assist with the restoration of an oil damaged environment. The safety of human life takes precedence over every aspect of the response operation. There are no fi nancial impacts on Council by this activity as Maritime New Zealand reimburse all costs.
This activity contributes to the following Council outcomes
Connected Empowered Healthy Tairāwhiti Tairāwhiti Tairāwhiti
Environmentally Safe Sustainable Tairāwhiti Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Risk Management.
Civil Defence Emergency Management (CDEM)
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What are our plans for the next ten years?CDEM
What are we doing now? What will we do in years 1-10?
Complying with the CDEM ACT 2002 and the Group Plan. A year concentrating on public education.
Years 1-3Complying with the CDEM Act 2002 and the Group Plan. Three years of training year basics, Year 2 community and area level, Year 3 regional exercise.
Years 4-10Complying with the CDEM Act 2002 and the Group Plan. Year 4 is back to public education and then into the training cycle.
We will achieve these plans by…• Making sure our response meets the requirements of our plans and people are cared for in emergencies.
• ‘Passing’ annual audits and the fi ve yearly national monitoring and evaluation programme.
RURAL FIRE
What are we doing now? What will we do in years 1-10?
Complying with the legislation and national codes of practice.
The future past next year is uncertain because of a nation wide review of the activity to be undertaken by the National Rural Fire Authority.
We will achieve these plans by…• Making sure our response meets the requirements of our plans and people are cared for in emergencies.
MARINE OIL SPILL
What are we doing now? What will we do in years 1-10?
Complying with the current Tier 2 Marine Oil Spill Plan. Continuing to comply with required legislation as relevant under the 1994 Maritime Transport Act.
We will achieve these plans by…• Ensuring Council has enough equipment, trained staff and expertise to meet the requirements of the Act and the Tier 2 Plan.
Challenges and opportunitiesCDEM• Maintaining volunteers - community link and
communication systems.
• Using large global events to promote preparation.
• There is a steady shift of population into areas that are clearly identifi ed as having potentially high hazards impacts. Wainui is vulnerable to tsunami, while areas of Makaraka and the Poverty Bay Flats are prone to fl ooding.
• Life threatening earthquakes and possibly tsunami will occur in the district at least every fi fty years, fl ooding potentially every twenty years. The impacts of fl ooding and return periods for drought could be worsened by the predicted change in global climate conditions.
• The climate is changing which will have an impact on hazards such as rainfall events and drought and also if scenarios are correct a signifi cant impact on the rural fi re activity. More information about climate change is incorporated into the CDEM Group Plan and Council’s climate change reports.
Rural FireTo ensure that the Council’s rural fi re interests are robustly represented and taken into account if the area goes ahead with an enlarged rural fi re district. If the management aspect of Rural Fire does move from Council control there will still be fi nancial obligations.
Marine Oil SpillThe extent of our coast line and the high levels of marine activity mean that the risk of the occasional spill is quite high. A positive and robust approach to this activity by Council indicates that we are in a good position to minimise any risk to our environment.
Signifi cant effects There are no signifi cant negative effects from this activity.
Risk mitigationEmergency ManagementCDEM issues with the highest degree of risk primarily relate to the coordination of volunteers, agencies and resources in emergency events. A detailed current risk register that outlines how signifi cant risks are mitigated is included in the CDEM Activity Management Plan.
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How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
CIVIL DEFENCE AND EMERGENCY MANAGEMENT (CDEM)
We contribute to a Safe, Connected and Empowered Tairāwhiti by helping to build a more resilient district where communities understand and manage their hazards and risks.
Percentage of residents able to manage for 2-3 days without access to normal day to day services (i.e. having 2-3 days of emergency food, water and supplies) in the event of a natural disaster as found in our Annual Resident Satisfaction Survey.
92% 80% 80%
The percentage of residents aware of the risks of natural hazards (ie earthquakes, fl ooding/heavy rainfall and tsunami). This will be measured by a four yearly survey (next survey to be undertaken in 2013).
New measure Establish baseline
Maintain baseline
CDEM partner relationships are actively maintained and enhanced. Measured by annual survey of Coordinating Executive Group (CEG) on partnership readiness.
New Measure Achieved Achieved
CDEM response and recovery is carried out in accordance with established plans and procedures in order to minimise harm or damage to people and property. This is measured by event logs, reports and debrief notes.
Achieved 100% 100%
Communication systems that support business as usual systems in emergencies maintain reliability in events and are tested regularly so that any breakdowns are repaired as soon as practical. This is measured through check logs.
Achieved Achieved Achieved
RURAL FIRES
We contribute to a Helathy, Safe and Connected Tairawhiti by protecting life and property from rural fi res with trained personnel within the Gisborne District Council rural fi re authority area.
Percentage of customers who rate Requests for Service responses as excellent/good.
97% 94% 94%
Mutual response and assistance agreements in place with other fi re authorities.
Achieved Achieved Achieved
Initial investigations of all fi res which are to be claimed from the National Rural Fire fund.
100% Achieved
100% 100%
Percentage of fi re fi ghters who meet the National Rural Fire Authority Training Standards.
90% 80% 80%
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Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
MARINE OIL SPILL
We contribute to a Safe and Environmentally Sustainable Tairawhiti by protecting the environment from pollutants spilled in marine accidents.
The Marine Oil Spill Plan is current and staff lists are updated annually.
Achieved Achieved Achieved
Quarterly maintenance of equipment is completed.
Achieved Achieved Achieved
Maritime New Zealand requirements for staff training are meet.
Achieved Achieved Achieved
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 84 86 89 92 95 99 102 105 109 113
Operating Expenses 737 757 797 810 832 859 917 936 963 996
Net Cost of Service 653 671 708 718 737 760 815 831 854 883
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Maintain level of service
5 57 130 14 6 242 6 6 7 7
Capital Projects 5 57 130 14 6 242 6 6 7 7
Total capital projects
Depreciation v renewal capital projects
0
50
100
150
200
250
300
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$000
's
Renewal Cost Depreciation
99
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Civil Defence & Emergency Management
Civil Defence Radio System Renewal - Arowhana
Maintain252,000 8,000 8,000 236,000
NZ Fire Service Radio Upgrade Maintain 52,000 52,000
Rural Fires Hose packs Maintain 58,000 5,000 5,000 5,000 6,000 6,000 6,000 6,000 6,000 7,000 7,000
Rural Fires Water Tanker Maintain 116,000 116,000
Totals: 478,000 5,000 57,000 130,000 14,000 6,000 242,000 6,000 6,000 7,000 7,000
100
Environmental Health Why we do itTo provide environmental health services that effi ciently and effectively enhance the quality of life for all current and future residents and visitors to the Gisborne district. This involves environmental health management and community health protection in a manner that will promote and improve human health, safety, comfort and wellbeing for all persons in the Gisborne district as well as protect the environment.
What we do and whyCouncil undertakes a number of services each year to ensure that Gisborne remains a healthy and safe place to live, work and play. These include education, administration, enforcement and monitoring of:• Food, liquor, premises and disease control.• Living conditions.• Environmental protection e.g. air quality and
noise control.• Waste management.• Hazardous substances.• Local bylaws such as Port regulations and public
area control.
Environmental Health is primarily concerned with bringing about community well-being in a healthy environment through planning, education, surveillance, regulation, enforcement and response. The activity is split into a number of functions to perform this role:
Service Areas Service Focus
Food, Liquor, Premises and Disease Control
• Food Safety
• Education of food premises operators
• Respond to complaints
• Enforcement
• Sale of Liquor
• Registered Premises Control
• Events
• Gambling
Administer registrations, licences
Administer licences
Respond to complaints
Enforcement
Implement Council policy on gaming machines
Living Conditions
• Housing
• Sewage Treatment and Disposal
• Drinking Water Supplies
• Nuisances and Pests
Respond to complaints
Administer consents
Proactive monitoring
Environmental Protection
• Air Quality
• Noise and Vibration
• Resource Management
• Water Recreation
Administer consents
Proactive monitoring of resource consents
Proactive monitoring of background air environment
Respond to complaints
Enforcement
Public education
Proactive monitoring of background noise environment
Proactive monitoring of recreational waters
Service Areas Service Focus
Waste Management
• Litter
• General
Respond to complaints
Enforcement
Education
Proactive monitoring of waste handling sites
Hazardous Substances
• Hazardous Substances
• Contaminated Land
• Pollution Incidents
Proactive monitoring
Respond to complaints
Enforcement
Education
Respond to pollution incidents
Bylaws and General
• Port Regulation and Safety
• Public Area Control
Proactive monitoring
Respond to complaints
Education
Enforcement
This activity contributes to the following Council outcomes
Healthy Safe Environmentally Tairāwhiti Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Governance Effectiveness • Community Engagement • Natural Resource Use • Financial Sustainability • Community Viability and Viability • Risk Management • Business Effi ciency • Customer Needs.
101
What are our plans for the next ten years?What are we doing now? What will we do in years 1-10?
LIQUOR LICENSING
We are continuing to 'grow' strong interagency linkages to jointly tackle the issue of alcohol abuse and its effects on the wider community. Offi cers are involved in educational strategies aimed at involving the community in liquor related actions. However this involvement is limited due to limited resourcing and its non-statutory status.
Minimise and control liquor abuse and its effects in licensed premises and in public places.
PUBLIC/ENVIRONMENTAL HEALTH
What are we doing now? What will we do in years 1-10?
All registered food premises are inspected at least once a year, majority of registered premises are inspected six monthly, but high risk premises are inspected three times a year.
Proactive monitoring of public swimming pools and spas to minimise risk of illness.
An easy access point for public health (food hygiene etc) information.
Proactive monitoring of food premises to minimise risk of illness.
Strong linkages with Te Puna Waiora Public Health to achieve better statutory and community outcomes.
Achieve a complete 'picture' of noise trends in and surrounding the city and fully utilise this information to overlay and 'map' such strategies as Smartgrowth and Smart Living Places etc.
BYLAWS and PUBLIC SAFETY
Bylaws and operational policies have been reviewed recently.
Bylaws and legislative change proactively reviewed internally, together with the vast array of Council procedures which underpin our daily business, to ensure consistency, transparency and accountabilities around our compliance processes.
Public complaints investigated and resolved as quickly as possible.
We will achieve these plans by…
• Being vigilant with bylaws and monitoring to encourage positive behaviour in the community.
• Fostering respect for our community and environment through education of community regarding compliance regimes and processes.
• Ensuring that staff have the appropriate training, knowledge and resources.
102
Challenges and opportunitiesNew Food Act 2010A new Food Act is currently undergoing the Parliamentary process and is expected to become law in 2012. In the interim Council has become a signatory to a voluntary Implementation Programme, which sets out how councils can proceed as far as possible with implementation of the Food Act under the current legislative base. The implications of both the enactment of the Food Act and the voluntary Implementation Programme for Council are set out in the Environmental Health Activity Management Plan.
Alcohol Reform BillThis bill proposes to repeal and replace the Sale of Liquor Act 1989. The intent of the bill is to reduce excessive drinking and harm caused by alcohol.
Signifi cant effects There are no signifi cant effects from this activity.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3
Years 4-10
We contribute to a Safe, Healthy and Environmentally Sustainable Tairawhiti by regulating commercial operations and responding to environmental health issues in the interest of protecting public and environmental health.
Percentage of applications for liquor licences and food certifi cates processed within target timeframes.
95% 95% 95%
Percentage of registered and licensed premises that undergo a compliance inspection annually.
100% 100% 100%
Compliance with Building Act standards notice within specifi ed timeframe.
100% 100% 100%
Percentage of Requests for Service resolved within target timeframes ranging from 5 days for urgent animal nuisance matters to 60 days for ongoing abandoned vehicle issues.
99% 99% 99%
Percentage of customers who rate Requests for Service responses as excellent/good.
97% 93% 95%
Percentage of noise complaints to be assessed within half an hour of receiving a complaint.
95% 95% 95%
Percentage of pollution incidents to be responded to within one hour.
98% 98% 98%
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 274 283 292 302 313 323 334 345 358 370
Operating Expenses 1,242 1,271 1,306 1,345 1,387 1,428 1,471 1,520 1,573 1,627
Net Cost of Service 968 988 1,014 1,043 1,074 1,105 1,137 1,175 1,215 1,257
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Capital Projects 0 0 0 0 0 0 0 0 0 0
103
Environmental PolicyWhy we do it To protect and enhance the quality of the Gisborne district’s natural and physical environment, now and into the future.
What we do and whyThe role of the Environmental Policy activity is to develop strategy, policy and planning provisions on the management of the Gisborne district’s natural and physical resources and to provide policy advice on resource management to elected representatives and other Council activities.
As a unitary authority the Council exercises both local and regional planning functions so the Environmental Policy activity covers a broad range of policy work across the natural and the built environment.
The activity involves:• Ensuring a sustainable approach to land use and
development. • Ensuring the sustainable management of natural
resources.• Improving the quality of our built environments
and public spaces.• Monitoring and reporting on environmental change.• Assisting with policy on the provision and funding
of infrastructure.• Collaborating with tangata whenua on resource
management issues of cultural importance and giving effect to Tiriti o Waitangi/Treaty of Waitangi settlements in Council’s Resource Management Act Plans.
In preparing resource management policy and assessing applications for private plan changes, we must ensure policy is robust and evidence based, the costs of policy initiatives are borne equitably, and community perspectives are refl ected in policy outcomes.
The statutory framework for resource management within which the Environmental Policy activity operates includes the Resource Management Act 1991, Reserves Act 1977, Marine and Coastal (Takutai Moana) Act 2010, Historic Places Act 1993 and Local Government Act 2002.
To be effective, the Environmental Policy activity needs to consider a range of tools for achieving desired outcomes including regulations and education and advocacy programmes along with developing realistic implementation programmes.
This activity contributes to the following Council Outcomes
Healthy Prosperous Vibrant Empowered Tairāwhiti Tairāwhiti Tairāwhiti Tairāwhiti
Connected Safe Environmentally Tairāwhiti Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe primary strategic challenge areas that this activity intends to contribute to are:• Community Engagement • Natural Resource Use • Community Viability and Functioning
What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?ENSURING A SUSTAINABLE APPROACH TO LAND USE AND DEVELOPMENTRecent projects completed or nearing completion include:
• Review of Taruheru Block Infrastructure Plan.
• Development of provisions on night-time traffi c in Rural Industrial B Zone.
• Review of urban fl ood hazard overlay boundaries.
• Assessment of private plan changes for Mangapapa School, Scarly’s Way and Citrus Grove.
Years 1-3• Review the Gisborne Regional Policy Statement.
• Continue to review provisions in the District Plan including:
- Design uidelines for development in the CBD.
- Complete review of infrastructure standards for subdivision and development.
• Review planning provisions in the District and Coastal Plans for subdivision, use and development within the coastal environment.
• Prepare tsunami landuse planning provisions.Years 4-10• Continue to review provisions in the District Plan including:
- Urban fl ood hazard overlay.
104
What are we doing now? What will we do in years 1-10?ENSURING THE SUSTAINABLE MANAGEMENT OF OUR NATURAL RESOURCES Recent projects completed or nearing completion include:
• Appeals on natural heritage provisions resolved and operative.
• Peer review of regulatory framework for mining on land and in the coastal marine area.
• Establishment of the Gisborne Fresh Water Advisory Group of key stakeholders to guide the development of a Gisborne Freshwater Management Plan.
• Review of regulatory framework for on-site wastewater systems.
• Development of provisions on coastal occupation charging.
• Establishment of coastal hazard zones for Tokomaru Bay.
Years 1-3• Continue to implement the NZ Coastal Policy Statement
including:
- Coastal water quality management provisions.
- Protecting surf breaks of national signifi cance.
• Develop a Gisborne Freshwater Management Plan including:
- Objectives and policies for freshwater management across Gisborne district.
- A catchment plan with water quality standards and allocation limits for Waipaoa Catchment.
Years 4-10• Continue to implement the NZ Coastal Policy Statement.
• Continue to implement the Freshwater Management Plan including catchment plans for:
- Waiapu Catchment
- Turanganui Catchment
- Uawa Catchment.
• Review the Air Plan.
• Review provisions for managing the environmental effects of stormwater.
IMPROVING THE QUALITY OF OUR BUILT ENVIRONMENT AND PUBLIC SPACESRecent projects completed or nearing completion include:
• Review of design and planning provisions for protecting heritage values at the Cook Landing Site National Historic Reserve.
• Completion of the Rere Reserve Management Plan.
• Completion of Lysnar Reserve Management Plan.
• Preparation of new Township Plans for Manutuke; Matawai/Motu; Rangitukia/Tikitiki; and Te Puia Springs/Waipiro Bay.
• Review of Township Plans for Patutahi; Ruatoria; Te Araroa; Tokomaru Bay; and Tolaga Bay.
• Completion of Crime Prevention through Environmental Design (CPTED) safety assessments relating to the Elgin Revitalisation Project and the Street by Street Project.
• Completion of the Graffi ti Prevention Project.
• Completion of Central Business District Character Analysis.
• Preparation of the Central Business District Lighting Strategy.
Years 1-3• Continue to implement the Urban Development Strategy
including:
- Central Business District Urban Design Guidelines
- Infrastructure standards in the District Plan and review the Engineering Code of Practice
- Design guidance and planning provisions for the Inner Harbour
- CPTED safety assessments for the Street by Street Project.
• Complete an assessment to improve safety and amenity in Puawaitanga Park, Ruatoria.
• Contribute to the review of the Active Recreation Strategy and the Passive Recreation Strategy.
• Prepare a co-management plan with Kopututea Trust for part of the southern Poverty Bay coastline.
• Prepare a management plan for the district’s sports parks.
• Review the Waikanae and Midway Beach Reserve Management Plans.
• Review Te Arai Reserve Management Plan.
• Prepare a Makorori Reserve Management Plan.
• Work with the community to prepare a Township Plan for Hick’s Bay.
Years 4-10• Continue to implement the Urban Development Strategy.
• Continue to develop and review Reserve Management Plans.
105
What are we doing now? What will we do in years 1-10?MONITORING and REPORTING ON ENVIRONMENTAL CHANGERecent projects completed or nearing completion include:
• Development of a framework for monitoring the effi ciency and effectiveness of plans and policies for managing natural and physical resources.
• Monitoring of land use trends for residential, commercial and industrial areas.
Years 1-3• Prepare an Environmental Monitoring Strategy.
• Complete an effi ciency and effectiveness review of the Air Plan (to precede the review of the Plan in years 4-6).
Years 4-10• Complete an effi ciency and effectiveness review of the
District Plan.
• Complete an effectiveness review of the Discharges Plan.
ASSISTING WITH POLICY ON THE PROVISION and FUNDING OF INFRASTRUCTURERecent projects completed or nearing completion include:
• Review of Ten Year Plan growth projections to guide asset managers on future demand and location trends.
• Review of Council’s Development Contributions Policy.
• Review of the Taruheru Block Infrastructure Plan to integrate land use planning with infrastructure provision.
Years 1-10• Review of Ten Year Plan growth model to guide asset
managers on future demand and location trends.
• Review of Council’s Development Contributions Policy.
• Infrastructure Plan (stormwater and excess) for Lloyd George Road.
COLLABORATING WITH TANGATA WHENUA ON RESOURCE MANAGEMENT ISSUESRecent projects completed or nearing completion include:
• Engaging iwi on the Gisborne Fresh Water Advisory Group.
• Supporting Turanga iwi/hapu to prepare rohe reports on tangata whenua freshwater values.
• Organising training for iwi/hapu members from throughout the district on identifying tangata whenua freshwater values.
Years 1-10• Report on implications of Treaty Settlements for planning
under the Resource Management Act 1991.
• Establishing appropriate systems for consultation with iwi/hapu as required under the Resource Management Act and other government policies for resource management.
We will achieve these plans by…• Establishing and maintaining a rolling review of provisions in the Council’s Resource Management Act plans so that plan
maintenance is staggered, effi cient, timely and affordable.
• Ensuring full staffi ng resources are available to enable the achievement of the projects outlined and level of service targets.
• Enhancing staff knowledge and expertise in resource management, to ensure appropriate capacity to perform competently and job satisfaction.
• Establishing good working relationships with key organisations, the private sector and communities to promote and facilitate implementation of sustainable development for Gisborne.
• Ensuring that Resource Management Act plans are in line with Council outcomes through adoption of best practice community engagement methods.
• Monitoring the effi ciency and effectiveness of plans and policies developed to ensure that they address the key environmental issues of the district in a sustainable manner.
• Pursuing research opportunities such as through regional Envirolink grants and contributing to regional / unitary Council research forums to progress local research priorities.
• Improving the processes and resources available to collect and analyse quality comparative data in relation to development trends and State of the Environment trends.
• Providing strategic documents that identify priorities and actions. Monitor the implementation of these actions according to the priorities set in such documents.
• Integrating Council’s strategic planning and operational functions through greater use of project management methodologies and by directly connecting strategic actions to work plans and budgets in the Ten Year Plan.
106
Challenges and opportunitiesThe key challenges and opportunities facing Council in relation to the Environmental Policy activity include:• Our district’s communities have high expectations
around the quality of urban and natural environments. Expectations must be balanced with affordability and the rights of private property owners.
• Over the past three years, Central Government has set much clearer expectations for resource management particularly of the natural environment that Council must now give effect to. This requires resourcing in a climate where resources have been streamlined. The challenge for Environmental Policy is around achieving more with fewer resources.
• Gisborne’s built environment is changing as new areas are developed and existing areas are redeveloped. Different housing styles, e.g. apartments, have emerged and commercial areas are changing. More sophisticated planning tools are needed to manage such change.
• The projected increase in the number of households in the Gisborne City (particularly in western areas) and rural towns creates a challenge for Environmental Policy to ensure that the location and design of development is environmentally sustainable without compromising housing affordability.
• In-house science and research capacity is limited and is outsourced as required, which can add signifi cant costs to policy projects. The activity needs to consider boosting in-house capacity in key resource management areas to ensure maximum effi ciency in delivery of outcomes and services.
• Environmental Policy needs to maintain planning provisions so they are up-to-date and provide certainty on resource management issues. The activity needs to more frequently monitor the effectiveness and effi ciency of existing planning provisions and establish a ‘rolling’ system of reviews that is manageable with current resources.
Signifi cant effectsThere are no signifi cant effects from this activity.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to an Environmentally Sustainable, Healthy and Connected Tairawhiti by preparing statutory plans and policies to protect and enhance the quality of the Gisborne district’s natural and physical environment, now and into the future.
Percentage of high priority planning policy projects completed as outlined in the Activity Management Plan.
New Measure
80% 85%
Percentage of private and Council-initiated plan change processes completed as per requirements under the First Schedule to the Resource Management Act.
New Measure
100% 100%
Number of effi ciency and effectiveness reports completed in accordance with Council’s nominated plan monitoring framework and published.
New Measure
Year 1 : 1
Year 2 : 0
Year 3 : 0
Year 4 : 1
Year 7 : 1
Year 10 : 1
Percentage of residents satisfi ed with Council’s management of the natural and built environment as found in Annual Resident Satisfaction Survey.
New Measure
75% 80%
We contribute to a Vibrant, Safe, Prosperous and Empowered Tairawhiti by developing and facilitating the implementation of non-statutory community, environmental and urban design plans that ensure the needs and aspirations of our communities are recognised.
Percentage of Township Plan reviews completed to ensure currency of implementation plans feeding into Ten Year Plan processes.
New Measure
100%
3 Yearly
100%
3 Yearly
Percentage of plans developed that have specifi c and deliverable action plans.
New Measure
75% 80%
Percentage of stakeholders who are at least satisfi ed with community engagement on plan development as measured through feedback forms.
New Measure
75% 80%
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Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 7 7 7 8 8 8 8 9 9 9
Operating Expenses 976 1,043 1,090 1,123 1,157 1,191 1,226 1,267 1,309 1,355
Net Cost of Service 969 1,036 1,083 1,115 1,149 1,183 1,218 1,258 1,300 1,346
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Capital Projects 0 0 0 0 0 0 0 0 0 0
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Why we do it To sustainably manage the district’s land and water resources and minimise and prevent animal and plant pests (using a range of regulatory and non-regulatory measures) in order to protect and where possible enhance the district’s natural environment.
What we do and whyThe Environmental Services activity disseminates information, regulates, monitors and reports on animal and plant pest management, and sustainable land and water resource management. The activity enables the Council to give effect to statutory responsibilities under the Biosecurity Act 1993, Resource Management Act 1991 and Soil Conservation and Rivers Control Act 1941.
The Environmental Services Group includes the following activities:• Biosecurity• Soil Conservation• Water Conservation• Environmental Data Management.
Specifi c components for each section are as follows:
Environmental Data ManagementThe principal goal is to ensure natural resource management and response decisions are made using sound data. To achieve this we undertake:
• Maintenance of hydrological equipment.
• River discharge measurements relevant to fl ooding.
• Monitoring of climate forecasts and telemetry readings.
• Management of a database of time dependent data.
• Data analysis and report generation.
BiosecurityThe principal goal is to limit the adverse effects of unwanted plants and animals. Effects may be on human health, indigenous fl ora and fauna, our heritage or the economy. To achieve this we undertake:
• Implementation of Regional Pest Management Strategy rules requiring control or eradication of pest populations. This includes compliance monitoring and enforcement.
• Direct control of specifi c low incidence, high threat pests and possums (on account of the district’s Tuberculosis free status).
Environmental Services
• Introduction and spread of biological control agents for pests.
• Surveillance for introduction of new pests.
Soil ConservationThe principal goal is sustainable management of land resources that suffer from biodiversity loss and soil erosion. To achieve this we undertake:
• Promotion of sustainable land management, mitigation and prevention of soil erosion and soil degradation, and maintenance and enhancement of biodiversity.
• Land instability assessment, especially with respect to the Building Act (1991).
• Management of two soil conservation reserves and a poplar and willow nursery providing a base of superior clones for soil conservation plantings.
• Implementation of Part Operative Regional Land and District Plan rules which set permitted activity standards or require resource consents for achieving effective tree cover, land disturbance or vegetation removal. This includes compliance monitoring and enforcement.
• Maintenance and interpretation of Land Use Capability and other specialised resource databases used for monitoring and planning.
Water ConservationThe principal goal is sustainable management of the district’s water resources and environs. This includes surface ground and coastal waters, riverbeds and the seabed. To acheive this we undertake:
• Surface water and groundwater quality and quantity monitoring.
• Coastal water quality monitoring.
• Beach and river sand and gravel monitoring.
• Analysis of data.
• Implementation of statutory plan rules for water management which set permitted activity standards or require resource consents such as water discharge consents, water takes, coastal permits, bore permits, shingle/sand extraction permits and waterway permits. This includes compliance monitoring and enforcement.
Monitoring and ReportingEnvironmental monitoring and annual progress towards desired environment outcomes are reported in the district’s State of the Environment report.
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This activity contributes to the following Council outcomes
Healthy Prosperous Tairāwhiti Tairāwhiti
Safe Environmentally Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Community Engagement • Major Projects• Natural Resource Use • Community Viability and Functioning• Risk Management
What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?
ENVIRONMENTAL DATA MANAGEMENTAdvances in technology are important and this will continue. Telemetry enables instant gathering of data and computer systems enable very effi cient storage of data, analysis and modelling.
Continue provision of timely, sound data.
Enhance reliability.
We will achieve these plans by…• Aligning the replacement programme for fi eld assets with expected lives through enhanced expenditure in years 1 – 7,
dropping back for years 8 – 10. This will occur on a risk management basis to improve reliability.
BIOSECURITY
Pest management tools are continuing to be developed and extended. Council is party to a biological research consortium of regional councils that enables local releases of biological control agents. Monitoring techniques have greatly improved. New poisons and poison delivery mechanisms are becoming available on a regular basis. Public awareness of pests has increased and there is more demand for intervention.
The Regional Pest Management Strategy (RPMS), the guiding document and statutory basis for plant and animal pest management, was reviewed in 2009.
Sustain pest management activities, including surveillance and response, in accordance with community expectations.
We will achieve these plans by…• Implementing annual operational plans under the present RPMS and revised RPMS from 2016.
SOIL CONSERVATION
The principal Soil Conservation activity goal is sustainable management of land resources. The Gisborne district is renowned for soil erosion; the product of a young, soft and complex geology, and also for biodiversity loss through historical land clearance.
Intensive cropping on the Poverty Bay fl ats over the last fi fteen years has necessitated an extension of advocacy and education into soil compaction issues.
New subdivisions and housing developments onto potentially unstable sites mainly about Gisborne City have necessitated urban land use capability mapping and detailed commentary and geotechnical reporting.
The Sustainable Hill Country Project resulted in a tree establishment and maintenance rule being added to the Combined Regional and District Plan (CRLDP). Soil Conservation staff are assisting affected landowners with development of Works Plans as a key focus of advocacy efforts.
Landowners are encouraged to access funding streams available to protect natural heritage values.
Complete work plan requirements under the Sustainable Hill Country Project.
Maintain effective tree cover requirements and implement work plans.
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What are we doing now? What will we do in years 1-10?
We will achieve these plans by… • Continuing advocacy work with hill country landholders.
WATER CONSERVATION
Implementation of statutory plan rules for water management which set permitted activity standards or require resource consents such as water discharge consents, water takes, coastal permits, bore permits, shingle/sand extraction permits and waterway permits. This includes compliance monitoring and enforcement.
The Council undertakes surface water and groundwater quality and quantity monitoring, coastal water quality monitoring, and beach and rivers sand and gravel monitoring.
National directives in the form of National Environmental Standards and a National Policy Statement have recently imposed additional obligations. Progress is being made in identifying options in developing a Water Plan. Section priorities will refl ect these changes and result in focusing resources to these projects.
Develop a proposed Water Plan in keeping with community requirements, government direction and legislative requirements.
We will achieve these plans by…• Proactive consultation and use of monitoring data.
Challenges and OpportunitiesGovernment has recently released a discussion document that seeks to align environmental monitoring and reporting standards across regions. This is likely to require some alteration to Council’s present monitoring programmes.
Technological advances in collecting and transmitting time dependent data (such as river levels) offer improvements in effi ciency but require more capital expenditure.
Climate change is likely to affect water yield from rivers and groundwater and make tree establishment more complex. More intensive storm events are likely to increase the rate of soil erosion.
National directives relating to freshwater management and forestry activities may work against effi cient regional solutions.
Signifi cant effects There are no signifi cant effects from this activity.
Risk MitigationThere are risks with environmental data collection hardware failure that are mitigated through maintenance and capital replacement programmes. New plant or animal pests may arrive and require management; a risk that simply has to be accepted.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3
Years 4-10
ENVIRONMENTAL DATA MANAGEMENT
We contribute to an Environmentally Sustainable Tairāwhiti by ensuring resource management decisions are made using sound data.
Number of valid physical environmental data measure points.
98% 85% 85%
Hits received on environmental data pages (river levels, rainfall etc) on Council website.
New Measure 7500 7500
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Level of Service Performance Measures Current Performance
Targets
Years 1-3
Years 4-10
SOIL CONSERVATION
We contribute to a Safe and Environmentally Sustainable Tairawhiti by managing land resources to conserve natural values, prevent or mitigate adverse effects and sustain productive capability.
Percentage of Requests for Service resolved within target timeframes ranging from 5 days for urgent matters and within 60 days for ongoing matters.
85% 80% 80%
Percentage of customers who rate Requests for Service responses as excellent/good.
100% 93% 93%
Number of issues of Conservation Quorum published per annum.
4 4 4
Number of farm properties visited per annum for environmental advocacy purposes.
203 150 150
WATER CONSERVATION
We contribute to a Safe, Prosperous and Environmentally Sustainable Tairāwhiti by managing natural water resources, river and lake beds and coastal areas to conserve natural values and sustain consumptive usage.
Percentage of Requests for Service resolved within target timeframes ranging from 5 days for urgent matters and within 60 days for ongoing matters.
85% 80% 80%
Percentage of customers who rate Requests for Service responses as excellent/good.
96% 90% 90%
Makauri aquifer static water levels are maintained with respect to three year rolling average.
100% 100% 100%
Percentage of non-compliance with consent conditions under recorded rectifi cation or enforcement within 20 working days.
100% 100% 100%
BIOSECURITY
We contribute to a Healthy and Environmentally Sustainable Tairāwhiti by managing animal and plant pests for human health and to reduce impacts on indigenous fauna and fl ora and primary production.
Percentage of Requests for Service resolved within target timeframes ranging from 5 days for urgent matters and within 60 days for ongoing matters.
95% 97% 97%
Percentage of customers who rate Requests for Service responses as excellent/good.
99% 98% 98%
All 5 random sample lines assessed post possum poisoning, trapping or night shooting achieves 5% residual trap, catch or less.
New Measure 100% 100%
Percentage of known signifi cant noxious plants sites visited and all plants controlled.
New Measure 100% 100%
Percentage of known active rookeries controlled.
New Measure 100% 100%
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Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)BudgetBudget
20132013
BudgetBudget
20142014
BudgetBudget
20152015
BudgetBudget
20162016
BudgetBudget
20172017
BudgetBudget
20182018
BudgetBudget
20192019
BudgetBudget
20202020
BudgetBudget
20212021
BudgetBudget
20222022
Operating Revenue 532 471 497 481 497 514 531 486 503 521
Operating Expenses 3,162 3,180 3,262 3,320 3,428 3,546 3,657 3,727 3,853 3,995
Net Cost of Service 2,630 2,709 2,765 2,839 2,931 3,032 3,126 3,241 3,350 3,474
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Maintain level of service
72 74 77 79 82 85 88 67 69 72
Capital Projects 72 74 77 79 82 85 88 67 69 72
Total capital projects
Depreciation v renewal capital projects
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Environmental Services
Telemetry Equipment Maintain 764,000 72,000 74,000 77,000 79,000 82,000 85,000 88,000 67,000 69,000 72,000
Totals: 764,000 72,000 74,000 77,000 79,000 82,000 85,000 88,000 67,000 69,000 72,000
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Resource ConsentsWhy we do itTo protect and enhance the quality of the district’s natural and physical environment now and into the future.
What we do and whyThe Resource Consent section undertakes the following activities in accordance with the District Plan and Resource Management Act 1991:• Processing resource consents:
- Decide on whether to process resource consent applications on a notifi ed or non-notifi ed basis.
- Assessing the potential effects on the environment of resource consent applications.
- Impose conditions on resource consents to mitigate any adverse effects on the environment.
- Prepare resource consent reports determined under delegation and reports for the Hearings Committee or Independent Commissioners.
- Provide information and advice to applicants, developers and other interested members of the community on the Resource Management Act 1991, the resource consent process and the District Plan rules.
- Manage the appeal and mediation process on matters before the Environment Court.
This activity ensures that subdivision and land uses are developed in an environmentally sensitive way to ensure that adverse effects are avoided, remedied or mitigated.• Monitor resource consent conditions. This requires
coordinating technical staff and scheduling site visits to check that activities are undertaken in accordance with consent conditions.
Compliance with conditions should achieve anticipated environmental results. Equally Plan rules are enforced to prevent inappropriate development that may adversely affect the environment.
• Provide administrative support for resource consent processing. This includes a team of three administrative staff who undertake all administrative tasks for all district and regional resource consents. This provides for a more effi cient process and better data integrity.
This activity contributes to the following Council outcomes
Vibrant Empowered Tairāwhiti Tairawhiti
Safe Environmentally Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Governance Effectiveness • Community Engagement • Natural Resource Use • Financial Sustainability • Community Viability and Functioning• Risk Management • Business Effi ciency • Customer Needs.
What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?
Over the last twelve months the percentage of the resource consents processed within the statutory timeframes set in the Resource Management Act 1991 has markedly improved, with 95% of resource consents processed within time. The signifi cant improvement can be attributed mostly to two factors. This includes less resource consent applications being lodged but equally so, effi ciency improvements to the resource consent process which has been under review.
Years 1-3Continue the improvement in resource consent processing timeframes and consistently meet or better statutory timeframes.
Establish Resource Consents Manager role for the overall responsibility across all sections for consent processing performance and ensuring that all teams are equally aware of legislative requirements.
Establish a Monitoring and Compliance team and ensure resources and systems are in place to effectively monitor compliance with resource consent conditions and respond to breaches of Plan rules. Years 4-10Maintain improvements in resource consent processing timeframes and consistently meet or better statutory timeframes.
Maintain resources and systems to effectively monitor compliance with resource consent and respond to breaches of Plan rules.
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What are we doing now? What will we do in years 1-10?
We will achieve these plans by…• Establishing a Resource Consent section that will incorporate the District Consent Processing team (formerly known
as Development Control), a new Monitoring and Compliance team and an Administrative Support team. Levels of service agreements will be established with Environmental Services and Regulatory Services sections to process regional consents. The proposed restructure will provide the opportunity to improve the performance and provide a more integrated service in respect of resource consent processing, monitoring of resource consent conditions and responding to Plan rule breaches.
Challenges and opportunitiesWith signifi cant improvements in processing times the challenge will be to sustain levels of performance at times when there is an increase in resource consent application numbers. Equally, it is important to retain experienced staff to manage the more complex applications.
The establishment of a Monitoring and Compliance team provides the opportunity to signifi cantly improve performance in terms of consent monitoring and responding to breaches of Plan rules.
A lack of resources has at times prevented concerted efforts in respect of resolving non-compliance with consent conditions and complaints about breaches of Plan rules.
Signifi cant effects There are no signifi cant negative effects from this activity.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Safe, Vibrant, Empowered and Environmentally Sustainable Tairawhiti by promoting the sustainable management of natural and physical resources through processing and monitoring resource consent applications.
Percentage of Requests for Service (RFS) resolved within target timeframes.
86% 98% 98%
Percentage of customers who rate RFS responses as excellent/good.
97% 91% 91%
Availability of the duty planner for public enquiries.
9.00am-5.00pm
9.00am - 5.00pm
9.00am-5.00pm
Resource Consents are processed within statutory timeframes.
92% 100% 100%
Percentage of resource consents monitored within one month of monitoring date.
Not measured
Year 1: 80%
Year 2 : 100%
Year 3 : 100%
100%
Percentage of reported non-compliance with Plan rules rectifi ed or subject to enforcement action within three months.
69% 100% 100%
115
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 266 274 283 293 303 313 323 334 346 358
Operating Expenses 874 895 918 943 970 996 1,022 1,053 1,087 1,122
Net Cost of Service 608 621 635 650 667 683 699 719 741 764
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Capital Projects 0 0 0 0 0 0 0 0 0 0
116
GovernanceWhy we do itTo provide for the representation of the community in an open, democratically accountable manner, to enable decision making and action and to promote its wellbeing.
To provide for the stewardship of the assets of the corporation and to implement the laws that enable physical and natural resources to be allocated.
What we do and whyThe Governance activity exists to provide for:Representation and Democracy • Meet the obligations of the Mayor and Councillors
under the Local Government Act.• Provide a fair and active triennial election process
which is compliant with the Local Electoral Act.• Manage elected members' remuneration,
allowances and expenditure processes in line with Remuneration Authority determinations.
• Comply with the Local Electoral Act which also controls Representation Reviews.
• Comply with the Local Government Offi cial Information and Meetings Act requirements and processes to service Council and its committees.
• Respond to Offi cial Information requests within legislative timeframes.
• Support Membership of Local Government NZ and participation in its sector groups.
• Advocate at a national level on policy, wider participation and representation.
Civic Duties• Resource the Offi ce of the Mayor including the
delivery of civic functions/events such as;- Naval visits, Anzac Day, Citizenship ceremonies,
Sister Cities events, scholarships, awards, grants and VIP presentations.
Stewardship • Protect Council assets including those invested in
Council Controlled Organisations.• Support the relationship with Eastland Community
Trust and meet Councils’ obligations under the Trust Deed.
• Meet Council's obligations to be a good employer.
The Governance activity supports the elected members in these roles and ensures that the purposes of the Local Government Act 2002 are met and the principles in that Act are applied. Councils are required to ensure that:
• The role of democratic governance and expected conduct of elected members is clear and understood.
• Governance arrangements are effective, open and transparent.
• Responsibility for decision-making for regulatory and non-regulatory matters is kept separate.
• They are good employers.• The relationship between elected members and
management is effective.
How this occurs is set out in Council’s Local Governance Statement and Code of Conduct for Effective Governance as well as in the Chief Executive’s performance agreement.
This activity contributes to the following Council outcomes
Healthy Prosperous Vibrant Tairāwhiti Tairāwhiti Tairāwhiti
Connected Empowered Safe Tairāwhiti Tairāwhiti Tairāwhiti
Skilled and Environmentally Educated Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Governance Effectiveness • Community Engagement • Major Projects • Natural Resource Use • Financial Sustainability • Community Viability • Risk Management • Business Effi ciency • Customer Needs.
117
Governance and Support Services
What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?
REPRESENTATION and DEMOCRACY
Drafting the initial proposal for the Representation Review.
Compare election costs in-house to external contract.
Years 1-3
Consultation and adoption of Council’s proposals for Representation.
Complete a fair and active election process by 2013.
Establish the Local Leadership Body.
2012-2018 prepare and consult on Council’s proposals for representation.
Years 4-10
Complete a fair and active election process by 2016.
We will achieve these plans by…
• Adequately resourcing the Governance activity to ensure processes and the production and dissemination of our meeting agendas and meeting notifi cations meet our obligations under the Local Government Offi cial Information and Meetings Act.
• Determine the level of support for the Local Leadership Body and resource appropriately.
• Determine if the election process will be handled in-house or by an external contractor.
CIVIC DUTIES
Business as usual. Review processes and/or delivery to ensure events are dignifi ed and run smoothly.
We will achieve these plans by…
• Resourcing the Offi ce of the Mayor at appropriate levels.
STEWARDSHIP
Approving the Statement of Intent annually.
Appointment of Directors and Trustees.
Started Chief Executive Contract processes.
Approving the Statement of Intent annually.
Appointment of Directors and Trustees.
Complete Chief Executive contract process.
We will achieve these plans by…
• The Chief Executive and Group Manager Corporate Services supporting the Board in drafting the Statement of Intent.
• Implementing Council’s policy on director appointments.
• Providing copies of any Council and Committee reports that are relevant.
Challenges and opportunitiesThe Representation Review is subject to a Local Government Commission hearing process if an objection to the fi nal proposal for representation is lodged. If this occurs the hearing process may result in changes as Council’s current representation arrangements do not comply with the fair representation test in the Local Electoral Act.
The public has an option to demand a poll on the electoral system (STV or FPP) and Māori representation if a valid poll is received before 28 February 2012. The estimated cost of a demand poll ($60k) is unbudgeted.
Given that the Council’s processes are subject to polls and review by the Local Government Commission changes are possible that may materially affect the level of community representation and budgets.
The risk will be managed by following a thorough process and assessing the options so that possible outcomes are known.
The nature and function of the Local Leadership Body is yet to be defi ned. Any resourcing required to support this activity will be unbudgeted.
Signifi cant effectsThere are no signifi cant negative effects from this activity.
118
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to all Council outcomes by providing for the representation of the community in open, democratically accountable decision making.
Percentage of residents satisfi ed with the way Council involves the public in the decisions it makes as found in the Annual Resident Satisfaction Survey.
54% 60% 60%
Percentage of residents who rate the performance of the Mayor and Councillors as good as found in the Annual Resident Satisfaction Survey.
58% 60% 60%
Percentage of residents satisfi ed with how rates are spent on services and facilities provided by the Council as found in the Annual Resident Satisfaction Survey.
62% 65% 65%
The requirements of the Local Government Act 2002, Local Government Offi cial Information and Meetings Act 1987, Standing Orders and other appropriate legislation are met, as measured by complaints upheld by the Ombudsman.
New Measure
No complaints upheld by the Ombudsman
No complaints upheld by the Ombudsmen
Agendas for meetings (other than extraordinary meetings) of council and its committees are publicly available (either via the internet or in Council service centres or at Council libraries), as measured by Committee Secretary’s checklist.
New Measure
All agendas are publicly
available two clear working days before
each meeting
All agendas are publicly
available two clear working days before
each meeting
We contribute to a Connected, Prosperous and Environmentally Sustainable Tairawhiti by providing for the stewardship of corporation assets and by implementing laws that deal with the district’s physical and natural resources and the issues that arise in communities.
Approve the Statements of Intent for Council Controlled Organisation’s (CCO’s) in agreed time frames.
New Measure
60 days from receipt
(1 March)
60 days from receipt
(1 March)
Appoint directors of CCO’s according to the respective constitution or Trust Deed.
New Measure
In line with constitutional
and Trust Deed requirements
In line with constitutional
and Trust Deed requirements
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 12 50 13 13 56 14 14 61 15 16
Operating Expenses 1,103 1,200 1,125 1,151 1,328 1,280 1,278 1,489 1,369 1,428
Net Cost of Service 1,091 1,150 1,112 1,138 1,272 1,266 1,264 1,428 1,354 1,412
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Capital Projects 0 0 0 0 0 0 0 0 0 0
119
Support ServicesWhy we do itThese services are provided to support the Council in the effective and effi cient running of the organisation.
What we do and whyCouncil’s internal support activities assist in the effective and effi cient delivery of all Council services. These services comprise:• Finance & Treasury Operations• Secretarial Services• Information Services• Communications • Plant and Vehicles• Legal Services• Human Resources• Customer Services• Managerial Services.
Finance and Treasury Operations These services are provided as all large organisations require a framework by which they can set their plans and budgets for future years. Well performing organisations routinely track and improve their organisational performance, as well as having fi nancial, internal control, risk management and governance processes in place.
Many of these services are mandated by the Local Government Act 2002 or the Local Government (Rating) Act 2002.
Democracy and Support Services These provide secretarial support services to Council, Council Committees, Council teams and managers including managing building facilities, meeting rooms and Council chambers.
Information Services Information Technology, Information Management and related services provide computer systems and records technology to support the Council and Council business units in the effective and effi cient running of the organisation.
CommunicationsThese internal and external services are provided as a ‘shared service’ to the organisation to support the marketing and communications requirements of all sections and activities delivered to our customers including planned programmes, projects and strategies.
Plant and Vehicles This section provides fl eet management (maintenance, sustainability and replacement of the car pool, specialist vehicles and other plant). The services are centralised for effi ciency.
Legal Services Provide legal advice to elected members and management and help manage the engagement of external legal advice.
Human Resources These services are provided to assist Managers and ensure that the organisation meets its obligations. These include complying with legal and “good employer” obligations, leading and coordinating collective employee relations and ensuring a safe and healthy workforce environment.
Customer Services Provide walk-in based customer services at Council’s main offi ce and Te Puia Service Centre. Along with Call Centre services managing all “fi rst point” contact through core contact channels (phone, e-mail, facsimile and letter), this group drives improvements to customer-facing processes with a focus on improving business effi ciency.
Managerial Services This comprises of the senior management of Corporate Services, Engineering & Works and Regulatory Services. These positions provide support leadership and guidance for their related Council departments.
This activity contributes to the following Council Outcomes
Healthy Prosperous Vibrant Tairāwhiti Tairāwhiti Tairāwhiti
Connected Empowered Safe Tairāwhiti Tairāwhiti Tairāwhiti
Skilled and Environmentally Tairāwhiti Sustainable Tairāwhiti
120
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Governance Effectiveness • Community Engagement • Major Projects
• Natural Resource Use • Financial Sustainability • Community Viability and Functioning • Risk Management • Business Effi ciency • Customer Needs.
What are our plans for the next ten years?What are we doing now? What will we do in years 1-10?
We currently deliver Support Services from a range of departments. Most aspects of Support Services are internally focused however the Customer Services and Communications sections have a high external visibility and focus.
What we are doing is unlikely to change over the next ten years. What will change is how we deliver services to the internal and external customers. There will be an increasing emphasis on services delivered through the web and social media sites.
We will achieve these plans by…
• The changes in technology and increasing demand for services will place signifi cant fi nancial and expectation pressures on these service areas. We will need to work within a restrictive cost envelope to deliver improved services. The focus will be on delivering improved services within budget constraints through effi ciency gains and re-focusing of resources on service delivery in those areas where an expectation gap exists.
• Internal demand for services is likely to exceed our current capability. This means that an effi cient means of managing demand will be required. This will include sending the right cost signals and more formal prioritisation of operational and capital projects.
• Changes in legislation do impact service areas. For example recent changes in the Local Government Act Transparency Accountability and Financial Management have increased the pressure on the Finance and Treasury Operations unit. In this, a combination of a modest increase in resourcing and software changes will be required to meet government requirements.
Challenges and opportunitiesThe main challenge within Support Services is cost containment in an environment of increasing demands and high technology costs. Support Services will pay a key role in assisting other Council areas to meet their strategic challenges. In some cases this will require an increase in the level of service provided. Any additional costs as a result will fl ow through internal charges to the related activity.
There will be opportunities to improve effectiveness and effi ciency. This will assist in cost containment. It is not anticipated that support costs will reduce during the review period.
Signifi cant effects There are no signifi cant negative effects from this activity.
121
How will we know if we are on track?
Level of Service Performance Measures Current Performance
TargetsYears 1-3 Years 4-10
We contribute to all Council Outcomes by supporting the organisation to deliver Council services and to provide good quality information to the public.
Compliance with statutory requirements for the Annual Plan and Annual Report and Ten Year Plan processes, including audit requirements and specifi ed timeframes.
Achieved Achieved Achieved
Percentage of residents who rate the ease of getting hold of a staff member who could assist them with their inquiry as excellent/good as found in the Annual Resident Satisfaction Survey.
83% 85% 88%
Percentage of residents who are satisfi ed with Council customer service at fi rst point of contact:In person
Email/Website
Phone
New Measure
New Measure
New Measure
95%
85%
90%
95%
85%
90%Percentage of residents who rate helpfulness of staff as excellent/good as found in the Annual Resident Satisfaction Survey.
89% 90% 90%
Percentage of residents (as found in the Annual Resident Satisfaction Survey) who in the last twelve months have seen or read:
New Measure Establish baseline
To be determined after baseline set
- Town and Country Matters
- Information with their rates invoice
- A Council brochurePercentage of residents who rate the content in Council publications as informative as found in the Annual Resident Satisfaction Survey:
New Measure Establish baseline
To be determined after baseline set
- Town and Country Matters
- Information with their rates invoice
- A Council brochureNumber of page views on website. 713,127 Increasing IncreasingPercentage of residents who rate the content on the Council website as excellent/good.
New Measure Increasing from Year 1 baseline
Increasing
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 2,092 2,230 2,081 2,125 2,172 2,220 2,267 2,317 2,372 2,428
Operating Expenses 8,425 8,908 9,610 9,828 10,313 11,457 11,650 12,116 13,082 13,533
Net Cost of Service 6,333 6,678 7,529 7,703 8,141 9,237 9,383 9,799 10,710 11,105
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Increase level of service
50 52 32 33 34 35 37 38 39 40
Asset purchases - Maintain level of service
491 1,150 931 608 1,070 470 934 863 1,002 529
Capital Projects 541 1,202 963 641 1,104 505 971 901 1,041 570
122
Total capital projects
Depreciation v renewal capital projects
Capital expenditure 2012-2022Description LOS
Total Cost
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Support Services
Ozone Enhancements - information Management Systems
Increase 390,000 50,000 52,000 32,000 33,000 34,000 35,000 37,000 38,000 39,000 40,000
Information Services Contestable Fund
Maintain 1,456,000 125,000 129,000 133,000 138,000 143,000 147,000 152,000 157,000 163,000 169,000
EDRMS Replacement Maintain 841,000 464,000 266,000 110,000
Existing core hardware and software renewals
Maintain 1,416,000 50,000 310,000 277,000 99,000 46,000 47,000 416,000 117,000 54,000
Desktop Virtualisation Server Maintain 25,000 25,000
Public Art Maintain 320,000 50,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Turanganui Art Work (consequence of Heinz Wattie)
Maintain 30,000 30,000
Radio Upgrades Maintain 134,000 11,000 11,000 13,000 13,000 13,000 14,000 14,000 14,000 15,000 15,000
Orthophoto Regeneration-Aerial Photography
Maintain 537,000 114,000 423,000
Vehicle Upgrade Replacements
Maintain 2,289,000 200,000 206,000 212,000 218,000 225,000 231,000 238,000 245,000 253,000 261,000
Information Technology Renewals Programme (Finance)
Maintain 500,000 500,000
Totals: 8,439,000 541,000 1,202,000 963,000 641,000 1,104,000 505,000 971,000 901,000 1,041,000 570,000
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Flood ProtectionWhy we do itTo provide and manage the protection of people and their properties including land from fl ooding, river erosion, and coastal erosion in identifi ed areas.
To maintain the Land Drainage, Rivers and Streams, and Coastal Protection assets to their design standard utilising the most cost effective, long-term asset management options.
To monitor rivers, streams and the coast within the Gisborne district, and provide advisory and investigatory service to mitigate fl ood risk and coastal erosion.
What we do and whyThe Flood Control Group includes the following activities:• Rivers Asset Management• Flood Control Schemes• Land Drainage Schemes• Wainui Beach Foredune Protection• River Channel Maintenance
Rivers Asset ManagementCouncil has, pursuant to section 35 of the Resource Management Act 1991, a duty to gather information, monitor, and keep records. Also pursuant to section 126(a) of the Soil Conservation and Rivers Control Act 1941 Council shall minimise and prevent damage within its district by fl oods and erosion.
These are achieved by monitoring changes to river/stream channels or the coast which could affect the community and by providing advice on preventative maintenance for river/stream channel integrity. The activity also includes advocating on behalf of fl ood control, coastal and land erosion protection, land drainage and foredune protection to stakeholders. River monitoring also provides fl ood warnings to the community for specifi ed rivers in a timely and effective manner.
Flood Control SchemesTo protect land, buildings, and infrastructure from fl ooding, Council administers and maintains two fl ood control schemes, one river improvement scheme, and one river erosion protection scheme within its district:• Waipaoa River Flood Control Scheme (WRFCS).• Te Karaka Flood Control Scheme (TKFCS).• Turanganui-Taruheru Rivers Scheme (TTRS).• The Protection of Ruatōria scheme.
Together these three river schemes include 47 km of river channel, 67.3 km of stop banks, 649.3 hectares of fl oodway land plus associated bank protection works and drainage culverts. The scheme assets are maintained to their design standards using the most cost-effective, long-term asset management options. Land Drainage SchemesCouncil constructs, administers and maintains a network of open drains across private farmland. To provide land drainage that allows the effective subsurface drainage of the Poverty Bay fl ats within specifi c areas (generally land drainage schemes). A total network of 330km of drains are maintained spanning 14 drainage districts. Council undertakes this work due to landowner requests via legislation.
Currently the serviced areas are: • Ormond/Mahunga • Waikanae/Mākaraka• Ngātapa • Wharekākā• Eastern Taruheru • City/Wainui• Manutuke • Taruheru River• Western Taruheru • Waipaoa• Muriwai • Waiapu General• Willows • Patutahi
Wainui Beach Foredune Protection To maintain the existing foredune protection infrastructure in the defi ned area along Wainui beach. To provide new foredune protection infrastructure in alignment with the Wainui Beach Management Strategy (WBMS).
This Wainui Beach Management Strategy is the result of a Gisborne District Council initiative to facilitate the development of a management strategy, through partnership with the community. Council identifi ed the need for this facilitation/partnership approach in July 2000 as there are a number of unresolved issues at Wainui Beach that need addressing.
Issues of beach foredune erosion and property protection, Environment Court appeals, increased beach and dune/reserve usage and the growing community at Wainui, are all part of the need for an integrated management strategy.
River Channel MaintenanceTo provide essential river channel maintenance and infrastructure works for identifi ed rivers to protect land, properties and roads from erosion. A total of 206km of rivers and streams are maintained within the district. Council undertakes this work due to landowner requests via legislation.
Infrastructure Services
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This activity contributes to the following Council outcomes
Healthy Prosperous Connected Tairāwhiti Tairāwhiti Tairāwhiti
Safe Environmentally Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Natural Resource Use • Financial Sustainability• Business Effi ciency • Customer Needs
What are our plans for the next ten years?What are we doing now? What will we do in years 1-10?Writing our Activity Management Plan.
Undertaking Limited Condition Assessments and Catchment Studies.
Years 1-3 onlyWaipaoa River Flood Control Scheme Major Structures Assessments.
City Revetments Assessment.
Pump Station Assessments.
Te Karaka Flood Control Scheme Condition Assessments.
Waipaoa River Flood Control Scheme Condition Assessments.
Rivers and Land Drainage Condition Assessments.
Activity Management Plan planning.
Waikanae Creek channel capacity investigation.
Taruheru Channel feasibility study to investigate river widening.
Tansley Road design investigation.
Climate change impacts investigation.Years 4 - 10Waipaoa River Flood Control Scheme Major Structures Assessments.
City Revetments Assessment.
Pump Station Assessments.
Te Karaka Flood Control Scheme Condition Assessments.
Waipaoa River Flood Control Scheme Condition Assessments.
Rivers and Land Drainage Condition Assessments.
Activity Management Plan planning.We will achieve these plans by…• Collecting and maintaining information to support the asset replacement programme and risk management in a robust,
consistent manner using well-defi ned processes and standards.
• Given that the future situation of the rivers and land drainage assets is foreseen to be substantially the same as it is today; the changes in the future impact of the activity on the community is not expected to be signifi cant.
• No departure from current practices is anticipated. Most new capital works will be funded with targeted rates or charges on the direct benefi ciaries. The general rating burden on the community will not vary signifi cantly from that currently supported.
• Continue to undertake programmed capital works including river control work for the Waiapu River at Ruatōria and the Waipaoa Flood Protection Scheme.
• Wherever practical, adopting low impact urban design principles (LIUD) to reduce stormwater runoff volumes and peak fl ow rates to improve the quality of stormwater runoff entering the receiving environment.
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Challenges and opportunitiesThe below challenges and opportunities apply not only to the fl ood protection activity but to all water utilities activities i.e. urban stormwater, wastewater and water supply.
Financial: - Affordability for district - Council priorities - Public priorities - Isolated district.
Staffi ng: - Limited number of staff - Different priorities.
Legislative: - Resource Management Act process - District & Regional Plan process - Compliance timeframes.
Outside Resources: - Ability to engage/contract consultants/contractors.
Technical: - Limited in-house expertise - Code of Practice needs to be
urgently updated.
It is envisaged that many of these challenges have the potential to become opportunities. Water Utilities will endeavour to do this by:• Effi ciency improvements • Innovation• Better communication • Up-skilling staff• Updating the E&W Code of Practice• Public education.
Signifi cant effects • Natural habitats and ecosystems could be
affected by contaminants discharged from drains into rivers and eventually the sea reducing water quality and causing erosion from increased velocities.
• Blockages during rain events and particularly closure of fl oodgates can cause ponding and fl ooding issues of resident's properties as well as increase the risk of wastewater issues.
• Blockages during rain events and closure of fl oodgates can also negatively affect economic development in commercial, industrial and residential areas by reducing the suitability of land for development or by deterring developers due to additional costs to upgrade the land.
• Aesthetic value or intrinsic appeal and cultural signifi cance of water affected by lowered water quality from land drainage, stormwater and fl oodwater discharges into the environment.
Risk mitigationEach of the water utilities activities (Flood Protection, Urban Stormwater, Wastewater and Water Supply) have created risk registers by compiling a record of all identifi ed risks in risk reports since the early nineties. The identifi ed risks were assessed to see if they were still relevant as some were redundant or superseded.
The risk registers are now living documents where the risks are continually being updated and assessed.
It is recognised that these risk registers were based on historic reports and high consequence and high probability assessments were completed to ensure that these were the most up to date. This means we had a top down and bottom up approach created by current staff and a detailed risk register from historic reports.
There is an approved Gisborne Civil Defence Group Emergency Management Plan. Specifi c Emergency Management Plans will also be created this year for a major fl ood, tsunami, earthquake and a volcanic eruption. These plans outline how water utilities activities will mitigate the effects of natural disasters.
The water utilities activities mitigate other potential risks by a mix of asset management planning activities including:• Asset development work programs, such as: drain cleaning, capacity identifi cation through
catchment studies and capital works to address any capacity or performance related problems.
• Monitoring.• Public education.• Imposed Resource Consent conditions.• Sound project management practices.• Long term fi nancial plans and strategies.
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How will we know if we are on track?
Level of Service Performance Measure Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Healthy, Prosperous, Connected, Safe and Environmentally Sustainable Tairāwhiti by monitoring drainage of rivers and streams to minimise fl ood risk and coastal erosion to ensure communities are safe and prepared.
Percentage of Requests for Service resolved within target timeframes.
77%
Not Achieved
Year 1: 80%
Year 2: 80%
Year 3: 81%
81-84%
Percentage of customers who rate Requests for Service responses as excellent/good.
97%
Achieved
Year 1: 92%
Year 2: 92%
Year 3: 93%
93 - 95%
Land drains contain a 1 in 5 year fl ood whereby at least 90% of all drains within the network will, at any given time without overtopping, contain a fl ood discharge up to a fi ve year return period fl ood event for each particular drain.
100% 100% 100%
25% of fl ood control stopbank length is inspected annually and maintained to 70-year protection standard.
Achieved Achieved Achieved
Percentage of identifi ed river fl ow impediments corrected, or remedial works included in approved annual budgets for following year.
80% Increasing 1% annually
84-90%
Resource and Building Consents including Coastal, Land Use & Discharge are processed within the agreed timeframes.
75% Increasing 1% annually
78-84%
Key assumptions and uncertaintiesThe below key asumptions and uncertainties apply not only to the Flood Protection activity but to all water utilities activities i.e. urban stormwater, wastewater and water supply.• The information provided has been developed from
a sound base, the asset register being of average quality and renewal projections based primarily on age, rather than condition or performance.
• The fi nancial information presented in this Activity Management Plan would also be affected by tendering of capital work.
• 40 Year Design Life Summary - Water Utilities have discussed and decided that for demand projections and in general for most design purposes we will use 40 years across all the Water Utilities activities. There are some exceptions which are detailed in the Flood Protection Activity Management Plan.
• In preparing the Activity Management Plan, it is assumed that the combined Regional Land & District Plan (which is currently partly operative) will become operative without substantial modifi cation to matters that would affect the activity.
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000's)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 167 172 178 184 190 196 203 210 217 225
Operating Expenses 1,868 1,965 1,851 1,910 1,962 1,974 2,043 2,111 2,139 2,229
Net Cost of Service 1,701 1,793 1,673 1,726 1,772 1,778 1,840 1,901 1,922 2,004
CAPITAL EXPENDITURE ($000's) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Increase level of service
200 416 0 0 0 0 0 0 0 0
Asset purchases - Maintain level of service
23 569 325 870 480 375 0 0 501 0
Capital Projects 223 985 325 870 480 375 0 0 501 0
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Total capital projects
Depreciation v renewal capital projects
Capital expenditure 2012-2022Description
LOSTotal Cost
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Flood Protection
Flood Control - Ruatoria Flood Protection, Provide a means of halting/slowing down erosion
Increase 616,000 200,000 416,000
Pump Station Renewals Maintain 260,000 71,000 110,000 62,000 17,000
Tansley Road Drain Maintain 304,000 138,000 166,000
Waipaoa River Flood Control Scheme Bend Protection
Maintain 909,000 446,000 463,000
Taruheru/Turanganui Revetment Phase 2
Maintain 1,133,000 499,000 299,000 335,000
Taruheru Channel Improvements
Maintain 438,000 215,000 223,000
Patutahi Loop Drain Maintain 23,000 23,000
Onepoto Drains Hicks Bay Maintain 75,000 75,000
Totals: 3,758,000 223,000 985,000 325,000 870,000 480,000 375,000 501,000
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Land Transport and ParkingWhy we do itThe provision of an integrated, safe, responsive and sustainable land transport system is a fundamental requirement for every district or city within New Zealand. Pursuant to the provisions of Part 20 of the Local Government Act 1974 all local roads within the district are under the control of Gisborne District Council.
The activity contributes to the attainment of the following fundamental core benefi ts under the Land Transport Management Act 2003.• Economic Development• Safety and Personal Security• Access and Mobility• Public Health• Environmental Sustainability
As a result the Council’s principal objectives for land transport are to:• Ensure that the transport network and services
provide a quality service economically, and in an environmentally, socially and culturally appropriate way.
• Supply a network of roads with roading standards to refl ect economic costs and benefi ts to the public.
• Ensure suitable maintenance of the transport network, so that service capacity is not reduced.
An effective transportation network is a key element in the effi cient functioning of Gisborne district and its economy. As a community Gisborne is highly dependant on the mobility of its population, and particularly dependant on a well designed and maintained roading network as its primary means of physical daily communication.
Agriculture, forestry and fi shing are the major industries in Gisborne and linkages to both domestic and international markets are crucial in maintaining Council’s healthy economic status.
Car parking availability within the CBD is also an important factor to ensure the viability of the local businesses and the local economy as a whole. Providing and managing this parking provision appropriately can sustain and even aid growth in the local economy.
Walking and cycling are environmentally friendly transportation modes, which complement vehicle networks. Public transport is also a major consideration for Gisborne, even with relatively low population volumes and dispersed communities, and for parts of the community it is an essential component of their actual mobility.
This section contains key elements of the Regional Land Transport Programme (RLTP) which is being consulted on at the same time as this Ten Year Plan (refer to the "Our Strategic Direction" section for more details).
What we do and whyCouncil’s Land Transport Business Unit is responsible for managing the Land Transport and Parking Activity. This includes all elements of transportation planning, road maintenance and operation, parking provision and walking and cycling provision. In addition, and by virtue of being a Unitary Authority, activities such as regional land transport planning including passenger transport, mobility assistance for the disabled and road safety co-ordination are undertaken.
The eight key activities undertaken as part of Land Transport and Parking are:• Road asset maintenance and renewal• Road safety engineering and education• Transportation planning• Traffi c management• Road asset design and construction• Public transport provision• Pedestrian and cycling provision• Parking provision and control
This activity contributes to the following Council outcomes
Healthy Connected Prosperous Tairāwhiti Tairāwhiti Tairāwhiti
Safe Environmentally Tairāwhiti Sustainable Tairāwhiti Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Major Projects • Financial Sustainability • Community Viability and Functioning• Risk Management • Business Effi ciency • Customer Needs
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What are our plans for the next ten years?The key objective of the Land Transport and Parking Activity Management Plan is to contribute to Central Government's overall goal for transport:
“To grow New Zealand’s economy to deliver greater prosperity, security and opportunity for all New Zealanders.”
This goal is supported by fi ve aims:• Assist in economic development.• Improve safety and personal security.• Ensure environmental sustainability.• Protect and promote public health.• Improve access and mobility.
From a local perspective the following priorities need to be pursued:• Continue development of the road network
ensuring route security for the key links to Gisborne.• Increase focus on new roading projects,
particularly those that seek to address safety concerns.
• Retention of existing bus and mobility services. Consideration for projects that enhance accessibility.
• Pursuit of the goals identifi ed in the Cycle and Walking Strategy.
• Investigate possible measures to reduce demand for travel within the urban environment.
What will we do in years 1-10What are we doing now? What will we do in years 1-10?
ECONOMIC DEVELOPMENTImplementing our existing Activity Management Plan, Regional Land Transport Programme and Regional Transport Strategy.
• Improve management of assets.
• Target expenditure to strategic assets.
• Provide better links throughout the district.
• Increase development opportunities.
• Mitigate development impact.We will achieve these plans by…• Adoption of Roading Asset Management Plan (RAMP) and Bridge Asset Management Plan (BAMP).
• Priority ranking of bridges.
• Development of uneconomical bridge list.
• Implementation of GDC annual road upgrading programme.
• Promotion of works required to mitigate the Vehicle Dimensions and Mass Amendment (VDMA).
• Implement Gisborne District Council's Development Contribution Policy.
SAFETY and PERSONAL SECURITYImplementing our existing Activity Management Plan, Regional Land Transport Programme and Regional Transport Strategy.
• Reduce number and severity of crashes.
• Provide low cost engineering solutions.
• Target pedestrian and cyclist crash types.
We will achieve these plans by…• Implementing NZTA Safer Journeys Road Safety Strategy and adopt safe system approach.
• Implementing Safety Management System (SMS).
• Completing area wide crash reduction study.
• Increasing road safety programmes and education.
ACCESS and MOBILITYImplementing our existing Activity Management Plan, Regional Land Transport Programme and Regional Transport Strategy.
• Increase walking and cycling numbers.
• Improve access to public transport.
• Improve accessibility throughout the district.
• Encourage sustainable transport modes.
• Mitigate development impact.We will achieve these plans by…• Implement footpath improvements.
• Implement Gisborne District Council Walking and Cycling Strategy.
• Implement Gisborne District Council Passenger Transport Strategy.
• Locate development in accessible areas.
• Consider mobility issues through design.
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What are we doing now? What will we do in years 1-10?
PUBLIC HEALTH
Implementing our existing Activity Management Plan, Regional Land Transport Programme and Regional Transport Strategy.
• Increase walking and cycling.
We will achieve these plans by…• Implementing school and work place travel planning.
• Developing walking and cycling networks.
ENVIRONMENTAL SUSTAINABILITY
Implementing our existing Activity Management Plan, Regional Land Transport Programme and Regional Transport Strategy.
• Increase sustainable transport use.
• Increase sustainable roading and stormwater design.
We will achieve these plans by…• Adopting principles of NZS444:2010.
• Developing policy and check list to ensure sustainability goals are achieved through design.
• Investing in Travel Demand Management measures.
Challenges and opportunitiesGisborne is generally well connected and serviced from a roading infrastructural perspective relative to its size and population. However, there are transport and parking activity issues that require ongoing attention if Gisborne is to meet current and future needs.
Economic Development• Maintain and operate an effi cient and integrated
land transport infrastructure.• Address any deterioration in road surfaces and
confl icts between heavy vehicles and other road users.
• Maintain inter-regional corridors and connections.• Ensure a standard of transport infrastructure
that will not only maintain but will also enhance economic development.
• Ensure adequate access to industry and retail centres including suffi cient parking to accommodate demands.
Safety and Personal Security• Increase opportunities for passing on the state
highway network.• Improve road intersection and crossing safety.• Improve poor road alignment, narrow seal widths
and bridge widths.• Minimise confl icts between different traffi c types.• Adopt appropriate urban design to improve
connectivity and accessibility.• Promote road safety programmes.• Adopt appropriate enforcement and education
programmes.
Access and Mobility• Recognise the needs of the transport disadvantaged.• Ensure opportunities for access to health,
education, employment and leisure facilities are catered for.
• Provide an effi cient, reliable and cost effective public transport service.
• Develop linked and safe walking and cycling infrastructure.
Public Health• Promote active modes of transport.• Improve access to public health services and
facilities, employment or social services.• Reduce the negative health effects of transport
relating emissions and noise and vibration.• Improve overall road safety.
Environmental Sustainability• Address adverse effects associated to traffi c noise,
vibration and air pollution and the discharge of water pollutants from road runoff.
• Promote alternative modes of sustainable transport.
Signifi cant effects • Potential safety risks and health effects from air
pollution.• Traffi c noise and increased traffi c fl ow can
negatively affect the amenity of neighbours.• There can be an impact on property values as a
result of the activity.
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Risk mitigationA full risk analysis was undertaken for all assets which is provided in the Land Transport and Parking Activity Management Plan. This Risk Assessment has been developed in accordance with GDC Policy and procedures and includes risk ratings and proposed mitigation measure where relevant.
The sources and very high risk ratings are listed:• Operational – Exchange rate and oil price rises
affecting the price of bitumen.
• Commercial – Forestry development causing a growth in heavy traffi c numbers.
Four other sources of risk are listed (Political, Natural/Man Made, Legal and Human Resources) however the risk profi les range from low to high. A detailed risk register is included in the Land Transport Activity Management Plan.
How will we know if we are on track?
Level of Service Performance Measure Current Performance
TargetsYears 1-3 Years 4-10
We contribute to a Connected and Prosperous Tairāwhiti by operating and maintaining a reliable roading network that is up to date, in good condition and fi t for purpose
Percentage of Requests for Service resolved within target timeframes for the following:
- Roading
- Parking in the CBD.
88%
97%
95%
95%
95%
95%
Percentage of customers who rate Requests for Service responses as excellent/good for:
- Roading
- Parking in the CBD.
95%
100%
95%
95%
95%
95%
Percentage of residents satisfi ed with Council roads (excluding state highways) as found in Annual Resident Satisfaction Survey:
- Urban residents
- Rural residents.
72%
66%
85%
85%
85%
85%
Percentage of residents satisfi ed with footpaths as found in Annual Resident Satisfaction Survey.
76% 85% 85%
Percentage of sealed roads that fi t within the recommended industry smoothness counts - according to NAASRA (National Association of Australian State Roading Authorities) guidelines.
Urban 43%
Rural 55%
50% to have NAASRA count of
110 or better
50% to have NAASRA count of 110 or better
Urban 15%
Rural 8%
Not more than 20% to exceed NAASRA count
of 150
Not more than 20% to exceed NAASRA count
of 150.
We contribute to a Safe Tairāwhiti by ensuring the roading network is designed and managed for safe use with low crash and injury rates.
Percentage of residents who feel that riding a bicycle is dangerous as found in Annual Resident Satisfaction Survey.
New Measure Decreasing from baseline set in
Year 1
Decreasing
Annual number of roading fatalities. 5 Maintain or decrease
3 by 2020
Annual number of serious injury crashes. 19 Maintain or decrease
13 by 2020
Annual number of pedestrian and cyclist injury accidents.
39 Maintain or decrease
28 by 2020
Annual total number of registered road crashes.
390 Maintain or decrease
316 by 2020
We contribute to a Connected, Healthy and Environmentally Sustainable Tairāwhiti by providing and maintaining affordable and accessible transportation services that balance the needs of all users.
The number of bus passengers per annum. 163,176 1.8% increase per annum
1.8% increase per annum
Percentage of customers who rate the passenger transport system as excellent/very good.
53% 80% 80%
The availability of Council carparks within the CBD during business hours.
30% 5% 5%
Number of residents using walking and cycling networks
New Measure Increase from baseline set in
Year 1
5% increase on baseline by 2020
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Key assumptions and uncertaintiesThe proposed land transport and parking expenditure for this activity takes the following into consideration:• The assumption of the continuation of wood
travelling to the Port from 1.1m3 (2007 data) to 2.0m3 wall of wood.
• Funding assistance from Central Government to be restrained due to the roads of national signifi cance programme and the rebuild of Christchurch.
• A reduced fi nancial assistance rate announced in August from 59% to 58%.
• Conformity to the Government Policy Statement – Land Transport and Funding.
• Ensuring route security for key road links in and out of the district.
• Investment in roading projects that seek to address safety concerns.
• Improvement in accessibility for an ageing population.
• Improvement of the school bus and commuter bus services.
• Pursuing the goals identifi ed in the cycle and walking strategy.
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 9,373 9,428 9,514 9,771 10,030 10,392 10,699 11,029 11,432 11,774
Operating Expenses 22,967 23,351 23,793 24,666 25,488 26,309 27,263 28,332 29,374 30,507
Net Cost of Service 13,594 13,923 14,279 14,895 15,458 15,917 16,564 17,303 17,942 18,733
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Growth 128 244 129 852 159 215 223 235 594 146
Asset purchases - Increase level of service
1,367 1,888 1,424 1,612 1,942 1,661 1,634 1,747 1,716 1,451
Asset purchases - Maintain level of service
9,078 9,280 9,697 9,882 9,532 10,461 10,949 11,426 11,680 12,058
Capital Projects 10,573 11,412 11,250 12,346 11,633 12,337 12,806 13,228 13,990 13,656
Total capital projects
Asset purchases - Growth Asset purchases - Increase level of serv ice Asset purchases - Maintain level of serv ice
Depreciation v renewal capital project
133
Capital expenditure 2012-2022LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Land Transport and Parking
Taruheru Subdivision Road Links
Growth 715,000 16,000 699,000
Taruheru Subdivision Road Links
Growth 376,000 13,000 363,000
Bus Shelter Renewals Increase 91,000 21,000 22,000 23,000 25,000
Carpark (Hockey/Inner Harbour)
Increase 453,000 453,000
Drainage renewals - Roading Non Assisted
Increase 696,000 60,000 62,000 64,000 66,000 68,000 70,000 73,000 75,000 78,000 81,000
Midway Beach - Walking and Cycling
Increase 415,000 15,000 15,000 385,000
LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Awapuni Pedestrian Link - Roading
Increase 280,000 15,000 265,000
Community Transport - Funded Projects (T-Funds)
Increase 1,131,000 98,000 101,000 102,000 107,000 111,000 114,000 118,000 122,000 127,000 131,000
Waikanae Beach Walking and Cycling
Increase 235,000 235,000
Taruheru Walking and Cycling
Increase 2,222,000 176,000 187,000 462,000 478,000 452,000 467,000
Kaiti to Wainui Walking & Cycling
Increase 723,000 90,000 633,000
Grey Street - Waikanae Walking & Cycling
Increase 335,000 165,000 170,000
Awapuni Walking & Cycling
Increase 94,000 94,000
Minor Improvements Projects
Increase 10,357,000 900,000 900,000 900,000 990,000 1,020,000 1,052,000 1,089,000 1,130,000 1,168,000 1,209,000
Seal Extensions Increase 295,000 52,000 55,000 58,000 63,000 67,000
Pay and Display Parking Meters
Maintain 65,000 65,000
Radio Replacement for Parking Wardens - roading
Maintain 66,000 26,000 40,000
Traffi c Service Renewals (Renewal of Local Roads)
Maintain 2,830,000 244,000 251,000 259,000 268,000 276,000 285,000 295,000 306,000 317,000 328,000
Parking Meter Renewals Maintain 75,000 36,000 39,000
Unsealed Road Renewals (Renewals of local roads)
Maintain 17,398,000 1,500,000 1,546,000 1,590,000 1,650,000 1,700,000 1,754,000 1,815,000 1,883,000 1,947,000 2,015,000
Drainage Renewals Maintain 8,351,000 720,000 742,000 763,000 792,000 816,000 842,000 871,000 904,000 935,000 967,000
Bridge Renewals (Renewals of local roads)
Maintain 6,959,000 600,000 618,000 636,000 660,000 680,000 701,000 726,000 753,000 779,000 806,000
Bridge Replacements - Heavy Vehicle Bridge strengthening
Maintain 5,402,000 600,000 601,000 617,000 644,000 685,000 709,000 760,000 787,000
Resurfacing of Roads (Renewals of local roads)
Maintain 24,357,000 2,100,000 2,164,000 2,226,000 2,310,000 2,379,000 2,455,000 2,541,000 2,636,000 2,726,000 2,820,000
Footpath ReplacementMaintain 1,760,000 50,000 258,000 53,000 275,000 57,000 292,000 61,000 314,000 65,000 336,000
Rehabilitation of Roads (Renewals of local roads)
Maintain 32,836,000 2,831,000 2,917,000 3,001,000 3,114,000 3,208,000 3,309,000 3,426,000 3,553,000 3,675,000 3,802,000
Preventative Maintenance Maintain 2,317,000 200,000 205,000 211,000 220,000 227,000 234,000 242,000 251,000 260,000 269,000
Suburban & Township Upgrades
Maintain 1,648,000 250,000 427,000 283,000 363,000 325,000
Land Transport and Parking Renewals Programme
Maintain 750,000
Totals: 123,231,000 10,573,000 11,412,000 11,250,000 12,346,000 11,633,000 12,337,000 12,806,000 13,228,000 13,990,000 13,656,000
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Solid Waste
Why we do itThe provision of solid waste activities is a fundamental requirement for every district or city within New Zealand pursuant to the provisions of the Local Government Activity and Public Health Act 1956. The Council has a duty to ensure that this activity is managed effectively and effi ciently. The Waste Minimisation Act 2008 requires all local authorities in New Zealand to adopt a Waste Management and Minimisation Plan (WMMP).
This section contains key elements of the Waste Management and Minimisation Plan which is being consulted on at the same time as this Ten Year Plan (refer to the "Our Strategic Directions" section for more details).
As a result Council’s principal objectives for solid waste are to:• To reduce the quantity of waste disposed to
landfi ll per head of population.• Highly effective and effi cient waste management
and minimisation services – whether or not these are provided by the Council.
• Communities that are well informed about the effects of waste, opportunities they have to reduce waste and take responsibility for their waste.
• Cleaner streets and public places.• No signifi cant health risks created by waste.
What we do and whyThe eight key activities undertaken as part of solid waste are:• Rural and urban kerbside collection• Rural transfer operations• Waste minimisation and education• Recycling initiatives• Cleaning public places• Landfi ll operations and aftercare• Contract management• Policy development
CollectionThe Council provides a kerbside refuse and recycling collection in Gisborne, parts of the Poverty Bay fl ats and Ruatoria. This is a user-pays service which is paid for by a targeted rate. Households are issued with enough stickers to have a 5kg rubbish bag collected per week; additional stickers can be purchased through retail outlets if needed. Up to two 60 litre recycling crates of mixed recyclables are collected per week in conjunction with the rubbish collection. Ruatoria is rated on a per household basis.
Areas not serviced by a kerbside collection have access to a transfer station. Users of the Transpacifi c Resource Recovery Centre in Gisborne have to pay a disposal
charge for non-recyclable items and green waste. There are no disposal charges at Council run rural transfer stations however access is limited to local residents.
DisposalResidual waste collected from the areas south of Tolaga Bay is taken to the Gisborne Resource Recovery transfer station under a contractual agreement with Transpacifi c All Brite who own and operate the facility. Disposal of waste collected at the Gisborne transfer station is the responsibility of Transpacifi c All Brite and is currently trucked to a landfi ll outside the district. Residual waste collected from areas north of Tolaga Bay is trucked to the Waiapu Landfi ll near Ruatoria for disposal.
Litter collection and street cleaningA network of 265 litterbins located in public spaces throughout the district is regularly serviced and maintained by contract personnel. Street cleaning services are undertaken in the Gisborne city central business district and commercial areas and other townships.
Waste minimisationCouncil uses an integrated system of education, incentives and penalties in combination with appropriate facilities to encourage the community to reduce, reuse, recycle and recover as methods to minimise waste. Council runs programmes targeted at either sectors of the community or waste components including school education, the Rethink Environmental Education Centre, an organic waste programme with an education component, subsidies and community outreach, Secondhand Sunday and supporting recycling initiatives.
Day to day management of Council’s solid waste activities are carried out by Council’s Engineering and Works and Environment and Policy departments.
This activity contributes to the following Council outcomes
Connected Healthy Environmentally Tairāwhiti Tairāwhiti Sustainable TairāwhitiOur strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Performance Culture • Major Projects • Financial Sustainability • Risk Management • Business Effi ciency • Customer Needs.
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What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?
Reviewing Solid Waste Activity.
Reviewing Solid Waste Revenue and Financing Policy.
Developing and consulting on waste management and minimisation plan 2012-2018.
Years 1-3Implement a district-wide sticker system for waste collection currently applied in urban areas.
Implement Waste Management and Minimisation Plan 2012-2018.
Implement the recommendations of the Solid Waste Review.
Years 4-10Review the Waste Management and Minimisation Plan 2018-2024.
We will achieve these plans by…Council intends to oversee, facilitate and manage a range of programmes and actions to achieve effective and effi cient waste management and minimisation. Council will be responsible for a range of contracts and programmes to provide waste management and minimisation services to the residents and ratepayers of the district. These activities have been listed as an Action Plan in the WMP and include:
• Maintain and upgrade Council facilities and contracts.
• Review contracts as they come up for renewal.
• Maintain and enhance current education programmes and facilities.
• Continue advocacy to Central Government.
• Provide incentives to rural communities to minimise waste.
• Enhance behavioural change programme in rural areas.
• Continue trialling new initiatives, including a local contestable waste minimisation fund.
• Encourage source separation.
• Support resource recovery facilities and diversion.
• Assess viability of changes to kerbside collection system.
• Investigate bylaw relating to events.
• Support hazardous waste best practices as these become available.
• Investigate programmes to minimise special products to landfi ll, including tyres, nappies, textiles and wood waste.
• Maintain and enhance controls on illegal dumping.
• Collect data and monitor the effect of waste on health and the environment.
• These actions, as detailed in the Action Plan, are designed to realise Council's goals for waste management and minimisation and address the issues arising from now until 2018.
Challenges and opportunitiesFuture challenges and opportunities facing the district: • Further effective and effi cient opportunities for
diversion if further reduction in waste to landfi ll is to be achieved.
• Incentives to further remove divertible from waste, both at source or prior to land fi lling.
• Strong signals to the community to encourage waste minimisation and diversion.
• Continued benefi cial use of waste from the forestry sector, the one sector forecast as having signifi cant growth.
• Improved technology, product stewardship schemes and economic drivers will provide opportunities for the district to divert more materials away from landfi ll.
• More advocacy to Central Government to implement programmes such as mandatory product stewardship as a fairer way of dealing with waste and to make signifi cant impacts on waste to landfi ll and resource effi ciency.
• Improved resource effi ciency, with Central Government input, to create an opportunity to minimise waste that needs landfi lling.
• Disposal costs to outside landfi lls are expected to rise, especially as transport costs increase, but can be kept to a minimum by addressing the waste issues above.
Risk mitigationA full risk register is included in the Solid Waste Activity Management Plan. The major sources of risk involved the following descriptions like operational, commercial, natural/man made, political, and legal risks. Each risk was reviewed against levels of service and existing controls listed to minimise this.
The highest risks primarily relate to impacts caused by oil price rises, vandalism and earthquakes. These risks are mitigated by monitoring of trends, proactive action by contractors and the completion of seismic impact reports.
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Signifi cant effects• Kerbside collections if not completed properly
can lead to public health and safety issues.• Refuse collection has potential negative effects
from waste escaping from rubbish bags or bins and affecting the amenity of areas.
• Noise may be a factor, when they are operated seven days a week.
• User pays can lead to dumping of rubbish to avoid payment.
How will we know if we are on track?
Level of Service Performance Measures Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Connected and Environmentally Sustainable Tairawhiti by providing community recycling facilities and regular kerbside collections to encourage recycling and waste reduction.
Percentage of Requests For Service resolved within target timeframes.
93% Year 1: 92%
Year 2: 93%
Year 3: 95%
95%
Percentage of customers who rate RFS responses as excellent/good.
99% 95% 95%
Resident satisfaction with rubbish bag collections as found in the Annual Resident Satisfaction Survey.
85% Year 1: 85%
Year 2: 87%
Year 3: 89%
90%
Resident satisfaction with Council's recycling collection and facilities as found in the Annual Resident Satisfaction Survey.
91% 90% 90%
Reduction in waste to landfi ll. Measured in kg per head of population.
306kg Year 1: 306kg
Year 2: 300kg
Year 3: 292kg
285kg
We contribute to a Healthy Tairawhiti by providing clean, safe footpaths and litter free public spaces with a network of litter bins.
Percentage of litter on city streets compared to 2011 base level as found in Annual Litter Reduction Survey.
100%
Baseline
Decreasing Decreasing
Total waste received as illegal dumping.
500 Tonnes Decreasing Decreasing
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 149 149 149 150 150 150 151 151 152 152
Operating Expenses 4,249 4,485 4,567 4,668 4,790 5,001 5,112 5,234 5,376 5,521
Net Cost of Service 4,100 4,336 4,418 4,518 4,640 4,851 4,961 5,083 5,224 5,369
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Maintain level of service
0 0 0 0 489 0 0 0 0 0
Capital Projects 0 0 0 0 489 0 0 0 0 0
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Total capital projects
Depreciation v renewal capital projects
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Solid Waste
Waiapu Landfi ll - Stage 3 Maintain 489,000 489,000
Totals: 489,000 489,000
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Urban Stormwater ServicesWhy we do itTo protect people, dwellings, private property and public areas from fl ooding by removing stormwater. To discharge stormwater and collect contaminants in a manner that protects the environment and public health.
What we do and whyStormwater can be described as rain that runs off hard surfaces such as roofs, paved streets, driveways and roads. Council owns and operates the public stormwater systems for Gisborne City including Wainui and Okitu, and urban areas in the following rural communities: • Hicks Bay • Matawai• Te Araroa • Tikitiki• Te Karaka • Whatatutu• Ruatoria • Tokomaru Bay• Manutuke • Tolaga Bay• Te Puia Springs • Patutahi
Stormwater systems carry away surface water runoff from rain events, protecting properties from the impacts of fl ooding. The environment and public health is also provided a level of protection, such as reducing the level of pollutants discharged in natural waterways. This is achieved through:
• The primary stormwater system, which consists of pipes, drains, swales, sumps and channels.
• The secondary stormwater system, which comes into play during signifi cant heavy rain events. This consists of stormwater fl ow paths through reserves, private properties and along road corridors.
• Reducing the level of pollutants discharged into natural waterways. This is via a range of measures including swale drains, green infrastructure, gross pollutant traps and education.
The key components of the stormwater system are the provision of cesspits, open drains and piped reticulation into drainage courses/streams and eventually into rivers and/or the sea.
The Activity Goal and Principal Objectives The goals of providing a public stormwater system are to ensure that consumers have:• Access to a utility service (outlet) that provides for
the use and enjoyment of their properties (within defi ned risk levels) thereby eliminating the need for individuals to provide their own stormwater system.
• A stormwater system, that meets the capacity requirements of residents, provides environmental and health benefi ts in a more effective and effi cient manner if it is provided on a collective basis.
In providing a public stormwater system, the Council’s key objectives are:
• Minimisation (Reduction, Reuse, Recycling, Recovery) - The entry of harmful or potentially harmful substances to stormwater should be prevented or minimised where possible.
• Collection - Separation of stormwater and sewer systems is necessary, as is the continuing upgrade of the reticulation system.
• Treatment and Disposal – The quality and quantity of stormwater should not be signifi cantly detrimental to the receiving environment.
• To increase the levels of public safety, protection of properties from fl ood damage and reduce the risk of catastrophic failure of the drainage system.
Other Signifi cant Corporate Goals are to:• Comply with all legislation.• Comply with audit requirements.• Complete programmes as detailed in the
Strategic Plan, Annual Plan, Estimates and Activity Management Plans.
This activity contributes to the following Council outcomes
Connected Healthy Prosperous Tairāwhiti Tairāwhiti Tairāwhiti
Safe Environmentally Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Natural Resource Use • Financial Sustainability• Business Effi ciency • Customer Needs
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What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?
Ten Year Plan.
Activity Management Plan.
Limited Condition Assessments.
Catchment Studies.
A review of catchment studies survey information.
Infrastructure condition assessments.
A 10 year renewals plan.
Risk assessments.
Township reviews.
CCVTV investigations.
Ongoing scheduled City drain cutting maintenance.
Asset attribute identifi cation and as-building.
Criticality Program & Risk Management Plan.
Updating City assets Information.
Sanitary assessments.
Updating Townships assets Information.
Township renewal programme.
Prepare and adopt 10 year fi nancial strategy.
We will achieve these plans by…• Preparing information for the 2012-22 Ten Year Plan.
• Continued development of the Activity Management Plan.
• Condition assessments of infrastructure.
• Investigations.
• Undertaking programmed capital work renewals and upgrades.
• Asset identifi cation and asset management system information maintenance.
Challenges and opportunitiesSee the challenges and opportunities outlined in the Flood Protection summary.
Signifi cant effects• Stormwater blockages and rain events can cause
ponding and fl ooding issues of resident's properties as well as increase the risk of wastewater overfl ows.
• The large amount of open drains contributes to the community's health and safety risks within the city.
• Under capacity of the stormwater network in industrial and residential areas can be a deterrent to developers taking up a project to the detriment of the community if they are required to provide additional funds to upgrade the capacity of stormwater infrastructure downstream of their proposed development.
• High levels of stormwater and groundwater entering the wastewater reticulation can result in overload of the wastewater system. This requires wastewater to be directly discharged into the river in order to deal with the overload. Stormwater upgrade projects have been major commitments of Council and are expected to continue.
• Gross pollutants discharged into the natural environment from the stormwater system including bottles, plastics, rubbish, hydrocarbons and various other products.
• Stormwater quality can affect aesthetic value or intrinsic appeal and cultural signifi cance.
Risk mitigation
A detailed risk register outlining how signifi cant risks are mitigated is included in the Urban Stormwater Activity Management Plan.
For further information see the risk mitigation section of the Flood Protection Activity summary.
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How will we know if we are on track?
Council Outcomes Performance Measure Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Healthy, Prosperous, Safe Connected and Environmentally Sustainable Tairāwhiti by providing high quality infrastructure and by ensuring a healthy community through the removal of stormwater and contaminants to protect dwellings, the environment and people
Number of Requests for Service regarding blockages.
60 65 65 - 60
The percentage of blockage Requests for Service resolved within target timeframes ranging from 1 day for emergency work to 480 days for 2 year scheduled work.
95% 86% 86% - 90%
Number of Requests for Service regarding emergency repairs.
31 45 40
The percentage of emergency repair Requests for Service resolved within target timeframes ranging from 1 day for emergency fl ooding work to 5 days for emergency covers/grates collapses.
90% 90% 90%
Percentage of customers who rate Request for Service responses as excellent / good.
97% 92% 93% - 95%
Percentage of residents satisfi ed with the district’s urban stormwater services as found in Annual Resident Satisfaction Survey.
69% 61% 61% - 65%
Number of residential buildings fl ooded during the year. (This includes habitable parts of residential buildings only).
3 5 5
A 24/7 callout service is available for reporting stormwater problems.
100% 100% 100%
All consents are processed in accordance with the Engineering and Works Code of Practice.
Achieved Achieved Achieved
Key assumptions and uncertaintiesSee the Key Assumptions and Uncertainties outlined in the Flood Protection Activity Summary.
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 0 0 0 0 0 0 0 0 0 0
Operating Expenses 2,726 2,849 2,838 2,960 3,069 3,138 3,318 3,483 3,477 3,634
Net Cost of Service 2,726 2,849 2,838 2,960 3,069 3,138 3,318 3,483 3,477 3,634
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Growth 90 167 829 101 104 108 112 116 121 126
Asset purchases - Maintain level of service
640 411 671 807 654 1,700 2,188 1,246 1,266 1,288
Capital Projects 731 578 1,499 907 759 1,809 2,300 1,362 1,387 1,414
Total capital projects
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Depreciation v renewal capital projects
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Stormwater
Lloyd George Road Stormwater Upgrade
Growth 222,000 31,000 191,000
Upsizing of infrastructure to Cater for Additional Growth
Growth 259,000 22,000 23,000 24,000 24,000 25,000 26,000 27,000 28,000 29,000 31,000
T a r u h e r u /W a r u / H a i s m a n ( S t o r m w a t e r Catchment)
Growth 589,000 52,000 538,000
Te Hapara Stream Upgrades
Maintain 224,000 32,000 192,000
Te Hapara Suburb Upgrades
Maintain 2,061,000 174,000 928,000 960,000
Stanford Crescent S t o r m w a t e r Catchment Upgrade
Maintain 346,000 35,000 311,000
Tolaga Bay S t o r m w a t e r Renewals
Maintain 255,000 255,000
S t o r m w a t e r Pipelines/Renewals
Maintain 2,191,000 185,000 192,000 199,000 206,000 214,000 221,000 229,000 238,000 248,000 258,000
S t o r m w a t e r Renewals for Rural Townships
Maintain 1,291,000 109,000 113,000 117,000 122,000 126,000 130,000 135,000 140,000 146,000 152,000
Stormwater In Drain Structures
Maintain 438,000 37,000 38,000 40,000 41,000 43,000 44,000 46,000 48,000 50,000 52,000
Stormwater - Upper Reynolds Drain from Gladstone Road to Elgin
Maintain 217,000 32,000 185,000
S t o r m w a t e r Localised Urban Upgrades
Maintain 1,456,000 123,000 128,000 132,000 137,000 142,000 147,000 152,000 158,000 165,000 171,000
S t o r m w a t e r M a n g a p a p a Stream (Massey/Oswald)
Maintain 195,000 195,000
S t o r m w a t e r R e n e w a l s Programme
Maintain 3,000,000 750,000 750,000 750,000 750,000
Totals: 12,746,000 731,000 578,000 1,499,000 907,000 759,000 1,809,000 2,300,000 1,362,000 1,387,000 1,414,000
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WastewaterWhy we do it The Wastewater activity protects public health by providing Gisborne city and Te Karaka with a reliable and effi cient wastewater system. This activity conveys, treats and discharges wastewater in a manner that minimises adverse effects on the environment.
What we do and whyThe operation and maintenance of wastewater networks, including treatment and disposal, for Gisborne city (including the western industrial area) and Te Karaka.
The operation and maintenance of septage disposal sites at Te Araroa, Tikitiki, Ruatoria (Waiapu) and Te Puia.
The Wastewater activity does not include the administration and monitoring of onsite wastewater systems.
Key Components• The collection and conveyance of wastewater
from its sources (commercial, industrial and domestic residences) in Gisborne and Te Karaka to its point of treatment.
• Treatment and disposal of sewage for commercial and domestic users for Gisborne and Te Karaka.
• Provision of septage disposal points and treatment for some others.
Overview of Wastewater Networks
Factor Gisborne City Te Karaka Total
Population Served by the Wastewater activity
31,660 570 32,230
Number of Connections (approx)
14,245 166 14,411
Length of Reticulation (km) (including Industrial system)
220 6 226
Number of Manholes( inc luding Industrial system)
2,718 76 2,778
Number of Pumping Stations (including Industrial system)
39 5 44
Value (DRC) $,000 80,325 1,333 81,569
Approximate Discharge Volumes (Average per day) m3/day (including Industrial system)
13,000 140 13,140
Treatment Method Biological Trickling
Filter Plant
Oxidation Ponds
Factor Gisborne City Te Karaka Total
Discharge Poverty Bay via marine
outfall
Waipaoa River
Within Gisborne city certain industries are served by a separate industrial wastewater network. This network discharges to the Wastewater Treatment Plant and eventually the marine outfall, but the industrial wastewater does not go through the biological trickling fi lter.
Council regulates trade waste discharges to the Gisborne city wastewater systems (domestic and industrial) by means of the Trade Waste Bylaw and monitoring.
Non-Reticulated AreasThe remainder of communities in the Gisborne district are served by non-Council administered private septic tank systems. The Wastewater activity does not include the administration and monitoring of the onsite wastewater systems.
Council has facilities for the disposal of septage from private septic tank systems at the Gisborne Wastewater Treatment Plant and Te Karaka Oxidation Pond. In addition to this there are dedicated sites for the disposal of septage located at the following communities:• Te Puia Springs• Ruatoria (at the Waiapu landfi ll)• Tikitiki • Te Araroa.
Activity Objectives Council’s principal objectives in providing wastewater services are:• Preservation - To protect and promote public
health by providing a modern and convenient to use reticulation system and safe disposal of effl uent.
• Enhance Environment - Protects the physical environment through the treatment and discharge of effl uent through approved methods.
• Sustainable Management - Through ensuring wastewater is transported in a sanitary manner to the treatment point of use in an integral and secure system.
• Economic Base - Facilitate the continuing development of both private and business interests by providing the underlying sanitary infrastructure required to support the economic base of the community.
• Future Generations - Maintain the asset base in perpetuity by providing an effi cient, sustainable and customer focused wastewater system.
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The purposes of Council regulating trade waste are as follows: • To ensure the protection of Council personnel and
the general public from hazardous substances that may be a component of a trade waste stream.
• To protect the ability of Council to meet the requirements of the consents for the outfall discharge.
• To protect Council’s investment in the existing and future infrastructure.
This activity contributes to the following Council outcomes
Connected Safe Healthy Tairāwhiti Tairāwhiti Tairāwhiti
Prosperous Environmentally Tairāwhiti Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Natural Resource Use • Financial Sustainability • Business Effi ciency • Customer Needs.
What are our plans for the next ten years? What are we doing now? What will we do in years 1-10?
Writing Activity Management Plans.
Critical analysis of assets.
Initial renewals programme.
Maintaining a hydraulic model of the wastewater system.
Operation and Health and Safety procedures for the wastewater treatment plant.
Years 1-10Condition assessment of assets (gravity pipes, outfall, rising mains, above ground assets, Te Karaka system).
Reviewing Activity Management Plans.
Sanitary Assessments.
Updated renewals programme.
Alternative use and disposal programme.
Wastewater management committee.
Replace wastewater pipelines in Kaiti.
Turanganui-a-Kiwa water quality enhancement project.
Biotransformation study.
Years 1-3Consent variation hearing for Wastewater Treatment Plant.
Independent review panel for Wastewater Treatment Plant Asbuilt Reconciliation Programme.
Industrial waste system procedures.
Wastewater Treatment Plant Health and Safety Review.
Te Karaka data in Hansen.
Te Karaka operation review.
Septage sites operation review.
Years 4-10CCTV data storage.
Wastewater Bylaw.
Tikitiki septage site resource consent application.
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What are we doing now? What will we do in years 1-10?
We will achieve these plans by…• Critical analysis and condition assessments of gravity pipes. Identify method of assessment and assess outfall condition
assessment and capacity. Rising main condition assessment including sampling programme of AC rising mains. Development of an above ground asset inspection programme. Condition assessment of Te Karaka piped infrastructure.
• A District Three Waters Assessment.
• Creating a new renewals programme for each future Activity Management Plan.
• Reviewing the format in which historical CCTV data is stored with a view to storing it electronically.
• Developing an Asbuilt Reconciliation Program and Processes.
• Investigating development of a wastewater bylaw and charging for connection to the network.
• Preparing policies and procedures for the industrial waste system.
• Reviewing the Health and Safety System at the Wastewater Treatment Plant.
• Wastewater Technical Advisory Group (WTAG) biotransformation study.
• Collecting and recording Te Karaka data into Hansen and GIS system. Includes survey to determine which properties are connected to the system.
• Reviewing the operation of Te Karaka oxidation pond and system, including telemetry, management plan and developing of Levels of Service specifi c to Te Karaka.
• Investigating septage sites on the East Coast for modifi cation and/or relocation: Te Puia Springs, Tikitiki, Waiapu and Te Araroa. Includes review of district wide septage disposal - including developing levels of service specifi c to septage sites, operation, management plan, monitoring regimes, geotechnical assessment and whether the existing septage sites are appropriate for their situation.
• Tikitiki septage site resource consent application.
• Consent variation hearing for the Wastewater Treatment Plant based on outcome of the WTAG report to Wastewater Management Committee and Council. This is a consent requirement for outfall.
• Alternative use and disposal programme for wastewater.
• Wastewater management committee for Wastewater Treatment Plant.
• Turanganui-a-Kiwa water quality enhancement project.
• Independent review panel for Wastewater Treatment Plant.
Challenges and opportunitiesSee the Challenges and Opportunities outlined in the Flood Protection Activity Summary.
Signifi cant effects• Health and safety risks associated with the
construction, maintenance or operation of the wastewater infrastructure (pipelines and pump stations).
• Health and safety issues and property damage resulting from overfl ows from gully traps onto private property.
• Odours from the piped networks pump stations and treatment facilities causing distress to residents.
• Close of business resulting from overfl ows. Under capacity of the wastewater network can stifl e development if a requirement is to meet the cost of upgrading the downstream mains.
• The discharges into Poverty Bay (via the outfall pipeline) and the Waipaoa River (Te Karaka oxidation pond).
• Contamination from controlled overfl ows discharging wastewater into waterways such as rivers and streams.
• Odours, visual effects and effects on groundwater from the septage disposal sites.
• Overfl ows and discharges of wastewater to rivers and streams continue to be a culturally negative effect of the wastewater activity as these waterways are sacred to Māori.
Risk mitigationA detailed risk register outlining how signifi cant risks are mitigated is included in the Wastewater Activity Management Plan.
For further information see the risk mitigation section of the Flood Protection Activity summary.
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How will we know if we are on track?
Level of Service Performance Measure Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Healthy, Safe, Prosperous, Environmentally Sustainable and Connected Tairawhiti through the provision of a well managed wastewater reticulation system which protects public health and the physical environment. 1
Number of Requests for Service regarding odours.
14 Year 1: 15
Year 2: 15
Year 2: 14
14-12
The percentage of odour requests resolved within target timeframes.
50% 91% 92%-95%
Number of Requests for Service regarding blockages.
101 Year 1: 100
Year 2: 95
Year 3: 95
95-90
The percentage of blockage requests resolved within target timeframes.
89% 91% 92%-95%
Percentage of customers who rate Request for Service responses as excellent/good.
100% 91% 91%
Percentage of residents satisfi ed with the Gisborne district’s sewerage system as found in Annual Resident Satisfaction Survey.
75% 60% 60%-65%
Percentage of samples that are compliant with outfall waste consent conditions for suspended solids (measured in accordance with consent requirements).
97% Year 1: 95%
Year 2: 95%
Year 3: 98%
98%
Percentage of samples that are compliant with outfall waste consent conditions for total oil and grease (measured in accordance with consent requirements).
35%
(performance 2010/11 - prior to
WWTP)
Year 1: 95%
Year 2: 95%
Year 3: 98%
98%
The annual number of events where sewerage is discharged from Council’s reticulation into rivers or streams (based on a 1 in 10 year event).
3 4 4-1
1 This level of service applies only to Gisborne city. There are no
performance measures specifi c to Te Karaka or the septage sites. These will be developed over the next three years and will be included in the 2015-2025 Ten Year Plan.
Key assumptions and uncertaintiesSee the key assumptions and uncertainties outlined in the Flood Protection Activity summary.
Wastewater activity specifi c assumptions and uncertainties include:• Rainfall increases due to climate change are in
accordance with the Design Rainfall Curves.• Detailed investigation into build-ability of some
wastewater capital projects has not been taken into account.
• The increasing amount of infl ow and infi ltration generated by failing pipes is matched by the decrease generated by upgrades and renewals.
• New suburbs generate limited infl ow and infi ltration.
146
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013
Budget
2014
Budget
2015
Budget
2016
Budget
2017
Budget
2018
Budget
2019
Budget
2020
Budget
2021
Budget
2022
Operating Revenue 607 560 489 453 514 480 496 562 530 549
Operating Expenses 7,807 8,361 8,124 8,361 8,740 8,836 9,208 9,617 9,701 10,031
Net Cost of Service 7,200 7,801 7,635 7,908 8,226 8,356 8,712 9,055 9,171 9,482
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Growth 320 106 892 150 675 285 732 83 176 183
Asset purchases - Maintain level of service
3,665 1,796 3,617 3,440 1,932 3,072 3,755 2,463 3,731 4,068
Capital Projects 3,985 1,902 4,509 3,590 2,606 3,356 4,487 2,546 3,907 4,251
Total capital projects
Depreciation v renewal capital projects
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Wastewater
Chrisp Wastewater Drain Growth 37,000 37,000
Wastewater - Upgrade Rising Main and Pump Station for Taruheru Block - Campion
Growth 750,000 73,000 677,000
Localised Urban Upgrades Growth 317,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 36,000 37,000
Wainui Road Pipeline New Growth 634,000 56,000 579,000
Taruheru Block pump station (Moss and/or Cameron)
Growth 452,000 452,000
147
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Taruheru Block Pump Station (Moss and/or Cameron)
Growth 446,000 446,000
Kaiti Wastewater Pipeline Upgrades (2yr Annual Rainfall Intensity)
Maintain 3,817,000 291,000 1,731,000 1,795,000
Mangapapa Upgrades (2yr Annual Rainfall Intensity)
Maintain 3,518,000 266,000 1,598,000 1,654,000
Upgrades (2yr Annual Rainfall Intensity) Remaining areas
Maintain 3,400,000 257,000 1,540,000 1,603,000
SCADA base station Maintain 8,000 8,000
Wastewater Treatment Plant Ultraviolet Installation
Maintain 2,450,000 2,450,000
Te Karaka Telemetry Maintain 56,000 56,000
Wastewater - Pump Station and Telemetry Renewals
Maintain 2,866,000 242,000 251,000 260,000 270,000 280,000 290,000 300,000 311,000 324,000 337,000
Wastewater - Te Karaka Pump Renewals
Maintain 37,000 12,000 12,000 13,000
Wastewater - Pipeline Renewals (new programme)
Maintain 14,209,000 1,200,000 1,247,000 1,290,000 1,338,000 1,388,000 1,436,000 1,487,000 1,543,000 1,607,000 1,673,000
Installation of Permanent Flow Loggers
Maintain 241,000 54,000 58,000 62,000 67,000
Wastewater Renewal Programme
Maintain 1,900,000 500,000 400,000 400,000 600,000
Totals: 35,139,000 3,985,000 1,902,000 4,509,000 3,590,000 2,606,000 3,356,000 4,487,000 2,546,000 3,907,000 4,251,000
148
Water SupplyWhy we do itTo provide a continuous, sustainable, safe water supply and provide assured availability of water for fi re fi ghting purposes to the Gisborne City supply area and the townships of Te Karaka and Whatatutu.
Key components:• Provide potable water for domestic, commercial
and industrial purposes.• Provide water to provide fi re protection.• Provide water to public service providers and
community facilities such as schools, hospitals, sporting facilities and grounds etc.
What we do and whyThe following area communities are reticulated by Council administered supplies:• Gisborne City, including parts of Manutuke and
Makaraka.• Te Karaka.• Whatatutu.
For these areas, Council owns and maintains the whole water supply network which covers:• Collection of raw water.• Treatment of raw water to produce suitable
quality and quantities of drinking water.• Distribution of treated water to the point of
supply to the customer, where it consistently meets appropriate fl ow, pressure and quality standards. This includes water required for the city’s emergency fi re-fi ghting services.
The following area communities are reticulated by non-Council administered supplies:• Te Puia Springs.
All other areas are non-reticulated, private supply systems sourced from roof catchments, ground water bores/springs or surface water. These other water supplies are not Council owned or administered.
Gisborne City Water SupplyThe Council maintains and/or owns the Gisborne water supply from its source supply, via water treatment infrastructure to the water reticulation network, including the connections from the street mains to all serviced property boundaries. At commercial metered connections Council owns the water meter and backfl ow preventer and charges for actual water used.
The Gisborne city system provides water to communities adjacent to the Waingake bulk water main, which includes the communities of Manutuke. Parts of the Poverty Bay fl ats adjacent to the Waipaoa bulk water main are also supplied.
The water quality grading of Gisborne’s potable water supply is continuously being reviewed by the Ministry of Health in accordance with the NZ Drinking Water Standards.
Te Karaka Water SupplyTe Karaka Water Treatment Station is located on the township side of the Waipaoa River stop bank and provides a water supply that is supplementary to the rainwater collected by each individual consumer during extended dry periods. Treatment involves oxidation and fi ltering of raw water, then chlorine is added to help with disinfection. This system was setup through funding from a Health Department subsidy and was installed in December 1982. Since then, issues regarding low water quality from the bore, insuffi cient treatment facilities and non-compliance from the connected properties have occurred from time to time. This pump station is well maintained but is beginning to age with an increasing number of faults expected as the economic life nears ending.
Whatatutu Water SupplyThe Whatatutu Water Treatment Station is located adjacent to the Mangatu River and provides a water supply that is supplementary to the rainwater collected by each individual consumer during extended dry periods. Treatment involves oxidation and fi ltering of raw water, then chlorine is added to help with disinfection. The scheme was undertaken in conjunction with a Health Department subsidy, which was available at that time. Installation took place in 1979 and was provided on a supplementary supply basis to top up existing users rainwater tanks during extended dry periods.
This activity contributes to the following Council outcomes
Connected Healthy Prosperous Tairāwhiti Tairāwhiti Sustainable
Environmentally Sustainable Tairāwhiti
Our strategic challengesThe strategic challenge areas that this activity intends to contribute to are:• Natural Resource Use • Financial Sustainability• Business Effi ciency • Customer Needs.
149
What are our plans for the next ten years?What are we doing now? What will we do in years 1-10?
Ten Year Plan.
Activity Management Plan.
Basic condition assessments.
Basic demand management planning.
Fire fi ghting compliance.
Approved Public Health Risk Management Plans (PHRMP) for townships.
Draft Public Health Risk Management Plans (PHRMP) for City.
Drinking Water Standards NZ 2005 (Rev 2008) compliance.
Years 1-3Demand/Supply Management and Forecast Plan (including Waipaoa Treatment Plant ongoing use assessment and Dam level study).
Criticality Analysis of Reticulation network.
Infrastructure condition assessments.
A ten year renewals plan.
Effectively utilise hydraulic water model.
Implement a Ministry of Health approved PHRMP for Gisborne City.
Te Karaka water supply upgrade.
Implement leakage control project.
NZFS fl ow capability assessment (utilising Water Model).
Years 4-10Criticality Program and Risk Management Plan
Infrastructure condition assessments.
A ten year renewals plan.
Sanitary assessments.
Maintain a Ministry of Health approved PHRMP for Gisborne City.
Drinking Water Standards NZ 2005 (Revised 2008) Source Water Compliance.
We will achieve these plans by…• Preparing information and continued development of the Water Supply Activity Management Plan for the 2012-22 Ten
Year Plan.
• Condition assessments and leakage assessment of infrastructure.
• Demand/supply management investigations to implement a comprehensive water demand management strategy and plan.
• Extensive utilisation of the recently re-calibrated hydraulic water model to verify fi re fi ghting compliance in all reticulated areas within the urban area boundary.
• Undertaking programmed capital work renewals and upgrades.
• Asset identifi cation and asset management system information maintenance.
Challenges and opportunitiesSee the Challenges and Opportunities outlined in the Flood Protection Activity summary.
Signifi cant effects • The effects on the environment of discharges of
chlorinated water from maintenance activities or pipeline failures.
• The risks associated with the construction of pipeline renewals.
• Health and safety risks associated with the construction, maintenance or operation of the water supply infrastructure.
• Property damage resulting from maintenance failures. Damage to some household hot water valves caused by corrosion by-products within galvanised iron rider mains and service connections.
• The economic cost to the community as a result of property damage resulting from mains failures and corrosion by-products within the water supply.
Risk mitigationA detailed risk register outlining how signifi cant risks are mitigated is included in the Water Supply Activity Management Plan.
For more information see the Flood Protection Activity summary.
150
How will we know if we are on track?
Level of Service Performance Measure Current Performance
Targets
Years 1-3 Years 4-10
We contribute to a Healthy, Prosperous, Environmentally Sustainable and Connected Tairawhiti by providing water supply infrastructure that meets the needs of our community now and into the future by delivering safe, clean water in a sustainable manner.
Number of complaints per annum regarding water quality.
9 15 14-10
Compliance with NZ Drinking Water Standards (excluding P2 determinants until Capital Assistance Program funding is decided).
Gisborne City
Te Karaka
Whatatutu
Achieved
Not Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
Achieved
Number of public advisory notices issued to boil water.
Zero Zero Zero
Number of Requests for Service regarding water leaks.
85 85 84-80
The percentage of water leak Requests for Service resolved within target timeframes.
87% 84% 85% - 90%
Number of events regarding no water / or low pressure (less than 300 kilopascals).
41 50 50 - 45
Percentage of residents satisfi ed with the water supply system as found in the Annual Resident Satisfaction Survey.
86% 75% - 82% 86%
Water provided continuously and without restriction in compliance with the maintenance contract for up to a 50-year drought in the Gisborne region.
Achieved Achieved Achieved
Key assumptions and uncertaintiesSee the Key Assumptions and Uncertainties section outlined in the Flood Protection Activity summary.
Water Supply activity - specifi c assumptions and uncertainties include:• The information provided has been developed
from a sound base, the asset register being of high quality and renewal projections risk based on pipe failure.
• The accuracy of the valuations and the need to reassess valuations once the capital upgrading programme is completed could affect the fi nancial projections.
• The renewal programme is based on a small condition sample. These inspections have indicated that the assets are generally in good condition. More extensive condition assessment work will occur over the next three years.
• The Water Engineer’s best judgement has been used in preparing capital cost projections with anticipated results from the preparation of the Public Health Risk Management Plans and the outcome of the Water and Sanitary Assessments. Any signifi cant change in the desired Level of Service identifi ed through these processes could impact on this Activity Management Plan and these changes will be incorporated into the next review of this Plan.
151
Forecast activity cost statementOPERATING REVENUE & EXPENDITURE
($000)Budget
2013Budget
2014Budget
2015Budget
2016Budget
2017Budget
2018Budget
2019Budget
2020Budget
2021Budget
2022
Operating Revenue 2,131 2,173 2,248 2,338 2,445 2,567 2,663 2,829 2,904 3,069
Operating Expenses 5,220 5,564 5,685 5,919 6,175 6,325 6,559 6,879 7,047 7,373
Net Cost of Service 3,089 3,391 3,437 3,581 3,730 3,758 3,896 4,050 4,143 4,304
CAPITAL EXPENDITURE ($000) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Asset purchases - Growth 671 37 507 125 99 410 77 93 97 658
Asset purchases - Maintain level of service
2,306 406 742 1,868 1,270 810 1445 1,437 1,458 1,530
Capital Projects 2,977 442 1,250 1,993 1,369 1,220 1,522 1,530 1,555 2,188
Total capital projects
0
500
1000
1500
2000
2500
3000
3500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$000
's
Asset purchases - Growth Asset purchases - Maintain level of serv ice
Depreciation v renewal capital projects
Capital expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Water Supply
Development Contribu-tions : Taruheru Block Water
Growth 1,346,000 436,000 352,000 558,000
Development Contribu-tions : Local Urban Upgrades
Growth 391,000 94,000 28,000 29,000 30,000 32,000 33,000 34,000 35,000 37,000 38,000
Rural Townships: Te Karaka Water Supply Upgrades
Maintain 493,000 493,000
Rural townships: Whatatutu Water Supply Upgrades
Maintain 306,000 306,000
152
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Bulk Distribution - Waingake Trunk Main Refurbishment
Maintain 2,013,000 170,000 177,000 183,000 190,000 197,000 203,000 211,000 219,000 228,000 237,000
Bulk Distribution Waingake Trunk Main Air Valve Renewals
Maintain 478,000 167,000 174,000 138,000
Source Distribution Telem-etry Site Upgrades
Maintain 130,000 25,000 23,000 18,000 25,000 26,000 13,000
Distribution : Pipe renewals [Asbestos Main Replace-ment]
Maintain 3,698,000 331,000 83,000 416,000 190,000 185,000 251,000 434,000 579,000 603,000 627,000
Waipaoa Water Treat-ment Plant : Ultra Violet Treatment Installation
Maintain 290,000 290,000
Distribution: Hospital Hill Chlorine Circulation improvements
Maintain 139,000 35,000 104,000
Water Supply Distribution : Fire-fi ghting Upgrade
Maintain 535,000 136,000 399,000
Bulk Water Distribution : Western Industrial Ring Main
Maintain 1,360,000 1,360,000
Waingake Water Treat-ment Plant : Filter to Waste Facility
Maintain 158,000 158,000
Waingake Water Treat-ment Plant : Backwash Discharge Treatment Issues
Maintain 22,000 22,000
Waingake Water Treat-ment Plant : Seismic Restraints for Chemical Bulk Storage Tanks
Maintain 62,000 62,000
Waipaoa Water Treat-ment Plant : Seismic Restraints for Chemical Bulk Storage Tanks
Maintain 62,000 62,000
Distribution : Water Meter Renewals
Maintain 606,000 28,000 29,000 60,000 62,000 65,000 67,000 69,000 72,000 75,000 78,000
Development Contribu-tions : Construct Knob Hill Booster Station & Reservoir Supply main
Maintain 1,359,000 40,000 624,000 694,000
Water Supply Renewal Programme
Maintain 2,600,000 750,000 600,000 600,000 650,000
Totals: 16,046,000 2,977,000 442,000 1,250,000 1,993,000 1,369,000 1,220,000 1,522,000 1,530,000 1,555,000 2,188,000
The fi nancesThe fi nances Prospective fi nancial statementsProspective fi nancial statements
Financial commentary Financial commentary
Notes to the prospective fi nancial statements Notes to the prospective fi nancial statements
Funding impact statementFunding impact statement
Rating information Rating information
Glossary of terms Glossary of terms
154
IntroductionThe fi nances section includes prospective fi nancial in-formation for Council for the next 10 years. It sets out Council’s priorities and identifi es how Council intends to fund its operations and capital projects.
The forecasts prepared for Council have been prepared based on agreed levels of service for each activity. The levels of service are set out in detail in the Groups of Activities section of the 2012-2022 Draft Ten Year Plan.
The fi nances include:• Prospective Statement of Comprehensive Income• Prospective Statement of Financial Position• Prospective Statement of Changes in Equity• Prospective Statement of Cashfl ows• Prospective Statement Concerning Balanced Budget.
Further detailed information is provided in the Notes to the Prospective Financial Statements which identifi es revenue and expenditure for each group of activities (Note 2) and a full list of capital projects proposed for in the Ten Year Plan (Note 14).
The operational and capital costs within the Ten Year Plan include:
• Existing Costs Costs to continue to deliver the current level of
service.
• Growth Costs Costs to deliver current level of service to a larger
community due to growth.
• Level of Service Changes Costs to deliver an increase in level of service.
• Project Costs Costs such as depreciation and interest that occur
from Council fi nancing capital projects.
• Infl ation Increases in revenue and costs due to price
changes.
155
Th
e F
ina
nce
s
The Nature of the Prospective Financial Information - Cautionary NoteThe prospective fi nancial information contained in the Ten Year Plan is a forecast. It has been prepared on the basis of assumptions as to future events that the Council reasonably expects to occur, associated with the actions it reasonably expects to take at the date the forecast was prepared. The forecast relates to events and actions which have not yet occurred and may not occur. The actual results achieved for the period covered are likely to vary from the fi nancial information presented and the variations may be material. The uncertainty increases as the number of years of prospective fi nancial information increases. Uncontrollable external events will signifi cantly affect the forecast.
The Prospective Statement of Financial Position has been reviewed to incorporate the audited Statement of Financial Position for the year ended 30 June 2011 and the movements per the 2011 - 2012 Annual Plan. This has been adjusted for any material events during the current fi nancial year.
A number of assumptions need to be made about the economic and fi nancial conditions, which will apply over the lifetime of the model. The major assumptions underpinning the Plan are set out in the Signifi cant Assumptions section of the Draft 2012-2022 Ten Year Plan.
Please NoteRevenue from the Grants, Subsidies and Contributions - Capital includes grants received where the associated expenditure will be capitalised. Expenditure relating to these projects will be recognised (primarily as
depreciation) over the life of the capitalised assets. The Gisborne District Council has budgeted for a net surplus in every year of the Draft Ten Year Plan. This is mainly the result of the capital grants and subsidies. Further information is available in the Prospective Statement Concerning Balanced Budget later in this section.
Individual years stated in the tables refer to fi nancial year ending 30 June. For example, '2013' refers to period 1 July 2012 to 30 June 2013.
The fi nancial information contained within the Draft 2012-2022 Ten Year Plan may not be appropriate for purposes other than those described.
156
Prospective Statement of Comprehensive Income for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Revenue
8,341 Grants & Subsidies - Operational 8,295 8,282 8,200 8,356 8,648 8,864 9,116 9,486 9,729 10,007
9,916Grants, Donations, Subsidies and Contributions - Capital
6,989 9,967 15,154 7,760 7,293 14,388 14,758 15,389 7,929 7,867
500 Dividends 784 940 750 750 750 750 750 750 750 750
12,566 Other Revenue 13,572 13,859 14,470 14,865 15,115 15,655 17,716 16,820 18,291 18,417
47,008 Rates 49,073 51,486 54,333 56,827 58,915 60,902 63,429 65,532 67,662 69,762
12Other Gains/(Losses) - Profi t on Sale of Assets
12 12 12 12 12 12 12 12 12 12
129 Interest Received 71 14 14 14 14 14 14 14 14 14
78,472 Total Operating Income 78,796 84,560 92,933 88,584 90,747 100,585 105,795 108,003 104,387 106,829
Expenditure
14,034 Employee Benefi t Expenses 15,187 15,678 16,123 16,525 16,973 17,363 17,762 18,223 18,891 19,382
36,659Expenditure on Operating Activities
38,884 39,824 40,038 41,301 43,471 45,653 47,556 49,937 52,207 54,277
1,278 Overhead Costs 1,304 1,423 1,531 1,490 1,555 1,805 1,814 1,956 2,103 2,155
3,303 Finance Costs 2,746 3,310 3,501 3,497 3,371 3,270 3,203 3,087 2,880 2,588
17,973 Depreciation and Amortisation 19,249 20,143 21,151 22,258 23,168 24,061 24,938 25,892 26,955 27,953
73,917 Total Operating Expenditure 77,370 80,378 82,344 85,071 88,538 92,152 95,273 99,095 103,036 106,355
4,555 NET SURPLUS 1,426 4,182 10,589 3,513 2,209 8,433 10,522 8,908 1,351 474
Other Comprehensive Income
0Gains/(Loss) on Property Revaluation
704 636 677 671 690 708 770 849 870 915
0Total Other Comprehensive Income
704 636 677 671 690 708 770 849 870 915
4,555 TOTAL COMPREHENSIVE INCOME 2,130 4,818 11,266 4,184 2,899 9,141 11,292 9,757 2,221 1,389
Cautionary NotePlease note the Draft Ten Year Plan is forecast information. It is prepared on the basis of best-estimate assumptions as to future events which the Council expects to take place as of July 2012. A number of assumptions need to be made about the economic and fi nancial conditions, which will apply over the lifetime of the model. The major assumptions underpinning the Plan are set out in the Signifi cant Assumptions section.
Prospective Statement of Financial Position for the Year Ended 30 June AP 2012
$0002013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
1,755,180 TOTAL EQUITY 1,800,222 1,805,040 1,816,306 1,820,490 1,823,389 1,832,530 1,843,822 1,853,579 1,855,800 1,857,189
CURRENT ASSETS
8,724 Trade and Other Receivables
12,519 12,684 12,889 13,092 13,317 13,552 13,793 14,039 14,297 14,572
155 Inventories 139 139 139 139 139 139 139 139 139 139
469 Cash and Cash Equivalents
349 349 349 349 349 349 349 349 349 349
1,255 Investments 1,268 1,268 1,268 1,268 1,268 1,268 1,268 1,268 1,268 1,268
0 Non Current Assets Held For Sale
0 0 0 0 0 0 0 0 0 0
10,603 Total Current Assets 14,275 14,440 14,645 14,848 15,073 15,308 15,549 15,795 16,053 16,328
CURRENT LIABILITIES
12,442 Trade and Other Payables
17,499 17,527 17,529 17,564 17,603 17,639 17,683 17,773 17,908 18,026
2,388 Employee Entitlements 2,755 2,789 2,805 2,828 2,850 2,866 2,883 2,903 2,934 2,954
14,830 Total Current Liabilities 20,254 20,316 20,334 20,392 20,453 20,505 20,566 20,676 20,842 20,980
(4,227) Net Working Capital (5,979) (5,876) (5,689) (5,544) (5,380) (5,197) (5,017) (4,881) (4,789) (4,652)
157
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
NON-CURRENT ASSETS
247 Trade and other Receivables
0 0 0 0 0 0 0 0 0 0
20,312 Investments 20,385 20,385 20,385 20,385 20,385 20,385 20,385 20,385 20,385 20,385
1,445 Intangible Assets 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455 1,455
1,022 Biological Assets 1,022 1,022 1,022 1,022 1,022 1,022 1,022 1,022 1,022 1,022
1,779,865 Property Plant and Equipment
1,820,274 1,829,111 1,841,239 1,843,996 1,844,407 1,852,799 1,862,528 1,870,236 1,868,459 1,865,417
1,802,891 Total Non-Current Assets 1,843,136 1,851,973 1,864,101 1,866,858 1,867,269 1,875,661 1,885,390 1,893,098 1,891,321 1,888,279
1,798,664 TOTAL ASSETS 1,837,157 1,846,097 1,858,412 1,861,314 1,862,889 1,870,464 1,880,373 1,888,217 1,886,532 1,883,627
NON-CURRENT LIABILITIES
219 Employee Entitlements 224 224 224 224 224 224 224 224 224 224
863 Non Current Provisions 1,052 1,011 967 924 876 829 785 747 717 695
42,402 Borrowings 35,659 39,822 40,915 39,676 37,400 36,881 35,542 33,667 29,790 25,520
43,484 Total Non-Current Liabilities
36,935 41,057 42,106 40,824 38,500 37,934 36,551 34,638 30,731 26,439
1,755,180Net Funds Employed (Equity)
1,800,222 1,805,040 1,816,306 1,820,490 1,823,389 1,832,530 1,843,822 1,853,579 1,855,800 1,857,189
EQUITY
393,776 Accumulated Surplus 399,362 405,826 417,156 420,848 421,637 427,093 434,184 439,258 439,228 437,631
31,173Special Funds and Other Reserves
29,808 27,526 26,784 26,605 28,025 31,002 34,433 38,266 39,646 41,717
1,330,231Asset Revaluation Reserves
1,371,052 1,371,688 1,372,366 1,373,037 1,373,727 1,374,435 1,375,205 1,376,055 1,376,926 1,377,841
1,755,180 Total Equity 1,800,222 1,805,040 1,816,306 1,820,490 1,823,389 1,832,530 1,843,822 1,853,579 1,855,800 1,857,189
Prospective Statement of Changes in Equity for the Year Ended 30 JuneAP 2012
$0002013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
1,750,626 EQUITY AT START OF YEAR 1,798,092 1,800,222 1,805,040 1,816,306 1,820,490 1,823,389 1,832,530 1,843,822 1,853,579 1,855,800
4,555 Net Surplus for the Year 1,426 4,182 10,589 3,513 2,209 8,433 10,522 8,908 1,351 474
0Increase/(Decrease) in Reserves
704 636 677 671 690 708 770 849 870 915
4,555TOTAL RECOGNISED REVENUES and EXPENSES
2,130 4,818 11,266 4,184 2,899 9,141 11,292 9,757 2,221 1,389
1,755,180 EQUITY AT END OF YEAR 1,800,222 1,805,040 1,816,306 1,820,490 1,823,389 1,832,530 1,843,822 1,853,579 1,855,800 1,857,189
Equity is made up as follows:
393,776Accumulated Funds and Retained Earnings
399,362 405,826 417,156 420,848 421,637 427,093 434,184 439,258 439,228 437,631
31,173 Special Funds & Reserves 29,808 27,526 26,784 26,605 28,025 31,002 34,433 38,266 39,646 41,717
1,330,231 Revaluation Reserves 1,371,052 1,371,688 1,372,366 1,373,037 1,373,727 1,374,435 1,375,205 1,376,055 1,376,926 1,377,841
1,755,180 1,800,222 1,805,040 1,816,306 1,820,490 1,823,389 1,832,530 1,843,822 1,853,579 1,855,800 1,857,189
Note: The closing equity forecast for the 2011/2012 Annual Plan has not been carried forward as the opening equity in the 2013 year.
Council's opening balances have been reviewed to incorporate:1. The audited Financial Statements for the year ended 30 June 2011.2. Movements per the 2011/2012 Annual Plan; and3. Any material events during the current fi nancial year.
158
Prospective Statement of Cashfl ows for the Year Ended 30 JuneAP 2012
$0002013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
CASH FLOW FROM OPERATING ACTIVITIES
Cash provided from:
47,368 Rates 47,883 50,213 52,985 55,354 57,281 59,080 61,376 63,201 64,982 66,714
12,082 Activity Revenue 15,861 13,697 14,245 14,691 14,924 15,444 17,494 16,658 18,148 18,245
500 Dividends 784 940 750 750 750 750 750 750 750 750
129 Interest 71 14 14 14 14 14 14 14 14 14
19,357 Grants and Subsidies 15,283 18,249 23,353 16,116 15,941 23,252 23,874 24,875 17,658 17,875
79,436 79,882 83,113 91,347 86,925 88,910 98,540 103,508 105,498 101,552 103,598
Cash applied to:-
37,463 Suppliers 39,099 39,955 40,213 41,333 43,413 45,653 47,320 49,576 51,610 53,372
14,034 Employee Benefi ts 15,187 15,678 16,123 16,525 16,973 17,363 17,762 18,223 18,891 19,382
3,303 Interest Payable 2,746 3,310 3,501 3,497 3,371 3,270 3,203 3,087 2,880 2,588
54,800 57,032 58,943 59,837 61,355 63,757 66,286 68,285 70,886 73,381 75,342
24,636 Net Cash from Operating Activities 22,850 24,170 31,510 25,570 25,153 32,254 35,223 34,612 28,171 28,256
CASH FLOW FROM INVESTING ACTIVITIES
Cash provided from:-
908 Sale of Property Plant and Equipment 12 12 12 12 12 12 12 12 12 12
0 Sale of Investments 0 0 0 0 0 0 0 0 0 0
908 12 12 12 12 12 12 12 12 12 12
Cash applied to:-
19,262 Purchase of Property Plant and Equipment 21,757 28,345 32,600 24,343 22,889 31,746 33,896 32,749 24,307 23,998
0 Purchase of Investments (100) 0 0 0 0 0 0 0 0 0
19,262 21,657 28,345 32,600 24,343 22,889 31,746 33,896 32,749 24,307 23,998
(18,354) Net Cash from Investing Activities (21,645) (28,333) (32,588) (24,331) (22,877) (31,734) (33,884) (32,737) (24,295) (23,986)
CASH FLOW FROM FINANCING ACTIVITIES
Cash provided from:
0 Proceeds from Loans 0 4,163 1,078 0 0 0 0 0 0 0
0 0 4,234 1,081 0 0 0 0 0 0 0
Cash applied to:-
6,282 Repayment of Loan Principal 1,205 0 0 1,239 2,276 520 1,339 1,875 3,876 4,270
6,262 1,205 0 0 1,239 2,276 520 1,339 1,875 3,876 4,270
(6,282) Net Cash from Financing Activities (1,205) 4,163 1,078 (1,239) (2,276) (520) (1,339) (1,875) (3,876) (4,270)
0 Net Increase/(Decrease) in Cash 0 0 0 0 0 0 0 0 0 0
469 Opening Cash Balance 349 349 349 349 349 349 349 349 349 349
469 Closing Cash Balance 349 349 349 349 349 349 349 349 349 349
159
Financial CommentaryExplanation of Terms used in the Statement of Cash FlowCash and Cash Equivalents is considered to be cash on hand and current accounts in banks, net of bank overdrafts.
Investing activities are those activities relating to the acquisition, holding and disposal of fi xed assets and investments. Investments can include securities not falling within the defi nition of cash.
Financing activities are those activities which result in changes in the size and composition of the capital structure of the Group. This includes both equity and debt not falling within the defi nition of cash.
Operating activities include all transactions and other events that are not investing or fi nancing activities.
The GST (net) component of operating activities refl ects the net GST paid and received with the Inland Revenue Department. The GST component has been presented on a net basis, as the gross amounts do not provide meaningful information for fi nancial statement purposes. The GST rate assumed in these estimates is 15%.
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
78,472 Operating Income 78,796 84,560 92,933 88,584 90,747 100,585 105,795 108,003 104,387 106,829
73,917 Operating Expenditure 77,370 80,378 82,344 85,071 88,538 92,152 95,273 99,095 103,036 106,355
4,555 Operating Surplus 1,426 4,182 10,589 3,513 2,209 8,433 10,522 8,908 1,351 474
LESS
100 Capital Rates Income 422 449 478 510 543 579 617 658 701 741
9,916 Capital Grants and Subsidies 6,989 9,967 15,154 7,760 7,293 14,388 14,758 15,389 7,929 7,867
742Other Capital Grants, Donations and Contribtutions
816 814 817 815 699 699 699 699 658 538
386 Operations funded by Reserve Funds (99) (93) (128) (158) (169) (177) (180) (168) (261) (278)
PLUS
6,839 Depreciation Not Funded 6,304 6,525 6,805 7,074 7,302 7,500 7,786 8,095 8,441 8,745
(250) Increase/(Decrease) in Defi cit 398 430 (1,073) (1,660) (1,145) (444) (2,414) (425) (765) (351)
0Balanced Budget - operating income agrees to operating expenditure
0 0 0 0 0 0 0 0 0 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Activity Group Rates Requirement
Animal Control 0.46% 0.43% 0.42% 0.41% 0.42% 0.45% 0.44% 0.45% 0.45% 0.45%
Arts & Culture 2.24% 2.26% 2.59% 2.87% 2.83% 2.75% 2.68% 2.65% 2.64% 2.42%
Building Services 1.63% 1.63% 1.56% 1.67% 1.62% 1.67% 1.57% 1.64% 1.58% 1.65%
Civil Defence & Emergency Managment 2.11% 2.03% 2.00% 1.94% 1.89% 1.73% 1.75% 1.74% 1.74% 1.74%
Commercial Operations 0.19% 0.20% 0.19% 0.19% 0.16% 0.17% 0.17% 0.17% 0.17% 0.17%
Community Housing 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Community Planning & Development 4.42% 4.29% 4.44% 4.09% 4.10% 4.41% 4.16% 3.99% 4.23% 3.96%
Environmental Health 2.92% 2.85% 2.80% 2.77% 2.77% 2.00% 2.84% 2.86% 2.86% 2.89%
Environmental Policy & Planning 2.50% 2.52% 2.51% 2.48% 2.48% 2.54% 1.89% 2.56% 2.57% 2.60%
Environmental Services 6.05% 5.97% 5.81% 5.62% 5.63% 5.81% 5.78% 5.83% 5.84% 5.91%
Flood Protection 5.14% 5.13% 4.70% 4.72% 4.71% 4.59% 4.53% 4.52% 4.53% 4.53%
Governance 5.04% 4.97% 4.70% 4.86% 5.06% 4.56% 4.38% 4.58% 4.41% 4.44%
Libraries 3.26% 3.27% 3.16% 3.09% 3.10% 3.14% 3.09% 3.09% 3.08% 3.08%
Parks & Open Spaces 9.35% 9.30% 9.39% 9.63% 9.98% 9.50% 10.27% 10.28% 10.45% 10.41%
Pools 2.17% 2.13% 2.07% 2.22% 2.41% 2.26% 2.70% 3.08% 2.81% 2.67%
Prospective Statement Concerning Balanced Budget for the Year Ended 30 June
Schedule of Rates by Activity Group for the 10 Years 2012-2022
160
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Resource Consents 1.87% 1.81% 1.79% 1.76% 1.76% 1.81% 1.79% 1.81% 1.80% 1.83%
Roading 18.29% 17.80% 17.24% 16.23% 16.40% 17.41% 17.69% 17.95% 18.44% 18.59%
Solid Waste 9.47% 9.54% 9.25% 9.95% 10.21% 9.52% 9.00% 8.97% 8.96% 8.96%
Stormwater 5.50% 5.50% 5.21% 5.19% 5.21% 5.21% 5.29% 5.38% 5.26% 5.31%
Support Services -1.17% -1.00% 0.42% 0.76% -0.46% 0.93% 0.45% -1.25% -1.39% -1.21%
Wastewater 14.25% 14.77% 13.73% 13.59% 13.68% 13.56% 13.59% 13.70% 13.55% 13.56%
Water Supply 4.33% 4.61% 6.03% 5.98% 6.04% 5.98% 5.95% 5.99% 6.03% 6.03%
Total rates requirement per year 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Rate Movement
m
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Increase 4.4% 4.9% 5.5% 4.6% 3.7% 3.4% 4.1% 3.3% 3.3% 3.1%
Rates ($m) 49.1 51.5 54.3 56.8 57.9 60.7 63.4 65.5 67.7 69.8
RatesThe budget and rates setting for the Draft Ten Year Plan is a balancing act between the wants and needs of the community and the challenge of rates affordability.
Over the next ten years we expect that the average total rates increase will be between about 3% - 5.5% each year. Beginning 1 July 2012, Council proposes to collect 4.4% more in rates overall. The actual change to your rates will depend on where you live, the value of your property and what services you have access to.
Council has a rates comparison tool on its website www.gdc.govt.nz/rates-comparison-tool/.
In order to balance the rates affordability challenges and continue to provide services to our communities, Council has set the following limits on rates revenue and rates increases for the duration of this draft plan:• Total rates revenue will comprise no more than
70% of Council’s funding requirements. This assumes that Council’s Council Controlled
Organisations (CCOs) and other enterprise operations generate the budgeted level of revenue and provide Council with the agreed level of return to offset rates requirements.
• Total rates increases will not exceed 5% of the total income in any year.
This level of rates limits will enable Council to provide and maintain the existing level of services and to meet limited additional demands.
There can be large movements in some of Council’s rates, especially targeted rates, when services are extended or cyclical expenditure occurs (e.g. Waiapu River fl ood control, Wainui foredune protection). In setting limits on rates Council has also included a level of fl exibility to allow for unforeseen events such as increased Central Government requirements or communities requesting additional services.
Rates make up over 60% of the expected income in the 2013 year. Council funds its services by a variety of rating tools including general rates and an extensive use of targeted rates.
The use of targeted rates provides fl exibility to communities who want additional projects or services (i.e. Coastal erosion protection).
For more information on rates and rates affordability refer to the “Financial Strategy” section.
161
Debt and Interest
3640 41 40 38 37 36 34
3026
m m
BorrowingCouncil uses borrowings to spread the cost of acquiring major assets over time. It spreads the responsibility for funding an activity across both today’s and tomorrow’s ratepayers ensuring that all of those who benefi t make a contribution to the funding of a particular asset (intergenerational equity).
Council’s debt is currently $11 million less than was forecast in the last ten year plan with debt forecast to be $37 million at the beginning of the ten year plan. The borrowings graph shows debt rising to $41 million in 2015. The debt profi le refl ects the ten year plan proposed capital works programme.
Council considers a low to medium level of debt ($18m - $55m) to be fi nancially sustainable over the term of the Ten Year Plan. Council measures the fi nancial sustainability of its debt by the fi nancial ratios and limits set out in the Council’s Treasury Policy. The limits and ratios will not be exceeded during the 2012-2022 period.
162
Capital Expenditure
m
Individual years stated above refer to fi nancial year ending 30 June. For example '2013' is for period 1 July 2012 to 30 June 2013.
Capital ExpenditureOver the term of the Draft Ten Year Plan Council proposes to spend $277 million on capital projects, between $22 - $33 million a year. To maintain Council’s assets, to ensure they provide the same level of service to the community, Council proposes to spend around $18 - $24 million a year on routine/core infrastructure projects. These are the renewals of existing assets that have come to the end of their useful life.
Council now has the capacity and is in a better position to undertake much needed major community infrastructure projects. The major projects have been spread across the term of the Draft Ten Year Plan as Council cannot afford to build them all at once.
Council also anticipates getting external funding to help pay for some of the major community infrastructure projects.
The capital expenditure bar graph shows peaks in expenditure in 2014-2015 and 2018 to 2020. The 2014–2015 peak is due to the HB Williams Memorial Library extension - estimated spend of $3 million and the War Memorial Theatre Upgrade – estimated spend of $7 million. The Olympic Pool upgrade estimated at $30 million is planned to occur between 2018 to 2020. The major projects forecast in the ten year plan are shown below. For more detail on these major projects, the various options and fi nancial implications refer to the major projects section of the draft ten year plan.
163
Notes to the Prospective Financial Statements
NOTE 1: Statement of Accounting Policies
Reporting EntityGisborne District Council (“Council”) is a Unitary Authority governed by the Local Government Act (LGA) 2002.
The Gisborne District Council Group (the “Group”) consists of Gisborne District Council and its subsidiaries, Gisborne Holdings Ltd (100% owned), Tauwhareparae Farms Ltd (100% owned) and Tauwhareparae Forests Ltd (100% owned). All Council subsidiaries are incorporated in New Zealand.
The Council has not presented group prospective fi nancial statements because the Council believes that the parent prospective statements are more relevant to users. The main purpose of the prospective fi nancial statements in the Ten Year Plan is to provide users with information about the core services that the Council intends to provide ratepayers, the expected cost of those services and as a consequence, how much the Council requires by way of rates to fund the intended levels of services. The level of rates funding required is not affected by subsidiaries, except to the extent that the Council obtains distributions from, or further invests in, those subsidiaries. Such effects are included in the prospective fi nancial statements presented.
The primary objective of Council is to provide goods or services for the community or social benefi t rather than making a fi nancial return. Accordingly, Council has designated itself and the Group as Public Benefi t Entities (“PBE”) for the purposes of New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”).
Basis of Preparation of the Forecast Financial InformationThe Council’s prospective fi nancial statements have been prepared in accordance with the requirements of the LGA 2002 which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with Financial Reporting Standard No. 42 (FRS-42) ‘Prospective Financial Statements’.
In September 2011, the External Reporting Board issued a position paper and consultation papers proposing a new external reporting framework for public benefi t entities (PBE). The papers proposed that accounting standards for PBEs would be based on International Public Sector Accounting Standards, modifi ed as necessary. The proposals in these papers do not
provide certainty about any specifi c requirements of future accounting standards. Therefore the accounting policies on which the forecast information for 2012-2022 has been prepared are based on the current New Zealand equivalents to International Financial Reporting Standards.
The prospective fi nancial statements have been prepared on a historical cost basis, modifi ed by the revaluation of certain fi xed assets, forestry assets and certain fi nancial instruments to refl ect fair value.
The prospective fi nancial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($’000). The functional currency of Council is New Zealand dollars.
The Nature of Prospective Financial Information – Cautionary NoteThe prospective fi nancial information contained in the Ten Year Plan is a forecast. It has been prepared on the basis of assumptions as to future events that the Council reasonably expects to take at the date the forecast was prepared. The forecast relates to events and actions which have not yet occurred and may not occur. The actual results achieved for the period covered are likely to vary from the fi nancial information presented and the variations may be material. The uncertainty increases as the number of years of prospective fi nancial information increases. Uncontrollable external events will signifi cantly affect the forecast.
A number of assumptions need to be made about the economic and fi nancial conditions which will apply over the life-time of the model. The major assumptions underpinning the Ten Year Plan are set out in the Signifi cant Assumptions section.
The fi nancial information contained within the Ten Year Plan may not be appropriate for purposes other than those described.
Specifi c Accounting PoliciesThe following specifi c Accounting Policies which materially affect the measurement of fi nancial performance and the fi nancial position have been applied.
Revenue RecognitionRevenue is measured at the fair value of consideration received. The following specifi c recognition criteria must be met before revenue is recognised:
Rates RevenueRates are set annually by a resolution from Council and relate to a fi nancial year. All ratepayers are invoiced within the fi nancial year to which the rates have been set. Rates revenue is recognised when invoices are raised.
164
Government Grants and SubsidiesGovernment grants are initially recognised as income at their fair value where is reasonable assurance that the grant will be received and all attaching conditions will be complied with.
Council receives government subsidy from New Zealand Transport Agency, which subsidises part of Council’s costs in maintaining the local roading infrastructure. The subsidies are recognised as revenue upon entitlement as conditions pertaining to eligible expenditure have been fulfi lled.
Other RevenueRevenue from the rendering of services is recognised, based on the actual service provided on an accrual basis.
Sales of goods are recognised when a product is sold to the customer. Sales are usually in cash or by electronic payment. The recorded revenue is the gross amount of the sale, excluding GST. Interest income is recognised using the effective interest method.
Dividends are recognised when the right to receive payment has been established.
Where a physical asset is acquired for nil or nominal consideration the fair value of the asset received is recognised as revenue. Assets vested in Council are recognised as revenue when control over the asset is obtained.
Borrowing CostsBorrowing costs (except borrowing costs incurred as a result of capital work) are recognised as an expense in the period in which they are incurred.
When the construction of assets are loan funded, all borrowing costs incurred as a result of the capital work are capitalised as part of the total cost of the asset up until the point where the asset enters service.
Grant ExpenditureNon-discretionary grants are those grants that are awarded if the grant application meets the specifi ed criteria and are recognised as expenditure when an application that meets the specifi ed criteria for the grant has been received.
Discretionary grants are those grants where Council has no obligation to award on receipt of the grant application and are recognised as expenditure when a successful applicant has been notifi ed of Council’s decision.
Income TaxIncome tax expense in relation to the surplus or defi cit for the period comprises current tax and deferred tax.
Current tax is the amount of income tax payable based on the taxable profi t for the current year, plus any adjustments to income tax payable in respect of prior years. Current tax is calculated using rates that have been enacted or substantially enacted by balance date.
Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences are differences between the carrying amount of assets and liabilities in the fi nancial statements and the corresponding tax basis used in the computation of taxable profi t.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that taxable profi ts will be available against which the deductible temporary differences or tax losses can be utilised.
Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of an asset and liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting profi t nor taxable profi t.
Deferred tax is recognised on taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where Council can control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised, using tax rates that have been enacted or substantially enacted by balance date.
Current tax and deferred tax is charged or credited to the Prospective Statement of Comprehensive Income except when it relates to items charged or credited directly to equity, in which case the tax is dealt with in equity.
LeasesOperating LeasesAn operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.
Finance LeasesA fi nance lease is a lease that transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred.
165
At the commencement of the lease term, Council recognises fi nance leases as assets and liabilities in the statement of fi nancial position at the lower of the fair value of the leased item or the present value of the minimum lease payments.
The amount recognised as an asset is depreciated over its useful life.
Trade and Other ReceivablesTrade and other receivables are recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for uncollectible amounts.
A provision for impairment of receivables (doubtful debts) is established when there is objective evidence that Council will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash fl ows, discounted using the effective interest method. Non-current receivables are recognised at the present value of their expected future cash fl ows, discounted at the current market rate of return for a similar asset.
InventoriesInventories are recognised at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.The cost of inventories is based on the fi rst-in fi rst-out (FIFO) principle and includes expenditure in acquiring the inventories and bringing them to their existing location and condition.
Financial AssetsCouncil classifi es its fi nancial assets in the following two categories: • Available-for-sale fi nancial assets; and • Loans and receivables.
The classifi cation depends on the purpose for which the assets are held. Management determines the classifi cation of its investments at initial recognition and re-evaluates the designation at every reporting date.
Financial assets and liabilities are initially measured at fair value plus transaction costs unless they are carried at fair value through the Prospective Statement of Comprehensive Income in which case the transaction costs are recognised in the Prospective Statement of Comprehensive Income.
Purchases and sales of investments are recognised on trade-date, the date on which Council commits to purchase or sell the asset.
The fair value of fi nancial instruments traded in active markets is based on quoted market prices at the balance sheet date. The quoted market price is the current bid price. The fair value of fi nancial instruments not traded in an active market is determined using valuation techniques. Council uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date.
Quoted market prices or dealer quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated discounted cash fl ows are used to determine fair value for the remaining fi nancial instruments.
Derecognition of Financial AssetsFinancial assets are derecognised when the rights to receive cash fl ows from the fi nancial assets have expired or have been transferred and Council has transferred substantially all the risks and rewards of ownership.
Council presently has the following categories of fi nancial assets:
a. Loans and ReceivablesLoans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active market. Council’s general and community loans are designated as loans and receivables. They are recognised initially at fair value, and subsequently carried at amortised cost less impairment losses.
Loans to community organisations made by Council at nil, or below-market interest rates are initially recognised at the present value of their expected future cash fl ows, discounted at the current market rate of return for a similar asset/investment. They are subsequently measured at amortised cost using the effective interest method. The difference between the face value and present value of the expected future cash fl ows of the loan is recognised in the Prospective Statement of Comprehensive Income as a grant. Loans to other parties at market rates are measured at amortised cost using the effective interest method. Non-current loans are discounted at the current market rate of return for a similar asset.
b. Available-for-Sale Financial AssetsAvailable-for-sale fi nancial assets are non-derivatives that are either designated in this category or not classifi ed in any of the other categories.
Council’s investments in equity securities are classifi ed as available for sale and are stated at fair value. Gains and losses are recognised directly in equity except for impairment losses, which are recognised in the Prospective Statement of Comprehensive Income.
166
In the event of impairment any cumulative losses previously recognised in equity will be removed and recognised in the Prospective Statement of Comprehensive Income even though the asset has not been derecognised.
Impairment of Financial Assets At each balance sheet date Council assesses whether there is any objective evidence that a fi nancial asset or group of fi nancial assets is impaired. Any impairment losses are recognised in the Prospective Statement of Comprehensive Income.
Accounting for Derivative Financial Instruments and Hedging ActivitiesCouncil uses derivative fi nancial instruments such as interest rate swaps (“hedges”) and forward rate agreements to manage its cash fl ow and interest rate risk. In accordance with its treasury policy, Council does not hold or issue derivative fi nancial instruments for trading purposes.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at each balance date.
Council does not satisfy all the conditions for hedge accounting and therefore all gains or losses in fair value of instruments used to manage cashfl ow and interest rate risk are recognised through the Prospective Statement of Comprehensive Income.
Non-Current Assets Held for SaleNon-current assets held for sale are classifi ed as held for sale if their carrying amount will be recovered principally through a sale transaction, not through continuing use. Assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
Any impairment losses for write-downs of assets held for sale are recognised in the Prospective Statement of Comprehensive Income.
Any increases in fair value (less costs to sell) are recognised up to the level of any impairment losses that have been previously recognised.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classifi ed as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classifi ed as held for sale continue to be recognised.
Property, Plant and EquipmentProperty, Plant and Equipment consists of:
Operational AssetsThese include land, buildings, improvements, library books, wharves, fl oating plant, plant, equipment, and motor vehicles.
Infrastructural Assets Infrastructural assets are the fi xed utility systems owned by Council and comprise the sewer, water, stormwater, roading, fl ood control, and the waste disposal infrastructures. Each asset type includes all items that are required for the network to function, for example, sewer reticulation piping and sewer pump stations.
Biological AssetsForestry Assets Forestry assets consist of the Council’s forestry holdings. Forestry assets are valued on the basis of fair value less estimated point of sale costs. Fair value is determined based on the present value of expected net cash fl ows discounted at a current market determined pre-tax rate. Forestry Assets are revalued annually. Valuation movements pass through the Prospective Statement of Comprehensive Income. The costs to maintain the forestry assets are included in the Prospective Statement of Comprehensive Income.
Pamoa Forest Joint VentureCouncil has transferred forestry rights to Juken New Zealand Limited in respect of a total of 1,608 hectares of land associated with the Pamoa Forest. The transfer relates to one harvest cycle. Under the agreement Council has contributed the land and is entitled to 16.75% of stumpage. All costs of development are borne by Juken New Zealand Limited. The value of the land (excluding the trees) and Council’s right to a share of the stumpage is refl ected in the Statement of Financial Position.
Intangible AssetsIntangible assets predominantly comprise computer software and carbon credits.
Software Acquisition and DevelopmentAcquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specifi c software.
Costs associated with maintaining computer software are recognised as an expense when incurred. Costs that are directly associated with the development of software for internal use or with the acquisition of software licences by Council, are recognised as an intangible asset.
167
AmortisationThe carrying value of an intangible asset with a fi nite life is amortised on a straight line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation is charged to the Prospective Statement of Comprehensive Income on a straight-line basis over the useful life of the asset. Typically, the estimated useful lives of these assets are as follows:• Computer software 3 to 6 years
Emissions Trading SchemeCouncil’s forestry holdings incorporates forestry assets held by Council and its subsidiary, Tauwhareparae Farms Ltd.
Tauwhareparae Farms Ltd (TFL) has voluntarily entered the New Zealand Emissions Trading Scheme (ETS) in respect of 1,138.2 hectares of forest land located in the Tauwhareparae area. This entitles TFL to receive emission units (units) for carbon stored in the specifi ed area from a 1 January 2008 baseline.
Units received are recognised at fair value on the date they are received and subsequently measured at cost subject to impairment. While there are no specifi c conditions attached to units received, should carbon stored in the specifi ed area fall below the amount compensated for, a portion of units received must be returned. Units received are recorded on the Prospective Statement of Financial Position as an intangible asset until it is clear that they will not be required to meet future emissions obligations. The value of units is then recognised in the Prospective Statement of Comprehensive Income. Where there is an obligation to return units this liability is recognised on the Prospective Statement of Financial Position, measured with reference to the carrying value of units on hand. Where there is insuffi cient units on hand to meet the emissions obligation, this is measured by reference to the current market value for units held.
Future cash fl ows associated with units receivable/payable are taken into consideration in determining the valuation of the specifi ed area.
Council’s forestry holdings separate from the subsidiaries holdings, consist of approximately 97 hectares of small woodlots and 1124 hectares held by the Pamoa Forest Joint venture. These forestry blocks were registered with ETS in November 2011. At the time of the Ten Year Plan there was no confi rmation of the number of issued units to the Council and as such no units have been recognised and recorded on the Prospective Statement of Financial Position.
Property, Plant and Equipment ValuationCouncil has elected to use the Public Benefi t Entities exemption to revalue property, plant and equipment on an asset class basis. The results of revaluing are credited or debited to an asset revaluation reserve for that class of asset. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed in the statement of comprehensive income. Any subsequent increase on revaluation that off-sets a previous decrease in value recognised in the Prospective Statement of Comprehensive Income will be recognised fi rst in the Prospective Statement of Comprehensive Income up to the amount previously expensed, and then credited to the revaluation reserve for that class of asset.
AdditionsAdditions between valuations are recorded at cost, except for vested assets. Certain infrastructural assets and land have been vested in Council as part of the subdivision consent process. Vested assets are recognised as revenue when control over the asset is obtained. Vested assets are valued at fair value when received.
Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the Prospective Statement of Comprehensive Income. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to retained earnings.
Subsequent CostsCosts incurred subsequent to the initial acquisition are capitalised only when it is probable that future economic benefi ts or service potential associated with the item will fl ow to Council and the cost of the item can be reliably measured.
Operational Assets ValuationsAll Operational Assets are carried at cost less accumulated depreciation and impairment losses except for:
Operational Land Operational land is valued at fair value and is not depreciated.
Operational Buildings Operational buildings are revalued to optimised depreciated replacement cost and depreciated between valuations. These assets are independently revalued every 3 years, or more frequently when there are indicators that the values may have changed substantially from carrying value.
168
Library Books - General Collections All new and replacement books are capitalised in the year they are purchased and subsequently depreciated based on useful lives. The valuations are performed by the Head librarian and are not subject to independent review because there are readily available market prices to determine fair value.
Library Books – Permanent Collection The permanent collection is carried at deemed cost.
Infrastructure Assets ValuationsInfrastructural AssetsInfrastructural Assets are initially recorded at depreciated replacement cost. Infrastructure assets other than roading are independently valued every 3 years at depreciated replacement costs, unless conditions indicate that carrying value is materially different to fair value, in which case assets are revalued more frequently.
Roading Assets Roading assets are independently revalued annually.
Airport Assets Airport assets include land, buildings, runway aprons, roading and below ground infrastructure. Airport assets are independently valued every 3 years or more frequently when there are indicators that the fair values may have changed substantially from carrying value.
DepreciationDepreciation is provided on a straight-line basis on all fi xed assets other than land, formation of roads and land under roads. The depreciation rates used will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:
INFRASTRUCTURAL ASSETSRoadsPavement Surface (seal) 1 – 20 years Pavement Surface (unsealed) Wearing Course 5 yearsPavement Layers (basecourse) 75 – 100 yearsFormation (not depreciated)Culverts 25 – 50 yearsFootpaths 20 – 75 yearsSurface Water Channels 50 yearsSigns 12 yearsStreet Lights 15 – 25 yearsBridges 25 – 80 yearsRetaining Structures 80 yearsTraffi c Signals 15 yearsParking Meters 25 yearsRailings 10 – 15 yearsSafety Projects 10 – 13 years
Water ReticulationPipes 30 – 165 years Valves, Hydrants 25 yearsPump Stations 15 – 100 yearsDams 400 yearsStructures 16 – 200 years
Sewerage ReticulationPipes 60 – 100 years Manholes 100 yearsPump Stations 15 – 100 yearsTreatment Plant 15 – 50 yearsLaterals 100 years
Stormwater Systems Pipes 62 – 100 years In-drain structures 25 – 100 years
Flood Control Systems 25 – 100 years
Solid Waste 4 – 25 years
Operational AssetsLand (not depreciated)Buildings/Land Improvements 3 – 100 yearsPlant/Machinery/Motor Vehicles 2 – 20 yearsOffi ce Equipment/Furniture 3 – 50 yearsOther Equipment 5 – 25 yearsLibrary Books 1 – 50 yearsWharves 50 yearsFloating Plant 25 yearsLeased Assets 3 - 8 years
Assets Under Construction Assets under construction are valued at cost but they are not depreciated. The total cost of a project is transferred to freehold buildings, plant and equipment or infrastructural assets on its completion and then depreciated.
Impairment of Non Financial AssetsAssets that have a fi nite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
If the recoverable amount of a non-fi nancial asset is less than its carrying amount, the item is written down to its recoverable amount. The write down of an item recorded at cost is recognised as an expense in the Prospective Statement of Comprehensive Income. When a re-valued item is written down to recoverable amount, the write down is recognised as a downward revaluation to the extent of the corresponding revaluation reserve, and any balance recognised in the Prospective Statement of Comprehensive Income.
169
The carrying amount of a non-fi nancial asset that has previously been written down to a recoverable amount is increased to its current recoverable amount if there has been a change in the estimates used to determine the amount of the write down. The increased carrying amount of the item will not exceed the carrying amount that would have been determined if the write down to recoverable amount had not occurred.
Trade and Other PayablesTrade and other payables are non-interest bearing and are normally settled on 30 day terms. Therefore, the carrying value of trade and other payables used in the Prospective Statement of Financial Position approximates their fair value.
Financial Liabilities: BorrowingsBorrowings are initially recognised at their fair value. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.
Employee EntitlementsThe provision for annual leave employee entitlement and other employee benefi ts expected to be settled within 12 months of balance date has been calculated on an actual entitlement basis at current rates of pay while the other provisions have been calculated on future rates of pay, discounted using an appropriate discount rate.
Provision for accumulated sick leave is made only to the extent that it is expected to be used in future periods. The expected usage is assessed using historical average rates of use.
Long Service Leave and Retirement LeaveFor retiring leave and long-service leave not expected to be taken within 12 months of balance date, the liability is equal to the present value of the estimated future cash outfl ows, calculated on an actuarial basis, as a result of employee services provided at balance date.
Superannuation SchemesDefi ned Benefi t SchemeCouncil belongs to the Defi ned Benefi t Plan Contributors Scheme (the scheme), which is managed by the Board of Trustees of the National Provident Fund. The scheme is a multi-employer defi ned benefi t scheme.
Insuffi cient information is available to use defi ned benefi t accounting, as it is not possible to determine from the terms of the scheme, the extent to which the surplus/defi cit will affect future contributions by individual employers, as there is no prescribed basis for allocation. The scheme is therefore accounted for as a defi ned contribution scheme.
ProvisionsProvisions are recognised for future expenditure of uncertain amount or timing when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outfl ow of resources embodying economic benefi ts will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation.
If the time value of money is material, provisions are determined by discounting the expected future cash fl ows at a rate that refl ects current market assessments of the time value of money and, where appropriate, the risks specifi c to the liability.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Prospective Statement of Comprehensive Income net of any reimbursement.
Public EquityThis represents the ratepayer’s net ownership of Council. It is made up of the following components:
- Accumulated Funds - Special Funds and Reserves- Asset Revaluation Reserves
Accumulated FundsComprise accumulated surpluses over the years.
Special Funds and ReservesReserves are a component of public equity and represent a particular use to which parts of equity have been assigned. Reserves may be legally restricted or created by Council.
Special funds are recorded at cost plus accumulated interest. These funds are restricted in nature and can only be used for the special purpose for which they were set up.
Also included are reserves restricted by Council decision. These funds are subject to specifi c conditions accepted as binding by Council which may not be revised by Council without reference to a third party or the Courts.
Asset Revaluation ReserveComprise accumulated revaluations increments or decrements.
Detail on the movement of reserves held by Council (with exception of revaluation reserve) can be found in Note 12.
170
Prospective Statement of Cash FlowsCash fl ows from operating activities are presented using the direct method.
Defi nitions of terms used in the Prospective Statement of Cash Flows:
Operating ActivitiesThese activities include all transactions and events that are not investing or fi nancing activities.
Investing ActivitiesThese comprise those activities relating to the acquisition, holding and disposal of fi xed assets and investments. Investments can include securities not falling within the defi nition of cash.
Financing ActivitiesThese are activities which result in changes in the size and composition of the capital structure of Council; inclusive of both equity and debt not failing within the defi nition of cash.
Cash and Cash EquivalentsThese are considered to be cash on hand and current accounts in banks, net of bank overdrafts.
Changes in Accounting PoliciesThere has been no changes in accounting polices during the Ten Year Plan. All accounting policies have been applied on a consistent basis throughout the years presented.
Critical Accounting Estimates and AssumptionsIn preparing these prospective fi nancial statements Council has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a signifi cant risk of causing a material adjustment to the carrying amounts of assets and liabilities over the next ten years are discussed below.
Estimates and judgements are continually evaluated and are based on historical and other factors, including expectations of future events that are believed to be reasonable under the circumstance.
Landfi ll Post Closure CostsPaokahu As former operator of the Paokahu landfi ll site, Council has an obligation to ensure the ongoing maintenance and monitoring services at this landfi ll site after closure.
A landfi ll aftercare provision has been recognised as a liability in the Prospective Statement of Financial Position. Provision is made for the present value of post closure costs expected to be incurred in restoring the area to its former status. The calculated cost is based on estimates of future site maintenance, supervision and monitoring costs. The estimated length of time needed for post closure care for the Paokahu site is 35 years, from 31 December 2002.
The calculations assume no change in the legislative requirements or technological changes for closure and post closure treatment.
WaiapuAs operator of the Waiapu landfi ll site, Council has an obligation to ensure the ongoing maintenance and monitoring services at this landfi ll site after closure.
A landfi ll aftercare provision has been recognised as a liability in the Prospective Statement of Financial Position. Provision is made for the present value of post closure costs expected to be incurred in restoring the area to its former status. The calculated cost is based on estimates of future site maintenance, supervision and monitoring costs. The estimated length of time needed for post closure care for the Waiapu site is 35 years, from 30 June 2046.
Infrastructural AssetsThere are a number of assumptions and estimates used when performing the depreciated replacement cost valuations in respect of infrastructural assets. These include: • The physical deterioration and condition of asset,
for example, Council could be carrying an asset at an amount that does not refl ect its actual condition.
This is particularly so for those assets which are not visible, for example stormwater, wastewater and water supply pipes that are underground. This risk is minimised by Council performing a combination of physical inspections and condition-modelling assessments of underground assets.
• Estimating any obsolescence or surplus capacity of an asset.
171
• Estimates are made when determining the remaining useful lives over which the asset will be depreciated. These estimates can be impacted by the local conditions, for example, weather patterns and traffi c growth. If useful lives do not refl ect the actual consumption of the benefi ts of the asset, then Council could be over or under estimating the annual depreciation charge recognised as an expense in the Prospective Statement of Comprehensive Income. To minimise this risk, Council’s infrastructural asset’s useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group, and have been adjusted for local conditions based on past experience.
• Asset inspections, deterioration and condition modelling are also carried out regularly as part of Council’s asset management planning activities, which provides Council with further assurance over its useful life estimates.
Experienced independent valuers perform Council’s infrastructural asset revaluations.
GSTThe fi nancial statements have been prepared exclusive of GST with the exception of receivables and payables, which are stated with GST included.
Budget FiguresThe budget fi gures are those approved by Council and published in the Annual Plan. They have been prepared using the same accounting policies as are employed in preparing these fi nancial statements.
Cost AllocationExpenditure has been reported by the nature of the expense.
Capital ManagementCouncil’s capital is its equity (or ratepayers’ funds) which comprise accumulated funds and reserves. Equity is represented by net assets.
The Local Government Act 2002 (the Act) requires Council to manage its revenues, expenses, assets, liabilities, investments and general fi nancial dealings prudently and in a manner that promotes the current and future interests of the community. Ratepayers’ funds are largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments and general fi nancial dealings.
The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Act and applied by Council. Intergenerational equity requires today’s ratepayers to meet the costs of utilising the Council’s assets and not expecting them to meet the full cost of long-term assets that will benefi t ratepayers in future generations. Additionally, Council has in place asset management plans for major classes of assets detailing renewal and maintenance programmes, to ensure that ratepayers in future generations are not required to meet the costs of deferred renewals and maintenance.
The Act requires Council to make adequate and effective provision in its Ten Year Plan (TYP) to meet the expenditure needs identifi ed in those plans. The Act sets out the factors that the Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding area set out in the funding and fi nancial policies in the Council’s TYP.
Please note individual years stated in Disclosure notes tables, refer to fi nancial year ending 30 June. For example '2013' refers to period 1 July 2012 to 30 June 2013.
172
NOTE 2: Prospective Summary of Cost of Services for the Year Ended 30 June 2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Activity Revenue
Animal Control 697 717 739 762 787 812 837 863 893 922
Aquatic and Recreation Facility 575 611 630 651 674 697 720 743 1500 1573
Arts and Culture 112 115 119 123 128 132 136 141 146 151
Building Services 844 871 899 930 962 995 1028 1062 1100 1139
Civil Defence, Emergency Management and Rural Fires
84 86 89 92 95 99 102 105 109 113
Community Housing 875 903 932 964 997 1031 1065 1101 1140 1180
Community Planning and Development
135 137 139 141 143 146 148 151 154 157
Environmental Services 532 471 497 481 497 514 531 486 503 521
Enterprise Operations 2,516 2,563 2,826 2,880 2,834 2,946 4,605 3,288 3,640 3,317
Environmental Health 274 283 292 302 313 323 334 345 358 370
Environmental Policy & Planning 7 7 7 8 8 8 8 9 9 9
Flood Control 167 172 178 184 190 196 203 210 217 225
Governance 12 50 13 13 56 14 14 61 15 16
Roading 9,373 9,428 9,514 9,771 10,030 10,392 10,699 11,029 11,432 11,774
Libraries 137 142 146 151 157 162 167 173 179 185
Reserves and Open Spaces 334 349 360 372 384 398 411 424 440 455
Resource Consents 266 274 283 293 303 313 323 334 346 358
Solid Waste Management 149 149 149 150 150 150 151 151 152 152
Stormwater 0 0 0 0 0 0 0 0 0 0
Support Services 2,092 2,230 2,081 2,125 2,172 2,220 2,267 2,317 2,372 2,428
Wastewater 607 560 489 453 514 480 496 562 530 549
Water Supply 2,131 2,173 2,248 2,338 2,445 2,567 2,663 2,829 2,904 3,069
Total Revenue 21,919 22,291 22,630 23,184 23,839 24,595 26,908 26,384 28,139 28,663
Less Expenditure
Animal Control 922 937 969 998 1032 1085 1118 1160 1195 1238
Aquatic and Recreation Facility 1,640 1,709 1,753 1,800 1,984 2,045 2,432 2,764 3,400 3,434
Arts and Culture 1268 1341 1598 1762 1805 1847 1886 1930 1981 1890
Building Services 1,644 1,709 1,745 1,830 1,867 1,998 2,026 2,137 2,168 2,293
Civil Defence, Emergency Management and Rural Fires
1,018 1,029 1,076 1,092 1,120 1,153 1,215 1,246 1,283 1,327
Community Housing 874 902 931 962 995 1028 1062 1097 1136 1175
Community Planning and Development
2,303 2,343 2,550 2,466 2,558 2,833 2,787 2,765 3,014 2,918
Environmental Services 3,504 3,531 3,644 3,715 3,855 4,053 4,182 4,295 4,442 4,628
Enterprise Operations 2,921 2,938 3,039 3,127 3,242 3,368 3,466 3,568 3,773 3,891
Environmental Health 1,705 1,751 1,815 1,874 1,945 2,042 2,133 2,217 2,294 2,389
Environmental Planning 1,233 1,303 1,372 1,418 1,470 1,555 1,604 1,690 1,748 1,824
Flood Control 2,677 2,801 2,719 2,795 2,889 2,968 3,066 3,165 3,270 3,379
Governance 2,383 2,511 2,469 2,529 2,749 2,754 2,794 3,061 2,998 3,112
Roading 24,128 24,571 25,097 25,991 26,907 28,013 29,053 30,202 31,582 32,703
Libraries 1,736 1,827 1,864 1,905 1,983 2,073 2,125 2,198 2,264 2,334
Reserves and Open Spaces 4,940 5,159 5,479 5,865 6,282 6,708 6,946 7,184 7,536 7,744
Resource Consents 1,182 1,208 1,253 1,294 1,339 1,415 1,457 1,518 1,566 1,633
Solid Waste Management 4,383 4,620 4,705 4,808 4,932 5,144 5,256 5,379 5,521 5,667
Stormwater 2,701 2,831 2,830 2,947 3,068 3,171 3,354 3,526 3,559 3,707
Support Services 1,205 1,392 1,515 1,536 1,487 1,504 1,309 1,252 1,175 1,336
Wastewater 8,049 8,616 8,398 8,625 9,026 9,189 9,566 9,989 10,148 10,459
Water Supply 4,957 5,349 5,523 5,737 6,003 6,207 6,434 6,755 6,985 7,277
Total Expenditure 77,373 80,378 82,344 85,076 88,538 92,153 95,271 99,098 103,038 106,358
Net Cost of Service 55,454 58,087 59,714 61,892 64,699 67,558 68,363 72,714 74,899 77,695
173
NOTE 3: Rates Revenue
2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Gross Rates Revenue 49,073 51,486 54,333 56,827 58,915 60,902 63,429 65,532 67,662 69,762
Gross Rates revenue consists of :
General Rates 3,636 3,750 4,485 5,279 5,172 5,401 5,522 4,813 4,730 4,754
Uniform Annual General Charge
12,553 13,221 13,957 14,688 15,229 15,488 16,105 16,727 17,377 17,793
Targeted Rates 32,884 34,515 35,891 36,860 38,514 40,013 41,802 43,992 45,555 47,215
Gross Rates Revenue 49,073 51,486 54,333 56,827 58,915 60,902 63,429 65,532 67,662 69,762
Less
Remissions 695 727 740 765 792 819 846 874 905 937
Net Rates Revenue 48,378 50,759 53,593 56,062 58,123 60,083 62,583 64,658 66,757 68,825
Council grants rates remissions to certain ratepayers. Council has a number of rates remission policies which include:
- Remission of Rates for Permanent Crops, Whenua Rahui and Community, Sporting and Other Organisations.
NOTE 4: Grants and Subsidies2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Revenue from Grants and Subsidies
Central Government Grants 324 304 182 134 223 133 135 234 140 142
NZ Transport Agency Roading Subsidies
14,072 14,790 14,410 14,931 14,811 15,861 16,349 16,378 17,463 17,684
Other Grants and Subsidies 888 3,156 8,762 1,050 907 7,258 7,390 8,263 55 49
Total Revenue from Grants and Subsidies 15,284 18,249 23,354 16,116 15,941 23,252 23,874 24,875 17,658 17,876
Revenue from grants and subsidies are classifi ed as capital grants where the associated expenditure has been capitalised. Expenditure relating to these projects will be recognised (primarily as depreication) over the life of the assets. The amount of capital grants over the Ten Year Plan is as follows:
Capital Grants 6,989 9,967 15,154 7,760 7,293 14,388 14,758 15,389 7,929 7,867
NOTE 5: Operating Activities Revenue
2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Revenue from Operating Activities
Lease Income 403 434 441 448 477 485 493 504 735 752
Rates Penalties 700 722 745 771 798 825 852 880 912 944
Activity Revenue 61,218 63,854 67,271 70,115 72,384 74,863 79,403 80,558 83,881 86,042
Interest 71 14 14 14 14 14 14 14 14 14
Dividends 784 940 750 750 750 750 750 750 750 750
Petroleum tax 336 347 358 370 383 396 409 422 437 453
Total Revenue from Operating Activities 63,512 66,311 69,579 72,468 74,806 77,333 81,921 83,128 86,729 88,955
174
NOTE 6: Revenue from Other Gains/(Losses)2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Revenue from Other Gains/(losses)
Gain / (Loss) on Disposal of Property Plant and Equipment
12 12 12 12 12 12 12 12 12 12
Total Revenue from Other Gains/(Losses) 12 12 12 12 12 12 12 12 12 12
NOTE 7: Employee Benefi t Expense2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Employee benefi t expense
Salary and Wages 17,221 17,695 18,153 18,608 19,110 19,552 20,001 20,521 21,251 21,805
Defi ned Contribution Plans Expense
397 406 413 424 435 446 456 467 480 493
Less recharged to other expense categories **
(2,431) (2,423) (2,443) (2,507) (2,572) (2,635) (2,695) (2,765) (2,840) (2,916)
Total Employee Benefi t expense 15,187 15,678 16,123 16,525 16,973 17,363 17,762 18,223 18,891 19,382
** Wages and salaries can be recharged to other expense categories, for example capitalised project costs, repairs, cleaning etc.
NOTE 8: Depreciation and Amortisation Expense2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Depreciation and Amortisation Expense by Activity
Aquatic and Recreation Facility 277 291 297 305 314 323 440 495 725 735
Arts and Culture 213 229 266 338 343 347 352 356 358 364
Building Services 3 3 3 3 3 3 3 3 3 3
Civil Defence, Emergency Management and Rural Fires
43 44 47 48 49 50 62 68 68 68
Community Housing 388 399 410 422 434 447 459 472 485 501
Community Planning and Development
0 4 4 4 4 4 4 0 0 0
Environmental Services 21 26 31 37 42 48 54 60 60 59
Enterprise Operations 983 1,020 1,086 1,117 1,154 1,194 1,227 1,254 1,291 1,330
Environmental Health 12 12 12 12 12 12 12 12 12 12
Environmental Policy & Planning 1 1 1 1 1 1 1 1 1 1
Flood Control 152 171 185 189 194 200 206 212 220 228
Governance 2 2 2 2 2 2 2 2 2 2
Land Transport and Parking 9,997 10,343 10,745 11,191 11,583 11,929 12,345 12,828 13,288 13,806
Libraries 307 338 294 295 320 364 383 410 419 434
Reserves and Open Spaces 536 569 677 829 934 1,059 1,096 1,142 1,219 1,254
Solid Waste Management 236 243 250 257 264 354 361 369 377 387
Stormwater 834 868 902 940 976 1014 1061 1106 1146 1191
Support Services 570 617 788 897 964 920 860 864 818 860
Wastewater 2,634 2,794 2,900 3,033 3,148 3,276 3,396 3,540 3,665 3,807
Water Supply 2,043 2,171 2,253 2,340 2,428 2,515 2,614 2,700 2,797 2,911
Total Depreciation and Amortisation Expense 19,249 20,143 21,151 22,258 23,168 24,061 24,938 25,892 26,955 27,953
175
NOTE 9: Expenditure on Operating Activities2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Operating Expenditure
Administration Expenses 1,984 1,963 2,071 2,126 2,448 2,543 2,616 2,715 2,827 2,898
Audit Fees – Annual Report 173 179 184 191 197 204 211 218 225 233
Audit Fees - Ten Year Plan and Ten Year Plan Amendments
0 0 116 0 0 129 0 0 142 0
Consultants and Professional Services
891 893 838 819 859 928 895 955 1,012 999
Elected Members 517 529 542 556 571 584 598 613 630 647
Indirect Employment Costs 146 97 99 102 105 165 110 113 116 119
Grants and Donations 1,115 1,134 1,155 1,177 1,200 1,222 1,244 1,269 1,297 1,325
Insurance Costs 1,273 1,152 1,191 1,233 1,278 1,321 1,365 1,414 1,478 1,535
Rental and operating leases 385 398 411 425 440 455 470 486 504 523
Repairs and Maintenance 3,456 3,606 3,720 3,874 4,010 4,139 4,300 4,451 4,597 4,778
Bad Debts Written Off 278 287 296 306 317 328 339 350 363 375
Bad Debts - Rates write off 1,052 1,086 1,154 1,261 1,408 1,596 1,824 2,095 2,414 2,781
Other Operating Expenditure * 27,614 28,500 28,261 29,231 30,638 32,039 33,584 35,258 36,602 38,064
Total Operating Expenditure 38,884 39,824 40,038 41,301 43,471 45,653 47,556 49,937 52,207 54,277
* Other operating expenses include such items as electricity, operational contracts, treatment plants, pump stations, vegetation planting contracts, facilities contracts and cleaning contracts.
NOTE 10: Finance Costs2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Finance Costs
Interest on Debentures 975 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080
Interest on Bank Borrowings 1,655 2,114 2,305 2,301 2,175 2,074 2,007 1,891 1,684 1,392
Line Fee 116 116 116 116 116 116 116 116 116 116
Total Finance Costs 2,746 3,310 3,501 3,497 3,371 3,270 3,203 3,087 2,880 2,588
NOTE 11: Development Contributions2013$000s
2014$000s
2015$000s
2016$000s
2017$000s
2018$000s
2019$000s
2020$000s
2021$000s
2022$000s
Development Contributions
Reserves & Open Spaces 94 95 94 94 79 79 79 79 79 47
Roading 137 137 138 137 117 117 117 117 117 107
Water Supply 105 103 105 105 91 91 91 91 91 68
Wastewater 322 322 322 322 279 279 279 279 238 211
Stormwater 158 157 158 157 133 133 133 133 133 105
Total Finance Costs 816 814 817 815 699 699 699 699 658 538
176
NOTE 12: Movements in ReservesOpening Balance
2013$000's
Tranfers to Reserves
$000's
Transfers fromReserves
$000's
Closing Balance
2022$000's
Description / Use
Municipal Theatre Project 23 0 0 23 Reserve held as a source of capital funding for the redevelopment theatres.
Library Building 1,651 60 (1,628) 83
Reserve is to hold donations and bequests given in realtion to the HB Williams Memorial Library. These funds can only be utilised in accordance with the donation or bequest.
Waipaoa River Flood Control Scheme
636 180 0 816 Reserve is a funding source for minor and major capital work in relation to the Waipaoa River Flood Control Scheme.
Civil Defence Disaster Relief 459 130 0 589
Reserve is to provide for civil defence emergency costs not covered by government subsidies and for discretionary contributions to other district Civil Defence Disaster Relief activities.
Capital Development Fund 83 1,074 0 1,157 Reserve is to hold proceeds of selected asset sales which are to be utilised for capital developments as determined by Council.
Quarry Rehabilitation 994 290 0 1,284 Reserve is to provide for the restoration and rehabilitation of the Patutahi Quarry.
Olympic Pool Development 25 10 0 35 Reserve is to hold donations and bequests given in relation to the Olypic Pool. Funds will be utilised for the redevelopment of the Olympic Pool complex.
Rates Postponement Fidelity 1 0 0 1 Reserve is to cover rates postponement fi delity issues. The retention of this reserve is a compliance issue.
Reserves Contributions 2,043 370 (1,358) 1,055
Reserve holds reserve contributions received, these contributions have now been replaced by development contributions. Funding is utilised for capital expenditure on Parks and Open Spaces resulting from growth due to developments within the district.
Land Transport - Urban Development Contributions
(145) 1,201 (1,364) (308)
Reserve holds development contributions received in relation to Roading. Funding is utilised for capital expenditure on Land Transport infrastructure resulting from growth due to developments within the district.
Water Supply - Urban Development Contributions
194 754 (2,530) (1,582)
Reserve holds development contributions received in relation to Water Supply. Funding is utilised for capital expenditure on Water Supply infrastructure resulting from growth due to developments within the district.
Wastewater - Urban Development Contributions
203 2,995 (2,225) 973
Reserve holds development contributions received in relation to Wastewater. Funding is utilised for capital expenditure on Wastewater infrastructure resulting from growth due to developments within the district.
Stormwater - Urban Development Contributions
(590) 1,141 (1,738) (1,187)
Reserve holds development contributions received in relation to Stormwater. Funding is utilised for capital expenditure on Stromwater infrastructure resulting from growth due to developments within the district.
Reserves - District Development Contributions
132 952 (778) 306
Reserve holds development contributions received in relation to Parks and Open Spaces. Funding is utilised for capital expenditure on Parks and Open Spaces resulting from growth due to developments within the district.
HMNZ Blackpool Scholarship Fund
6 0 0 6 Reserve holds funds that are distributed in accordance with the trust deed.
Land Subdivision 302 0 0 302
Reserve predates Gisborne District Council. Further investigation is required into what the funds were set aside for. It is likely to relate to Financial Contributions received as a result of subdivision.
Depreciation 22,272 234,497 (218,603) 38,166Reserve holds funds utilised on projects that replace the districts assets.
TOTAL RESERVES 28,289 243,654 (230,224) 41,717
177
NOTE 13: Reconciliation of Funding Impact Statement with Prospective Statement of Comprehensive Income
AP 2012$000
RECONCILIATION OF REVENUE2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022
$000
Sources of operating funding
67,814Total operating funding (A) as per Funding Impact Statement
70,991 73,779 76,962 80,009 82,755 85,498 90,338 91,915 95,800 98,424
Add Sources of capital funding
9,916 Subsidies and grants for capital expenditure 6,989 9,967 15,154 7,760 7,293 14,388 14,758 15,389 7,929 7,867
742 Development and fi nancial contributions 816 814 817 815 699 699 699 699 658 538
0 Lump sum contributions 0 0 0 0 0 0 0 0 0 0
78,472 78,796 84,560 92,933 88,584 90,747 100,585 105,795 108,003 104,387 106,829
78,472As per Prospective Statement of Comprehensive Income - Total Operating Income
78,796 84,560 92,933 88,584 90,747 100,585 105,795 108,003 104,387 106,829
RECONCILIATION OF EXPENDITURE
Applications of operating funding
55,944Total applications of operating funding (B) as per Funding Impact Statement
58,121 60,235 61,193 62,813 65,370 68,091 70,335 73,203 76,081 78,402
17,973Add depreciation and amortisation expense
19,249 20,143 21,151 22,258 23,168 24,061 24,938 25,892 26,955 27,953
73,917 77,370 80,378 82,344 85,071 88,538 92,152 95,273 99,095 103,036 106,355
73,917As per Prospective Statement of Comprehensive Income - Total Operating Expenditure
77,370 80,378 82,344 85,071 88,538 92,152 95,273 99,095 103,036 106,355
RECONCILIATION OF TOTAL COMPREHENSIVE INCOME
11,870 Surplus/(defi cit) of operating funding (A-B) 12,870 13,544 15,769 17,196 17,385 17,407 20,003 18,712 19,719 20,022
9,916Add Subsidies and grants for capital expenditure
6,989 9,967 15,154 7,760 7,293 14,388 14,758 15,389 7,929 7,867
742Add Development and fi nancial contributions
816 814 817 815 699 699 699 699 658 538
(17,973)Add Depreciation and amortisation expense
(19,249) (20,143) (21,151) (22,258) (23,168) (24,061) (24,938) (25,892) (26,955) (27,953)
0Add Gains/(Loss) on Property Revaluation
704 636 677 671 690 708 770 849 870 915
4,555 2,130 4,818 11,266 4,184 2,899 9,141 11,292 9,757 2,221 1,389
4,555As per Prospective Statement of Comprehensive Income - Total Comprehensive Income
2,130 4,818 11,266 4,184 2,899 9,141 11,292 9,757 2,221 1,389
NOTE 14: Capital Expenditure 2012-2022Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
POOLSRedevelopment of Oympic Pool Complex
Increase 30,189,000 10,257,000 9,805,000 10,127,000
Olympic Pool - Replace Therapy Pool Water Heater
Maintain 5,000 5,000
Olympic Pool - Install quality shade sails around Kiosk/BBQ area
Maintain 10,000 10,000
Olympic Pool - repair/replace public address system
Maintain 20,000 20,000
Olympic Pool - Automatic Pool Vacuum Cleaner
Maintain 33,000 7,000 8,000 9,000 9,000
Olympic Pool - Replace shower coin units (4x)
Maintain 4,000 4,000
Olympic Pool - Refurbish/ reseal balance tank
Maintain 13,000 13,000
Olympic Pool - Install quality shade sails at playground
Maintain 15,000 15,000
Olympic Pool - Replace Spa Pool including heater
Maintain 16,000 16,000
178
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Olympic Pool - Assess hydroslide & general rennovation
Maintain 16,000 16,000
Olympic Pool - Assess Canopy Structure and repairs as required
Maintain 39,000 39,000
Renovations of Spa Therapy Pool
Maintain 27,000 13,000 15,000
Dive Pool Tile Renewal, Sealing
Maintain 10,000 10,000
Diving Board Renewals Maintain 27,000 9,000 9,000 9,000
Olympic Pool - Renew Handheld Radios
Maintain 38,000 11,000 13,000 14,000
Olympic Pool - Replace BBQ Facilities
Maintain 12,000 6,000 6,000
Olympic Pool - Infl atable Pool Toy
Maintain 35,000 11,000 12,000 13,000
Totals: 30,509,000 57,000 38,000 56,000 62,000 22,000 10,278,000 9,829,000 10,133,000 27,000 9,000
ARTS & CULTUREWar Memorial Theatre Upgrade
Increase 7,169,000 500,000 1,598,000 5,070,000
Lawson Field Theatre - Renewals
Maintain 274,000 120,000 77,000 55,000 22,000
Totals: 7,443,000 620,000 1,675,000 5,125,000 22,000
COMMUNITY PLANNING & DEVELOPMENTImplementation of Origen Performance Management
Increase 25,000 25,000
Totals: 25,000 25,000
COMMERCIAL OPERATIONSCommercial Property - GVT Facility and Business Improvements
Increase 84,000 11,000 10,000 16,000 11,000 6,000 6,000 6,000 6,000 6,000 7,000
Commercial Property - Municipal Buildings - Carpet Renewal
Maintain 108,000 30,000 31,000 21,000 26,000
Commercial Property - Municipal Buidlings - Earthquake Strengthening
Maintain 3,504,000 190,000 3,261,000 53,000
Commercial Property - Municipal Buildings and Leased Property - Carparks
Maintain 110,000 25,000 26,000 27,000 32,000
Dog Pound Pump Replacement
Maintain 18,000 18,000
Commercial Property - Replace Septic System WINZ Building
Maintain 25,000 25,000
Air Conditioning Replacement (Fitzherbert Street)
Maintain 270,000 270,000
Commercial Property - Te Puia Service Centre Rebuild
Maintain 477,000 477,000
Commercial Property - Waikanae Beach Holiday Park Renewals
Maintain 518,000 80,000 31,000 85,000 33,000 56,000 35,000 59,000 37,000 63,000 39,000
Commercial Property - Leased Property - Banks St Roof
Maintain 144,000 144,000
Commercial Property - Leased Property - Carparks
Maintain 61,000 28,000 33,000
Commercial Property - GVT Equipment Replacement
Maintain 66,000 5,000 50,000 11,000
Commercial Property - Waikanae Beach Holiday Park - Operating Software
Maintain 30,000 30,000
Commercial Property Waikanae BeachHoliday Park - Ride on Mower
Maintain 16,000 16,000
Commercial Property - Waikanae Beach Holiday Park, Facility Refurbishment
Maintain 875,000 80,000 133,000 80,000 139,000 117,000 76,000 48,000 77,000 46,000 79,000
Commercial Property - GVT Carpark Re-sealing
Maintain 31,000 31,000
Commerical Property - Waikanae Beach Holiday Park - Water Heaters
Maintain 32,000 20,000 12,000
Commercial Property - Stock Paddocks
Maintain 68,000 12,000 13,000 14,000 14,000 15,000
179
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Commercial Property - Municipal Buildings - Renewals
Maintain 183,000 16,000 16,000 17,000 17,000 18,000 19,000 19,000 20,000 20,000 21,000
Totals: 6,620,000 524,000 3,695,000 778,000 277,000 250,000 136,000 164,000 410,000 182,000 205,000
FLOOD PROTECTIONFlood Control - Ruatoria Flood Protection, Provide a means of halting/slowing down erosion
Increase 616,000 200,000 416,000
Pump Station Renewals Maintain 260,000 71,000 110,000 62,000 17,000
Tansley Road Drain Maintain 304,000 138,000 166,000
Waipaoa River Flood Control Scheme Bend Protection
Maintain 909,000 446,000 463,000
Taruheru/Turanganui Revetment Phase 2
Maintain 1,133,000 499,000 299,000 335,000
Taruheru Channel Improvements
Maintain 438,000 215,000 223,000
Patutahi Loop Drain Maintain 23,000 23,000
Onepoto Drains Hicks Bay Maintain 75,000 75,000
Totals: 3,758,000 223,000 986,000 325,000 869,000 480,000 374,000 501,000
LIBRARIESLibrary - Building Expansion Increase 3,038,000 200,000 2,838,000
Library - Replace Airconditioning Units
Maintain 26,000 26,000
Library - Furniture : bench and seating for commons area
Maintain 20,000 20,000
Library - PC enable TV & freeview box
Maintain 2,000 2,000
Library - Survellience camera pack
Maintain 2,000 2,000
Library - replace carpet Maintain 104,000 104,000
Library - replace cash register
Maintain 2,000 2,000
Libary - E-books Maintain 47,000 4,000 4,000 4,000 4,000 5,000 5,000 5,000 5,000 5,000 5,000
Renew Intergrated Library Management System
Maintain 114,000 114,000
Replacing Ceiling Baffl es Maintain 32,000 32,000
Library - DVD / CD's / Talking Books
Maintain 116,000 10,000 10,000 11,000 11,000 11,000 12,000 12,000 13,000 13,000 13,000
Library - Covered Way Roof Replacement
Maintain 12,000 12,000
Library Books Maintain 1,572,000 135,000 139,000 144,000 149,000 154,000 159,000 164,000 170,000 176,000 182,000
Library Books ex Book Trust Maintain 233,000 20,000 21,000 21,000 22,000 23,000 24,000 24,000 25,000 26,000 27,000
Totals: 5,320,000 393,000 3,040,000 212,000 198,000 307,000 200,000 205,000 213,000 324,000 227,000
ENVIRONMENTAL SERVICESTelemetry Equipment Maintain 764,000 72,000 74,000 77,000 79,000 82,000 85,000 88,000 67,000 69,000 72,000
Totals: 764,000 72,000 74,000 77,000 79,000 82,000 85,000 88,000 67,000 69,000 72,000
PARKS & OPEN SPACESParks & Reserves - Land Improvements (DC'S)
Growth 296,000 109,000 56,000 131,000
Parks and Reserves - Land Purchases (DC's)
Growth 392,000 392,000
Conveniences Proposed New Toilet (Inner Harbour)
Increase 118,000 118,000
Parks and Reserves - Ruatoria Domain Recreational Reserve (Puawaitange Park)
Increase 112,000 60,000 26,000 26,000
Parks and Reserves - Te Arai Recreation Reserve (Manutuke Park)
Increase 33,000 22,000 11,000
Parks and Reserves - Tokomaru Bay
Increase 66,000 32,000 22,000 12,000
Parks and Reserves - Te Araroa
Increase 64,000 5,000 59,000
Parks and Reserves - Sports Grounds
Increase 430,000 212,000 218,000
Tairawhiti Navigations Project
Increase 9,458,000 100,000 2,212,000 3,230,000 818,000 945,000 266,000 416,000 1,470,000
Parks and Reserves - Matawai
Increase 10,000 10,000
180
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Parks and Reserves - Te Puia and Waipiro
Increase 59,000 5,000 26,000 27,000
Parks and Reserves - Tikitiki & Rangitukia
Increase 50,000 11,000 39,000
Town Entrance - Airport to City
Increase 24,000 24,000
Kaiti Beach Reserve Increase 56,000 10,000 11,000 11,000 12,000 13,000
Parks and Reserves - Makorori Beach Reserve Implementation of Proposed Management Plan
Increase 55,000 11,000 22,000 23,000
Parks and Reserves - Wainui Reserve Carpark
Increase 55,000 55,000
Anzac Park - New Planting Increase 3,000 1,000 1,000 1,000
Parks and Reserves - Nelson Park Upgrade - Carpark and Implement Proposed Management Plan
Increase 119,000 26,000 27,000 11,000 12,000 12,000 31,000
Parks and Reserves - Waihirere Domain Reserve Management Plan
Increase 54,000 29,000 25,000
Parks and Reserves - Waikanae/Midway Beach Reserve Management Plan
Increase 248,000 53,000 55,000 56,000 23,000 24,000 18,000 19,000
Inner Harbour Redevelopment
Increase 3,087,000 309,000 1,091,000 1,688,000
Parks and Reserves - Implementation of Rere Management Plan
Increase 58,000 10,000 11,000 12,000 12,000 13,000
Conveniences - Rural Maintain 206,000 18,000 19,000 19,000 20,000 20,000 21,000 21,000 22,000 23,000 24,000
Conveniences - City/Rural Maintain 630,000 55,000 57,000 58,000 60,000 62,000 64,000 65,000 67,000 70,000 72,000
Conveniences Pit Toilets Maintain 141,000 25,000 26,000 28,000 30,000 32,000
Parks and Reserves - Adventure Playground Recreation Reserve
Maintain 111,000 53,000 58,000
Parks and Reserves - Bridges
Maintain 81,000 14,000 15,000 16,000 17,000 18,000
Parks and Reserves - Buildings
Maintain 343,000 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000
Kapututea Private Reserve - Waipaoa River Mouth
Maintain 53,000 20,000 10,000 11,000 12,000
Parks and Reserves - Hard Surfacing/Paving/Concrete
Maintain 916,000 80,000 82,000 85,000 87,000 90,000 93,000 95,000 98,000 101,000 105,000
Parks and Reserves - Picnic Tables, Furniture and Fountains
Maintain 572,000 50,000 51,000 53,000 55,000 56,000 58,000 59,000 61,000 63,000 65,000
Parks and Reserves - Lighting
Maintain 114,000 10,000 10,000 11,000 11,000 11,000 12,000 12,000 12,000 13,000 13,000
Parks and Reserves - Playground Equipment
Maintain 1,427,000 150,000 103,000 159,000 109,000 169,000 116,000 178,000 123,000 190,000 131,000
Parks and Reserves - Walls/Retaining Sea Walls/Monuments
Maintain 572,000 50,000 51,000 53,000 55,000 56,000 58,000 59,000 61,000 63,000 65,000
Parks and Reserves - Titirangi Recreation Reserve
Maintain 339,000 55,000 26,000 26,000 27,000 51,000 29,000 30,000 31,000 32,000 33,000
Parks and Reserves - Dune Care
Maintain 114,000 10,000 10,000 11,000 11,000 11,000 12,000 12,000 12,000 13,000 13,000
Parks and Reserves - WD Lysnar & Wainui Beach Reserves
Maintain 113,000 20,000 21,000 23,000 24,000 25,000
Parks and Reserves - Neighbourhood Parks Recreational and Local Purpose Reserves
Maintain 229,000 20,000 21,000 21,000 22,000 23,000 23,000 24,000 25,000 25,000 26,000
Cemeteries Capital Renewals
Maintain 104,000 4,000 14,000 4,000 15,000 5,000 16,000 5,000 17,000 5,000 18,000
Cenotaph Earthquake Repairs
Maintain 1,900,000 1,900,000
Parks and Reserves - Jetties and Boat Ramps
Maintain 395,000 70,000 74,000 79,000 83,000 89,000
Parks and Reserves - Management Plans
Maintain 59,000 28,000 6,000 6,000 6,000 6,000 7,000
Parks and Reserves - Alfred Cox Park - Implement Waikanae/Midway Management Plan
Maintain 47,000 29,000 18,000
Parks and Reserves - Civic Reserves Implementation of Management Plan
Maintain 30,000 30,000
181
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Parks and Reserves - Botanical Gardens - Implement Management Plan
Maintain 116,000 21,000 22,000 23,000 25,000 26,000
Parks and Reserves/Sports Grounds Renewals Programme
Maintain 250,000
Totals: 23,459,000 857,000 3,078,000 6,244,000 3,173,000 3,586,000 1,024,000 1,310,000 2,157,000 1,094,000 1,191,000
ROADINGTaruheru Subdivision Road Links (Nelson/Ruth)
Growth 715,000 16,000 699,000
Taruheru Subdivision Road Links (Nelson/Sonrise)
Growth 376,000 13,000 363,000
Bus Shelter Renewals Increase 91,000 21,000 22,000 23,000 25,000
Carpark (Hockey/Inner Harbour)
Increase 453,000 453,000
Drainage renewals - Roading Non Assisted
Increase 696,000 60,000 62,000 64,000 66,000 68,000 70,000 73,000 75,000 78,000 81,000
Midway Beach - Walking and Cycling
Increase 415,000 15,000 15,000 385,000
Awapuni Pedestrian Link - Roading
Increase 280,000 15,000 265,000
Community Transport - Funded Projects (T Funds)
Increase 1,131,000 98,000 101,000 102,000 107,000 111,000 114,000 118,000 122,000 127,000 131,000
Waikanae Beach Walking and Cycling
Increase 235,000 235,000
Taruheru Walking and Cycling
Increase 2,222,000 176,000 187,000 462,000 478,000 452,000 467,000
Kaiti to Wainui Walking & Cycling
Increase 723,000 90,000 633,000
Grey Street - Waikanae Walking & Cycling
Increase 335,000 165,000 170,000
Awapuni Walking & Cycling Increase 94,000 94,000
Minor Improvements Projects
Increase 10,357,000 900,000 900,000 900,000 990,000 1,020,000 1,052,000 1,089,000 1,130,000 1,168,000 1,209,000
Seal Extensions Increase 295,000 52,000 55,000 58,000 63,000 67,000
Pay and Display Parking Meters
Maintain 65,000 65,000
Radio Replacement for Parking Wardens. Roading
Maintain 66,000 26,000 40,000
Traffi c Service Renewals (Renewal of Local Roads)
Maintain 2,830,000 244,000 251,000 259,000 268,000 276,000 285,000 295,000 306,000 317,000 328,000
Parking Meter Renewals Maintain 75,000 36,000 39,000
Unsealed Road Renewals (Renewals of local roads)
Maintain 17,398,000 1,500,000 1,546,000 1,590,000 1,650,000 1,700,000 1,754,000 1,815,000 1,883,000 1,947,000 2,015,000
Drainage Renewals Maintain 8,351,000 720,000 742,000 763,000 792,000 816,000 842,000 871,000 904,000 935,000 967,000
Bridge Renewals (Renewals of local roads)
Maintain 6,959,000 600,000 618,000 636,000 660,000 680,000 701,000 726,000 753,000 779,000 806,000
Bridge Replacements. Heavy Vehicle Bridge strenthening
Maintain 5,402,000 600,000 601,000 617,000 644,000 685,000 709,000 760,000 787,000
Resurfacing of Roads (Renewals of local roads)
Maintain 24,357,000 2,100,000 2,164,000 2,226,000 2,310,000 2,379,000 2,455,000 2,541,000 2,636,000 2,726,000 2,820,000
Footpath Replacement Maintain 1,760,000 50,000 258,000 53,000 275,000 57,000 292,000 61,000 314,000 65,000 336,000
Rehabilitation of Roads (Renewals of local roads)
Maintain 32,836,000 2,831,000 2,917,000 3,001,000 3,114,000 3,208,000 3,309,000 3,426,000 3,553,000 3,675,000 3,802,000
Preventative Maintenance Maintain 2,317,000 200,000 205,000 211,000 220,000 227,000 234,000 242,000 251,000 260,000 269,000
Suburban & Township Upgrades
Maintain 1,648,000 250,000 427,000 283,000 363,000 325,000
Land Transport and Parking Renewals Programme
Maintain 750,000
Totals: 122,482,000 10,573,000 11,413,000 11,250,000 12,346,000 11,635,000 12,336,000 12,807,000 13,228,000 13,992,000 13,658,000
WASTEWATERChrisp Wastewater Drain Growth 37,000 37,000
Wastewater - Upgrade Rising Main and Pump Station for Taruheru Block - Campion
Growth 750,000 73,000 677,000
Localised Urban Upgrades Growth 317,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 34,000 36,000 37,000
Wainui Road Pipeline New Growth 634,000 56,000 579,000
Taruheru Block pumpstation (Moss and/or Cameron)
Growth 452,000 452,000
Taruheru Block Pump Station (Moss and/or Cameron)
Growth 446,000 446,000
182
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Kaiti Wastewater Pipeline Upgrades (2year Annual Rainfall Intensity)
Maintain 3,817,000 291,000 1,731,000 1,795,000
Mangapapa Upgrades (2 yr Annual Rainfall Intensity)
Maintain 3,518,000 266,000 1,598,000 1,654,000
Upgrades (2yr Annual Rainfall Intensity) Remaining areas
Maintain 3,400,000 257,000 1,540,000 1,603,000
SCADA base station Maintain 8,000 8,000
Waste Water Treatment Plant Ultraviolet Installation
Maintain 2,450,000 2,450,000
Te Karaka Telemetry Maintain 56,000 56,000
Wastewater - Pump Station and Telemetry Renewals
Maintain 2,866,000 242,000 251,000 260,000 270,000 280,000 290,000 300,000 311,000 324,000 337,000
Wastewater - Te Karaka Pump Renewals
Maintain 37,000 12,000 12,000 13,000
Wastewater - Pipeline Renewals (new programme)
Maintain 14,209,000 1,200,000 1,247,000 1,290,000 1,338,000 1,388,000 1,436,000 1,487,000 1,543,000 1,607,000 1,673,000
Installation of Permanent Flow Loggers
Maintain 241,000 54,000 58,000 62,000 67,000
Wastewater Renewal Programme
Maintain 1,900,000 500,000 400,000 400,000 600,000
Totals: 33,238,000 3,985,000 1,902,000 4,510,000 3,590,000 2,606,000 3,356,000 4,487,000 2,546,000 3,907,000 4,251,000
STORMWATERLloyd George Rd Stormwater Upgrade
Growth 222,000 31,000 191,000
Upsizing of infastructure to Cater for Additional Growth
Growth 259,000 22,000 23,000 24,000 24,000 25,000 26,000 27,000 28,000 29,000 31,000
Taruheru/Waru/Haisman (Stormwater Catchment)
Growth 589,000 52,000 538,000
Hapara Stream Upgrades Maintain 224,000 32,000 192,000
Te Hapara Suburb Upgrades
Maintain 2,061,000 174,000 928,000 960,000
Stanford Crescent Stormwater Catchment Upgrade
Maintain 346,000 35,000 311,000
Tolaga Bay Stormwater Renewals
Maintain 255,000 255,000
Stormwater Pipelines/Renewals
Maintain 2,191,000 185,000 192,000 199,000 206,000 214,000 221,000 229,000 238,000 248,000 258,000
Stormwater Renewals for Rural Townships
Maintain 1,291,000 109,000 113,000 117,000 122,000 126,000 130,000 135,000 140,000 146,000 152,000
Stormwater In Drain Structures
Maintain 438,000 37,000 38,000 40,000 41,000 43,000 44,000 46,000 48,000 50,000 52,000
Stormwater - Upper Reynolds Drain from Gladstone Rd to Elgin
Maintain 217,000 32,000 185,000
Stormwater Localised Urban Upgrades
Maintain 1,456,000 123,000 128,000 132,000 137,000 142,000 147,000 152,000 158,000 165,000 171,000
Stormwater Mangapapa Stream (Massey/Oswald)
Maintain 195,000 195,000
Stormwater Renewals Programme
Maintain 3,000,000 750,000 750,000 750,000 750,000
Totals: 12,746,000 731,000 578,000 1,500,000 907,000 759,000 1,809,000 2,300,000 1,362,000 1,387,000 1,414,000
SUPPORT SERVICESOzone Enhancements - Information Management Systems
Increase 390,000 50,000 52,000 32,000 33,000 34,000 35,000 37,000 38,000 39,000 40,000
Information Services Contestable Fund
Maintain 1,456,000 125,000 129,000 133,000 138,000 143,000 147,000 152,000 157,000 163,000 169,000
EDRMS Replacement Maintain 841,000 464,000 266,000 110,000
Existing core hardware and software renewals
Maintain 1,416,000 50,000 310,000 277,000 99,000 46,000 47,000 416,000 117,000 54,000
Desktop Virtualisation Server
Maintain 25,000 25,000
Public Art Maintain 320,000 50,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
Turanganui Art Work (consequence of Heinz Wattie)
Maintain 30,000 30,000
Radio Upgrades Maintain 134,000 11,000 11,000 13,000 13,000 13,000 14,000 14,000 14,000 15,000 15,000
Orthophoto Regeneration - Aerial Photography
Maintain 537,000 114,000 423,000
Vehicle Upgrade Replacements
Maintain 2,289,000 200,000 206,000 212,000 218,000 225,000 231,000 238,000 245,000 253,000 261,000
Information Technology Renewals Programme (Finance)
Maintain 500,000 500,000
183
Description LOS Total Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Totals: 7,438,000 541,000 1,202,000 963,000 641,000 1,104,000 504,000 971,000 900,000 1,040,000 570,000
WATER SUPPLYDevelopment Contributions : Taruheru Block Water
Growth 1,346,000 436,000 352,000 558,000
Development Contributions : Local Urban Upgrades
Growth 391,000 94,000 28,000 29,000 30,000 32,000 33,000 34,000 35,000 37,000 38,000
Rural Townships: Te Karaka Water Supply Upgrades
Maintain 493,000 493,000
Rural townships: Whatatutu Water Supply Upgrades
Maintain 306,000 306,000
Bulk Distribution - Waingake Trunk Main Refurbishment
Maintain 2,013,000 170,000 177,000 183,000 190,000 197,000 203,000 211,000 219,000 228,000 237,000
Bulk Distribution Waingake Trunk Main Air Valve Renewals
Maintain 478,000 167,000 174,000 138,000
Source Distribution Telemetry Site Upgrades
Maintain 130,000 25,000 23,000 18,000 25,000 26,000 13,000
Distribution : Pipe renewals [Asbestos Main Replacement]
Maintain 3,698,000 331,000 83,000 416,000 190,000 185,000 251,000 434,000 579,000 603,000 627,000
Waipaoa Water Treatment Plant : Ultra Violet Treatment Installation
Maintain 290,000 290,000
Distribution: Hospital Hill Chlorine Circulation improvements
Maintain 139,000 35,000 104,000
Water Supply Distribution : Fire-fi ghting Upgrade
Maintain 535,000 136,000 399,000
Bulk Water Distribution : Western Industrial Ring Main
Maintain 1,360,000 1,360,000
Waingake Water Treatment Plant : Filter to Waste Facility
Maintain 158,000 158,000
Waingake Water Treatment Plant : Backwash Discharge Treatment Issues
Maintain 22,000 22,000
Waingake Water Treatment Plant : Seismic Restraints for Chemical Bulk Storage Tanks
Maintain 62,000 62,000
Waipaoa Water Treatment Plant : Seismic Restraints for Chemical Bulk Storage Tanks
Maintain 62,000 62,000
Distribution : Water Meter Renewals
Maintain 606,000 28,000 29,000 60,000 62,000 65,000 67,000 69,000 72,000 75,000 78,000
Development Contributions : Construct Knob Hill Booster Station & Reservoir Supply main
Maintain 1,359,000 40,000 624,000 694,000
Water Supply Renewal Programme
Maintain 2600,000 750,000 600,000 6000,000 650,000
Totals: 13,448,000 2,977,000 443,000 1,248,000 1,993,000 1,370,000 1,220,000 1,522,000 1,530,000 1,555,000 2,188,000
COMMUNITY HOUSINGCommercial Property - Staff Housing Upgrades
Maintain 85,000 15,000 16,000 17,000 18,000 19,000
Community Housing - Upgrades
Maintain 1,832,000 160,000 165,000 169,000 175,000 180,000 185,000 190,000 196,000 202,000 209,000
Totals: 1,917,000 175,000 165,000 185,000 175,000 197,000 185,000 208,000 196,000 221,000 209,000
CIVIL DEFENCE & EMERGENCY MANAGMENTCivil Defence Radio System Renewal - Arowhana
Maintain 252,000 8,000 8,000 236,000
NZ Fire Service Radio Upgrade
Maintain 52,000 52,000
Rural Fires Hose packs Maintain 58,000 5,000 5,000 5,000 6,000 6,000 6,000 6,000 6,000 7,000 7,000
Rural Fires Water Tanker (Tolaga Bay)
Maintain 116,000 116,000
Totals: 478,000 5,000 57,000 129,000 14,000 6,000 242,000 6,000 6,000 7,000 7,000
SOLID WASTEWaiapu Landfi ll - Stage 3 Maintain 489,000 489,000
Totals: 489,000 489,000
Grand Total: 267,132,000 21,758,000 28,345,000 32,602,000 24,346,000 22,394,000 31,747,000 31,397,000 30,250,000 22,309,000 21,999,000
184
Funding Impact Statement This statement sets out the information required by Schedule 10 of the Local Government Act 2002, together with additional information provided to assist ratepayers in understanding the indicative impact of the Ten Year Plan.
Revenue and Financing MechanismsGeneral RatesRates directly related to the value of the property, charged on capital value.
Targeted RatesRates which apply in certain areas or to certain ratepayers.
Uniform Annual General Charges A fi xed amount charged to each separately used and inhabited part of a rating unit.
Defi nition of a Separately Used or Inhabited part of a Rating Unit -
Any portion of a rating unit used for a different purpose or inhabited by any person, other than the ratepayer or member of the ratepayers household, having a right to use or inhabit that portion by virtue of a tenancy, lease, license or other agreement.
Interpretation RulesA) Each separate shop or business activity on a rating
unit is a separate use, for which a separate UAGC is payable. (See Guidance Note 1.)
B) Each dwelling, fl at, or additional rentable unit (attached or not attached) on a residential property which is let (or capable of being let) for a substantial part of the year to persons other than immediate family members is a separately inhabited part of a property, and separate UAGCs are payable. (See Guidance Note 2.)
C) Each residential rating unit which has, in addition to a family dwelling unit, one or more non-residential uses (ie home occupation units) will be charged an extra UAGC for each additional use. (See Guidance Note 3.)
D) Each non-residential activity which has, in addition to its business or commercial function, co-sited residential units which are not a prerequisite part of the business or commercial function, will pay additional UAGCs for each residential unit. (See Guidance Note 4.)
E) Individually tenanted fl ats, including retirement units, apartments and town houses (attached or not attached) or multiple dwellings on Māori freehold land are separately inhabited parts, and will each pay a separate UAGC. (See Guidance Note 5.)
F) Each title on a multiple-managed forestry holding (that is, where the forest is broken into several individual small titles) is a separately used part except when one or more titles are adjacent and under the same ownership, in which case the rules of contiguity apply.
G) Each block of land for which a separate title has been issued is liable to pay a UAGC, even if that land is vacant. NOTE: Two or more adjacent blocks of vacant land are not eligible for Remission under “Contiguity” (S.20 of LG(R)A 02) because they are not “used for the same purpose” (ie they are not used at all).
Ra
tes
185
H) Each dwelling, fl at, or additional rentable unit (attached or not attached) on a pastoral, horticultural or forestry property which is let (or capable of being let) for a substantial part of the year to persons other than immediate family members is a separately inhabited part of a property, and separate UAGCs are payable.
I) A substantial part of the year is considered to be three months or more (this total period may be fragmented, and may occur at any part of the rating year).
Guidance NotesThe following Notes are not rules, but are intended to aid Offi cers in the interpretation of the Rules.
1) Commercial Properties• A single building on one title with 24 separate
shops would pay 24 UAGCs.• A motel with an attached dwelling would
pay only one UAGC, because the attached dwelling is essential to the running of the motel. (See rule D above).
• A motel with an attached restaurant which is available to the wider public has two separately used parts, and would pay two UAGCs. Likewise, a motel with an attached Conference Facility would pay an additional UAGC.
• A business which makes part of its income through the leasing of part of its space to semi-passive uses such as billboards, or money machines, is not regarded as having a separately used or inhabited part, and would not be charged a separate UAGC.
• For the avoidance of doubt, an apartment block in which each apartment is on a separately owned title is merely a series of co-sited Rating Units, and each will pay a UAGC.
• If, however, in the above example a management company leases the individual titles for 10 years or more, and those leases are registered on the titles, and the leases stipulate that the management company is responsible for paying the rates, and if the management company then operates the apartments as a single business operation, that business operation may be considered for a remission under Council’s remission policies and have all but one UAGC remitted.
• An apartment block with separate laundry, or restaurant, which are available to the general population as a separate business enterprise, would pay an additional UAGC for each of these functions as separately used parts.
2) Residential Properties• The rule will apply to properties identifi ed as
“fl ats” on the valuation record, administered by Council’s Valuer. Sleep-outs and granny fl ats will generally be identifi ed as “sleep-out” on the valuation record and will not normally qualify for additional UAGCs.
• If a property is identifi ed on the valuation record as having fl ats, but these in fact are used only for family members or for others for very short periods, then the additional UAGCs may be remitted on Council receiving proof of their use, including a signed declaration from the property owner (see remission policies). A property owner who actively advertises the fl ats for accommodation will not qualify for the remission.
186
• A property such as a large house which is identifi ed as being split into, say, three internal fl ats at the time the valuation records were established, but which is not actually used as such, will need to apply for remission under Council’s remission policy. (Note: This property should be referred to Council’s Valuer for correction on the next valuation cycle.)
3) Residential with Non-Residential Part• A residence with a separately accessible
“offi ce” such as may be used for surveyor, architect, or medical services, will pay an additional UAGC for the offi ce, because it is a separately used part which generates additional use of roads, services, planning resources, and democratic processes.
• A residence with a “Home Occupation” (commonly called a “hobby business”) will not generally be charged a separate UAGC unless the intensity of operation is high. For example, a resident who occasionally manufactures boat trailers in his garage on the weekends would not incur an additional UAGC, but someone who works for most of the week panel beating or painting, particularly if the activity is accompanied by advertising, clearly has a separately used or inhabited part of the rating unit, and would incur an additional UAGC.
• A residential property, part of which is used continually for storage of large industrial machinery, has a separately used part, and would incur an additional UAGC.
4) Non-Residential Activity with Co-sited Dwelling• A fi sh and chip shop, with a fl at above which can
be accessed without passing through the shop, does have a separately used part, and would normally incur an additional UAGC charge.
• A dairy which has an integral dwelling attached, would not incur an additional UAGC, because the home is an integral part of the operation of the dairy.
• A boarding house containing a caretaker’s apartment and several separately let rooms (with or without facilities) all within the structure of the one building, is a single (commercial) use and would not incur an additional UAGC. (The same applies to home-stays and bed and breakfast homes).
• Certain government agencies, churches, marae, and the like are automatically rate exempt (except for service charges such as water and wastewater) but if these organisations undertake accommodation or business activities which are not related to their core function, they may be charged rates and additional UAGCs for each separately used or inhabited part of the rating unit.
5) Individually Tenanted Flats• Each fl at, apartment, or retirement or disability
home, and each property under a “licence to occupy”, is a separately used or inhabited part of a rating unit, no matter what number of people may be living in the unit, and each does pay an additional UAGC charge.
• If, because of construction work, poor condition, public health, or specifi c conditions pertaining to the property owner, one or more fl ats cannot be let on the open market, then the unit may be granted a remission under Council’s remission policy. (A specifi c condition pertaining to the property owner might include the use of one of the units for a live-in caregiver). (Note: This property should be referred to Council’s Valuer for correction on the next valuation cycle.)
Other Council’s Funding SourcesSubsidies and Grants From government and non-government organisations to fund maintenance or capital projects.
Fees and ChargesCouncil charges for services provided, eg, building consents, dog licences.
Interest Received and Dividends IncomeFrom funds invested or Council investments.
LoansCouncil borrows money to fund Capital Expenditure.
Capital RatesRates used to repay Loans and Capital Expenditure eg, solid waste loan.
Development ContributionsMoney received to fund capital expenditure for new development.
Asset SalesMoney received from the sale of assets.
ReservesMoney set aside for specifi c purpose, to fund capital expenditure. For further details of Council’s revenue funding mechanisms, please refer to the Revenue and Financing Policy.
187
Funding Impact StatementThe following information is presented solely and for the purpose of clause 5, Schedule 10 of the Local Government Act 2002 and the Local Government (Financial Reporting) Regulations 2011.
These statements are not NZ GAAP compliant. The information presented is incomplete, (in particular it does not include depreciation and internal overheads).
This statement should not be relied upon for any other purpose than compliance with the Local Government (Financial Reporting) Regulations 2011.
On page 175, Note 13 we have provided a reconciliation between Council’s Statement of Comprehensive Income (Page 170) and Council’s Funding Impact Statement.
CouncilFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
18,226 16,889 17,694 19,187 20,734 21,200 21,715 22,481 22,420 23,019 23,489
Targeted Rates (other than a targeted rate for water supply)
29,474 32,884 34,514 35,892 36,864 38,513 40,012 41,800 43,992 45,555 47,217
Subsidies and grants for operating purposes 8,342 8,295 8,282 8,200 8,356 8,648 8,864 9,116 9,486 9,729 10,007
Fees, charges and targeted rates for water supply
10,175 10,872 11,099 11,649 11,977 12,270 12,737 14,723 13,753 15,162 15,320
Interest and dividends from investments 629 855 954 764 764 764 764 764 764 764 764
Local authorities fuel tax, Infringement Fees and other receipts
968 1,196 1,236 1,270 1,314 1,360 1,406 1,454 1,500 1,571 1,627
Total operating funding (A) 67,814 70,991 73,779 76,962 80,009 82,755 85,498 90,338 91,915 95,800 98,424
Applications of operating funding
Payments to staff and suppliers 52,642 55,374 56,925 57,692 59,316 61,999 64,821 67,132 70,116 73,201 75,814
Finance costs 3,302 2,747 3,310 3,501 3,497 3,371 3,270 3,203 3,087 2,880 2,588
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 55,944 58,121 60,235 61,193 62,813 65,370 68,091 70,335 73,203 76,081 78,402
Surplus (defi cit) of operating funding (A-B) 11,870 12,870 13,544 15,769 17,196 17,385 17,407 20,003 18,712 19,719 20,022
Sources of capital funding
Subsidies and grants for capital expenditure 9,916 6,989 9,967 15,154 7,760 7,293 14,388 14,758 15,389 7,929 7,867
Development and fi nancial contributions 742 816 814 817 815 699 699 699 699 658 538
Increase/(decrease) in debt 509 2,204 1,320 1,236 224 (250) 2,847 1,956 (119) (3,678) (3,832)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 11,167 10,009 12,101 17,207 8,799 8,742 17,934 19,913 18,469 6,909 6,573
Applications of capital funding
Capital expenditure
- to meet additional demand 991 1,211 554 2,373 1,363 1,105 1,023 1,151 540 991 1,636
- to improve the level of service 7,462 2,543 9,360 10,166 4,140 4,757 11,271 11,019 12,435 1,818 1,511
- to replace existing assets 13,989 18,004 18,431 20,062 18,842 17,028 19,453 21,727 19,773 21,947 20,852
Increase/ (decrease) in reserves (11,175) (11,328) (15,795) (14,916) (15,037) (14,105) (13,234) (13,367) (13,622) (16,696) (16,685)
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 23,037 22,879 25,645 32,976 25,995 25,627 35,341 39,916 37,181 26,628 26,595
Surplus (defi cit) of capital funding (11,870) (12,870) (13,544) (15,769) (17,196) (17,385) (17,407) (20,003) (18,712) (19,719) (20,022)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
188
Commercial OperationsFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
(403) 94 101 105 106 96 103 106 109 115 118
Targeted Rates (other than a targeted rate for water supply)
0 0 0 0 0 0 0 0 0 0 0
Subsidies and grants for operating purposes
0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
2,540 2,469 2,514 2,776 2,828 2,780 2,890 4,547 3,228 3,579 3,253
Internal charges and overheads recovered
0 1,853 1,930 1,917 1,967 2,026 2,112 2,172 2,235 2,330 2,393
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 47 49 50 52 54 56 58 60 61 64
Total operating funding (A) 2,137 4,463 4,594 4,848 4,953 4,956 5,161 6,883 5,632 6,085 5,828
Applications of operating funding
Payments to staff and suppliers 1,648 2,416 2,451 2,428 2,497 2,573 2,650 2,719 2,800 2,887 2,975
Finance costs 83 134 132 116 100 84 67 50 33 20 9
Internal charges and overheads applied 141 1,241 1,265 1,326 1,380 1,457 1,569 1,642 1,716 1,905 1,970
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 1,872 3,791 3,848 3,870 3,977 4,114 4,286 4,411 4,549 4,812 4,954
Surplus (defi cit) of operating funding (A-B) 265 672 746 978 976 842 875 2,472 1,083 1,273 874
Sources of capital funding
Subsidies and grants for capital expenditure
0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt (51) (189) (222) (206) (224) (224) (224) (224) (232) (137) (137)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) (51) (189) (222) (206) (224) (224) (224) (224) (232) (137) (137)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 120 11 10 16 11 6 6 6 6 6 7
- to replace existing assets 197 513 3,685 761 266 244 129 159 403 177 198
Increase/ (decrease) in reserves (103) (41) (3,171) (5) 475 368 516 2,083 442 953 532
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 214 483 524 772 752 618 651 2,248 851 1,136 737
Surplus (defi cit) of capital funding (265) (672) (746) (978) (976) (842) (875) (2,472) (1,083) (1,273) (874)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
189
Community Planning and ServicesAquatic and Recreation Facilities (Olympic Pool)
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
972 1,065 1,098 1,123 1,259 1,420 1,375 1,712 2,021 1,900 1,861
Targeted Rates (other than a targeted rate for water supply)
0 0 0 0 0 0 0 0 0 0 0
Subsidies and grants for operating purposes
1 1 1 1 1 1 1 1 1 1 1
Fees, charges and targeted rates for water supply
544 570 606 625 646 668 691 714 737 1,476 1,548
Internal charges and overheads recovered
110 328 333 340 354 367 500 858 1,142 1,474 1,457
Local authorities fuel tax, fi nes, infringement fees and other receipts
6 4 4 4 4 5 5 5 5 23 24
Total operating funding (A) 1,633 1,968 2,042 2,093 2,264 2,461 2,572 3,290 3,906 4,874 4,891
Applications of operating funding
Payments to staff and suppliers 1,105 1,201 1,245 1,274 1,316 1,485 1,405 1,449 1,508 1,823 1,889
Finance costs 27 27 28 27 25 23 144 375 593 682 644
Internal charges and overheads applied 341 463 478 495 508 529 673 1,026 1,310 1,644 1,623
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 1,473 1,691 1,751 1,796 1,849 2,037 2,222 2,850 3,411 4,149 4,156
Surplus (defi cit) of operating funding (A-B) 160 277 291 297 415 424 350 440 495 725 735
Sources of capital funding
Subsidies and grants for capital expenditure
41 5 8 0 0 0 6,975 6,667 6,886 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt (17) (18) (15) (23) (22) (24) 3,259 2,952 2,896 (507) (505)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 24 (13) (7) (23) (22) (24) 10,234 9,619 9,782 (507) (505)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 9,232 8,824 9,114 0 0
- to replace existing assets 66 57 39 55 61 22 1,047 1,004 1,019 27 9
Increase/ (decrease) in reserves 118 207 245 219 332 378 305 231 144 191 221
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 184 264 284 274 393 400 10,584 10,059 10,277 218 230
Surplus (defi cit) of capital funding (160) (277) (291) (297) (415) (424) (350) (440) (495) (725) (735)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Arts and CultureFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
362 1,100 1,165 1,407 1,631 1,669 1,675 1,699 1,738 1,784 1,688
Targeted Rates (other than a targeted rate for water supply)
0 0 0 0 0 0 0 0 0 0 0
Subsidies and grants for operating purposes
0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
102 112 115 119 123 128 132 136 141 146 151
Internal charges and overheads recovered 36 63 96 194 341 343 346 349 351 354 356
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 0 0 0 0 0 0 0 0 0 0
Total operating funding (A) 500 1,275 1,376 1,720 2,095 2,140 2,153 2,184 2,230 2,284 2,195
190
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Applications of operating funding
Payments to staff and suppliers 209 922 950 1,091 1,124 1,159 1,192 1,227 1,265 1,307 1,209
Finance costs 19 42 69 144 200 200 200 199 199 199 199
Internal charges and overheads applied 131 154 189 291 441 446 454 457 461 471 474
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 359 1,118 1,208 1,526 1,765 1,805 1,846 1,883 1,925 1,977 1,882
Surplus (defi cit) of operating funding (A-B) 141 157 168 194 330 335 307 301 305 307 313
Sources of capital funding
Subsidies and grants for capital expenditure
2,685 350 1,119 3,549 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 544 147 476 1,518 (3) (3) (3) (3) (3) (3) (3)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 3,229 497 1,595 5,067 (3) (3) (3) (3) (3) (3) (3)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 3,786 500 1,598 5,070 0 0 0 0 0 0 0
- to replace existing assets 0 120 77 55 22 0 0 0 0 0 0
Increase/ (decrease) in reserves (416) 34 88 136 305 332 304 298 302 304 310
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 3,370 654 1,763 5,261 327 332 304 298 302 304 310
Surplus (defi cit) of capital funding (141) (157) (168) (194) (330) (335) (307) (301) (305) (307) (313)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Community HousingFunding Impact Statement for the Year
ended 30 JuneAP 2012
$0002013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
0 0 0 0 0 0 0 0 0 0 0
Targeted Rates (other than a targeted rate for water supply)
0 0 0 0 0 0 0 0 0 0 0
Subsidies and grants for operating purposes
0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
791 875 903 932 964 997 1,031 1,065 1,101 1,140 1,180
Internal charges and overheads recovered
48 69 72 74 78 80 83 85 88 92 95
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 0 0 0 0 0 0 0 0 0 0
Total operating funding (A) 839 944 975 1,006 1,042 1,077 1,114 1,150 1,189 1,232 1,275
Applications of operating funding
Payments to staff and suppliers 314 333 349 365 379 393 406 418 431 444 457
Finance costs 0 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads applied 154 224 226 230 239 248 259 270 282 299 312
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 468 557 575 595 618 641 665 688 713 743 769
Surplus (defi cit) of operating funding (A-B) 371 387 400 411 424 436 449 462 476 489 506
191
Funding Impact Statement for the Year ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 0 0 0 0 0 0 0 0 0 0
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 186 175 165 185 175 197 185 208 196 221 209
Increase/ (decrease) in reserves 185 212 235 226 249 239 264 254 280 268 297
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 371 387 400 411 424 436 449 462 476 489 506
Surplus (defi cit) of capital funding (371) (387) (400) (411) (424) (436) (449) (462) (476) (489) (506)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Community Planning and DevelopmentFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
2,242 1,622 1,655 1,851 1,756 1,834 2,095 2,040 2,005 2,241 2,131
Targeted Rates (other than a targeted rate for water supply)
735 546 551 560 569 581 592 599 609 619 630
Subsidies and grants for operating purposes
146 124 126 127 129 131 133 135 137 140 142
Fees, charges and targeted rates for water supply
1 10 11 11 11 12 12 12 13 13 14
Internal charges and overheads recovered
125 81 84 86 89 92 96 99 102 106 109
Local authorities fuel tax, fi nes, infringement fees and other receipts
1 1 0 1 1 1 1 1 1 1 1
Total operating funding (A) 3,250 2,384 2,427 2,636 2,555 2,651 2,929 2,886 2,867 3,120 3,027
Applications of operating funding
Payments to staff and suppliers 2,783 1,833 1,847 2,023 1,923 1,965 2,197 2,140 2,098 2,332 2,212
Finance costs 1 1 2 2 1 1 1 1 1 0 0
Internal charges and overheads applied 464 550 574 607 627 681 727 741 768 788 815
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 3,248 2,384 2,423 2,632 2,551 2,647 2,925 2,882 2,867 3,120 3,027
Surplus (defi cit) of operating funding (A-B) 2 0 4 4 4 4 4 4 0 0 0
Sources of capital funding
Subsidies and grants for capital expenditure
0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 25 (3) (3) (3) (3) (3) (3) (3) (3) (3)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 25 (3) (3) (3) (3) (3) (3) (3) (3) (3)
192
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 25 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) in reserves 2 0 1 1 1 1 1 1 (3) (3) (3)
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 2 25 1 1 1 1 1 1 (3) (3) (3)
Surplus (defi cit) of capital funding (2) 0 (4) (4) (4) (4) (4) (4) 0 0 0
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
HB Williams Memorial LibraryFunding Impact Statement for the Year ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
1,653 1,599 1,685 1,718 1,754 1,826 1,911 1,958 2,025 2,085 2,149
Targeted Rates (other than a targeted rate for water supply)
0 0 0 0 0 0 0 0 0 0 0
Subsidies and grants for operating purposes
0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
110 122 126 130 134 139 144 149 153 159 165
Internal charges and overheads recovered
194 157 219 329 329 329 331 331 331 333 334
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 15 16 16 17 18 18 18 20 20 20
Total operating funding (A) 1,957 1,893 2,046 2,193 2,234 2,312 2,404 2,456 2,529 2,597 2,668
Applications of operating funding
Payments to staff and suppliers 1,133 1,181 1,177 1,196 1,232 1,270 1,309 1,348 1,392 1,441 1,494
Finance costs 4 7 60 105 100 94 88 82 76 70 64
Internal charges and overheads applied 425 398 471 598 607 628 643 643 651 667 676
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 1,562 1,586 1,708 1,899 1,939 1,992 2,040 2,073 2,119 2,178 2,234
Surplus (defi cit) of operating funding (A-B) 395 307 338 294 295 320 364 383 410 419 434
Sources of capital funding
Subsidies and grants for capital expenditure
20 20 21 21 22 23 24 24 25 26 27
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt (6) 89 1,309 (79) (79) (79) (79) (79) (79) (79) (79)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 14 109 1,330 (58) (57) (56) (55) (55) (54) (53) (52)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 200 2,838 0 0 0 0 0 0 0 0
- to replace existing assets 249 193 202 212 198 307 199 206 213 324 228
Increase/ (decrease) in reserves 160 23 (1,372) 24 40 (43) 110 122 143 42 154
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 409 416 1,668 236 238 264 309 328 356 366 382
Surplus (defi cit) of capital funding (395) (307) (338) (294) (295) (320) (364) (383) (410) (419) (434)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
193
Parks and Open SpacesFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
737 1,120 1,153 1,189 1,234 1,281 1,343 1,379 1,421 1,492 1,532
Targeted Rates (other than a targeted rate for water supply)
2,852 3,466 3,637 3,910 4,238 4,596 4,445 5,133 5,315 5,580 5,732
Subsidies and grants for operating purposes 8 8 8 8 8 8 9 9 9 10 10
Fees, charges and targeted rates for water supply
312 292 305 315 326 337 349 360 372 386 399
Internal charges and overheads recovered 286 349 332 344 359 365 392 401 410 436 443
Local authorities fuel tax, fi nes, infringement fees and other receipts
30 34 35 37 38 39 40 42 43 44 46
Total operating funding (A) 4,225 5,269 5,470 5,803 6,203 6,626 6,578 7,324 7,570 7,948 8,162
Applications of operating funding
Payments to staff and suppliers 2,945 3,567 3,649 3,769 3,901 4,040 4,165 4,309 4,457 4,614 4,784
Finance costs 50 53 85 133 218 344 411 412 412 407 396
Internal charges and overheads applied 907 1,133 1,187 1,244 1,276 1,329 1,465 1,530 1,583 1,732 1,753
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 3,902 4,753 4,921 5,146 5,395 5,713 6,041 6,251 6,452 6,753 6,933
Surplus (defi cit) of operating funding (A-B) 323 516 549 657 808 913 537 1,073 1,118 1,195 1,229
Sources of capital funding
Subsidies and grants for capital expenditure
39 114 2,000 4,842 759 874 249 391 1,341 18 11
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 192 125 581 694 1,579 1,790 17 (3) 14 (142) (163)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 231 239 2,581 5,536 2,338 2,664 266 388 1,355 (124) (152)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 2 0 16 135 68 5 7 13 3 523
- to improve the level of service 278 190 2,558 3,624 2,484 2,775 337 518 1,530 57 13
- to replace existing assets 662 665 521 2,604 553 742 678 785 614 784 655
Increase/ (decrease) in reserves (386) (102) 51 (51) (26) (8) (217) 151 316 227 (114)
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 554 755 3,130 6,193 3,146 3,577 803 1,461 2,473 1,321 1,077
Surplus (defi cit) of capital funding (323) (516) (549) (657) (808) (913) (537) (1,073) (1,118) (1,195) (1,229)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
194
Environmental Policy and ServicesAnimal Control
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
0 0 0 0 0 0 0 0 0 0 0
Targeted Rates (other than a targeted rate for water supply)
110 225 220 230 236 245 273 281 297 302 316
Subsidies and grants for operating purposes
50 50 50 50 50 50 50 50 50 50 50
Fees, charges and targeted rates for water supply
621 568 587 605 626 648 670 692 715 741 767
Internal charges and overheads recovered
0 0 0 0 0 0 0 0 0 0 0
Local authorities fuel tax, fi nes, infringement fees and other receipts
76 79 80 84 86 89 92 95 98 102 105
Total operating funding (A) 857 922 937 969 998 1,032 1,085 1,118 1,160 1,195 1,238
Applications of operating funding
Payments to staff and suppliers 586 575 583 597 612 628 643 658 676 696 714
Finance costs 0 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads applied 236 347 354 372 386 404 442 460 484 499 524
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 822 922 937 969 998 1,032 1,085 1,118 1,160 1,195 1,238
Surplus (defi cit) of operating funding (A-B) 35 0 0 0 0 0 0 0 0 0 0
Sources of capital funding
Subsidies and grants for capital expenditure
0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 0 0 0 0 0 0 0 0 0 0
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) in reserves 35 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 35 0 0 0 0 0 0 0 0 0 0
Surplus (defi cit) of capital funding (35) 0 0 0 0 0 0 0 0 0 0
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Building ServicesFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
742 0 0 0 0 0 0 0 0 0 0
Targeted Rates (other than a targeted rate for water supply)
0 800 838 846 951 956 1,016 998 1,075 1,068 1,154
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
939 844 871 899 930 962 995 1,028 1,062 1,100 1,139
Internal charges and overheads recovered 11 5 5 6 6 6 6 6 7 7 7
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 0 0 0 0 0 0 0 0 0 0
Total operating funding (A) 1,692 1,649 1,714 1,751 1,887 1,924 2,017 2,032 2,144 2,175 2,300
195
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Applications of operating funding
Payments to staff and suppliers 1,031 1,017 1,069 1,070 1,130 1,133 1,193 1,194 1,261 1,266 1,340
Finance costs 1 1 1 1 0 0 0 0 0 0 0
Internal charges and overheads applied 656 628 641 677 703 737 808 835 880 906 957
Other operating funding applications
Total applications of operating funding (B) 1,688 1,646 1,711 1,748 1,833 1,870 2,001 2,029 2,141 2,172 2,297
Surplus (defi cit) of operating funding (A-B) 4 3 3 3 54 54 16 3 3 3 3
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) in reserves 4 2 2 2 53 53 15 2 2 2 2
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 4 2 2 2 53 53 15 2 2 2 2
Surplus (defi cit) of capital funding (4) (3) (3) (3) (54) (54) (16) (3) (3) (3) (3)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Civil Defence and Emergency Management (CDEM)Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
301 348 360 389 391 400 414 454 453 461 476
Targeted Rates (other than a targeted rate for water supply)
585 686 683 698 709 716 640 659 688 713 738
Subsidies and grants for operating purposes 1 1 1 1 1 1 1 1 1 1 1
Fees, charges and targeted rates for water supply
82 75 78 80 83 86 89 91 94 98 101
Internal charges and overheads recovered 8 9 10 10 10 11 11 12 12 12 13
Local authorities fuel tax, fi nes, infringement fees and other receipts
9 8 7 8 8 8 9 9 10 10 10
Total operating funding (A) 986 1,127 1,139 1,186 1,202 1,222 1,164 1,226 1,258 1,295 1,339
Applications of operating funding
Payments to staff and suppliers 664 691 710 747 760 781 807 852 866 893 926
Finance costs 3 3 3 3 2 2 2 2 2 1 1
Internal charges and overheads applied 288 290 282 289 292 299 305 310 322 333 344
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 955 984 995 1,039 1,054 1,082 1,114 1,164 1,190 1,227 1,271
Surplus (defi cit) of operating funding (A-B) 31 143 144 147 148 140 50 62 68 68 68
196
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of capital funding
Subsidies and grants for capital expenditure
0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 (3) (3) (3) (3) (3) (3) (3) (3) (3) (3)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 (3) (3) (3) (3) (3) (3) (3) (3) (3) (3)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 39 5 57 130 14 6 242 6 6 7 7
Increase/ (decrease) in reserves (8) 135 84 14 131 131 (195) 53 59 58 58
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 31 140 141 144 145 137 47 59 65 65 65
Surplus (defi cit) of capital funding (31) (143) (144) (147) (148) (140) (50) (62) (68) (68) (68)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Environmental HealthFunding Impact Statement for the Year
ended 30 JuneAP 2012
$0002013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
1,266 1,381 1,418 1,473 1,522 1,582 1,169 1,749 1,822 1,886 1,969
Targeted Rates (other than a targeted rate for water supply)
0 50 50 50 50 50 50 50 50 50 50
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
260 266 275 283 293 303 314 324 335 347 359
Internal charges and overheads recovered 1,310 1,427 1,464 1,517 1,563 1,620 1,702 1,746 1,811 1,867 1,940
Local authorities fuel tax, fi nes, infringement fees and other receipts
19 8 8 9 9 10 9 10 10 11 11
Total operating funding (A) 2,855 3,132 3,215 3,332 3,437 3,565 3,244 3,879 4,028 4,161 4,329
Applications of operating funding
Payments to staff and suppliers 1,202 1,230 1,259 1,294 1,333 1,375 1,416 1,459 1,508 1,561 1,615
Finance costs 1 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads applied 1,639 1,890 1,944 2,026 2,092 2,178 2,316 2,408 2,508 2,588 2,702
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 2,842 3,120 3,203 3,320 3,425 3,553 3,732 3,867 4,016 4,149 4,317
Surplus (defi cit) of operating funding (A-B) 13 12 12 12 12 12 (488) 12 12 12 12
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 (3) 0 0 0 0 0 0 0 0 0
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 (3) 0 0 0 0 0 0 0 0 0
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) in reserves 13 9 12 12 12 12 (488) 12 12 12 12
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 13 9 12 12 12 12 (488) 12 12 12 12
Surplus (defi cit) of capital funding (13) (12) (12) (12) (12) (12) 488 (12) (12) (12) (12)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
197
Environmental ServicesFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
0 0 0 0 0 0 0 0 0 0 0
Targeted Rates (other than a targeted rate for water supply)
2,708 2,971 3,071 3,159 3,192 3,316 3,539 3,665 3,823 3,954 4,122
Subsidies and grants for operating purposes 25 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
234 491 429 454 436 451 467 482 435 450 466
Internal charges and overheads recovered 2,155 2,149 2,201 2,302 2,375 2,491 2,709 2,806 2,955 3,058 3,204
Local authorities fuel tax, fi nes, infringement fees and other receipts
30 41 42 43 45 46 47 49 51 53 55
Total operating funding (A) 5,152 5,652 5,743 5,958 6,048 6,304 6,762 7,002 7,264 7,515 7,847
Applications of operating funding
Payments to staff and suppliers 2,846 3,141 3,154 3,231 3,283 3,386 3,498 3,603 3,667 3,793 3,936
Finance costs 0 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads applied 2,320 2,491 2,552 2,684 2,770 2,918 3,216 3,331 3,523 3,647 3,837
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 5,166 5,632 5,706 5,915 6,053 6,304 6,714 6,934 7,190 7,440 7,773
Surplus (defi cit) of operating funding (A-B) (14) 20 37 43 (5) 0 48 68 74 75 74
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 0 0 0 0 0 0 0 0 0 0
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 41 72 74 77 79 82 85 88 67 69 72
Increase/ (decrease) in reserves (55) (52) (37) (34) (84) (82) (37) (20) 7 6 2
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) (14) 20 37 43 (5) 0 48 68 74 75 74
Surplus (defi cit) of capital funding 14 (20) (37) (43) 5 0 (48) (68) (74) (75) (74)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Environmental PolicyFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
0 0 0 0 0 0 0 0 0 0 0
Targeted Rates (other than a targeted rate for water supply)
1,114 1,226 1,296 1,365 1,410 1,462 1,547 1,196 1,681 1,739 1,815
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
2 2 2 2 2 2 2 2 2 2 2
Internal charges and overheads recovered 79 97 100 103 107 111 114 118 122 126 131
Local authorities fuel tax, fi nes, infringement fees and other receipts
5 5 5 5 6 6 6 6 7 7 7
Total operating funding (A) 1,200 1,330 1,403 1,475 1,525 1,581 1,669 1,322 1,812 1,874 1,955
198
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Applications of operating funding
Payments to staff and suppliers 884 975 1,042 1,089 1,122 1,156 1,190 1,225 1,266 1,308 1,354
Finance costs 0 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads applied 316 354 360 385 402 424 478 496 545 565 600
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 1,200 1,329 1,402 1,474 1,524 1,580 1,668 1,721 1,811 1,873 1,954
Surplus (defi cit) of operating funding (A-B) 0 1 1 1 1 1 1 (399) 1 1 1
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 0 0 0 0 0 0 0 0 0 0
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) in reserves 0 1 1 1 1 1 1 (399) 1 1 1
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 0 1 1 1 1 1 1 (399) 1 1 1
Surplus (defi cit) of capital funding 0 (1) (1) (1) (1) (1) (1) 399 (1) (1) (1)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Resource ConsentsFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
821 0 0 0 0 0 0 0 0 0 0
Targeted Rates (other than a targeted rate for water supply)
0 916 934 970 1,001 1,036 1,102 1,134 1,184 1,220 1,275
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
206 266 274 283 293 303 313 323 334 346 358
Internal charges and overheads recovered 27 37 38 39 41 42 44 45 47 48 50
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 0 0 0 0 0 0 0 0 0 0
Total operating funding (A) 1,054 1,219 1,246 1,292 1,335 1,381 1,459 1,502 1,565 1,614 1,683
Applications of operating funding
Payments to staff and suppliers 729 874 895 918 943 970 996 1,022 1,053 1,087 1,122
Finance costs 0 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads applied 325 345 351 374 392 411 463 480 512 527 561
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 1,054 1,219 1,246 1,292 1,335 1,381 1,459 1,502 1,565 1,614 1,683
Surplus (defi cit) of operating funding (A-B) 0 0 0 0 0 0 0 0 0 0 0
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 0 0 0 0 0 0 0 0 0 0
199
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) in reserves 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 0 0 0 0 0 0 0 0 0 0 0
Surplus (defi cit) of capital funding 0 0 0 0 0 0 0 0 0 0 0
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Governance and Support ServicesGovernance
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
2,711 2,471 2,561 2,556 2,759 2,982 2,776 2,780 3,000 2,983 3,096
Targeted Rates (other than a targeted rate for water supply)
0 0 0 0 0 0 0 0 0 0 0
Subsidies and grants for operating purposes 0 0 38 0 0 42 0 0 46 0 0
Fees, charges and targeted rates for water supply
12 12 12 13 13 14 14 14 15 15 16
Internal charges and overheads recovered 4 4 4 4 5 5 5 5 5 5 6
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 0 0 0 0 0 0 0 0 0 0
Total operating funding (A) 2,727 2,487 2,615 2,573 2,777 3,043 2,795 2,799 3,066 3,003 3,118
Applications of operating funding
Payments to staff and suppliers 1,324 1,101 1,198 1,123 1,149 1,326 1,278 1,276 1,487 1,367 1,426
Finance costs 0 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads applied 1,371 1,284 1,315 1,348 1,383 1,426 1,479 1,521 1,577 1,634 1,690
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 2,695 2,385 2,513 2,471 2,532 2,752 2,757 2,797 3,064 3,001 3,116
Surplus (defi cit) of operating funding (A-B) 32 102 102 102 245 291 38 2 2 2 2
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 0 0 0 0 0 0 0 0 0 0 0
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 0 0 0 0 0 0 0 0 0 0 0
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 0 0 0 0 0 0
Increase/ (decrease) in reserves 32 102 102 102 245 291 38 2 2 2 2
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 32 102 102 102 245 291 38 2 2 2 2
Surplus (defi cit) of capital funding (32) (102) (102) (102) (245) (291) (38) (2) (2) (2) (2)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
200
Support Services
Funding Impact Statement for the Year Ended 30 June
AP2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
725 127 208 976 1,202 526 1,388 1,136 63 (27) 97
Targeted Rates (other than a targeted rate for water supply)
0 0 0 0 0 0 0 0 0 0 0
Subsidies and grants for operating purposes
0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
1,038 1,006 1,109 925 930 936 942 948 954 960 967
Internal charges and overheads recovered
13,640 13,182 13,815 14,773 15,101 16,037 17,841 18,400 19,331 20,983 21,463
Local authorities fuel tax, fi nes, infringement fees and other receipts
207 386 404 409 422 438 454 469 482 500 518
Total operating funding (A) 15,610 14,701 15,536 17,083 17,655 17,937 20,625 20,953 20,830 22,416 23,045
Applications of operating funding
Payments to staff and suppliers 8,717 8,218 8,505 8,891 9,031 9,578 10,971 11,483 12,120 13,193 13,627
Finance costs 218 (363) (213) (67) (102) (227) (433) (688) (869) (931) (956)
Internal charges and overheads applied 5,566 5,960 6,301 6,678 6,808 7,209 7,886 8,057 8,467 9,075 9,266
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 14,501 13,815 14,593 15,502 15,737 16,560 18,424 18,852 19,718 21,337 21,937
Surplus (defi cit) of operating funding (A-B) 1,109 886 943 1,581 1,918 1,377 2,201 2,101 1,112 1,079 1,108
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 742 816 814 817 815 699 699 699 699 658 538
Increase/(decrease) in debt (278) 211 837 513 112 (87) (104) (171) 230 (126) (217)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 464 1,027 1,651 1,330 927 612 595 528 929 532 321
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 74 50 52 32 33 34 35 37 38 39 40
- to replace existing assets 617 491 1,150 931 608 1,071 470 934 863 1,002 530
Increase/ (decrease) in reserves 882 1,373 1,392 1,948 2,203 1,384 2,291 2,158 1,140 570 859
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 1,573 1,913 2,594 2,911 2,844 2,489 2,796 3,129 2,041 1,611 1,429
Surplus (defi cit) of capital funding (1,109) (886) (943) (1,581) (1,917) (1,377) (2,201) (2,101) (1,112) (1,079) (1,108)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
201
Infrastructure ServicesFlood Protection
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
970 1,135 1,208 1,226 1,289 1,350 1,367 1,391 1,448 1,525 1,561
Targeted Rates (other than a targeted rate for water supply)
1,097 1,385 1,431 1,325 1,395 1,422 1,431 1,482 1,517 1,538 1,597
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
153 156 161 167 172 178 184 190 197 204 211
Internal charges and overheads recovered 68 75 78 80 83 86 89 92 95 98 102
Local authorities fuel tax, fi nes, infringement fees and other receipts
10 11 11 11 12 12 12 13 13 13 14
Total operating funding (A) 2,298 2,762 2,889 2,809 2,951 3,048 3,083 3,168 3,270 3,378 3,485
Applications of operating funding
Payments to staff and suppliers 995 1,458 1,501 1,374 1,445 1,509 1,532 1,612 1,691 1,727 1,826
Finance costs 228 258 293 292 276 259 242 225 208 192 175
Internal charges and overheads applied 931 884 914 948 968 1,013 1,083 1,115 1,149 1,229 1,252
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 2,154 2,600 2,708 2,614 2,689 2,781 2,857 2,952 3,048 3,148 3,253
Surplus (defi cit) of operating funding (A-B) 144 162 181 195 262 267 226 216 222 230 232
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 330 4 211 (225) (225) (225) (225) (225) (225) (225) (219)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 330 4 211 (225) (225) (225) (225) (225) (225) (225) (219)
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 547 200 416 0 0 0 0 0 0 0 0
- to replace existing assets 0 23 569 325 870 480 375 0 0 501 0
Increase/ (decrease) in reserves (73) (57) (593) (355) (833) (438) (374) (9) (3) (496) 13
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 474 166 392 (30) 37 42 1 (9) (3) 5 13
Surplus (defi cit) of capital funding (144) (162) (181) (195) (262) (267) (226) (216) (222) (230) (232)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Land Transport and ParkingFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
1,213 1,341 1,351 1,378 1,431 1,507 1,621 1,708 1,807 1,941 2,022
Targeted Rates (other than a targeted rate for water supply)
7,102 7,635 7,811 7,987 7,789 8,157 8,984 9,515 9,957 10,537 10,950
Subsidies and grants for operating purposes 8,111 7,911 7,918 7,958 8,162 8,365 8,670 8,920 9,192 9,527 9,803
Fees, charges and targeted rates for water supply
567 918 948 978 1,011 1,047 1,082 1,118 1,155 1,197 1,238
Internal charges and overheads recovered 1,145 1,340 1,341 1,343 1,386 1,427 1,473 1,525 1,580 1,635 1,693
Local authorities fuel tax, fi nes, infringement fees and other receipts
560 543 560 578 598 618 640 661 682 707 732
Total operating funding (A) 18,698 19,688 19,929 20,222 20,377 21,121 22,470 23,447 24,373 25,544 26,438
202
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Applications of operating funding
Payments to staff and suppliers 12,857 12,728 12,730 12,758 13,172 13,587 14,046 14,568 15,136 15,699 16,294
Finance costs 234 242 278 290 303 318 334 350 368 387 407
Internal charges and overheads applied 1,930 2,501 2,561 2,647 2,711 2,846 3,177 3,315 3,450 3,843 3,889
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 15,021 15,471 15,569 15,695 16,186 16,751 17,557 18,233 18,954 19,929 20,590
Surplus (defi cit) of operating funding (A-B) 3,677 4,217 4,360 4,527 4,191 4,370 4,913 5,214 5,419 5,615 5,848
Sources of capital funding
Subsidies and grants for capital expenditure 6,871 6,110 6,819 6,401 6,719 6,396 7,140 7,380 7,137 7,885 7,829
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 109 155 157 159 191 203 216 231 248 263 280
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 6,980 6,265 6,976 6,560 6,910 6,599 7,356 7,611 7,385 8,148 8,109
Applications of capital funding
Capital expenditure
- to meet additional demand 284 128 244 129 852 159 215 223 235 594 146
- to improve the level of service 1,606 1,367 1,888 1,424 1,612 1,942 1,661 1,634 1,747 1,716 1,451
- to replace existing assets 10,154 9,078 9,280 9,697 9,882 9,532 10,461 10,949 11,246 11,680 12,059
Increase/ (decrease) in reserves (1,387) (91) (76) (163) (1,245) (664) (68) 19 326 (227) 301
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 10,657 10,482 11,336 11,087 11,101 10,969 12,269 12,825 13,554 13,763 13,957
Surplus (defi cit) of capital funding (3,677) (4,217) (4,360) (4,527) (4,191) (4,370) (4,913) (5,214) (5,419) (5,615) (5,848)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Solid WasteFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
3,657 2,911 3,129 3,193 3,772 4,074 3,802 3,655 3,758 3,875 3,999
Targeted Rates (other than a targeted rate for water supply)
1,491 1,734 1,781 1,831 1,885 1,941 1,999 2,057 2,117 2,185 2,253
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
230 140 140 140 140 140 140 140 140 140 140
Internal charges and overheads recovered 6 45 44 43 47 46 49 53 62 71 80
Local authorities fuel tax, fi nes, infringement fees and other receipts
9 9 9 9 10 10 10 11 11 12 12
Total operating funding (A) 5,393 4,839 5,103 5,216 5,854 6,211 6,000 5,916 6,088 6,283 6,484
Applications of operating funding
Payments to staff and suppliers 3,426 3,435 3,645 3,764 3,903 4,048 4,203 4,362 4,535 4,730 4,930
Finance costs 619 578 597 553 508 478 444 389 330 269 204
Internal charges and overheads applied 728 179 179 181 187 188 192 197 207 216 226
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 4,773 4,192 4,421 4,498 4,598 4,714 4,839 4,948 5,072 5,215 5,360
Surplus (defi cit) of operating funding (A-B) 620 647 682 718 1,256 1,497 1,161 968 1,016 1,068 1,124
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt (180) (542) (570) (599) (631) (175) (724) (762) (803) (846) (893)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) (180) (542) (570) (599) (631) (175) (724) (762) (803) (846) (893)
203
Funding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Applications of capital funding
Capital expenditure
- to meet additional demand 0 0 0 0 0 0 0 0 0 0 0
- to improve the level of service 0 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 0 0 0 0 0 489 0 0 0 0 0
Increase/ (decrease) in reserves 439 105 112 119 625 833 437 206 213 222 231
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 439 105 112 119 625 1,322 437 206 213 222 231
Surplus (defi cit) of capital funding (619) (647) (682) (718) (1,256) (1,497) (1,161) (968) (1,016) (1,068) (1,124)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
Urban Stormwater ServicesFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
227 540 566 566 590 613 634 671 705 712 741
Targeted Rates (other than a targeted rate for water supply)
2,163 2,161 2,265 2,264 2,357 2,455 2,537 2,683 2,821 2,847 2,966
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply
0 0 0 0 0 0 0 0 0 0 0
Internal charges and overheads recovered (1) 2 2 2 2 2 3 3 3 3 3
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 0 0 0 0 0 0 0 0 0 0
Total operating funding (A) 2,389 2,703 2,833 2,832 2,949 3,070 3,174 3,357 3,529 3,562 3,710
Applications of operating funding
Payments to staff and suppliers 1,201 1,409 1,481 1,462 1,559 1,648 1,664 1,758 1,891 1,896 2,061
Finance costs 509 483 500 474 461 445 460 499 486 435 382
Internal charges and overheads applied (101) (23) (16) (6) (11) 1 36 39 46 85 76
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 1,609 1,869 1,965 1,930 2,009 2,094 2,160 2,296 2,423 2,416 2,519
Surplus (defi cit) of operating funding (A-B) 780 834 868 902 940 976 1,014 1,061 1,106 1,146 1,191
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 118 (432) (444) (250) (107) (308) 698 342 (682) (698) (715)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 118 (432) (444) (250) (107) (308) 698 342 (682) (698) (715)
Applications of capital funding
Capital expenditure
- to meet additional demand 318 90 167 829 101 104 108 112 116 121 126
- to improve the level of service 723 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 331 641 411 670 806 655 1,701 2,188 1,246 1,266 1,287
Increase/ (decrease) in reserves (474) (329) (154) (847) (74) (91) (97) (147) (188) (189) (187)
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 898 402 424 652 833 668 1,712 2,153 1,174 1,198 1,226
Surplus (defi cit) of capital funding (780) (834) (868) (902) (940) (976) (1,014) (1,061) (1,106) (1,146) (1,191)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
204
WastewaterFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
31 35 36 37 38 40 42 43 45 46 49
Targeted Rates (other than a targeted rate for water supply)
6,738 6,957 7,570 7,422 7,684 8,022 8,217 8,577 8,932 9,122 9,411
Subsidies and grants for operating purposes 0 200 140 55 5 50 0 0 50 0 0
Fees, charges and targeted rates for water supply
392 402 414 428 442 458 473 489 505 523 541
Internal charges and overheads recovered (44) 29 30 31 32 33 35 36 37 38 40
Local authorities fuel tax, fi nes, infringement fees and other receipts
6 5 6 6 6 6 7 7 7 7 8
Total operating funding (A) 7,123 7,628 8,196 7,979 8,207 8,609 8,774 9,152 9,576 9,736 10,049
Applications of operating funding
Payments to staff and suppliers 3,050 3,969 4,226 3,931 4,055 4,366 4,370 4,620 4,933 4,980 5,244
Finance costs 1,260 1,204 1,341 1,293 1,273 1,226 1,190 1,192 1,144 1,056 980
Internal charges and overheads applied 771 271 285 305 296 319 388 394 409 485 468
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 5,081 5,444 5,852 5,529 5,624 5,911 5,948 6,206 6,486 6,521 6,692
Surplus (defi cit) of operating funding (A-B) 2,042 2,184 2,344 2,450 2,583 2,698 2,826 2,946 3,090 3,215 3,357
Sources of capital funding
Subsidies and grants for capital expenditure 0 0 0 341 0 0 0 296 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt (263) 1,334 (1,009) (267) (283) (973) 3 51 (1,330) (1,025) (1,028)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) (263) 1,334 (1,009) 74 (283) (973) 3 347 (1,330) (1,025) (1,028)
Applications of capital funding
Capital expenditure
- to meet additional demand 280 320 106 892 150 675 285 732 83 176 183
- to improve the level of service 27 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 1,281 3,665 1,796 3,617 3,440 1,931 3,071 3,755 2,463 3,731 4,068
Increase/ (decrease) in reserves 191 (467) (567) (1,985) (1,290) (881) (527) (694) (386) (1,317) (1,322)
Increase/ (decrease) of investments
Total applications of capital funding (D) 1,779 3,518 1,335 2,524 2,300 1,725 2,829 3,793 2,160 2,590 2,929
Surplus (defi cit) of capital funding (2,042) (2,184) (2,344) (2,450) (2,583) (2,698) (2,826) (2,946) (3,090) (3,215) (3,357)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
205
WaterFunding Impact Statement for the Year Ended 30 June
AP 2012$000
2013$000
2014$000
2015$000
2016$000
2017$000
2018$000
2019$000
2020$000
2021$000
2022$000
Sources of operating funding
General Rates,uniform annual general charges, rates penalties
0 0 0 0 0 0 0 0 0 0 0
Targeted Rates (other than a targeted rate for water supply) - Fixed Charge
2,779 2,126 2,376 3,275 3,399 3,558 3,640 3,771 3,926 4,081 4,208
Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0
Fees, charges and targeted rates for water supply - Variable (water-by-meter charge)
1,668 2,131 2,173 2,248 2,338 2,445 2,567 2,663 2,829 2,904 3,069
Internal charges and overheads recovered 247 365 376 389 402 416 430 444 459 475 492
Local authorities fuel tax, fi nes, infringement fees and other receipts
0 0 0 0 0 0 0 0 0 0 0
Total operating funding (A) 4,694 4,622 4,925 5,912 6,139 6,419 6,637 6,878 7,214 7,460 7,769
Applications of operating funding
Payments to staff and suppliers 2,993 3,100 3,259 3,297 3,447 3,623 3,690 3,830 4,075 4,157 4,379
Finance costs 45 77 134 135 132 124 120 115 104 93 83
Internal charges and overheads applied (85) 102 161 227 220 244 312 319 335 413 396
Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0
Total applications of operating funding (B) 2,953 3,279 3,554 3,659 3,799 3,991 4,122 4,264 4,514 4,663 4,858
Surplus (defi cit) of operating funding (A-B) 1,741 1,343 1,371 2,253 2,340 2,428 2,515 2,614 2,700 2,797 2,911
Sources of capital funding
Subsidies and grants for capital expenditure 260 390 0 0 260 0 0 0 0 0 0
Development and fi nancial contributions 0 0 0 0 0 0 0 0 0 0 0
Increase/(decrease) in debt 11 1,302 16 8 (77) (138) 20 (146) (146) (146) (146)
Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0
Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0
Total sources capital funding (C) 271 1,692 16 8 183 (138) 20 (146) (146) (146) (146)
Applications of capital funding
Capital expenditure
- to meet additional demand 109 671 37 507 125 99 410 77 93 97 658
- to improve the level of service 301 0 0 0 0 0 0 0 0 0 0
- to replace existing assets 166 2,306 405 743 1,868 1,270 810 1,445 1,437 1,458 1,530
Increase/ (decrease) in reserves 1,436 58 945 1,011 530 921 1,315 1,696 1,624 1,696 1,227
Increase/ (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0
Total applications of capital funding (D) 2,012 3,035 1,387 2,261 2,523 2,290 2,535 3,218 3,154 3,251 3,415
Surplus (defi cit) of capital funding (1,741) (1,343) (1,371) (2,253) (2,340) (2,428) (2,515) (2,614) (2,700) (2,797) (2,911)
Funding balance ((A-B)+(C-D)) 0 0 0 0 0 0 0 0 0 0 0
2013 Funding Impact Statement ScheduleThe following rates will be set by the Council for the fi nancial year commencing 1 July 2012 and ending 30 June 2013.
All fi gures in the Funding Impact Statement EXCLUDE GST.
Please note: All rate calculations are estimates based on rating information as at 25 January 2012.
206
Funding Source Categories of Rateable LandRating Act Reference
Cat
egor
y (S
ch2)
ss1
4,17
Fact
ors
(Sch
3)
$ Value excl GST per factor s18 & Sch 3
Revenue Sought Excludes
GST 2012/2013 $
Note: In the rating defi nitions below, differential rating areas such as DRA1, DRA2 etc and Inner and Outer Zones are defi ned. In accordance with the system of Differential Rating established by Special Order on 27 June 1991. The District was split into six (6) differential areas. Except for DRA5 these areas were established on 27 June 1991 and maps detailing the boundaries are available at Council's Administrative Offi ces, Fitzherbert Street Gisborne. DRA4 was split into two areas, a new DRA5 and residual DRA4 by way of a Special Order on 16 May 2001. They are as follows:
Short Title Areas Covered Sub types
DRA1 Former Gisborne City Council boundaries, excluding Rural Farm Land. ResidentialCommercial & Other
DRA1A All Rural Farm Land within the previous Gisborne City Boundaries and the area surrounding the City City including Wainui and Makaraka.
Residential & OtherCommercial & Industrial
DRA2 Poverty Bay Flats including fringe hill properties.
DRA3 That area which is within reasonable and currently exercised commuting distance to Gisborne, including part Waerenga-o-kuri and Ngatapa, Whatatutu and Te Karaka.
All Other PropertiesRural Townships
DRA4 The inland rural area beyond DRA3, up to the boundary of DRA5. Tolaga Bay and Matawai
All Other PropertiesRural Townships
DRA5 The whole of the East Cape area from a line running inland from a point in the vicinity of Mangatuna north of Tolaga Bay Township, to the tip of the East Cape.Hicks Bay, Te Araroa, Tikitiki, Ruatoria, Waipiro Bay, Te Puia Springs and Tokomaru Bay.
All Other Properties
Rural Townships
Inner Zone The total land area of DRA1 and DRA1A and DRA2. Urban and Rural
Outer Zone The total land area of DRA3 and DRA4 and DRA5. Rural & Rural Townships
General Rates
A general rate based on the capital value of each rating unit in the district. The general rate will be set on a differential basis based on the following categories of Land:
General Differentiated
Urban Inner Zone 13(2)(b) 1&2 2 $0.00050489 per $ of Capital Value 2,057,718
Rural Inner Zone 13(2)(b) 1&2 2 $0.00050489 per $ of Capital Value 618,451
Rural Outer Zone 13(2)(b) 1&2 2 $0.00035166 per $ of Capital Value 883,912
Rural Townships Outer Zone 13(2)(b) 1&2 2 $0.00035166 per $ of Capital Value 76,309
Council will be using a Uniform Annual General Charge.
Uniform Annual General Charge
All Rateable land 15(1)(b)$595.48 per Separately Used or Inhabited Part of a Rating Unit (SUIP) see defi nition of SUIP
12,534,853
Targeted Rates:
Roading
Residential/Lifestyle Blocks 16(4)(b) 1&2 2 $0.00063198 per $ of Capital Value 3,108,381
Horticulture & Pastoral Farming 16(4)(b) 1&2 2 $0.00094797 per $ of Capital Value 2,053,896
Commercial 16(4)(b) 1&2 2 $0.00126396 per $ of Capital Value 331,049
Forestry 16(4)(b) 1&2 2 $0.00252800 per $ of Capital Value 847,999
Industrial 16(4)(b) 1&2 2 $0.00126396 per $ of Capital Value 439,725
Roading - Flood Damage &Emergency Works
DRA1 16(4)(b) 1&2 2 $0.00002454 per $ of Capital Value 84,518
DRA1A 16(4)(b) 1&2 2 $0.00002454 per $ of Capital Value 15,482
DRA2 16(4)(b) 1&2 2 $0.00002041 per $ of Capital Value 25,000
DRA3 16(4)(b) 1&2 2 $0.00013740 per $ of Capital Value 107,879
DRA4 16(4)(b) 1&2 2 $0.00013740 per $ of Capital Value 169,740
DRA5 16(4)(b) 1&2 2 $0.00013740 per $ of Capital Value 97,381
District Loan Expenses
DRA1 Residential & Other 16(4)(b) 6 2 $0.00000071 per $ of Capital Value 2,064
DRA1 Commercial 16(4)(b) 6 2 $0.00000091 per $ of Capital Value 472
DRA1A Residential 16(4)(b) 6 2 $0.00000202 per $ of Capital Value 1,234
DRA1A Commercial 16(4)(b) 6 2 $0.00000168 per $ of Capital Value 34
DRA2 16(4)(b) 6 2 $0.00002122 per $ of Capital Value 25,999
DRA3 All Other Properties 16(4)(b) 6 2 $0.00000083 per $ of Capital Value 629
DRA3 Rural Townships 16(4)(b) 6 2 $0.00000020 per $ of Capital Value 5
DRA4 All Other Properties 16(4)(b) 6 2 $0.00000072 per $ of Capital Value 836
DRA4 Rural Townships 16(4)(b) 6 2 $0.00000019 per $ of Capital Value 14
DRA5 All Other Properties 16(4)(b) 6 2 $0.00000065 per $ of Capital Value 380
DRA5 Rural Townships 16(4)(b) 6 2 $0.00000031 per $ of Capital Value 38
207
Funding Source Categories of Rateable Land
Ratin
g A
ct
Refe
renc
e
Cat
egor
y (S
ch2)
ss1
4, 1
7
Factors (Sch 3)
$ Value Excluding GST per Factors18 and Sch 3
Revenue Sought
Excludes GST
2012/2013 $
Non Subsidised Roading
DRA1& 1A 16(4)(b) 6 2 $0.00001892 per $ of Capital Value 77,119
DRA's 2,3,4 & 5 16(4)(b) 6 2 $0.00000258 per $ of Capital Value 9,640
DRA's 3,4 & 5 Rural townships 16(4)(b) 6 2 $0.00004833 per $ of Capital Value 9,640
Building ServicesInner Zone 16(4)(b) 6 2 $0.00012832 per $ of Capital Value 680,238
Outer Zone 16(4)(b) 6 2 $0.00004399 per $ of Capital Value 120,042
Planning All Rateable Land 16(4)(a) 3 $0.00045654 per $ of Land Value 2,141,620
Noise Control DRA 1,1A Residential & DRA2 16(4)(a) 5&6 7$3.78 per Separately Used or Inhabited Part of a Rating Unit
50,000
Dog ControlResidential DRA1,1A and DRA 3,4 & 5 (Rural Townships)
16(4)(a) 5&6 7$9.35 per Separately Used or Inhabited Part of a Rating Unit
123,758
Passenger Transport DRA1 Residential 16(4)(a) 5&6 7$15.21 per Separately Used or Inhabited Part of a Rating Unit
175,250
Pest & Plants
DRA1 16(4)(b) 4 5 $31.83487053 per hectare 53,118
DRA1A 16(4)(b) 4 5 $16.38418360 per hectare 53,118
DRA2 16(4)(b) 4 5 $2.00655849 per hectare 53,118
DRA3 16(4)(b) 4 5 $2.32800819 per hectare 265,590
DRA4 16(4)(b) 4 5 $0.78213559 per hectare 265,590
DRA5 16(4)(b) 4 5 $1.66723207 per hectare 371,826
Rural Fires
DRA1 & 1A 16(4)(b) 4 5 $13.96108604 per hectare 68,558
DRA2 16(4)(b) 4 5 $5.17960145 per hectare 137,115
DRA's 3 & 4 & 5 (Outer Zone - Rural & Townships) 16(4)(b) 4 5 $0.70920898 per hectare 479,904
Soil Conservation - Advocacy
DRA1, DRA1A & DRA2 (Inner Zone) 16(4)(b) 4 5 $3.71774758 per hectare 116,673
DRA'S 3 & 4 16(4)(b) 4 5 $0.38577802 per hectare 175,010
DRA5 16(4)(b) 4 5 $1.30769123 per hectare 291,684
Soil Conservation - Land Use
DRA1, DRA1A & DRA2 (Inner Zone) 16(4)(b) 6 3 $0.00002051 per $ of Land Value 53,127
DRA'S 3 & 4 16(4)(b) 6 3 $0.00005093 per $ of Land Value 79,691
DRA5 16(4)(b) 6 3 $0.00024850 per $ of Land Value 132,818
Stock Control
DRA1, DRA1A & DRA2 (Inner Zone) 16(4)(b) 6 3 $0.00000390 per $ of Land Value 10,096
DRA'S 3 & 4 16(4)(b) 6 3 $0.00001936 per $ of Land Value 30,287
DRA5 16(4)(b) 6 3 $0.00011334 per $ of Land Value 60,572
Water ResourcesDRA1, DRA1A & DRA2 (Inner Zone) 16(4)(b) 6 3 $0.00028631 per $ of Land Value 741,706
DRA's 3 & 4 & 5 (Outer Zone - Rural & Townships) 16(4)(b) 6 3 $0.00015141 per $ of Land Value 317,874
Parks And ReservesInner Zone 16(4)(b) 6 $210.35 per rating unit 3,008,222
Outer Zone 16(4)(b) 6 $93.20 per rating unit 458,270
StormwaterDRA1 & 1A 16(4)(b) 6 2 $0.00056738 per $ of Capital Value 2,003,501
All Rural Townships 16(4)(b) 6 2 $0.00067736 per $ of Capital Value 157,363
Gisborne City Wastewater
Within scheme areas connected 16(4)(a) 5&6 7 $372.81 per rating Unit 4,160,554
Within scheme areas - not connected 16(4)(a) 5&6 7 $186.41 per rating Unit 84,444
Pan Charges16(4)(a) 5&6 12
$181.62 per water closet or urinal connected
2,645,606
Te Karaka Wastewater & Stormwater
Within scheme areas connected 16(4)(a) 5&6 7 $379.52 per rating Unit 59,585
Within scheme areas - not connected 16(4)(a) 5&6 7 $189.76 per rating Unit 6,831
Uniform Water Charge
Within scheme areas connected16(4)(a) 5&6 7
$160.28 per Separately Used or Inhabited Part of a Rating Unit
2,086,579
Within scheme areas - not connected16(4)(a) 5&6 7
$80.14 per Separately Used or Inhabited Part of a Rating Unit
39,108
Rural Transfer Stations Within scheme areas 16(4)(a) 5&6 7$95.65 per Separately Used or Inhabited Part of a Rating Unit
261,125
Uniform Waste Management Charge
Within scheme refuse collection areas 16(4)(a) 5&6 7$110.34 per Separately Used or Inhabited Part of a Rating Unit
1,464,396
Commercial Recycling Charge
Within scheme recycling collection areas 16(4)(a) 5&6 7$55.16 per Separately Used or Inhabited Part of a Rating Unit
1,103
Ruatoria Solid Waste Within scheme area 16(4)(a) 5&6 7$101.63 per Separately Used or Inhabited Part of a Rating Unit
25,001
208
Funding Source Categories of Rateable Land
Ratin
g A
ct R
efer
-en
ce
Cat
egor
y (S
ch 2
) ss1
4, 1
7
Factors (Sch 3)
$ Value Excluding GST per Factor s18 & Sch 3
Revenue Sought
Excludes GST
2012/2013 $
Business Area Patrols
Commercial Properties within the CBD Area: Non-residential properties on both sides of the roads bounded by Carnarvon Street, Childers Road, Reads Quay and Palmerston Road and all roads inside this area and also that part of Grey Street as far as the skateboard park and Custom-house Street as far as the Waikanae Cut
16(4)(a) 1,2,6 2 $0.00044283 per $ of Capital Value 82,593
Heart of Gisborne
Commercial Properties within the CBD Area: Non-residential properties on both sides of the roads bounded by Cobden Street, Childers Road, Reads Quay and Palmerston Road and all roads inside this area and also that part of Grey Street as far as the Skateboard Park and Custom-house Street as far as the Waikanae Cut and also all non residential properties within the blocks bounded by Carnarvon Street, Childers Road, Palmerston Road and Cobden Street
16(4)(a) 1,2,6 2 $0.00097753 per $ of Capital Value 185,580
Coastal Property Protection Scheme
Rateable Properties within the defi ned area band A within the Hazard Area
16(4)(b) 5&6 2 $0.00058848 per $ of Capital Value 16,810
Rateable Properties within the defi ned area - band B within the Hazard Area
16(4)(b) 5&6 2 $0.00058848 per $ of Capital Value 3,363
Rateable Land within the defi ned area band C within the Hazard Area
16(4)(b) 6 3 $0.00062890 per $ of Land Value 1,019
Wainui Foredune Capital Works
Rateable Land within the Hazard Area16(4)(a) 5 10 $20978.77 per hectare 10,374
Economic Development
All Industrial and Commercial Properties excluding Retail & Accomodation
16(4)(b) 1&2 2 $0.00046014 per $ of Capital Value 160,079
All Retail and Accomodation businesses 16(4)(b) 1&2 2 $0.00076346 per $ of Capital Value 200,099
Te Karaka Flood ControlResidential 16(4)(b) 5&6 2 $0.00263300 per $ of Capital Value 54,008
Non Residential 16(4)(b) 5&6 2 $0.00205900 per $ of Capital Value 12,136
Ruatoria Flood Control Rateable Properties within the defi ned area 16(4)(b) 5&6 2 $0.00236389 per $ of Capital Value 78,659
River Channel Maintenance Rateable Properties within the defi ned area 16(4)(b) 6 3 $0.00059045 per $ of Land Value 158,856
Waipaoa River Flood Control Scheme
Class A 16(4)(b) 5&6 2 $0.00124488 per $ Capital Value 30,964
Class B 16(4)(b) 5&6 2 $0.00081396 per $ Capital Value 122,965
Class C 16(4)(b) 5&6 2 $0.00047880 per $ Capital Value 136,647
Class D 16(4)(b) 5&6 2 $0.00023940 per $ Capital Value 42,510
Class E 16(4)(b) 5&6 2 $0.00009576 per $ Capital Value 47,446
Class F 16(4)(b) 5&6 2 $0.00001916 per $ Capital Value 43,552
Eastern Drainage Rates
1 - Ormond 16(4)(b) 5&6 5 $55.43074938 per hectare 34,302
2 - Eastern Taruheru 16(4)(b) 5&6 5 $24.67684367 per hectare 62,520
3 - Western Taruheru 16(4)(b) 5&6 5 $20.98935650 per hectare 36,854
4 - Willows 16(4)(b) 5&6 5 $32.41409692 per hectare 39,372
5 - Waikanae Creek 16(4)(b) 5&6 5 $49.79290189 per hectare 25,856
6 - City/Wainui 16(4)(b) 5&6 5 $53.58926914 per hectare 90,296
7 - Taruheru Class A 16(4)(b) 5&6 5 $28.08253238 per hectare 5,693
7 - Taruheru Class B 16(4)(b) 5&6 5 $15.12136359 per hectare 19,703
7 - Taruheru Class C 16(4)(b) 5&6 5 $6.48058440 per hectare 7,334
7 - Taruheru Class D 16(4)(b) 5&6 5 $2.16019480 per hectare 3,594
8 - Eastern Hill Catchment 16(4)(b) 5&6 5 $1.60214020 per hectare 6,812
209
Funding Source Categories of Rateable Land
Ratin
g A
ct
Refe
renc
e
Cat
egor
y (S
ch 2
) ss1
4, 1
7
Factors (Sch 3)
$ Value Excluding GST per Factors18 and Sch 3
Revenue Sought
Excludes GST
2012/2013$
Western Drainage Rates
A - Waipaoa 16(4)(b) 5&6 5 $16.65024544 per hectare 19,630
B - Patutahi 16(4)(b) 5&6 5 $27.95923961 per hectare 72,940
C - Ngatapa 16(4)(b) 5&6 5 $34.57922206 per hectare 27,795
D - Manutuke 16(4)(b) 5&6 5 $33.29183354 per hectare 97,948
E - Muriwai 16(4)(b) 5&6 5 $25.25333293 per hectare 37,978
F - Western Hill Catchment 16(4)(b) 5&6 5 $0.26142439 per hectare 5,760
TOTAL RATES REVENUE $ 49,072,515
Rates Penalties 57 700,000
OTHER FUNDING SOURCES
Activity Revenue 10,486,571
Water by Meter Extraordinary and Rural Domestic users 19(2)(b) $1.04 per cubic metre 2,061,970
Petroleum Tax 335,774
Dividends 784,000
Interest 71,225
Grants & Subsidies 15,283,183
TOTAL FUNDING $ 78,795,238
Schedule 2Matters that may be used to Defi ne Categories of Rateable Land:
1. The use to which the land is put.
2. The activities that are permitted, controlled, or discretionary for the area in which the land is situated, and the rules to which the land is subject under an operative District Plan or Regional Plan under the Resource Management Act 1991 (The RMA).
3. The activities that are proposed to be permitted, controlled, or discretionary activities, and the proposed rules for the area in which the land is situated under a proposed District Plan or proposed Regional Plan under the Resource Management Act 1991, but only if:
a. No submissions in opposition have been made under Clause 6 of the First Schedule of the RMA Act on those proposed activities or rules, and the time for making submissions has expired; or
b. All submissions in opposition, and any appeals, have been determined, withdrawn, or dismissed.
4. The area of land within each rating unit.
5. The provision or availability to the land of a service provided by, or on behalf of the local authority.
6. Where the land is situated.
7. The annual value of the land.
8. The capital value of the land.
9. The land value of the land.
Schedule 3Factors that may be used for Calculating Liability for Targeted Rates:
1. The annual value of the rating unit.
2. The capital value of the rating unit.
3. The land value of the rating unit.
4. The value of improvements to the rating unit.
5. The area of land within the rating unit.
6. The area of land within the rating unit that is sealed, paved, or built on.
7. The number of separately used or inhabited parts of a rating unit.
8. The extent of provision of any service to the rating unit by the local authority, including any limits or conditions that apply to the provision of the service.
9. The number or nature of connections from the land within each rating unit to any local authority reticulation system.
10. The area of land within the rating unit that is protected by any amenity or facility that is provided by the local authority.
11. The area of fl oor space of buildings within the rating unit.
12. The number of water closets and urinals within the rating unit. (Note: A rating unit used primarily as a residence for 1 household must not be treated as having more than 1 water closet.)
210
Schedule 4Due Date and Penalty DateInstalment 1 20 August 2012 Penalty 10%Instalment 2 20 November 2012 Penalty 10%Instalment 3 20 February 2013 Penalty 10%Instalment 4 20 May 2013 Penalty 10%
Additional ChargesP2 PENALTYA further penalty of 10% will be added to any rates remaining unpaid on 6 July 2012.
P3 PENALTYA further penalty of 5% will be added to any rates to which a P2 penalty has been applied and which remains unpaid on 7 January 2013. The amount of unpaid rates to which a penalty may be added includes a penalty previously added to unpaid rates. Matters Affecting RatesRevenue and Financing Policy ChangesThe Revenue & Financing Policy determines how individual funding streams (previously called activities) are charged to different groups of ratepayers. Funding streams relate to the detailed rates that are listed on the back of the rates invoice. The full Revenue & Financing Policy is printed in Appendix.
The amount of money in each funding stream can be assessed by inspection of the Funding Impact Statement.
The following paragraphs outline the more signifi cant changes.
Specifi c key changes to rates this year include:
Dog control rate: This is to cover the costs of responding to customer enquries from non dog owners and minimise the danger, distress and nuisance caused by stray dogs.
Noise control rate: This is to cover the cost of responding to noise control enquiries.
Stormwater: 80% of the cost of maintaining our stormwater system will be paid for by ratepayers who benefi t – those in Gisborne city, Wainui, Patutahi and rural townships. It is based on the capital value of your property. The remaining 20% of the costs are recovered from general rates which everyone pays.
Ruatoria Flood Protection: This is to cover the operating costs of the construction of Ruatoria Flood protection works. If your property is in the designated area you will pay the new rate based on the capital value of your property.
Rural Transfer Stations: This is to recover a portion of the operating costs of rural transfer stations in the district (the rubbish sticker system). The 2013 charge proposed is $95.65 + GST per separately used or inhabited part.
River Channel Maintenance: This is to cover the cost of maintaning our district rivers and include: Motu, Matawai Stream, Waiku-Pehiri, Waikohu, Managhei, Waihora, Waimoko, Hikuwai and Waimata. If your property is in the designated area you will pay the new rate based on the land value of your property.
Coastal Protection Rate: A new basis for rating properties within the Wainui Foredune Protection scheme is proposed. A new targeted rate on capital or land value replaces the current Wainui Foredune Protection rate. The new rate will be based on three geographical bands A,B & C:
Band A at 80% of the capital value of the property where more than 25% of the dwelling is in the high/extreme zones.
Band B at 20% of the capital value of the property where more than 25% of the dwelling sits in the moderate zone. Band C at 20% of the proportionate land value of the land in the hazard zones where there is no dwelling or the dwelling is located outside of the extreme, high or moderate hazard zones. Uniform Water Supply chargeIt is proposed the cost of the maintaining and operating water supplies in Gisborne, Te Karaka and Whatatutu will be recovered by a uniform targeted rate of $160.28 + GST per connection or $80.14 + GST for unconnected properties if your property is situated within 100 metres of any part of the water supply.
211
Rates InformationRates Examples for 2012/13These rates examples represent actual properties in our rates database and are representative of typical properties in each area. All the rates examples are shown including GST. Selection criteria was based on choosing a property with a dwelling.
We selected two high and low capital value examples and a property that was in the middle capital value of all the properties in the selection. Note: The middle property is not necessarily half of the value of the high capital value property.
Suburb Capital ValueHigh
Capital ValueMiddle
Capital ValueLow
Residential
Awapuni $1,120,000 $230,000 $79,000
Proposed Rates 2012/13 $5,031 $2,520 $2,123
Actual 2011/12 $4,517 $2,467 $2,197
$ Change $514 $53 -$75
% Change 11% 2% -3%
Elgin $602,000 $158,000 $93,000
Proposed Rates 2012/13 $3,340 $2,322 $2,163
Actual 2011/12 $3,100 $2,350 $2,227
$ Change $240 -$28 -$64
% Change 8% -1% -3%
Gisborne Inner City $568,000 $231,000 $105,000
Proposed Rates 2012/13 $3,317 $2,501 $2,168
Actual 2011/12 $3,194 $2,486 $2,230
$ Change $123 $15 -$62
% Change 4% 1% -3%
Inner Kaiti $855,000 $271,000 $128,000
Proposed Rates 2012/13 $4,268 $2,599 $2,237
Actual 2011/12 $3,903 $2,574 $2,290
$ Change $365 $25 -$53
% Change 9% 1% -2%
Kaiti $820,000 $157,000 $54,000
Proposed Rates 2012/13 $4,100 $2,318 $2,040
Actual 2011/12 $3,674 $2,347 $2,128
$ Change $425 -$29 -$87
% Change 12% -1% -4%
Lytton West $1,045,000 $334,000 $135,000
Proposed Rates 2012/13 $4,383 $2,740 $2,268
Actual 2011/12 $3,804 $2,726 $2,331
$ Change $579 $14 -$63
% Change 15% 1% -3%
Mangapapa $1,300,000 $198,000 $102,000
Proposed Rates 2012/13 $5,048 $2,444 $2,185
Actual 2011/12 $4,554 $2,442 $2,241
$ Change $493 $2 -$56
% Change 11% 0% -3%
Outer Kaiti $500,000 $240,000 $91,000
Proposed Rates 2012/13 $3,151 $2,524 $2,135
Actual 2011/12 $3,005 $2,504 $2,207
$ Change $146 $20 -$72
% Change 5% 1% -3%
Te Hapara $661,000 $265,000 $86,000
Proposed Rates 2012/13 $3,537 $2,592 $2,013
Actual 2011/12 $3,300 $2,555 $2,085
$ Change $237 $36 -$72
% Change 7% 1% -3%
212
Suburb Capital ValueHigh
Capital ValueMiddle
Capital ValueLow
Whataupoko $970,000 $299,000 $170,000
Proposed Rates 2012/13 $4,572 $2,696 $2,367
Actual 2011/12 $4,030 $2,624 $2,392
$ Change $542 $72 -$26
% Change 13% 3% -1%
The high capital value city residential properties examples show higher increases in rates compared to last year. This is due to:i) Rates funding for building services and stormwater
activities are based on capital value. Last year these activities were rates funded by a fi xed dollar amount per property.
ii) Rates funding for resource consent monitoring and public advice are assessed on land value. Last year this activity was rates funded by a fi xed dollar amount per property.
Capital ValueHigh
Capital ValueMedium
Capital ValueLow
RESIDENTIAL
Wainui $1,550,000 $500,000 $330,000
Proposed Rates 2012/13 $5,409 $2,449 $1,984
Actual 2011/12 $4,741 $2,076 $1,771
$ Change $668 $373 $213
% Change 14% 18% 12% The above rates examples for Wainui residents show rates increases between 12% and 18%. This is largely due to:i) A targeted stormwater rate. For the high capital
value property the estimated stormwater rate is $1,011 including GST. Last year Wainui ratepayers did not pay the stormwater rate because the previous revenue and fi nancial policy omitted the Wainui township in error. The rates impact has also been compounded by a change from a fi xed stormwater charge per property to one based on capital value.
ii) Building Services rate for the high capital value property is estimated at $229 including GST. Previously the rates funding of this activity was from a fi xed charge per property.
ii) Rates funding for resource consent monitoring and public advice are assessed on land value. Last year this activity was rates funded by a fi xed dollar amount per property.
Typically all properties with large land areas will have increases in area based rates.
ii) This property has access to a rural transfer station. A new rural transfer station rate of $110 including GST is proposed.
The lower capital value property has access to a rural transfer station. A new rural transfer station rate of $110 including GST is proposed.
Rural areas
Rural Capital ValueHigh
Capital ValueMedium
Capital ValueLow
Hicks Bay $996,000 $162,000 $94,000
Property Type Pastoral Farm Lifestyle Residential
Proposed Rates 2012/13 $7,637 $1,181 $1,186
Actual 2011/12 $5,530 $1,170 $1,092
$ Change $2,106 $11 $95
% Change 38% 1% 9%
The high capital value property example used above has a 38% increase in rates compared to last year. This is due to: i) Rates funding for pests and plants, soil conservation
and rural fi re activities are assessed on land area. Last year soil conservation and rural fi re activities were rates funded by land value. The property in this example has 1,183.75 hectares. The estimated rates impact from land ara rates total $1,879 including GST.
213
Capital ValueHigh
Capital ValueMedium
Capital ValueLow
Makauri $1,025,000 $395,000 $210,000
Property Type Horticultural Farm Lifestyle Residential
Proposed Rates 2012/13 $4,384 $2,021 $1,516
Actual 2011/12 $4,251 $1,985 $1,496
$ Change $133 $37 $20
% Change 3% 2% 1%
Muriwai $2,100,000 $355,000 $54,000
Property Type Arable Farm Lifestyle Residential
Proposed Rates 2012/13 $8,505 $1,430 $1,166
Actual 2011/12 $7,539 $1,437 $1,148
$ Change $965 -$7 $18
% Change 13% 0% 2% The high capital value property example used above has a 13% increase in rates compared to last year. This is due to: i) Rates funding for building services are assessed on
capital value. The estimated rates impact of this change is $309 including GST. Building services activity costs were reviously rates funded by a fi xed amount per property.
ii) Rates funding for resource consent monitoring and public advice are based on land value. The estimated impact of this change is $475 including GST. Last year this activity was rates funded by a fi xed dollar amount per property.
iii) This property is rated for drainage. The estimated rates impact of drainage for the high capital val-ue property is $168 including GST.
iv) Rates funding for pests and plants, soil conservation and rural fi re activities are assessed on land area. The estimated rates impact of land area rates is $497 including GST.
Last year, soil conservation and rural fi re activities were rates funded by land value per property.
Capital Value
HighCapital Value
MediumCapital Value
Low
Patutahi $3,290,000 $305,000 $115,000
Property Type Arable Farm Lifestyle Residential
Proposed Rates 2012/13 $13,550 $1,827 $1,375
Actual 2011/12 $15,335 $1,705 $1,245
$ Change -$1,785 $121 $130
% Change -12% 7% 10% The high capital value property example used above has a 12% decrease in rates compared to last year. This is largely due to a decrease in the capital valuation of the property from $5.1m to $3.3m and the decrease in general rates funding.
The medium and lower capital value properties have rates increases due to additional maintenance planned for the Paututahi drainage area.
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Capital ValueHigh
Capital ValueMedium
Capital ValueLow
Ruatoria $1,650,000 $90,000 $35,000
Property Type Pastoral Farm Residential Residential
Proposed Rates 2012/13 $6,229 $1,484 $1,216
Actual 2011/12 $5,646 $1,133 $1,066
$ Change $583 $351 $150
% Change 10% 31% 14% The high capital value property is impacted by:i) Introduction of a new rate – roading fl ood
damage and emergency works based on capital value. The rates estimated impact for the high capital value property is $459 including GST.
ii) Introduction of a new rural transfer station rate $110 including GST.
The middle and low capital properties are impacted by:i) Introduction of a new rate for the operating costs
of the Ruatoria fl ood protection scheme. For the middle capital value property this is
estimated at $244 including GST and $95 including GST for the low capital value property.
ii) Introduction of a new rural transfer station rate $110 including GST.
Capital ValueHigh
Capital ValueMedium
Capital ValueLow
Te Karaka/ Whatatutu $3,460,000 $420,000 $47,000
Property Type Pastoral Farm Lifestyle Residential
Proposed Rates 2012/13 $12,226 $1,758 $1,788
Actual 2011/12 $9,335 $1,575 $1,919
$ Change $2,891 $183 -$131
% Change 31% 12% -7% The high and middle capital value examples above show higher rates increases. This is largely due to:i) Introduction of a new rate for river channel
maintenance based on land value. The estimated rates impact for the high capital value property is $1,942. Last year river channel maintenance was rates funded from general rates on capital value.
ii) Rates funding for resource consent monitoring and public advice are based on land value. The estimated rates impact of this change is $771. Last year this activity was rates funded by a fi xed dollar amount per property.
iii) Introduction of a new rate – roading fl ood damage and emergency works based on capital value. The rates estimated impact for the high capital value property is $654.
iv) Introduction of a new rural transfer station rate $110.
The lower capital value property is receiving a rates decrease this year because of a reduction in the targeted rate water supply charge to Te Karaka and Whatatutu residents.
Capital ValueHigh
Capital ValueMedium
Capital ValueLow
Tiniroto $2,980,000 $625,000 $122,000
Property Type Pastoral Farm Pastoral Farm Lifestyle
Proposed Rates 2012/13 $9,275 $2,360 $1,012
Actual 2011/12 $10,805 $2,450 $1,023
$ Change -$1,530 -$89 -$12
% Change -14% -4% -1%
The high capital value property example used above has a 14% decrease in rates compared to last year. This is largely due to a decrease in the capital valuation of the property from $4m to $2.9m and t h e
decrease in general rates funding and rates collected from a lower land and capital value
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Capital ValueHigh
Capital ValueMedium
Capital ValueLow
Tolaga / Anaura Bay $12,350,000 $118,000 $24,500
Property Type Pastoral Farm Residential Pastoral Farm
Proposed Rates 2012/13 $44,588 $1,229 $890
Actual 2011/12 $39,215 $1,121 $853
$ Change $5,373 $108 $37
% Change 14% 10% 4% The high capital value property example used above has a 14% increase in rates compared to last year.
This is due to: i) A new river channel maintenance rate charged
on land area. This property has a high land value of $11m. The estimated rates impact for the high capital value property is $7,469 including GST. Last year river channel maintenance was rates funded from general rates based on capital value.
ii) This example has 2 dwellings and therefore an additional uniform charged has been calculated.
The medium capital value property example has an 10% increase compared to last year.
This is largely due to the introduction of a new rural transfer station rate of $110 including GST.
Commercial properties
Commercial Capital ValueHigh
Capital ValueMedium
Capital ValueLow
Gisborne City $9,770,0000 $335,000 $85,000
Proposed Rates 2012/13 $55,193 $3,127 $2,114
Actual 2011/12 $48,620 $3,347 $2,216
$ Change $6,573 -$220 -$102
% Change 14% -7% -5% The high capital value example above has a rate increase of 14% higher than last year. This is due to: i) A new targeted stormwater rate based on capital
value. The rates impact is estimated at $6,223 including GST. Last year, the stormwater targeted rate was a fi xed charge per property.
ii) Rates funding for building services are based on capital value. The rates impact of this is estimated at $1,442 including GST. Last year building service activity costs were rates funded from a fi xed dollar amount per property.
iii) Rates funding for resource consent monitoring and public advice are assessed on land value. Last year this activity was rates funded by a fi xed dollar amount per property.
The medium and low capital value examples have lower rates due to lower rating valuations and lower general rates
Commercial - Rural Capital ValueHigh
Capital ValueMedium
Capital ValueLow
$1,050,000 $183,000 $60,000
Proposed Rates 2012/13 $4,122 $1,676 $1,140
Actual 2011/12 $5,175 $1,652 $1,206
$ Change -$1,052 $24 -$66
% Change -20% 1% -5% The high capital value property example has a rates decrease due to lower general rates and benefi ted
from the change in rates funding for soil conservation and rural fi res from land value to land area.
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Forestry
ForestryCapital Value
HighCapital Value
MiiddleCapital Value
Low
$9,845,000 $83,000 $30,000
Proposed Rates 2012/13 $54,423 $1,195 $1,058
Actual 2011/12 $48,118 $1,115 $1,016
$ Change $6,304 $80 $41
% Change 13% 7% 4%
The high capital value property value has an 13% increase in rates compared to last year. This is due to: i) Increase in the capital value of the property from
$8.3m to $9.8m and will impact all rates based on capital value.
ii) Rates funding for building services are based on capital value. Last year building service activity costs were rates funded from a fi xed dollar amount per property.
iii) Rates funding for resource consent monitoring and public advice are assessed on land value. Last year this activity was rates funded by a fi xed dollar amount per property.
iv) This property has 5,534ha and has been impacted from the change in rating for soil conservation and rural fi res to land area. The estimated rates impact of this change is $2,393 including GST.
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This section sets out the key assumptions made in preparing this Draft Ten Year Plan.
AssumptionsThe following information is provided in accordance with the New Zealand Institute of Chartered Accountants New Zealand Financial Reporting Standing No. 42 (FRS42) Prospective Financial Statements.
CAUTIONARY NOTEThe Draft Ten Year Plan contains prospective fi nancial information. Actual results are likely to vary from the information presented and the variations may be material.
Signifi cant Forecasting Assumptions and RisksSchedule 10 (Section 18) of the Local Government Act 2002 contains provisions relating to ‘signifi cant forecasting assumptions’. The Act requires that Council identifi es the signifi cant forecasting assumptions and risks underlying the fi nancial estimates. Where there is a high level of uncertainty, Council is required to state the reason for that level of uncertainty and provide an estimate of the potential effects on the fi nancial assumptions.
Council has made a number of assumptions in preparing this Draft Ten Year Plan. Which are necessary to ensure all estimates and forecasts are made on the same basis.
Population GrowthCouncil published its Population, Households, Gross fl oor Area (GFA) and Household Equivalent Unit (HUE) Projections in August 2011 which predicted the future population and number of Households for the District. The fi ndings showed the following:• The Gisborne District population projected to
increase by 400 residents to 46,000 residents in 2051 with a peak of 47,100 residents in 2016.
• Population in the Gisborne Urban Area is projected to remain fairly constant at around 34,000 for the period to 2051, while the population in the remainder of the District is projected to remain around 12,000.
• The number of households is predicted to increase by 2,400 households to 19,000 households between 2006 and 2031. This represents an average increase of 96 households per year. The increase in the number of households is primarily due to the projected decrease in average household size.
• The average household size is estimated to decrease from 2.7 persons per household to 2.4 persons per household. This is due largely to the ageing population in Gisborne.
• By 2031 there is a projected increase of 70% for the population aged 65 years or more and correspondingly the working aged population is expected to decline.
• The population aged less than 20 years is projected to decrease by 15%.
• The Maori population is likely to increase while the European population is likely to remain constant.
Total non-residential fl oor space in the district is projected to increase by only 5% from 2011 to 2046.
Signifi cant Forecasting Assumptions
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Development Contributions FundingThe income and expenditure estimates related to development contributions assume that growth occurs as projected and growth-related capital projects are implemented as planned. It is assumed that if growth does not occur the growth related capital projects will be reviewed in terms of scope and timing.
Asset Management PlansForecast fi gures in the Draft Ten Year Plan relating to the management and enhancement of signifi cant assets have been based on Council’s Asset Management Plans.
The following Asset Management Plans were prepared during 2011-2012.• Land Transport and Parking.• Reserves and Open Spaces.• Stormwater.• Water.• Wastewater.• Flood Control.• Gisborne Olympic Pool Complex.• H.B. Williams Memorial Library.• Solid Waste.• Arts and Culture (Theatres).
The Asset Management Plans have taken into account the growth projection assumptions outlined above.
Activities and Service Delivery OptionsWith the exception of the solid waste activity it has been assumed that the existing activities, services and methods of delivery will continue. Council's Solid Waste activity will now rate $110 for rural properties
within 15km of a transfer station and will issue stickers to manage the amount of refuse collected. Council’s effi ciency committee will continue to review activities with the purpose of improving the effi ciency of the organisation and service delivery.
Signifi cant assumptions that relate to specifi c activities are shown in the relevant part of the Activity Summary section.
Levels of Service The fi nancial information in this Ten Year Plan has been prepared based on the levels of service as outlined in each activity summary. A level of service review was carried out during 2011. Most changes to the levels of service involve:- Minor adjustments to improve clarity and alignment
to Community Outcomes- Removal of levels of service that are no longer
considered appropriate- Minor adjustments to targets for reasons including
customer service and improved processing times resulting from effi ciency measures
- New measures to better refl ect the scope of Council activities.
With the exception of levels of service aligned with the proposed major projects (refer to pages 42 - 50) there are no signifi cant increases in the proposed levels of service performance targets.
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Interest Interest rates on Council net debt is estimated to be 6.5% in 2013 (year 1) and 7.2% for the rest of the term of the plan. Council covers its interest rate exposure using interest rate swaps. The interest rates are based on estimates of the 90-day bank bill rate and include bank margins and the effect of continuing use of interest rate swaps. Interest rates assume Council will utilize the NZ Local Government Funding Agency Ltd (LGFA) lower cost borrowing facility.
Renewability of FundingThe Council funds its balance sheet from a mixture of bank facilities and debentures. Bank facilities are reviewed every two years. Debentures on issues have a range of maturities. For further information on Council's borrowings refer to the Liability Management Policy in Volume 2 of the Plan.
The Ten Year Plan assumes that the necessary level of funding will continue to be available.
Infl ationThe forecast fi nancial information includes provision for infl ation. Council has used forecasts of price level changes prepared by Business and Economic Research Limited (BERL) to calculate the infl ation rate for each year of the Plan. The BERL rates were set in October 2011. Exceptions to the BERL rates are listed below.
Operational costs (with the exception of salaries, utility costs) and some contract costs do not have infl ation applied in year 1 of the Ten Year Plan. This was considered appropriate for the following reasons:1) rates affordability2) budget preparation being within 6 months of
commencement of spend.
Council has not included any infl ation on roading operation and capital expenditure for the 2013 to 2015 fi nancial years. In 2016 the operating costs will have infl ation indices applied. From 2016 the roading capital expenditure will have accumulated BERL infl ation indices applied. These are based upon reported funding indications from New Zealand Transport Agency.
Income tax Council has accumulated tax losses available to carry forward and offset against future taxable income. Given the level of accumulated losses and the expected tax liability during the life of the Plan, no income tax is expected to be paid.
Forecast returns on investments and strategic assetsCouncil maintains a range of commercial and strategic investments. Council has forecast the return for signifi cant investments and business units. Council is currently reviewing all its investments and strategic assets to ensure it is receiving an adequate rate of return. Due to the level of uncertainty, the Plan does not currently include any signifi cant strategic or investment asset disposals.
For more information refer to the Financial Strategy section "Structuring of Investments and Commercial Activities" page 44 and the "Commercial Operations" Activity Management summary on page 70.
Capital ProjectsIt is expected that on average, the costs budgeted for major capital projects will not vary signifi cantly from the costs estimated. The capital project costs have been infl ated based on the BERL infl ation indices except in roading where the costs refl ect the New Zealand Transport Agency plans. There is a risk that costs rise more than the BERL infl ation indices. The Council has a higher level of confi dence regarding capital project costs in the short term, but less certainty in the longer term due to changes in the project scope, fl uctuations in the economy, infl ation and district growth trends.
External FundingIncluded in the forecast fi nancial statements are a number of operational and capital projects that are assumed to be partially funded by another agency or grant.
The funding sources of Council’s proposed capital projects are disclosed in the Groups of Activities section of the 2012 - 2022 draft Ten Year Plan. Council has $277m capital projects proposed for the term of the Plan of which $107m is budgeted to be funded from grants, subsidies or donations. NZTA subsidies for Land Transport and Parking capital projects are included. They contribute $70m over the ten years. There is a risk that sources of funds for some capital projects may not eventuate. It is assumed that if the external funds budgeted are not available then the project will be reviewed and the availability of other funding sources will be assessed.
DepreciationAll assets, excluding those listed below, are assumed to be replaced at the end of their useful life. The following assets are assumed not to be replaced at the end of their useful life.- Tolaga Bay Wharf.- Patutahi Hall.- Tokomaru Bay Wharf- Hicks Bay Wharf.
Council does not fund depreciation on these assets.
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Council is not continuing to fund depreciation on the War Memorial Theatre as it is proposed that it will have a total upgrade in the early years of the plan. These estimates include 70% unfunded depreciation for this facility for years 2013 -2015.
Council does not fund depreciation on that portion of the Waste Water Treatment Plan Asset that was funded by Capital rates.
This equates to approximately $450,000 per year of unfunded rates in the waste water activity.
Council does not fully fund the depreciation on its roading assets in the Forecast Financial Statements. It is assumed that a set proportion of the Land Transport and Parking capital expenditure will continue to be funded through NZTA fi nancial assistance subsidies. It is therefore considered appropriate to only collect rates revenue on the portion of roading depreciation funded from Council reserves.
Council does not fund depreciation on the Airport assets as it is assumed that the Council lease of the Airport assets and operations to Eastland Infrastructure Ltd will result in the assets being returned to Council at the end of the lease in the same condition as when the lease began on 1 April 2005.
Useful lives of assets are as recorded in Asset Management Plans or based upon professional advice. Refer to the Accounting Policies Depreciation note.
There is a risk that some assets may wear out and fail sooner, or later than calculated. There is no certainty that asset components will last exactly to their design lives. However, replacement is budgeted at the expected end of useful life and earlier replacement will result in a loss on disposal of any residual value.
Earlier replacement may result in deferring other discretionary capital projects in order to remain within Council’s borrowing limits set out in the Council Liability Management Policy.
Depreciation on Planned Assets AcquisitionsThe depreciation rates used for planned asset acquisition are in line with current policies.
Resource Consents All of Council’s projects require compliance with the Resource Management Act. Compliance with Council plans needs to be confi rmed before work can commence, or resource consents need to be obtained. This process needs to be completed before any physical work can take place. It has been assumed that RMA compliance can be obtained for all capital work, and that obtaining any resource consents will not signifi cantly impact on the timing of capital work shown in the Draft Ten Year Plan.
It is also assumed that the currency and conditions of existing resource consents held by Council will not be altered signifi cantly during the term of the Draft Ten Year Plan. The most signifi cant resource consents and RMA authorisations currently held by Council are for:• Waiapu Landfi ll • transfer stations • existing wastewater treatment (Marine Outfall into
Poverty Bay)• water takes (either bore water or river water).
Revaluation of AssetsThe forecast fi nancial information includes an annual estimate to refl ect the change in asset valuations and depreciation. The effect of the revaluations is a best estimate based on historical asset values, forecast capital expenditure, the BERL infl ation indices and recent revaluation information. The most recent revaluation of Council’s assets was at 30 June 2011. It is assumed revaluations will result in an increase in the asset values, revaluation reserves and the depreciation expense. It is assumed the revaluations will occur annually.
Forestry Income and Emissions Trading SchemeDue to the uncertainty of the timing and amount of the forestry and emissions trading stream scheme income it is considered fi nancially prudent not to apply the forecast surpluses/defi cits to offset rates at this time. The next major harvest is currently forecast to occur in 2019 and this will be reviewed in the next ten year plan.
Climate ChangeCouncil does not expect any signifi cant changes in operations, levels of service or activities as a result of climate change over the term of the draft Ten Year Plan. Therefore, the prospective fi nancial information presented does not allow for any changes in budgets as a result of climate change.
Legislative or Central Government Policy changeIt is assumed that current national and regional policies, strategies and legislation will not change signifi cantly during the period of the Ten Year Plan. The prospective fi nancial information does not allow for any changes in levels of service or budget as a result of legislative or policy changes. Signifi cant changes to legislation, policies and local government form and structure could have a high fi nancial impact in dedicating resources to meet legislative or policy requirements.
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Natural DisastersIt is assumed that there will be no natural disasters causing signifi cant damage to infrastructure over the term of the draft Ten Year Plan. The various activity levels of service or prospective fi nancial information do not include any allowance for the effects of a signifi cant natural disaster.
Council CapacityThere are currently no signifi cant changes expected to Council’s capacity over the term of the draft Ten Year Plan.
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The setting of development contributions is governed by the Development Contributions Policy.
Financial YearCouncil’s fi nancial year runs from 1 July to 30 June the following year.
General RateA rate based on the value of every property in the district.
HearingChance for your views to be expressed in person by Council, following its receipt of your written submission.
Infrastructural AssetsFixed utility systems that provide a continuing service to the community and are not generally regarded as tradable. These include roads, waste, sewerage and stormwater systems.
Internal RecoveriesRecovery of costs by support departments from other Council departments.
Land ValueThe probable price that would be paid for the land as at the date of valuation. The value includes development work such as drainage, excavation, fi lling, leveling, retaining walls, clearing, fertility build-up, fl ood protection.
Levels of ServiceA measure of the service that the Council delivers e.g. library opening hours, water quality etc.
Loan FundsThis is money used by Council that it has obtained by raising a loan.
Local Government Act 2002The key legislation that defi nes the regulations and responsibilities for local authorities including Gisborne District Council.
MissionThis describes Council’s basic purpose (its fundamental reason for being) and specifi es the role Council is going to play in its environment.
OutcomesThe impacts on, or consequences for, the community. Gisborne District Council’s plan includes community outcomes which relate to the district as a whole and as a result of the operations of Gisborne District Council.
Glossary of termsGlossary of termsActivityA related or like services that are grouped together.
Allocated CostsAllocation of costs by support departments to other Council departments for services provided. Refl ects the true cost of the provision of goods and services.
Annual PlanEach year Council is required to have an Annual Plan which sets out the budget for the year. This is based on what is proposed in the Ten Year Plan but also highlights any change or variance that is projected to occur which is not currently accounted for in the Ten Year Plan.
AssetsAssets are items that the organisation own. Assets are defi ned as having a useful life of more than 1 year such as roads, parks, footpaths and buildings.
Capital ExpenditureThis is the spending on new Council assets or replacing existing assets.
CBDCentral Business District.
Capital ValueThe probable sale price of the freehold interest of the property if offered for sale at the time of valuation.
Community OutcomesWhat the Council aims to achieve in order to promote the social, economic, environmental and cultural wellbeing of its district or region in the present and for the future.
Council Controlled Organisations (CCO)A Council Controlled Organisation is a company where one or more local authorities have 50% or more of the shareholder voting rights or similar. For a more detailed meaning see Section 6 of the Local Government Act 2002.
DepreciationThis accounts for the annual cost of wearing out of, or the economic use of, our assets. It is generally based on the value of the asset divided by its remaining life.
Development ContributionsFees paid by developers who subdivide (subdivision Impact Fees) or build (Building Impact Fees). These fees cover the cost of upgrading the services (e.g. Water Supply) provided to those new sections/buildings.
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PolicyGuidelines to support effective decision making.
Public Benefi tThis relates to spending which benefi ts the community in general and for which no individual benefi ciaries can be clearly defi ned.
Private Benefi tThis occurs when individuals who benefi t from a service can be clearly identifi ed and therefore charged for that service. It applies to user charges, application fees, purchase price, and water by meter, though there are exceptions to the rule.
RatesFunds collected from property owners in the district.
Renewals ExpenditureThis is spending that replaces deteriorating assets with new assets that have the same service potential as the originals.
Resource ConsentThis is permission to use resources such as land, water and air, granted under the Resource Management Act 1991.
Revenue and Financing PolicyThis is a statement about who should pay for the services provided by Council. The policy outlines who will benefi t for each Activity and who should pay for it, taking into account fairness and what is practical.
Signifi canceThis is the degree of importance of an issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impacts, and or likely consequences.Special Funds/Reserve FundsMoney set aside for a specifi c purpose.
StrategyOutlines how the Council is going to undertake particular actions to deliver community outcomes.
SubmissionYour opportunity to tell the Gisborne District Council your views on the Ten Year Plan. Submissions need to be made in writing.
Targeted Rating AreaA defi ned geographical area which attracts a specifi c rating requirement.
Ten Year Plan (TYP)This plan sets the strategic direction for Council over the next 10 years and outlines Council’s contribution
towards achieving the community outcomes. This plan is formally reviewed and updated every three years.
Uniform Annual General Charge (UAGC)A specifi c levy of an equal amount on each rateable property. This amount does not vary with the value of the property.
User fees and chargesFees charged to the community for use of specifi c services and facilities provided by Council.
Vested AssetsInfrastructural assets and land provided by the developer of a subdivision. Examples of this may be roads, streetlights, water and wastewater reticulation, stormwater disposal systems and reserve land. At the completion of the subdivision, the ownership and hence future maintenance of these assets, passes to Council.
VisionCouncil’s view of the future state of its community. It is used to inspire people into action, defi ne future direction and implies that what we do now can infl uence and change the future for the better.
Governance and StructureGovernance and Structure Our Our Council Governance and StructureCouncil Governance and Structure
Council Controlled Organisations Council Controlled Organisations
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Our RoleAs one of only fi ve Unitary Authorities, the Gisborne District Council (Council) combines the functions, duties and powers of a Territorial Council with those of a regional council. In most other parts of the country, the functions of Regional Councils and territorial councils are split as follows:Regional Councils
• Resource management (quality of water, soil, coastal planning etc).
• Biosecurity control of regional plant and animal pests.
• River management, fl ood control and mitigation of erosion.
• Regional land transport planning and contracting of passenger services.
• Civil defence (natural disasters, marine oil spills).
Territorial Councils
• Community wellbeing and development.
• Environmental health and safety (including building control, and environmental health matters).
• Infrastructure (roading and transport, sewerage, water/stormwater).
• Recreation and culture.
• Resource management including landuse planning and development control.
Under the Local Government Act 2002, Council is tasked with two key responsibilities.
The fi rst is to promote the social, cultural, economic and environmental wellbeing of the Gisborne district and its residents in the present and in the future. The second is to enable democratic local decision-making and action on behalf of our communities.
Community wellbeing is promoted through the broad range of Council’s services and activities. While some of these are clearly visible to our communities (such as libraries, pools and recreational facilities), many Council services and activities go unnoticed but make a substantial contribution to our community’s wellbeing. These include things such as our roads, water supply and drainage or working with others (such as community groups) to facilitate and achieve common outcomes.
We further contribute to community wellbeing through our regulatory responsibilities. Activities such as resource consents, noise control and environmental protection all enhance the safety and the sustainability of the district that we live in.
Our Governance StructureThe elected Council consists of the Mayor and 14 Councillors (including the Deputy Mayor). The Councillors cover seven areas of the district (referred to as wards). These are Waikohu, Patutahi/Taruheru, Cook, Gisborne, Uawa, Waiapu and Matakaoa. While the Councillors have been elected from their respective wards, they have an obligation and a duty to represent the interests of the district as a whole.
Our Council Governance and Structure
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The Council is elected every three years and is responsible for setting the overall direction of the district and the budget through Ten Year Plans and Annual Plans, setting policies, setting and reviewing bylaws, monitoring Council’s performance, adopting a Code of Conduct for elected members, employing the Chief Executive, and adopting (or otherwise) reports as required under various legislation. Councillors also have a key role in engaging with their local communities, advocating on behalf of others and raising any issues that need to be addressed.
Our CommitteesElected Councils can create subordinate decision making structures such as committees. Committees can be established or dis-estabilished by way of a resolution of Council. Council has eight committees. These are:
• Finance & Monitoring Committee
• Civil Defence & Emergency Management Committee
• Operations Committee
• Regional Land Transport Committee
• Environment & Policy Committee
• Wastewater Management Committee
• Community Development Committee
• Hearings Committee
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Men
g Fo
on
Mayor Deputy Mayor Gisborne Gisborne
Non
a A
ston
Cra
ig B
auld
Man
u C
add
ie
And
y C
rans
ton
Gisborne Gisborne Gisborne Gisborne
Alla
n D
avid
son
Roge
r Hai
sman
Alla
n Ha
llPa
m M
urph
y
Rehe
tte S
toltz
Bria
n W
ilson
Gra
eme
Thom
son
Gisborne Cook Matakaoa Taruheru Patutahi
Patri
ck T
anga
ere
Pat S
eym
our
Uawa Waiapu Waikohu
Bill B
urd
ett
Our Mayor and Councillors
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Our Organisational StructureThe elected Council has one employee, namely the Chief Executive. He is responsible for implementing and managing Council’s policies and objectives within the budgetary constraints established by Council. The Chief Executive is supported by four Senior Managers whose departments refl ect the range of activities that Council undertakes in order to contribute to the social, cultural, environmental and economic outcomes of our communities.
The Council has four departments that sit under the Chief Executive. These are, Community Planning and Development, Corporate Services, Engineering and Works, and Environment and Policy. Each department is responsible for supporting the Chief Executive to implement Council decisions and policies and provide sound advice to the elected members through the Chief Executive and Senior Managers.
Lind
say
McK
enzie
Group Manager Engineering and Works
Chief Executive
Pete
r Hig
gs
Mik
e D
rum
mon
d
Hans
van
Kre
gten
Ned
ine
That
cher
Sw
ann
Group Manager Corporate Services
Group Manager Environment and Policy
Group Manager Community Planning
and Development
Statement of Involvement in Council Controlled Organisations (CCOs) and Other CompaniesThe Council has control over the following entities:
The Gisborne Disaster Relief Trust
The Trust has been established to provide a vehicle for the collection and distribution of funds in support of local disaster relief efforts. The Trust is exempt from CCO status under the provisions of the Local Government Act 2002.
Gisborne Holdings Ltd
This CCO comprises Gisborne Holdings Ltd and its subsidiaries, Tauwhareparae Farms Ltd and Tauwhareparae Forests Ltd.
100%
Gisborne District Council
Gisborne Holdings Ltd
Tauwhareparae Farms Ltd
Tauwhareparae Forests Ltd
100%
Tax Group
100%
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The only trading entity in the group is Tauwhareparae Farms Ltd. Tauwhareparae Farms Ltd was amalgamated with Tauwhareparae Holdings Ltd and ceased to be a Port Company on 30 June 2010.
Local Government Funding AgencyCouncil proposes to participate as a “Principle Shareholding Local Authority” (PSLA) in the New Zealand Local Government Funding Agency Ltd (LGFA) which will be a Council Controlled Trading Organisation (CCTO).
The LGFA is being established as a co-operative by a large group of Councils and Central Government. The government will have a maximum shareholding of 20%. The LGFA will allow Councils to borrow at a lower interest rate than would otherwise be available and easier access to long term borrowing in the 5-10+ year range. The LGFA credit rating matches the AA+ rating of Central Government.
All Councils will be able to borrow from the LGFA although different benefi ts apply depending on the level of participation. Generally all local authorities borrowing from the LGFA will be required to have some shareholding and enter into guarantees in favour of the LGFA and other Councils (for PSLA). The exceptions will apply to local authorities with very low levels of borrowing. These Councils will only be able to borrow a limited amount, and will be required to pay higher interest costs.
As a PSLA, Council will be required to invest $100K of capital in the LGFA. We expect to receive a return on that capital of the LGFA’s Long term cost of funds plus 2% pa. As PSLA we will be required to meet a certain proportion of our borrowing needs through the LGFA Scheme for an initial period. This is to ensure that suffi cient borrowings are channelled through the LGFA to ensure its success.
Why is Council proposing to join the LGFA
The Council is proposing to join the LGFA as a PSLA because we believe it will enable us to borrow at lower interest margins, and that the savings made in getting cheaper loans will substantially outweigh the costs associated with joining the LGFA.
Due to its size, economies of scale, higher credit rating and regulatory advantage we expect the LGFA will be able to borrow money at a rate low enough (lower than what a local authority could negotiate on its own) for the LGFA Scheme to be attractive.
Importantly the LGFA will also provide local authorities with increased certainty of access to funding, and more favourable terms and conditions (including the potential access to longer funding terms e.g. 10+ years).
Options to consider
The Council has 4 options to consider:
1) Participate in the LGFA Scheme as a Principal Shareholding Local Authority (PSLA).
2) Participate in the LGFA Scheme as a Guaranteeing Local Authority (GLA), but not a PSLA.
3) Participate in the LGFA Scheme, but not as a PSLA or as a Guaranteeing Local Authority.
4) Do not participate in the LGFA Scheme.
Option 1
The Council has current borrowing of approximately $36m. This is projected to grow to $41m by 2015. Consequently, the benefi ts of lower interest margins are signifi cant.
The savings in fi nancing costs would build from late 2013 through to 2015 when the last of the current debentures mature. The current borrowing and bank facilities are structured as short term in anticipation of Councils involvement in the LGFA.
Financial modelling indicates that interest savings of 0.5% to 0.9% may be available by joining the LGFA as a PSLA. Interest cost and bank fee savings of $160k - $270k pa would commence from the 2012/13 fi nancial year. Although the modelling is based on a number of assumptions (for example how quickly the LGFA builds local authority participation and how quickly Gisborne District Council’s debt is shifted into the LGFA), this number gives an indication of the scale of potential savings. Also if the Council joins the LGFA as a PSLA a discretionary return will be paid on the capital investment made.
By contributing to the LGFA as a PSLA the Council effectively increases the Scheme’s viability. The more Councils who contribute as PSLA’s the stronger the fi nancial position of the LGFA - risk is further minimised, and the LGFA’s credit rating will be stronger. The stronger the LGFA’s credit rating the cheaper it will be to borrow money.
Council’s who participate in the LGFA as PSLA’s are also able to get voting rights on any decisions made by the LGFA and as a result, Council will have ability to infl uence the direction of the LGFA.
Option 1 is the Council’s preferred option and we believe that savings made in obtaining cheaper loans will substantially outweigh the costs associated with joining the LGFA as a PSLA.
If the Council adopts this proposal and joins the LGFA’s Scheme as a Principal Shareholding Local Authority (PSLA) the Council will need to do the following:
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(a) subscribe for $100,000 value of shares in the LGFA to provide it with establishment capital;
(b) commit to meeting a certain proportion of its borrowing needs from the LGFA;
(c) borrow from the LGFA;
(d) subscribe for up to $100,000 uncalled capital in the LGFA;
(e) subscribe for Borrower Notes;
(f) enter into a guarantee;
(g) commit to providing additional equity to the LGFA under certain circumstances; and
(h) provide a rates charge as ‘security’ for some or all of its obligations under the LGFA Scheme. This is the same security arrangement that Council has with the ANZ, BNZ and Westpac Banks.
Option 2
By participating in the LGFA Scheme as a Guaranteeing Local Authority (GLA) but not a PSLA does remove the requirement for a $100,000 contribution from the Council, but it also decreases the Schemes overall viability (i.e. with less Council’s contributing fi nancially to it). By participating only as a GLA the Council will not be entitled to voting rights and will not be able to infl uence the decisions or direction of the LGFA.
Option 3
If the Council was to join the LGFA Scheme without being a PSLA or a GLA, the requirement for a $100,000 contribution is removed. However, the interest rates at which Council could borrow money would also be higher and it is likely there is a maximum borrowing limit of $20M which means any benefi ts would be lower and limited to a small portion of Councils core borrowing.
Option 4 – Do not participate in the LGFA
Because the potential savings of belonging to the LGFA are signifi cant and the risks are minimal, the Council considers participation in the LGFA prudent. Council does not recommend Option 4 to not participate in the LGFA
The Council has new draft policies in respect of investment, treasury operations, and liability management. The Council’s involvement in the LGFA as a PSLA has been provided for in these policies.
An Information Memorandum, describing the arrangements in more detail has been prepared and is available on request. Please contact Council’s customer services or visit the Council’s website: www.gdc.govt.nz.
