these are exciting times for southland district
TRANSCRIPT
These are exciting times for Southland District. It’s a new day, and change is upon us. With your help we’re ready to meet the challenges head on, but there will be some hard decisions to make.
6 Key Issues and Options 14 What else we’re doing 16 Infrastructure – meeting future needs
18 What’s happening financially? 24 Ward snapshot 29 Where to find out more 32 How to have your say
Contents
2
This is just the start…
Why? The reality is a lot of the District’s expensive infrastructure like bridges and pipes are coming up for renewal and higher environmental standards mean we will have to make some big investments. Meanwhile, the needs of the community are changing, and the cost of what we do keeps rising.
We’re going to have to work on ways to make the District’s dollars go further than ever before and consider whether the services we provide are the right size and affordable. This could mean making decisions about what we stop doing, what we do differently and what to do more of.
To have these hard conversations with you we need the best possible information, so in the next three years we want to invest more in planning for the future.
We’ll gather data on the wide range of demographic, environmental, social and economic factors that are occurring now, and the changes we can expect to see in the future. Once this work is done we’ll be in a position to put options on the table on how we can more efficiently provide the services and infrastructure our changing communities need. At that point there will be big decisions to make and we’ll need your help to get them right.
The Long Term Plan, or LTP, sets out Council’s plan for the next 10 years. We review it every three years to make sure it’s still relevant and accurate. Right now, though, we believe improving our open spaces is an immediate priority. Southlanders enjoy being outside and, with rising numbers of people visiting Southland, we’re proposing to invest more heavily in our open spaces in the next 10 years to make them more usable and attractive.
There are also some issues we need to get sorted. We want to put the finishing touches on the Around the Mountains Cycle Trail and we’ve presented you with options on how we could improve the cycling experience and fund the net cost so far.
We’ve also included in the plan budgets to carry out all the other services we provide every day, including maintaining roads, getting rid of rubbish and sewage, supplying water for drinking, processing building consent applications and registering dogs.
In this Long Term Plan you aren’t being asked about whether we should do a lot of “new” or “different” things. What we’re asking is if you support our move to work out the best ways to change.
In this consultation document we’re talking to you about three key issues: 1 - Investing in our community future planning2 - Improving the Around the Mountains Cycle Trail experience and funding the costs3 - Investing in open space experiences
3
Find the right services to meet changing needs Build sustainable communities
Work better Provide the right services Make better decisions More people
Gather better information about communities Analyse services and assets
Assess affordabilityLook at options and alternatives Talk to communities Make decisions on future services
OUR VISION One community offering endless opportunities
Where we want to be and the challenges ahead
BIG CHANGES Changing community Many small, scattered communities
Higher environmental standards Service sustainabilityAffordability
We’re here now
OUR KEY INITIATIVES
OUR OUTCOMES Proud, connected communities that have an attractive and affordable lifestyle Resilient communities that leave a legacy for tomorrow
Where we want to be
OUR CHALLENGE
OUR PRIORITIES
IN NEXT 3 YEARS
BY 2021 LTP
For more information about our strategic priorities and how we will approach our work, please see the Draft Strategic Framework on southlanddc.govt.nz
4
Southland District Council provides a wide range of services to its community. These include parks, libraries, roads and, in the urban areas, water, wastewater, stormwater drainage and footpaths. Our community needs and wants these services, but it is important for Council to ensure they remain affordable – now and in the future.
There are issues that Council faces in delivering these services over the long term and they need to be considered and responded to.
Our community is changing - who and how many people live here in the future is a key issue. The population in some parts of the District has been dropping and is projected to continue to drop. Other areas are expected to remain relatively static or experience a slight increase in population. People are living longer, healthier lives and families generally are having fewer children. The proportion of older people is rising and the amount of disposable income people have is reducing.
The Southland Regional Development Strategy aims to have 10,000 more people living in the region by 2025, but it is early days and there is no certainty that our District will see the benefits.
One of our aims is to make sure that Southland remains a great place to live, for residents, new migrants, people returning home and people setting up a new business.
We love Southland, with its outdoor lifestyle, rugged beauty, low-cost housing, low unemployment and strong primary sector. We’d love it if a few more people chose to live here.
While we are doing the best we can to make this happen, and our commitment to SoRDs is part of this, the reality is that there are probably going to be some areas of our District that won’t grow and we need to work with these communities to ensure that services remain affordable.
Let us know what you think We’ve outlined the key issues and options we are considering on pages 6 - 13. Let us know what you think we should do.
5
Affordability of services is Council’s No 1 challenge as we adapt to the changing social and economic landscape in Southland. As our infrastructure ages, the money needed to maintain and replace it will increase while the District’s ratepayers get older. Council needs to map out a path for the future that informs the rating affordability discussion we will need to have with you.
This will require good research and data on the demographic, social and economic changes that are happening in our communities today and the changes we can expect to see in the future. Without it we cannot prioritise and budget for the range of services we will need to deliver.
The sorts of issues we are facing are diverse and will require a change in approach. We could look at alternatives to costly traditional infrastructure, doing less of some things and more of others, selling some assets or consolidating some services.
Increasing environmental standards are expected to have a dramatic impact on the cost of wastewater, water and stormwater, in particular, with catchment
Investing in our community future planning
limits being introduced under the regional council’s Water and Land Plan. When wastewater and stormwater systems need new consents, we expect to have to improve our treatment processes to improve the quality of discharges. We have factored these increased costs into our 10-year budgets but, depending on the level of treatment and conditions of consents, costs could be significantly higher and place increasing pressure on smaller communities.
We need to know more about climate change andits impact on our communities and the environment. We have an idea about its potential effects, for instance on coastal erosion, but we need to do more detailed research and modelling to help make key decisions about how we might best adapt to the effects of these changes in the future.
This work is consistent with and part of the community futures planning already being done by Council, including our representation review, governance review and community leadership planning. These projects are designed to identify better ways of working together with our communities.
1Council’s proposal: We are proposing to invest more money to develop a District-wide community future planning model that takes account of changing settlement patterns, population, demographics, socio-economic conditions and visitor trends as well as the impact of climate change and other recognised contributors to societal change in the future.
The work will also look further at the information we have about our infrastructure to better understand how long it will last and what the likely cost of replacements will be and whether the community can afford this in the future. It will assist in providing an understanding of appropriate and affordable utility and amenity provision for our communities and the changing nature of the various villages and towns that make up our District.
This will help us to make decisions about whether to maintain what we have or look for alternative ways of providing services.
Issue for feedback
6
2. Status quo
Make no investment in developing an improved District-wide community future planning model.
We believe this is a much higher risk option. A lot of the high-cost infrastructure used to provide Council services is due for renewal in the next 30 years. We want to be in the best position to ensure that best infrastructure and resource allocation decisions are made. This will help ensure that rates continue to be as affordable as possible, while achieving desired levels of service. Council’s view is that this option involves an unacceptable level of risk to ratepayers.
Likely consequences: On ratesNil at district level
On debtNil
On levels of serviceIncreased risk to achievement and affordability of levels of service
3. Fast track
We have identified a range of research and analysis projects, whereby more work, at increased cost, could be completed by December 2019. These include some research projects relating to climate change, open spaces design work, and demographic analysis.
Although this approach delivers more ‘action’ in the short term, it may make it more challenging to achieve a true multi-agency approach which we see as being critical. In addition, costs would increase to $300,000 per year.
Likely consequences: On rates Total rates required increases from $300,000 in 2018/19 to $372,000 in 2027/28 which equates to:
- a fixed amount of $2.89 per property in 2018/19 increasing to $3.58 in 2027/28; plus
- a variable component each year per $100,000 of capital value of $1.26 in 2018/19 increasing to $1.56 in 2027/28.
The rates impact of this option is not included in the forecast rates increase in the Draft LTP.
On debtNil
On levels of serviceSimilar to option 1 but at greater expense.
7
Options
1. Future proof – Preferred option To invest $150,000 in the first year increasing to $250,000 a year by year four to undertake more planning.
The data collected will inform the 2021-31 Long Term Plan and assist Council to develop options for the community to consider on how to best respond to the changes. This option also requires additional ratepayer funding and is included in the Draft LTP.
Likely consequences:
On ratesTotal rates required increases from $150,000 in 2018/19 to $310,000 in 2027/28 which equates to: - a fixed amount of $1.45 per property in 2018/19 increasing to $2.99 in 2027/28; plus
- a variable component each year per $100,000 of capital value of $0.63 in 2018/19 increasing to $1.30 in 2027/28.
The rates impact of this option is already included in the forecast rates increase in the Draft LTP 10 years.
On debtNil
On levels of serviceBased on our current knowledge we expect to maintain or improve levels of service (see the table on page 19), but we believe it is important in our fast-changing environment to develop an improved District-wide community future planning model. This will give us the best chance of achieving desired levels of service and ensuring an equitable allocation of resources across different services and communities.
Improving the Around the Mountains Cycle Trail experience and funding the costs Council has to make a decision on finishing the trail and funding both the costs incurred so far and any future costs needed.
How to improve the cycle trail experience?
All options would involve developing the Around the Mountains Cycle Trail to New Zealand Cycle Trail Great Ride status.
Great Rides are defined as dedicated cycleways, mostly off-road and in particularly scenic locations. They can be ridden easily in sections of various length and levels of difficulty.
22a.
Council’s proposal
Council is proposing to bring the existing section of trail to a point at Centre Hill Road using existing roads.
This work would cost $126,000 and would involve minor road construction work and the installation of structures including an emergency shelter, more toilets and additional directional and safety signage.
Council prefers this option because it provides amenities that will improve the experience for trail users and comes at a reasonable cost. This should lead to an increase in the number of users and the flow-on economic benefits that it delivers to the broader community. It also does not preclude further enhancements being made over time if there is a strong level of user demand.
Other options include a hybrid trail involving construction of more than 30km of off-road trail, which would have a capital cost of $3.11 million, and a Great Ride extension of predominantly off-road trail all the way to Mount Nicholas Road, with a potential capital cost of up to $4 million.
All options would require additional ratepayer funding. Option 1 has been included in the plan and if chosen, will be constructed in 2018/19. Options 2 and 3 would require a resource consent, meaning the timing for actual construction will depend on the consent process and a consent being granted.
Further information on the options are in the business case which is available on the website.
Funding options are discussed further on pages 10 - 11.
8
Issue for feedback
1. Centre Hill Road Connection - Preferred option To put the finishing touches on the loop trail by upgrading the access road that connects to Centre Hill Road. This option does not provide any new trails but includes essential shelter and toilet facilities at the Centre Hill terminal.
Council believes that this option provides the best value for money when compared with the potential costs and risks involved. Proceeding with this option also doesn’t prevent any further development of the trail in the future.
Likely consequences: On rates Total capital cost is $126,000 which equates annually per property to:
i) If funded by 30 year loan: $0.50ii) If funded by reserves: $0.27iii) If funded by mix (50% loan and 50% reserves): $0.38
On debt $126,000 repaid over 30 years with annual repayments of:
i) If funded by 30 year loan: $8,000ii) If 100% funded by reserves: $4,000iii) If funded by mix (50% loan and 50%
reserves): 6,000
On levels of serviceSlight increase in level of service with estimated 10% increase in visitor numbers.
2. Hybrid trail extension
This option proposes developing an 11.2km connection alongside the road from the current end to the bridge on Centre Hill Road (section 1), followed by the construction of an additional 20.5km of off-road trail, which will cross private farmland (section 2). It would run adjacent to the farm boundary at the base of the hills on the eastern side of the valley. This ride would be of grade 1-2 difficulty, with regular comfort stops and defined start and end points at each step of the journey.
This option would also include shelter and toilet facilities. If chosen, Council would prefer to complete this option in phases, with defined start and end points.
Likely consequences: On ratesTotal capital cost is $3.11 million which equates annually per property to:
i) If funded by 30 year loan: $12.40ii) If funded by reserves: $6.58iii) If funded by mix (50% loan and 50% reserves): $9.49
On debt$3.11 million repaid over 30 years with annual repayments of:
i) If funded by 30 year loan: $193,000ii) If 100% funded by reserves: $102,000iii) If funded by mix (50% loan and 50%
reserves): $148,000
On levels of serviceIncreased level of service for trail users and potential for new businesses with estimated 25% increase in visitor numbers.
3. Great Ride extension
This option crosses 28.5km of private farmland. It would use the existing end of the trail and continue north through farmland onto Centre Hill Road at the Oreti Road intersection. The trail would then continue on to farmland, along the boundary, before connecting to Mount Nicholas Road. There are two potential routes:
- Option 3a cuts through the farm’s centre, crossing up and over a peak, offering potentially superior scenic values and a more challenging option to ride and construct.
- Option 3b is a flatter, easier path through private farmland, which may offer less scenic value but will be easier to access, ride and construct.
Likely consequences: On ratesTotal capital cost is between $3.88 million (3a) and $4.0 million (3b) which equates annually per property to:
i) If funded by 30 year loan: $15.46 (3a) or $15.96 (3b)ii) If funded by reserves: $8.20 (3a) or $8.47 (3b)iii) If funded by mix (50% loan and 50% reserves):
$11.83 (3a) or $12.21 (3b)
On debtBetween $3.88 million - $4.0 million repaid over 30 years with annual repayments of:
i) If funded by 30 year loan: $241,000 (3a) or $248,000 (3b)ii) If 100% funded by reserves: $128,000 (3a) or $132,000 (3b)iii) If funded by mix (50% loan and 50% reserves):
$184,000 (3a) or $190,000 (3b)
On levels of serviceAs with option 2 but more scenic/interesting ride with estimated 50% (3a) or 40% (3b) increase in visitor numbers.
OptionsIssue for feedback
9
2b. How should we fund the net cost of the Around the Mountains Cycle Trail to date?
Council must decide how to fund the cost of the cycle trail work that has been completed to date and any future costs. The net cost so far is $4.6 million, which is the difference between actual costs of $10.4 million less $5.8 million of external funding received.
While Council has used its cash reserves to pay for the costs in the meantime, we must make a formal decision on how to fund these costs. The options we’ve considered include using a 30-year loan repaid by rates using Council’s Strategic Asset Reserve or a mixture of the two.
10
Issue for feedback
Options
1. 100% loan funding – Preferred option
To fund the net cost by way of a loan over 30 years, with loan repayments collected by way of the uniform annual general rate (a rate where every property pays the same amount).
Loan funding means that the cost can be shared over time so that ratepayers of today aren’t paying the full cost now. This is called intergenerational equity and it recognises that the benefits of the cycle trail will be experienced over a long period of time.
This option would require additional ratepayer funding to repay the loan principal and interest and is included in the plan.
Likely consequences: On ratesTotal loan cost is $4.6 million with repayments equating to $18.33 per property per year.
The rates impact of this option is already included in the forecast rates increase in the Draft LTP.
On debt$4.6 million repaid over 30 years with annual repayments of $285,000 (including interest of 4.65%)
On levels of serviceNo change
2. 100% reserve fundingCouncil currently has a Strategic Assets Reserve of $8.5 million (previously called the South Roads Reserve). Council has indicated in its previous plans that the purpose of this reserve is to offset rates. Interest on this reserve is currently used to reduce the amount of rates needed for roading.
In this option, Council would use $4.6 million of this reserve to pay for the net costs, leaving a balance of $3.9 million. This would reduce the amount of interest that could be used to offset the roading rate ($151,000), meaning that additional ratepayer funding would be needed.
This option would mean that all of the project costs would be paid for and there would be no impact on ratepayers in the future (other than the increase in rates needed to make up for the lost interest used in the roading rate).
Likely consequences: On rates Total cost is $4.6 million from reserves, with the lost interest equating to $9.73 per property per year.
The rates impact of this option is not included in the forecast rates increase in the Draft LTP.
On debt Nil
On levels of service No change
3. Combination of loan and reservesTo fund the net cost 50% by way of a loan over 30 years and 50% funded from reserves. This is a mixture of option 1 and 2. This means that the level of debt (and interest repayments) would be lower, with a slightly higher level of reserve interest used to reduce the roading rate.
While Council considers that this an overly complicated approach and that the financial benefits over option 1 or 2 are marginal, the community may see some benefit in this option as it shares the cost between current and future ratepayers.
Likely consequences:
On ratesTotal cost is $4.6 million with repayment and lost reserve interest equating to $14.03 per property per year.
The rates impact of this option is not included in the forecast rates increase in the Draft LTP.
On debt $2.3 million repaid over 30 years with annual repayments of $218,294 (including interest of 4.65%)
On levels of service No change
11
Investing in open space experiences In 2017 Council began looking at whether its network of open spaces (parks, playgrounds, walkways etc) are meeting the needs of people who use them today and how this might change in the future. Open spaces are vital to the wellbeing of any community. Places that are great to live in tend to be also great to visit. Whether we prefer bush walks, cycle tracks, parks, playgrounds, sports fields or beaches, they are where we go to escape our busy lives, reinvigorate ourselves, exercise, reflect and appreciate nature.
They are also integral to how we tell our story. People’s impressions of Southland are influenced by the presentation of public places and the facilities in them. Positive open space experiences increase pride in the region and encourage more people to live and play here.
Improving and maintaining these facilities will improve the lives of the people living in Southland District, as well as the experience of visitors, who are expected to arrive in increasing numbers over the life of this Long Term Plan.
Council has tended to leave it to local communities to decide how these spaces should be developed and come up with the funds and/or volunteer labour and materials to do the work. This has meant that what you find in one part of the District can be totally different than in another part of the District.
A recent review of our open spaces found that considerable investment in the design and improvement of facilities is required. Professional design input is needed to make sure money is invested in the right things and more funding is needed to make sure the job is done right.
Council’s proposal Council is proposing to create a design and planning budget of $150,000 a year. This will be used to develop a co-ordinated District-wide plan to improve our open spaces and provide professional design input to improve the quality of what we do.
Council is also proposing to create a total project budget for facility improvement of $5.5 million (between $500,000 and $1 million annually) to carry out the physical improvement works.
Depending on the specific projects, this might be used for walkways, landscaping, signage, rubbish/water utilities etc.
The number, location and scope/design of these projects is yet to be decided, but we will need a decent amount of funding to get under way. Once we have prepared the detailed implementation plan, we will be discussing the proposed priorities, options and designs with the community.
3
12
Issue for feedback
1. Future proof – Preferred option To establish an ongoing annual provision of $150,000 for open space design and planning and $5.5 million capital expenditure from years 4-10 for upgrading facilities at Council’s open spaces.
This would result in better planned open space improvements, better facilities and greater consistency across the District, focusing on priority areas and moving to the whole District over time. This would also provide local communities with the ability to access professional landscape/design expertise for any projects that they want to undertake.
This option would allow time to get community and stakeholder input into the proposed facility improvements. This could include looking at where investment is best made e.g. Council-owned playgrounds or school playgrounds or both. This option also requires additional ratepayer funding and is included in the plan.
Likely consequences: On ratesTotal rates required increases from $150,000 in 2018/19 to $651,000 in 2027/28 which equates to: - a fixed amount of $1.45 in 2018/19 increasing to $6.28
in 2027/28; plus- a variable component each year per $100,000 of capital value
of $0.63 in 2018/19 increasing to $2.74 in 2027/28.
The rates impact of this option is already included in the forecast rates increase in the Draft LTP 10 years.
On debt$5.5 million repaid over 30 years with annual repayments of $62,000 in 2018/19 increasing to $279,000 in 2027/28
On levels of serviceGradual increased level of service to residents and visitors using the upgraded open spaces and facilities
2. Status quo
To continue the current management and investment in open spaces – ie, ad hoc development.
What is provided would depend on the value the individual community places on improving open spaces. Investments may not be made in the key priority areas across the District as a whole. This option is not likely to require any significant increases in ratepayer funding. The total cost of this work is in the budgets included at a community and District level.
Likely consequences: On ratesNil at district level. Local rate impact would depend on what is planned by individual Community Boards and Community Development Area subcommittees.
On debtNil
On levels of serviceNo change
3. Do more faster
The ongoing annual funding would remain ($150,000), but funding to upgrade the facilities would increase to $1 million a year.
This would allow for a wider range of work to be completed relative to option 1. As a result there would be an increased level of benefit delivered to the District’s communities. This could also mean Council ends up improving its own spaces, where alternative investment (eg, in school playgrounds) may have been more appropriate. This option will require significantly more ratepayer funding.
Likely consequences:
On ratesTotal rates required increases from $150,000 in 2018/19 to $747,000 in 2027/28 which equates to:
- a fixed amount of $1.45 in 2018/19 increasing to $7.20 in 2027/28; plus
- a variable component each year per $100,000 of capital value of $0.63 in 2018/19 increasing to $3.14 in 2027/28
The rates impact of this option is not included in the forecast rates increase in the Draft LTP.
On debt$7.0 million repaid over 30 years with annual repayments of $62,000 in 2018/19 to $375,000 in 2027/28.
On levels of serviceImmediate increased level of service to those using upgraded facilities.
Could see improvements duplicated – non-council owned and council owned facilities.
Options
13
Te Anau wastewater treatment upgrade The draft plan includes $14.7 million (including inflation) for the proposed upgrade of the Te Anau wastewater treatment plant and development of a new discharge system at the Kepler site based on the consented option for irrigation via centre pivot.
Council recently considered a business case outlining the various options for the wastewater discharge at the Kepler site and the associated costs.
These included:
• Consented: Pipeline to Kepler with irrigation via centre pivot • Membrane: Centre pivot plus membrane filter for flow of 2,000m3/day or 4,500m3/day • Sub-surface: Membrane plus sub-surface drip irrigation
Council is finding out more information about the cost and risks of subsurface irrigation before making a decision. We’ll be able to talk more about how treated wastewater can be irrigated at the Kepler Block after this work is completed. Further detail is provided in the business case, which is available on the Council website.
Drinking water quality Stage 2 of the government inquiry into the Havelock North gastro outbreak in 2016 makes some recommendations about improving the safety of New Zealand’s drinking water supplies.
All Southland District Council’s urban water supplies are chlorinated. Based on what we already know is required, $750,000 has been allocated for some additional work in years 2 and 3 of the Long Term Plan, including installing ultra violet light disinfection at Riverton.
We will be in a better position to talk about the future costs of drinking water delivery when the scope of any potential systemic changes is announced by central government.
new consents during the period, including these four plus Lumsden, Monowai, Otautau, Oban and Tuatapere. $230,000 has also been included in the plan to improve stormwater discharges at Te Anau, Mossburn, Riversdale and Lumsden over the LTP period.
While it is very early days, this funding has been included to signal the work that needs to be done. Council intends to look at what alternatives are available to meet these compliance costs and will discuss these with the communities before final decisions are made.
What else we’re doing Here are some things we also think are important to update you on. However, we’re not specifically looking for feedback on these.
Planning for higher environmental standards for wastewater and stormwater Council expects we will need to upgrade our wastewater treatment plants and stormwater systems to improve the quality of wastewater and stormwater discharges, particularly into waterways because of the requirements in the proposed Water and Land Plan and the National Policy Statement for Freshwater Management. While we are conscious of the impact these cost increases will have on communities, we also acknowledge how important water quality is for the health of rivers in our District.
We have allowed for upgrades to our wastewater treatment plants based on what we think will be required when the time comes to renew resource consents. We’ve prioritised key upgrades for townships we believe will receive the greatest benefit. In total, $23 million has been allowed for wastewater treatment upgrades in Te Anau, Winton, Riversdale and Manapouri. We’ve also allowed for resource consent costs for all schemes that will need
14
Maintaining our roads
Pushing road pavements Our roading network, valued at $1.3 billion, is Council’s largest asset with around 2,000km of sealed roads and 3,000km of unsealed roads. However, like many of our assets, it’s getting old. The majority of pavements were built in the 1960s and 1970s, and they weren’t designed to carry the heavy vehicles that use our roads today. In this plan we aim to reseal around 150km of roads per year (970,000m2). However, there are only so many layers of seal you can put on a road before the pavement and structure underneath need to be rebuilt.
We will prioritise which road pavements we rebuild focusing on the 20% of roads that carry about 80% of the traffic (known as primary and secondary collector roads). The approach is all about making sure we do the work just in time (before the road fails) rather than too early or too late.
In the next 10 years we are planning to rebuild all of the programmed primary and secondary collector roads – 168km in total. In the first five years we’ll rebuild an average of 8.11km a year, potentially rising to an average 16.84km over the 10 years. There are many variables that determine the life of a pavement, and we will be doing more analysis on their condition to understand when roads need to be renewed. We are also budgeting around $350,000 annually for any unplanned rebuilding work that may be needed if there are failures.
Rebuilding bridges Southland has 852 bridges which are also ageing and starting to get to the point where they will need to be renewed. Council is allowing $1 million a year in the plan to renew bridges. Around 12% of all of the bridges are timber and already have some form of weight restriction. While Council plans to look in more detail at the options for replacing these bridges, based on the current level of funding available it could take around 15-20 years to remove all weight restrictions on priority bridges.
Council facilities Combining Council’s Te Anau office and library into one community hub has been identified as a potential project over two years starting in 2019/20. This would make it consistent with other Council area offices/libraries and create a space that meets the growing needs of the community.
Council’s Invercargill office building requires significant maintenance work to address seismic, fire and access issues, and Council is looking at various options, including rebuilding and leasing. A business case hasn’t been
developed yet, but it is assumed that the cost of a new building would provide better value than extensive maintenance and refurbishment of the existing building. $10.5 million has been budgeted in years 5 and 6 of this Long Term Plan for this project. However, it is still early days and Council won’t be making a decision on this until the business case is completed and all the information is known.
$1.1 million has been budgeted for improvement of Stewart Island wharves and jetties. It is expected Council will take over ownership of these water structures. Negotiations are continuing. If this occurs, an urgent redevelopment project of the Golden Bay wharf will need to be carried out. A rebuild of the Ulva Island jetty and main wharf infill would follow in 2019/20.
Council is undertaking an assessment of the District’s numerous community facilities – halls, meeting rooms, pools, clubrooms, sports fields and indoor/outdoor courts. Many are approaching the end of their expected lives and community demand for them is waning. Council would like to see a consolidation of these facilities and a move towards better quality, fit-for-purpose facilities in key locations. However, many residents have grown up with these facilities and feel an attachment to them. The idea of closing some facilities and investing in others will be contentious, but it is a critical foundation for making sustainable choices. We are planning to have conversations with the community about the outcomes of this work and any options once the assessment has been completed.
15
Infrastructure – meeting future needs We maintain and build infrastructure because we need it to provide you with the things you need to live here. Supplying clean water, treating sewage, providing roads, footpaths and stormwater drains to prevent flooding are essential for the health, safety, and economic wellbeing of our District. Our priority is to maintain and upgrade our existing roads and footpaths and stormwater, wastewater and water systems. Providing good-quality infrastructure costs a lot. Between 2018 and 2028 we expect to spend over $250 million on new or replacement infrastructure, and over $351 million on operational costs such as maintenance. The graph below shows that the majority of our capital expenditure over the next 10 years will be about renewing or replacing existing infrastructure, rather than building new assets to improve levels of service or cater for increased demand. As Council continues towards fully funding depreciation by 2024/25, the graph shows the gap between the renewal of core infrastructure and depreciation expense reducing. This indicates that Council’s asset renewal programme is increasingly aligned to the use of the asset with funding being put aside for replacements over time.
Council has developed an Infrastructure Strategy that looks at how we plan to manage core roading, water supply, wastewater and stormwater assets over the next 30 years. The strategy highlights issues that could impact Council’s infrastructure in the future including affordability, changing demographics of communities, ageing infrastructure, climate change and increasing environmental and regulatory standards. You can read more about the key infrastructure-related projects in other parts of this document and the full strategy is also available online.
Te Anau Wastewater Treatment Plant Upgrade $14.4M
Riversdale Wastewater Treatment Plant Upgrade $2.4M
Stewart Island – Golden Bay Wharf, Main Wharf, Ulva Island Improvements $1.1M
Eastern Bush RWS Water Treatment Upgrade $1.5M
Winton Stormwater Pipe Renewal $1M
Riverton Water Treatment (UV) $0.5 M
Te Anau RWS Water Lateral Replacements $1.0M
Manapouri Water Treatment Upgrade $1.0M
Monitoring equipment (SCADA) upgrade $0.3M
Office/Library ImprovementsTe Anau $0.5M
$12.2M
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Years 1 - 10: Infrastructure Forecast Capital Expenditure Type 40
35
30
25
20
15
10
5
0
Renew LoS Demand Depreciation Wastewater
Council buildings/toilets
16
Mill
ions
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11-15 Yr 16-20 Yr 21-25 Yr 26-30
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/33 2033/38 2038/43 2043/48
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11-15 Yr 16-20 Yr 21-25 Yr 26-30
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/33 2033/38 2038/43 2043/48
Ohai/Nightcaps/Wairio Pipe & Treatment Renewal $1.9M
Riversdale Pipe Renewal $1.3M
Otautau Treatment Renewal $1.8M
Ohai/Night-caps/Wairio Water Pipe Renewal $2.3M
Lumsden/ Balfour Water Renewal $1.5M
Edendale/ Wyndham Stormwater Pipe Renewal $3M
Winton Water Pipe Renewal $2.9M
Tuatapere Pipe Renewal $2.3M
Riverton Water Pipe Renewal $9.2M
Lumsden/ Water Pipe Renewal $1.4M
Winton Wastewater Pipe Renewal $14M
Stewart Island Wastewater Treatment Renewal $5.5MRiverton Wastewater Pipe & Treatment Renewal $5.5M
Riverton Pipe & Treatment Renewal $3.5M
Edendale/Wyndham Pipe Renewal $1.3M
Lumsden Pipe Renewal $3.6M
Nightcaps Wastewater Treatment Upgrade $0.8M
Manapouri Wastewater Treatment Plant Upgrade $1.4M
Te Anau Wastewater Pipe & Treatment Renewal $14M
Otautau Water Pipe Renewal $5M
Winton Stormwater Pipe Renewal $8.5M
Te Anau Water Pipe, Treatment & Pump Renewals $8.4M
Ohai/Nightcaps/ Wairio StormwaterPipe Renewal $1.7M
Te Anau Stormwater Pipe Renewal $7M
Winton Wastewater Treatment Plant Upgrade $4.7M
Council Main Office Replacement $10.5M
Wastewater Upgrade Planning – Environmental Standards $0.7M
Public Toilet Upgrades / Renewals $2.3M
Open Spaces Upgrades/Projects $5.5M(throughout District – details to be finalised with implementation plan)
$32.2M
Footpath/Walkway Renewals & Upgrades (Edendale/Wyndham, Otautau, Riverton, Stewart Island) $1.2M
Sustained roading rehabilitation programme – ageing infrastructure
17Parks/reserves Water structures Roading/footpaths Water Stormwater
Council has developed a financial strategy that sets the overall direction for the management of its finances over the next 10 years.
Financially, this draft strategy is generally one of a ‘transitioning period’ while we do the work needed to better understand just what the future might hold for Southland and our communities. The intention is to maintain existing levels of service and ensure that these are financially sustainable and the rates to pay for these services are affordable and do not adversely affect the choices of the future generations.
In developing this strategy we have considered the major challenges facing Council, which are:
- providing costly infrastructure services to many small geographically dispersed communities with ageing, and in some cases static or declining, populations
- increasing costs due to changing compliance requirements and environmental standards
The draft strategy focuses on maintaining our sound financial position and low level of external debt and carrying out appropriate renewals of core infrastructure to maintain, and in some cases improve, the levels of service provided. The key goal is to ensure ratepayers’ money is spent wisely and to ensure that the costs associated with using services are shared fairly across the users of today and the future. This includes continuing the 2015 initiative to fully fund the annual use of core infrastructural assets over their lifetime, known as funding depreciation, from rates by 2025.
The financial boundaries/limits that we have set are:
- rates to increase no more than the Local Government cost index (LGCI) plus 2% per year
- annual rates to not exceed 70% of total revenue (limit of $49 million in 2018/19 up to $63 million in 2027/28)
- external debt to not exceed 100% of total revenue
What’s happening financially?
68%
5%
95%
Split of Operating Expenditure 2018 - 28
Split of Capital Expenditure 2018 - 28
32%
Infrastructure costs
Other activity costs
18
What’s happening financially?
Operational Spend 2018-28
Capital Spend 2018-28
Rates 2018-28 How Costs are Funded
What’s happening with levels of service
$M % $M % $M Value per $
Rates Other (incl. fees & charges)
Indication of whether the level of service is proposed to be maintained ( > ) or increased ( ^ )
$86.0 10.9% $25.5 9.8% $59.7 11c ^ Open space improvements
$43.0 5.5% $0.8 0.3% $17.8 3c >
$4.8 0.6% $0.0 0.0% $4.7 1c >
$164.1 20.8% $8.1 3.1% $136.2 26c 79 ^ Improving customer service
$48.3 6.1% $1.5 0.6% $47.9 9c >
$328.2 41.5% $181.8 69.5% $166.7 32c >
$56.2 7.1% $30.5 11.8% $50.1 9c ^ Discharge improvements
$8.3 1.1% $5.0 1.9% $5.2 1c ^ Discharge improvements
$50.6 6.4% $7.8 3.0% $41.6 8c >
$789.5 $261.0 $529.7
54%
41%
98%
79%
96%
33%
58%
39%
71%
Community Services
Regulatory Services
Emergency Management
District Leadership
Solid Waste
Roads and Footpaths
Wastewater
Stormwater
Water Supply
Total $529.9
Our activities by the numbers
The financial impact Council’s overall approach is to operate in a fiscally prudent and conservative manner. To achieve this we endeavour to keep rates increases at an affordable level, provide services efficiently and maintain a low level of debt. Council is projecting the following operating results for the next 10 years:
In a number of years Council’s projected annual income will be less than its operating expenditure. The level of deficit decreases over the plan period largely due to Council moving to fully fund depreciation (as described above). You can read more about the full strategy online.
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
($4.4M) ($4.1M) ($3.1M) ($2.7M) ($1.4M) $0.3M $0.2M $0.5M $3.4M $3.2M
19
Year
Surplus (deficit)
Mill
ions 90
80
70
60
50
40
30
20
10
-
2018
/19
2019
/20
2020
/21
2021
/22
2022
/23
2023
/24
2024
/25
2025
/26
2026
/27
2027
/28
Total Operating Expenditure 2018 - 28 ($790 million)
120
100
80
60
40
20
-
2018
/19
2019
/20
2020
/21
2021
/22
2022
/23
2023
/24
2024
/25
2025
/26
2026
/27
2027
/28
Mill
ions
How do we pay for this?The majority of money comes from rates (57%) as well as subsidies (17%), in particular funding from NZ Transport Agency for our roads. Council also collects other revenue (10%) which includes fees and charges from users, forestry and other income. Funding sources are less than the total expenditure (operating and capital) because of unfunded depreciation ($133 million) less principal repayments ($25 million) totalling $108 million.
Our average rate increase over the 10 years will be 3.43%. In our financial strategy we have committed to increase our total rates by no more than the LGCI plus 2%, which is equivalent to between 4% to 4.7%.
Council is also making changes to some fees and charges. More information about these changes is available online.
Total Capital Expenditure 2018 - 28 ($261 million)35
30
25
20
15
10
5
-
2018
/19
2019
/20
2020
/21
2021
/22
2022
/23
2023
/24
2024
/25
2025
/26
2026
/27
2027
/28
Mill
ions
What’s happening to costs? The cost of our activities in the next 10 years is projected to increase, mainly because of inflation and to pay for capital expenditure projects, in particular to renew core infrastructure and to improve drinking water and wastewater/stormwater discharges.
Funding Sources 2018 - 28 ($942 million)
Rates Revenue NZTA subsidies Other Reveue Reserves Internal Loans
Solid Waste Stormwater Water Supply Wastewater Regulatory Services Emergency Management Community Services District Leadership Roading and Footpaths
20
The actual change in the rates you pay depends on the type of property you own, its value, and what Council services you use (for example, whether you are connected to our wastewater system).
The following examples on pages 22 and 23 show the 2018/19 rates for different property types and property values in different parts of the District. If you’d like to see how Year 1 of the plan will impact your rates, use our online rates tool to search for your property.
Proposed Rates Increases 2018 - 28 5%
4%
3%
2%
1%
0%2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28
Actual Total Rates (%) Increase
Total Rates Increase (%) Limit
What does this mean for my rates?
What about debt? At 30 June 2017 Council had no external debt. During this year and over the plan period Council will be borrowing externally to fund some significant infrastructure projects, particularly for wastewater upgrades and a potential project to upgrade the Council’s Invercargill office building.
As part of the Draft Financial Strategy, Council has set a limit on external debt to 100% of total income (equivalent to $69 million in 2018/19 up to $90 million in 2027/28). Loan repayments for these projects are built into rates and are typically repaid over 30 years.
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-
External Debt Debt Limit (External Debt)
Net Debt 2018 - 28
Mill
ions
21
Residential (Winton)Residential (Manapouri)
Residential (Balfour)Residential (Ohai)
Residential (Te Anau)Residential (Otautau)
Lifestyle (Athol)
Lifestyle (Manapouri)Lifestyle (Wyndham)
Lifestyle (Riverton/Aparima)1
Farming (Non-Dairy)Farming (Non-Dairy)Farming (Non-Dairy)Farming (Non-Dairy)
Mining
IndustrialIndustrial
CommercialCommercial
DairyDairyDairyDairy
Forestry
Other
$81,000$240,000$20,000$5,500$60,000$15,000
$225,000$195,000$120,000$550,000
$4,290,000$6,100,000$4,910,000$1,360,000
$1,200,000
$121,000$200,000
$155,000$690,000
$7,400,000$10,100,000$13,700,000$19,900,000
$495,000
$60,000
$265,000$670,000$155,000$90,000$355,000$190,000
$385,000$480,000$585,000$1,150,000
$4,920,000$7,250,000$5,450,000$1,490,000
$2,450,000
$315,000$510,000
$730,000$3,160,000
$9,650,000$12,000,000$17,510,000$24,220,000
$580,000
$67,000
$801$1,158$704$647$880$735
$907$990$1,083$1,043
$5,188$7,438$5,686$1,937
$43,464
$1,084$1,403
$1,847$6,104
$13,069$16,060$23,238$31,928
$3,785
$576
$847$1,216$747$688$929$779
$957$1,043$1,139$1,083
$5,395$7,735$5,911$2,020
$43,201
$1,149$1,485
$1,931$6,340
$13,315$16,348$23,561$32,485
$3,884
$612
$244$381$242$267$455$239
$78$380$181 $241
$191$282$209$63
$56
$214$140
$139$716
$465$548$623$1,042
$15
$2
$224$389$244$275$418$284
$57$388$148$46
$160$282$175$63
$42
$197$135
$134$636
$418$546$609$1,045
$11
$1
LAND VALUE
CAPITAL VALUE 2017/18 2018/19
DISTRICT RATESRates that everyone pays
LOCAL RATESRates provided to particular townships or areas
2017/18 2018/19
22
$1,046$1,046$260$1,046$1,046$1,046
$260$657$260$260
$0$0$0$0
$0
$785$1,839
$1,046$0
$0$0$0$0
$0
$0
$1,073$1,073$267$1,073$1,073$1,073
$267$674$267$267
$0$0$0$0
$0
$806$1,888
$1,073$0
$0$0$0$0
$0
$0
$2,091$2,585$1,207$1,961$2,381$2,020
$1,245$2,027$1,524$1,545
$5,379$7,720$5,896$1,999
$43,519
$2,083$3,381
$3,031$6,820
$13,534$16,608$23,860$32,970
$3,800
$577
$2,144$2,678$1,258$2,036$2,420$2,136
$1,281$2,105$1,554$1,396
$5,555$8,016$6,085$2,083
$43,243
$2,151$3,508
$3,138$6,976
$13,734$16,894$24,260$33,530
$3,895
$613
$54$93$51$76$39$116
$296$78$29($148)
$176$296$190$84
($276)
$68$127
$106$156
$199$286$400$560
$96
$36
3%4%4%4%2%6%
3%4%2%(10%)1
3%4%3%4%
(1%)
3%4%
4%2%
1%2%2%2%
3%
6%
SERVICE RATESRates for specific services that are provided
TOTAL RATESChange
$ % 2017/18 2018/19 2017/18 2018/19
1 - Rates for the Riverton/Aparima lifestyle property shown in the table are reducing as a result of the proposed change in Riverton/Aparima Community Board rate from land value to a rate per rating unit as well as the proposed change in how libraries are funded (see page 26).
23
These are some sample properties that show the impact of changes to different property types and proerty values in different parts of the District.
If you would like to see how year one of the plan will impact your rates, use our online rates tool to search for your property.
The plan also includes funding for a number of local and District projects. We’ve included some of what we’ve planned for each ward on pages 24-25 and the full list is available online.
Observation Rock viewing platform $80,000New walking track Horseshoe Bay Road $52,583New car park Argyle Street $30,420
2019/20New walking track Horseshoe Bay Road $53,740
2020/21New walking track Horseshoe Bay Road $54,922Little Glory jetty upgrade $23,912
Wallacetown stormwater upgrade $25,000Winton library upgrade $100,000
2019/20Repaint Dipton hall $38,000Winton rotunda beautification $20,440
2020/21Repaint Winton Maternity Centre $43,868Repaint Waianiwa hall $31,335
Winton Wallacetown
Ward snapshot
Stewart Island Rakiura
24
Stewart Island Rakiura
2018/19New Lumsden toilet $220,762New Te Anau toilet $100,000Riversdale new footpath $29,000Lumsden footpath replacement $21,752Gateway to Fiordland at Te Anau $20,000Te Anau walking trail improvements $53,000Repaint Garston Playcentre $8,000
2019/20Lumsden stormwater upgrade $428,112Riversdale sewerage treatment upgrade $410,000Otta seal Whitestone Road to Lynwood Cemetery, Te Anau $173,740Te Anau new footpaths $51,500Repaint Five Rivers hall $35,770Te Anau walking trails improvements $25,550Athol beautification $5,000
2020/21Upgrade Te Anau boat harbour toilets $147,538Mossburn water supply upgrade $104,858Te Anau walking trails improvements $26,112
Mararoa Waimea
2018/19Tokanui sewerage upgrade $70,000New Waikawa toilets $60,000New roof Waikawa/Niagara hall $25,000Repaint Edendale/Wyndham hall $20,572
2019/20Woodlands kerb and channelling (Flemington Road railway track) $35,000
2020/21Reclad exterior Waikawa/Niagara hall $52,224Fortrose Domain Hall maintenance $31,335Tokanui playground equipment $10,445
Waihopai Toetoes
2018/19New Monkey Island toilets $255,000New Clifden toilet $200,000Riverton footpaths upgrade $50,479Gemstone Beach ground works $48,000Reclad Colac Bay hall $20,000
2019/20Riverton water main upgrade $85,224Ohai sewerage upgrade $61,500Thornbury kerb and channelling $48,365Orepuki hall toilets upgrade $41,862Tuatapere playground equipment $30,000Otautau netball court resurfacing $27,514Repaint Orawia hall $25,550
2020/21New Riverton toilets, Princess Street $342,074Tuatapere water supply maintenance $73,400Riverton footpaths $52,725Thornbury playground toilet upgrade $35,694Repaint Nightcaps hall $32,889
Waiau Aparima
25
Policies for consideration Alongside the proposals set out in the Consultation Document, we are seeking feedback on policies that support the Long Term Plan. A full copy of the draft policies and statements of proposal are available on our website along with a link to our feedback form so you can let us know what you think.
Draft 2018 Revenue and Financing Policy Council is proposing some changes to the way rates are set through the Revenue and Financing Policy. All property owners pay rates to fund the services Council provides to the community.
To find out the indicative impact of these proposed changes on your rates, use our online rates tool.
Setting all Community Board and Community Development Area (CDA) subcommittee rates as a Uniform Targeted Rate
Council would like to use the same method to assess local service rates for each Community Board/Community Development Area (CDA) subcommittee. Currently the majority of local rates are assessed as uniform targeted rates. However, Riverton/Aparima, Otautau, Stewart Island/Rakiura, Mossburn and Waikaia are assessed as a rate in the dollar. For these five communities, you may end up paying more or less than what you are currently paying towards your local rate.
Funding 100% of library services across the District from the Uniform Annual General Charge (every property will pay the same) We are recommending funding the total cost of libraries across the whole District rather than some townships paying more because they have a library. This will reduce rates in those townships that currently pay more and increase rates for everyone else.
Proposed changes
26
1.
2.
Issue for feedback
Introducing a portion of rates funding (10%) for health licensing costs It is recommended that a small amount (up to 10%) of rates funding for the health licensing activities like food premise inspections be provided to reflect an element of public health benefit. This will result in a small increase in rates for all properties. The remainder of the activity is covered by fees charged to premises.
Repaying loan costs for the Around the Mountains Cycle Trail from the Uniform Annual General Charge (every property will pay the same) The costs of the Around the Mountains Cycle Trail have been accumulated in a reserve. Council is proposing to fund the costs by way of a 30-year loan to be repaid via rates from the General Rate Uniform Annual General Charge. This will increases rates for all properties by approximately $18 per year. More information on the options for the cycle trail are included from page 8.
3.
4.
Adjusting the Roading Rate Model As part of the 2015-2025 Long Term Plan Council implemented a revised roading rate model which endeavours to collect roading rates from ratepayers at a level which is representative of the impact the ratepayer’s use has on network maintenance and repair. The model was reviewed in preparation for the 2018-2028 LTP, and refinements to the model have been identified. The changes proposed in Council’s preferred option is to:
- set the uniform targeted rate at a fixed amount of $80 (GST exclusive) per rating unit (currently $60.27 GST exclusive which is 10% of the total roading rate excluding the heavy use factor) - set the dollar per tonne for heavy vehicles at $1.10 (GST exclusive) per tonne (currently $1.20 per tonne) - lift the minimum tonnage applied to each relevant sector to 230,000 tonnes (currently 200,000) - adjust the sector multipliers for dairy farming landuse 1.15 (currently 1.1); forestry landuse to 1.2 (currently 1.1) and non-dairy farming landuse to 1.15 (currently 1.0).
The financial impact of these changes on each sector are shown in a table in the Revenue and Financial Policy Statement of Proposal on southlanddc.govt.nz. Confirming the activities to which the general rate and Uniform Annual General Charge (UAGC) are applied Council has decided to adjust how certain rates are funded through the general rate to align with the activities in the plan so 100% of funding for grants and donations are proposed to come from the UAGC (so everyone pays the same) and 25% of both community futures and representation and advocacy activities are proposed to be funded by the general rate using a rate in the dollar, with the balance from the UAGC.
5.
6.
27
28
Including all property types in the definition of Separately Used or Inhabited Part (SUIPs) The definition Council uses for SUIPs is based only on properties with a residence getting charged. Council is proposing to include all properties that have separately used or inhabited parts, including non-residential SUIPS (eg, shops, commercial, farming). This may increase rates for non-residential properties.
Proceeding with local rating boundary changes Council sets a number of different hall/community centre rates for facilities throughout the District. In the past three years a number of halls have closed and Council has received requests from various communities for hall and other boundaries to be merged or changed. The following boundary changes are proposed: - expansion of the hall rating boundaries for Athol, Waianawa, Browns and Tokanui-Quarry Hills
to include rating boundaries for neighbouring halls which have or are proposed to close
- merger of the Edendale and Wyndham hall rating boundary to become the Edendale-Wyndham hall
- removal of the Milford Sound township from the Te Anau Community Board rating boundary
- discontinuation of the Edendale pool rate/boundary replaced by a grant provided from the Edendale-Wyndham Community Board local rate.
More detail, including maps showing the proposed boundary changes, are included in the supporting documents on southlanddc.govt.nz.
Other rating changesAs part of our LTP process we’ve also reviewed how we collect some rates. Council is proposing a couple of changes as follows:
Draft 2018 Development and Financial Contributions Policy The draft 2018 Development and Financial Contributions Policy and supporting statement of proposal are being consulted on alongside this consultation document. The policy determines how Council will recover development and financial contributions to cover the cost of capital expenditure which is necessary to service growth and associated demand for development in Southland District. The policy is unchanged from 2015.
Where to find out more You can find a whole lot of extra supporting information, including the Draft Long Term Plan, on our website – www.southlanddc.govt.nz. Below we’ve listed the extra Long Term Plan information that’s available online and what page of the consultation document it relates to.
Detailed Project/ Option Info More detail about specific projects for the Around the Mountains Cycle Trail; Te Anau Sewerage Options for the Kepler Block; Open Spaces Priority Setting Report
Activity Management Plans (AMPs)Detailed plans about activities and proposed levels of service, changes in demand, how assets are managed and financial forecasts
PoliciesRevenue and Financing (setting out how the Council will fund its activities); Development and Financial Contributions; Investment and Libaility; Rates
Strategic Framework Sets out our vision, mission, outcomes and priorities
Infrastructure Strategy 2018 - 4830-year plan for the community’s key infrastucture
Financial Strategy 2018 - 28How Council’s finances will be managed
Fees and Charges 2018 - 19 Detail about the fees that the Council charges and proposed changes
Schedule of Projects 2018-28A list of all the projects included in the plan for 10 years
Page 4
Page 16-18
Page 18-23
Page 20
Page 26-28
Page 8-15
Page 24-25
Page 8-13
29
Audit Opinion
Independent auditor’s report on Southland District Council’s Consultation Document for its proposed 2018-28 Long Term Plan I am the Auditor General’s appointed auditor for Southland District Council (the Council). Section 93C of the Local Government Act 2002 (the Act) requires an audit report on the Council’s consultation document. We have done the work for this report using the staff and resources of Audit New Zealand. We completed our report on 27 February 2018.
We carried out our work in accordance with the International Standard on Assurance Engagements (New Zealand) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. In meeting the requirements of this standard, we took into account particular elements of the Auditor General’s Auditing Standards and the International Standard on Assurance Engagements 3400: The Examination of Prospective Financial Information that were consistent with those requirements.
We assessed the evidence the Council has to support the information and disclosures in the consultation document. To select appropriate procedures, we assessed the risk of material misstatement and the Council’s systems and processes applying to the preparation of the consultation document.
We did not evaluate the security and controls over the publication of the consultation document.
Basis of opinion
30
OpinionIn my opinion:
• the consultation document provides an effective basis for public participation in the Council’s decisions about the proposed content of its 2018-28 long term plan, because it: - fairly represents the matters proposed for inclusion in the long term plan; and
- identifies and explains the main issues and choices facing the Council and district, and the consequences of those choices; and
• the information and assumptions underlying the information in the consultation document are reasonable.
Responsibilities of the Council and auditor
The Council is responsible for:
• meeting all legal requirements relating to its procedures, decisions, consultation, disclosures, and other actions associated with preparing and publishing the consultation document and long term plan, whether in printed or electronic form;
• having systems and processes in place to provide the supporting information and analysis the Council needs to be able to prepare a consultation document and long term plan that meet the purposes set out in the Act; and
• ensuring that any forecast financial information being presented has been prepared in accordance with generally accepted accounting practice in New Zealand.
I am responsible for reporting on the consultation document, as required by section 93C of the Act. I do not express an opinion on the merits of any policy content of the consultation document.
Independence
31
In carrying out our work, we complied with the Auditor General’s:
• independence and other ethical requirements, which incorporate the independence and ethical requirements of Professional and Ethical Standard 1 (Revised); and
• quality control requirements, which incorporate the quality control requirements of Professional and Ethical Standard 3 (Amended).
Other than our work in carrying out all legally required external audits, we have no relationship with or interests in the Council.
Ian Lothian
Audit New ZealandOn behalf of the Auditor General, Dunedin, New Zealand
How to have your say All written feedback must be received by 9am Monday 9 April 2018. If you would like to meet with Council to present your views please email [email protected] or contact us on 0800 732 732 by 9 April and let us know what topics you would like to discuss.
Notes of any feedback we get will be taken and included in a report that will go to Council deliberations in May.
Scan and email it [email protected]
Bring it in to one of our offices
Provide online feedback We would prefer to receive your feedback online. It’s easier for us to manage that way. Go to southlanddc.govt.nz and click on the Long Term Plan Consultation Document 2018-2028 link on the front page of our website.
If you are unable to send us your feedback online, please fill in the attached form and Post it toLong Term Plan 2018-28Southland District CouncilPO Box 903,Invercargill 9840
32