Long Term Community Plan 2012-2022 - Hurunui District Council
Long Term Community Plan 2012-2022 - Hurunui District Council
Long Term Community Plan 2012-2022 - Hurunui District Council
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ft <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong>-<strong>2022</strong><br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> - <strong>2012</strong>-<strong>2022</strong>
www.hurunui.govt.nz<br />
66 Carters Road<br />
PO Box 13<br />
Amberley 7441<br />
Phone: 03 314 8816<br />
Fax: 03 314 9181<br />
email: info@hurunui.govt.nz<br />
web: hurunui.govt.nz<br />
Front Cover - Overlooking the Waiau Township from the Leader Road.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Contents<br />
Introduction<br />
5 Welcome from the Mayor and CEO<br />
9 About the <strong>Plan</strong><br />
11 How Your Rates are Spent<br />
12 Key Issues<br />
20 Financial Strategy<br />
32 Statement Concerning Balancing<br />
of the Budget<br />
34 <strong>Community</strong> Outcomes<br />
36 Aligning Our <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> with the<br />
Government’s Drivers for Economic<br />
Growth<br />
40 Water Management<br />
43 Sustainability<br />
Township Profiles<br />
46 <strong>Hurunui</strong> <strong>District</strong> Profile<br />
52 Amberley Ward Profile<br />
55 Amuri-<strong>Hurunui</strong> Ward Profile<br />
60 Cheviot Ward Profile<br />
62 Glenmark Ward Profile<br />
65 Hanmer Springs Ward Profile<br />
<strong>Council</strong> Activities<br />
69 Introduction<br />
71 Water Supply<br />
79 Sewerage<br />
84 Stormwater and Drainage<br />
88 Roads and Footpaths<br />
94 <strong>Community</strong> Services and Facilities<br />
96 <strong>Community</strong> Services<br />
102 Property<br />
108 Reserves<br />
112 Environment and Safety<br />
115 Emergency Services<br />
119 Resource Management<br />
122 Compliance and Regulatory<br />
Functions<br />
126 Waste Minimisation<br />
130 <strong>District</strong> Promotion<br />
135 Hanmer Springs Thermal Pools and Spa<br />
141 Governance<br />
Financial Information<br />
146 Financial Introduction<br />
148 Forecasting Assumptions<br />
153 Statement of Accounting Policies<br />
171 Funding Impact Statement (and Rates<br />
System)<br />
182 Rates System<br />
193 Reserve Funds<br />
198 <strong>Council</strong> Controlled Organisations<br />
<strong>Council</strong> Policies<br />
200 Policy Introduction<br />
201 Development Contributions Policy<br />
217 External Liability Management Policy<br />
219 Investment Policy<br />
221 Rates Remission for Biodiversity<br />
Policy<br />
222 Rates Remissions on Land Affected by<br />
Natural Calamity Policy<br />
223 Reserves Funding Policy<br />
224 Revenue and Funding Policy<br />
251 Significance Policy<br />
258 Treasury Risk Management Policy<br />
262 Internal Financing Policy<br />
Appendices<br />
265 Representatives of our <strong>District</strong><br />
266 Waste Management and<br />
Minimisation <strong>Plan</strong> Summary<br />
268 <strong>Hurunui</strong> Waiau Zone Implimentation<br />
Programme<br />
270 Water and Sanitary Services<br />
Assessment Summary<br />
272 Levels of Service Water and Sewer<br />
275 Rates: Sample Properties<br />
281 Independent Auditor’s Report<br />
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www.hurunui.govt.nz<br />
Introduction<br />
5 Welcome from the Mayor and CEO<br />
9 About the <strong>Plan</strong><br />
11 How Your Rates are Spent<br />
12 Key Issues<br />
20 Financial Strategy<br />
32 Statement Concerning Balancing<br />
of the Budget<br />
34 <strong>Community</strong> Outcomes<br />
36 Aligning Our <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> with the<br />
Government’s Drivers for Economic<br />
Growth<br />
40 Water Management<br />
43 Sustainability<br />
4
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Winton Dalley<br />
Mayor<br />
Welcome from the Mayor and CEO<br />
Andrew Dalziel<br />
Chief Executive Officer<br />
Hello everyone and welcome to <strong>Council</strong>’s <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong><br />
- <strong>2022</strong>. In our introduction, we summarise some important<br />
themes and points to help you gain an overall understanding of<br />
what is in this ten year plan and what it may mean for you and<br />
for our district.<br />
We review our 10 year plan every three years and in the two<br />
in-between years, we prepare Annual <strong>Plan</strong>s based on the 10<br />
year plan. We do our best to plan appropriately for the coming<br />
years, but things will and do happen that are beyond our control,<br />
hence the need for regular reviews. For example, no amount<br />
of planning would have prepared us totally for the devastating<br />
earthquakes that hit the Canterbury Region. Although the<br />
<strong>Hurunui</strong> <strong>District</strong> suffered comparably less direct damage than<br />
Christchurch City, Waimakariri and Selwyn <strong>District</strong>s, the impact<br />
on us has still been huge and had a major influence on this<br />
plan. When we last reviewed our plan three years ago, we were<br />
optimistic about the economy picking up more quickly than it<br />
has done. We were optimistic that our district would grow<br />
at a much faster pace than has actually been the case. Our<br />
recent updated population estimate of 11,330 residents shows<br />
low growth. With the census being postponed because of the<br />
earthquakes, we will not be able to confirm our population<br />
and district statistics until the results of the 2013 census are<br />
released in 2014.<br />
One of the most challenging aspects of planning is finding the<br />
right balance between delivering expected levels of service at an<br />
affordable cost. We invited you, our residents and ratepayers, to<br />
submit on our proposals in March and April <strong>2012</strong>. About 130<br />
of you did just this and as a result of your input, we were able<br />
to confirm many of our proposals and include other matters<br />
we had not considered previously. We constantly challenge<br />
ourselves over what is reasonable, what is sustainable into the<br />
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www.hurunui.govt.nz<br />
future, who should pay, and how to meet the expectations of<br />
our communities. The Government has expressed concern<br />
over high rating increases and expects councils to be restrained.<br />
Whereas we agree, unfortunately dramatic increases in our<br />
insurance costs, the new legislative requirement to meet New<br />
Zealand drinking water standards, and funding sewer and<br />
stormwater improvements, mean that we too have higher rating<br />
increases than we would have preferred.<br />
As a result of the <strong>Council</strong>’s decisions after considering public<br />
submissions, the increase in the <strong>2012</strong>/2013 year has reduced<br />
from 6.94% (what we said in the draft <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>), down to<br />
5.83%. The downside is the flow on effect to the 2013/2014 and<br />
2014/2015 years’ rates which will increase from 4.80% to 5.77%<br />
for 2013/2014 and from 4.62% to 5.37% in the 2014/2015 year.<br />
The primary causes for the increases in our rate projections<br />
can be attributed to the following items, all of which are further<br />
explained in the ‘key issues’ section of this plan.<br />
• Insurance has significantly risen as a direct result of the<br />
Canterbury earthquakes and other natural disasters,<br />
such as the Queensland floods. We have traditionally had<br />
comprehensive insurance cover, and we have budgeted to<br />
continue to do so.<br />
• We face huge capital outlay to become compliant with the<br />
legislated New Zealand Drinking Water Standards. The<br />
good news is that we will no longer have any of our water<br />
schemes on permanent boil water notices; but it comes at a<br />
price. We will be treating the water of our at-risk drinking<br />
water intakes in the <strong>2012</strong>/13 year. This will enable us to be<br />
compliant in the short term but this is only an interim step.<br />
In the long term we will need to upgrade our schemes by<br />
2027. To make this affordable, we will commence rating<br />
for the estimated $14 million (in today’s dollars), in the<br />
2015/2016 year.<br />
• In recent years, we have incurred significant costs in<br />
upgrading some of our water supplies, sewer schemes and<br />
stormwater systems. The work undertaken has resulted<br />
in increased debt for those activities and we are at a stage<br />
where the interest and debt repayments need to be made<br />
and these have to be funded through rates.<br />
There are a number of other aspects that influenced the<br />
development of this <strong>Plan</strong>. We were guided by our proposed new<br />
vision of <strong>Community</strong> partnership in growth and wellbeing,<br />
as well as our core principles:<br />
• Focus on core services<br />
• Financial responsibility and affordability<br />
• Continuous improvement in service to everyone in our<br />
district<br />
• Facilitate appropriate growth in the district<br />
We have confirmed this new vision through the long term<br />
plan consultation process. It builds upon our previous vision<br />
which was based on a ‘wellness’ concept (<strong>Hurunui</strong> Wellness:<br />
“In <strong>Hurunui</strong>, we live the lives the rest of the world would<br />
love to live”). We wanted to further define it and convey that<br />
everything we do, we do in partnership with our communities.<br />
With your support for our plan and the services, infrastructure<br />
and facilities we provide and you pay for, we have confidence<br />
that we will be meeting the aspirations or expectations of our<br />
communities, which contribute to wellness and wellbeing.<br />
Important contributors to this <strong>Plan</strong> have been the many people<br />
in our district who are members of our boards and committees.<br />
In particular, we have taken into account the views of the Ward<br />
Committees and the Hanmer Springs <strong>Community</strong> Board on the<br />
submissions received affecting each of their respective wards.<br />
These groups, having been chosen by their local communities,<br />
provide valuable insight into what is considered important<br />
locally.<br />
All submissions were considered in the context of affordability,<br />
priorities for the district and Government’s new bill, ‘Better<br />
Local Government’. This bill, expected to be passed around<br />
September <strong>2012</strong>, aims to provide better clarity about council’s<br />
roles, stronger governance, improved efficiency and more<br />
responsible fiscal management. The Government is concerned<br />
about increased public spending and debt levels and is requiring<br />
both central and local government to improve the efficiency<br />
of delivering public services and take a prudent approach to<br />
public debt. The new bill proposes that councils will have a new<br />
purpose -“providing good quality local infrastructure, public<br />
services and regulatory functions at the least possible cost to<br />
households and business”. This will replace the current purpose<br />
which references a responsibility to the social, economic,<br />
environmental and cultural well-being of communities. In<br />
addition, the Government is proposing to introduce legislation<br />
around fiscal responsibility to limit council expenditure growth<br />
to no faster than inflation and population growth. A strong<br />
<strong>Hurunui</strong> 10-Year Timeline<br />
<strong>2012</strong>/13<br />
Representation Review<br />
Nine New Miox Water Treatment Installations<br />
Targeted Tourism Rate and<br />
<strong>District</strong> Promotion Review<br />
Earthquake Prone Building Assessments<br />
Cheviot Library Relocation<br />
Local Government Elections<br />
Earthquake Prone Building Assessments<br />
Review of the <strong>District</strong> <strong>Plan</strong> completed<br />
2013/14<br />
2014/15<br />
Central Government Elections<br />
Earthquake Prone Building Assessments<br />
Hanmer Springs <strong>Community</strong> Hall Extension<br />
<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Review<br />
Drinking Water upgrade<br />
Hanmer Springs Sewerage Treatment<br />
<strong>Plan</strong>t Upgrade<br />
Hanmer Springs Sports Stadium<br />
2015/16<br />
2016/17<br />
Local Government Elections<br />
Cheviot Medical Centre Upgrade or<br />
Rebuild<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
message coming through is for council’s to stick to core business.<br />
All this has an impact on what we decided to provide for now<br />
and into the future.<br />
Thanks to your support, we have confirmed a number of the<br />
proposals that we put to you. For example, we will proceed<br />
with our intent to review our method of rating for tourism<br />
and general district promotion in <strong>2012</strong>/13. This is one example<br />
of where your views and suggestions have confirmed that it is<br />
timely to review our rating model. You also told us that you<br />
agree with our plan to assess earthquake prone commercial<br />
and public buildings in the district sooner rather than later in<br />
the interests of public safety, despite not being required to do<br />
this. Likewise, through your submissions, we have been able to<br />
confirm our direction to provide funds for legal advice relating<br />
to resource consents, district plan changes and policy matters;<br />
and to do our best to maintain our roading levels of service<br />
despite there being less funding available.<br />
Many of you submitted on local issues affecting your areas.<br />
Through hearing from you, we have been able to confirm our<br />
intent to: provide for a new or upgraded medical centre in<br />
Cheviot in 2016/17; move the Cheviot community library from<br />
the school into the Cheviot service centre in <strong>2012</strong>/13; continue<br />
to work with you to finalise any proposal for a swimming pool<br />
in Amberley; enhance a number of facilities in Hanmer Springs<br />
(eg: the sports ground and community hall); and continue our<br />
work to secure access to the Hanmer Heritage Forest. We<br />
also confirmed our proposal to fund the Hanmer Springs<br />
<strong>Community</strong> Board through Hanmer Springs ratepayers (rather<br />
than district wide rates). Few people mentioned the proposal<br />
to build a public toilet in Rotherham in 2017/18 funded through<br />
the district rate, but we agreed to retain the budget for this in<br />
the meantime but will retest the need for this again in 2015<br />
before going ahead. More information about all of these items is<br />
in the ‘Key Issues’ section of this plan.<br />
We received a large number of submissions about access to<br />
the <strong>Hurunui</strong> lakes (Lake Sumner, Lake Taylor and Loch Katrine).<br />
Although this was not something we highlighted in our draft<br />
<strong>Plan</strong>, it was clearly of importance to many of you. Through the<br />
submission process, we were able to confirm our intention to<br />
continue working with other groups as well as the Department<br />
of Conservation to help resolve the common issues affecting<br />
access. Potentially this is a complex situation requiring not only<br />
significant funding, but resolving issues over public and private<br />
land ownership.<br />
We have included into this plan, a number of other items that<br />
came to our attention through submissions, such as: a $5,000<br />
contribution toward the roof repair of the Balcairn Public Hall<br />
(via Amberley amenity rates); to continue contributing $5,000<br />
per annum via a district wide rate toward the Sport NZ Rural<br />
Travel Fund; approved expenditure of $45,000 toward the septic<br />
tank replacement at the Gore Bay Camp; to spend $80,000<br />
over two years to upgrade or replace the Cheviot Hills Reserve<br />
public toilets; to extend our Smokefree Policy to include more<br />
outdoor areas gradually and within existing budgets; to spend<br />
$5,000 to promote responsible dog owner behaviour later this<br />
year; to adjust our wording in our Waste Minimisation <strong>Plan</strong> to<br />
show our desire to work toward zero waste to landfill.<br />
In light of the restrictions we face, we also had to say ‘no’ to a<br />
lot of people who requested money or initiatives that required<br />
money. Whereas these submissions had merit, they were<br />
either out of our scope or unaffordable, particularly given the<br />
Government’s bill, or we did not consider them to be essential<br />
at this time. Some of the requests we declined included: $25,000<br />
toward the Wellbeing North Canterbury’s manager’s salary;<br />
assistance toward the aquisition of a doctor’s house in Hanmer<br />
Springs; $7,500 per year to develop a sister city relationship<br />
with Honghu City, China; employing a full time forest ranger<br />
in Hanmer Springs; introducing a $5 bounty fee for possums;<br />
contributing $25,000 toward a men’s support programme to<br />
reduce suicide; introducing an eagle breeding programme.<br />
As a result of the continuing downturn in the tourism industry in<br />
Canterbury, the <strong>Council</strong> has reforecast the revenue projections<br />
for the Hanmer Springs Thermal Pools & Spa. As a result, the<br />
revenue derived from the Thermal Pools operation was reduced<br />
from $6.671 million to 6.4 million. There was also a reduction<br />
of $65,000 in surplus forecast from the cafe operation and a<br />
$31,000 reduction in other revenue sources.<br />
With the benefit of some quantity survey estimates, there was<br />
a reassessment of the capital expenditure for the changing<br />
rooms and administration building for the pools operation from<br />
$1 million to $2 million.<br />
For the first three years, the reduction in the revenue has<br />
resulted in the <strong>Council</strong> spending more on reserve - based<br />
expenditure than it is earning from the surpluses derived from<br />
the Hanmer Springs Thermal Pools & Spa. but the <strong>Council</strong> is<br />
comfortable in funding this from utilising some of the existing<br />
reserve balance that has been generated by the surpluses in the<br />
past.<br />
CentralGovernment Elections<br />
Rotherham public Toilets<br />
Local Government Elections<br />
2018/19<br />
2017/18 2019/20<br />
Representation Review<br />
<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Review<br />
2020/21<br />
Central Government Elections<br />
<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Review<br />
2021/22<br />
7
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How <strong>Council</strong> services are rated can be contentious and difficult<br />
to understand. We use a variety of different rating methods,<br />
for example, we rate some services across the district and<br />
others across wards only. We also fund some activities through<br />
targeting particular users (as how tourism is currently funded).<br />
The Financial Strategy and Revenue and Funding Policy in this<br />
<strong>Plan</strong> both provide information to give a better understanding of<br />
how activities and service are funded and the rationale behind<br />
that. The Financial Strategy is a new requirement under the<br />
Local Government Act.<br />
Full details of the rate movements year by year are shown in<br />
the Funding Impact Statement in this <strong>Plan</strong>. We must emphasise<br />
that amenity and targeted rate increases vary considerably<br />
across the district according to the projects planned for each<br />
ward. For example, there are differing levels of expenditure for<br />
upgrades and debt repayment for each water scheme; there is a<br />
new medical centre proposed for Cheviot; a number of projects<br />
planned for Hanmer Springs; and so on. The sample property<br />
analysis in the appendices at the back of this document, gives a<br />
picture of the impact of rates for the <strong>2012</strong>/2013 year for the<br />
various rating areas. You can find out what the rates are for your<br />
property for any year up to year 10 of this plan by contacting us<br />
directly or going onto our website.<br />
Despite the increase to our rates, we have taken a conservative<br />
approach to this plan. We assure you, as ratepayers and<br />
residents, that we have applied our best efforts to develop this<br />
long term plan diligently, to create what we believe is a robust<br />
and comprehensive strategic framework for <strong>Hurunui</strong> for the<br />
next ten years, notwithstanding the challenges and uncertainties<br />
we all presently face. Finally, a sincere thank you to those of<br />
you who took the time to write a submission to the draft plan<br />
and to those of you who presented their submission personally<br />
to the <strong>Council</strong>. As a result of your efforts, you have helped us<br />
determine this final long term plan.<br />
8
About the <strong>Plan</strong><br />
Introduction<br />
The Local Government Act 2002 requires all councils to have a<br />
<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> (LTP). The <strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong><br />
is our LTP.<br />
This plan is the combined effort of <strong>Council</strong> and the district’s<br />
community. Many of our sub committees have been actively<br />
involved in preparing plans for their townships and wards<br />
and their efforts are reflected in this plan. So are the views<br />
of the many individuals who told us what they consider to be<br />
important for the future of our district. Many people have put<br />
considerable numbers of hours into the development of this<br />
plan. The plan covers a 10 year period from 1 July <strong>2012</strong> to 30<br />
June <strong>2022</strong>.<br />
Updating the <strong>Plan</strong><br />
This plan will be updated and revised every 3 years. The plan is<br />
one of the main ways you can influence what the <strong>Council</strong> does<br />
every 3 years.<br />
In the years between each <strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong><br />
review, we will prepare an Annual <strong>Plan</strong> which will focus on the<br />
budgets of the particular year of publication. This information<br />
will be taken from the <strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>.<br />
Guide to the <strong>Plan</strong><br />
The following is a brief guide about the information contained in<br />
each section of the plan.<br />
Introduction - This section sets out key issues that we want<br />
to bring to your attention and want to hear from you on.<br />
This section also contains a new and important piece of this<br />
plan – the Financial Strategy. This will tell you about our main<br />
financial challenges and what our financial position is – how we<br />
can afford the services that we provide and how we intend to<br />
continue to fund these. You will find out how your rates are<br />
spent, and the community outcomes we consider important to<br />
our communities.<br />
Township Profiles – Here you will find key information about<br />
the district each ward and community rating area, including,<br />
demographic data, key priorities and amenity rates.<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
well as financial statements required by law.<br />
Policies – Provides the key <strong>Council</strong> policies (including financial<br />
policies and principles) to assist with decision making and<br />
planning.<br />
Appendices – This section contains various summaries of<br />
strategies and plans that are important to include to provide<br />
more context and information relating to our services.<br />
Monitoring the <strong>Plan</strong><br />
At the end of each financial year, we complete an Annual Report.<br />
In this report, we will state how we have performed against<br />
what we said we were going to do in this plan and at what cost.<br />
Changing the <strong>Plan</strong><br />
If any significant changes need to be made to the <strong>Hurunui</strong><br />
<strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> before it is formally revised at<br />
each three year interval, the proposed changes will be publicly<br />
notified to give anyone affected an opportunity to have their say<br />
before <strong>Council</strong> decides whether or not to make the proposed<br />
changes.<br />
Our ‘Significance Policy’ guides us in determining the importance<br />
of an issue and the possible impact on the community. When an<br />
issue is deemed significant, we will consider how best to consult<br />
you. The significance policy is included in the Policy section.<br />
The <strong>Plan</strong> Does Not Include GST<br />
When reading this document, please be aware that all of<br />
the figures quoted in the LTP are GST exclusive except the<br />
‘Statement of Rating Policy’ and the ‘Development Contributions<br />
Policy’.<br />
Inflation<br />
The plan has been developed on an inflation adjusted basis<br />
to comply with accounting standards. Details of the inflation<br />
assumptions used are outlined on page 158.<br />
<strong>Council</strong> Activities – Gives useful information for each <strong>Council</strong><br />
activity such as water, roading, community services etc, and<br />
financial information for each activity, as well as any major<br />
priorities or projects planned.<br />
Financial Overview – This section is where financial<br />
information is summarised. It gives the 10 year capital<br />
expenditure programme and forecast financial statements as<br />
9
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Relationship Between the <strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> and Other Documents<br />
Annual<br />
Repor t<br />
Knowing what the <strong>Council</strong><br />
has achieved<br />
<strong>Community</strong><br />
Outcomes<br />
Knowing what is important for the<br />
future wellbeing of our community<br />
Knowing how it s going<br />
to be paid for<br />
Annual<br />
<strong>Plan</strong><br />
Knowing what the <strong>Council</strong> is doing to<br />
meet community outcomes<br />
Hur unui <strong>Community</strong><br />
<strong>Long</strong> Ter m <strong>Plan</strong><br />
The LTP integrates strategies, policies and activities in the<br />
context of identified community outcomes, and in a way that<br />
promotes public accountability and integrated decision making.<br />
All planning that we do lines up with the LTP, as well as other plans,<br />
such as our asset management plans and waste management<br />
plans, and linking to other non-mandatory strategies such as<br />
the <strong>Hurunui</strong> <strong>Community</strong> Road Safety Strategy.<br />
The activities set out in this LTP contribute to the achievement<br />
of the community outcomes, and promote the <strong>District</strong>’s social,<br />
cultural, economic or environmental wellbeing.<br />
10
How Your Rates are Spent<br />
The <strong>Council</strong>’s Projected Income and Expenditure for <strong>2012</strong> / 2013<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Operating Income of $30.1 million for the <strong>2012</strong>/2013 year<br />
Hanmer Springs<br />
Thermal Pools and<br />
Spa<br />
32%<br />
Other Income<br />
10%<br />
General Rates<br />
19%<br />
Targeted Rates for<br />
Water Supplies<br />
2%<br />
NZTA Subsidies and<br />
Other Grants<br />
11%<br />
Development<br />
Contributions<br />
1%<br />
Targeted Rates for<br />
Other Services<br />
25%<br />
Operating Expenditure of $30.3 million for the <strong>2012</strong>/2013 year<br />
Governance<br />
2%<br />
Corporate Services<br />
16%<br />
Water Supplies<br />
11%<br />
Sewerage<br />
2%<br />
Stormwater and<br />
Drainage<br />
0%<br />
Roads and Footpaths<br />
19%<br />
Hanmer Springs<br />
Thermal Pools and<br />
Spa<br />
25%<br />
<strong>District</strong> Promotion<br />
2%<br />
Waste Minimisation<br />
6%<br />
Compliance and<br />
Regulations<br />
2%<br />
<strong>Community</strong><br />
Services<br />
Property<br />
3%<br />
4%<br />
Reserves<br />
4%<br />
Emergency Services<br />
1%<br />
Resource<br />
Management<br />
3%<br />
Capital Expenditure of $10.8 million for the <strong>2012</strong>/2013 year<br />
Hanmer Springs<br />
Thermal Pools and<br />
Spa<br />
25%<br />
Corporate Services<br />
5%<br />
Water Supplies<br />
19%<br />
Sewerage<br />
8%<br />
Emergency Services<br />
2%<br />
Reserves<br />
2%<br />
Property<br />
1%<br />
<strong>Community</strong> Services<br />
1%<br />
Stormwater and<br />
Drainage<br />
3%<br />
Roads and Footpaths<br />
34%<br />
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Key Issues<br />
Introduction<br />
In the draft long term plan, we highlighted a number of issues<br />
that we wanted your view on before we came to a final decision.<br />
We received many submissions on these topics and this section<br />
sets out the decisions we made about each issue. Table 2 at the<br />
end of this section shows how each item will be funded.<br />
Drinking Water Standards<br />
In recent years, the Government has placed strong emphasis<br />
on the quality and availability of drinking water for all New<br />
Zealanders, irrespective of where they live. The standard of<br />
drinking water throughout the country has been variable and<br />
in many places, particularly rural New Zealand, below standard.<br />
New Zealand drinking water standards have been developed and<br />
recently revised, and they require all councils to make significant<br />
advancements to meet these standards.<br />
Most of the drinking water in the <strong>Hurunui</strong> <strong>District</strong> fails to meet<br />
the new drinking water standards and currently, eight of our<br />
communities are advised to boil water before they drink it.<br />
The drinking water standards are concerned mainly with three<br />
specific areas: water quality; how we will know our drinking<br />
water is meeting the standards; and what we will do about it if it<br />
doesn’t. There are substantial fines for not complying with the<br />
new legislation – up to $200,000 for an offence and $10,000 for<br />
each day of continued non-compliance for each of our 22 water<br />
supply sources.<br />
In addition, the Health (Drinking Water) Amendment Act 2007<br />
requires all drinking water suppliers to have Public Health Risk<br />
Management <strong>Plan</strong>s (PHRMP) in place outlining how to safely<br />
manage drinking water. This is significant because we have a duty<br />
to ensure the drinking water we supply is safe to drink. (The<br />
same applies for all other councils and private suppliers.) In our<br />
district, we have 22 water supply sources and each needs its own<br />
PHRMP to be completed at various times between July 2014 and<br />
July 2016, depending on how each water supply is defined (based<br />
on the number of customers each supply serves).<br />
These requirements are financially challenging. We have no<br />
option but to plan toward compliance, but the cost to do so is<br />
immense. To upgrade our water systems to be fully compliant,<br />
we have estimated that it will cost $14 million in today’s dollars,<br />
and a further $484,000 per year solely to operate the upgraded<br />
schemes. This caused us a great deal of concern and we have<br />
raised the affordability issue for a small, rural council such as<br />
ours to meet these considerable costs with the Ministry of<br />
Health. We have come to a compromise to achieve drinking<br />
water compliance no later than ten years after the final approval<br />
date for each respective PHRMP, which will be between 2024<br />
and 2027. The compromise involves two main phases to manage<br />
the affordability issue.<br />
First Phase<br />
As a minimum, we will provide drinking water to our consumers<br />
that is bacteriologically free and is safe to consume. To do this<br />
we will need to lift all permanent boil water notices on our<br />
current schemes. This will be achieved using improved interim<br />
technologies to our at risk water intakes that will subsequently<br />
meet these desired outcomes.<br />
Therefore the first phase proposes nine new Miox installations<br />
costing $758,000 for the <strong>2012</strong>/2013 financial year. The at risk<br />
drinking water intakes are: (1) Ashley Rural; (2) Waiau Rural;<br />
(3) Cheviot – Parnassus; (4) Cheviot – Blythe; (5) Cheviot –<br />
Kaiwara; (6) <strong>Hurunui</strong> Rural – No.1; (7) <strong>Hurunui</strong> Rural – Peaks;<br />
(8) <strong>Hurunui</strong> Rural – Lower Waitohi; and (9) Waipara Township.<br />
The existing MIOX plant serving the targeted Cheviot and Gore<br />
Bay Township community will be moved to the intake to serve<br />
and improve the full water reticulation pipeline.<br />
This capital costs and on-going operational costs involved<br />
is to be met by a special targeted rate for each dwelling that<br />
benefits from the water treatment. It is estimated to cost<br />
affected ratepayers approximately $100 per year to fund both<br />
the operational and capital costs. This will affect an estimated<br />
1,463 dwellings in total. We plan to stage the implementation<br />
of this funding over three years, therefore those ratepayers will<br />
be charged $33 in <strong>2012</strong>/13, $66 in 2013/14, and the full $100<br />
in 2014/15. The exception to this special targeted rate is for<br />
the consumers on the Ashley Rural water scheme. The cost of<br />
their Miox installation will be met solely by those properties<br />
connected to that scheme as part of their standard, unit rate.<br />
This is because the majority of the consumers of the Ashley<br />
Rural Water Supply reside outside the <strong>Hurunui</strong> <strong>District</strong> and<br />
already have a special rating arrangement in place.<br />
All other district-wide intakes are either safe deep source<br />
water or have not had any e-coli non-compliance over the last<br />
three years, thus perceived as safe at present. These will be<br />
continuously monitored for further improvement if the ‘safestatus’<br />
changes. This approach will unfortunately not eliminate<br />
the issue of temporary boil water notices from time to time,<br />
when tested and triggered e-coli contamination is related to<br />
post-intake drinking-water pipeline breaches, e.g. pipe breaks,<br />
etc.<br />
Second Phase<br />
The second phase involves the upgrading of the water schemes<br />
to full compliance, and will mean the end to the Miox treatments.<br />
The capital cost in today’s money is $14 million, and we plan to<br />
implement this between 2024 and 2027. To manage the cost,<br />
this will be funded through a district wide general rate. This<br />
is different to how we currently fund water supplies, which<br />
is through targeted rates for individual schemes. We do not<br />
believe the targeted method of funding is possible or a fair way of<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
funding for any of our ratepayers to upgrade our drinking water<br />
to legislated standards. There are simply too few people on the<br />
smaller community schemes in particular, to be able to pay for<br />
these upgrades. By funding via a district wide rate, the cost is<br />
spread across all ratepayers, hence making it more affordable<br />
and achievable over all. This does mean that everyone pays,<br />
whether or not on a private water scheme.<br />
Although the capital works required won’t start being built until<br />
2024, we are going to start rating from 2015/16 to build up<br />
funds which will offset the full capital cost when it is necessary.<br />
The cost of this will be $41 per property and this rate fund,<br />
along with accumulating interest, should provide a fund of<br />
approximately $3 million to assist with meeting the capital cost.<br />
The method by which the balance of the capital work and the<br />
on-going operational costs will be met, will be refined over time.<br />
This will again be a topic for discussion when we review our<br />
long term plan again in 2015.<br />
Sewer Improvements<br />
Disposal of treated wastewater direct to waterways has been<br />
a common practice nationally in the past, but this approach is<br />
no longer considered sustainable or environmentally acceptable.<br />
In our district, we have seven wastewater treatment plants<br />
using oxidation ponds as an effluent treatment process. These<br />
treatment plants are located at Amberley, Hanmer Springs,<br />
Cheviot, Greta Valley, Motunau Beach, Hawarden and Waikari.<br />
We are going to do more work to our Hanmer Springs<br />
wastewater treatment plant so that the treated wastewater<br />
is disposed onto land instead of into the waterway (which<br />
is a resource consent condition). We are investigating the<br />
best options available to us in Hanmer Springs for both land<br />
acquisition and improved effluent treatment. The cost for this<br />
sewer land disposal work is $1,200,000 factored into year<br />
2015/16 and will be paid for by the Hanmer Springs Ward<br />
ratepayers. Other planned work includes improving dissolved<br />
oxygen levels in the treatment ponds to eliminate issues such<br />
as odour and reduced treatment efficiencies. For this work we<br />
plan to spend $220,000 in <strong>2012</strong>/13.<br />
Cheviot’s wastewater treatment plant (WWTP) disposal<br />
system is spray irrigation to land or onto the overland flow area<br />
when the land disposal area is saturated. We are investigating<br />
possible long-term treatment options (long term capacities; soil<br />
permeability and content analysis; seasonal effects, flow/water<br />
quality/ecology of Crystal Brook and neighbouring groundwater<br />
quality assessments) associated with treatment and disposal of<br />
wastewater from the Cheviot WWTP. We will work with the<br />
Canterbury Regional <strong>Council</strong> to agree on the best solution<br />
going forward in <strong>2012</strong>/13. This plant’s resource consent expires<br />
11 September 2014, when the Canterbury Regional <strong>Council</strong> will<br />
decide if improvements are required to renew this resource<br />
consent. No disposal to waterways is allowed. We are planning<br />
to pay for this through usual operating costs at no increase to<br />
ratepayers.<br />
Amberley and Waikari have existing treated effluent disposal<br />
to land, with Greta Valley and Motunau Beach using a primary<br />
option of disposal to land and secondary option to waterway<br />
when the land is saturated, for example, seasonal wet weather<br />
conditions. Hawarden’s system is disposal to waterway until<br />
changes are effected through the resource consent renewal,<br />
which will be in 2027 or subject to any new requirements under<br />
the Natural Resources Regional <strong>Plan</strong> (NRRP) review currently<br />
underway at Canterbury Regional <strong>Council</strong>. We will consider<br />
more natural methods of disposal, such as wetland filtration<br />
if proven feasible and cost effective. All systems are closely<br />
monitored and audited by the Canterbury Regional <strong>Council</strong> for<br />
compliance with stringent consent conditions to protect and<br />
enhance the environment surrounding these treatment plants.<br />
Stormwater Improvements<br />
We have been working on a programme of stormwater<br />
improvements to the Amberley township and Amberley<br />
and Leithfield Beach communities since 2008 when we had<br />
significant property flooding following high rainfall events.<br />
The improvements have taken a disappointingly long time<br />
to implement due to the resource consent process and<br />
Environment Court hearings process. So far, only two major<br />
physical works have been completed – the flood diversion<br />
from Dock Creek along Lawcocks Road, and a piped outfall of<br />
the Leithfield Outfall Drain to the sea. By the time this plan<br />
is finalised, the flood diversion works in the Amberley swamp<br />
area (to include an outlet culvert under Stanton Rd) and the<br />
area from Dry Gully to the Mimimoto Lagoon will have been<br />
completed, as well as the new pipelines in Amberley.<br />
A flood flow diversion from the Eastern Drain across to the<br />
Amberley North lagoon is planned in <strong>2012</strong>/13 to complete the<br />
flood mitigation works. Detailed design and land ownership<br />
issues still have to be finalised. $294,000 has been budgeted for<br />
this work (to do detention ponds and upgrades), with a further<br />
$84,000 in the 2016/17 budget for Chamberlain Park filters.<br />
This will be funded through a special rate across Amberley Ward.<br />
Applications for global consents to discharge stormwater from<br />
the Amberley urban area and new residential developments in<br />
Hanmer Springs will be made in the <strong>2012</strong>/13 year. Both of these<br />
will be funded via a separate rate for the Amberley Wards and<br />
Hanmer Springs as well as development contributions.<br />
We will be recruiting a stormwater engineer in 2013/2014 to<br />
manage this area of our work. This engineer will be responsible<br />
for developing district-wide stormwater catchment and<br />
management plans, and undertake the range of tasks required to<br />
ensure we have effective stormwater systems in place, inclusive<br />
of appropriate maintenance regimes.<br />
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Targeted Tourism Rate and <strong>District</strong> Promotion<br />
Our tourism promotion and limited district promotion is<br />
currently carried out through one of our council committees<br />
called the ‘<strong>Hurunui</strong> Tourism Board’. The way we fund this is<br />
through a ‘targeted tourism rate’ which has had its share of<br />
controversy. Those who pay are ratepayers and businesses<br />
who are deemed to be involved directly in the visitor / tourism<br />
sector. From this sector, we collect $286,000 annually with an<br />
additional contribution of $45,000 from the Hanmer Springs<br />
Thermal Pools and Spa. We are concerned that we don’t yet<br />
have the funding model right and intend to review the targeted<br />
tourism rate and explore ways of funding a broader concept of<br />
‘district promotion’ or tourism in a different way.<br />
We think we can better promote the district in all aspects by<br />
adopting a broader approach, rather than just focusing only on<br />
tourism. The issue of who benefits from district promotion and<br />
who should fund it is a challenging issue and we want to develop<br />
a better way to do this. We will continue with the targeted<br />
tourism rate up to the end of the <strong>2012</strong>/13 (and have included it<br />
throughout the 10 year budget for the meantime), to allow time<br />
for a viable alternative to be developed.<br />
Having taking into account the submissions we received on<br />
this topic, we will look at how we might phase out the current<br />
targeted tourism rate in 2013/14 when a new model would take<br />
effect. We will begin working on this before the end of <strong>2012</strong><br />
around what a possible alternative model would look like. This<br />
will include looking at how to improve our promotion of the<br />
district. At this stage, we are unsure whether this new model<br />
will retain the <strong>Hurunui</strong> Tourism Board, or see the development<br />
of a new committee or board. We will continue with what we<br />
have in the meantime until an alternative is found.<br />
Cost of Insurance<br />
It will be no surprise to anyone that the cost of insurance has<br />
significantly risen as a result of the Canterbury earthquakes. The<br />
damage to Christchurch in particular and the resulting insurance<br />
liability has been unprecedented anywhere in the world before.<br />
It is now well known that globally, the insurance industry had<br />
to have a major rethink of how it could continue to provide<br />
insurance cover and still be affordable. Given that the <strong>Hurunui</strong><br />
<strong>District</strong> is tectonically active and we are periodically subjected<br />
to floods, rural fires, snow and winds, we have traditionally been<br />
well insured and cover our infrastructure and liabilities.<br />
Up until July 2011, the cost of our insurance was $212,858 per<br />
annum. This is the total bill for all <strong>Council</strong> infrastructure and<br />
liabilities, including the Hanmer Springs Thermal Pools and Spa.<br />
Our new insurance arrangement now costs $564,414 per year<br />
to cover the same infrastructure as we did in the past. This<br />
significantly contributes to our 5.84% increase in rates as the<br />
approximate increase in insurance across the organisation of<br />
$350,000 alone represents 2.73% of the total rates that were<br />
struck in the 2011/<strong>2012</strong> year.<br />
The process for renewing the insurance policies is likely to be<br />
more stringent in the future and there could be the possibility<br />
that some of our assets may not be covered by insurance, as has<br />
been the case for Christchurch City and Waimakariri <strong>District</strong><br />
<strong>Council</strong>s for the 2011/<strong>2012</strong> year. It is our intention to remain<br />
fully insured at all times.<br />
Earthquake Strengthening<br />
We have completed the first stage of a desktop review of<br />
potential earthquake prone buildings in the <strong>Hurunui</strong> district for<br />
all council owned buildings and are now currently carrying out<br />
the second stage which will include all privately owned buildings.<br />
The desk top review should be completed by December <strong>2012</strong>.<br />
The completed desk top study will show how many commercial<br />
and public buildings in the district are suspected to be earthquake<br />
prone. At this early stage we have provisional numbers of 368<br />
commercial buildings, both privately and council owned. 150<br />
are estimated to be built before 1976, and up to 90 of them are<br />
suspected to be earthquake prone, and therefore could pose a<br />
potential danger to the public. We own 68 of the commercial<br />
and public buildings built before 1976 and of these, we have<br />
confirmed 48 that are included on the first stage of the desktop<br />
study. Engineers are currently carrying out an initial evaluation<br />
procedure (IEP) of some of these buildings which will confirm<br />
whether or not they are earthquake prone.<br />
The desk top review will only provide information about<br />
buildings without looking at them in a detailed structural<br />
manner. There are certain types of building that are considered<br />
to be more earthquake prone than others and it is these that<br />
we will be focusing on. They are usually unreinforced concrete<br />
and masonry buildings, but there may be others that are also at<br />
risk. The assessment process will be carried out in accordance<br />
with the Earthquake Engineering Society of New Zealand<br />
guidelines. We will need qualified engineers to actually assess<br />
each of these buildings to confirm to us whether or not the<br />
building is potentially earthquake prone and that owners should<br />
be advised. To do this IEP assessment (without any actual repairs<br />
or remedial work), it will cost approximately $69,000 to do<br />
90 earthquake prone buildings spread evenly over the first 3<br />
years of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>. We are taking an active approach<br />
to identify and upgrade buildings at risk following the lessons<br />
learned from the Christchurch earthquakes. Obviously, we do<br />
not want a repeat of that disaster in our district.<br />
Once we have the IEP assessments from the independent<br />
engineers, we will then be able to inform property owners that<br />
we suspect that their building is earthquake prone. They will<br />
then be required to carry out a detailed engineering assessment<br />
to show how to remedy any risks to the building. Because most<br />
of the buildings are council owned, the same will apply to us. At<br />
this stage, we have not made a budget provision for any actual<br />
strengthening, repair or demolition work. We plan to decide<br />
on this once we have the information on a case by case basis.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Other owners of buildings will need to do the same once they<br />
have information provided to them. There is of course, nothing<br />
stopping anyone getting their own independent assessment at<br />
their own cost in the meantime, or seeking a second opinion.<br />
We do not have the in-house expertise to perform this work.<br />
We do know that structural engineers are highly sought after<br />
in the Canterbury region and we are making this plan on the<br />
proviso that we will be able to contract the skills we need to<br />
undertake this work.<br />
We consider this work to be vital because of the threat to life<br />
if buildings collapse. The cost for this work will be paid for this<br />
through the general rate for three years from <strong>2012</strong>/13 because<br />
of the potential impact on the general public. The general rate is<br />
funded through a portion being assessed as a fixed charge per<br />
property and the balance assessed on the capital value of the<br />
property.<br />
Cost to Defend RMA/Court Action<br />
Each year we need to get legal advice or representa tion, or<br />
specialist advice about a variety of matters relating to resource<br />
consents, district plan changes and policy de velopment.<br />
Traditionally, we have tended to under-budget for these costs<br />
as many of them are unknown when we prepare our annual<br />
budgets. However, last year we were aware of a number of<br />
situations that were going to incur legal or consultancy costs<br />
and we did make a budget provision based on that knowledge.<br />
Although we will continue to face unexpected legal costs into<br />
the future, we have decided to continue to budget what we did<br />
last year for each year of the long term plan, that is, $105,000<br />
(adjusted for inflation) annually. This will be funded through a<br />
<strong>District</strong> Rate. There will be situations where legal costs are far<br />
in excess of our budget. The most recent example of this was<br />
the cost to defend MainPower’s Mt Cass Wind Farm resource<br />
consent. The cost to ratepayers was approximately $300,000<br />
(allowing for the successful costs award against Mainpower<br />
from the Environment Court of $136,394). Legal and specialist<br />
advice comes at a price and we do not always have in-house<br />
expertise for every scenario that comes to us.<br />
Road Funding<br />
Our roads are maintained and built using subsidy funds from<br />
New Zealand Transport Agency (NZTA) and money collected<br />
through rates. This excludes state highways which are funded<br />
and maintained solely through NZTA. Three years ago,<br />
central government deliberately cut maintenance funding to<br />
all district councils, as it decided to focus on capital works to<br />
national state highways (Roads of National Significance) and<br />
the Auckland roading network needs as priorities. Central<br />
government believes that “increased funding for State Highway<br />
construction will bring benefits for national economic growth<br />
and productivity, particularly given that State Highways carry<br />
most inter-regional freight and link major ports, airports and<br />
urban areas (Government Policy Statement <strong>2012</strong>)<br />
In 2009, all Road Controlling Agencies (RCA), of which we are<br />
one, were told by the Minister of Transport to “do more with<br />
less” in terms of road maintenance financial subsidy allocations.<br />
We were tasked to find better and smarter ways of looking<br />
after our roads without relying on the previous levels of NZTA<br />
subsidy funding. To qualify for financial subsidy assistance, all<br />
RCA’s are to use Activity Management <strong>Plan</strong>s (AMP). When up<br />
to date, our AMP provides us with a better understanding of our<br />
current assets in terms of location, age and condition. This sets<br />
our works programme for the following three years in terms<br />
of maintenance, operations, renewals and capital works. This<br />
programme is submitted to NZTA as part of the Regional Land<br />
Transport Programme (RLTP). Our funding was cut by $600,000<br />
per annum on average on our RLTP for the full funding cycle<br />
covering the years from 2009 to <strong>2012</strong>. Although the approved<br />
subsidy funding was 4.5% more than the previous year’s budget,<br />
it was substantially less than that required to maintain the<br />
levels of service we wanted for our roading infrastructure. No<br />
escalation (or inflation) was added for year 2 and 3 of this<br />
programme which placed further pressure for us to “do more<br />
with less”. In the meantime, we have restructured our road<br />
maintenance contracts to get the most we can for our money<br />
and to maintain levels of service for our local roads. Indicative<br />
budgets have been released by NZTA for the three year period<br />
from <strong>2012</strong> to 2015, which is 5% less than our RLTP submission.<br />
This will result in approximately $226,000 less funding per<br />
annum across all three years. We will continue to retain our<br />
funding as previously indicated as unsubsidised work and the<br />
rate impact for roading will continue as previously stated in the<br />
plan. We have made the assumption that the reduced level of<br />
NZTA funding will continue through the life of the LTP. This has<br />
left us with a major challenge. Our Asset Management <strong>Plan</strong>s<br />
(AMPs) tell us when, how and why we need to do work on<br />
each of our roads to ensure maximum whole-of-life for this<br />
asset (maximum return on investment approach); but we do not<br />
have the required subsidised income to maintain our roading<br />
network to the level our AMPs stipulate.<br />
We have done our best to drive greater efficiencies within<br />
our current road maintenance contracts, without affecting the<br />
current levels of service. The improved collaboration between<br />
our contractors, suppliers and us using a ‘best-for-asset/bestfor<br />
contract’ approach, has provided lower contract rates<br />
that may allow us to maintain our current service levels until<br />
2014/15 (assuming no untoward event happens that damages<br />
our infrastructure). At the end of this period, our maintenance<br />
contracts will be renewed with cost escalations included. This<br />
is where we have a problem. NZTA have declared that they<br />
will not pick up contract price escalations through their road<br />
maintenance subsidy scheme. In the meantime, we have allowed<br />
for inflation adjustments to the roading costs (using the inflation<br />
assumptions) and also assumed that NZTA will continue to<br />
meet their share of those costs that are currently subsidised,<br />
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again based on the assumption that the financial assistance<br />
rate will not change over the ten year period.<br />
If NZTA do not include inflation in future subsidies, and maintain<br />
the levels of cuts to date we will have to pass the difference in<br />
costs to our ratepayers annually to maintain our current levels<br />
of service and keep the road asset life in check. If we don’t,<br />
this will leave us with a future financial shortfall that is further<br />
susceptible to maintenance cost increases through peak oil and<br />
bitumen cost increases in particular. We can either continue<br />
to put up our annual rates to provide more local unsubsidised<br />
funds to keep our roads in their current condition, or we can<br />
accept that there will be a marked deterioration in our road<br />
conditions (structurally, appearance and driving quality). The<br />
impact of this is that our roading assets life will reduce and will<br />
eventually devalue over time, thus not meet their initial designed<br />
criteria outcomes.<br />
The key problem that we face is that the level of cost that has<br />
been allowed for in the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> falls significantly short<br />
of what was provided for in the AMP. The AMP was developed<br />
prior to the change in central government policy and before we<br />
were able to achieve greater efficiencies through our current<br />
road maintenance contracts. The difference over the ten years<br />
between what was scheduled in the AMP and what has been<br />
provided in the plan amounts to a total of $18 million. Based on<br />
the assumption that NZTA will provide the amount of subsides<br />
allowed for in the plan, should we incur the level of cost in<br />
the AMP, then that additional $18 million would need to be<br />
covered by rates or other funding sources . We are confident<br />
with achieving greater efficiencies in the current contracts so<br />
that the roading network can be maintained at the current level<br />
of service until 2014/15. Through submissions to the draft LTP,<br />
some of you told us that you consider it essential that we do all<br />
we can to prevent the roads deteriorating, even if that meant<br />
paying more rates. To continue to meet the current level of<br />
service, now and into the future, may require greater ratepayer<br />
funding or a change to the current accepted levels of service.<br />
This topic will be an ongoing discussion for us into future years<br />
including the next long term plan review in 2015 and AMP<br />
roading review 2014.<br />
Amberley Swimming Pool<br />
The life of the Amberley swimming pool and our awareness of<br />
the community desire for an improved pool, whether that is<br />
a major upgrade or a new facility, have been of interest to us<br />
for some years now. Through the submisssions to the draft LTP,<br />
we received 23 submissions on this subject with the majority<br />
supporting this community desire. In 2008, we did a review<br />
of the life-expectancy and replacement costs of the Amberley<br />
swimming pool and concluded that the present pool was good<br />
for at least 10 more years. In the 2009 long term plan draft,<br />
we allowed $3 million in the 2018/19 financial year to build a<br />
new heated, covered pool. The rating model to pay for the this,<br />
allocated the greater costs to the Amberley Ward, and a lesser<br />
amount to outlying areas on the basis of an assumption of usage<br />
beyond Amberley. Consultation on this matter then, gained good<br />
public support for the proposal, and it was decided to advance<br />
the project to the 2013/14 year. The budget provision was made<br />
on the basis that $1 million of the $3 million would be derived<br />
from fund raising and that the Amberley community would take<br />
the responsibility for this.<br />
Three years have since passed and no fund raising activities have<br />
taken place. Nor have we collected any rates to build up a fund<br />
for a future pool. The Amberley Ward Committee established<br />
a working group in 2011 to investigate the possibilities<br />
for the Amberley swimming pool and to come up with a<br />
recommendation to best suit the needs of the community. The<br />
working group concluded that the site of the existing pool is<br />
the best available and so commissioned a specialist engineer’s<br />
report on options to upgrade the present complex. This was<br />
undertaken in early <strong>2012</strong>. The resulting suggestions include a<br />
major upgrade of the existing pool costing just under $2 million<br />
which is well within the original $3 million budget. However, the<br />
estimated operational cost of running an all year heated pool,<br />
amounts to between $260,000 and $340,000 per year. This is<br />
after taking into account the entry fees, swimming lessons and<br />
other revenue making pool activities.<br />
Although the community desire is to have a heated indoor<br />
pool that can operate either all year round, or at least most<br />
of the year, the operational cost is significant and exceeds any<br />
previous thinking about how much it would cost to actually<br />
run the pool. Very few public swimming pools in New Zealand<br />
make a profit or break even, and they are reliant on significant<br />
subsidies from rates to operate. The Amberley ward ratepayers<br />
have traditionally met the operational cost from amenity rates.<br />
However, the estimates for running an improved, heated, all year<br />
round pool is likely to exceed Amberley ratepayers ability or<br />
desire to pay, and is substantially more than they pay now. There<br />
is more work ahead for the working group, the Amberley Ward<br />
Committee and the <strong>Council</strong> before a proper proposal with all<br />
the facts is able to be put to the community.<br />
For these reasons, we have decided to not make a budget<br />
provision in this long term plan at this stage. We have requested<br />
a report to come to a council meeting in the <strong>2012</strong>/13 year to<br />
explore options and costings for an upgraded pool. If supported,<br />
our intention is to include a proposal for an upgraded pool<br />
and funding model into the 2015/25 <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>. In the<br />
meantime, we have an expectation that those wanting an<br />
improved pool become involved and commence fund raising.<br />
The Amberley Ward Committee and the rest of the district will<br />
need to have the opportunity to say what they are prepared<br />
to fund before we can decide who should pay. We intend to<br />
properly consult with you over this matter. For us to have the<br />
confidence to make a significant budget provision, we need to<br />
be able to give you the full story on the cost, who will pay and<br />
what you will get for your money. In the meantime, we have<br />
budgeted for the continued operation of the current swimming<br />
pool on the assumption that it may still be operational up to<br />
2020, depending on what is decided before then.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Cheviot Library/Service Centre<br />
We received a large number of submissions regarding moving the<br />
Cheviot community library out of the Cheviot Area School and<br />
into the Cheviot Service Centre on the main street of Cheviot.<br />
Several of you were not in favour of this option, but many of<br />
you did endorse this concept. We endorsed the Cheviot Ward<br />
Committee’s recommendation that the library is moved. This<br />
will enable the library and council services to be delivered from<br />
the one site by one person. The school library will remain in its<br />
current location.<br />
The service centre has not had an upgrade for years and<br />
therefore needs some alterations and refurbishment to create<br />
a more vibrant community space. A working group comprising<br />
of a mix of local Cheviot people has been selected to work on<br />
the detail of the move and to create a new look for the service<br />
centre / library to capture the unique essence of Cheviot and<br />
provide a service to meet the needs of the locals. Detail such<br />
as the opening hours, days of the week to be open, design of<br />
the interior and exterior of the building, etc are to be worked<br />
through. The timetable for the project will also need to be<br />
worked through, but it is planned take place in the <strong>2012</strong>/13 year.<br />
$100,000 has been set aside for the building alterations which<br />
will not incur an increase in rates.<br />
Cheviot Medical Centre<br />
We own four medical buildings in the <strong>District</strong> – in Hanmer<br />
Springs, Rotherham, Waikari and Cheviot. We originally got<br />
involved in this area years ago to help attract qualified medics<br />
into the district to take up private practices without the<br />
deterrent of capital cost, and provide health services that are<br />
of a good quality, affordable and meet the needs of our rural<br />
communities. This is an on-going challenge as attracting doctors<br />
and nurses who are prepared to work and live in rural New<br />
Zealand is an issue that <strong>Hurunui</strong> does not face alone. Times<br />
have changed and the ideal of finding General Practitioners<br />
wanting to set up practice in a rural community and stay for<br />
life (and work alone) has become unsustainable. However<br />
important considerations for future planning still include having<br />
high quality medical facilities and a strong network of medical<br />
practitioners and providers to support each other.<br />
Whereas we do not recruit medical staff for the district, we<br />
believe we do have a role to provide medical facilities and<br />
assist in facilitating good outcomes. We regularly meet with<br />
key providers of medical services for the <strong>District</strong>, including the<br />
Canterbury Rural Primary Health Organisation, Canterbury<br />
<strong>District</strong> Health Board and local practitioners, etc. These<br />
discussions help us keep up with the issues our GPs and medical<br />
centres are facing and helps us work together to find solutions.<br />
One of the areas we are able to assist is building medical centres<br />
that cater for current and future demand.<br />
Three of our current medical centres are modern, while Cheviot<br />
requires an upgrade or replacement in the near future. This<br />
upgrade has been signalled by its inadequacy to deliver modern<br />
health care into the future. We have allocated $1 million (to<br />
be inflation adjusted) in year 2016/17 to build a new one. The<br />
project will be funded by an internal loan and servicing of the<br />
loan over 20 years is proposed that this be funded through the<br />
Cheviot Medical Centre Rate which is charged to each property<br />
in the Cheviot Ward. This will result in the Cheviot Medical<br />
Centre Rate moving from approximately $30 per ratepayer<br />
to $120 per ratepayer from 2016/17. Some submissions were<br />
received on this topic and all supported improving the Cheviot<br />
Medical Centre. There is still work to be done before a rebuild<br />
or upgrade is undertaken to make sure this is good use of your<br />
money. We will want to be confident that a new building is<br />
needed as opposed to upgrading the current facility, and we also<br />
need to be sure that this is what the community needs. Further<br />
consultation will be done closer to the time before any work<br />
is done.<br />
Rotherham Public Toilet<br />
We have purchased a section on the main road through<br />
Rotherham adjacent to the new Amuri Medical Centre, for a<br />
village green. The section is ideally suited to a public toilet for<br />
motorists passing through Rotherham en-route to the Inland<br />
Road. For motorists travelling to Kaikoura from the West<br />
Coast, this would be the first public toilet since Springs Junction<br />
(i.e. without detouring into remote sites such as Boyle River<br />
or to Hanmer Springs). A toilet on this section will also be<br />
useful for local residents using the village green for picnics or<br />
recreation (playground) or on their way to or from the Health<br />
Centre. This is a long term proposal as we intend building the<br />
toilet in the 2017/18 year. Because it is a long way off and we are<br />
not certain of the demand in this location, we will seek public<br />
views on this proposal again when we review this long term<br />
plan in 2015. In the meantime, $90,000 has been included in the<br />
budget to be funded through the <strong>District</strong> Rate.<br />
Hanmer Springs Facilities<br />
1. Sports Ground<br />
The Hanmer Springs <strong>Community</strong> Board intends to upgrade the<br />
Hanmer Springs sports ground as it is out of date and will not<br />
meet the needs for future growth and demand. Before doing<br />
any work however, the Board will commission an engineer’s<br />
report on the project to determine the extent of works that<br />
can be carried out. They plan to commission this in <strong>2012</strong>/13<br />
to prepare for the physical works to be done in 2015/16. The<br />
report will more accurately scope the project including whether<br />
the project is staged over more than one year. The estimated<br />
cost involved is $30,000 for the engineers report, and $1 million<br />
for the actual development work.<br />
The engineers report will cover the feasibility of including the<br />
following facilities in the upgrade:<br />
• A full basketball size court that can cater for<br />
other indoor sports such as badminton, volleyball,<br />
bowls, netball etc<br />
• A ground floor kitchen facility able to cater for<br />
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www.hurunui.govt.nz<br />
conferences, weddings, sports club functions, etc<br />
for up to 500 people<br />
• A bar that also provides for the above<br />
• A storage area that will hold equipment, chairs,<br />
tables, and other items used for group functions<br />
• Toilet facilities to serve people using the sports<br />
stadium inside and out<br />
• Area/s suitable for meetings, lounge and<br />
relaxation area, and an administration office<br />
• Changing facilities for sports teams including<br />
shower blocks<br />
• Two Squash courts<br />
• A gymnasium area<br />
There was a support through the submissions for an upgraded<br />
sports ground. Because the Board is not prepared to spend<br />
more than $1 million, this may mean they need to prioritise<br />
what is included in the upgrade. Affordability will be a key<br />
consideration.<br />
2. <strong>Community</strong> Hall Extension<br />
The Hanmer Springs <strong>Community</strong> Board will proceed with the<br />
previously planned extension to the Hanmer Springs community<br />
hall and has allocated $194,400 to do this in 2014/15. They will<br />
spend $10,000 in <strong>2012</strong>/13 to finish the work on the existing<br />
stage floor and frontage that users of the hall have been asking<br />
for.<br />
The extension to the community hall is planned to include:<br />
• Upgrading the existing toilets on either side of<br />
the stage<br />
• Replacing the existing changing rooms with<br />
a large, open, multipurpose space that can be<br />
partitioned off to create several changing rooms<br />
as required. The open area can also be used for<br />
art displays, meetings, etc, as well as changing<br />
rooms for performances.<br />
• A storage area for lighting, sound, stage props, etc<br />
• Entry access for wheelchairs and large items (for<br />
stage productions, etc)<br />
As with the Hanmer Springs sports ground upgrade, the Board<br />
will do its best to maximise the budget so that the extension to<br />
the hall caters for future demand as well as the current demand,<br />
but do not expect to go beyond the allocated budget. Once<br />
again, support for this project was received, particularly from<br />
Hanmer Springs residents.<br />
Funding the Hanmer Springs <strong>Community</strong> Board<br />
The Hanmer Springs <strong>Community</strong> Board members are elected<br />
every three years in line with the local authority triennial<br />
election process. There are 6 Board members, with five being<br />
elected on the Board, and the 6 th member being the appointed<br />
local <strong>Council</strong>lor.<br />
The selected members are paid an amount determined by <strong>Council</strong><br />
in consultation with the <strong>Community</strong> Board. The <strong>Council</strong>lor is<br />
not remunerated for being on the <strong>Community</strong> Board as he is<br />
paid as a <strong>Council</strong>lor through the <strong>Council</strong> remuneration pool.<br />
The selected members are paid 50% from amenity rates (from<br />
Hanmer Springs Ward ratepayers) and 50% funded as part of<br />
the cost of Governance through the Governance Rate, which<br />
is a <strong>District</strong> Wide Rate. The members, current remuneration is<br />
shown in table 1.<br />
The <strong>Community</strong> Board works for the Hanmer Springs Ward<br />
residents and ratepayers. Consequently, we think it appropriate<br />
that all of their remuneration is paid through local amenity<br />
rates from Hanmer Springs ratepayers, rather than a portion<br />
coming from the <strong>District</strong> Wide Rate. We have four Ward or<br />
<strong>Community</strong> Committees set up in other Wards that operate in<br />
a similar way to a <strong>Community</strong> Board, with similar delegations,<br />
but members are not paid. Therefore, we have decided that the<br />
Hanmer Springs community will fund the total remuneration<br />
for the <strong>Community</strong> Board. Based on the current level of<br />
remuneration paid to the <strong>Community</strong> Board Members, the total<br />
cost to the Hanmer Springs Amenities Rates will be $23,178 per<br />
annum commencing from <strong>2012</strong>/13.<br />
Security of Access to Hanmer Forest Tracks<br />
The Hanmer Forest is a significant tourism asset to the district.<br />
It is estimated that 70% of visitors to the Hanmer Springs<br />
Thermal Pools and Spa (approximately 511,000 people) visit the<br />
forest each year. Public access to the forest has been provided<br />
for since the early 1900s resulting in the development of an<br />
extensive recreational track network. Legal public access to the<br />
forest was lost when ownership of the land was transferred to<br />
Ngai Tahu. The continuance of the current informal public access<br />
depends on the goodwill of the Iwi and the forest leaseholder.<br />
The Hanmer Forest covers 9212 hectares in area and is<br />
comprised of native forest, exotic production and research<br />
forests, and public parks and reserves. The forest adjoins the<br />
Hanmer Springs urban boundary and extends north to the<br />
Hanmer Range ridgeline, Mt Isobel, Jollies Pass and Jacks Pass;<br />
east to Boundary Stream; south to the Hanmer River; and west<br />
to the Rogerson River catchment and Mt Tabletop.<br />
Ngai Tahu Forest Estates Ltd are the largest landowner at nearly<br />
55%, the Department of Conservation (DOC) manages 45%,<br />
and HDC less than 1%. Although the minor landowner, the HDC<br />
land provides critical linkages from the Hanmer Springs village<br />
via Conical Hill and the 22ha Dog Stream/Brooke Dawson/<br />
Tarndale reserves adjacent to the forest.<br />
There has been some community concern that access to the<br />
Ngai Tahu land can be closed at any time by the landowner.<br />
However, Ngai Tahu have expressed their commitment to<br />
Hanmer Springs and agree how important the tracks are. They<br />
have indicated that they want to be part of future development<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
of the township and future planning for the <strong>Hurunui</strong> district, and<br />
are prepared to work with us over the forest’s long term use. A<br />
number of submissions were received on this matter supporting<br />
our intention to work toward securing long term use to the<br />
forest. A representative group of <strong>Council</strong>lors has been identified<br />
to progress further discussion with the owners of the forest to<br />
find a way forward. No funding has been allocated.<br />
Table 1: <strong>Community</strong> Board Members Remuneration<br />
Position<br />
Remuneration<br />
Chair of the <strong>Community</strong> Board<br />
$7,902 pa<br />
Other Members (each)<br />
$3,819 pa<br />
Table 2: Funding the Key Issues<br />
Issue Cost Method of Funding Commencement<br />
Drinking Water Standards<br />
$14,000,000 Capex<br />
$484,000 Opex<br />
<strong>District</strong> Wide 2015/16<br />
Miox & new water treatment $758,000 Targeted to Dwellings affected <strong>2012</strong>/13<br />
Hanmer Springs Sewer Improvements $220,000<br />
$1,288,560<br />
Hanmer Springs Sewer Rate <strong>2012</strong>/13<br />
2015/16<br />
Targeted Tourism Rate $286,000 Targeted Tourism Rate on-going<br />
Insurance $550,000 Spread across organisation <strong>2012</strong>/13<br />
Earthquake Strengthening $71,162 <strong>District</strong> Wide Rates <strong>2012</strong> - 2015<br />
RMA/Court Action $105,000 <strong>District</strong> Wide Rates <strong>2012</strong>/13<br />
Cheviot Library/Service Centre $100,000 <strong>District</strong> Wide funding <strong>2012</strong>/13<br />
Cheviot Medical Centre $1,150,700 Cheviot Medical Centre Rates 2016/17<br />
Hanmer Springs Sport Stadium $1,077,379 Amenity Rates and<br />
Development Contributions<br />
2015/16<br />
Hanmer Springs <strong>Community</strong> Hall Extension $194,400 Hanmer Springs Amenity Rate 2014/15<br />
Rotherham Public Toilet $90,000 <strong>District</strong> Wide funding for<br />
Public Toilets<br />
2017/18<br />
Hanmer Springs <strong>Community</strong> Board<br />
$23,178 Hanmer Springs Amenity Rate <strong>2012</strong>/13<br />
Amberley Swimming Pool<br />
$0 No budget allocated yet<br />
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Financial Strategy<br />
Executive Summary<br />
Core Principles<br />
In reviewing the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> (LTP), we revised our core<br />
principles and these have been used as the basis in developing<br />
our Financial Strategy. These principles are:<br />
• Focus on core services<br />
• Financial responsibility and affordability<br />
• Continuous improvement in service to everyone in our<br />
district<br />
• Facilitate appropriate growth in the district<br />
• Maximise Thermal Pools and Spa profit<br />
Key Factors in our Financial Strategy<br />
Within the context of our core principals, the following have<br />
been identified as the key factors that shape the Financial<br />
Strategy over the life of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>:<br />
• We want to ensure that our services remain affordable<br />
• We want to maintain or improve our current levels of<br />
service<br />
• Our key funding mechanisms are:<br />
a Rates, both <strong>District</strong> Wide and Targeted rates<br />
b Surpluses derived from the Hanmer Springs<br />
Thermal Pools and Spa<br />
c The use of the Internal Financing structure which<br />
provides internal loans for communities requiring<br />
funding and also an avenue for communities to build<br />
up funds to meet funding requirements in the future<br />
In taking care to ensure that our services remain affordable,<br />
we have had modest rate increases over the past three years.<br />
However, due to various factors facing us, particularly the<br />
increased cost of insurance and compliance with drinking water<br />
standards, rates will increase at levels well above what was<br />
anticipated when the 2009-2019 LTP was prepared. (Refer to<br />
the Key Issues section).<br />
We are carefully monitoring our levels of service for roads<br />
due to reduced government subsidies (refer to Key Issues<br />
section). With the exception of roading, we intend to maintain<br />
our levels of service in most areas. With regards to improving<br />
drinking water levels, treatment of sewage and developing some<br />
community facilities, we will be in a position to improve the<br />
levels of service that we are currently providing. We also aim<br />
for continuous improvement to our customer service.<br />
We continually review funding options available. The use of<br />
the internal financing structure allows communities to carry<br />
out required capital expenditure and manage the cost of those<br />
works over a longer period. As a result, this smoothes out the<br />
rating impact and allows communities to start setting aside<br />
funds to meet the capital projects for the future.<br />
The Hanmer Springs Thermal Pools and Spa is a successful<br />
<strong>Council</strong> owned business and we proactively use the profits to<br />
offset costs relating to the reserves in the <strong>District</strong> which results<br />
in lessening the rating burden. For the first three years of the<br />
<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> the <strong>Council</strong> is funding more reserve based costs<br />
than it is earning from the surpluses from the Hanmer Springs<br />
Thermal Pools & Spa and by doing so, is utilising some of the<br />
reserve balance that has been generated by the surpluses in<br />
the past.<br />
Our Financial Position at the Start of the LTP<br />
Period<br />
Our financial position at the start of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> period<br />
is set out in the 2011/<strong>2012</strong> Annual <strong>Plan</strong> which shows:<br />
• The total rates were set at $12.8 million; of which $5.3<br />
million are in <strong>District</strong> Wide rates and $7.5 million are<br />
in targeted rates.<br />
• Total income from non-rate sources was $16.9 million,<br />
which includes $9.6 million in gross revenue derived<br />
from the Hanmer Springs Thermal Pools and Spa.<br />
• Total Operating Expenditure is forecast at $23.5 million<br />
and Capital expenditure for the 2011/<strong>2012</strong> year is<br />
expected to be $9.2 million (which includes a level of<br />
Capital that has been carried over from the 2010/2011<br />
year).<br />
• External Debt was expected to be $13.5 million at<br />
the end of June <strong>2012</strong>; however, the forecast has been<br />
reduced to $12.5 million due to deferring some projects<br />
as part of the LTP budget preparation.<br />
• Internal Financed Debt is expected to total $16.6<br />
million as at 30 June <strong>2012</strong>.<br />
• Total Assets as at 30 June 2011 was $335 million, of<br />
which $253 million related to our infrastructure.<br />
Our Financial Position at the End of the LTP Period<br />
As at the end of June <strong>2022</strong>, the key components of our financial<br />
position are forecast as follows:<br />
• Total rates revenue will increase by 55% over the ten<br />
years to reach $19.9 million in the 2021/<strong>2022</strong> year.<br />
• Total income from non-rate sources will be $22.3<br />
million (including $13.8 million in gross revenue derived<br />
from the Hanmer Springs Thermal Pools and Spa).<br />
• Total Operating Expenditure will be set at $39.6 million.<br />
• Capital expenditure over the ten years will amount to<br />
$77.3 million with the amount expected to be required<br />
in the 2021/<strong>2022</strong> year at $7.7 million.<br />
• External Debt will peak at $22.5 million in the 2015/2016<br />
and 2016/2017 years, but will reduce to $12 million by<br />
June <strong>2022</strong>.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
• Total Assets as at 30 June <strong>2022</strong> is expected to reach<br />
$494 million.<br />
Rates, Increases and Limits<br />
The overall rates increases for the next three years are as<br />
follows:<br />
• In <strong>2012</strong>/2013, the increase is 5.83% (this is one of the<br />
largest increases required for some years and is primarily<br />
due to factors outlined earlier such as insurance and<br />
drinking water, and funding some significant capital<br />
expenditure projects over the last few years).<br />
• In 2013/2014, the increase is 5.77%<br />
• In 2014/2015, the increase is 5.37%<br />
The Local Government Act now requires <strong>Council</strong>s to set limits<br />
on rate increases. Because a simple inflation target as the basis<br />
for setting a rate increase limit does not reflect the forecast<br />
costs that will be imposed on us, we have opted to set the<br />
rates increase limits at 2% above the forecast increases. As a<br />
result, the limit for the 2013/2014 year will be 7.77% and for the<br />
2014/2015 year, the limit will be 7.37%<br />
Because of our rating structure, the overall increase in rates<br />
will not be consistent for each property throughout the district.<br />
It will depend on the targeted rates that are charged to that<br />
particular property and also the capital value of the property.<br />
External Debt and Limits<br />
1. The Local Government Act also requires us to set a limit on<br />
our external debt levels. These debt levels are set out in our<br />
External Liability Management policy on page 222 and the<br />
limits are based on ratios centred on the level of income.<br />
These ratios are considered standard for the sector and the<br />
maximum debt is set at 100% of our Total Income and 10%<br />
of our Total Equity. This means that for the <strong>2012</strong>/2013 year,<br />
where total income is forecast at $30.3 million and Total<br />
Equity forecast at $341.7 million, that the maximum level of<br />
debt is $30.3 million. For <strong>2012</strong>/2013, the anticipated level<br />
of debt is $18.5 million. We plan to be well within prudent<br />
limits for the period of the plan.<br />
Implications of the <strong>Council</strong>’s Financial Strategy<br />
The Local Government Act requires us to assess whether we<br />
have the ability to provide and maintain existing levels of services<br />
and meet additional demands for services within the rates and<br />
debt limits as set out within the financial strategy.<br />
We face potential issues in the future regarding the level of<br />
funding for roading expected from the New Zealand Transport<br />
Agency (NZTA). We estimate that there is a $15 million<br />
difference over the ten year period of the LTP between what<br />
our Asset Management <strong>Plan</strong>s tell us is needed to maintain our<br />
roading network and what we have built into this draft LTP<br />
taking into account the NZTA funding. (See the Roads and<br />
Footpaths Activity section on page 89).<br />
We are not contemplating taking on debt greater than $22.5<br />
million and the maximum amount of interest expected to be<br />
charged on the external debt is budgeted at less than $1.3<br />
million. Therefore, with the exception of the Roading Network<br />
due to circumstances outlined earlier, we believe we have the<br />
ability to maintain existing target levels of service and to meet<br />
additional demands for service within those debt limits.<br />
Core Principles<br />
Our revised core principles have provided the base in developing<br />
our Financial Strategy for this LTP. These are further explained<br />
in this section.<br />
1. Focus on Core Services<br />
The focus on core services is consistent with the intent of the<br />
Local Government Act. As a rural district, our focus has always<br />
been on key infrastructure – roading, water and sewerage. Since<br />
2008 after sever flood events, we have undertaken significant<br />
work to improve our stormwater and drainage assets. While<br />
community services and facilities (eg: halls, libraries, public<br />
toilets, reserves etc), may not be seen as essential services, they<br />
do form an important part of the community infrastructure.<br />
We have undertaken significant community projects in the last<br />
three years including the town centre upgrades in both Hanmer<br />
Springs and Amberley, as well as constructing a new Medical<br />
Centre in Rotherham.<br />
2. Financial Responsibility and Affordability<br />
Affordability of rates was a key aspect in the preparation of the<br />
2009-2019 LTP and in that respect; we managed to maintain<br />
modest increases in the rates over the subsequent three year<br />
period. In preparing the <strong>2012</strong>/22 LTP, affordability is still an<br />
important factor as well as spending responsibly to minimise<br />
rate increases. Costs do increase and we are ever mindful of the<br />
need to ensure that these costs are appropriately funded, while<br />
ensuring our debt levels remain manageable.<br />
3. Continuous Improvement in Service to Everyone<br />
in Our <strong>District</strong><br />
In the context of affordability, we aim to improve our customer<br />
service to everyone who needs our services. This includes<br />
our residents and ratepayers, as well as visitors to our district.<br />
Our annual resident satisfaction survey provides us with good<br />
information to gauge how we are doing and where to improve.<br />
Whereas actual levels of service in most cases are intended on<br />
being maintained, our aim for continuous improvement relates<br />
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to getting the best out of our contracts for service, having<br />
helpful friendly staff, being responsive to complaints and service<br />
requests by getting back to customers quickly, etc. Regarding<br />
actual levels of service, these are discussed under the ‘Key<br />
Factors for Our Financial Strategy’ part of this section.<br />
4. Facilitate Appropriate Growth in the <strong>District</strong><br />
We want our district to continue to grow and that not only will<br />
more people want to live in the <strong>Hurunui</strong>, but that those who are<br />
here already, will want to stay. Growth in our population helps<br />
spread rates across a wider number of ratepayers and helps to<br />
retain key services, such as medical services, schools and shops,<br />
etc.<br />
We are mindful that growth needs to be sympathetic toward<br />
the environment and the district’s rural values which is why<br />
we talk about “appropriate growth”. Accordingly, we need to<br />
ensure that our planning rules (as we review our <strong>District</strong> <strong>Plan</strong>)<br />
do meet the objectives of the <strong>District</strong> as a whole.<br />
5. Maximise Thermal Pools Profit<br />
We are in the envious position of owning one of New Zealand’s<br />
key tourist facilities - the Hanmer Springs Thermal Pools and<br />
Spa (HSTP&S). The success of the HSTP&S has had a flow on<br />
effect to other businesses that service the tourist industry. The<br />
HSTP&S is sited on a reserve vested to the <strong>Hurunui</strong> <strong>District</strong><br />
<strong>Council</strong> in accordance with the Reserves Act. Because of this,<br />
we are able to use the profits from the HSTP&S to fund other<br />
reserves that we administer. This includes the <strong>Hurunui</strong> Memorial<br />
Library (also known as the “<strong>District</strong> Library”), the public toilets<br />
and cemeteries throughout the district, as well as a wide range<br />
of recreational reserves. This is a particular point of difference<br />
from other Local Authorities in New Zealand who will generally<br />
have to fund these types of functions through rates.<br />
Key Factors for our Financial Strategy<br />
Within the context of our core principals, we have identified the<br />
following key factors that shape our Financial Strategy over the<br />
life of this LTP:<br />
• We want to ensure that our services remain affordable<br />
• We want to maintain or improve our current levels of<br />
service<br />
Our key funding mechanisms are:<br />
a. Rates, both <strong>District</strong> Wide and Targeted rates<br />
b. Surpluses derived from the Hanmer Springs Thermal<br />
Pools and Spa<br />
c. The use of the Internal Financing structure which<br />
provides internal loans for communities requiring funding<br />
and also an avenue for communities to build up funds to<br />
meet funding requirements in the future<br />
We Want to Ensure that Our Services Remain<br />
Affordable<br />
The concept of affordability is one of our core principles. Our<br />
modest overall rate increases in the past three years have been:<br />
• 2009/2010 - 4.20%<br />
• 2010/2011 - 3.04%<br />
• 2011/<strong>2012</strong> - 3.60%<br />
We considered all of these increases to be affordable and<br />
deemed that, the community agreed going by their submissions<br />
when we consulted the public on these. However, there are<br />
various factors facing us that will require us to increase rates<br />
at levels well above what we anticipated when we prepared the<br />
last LTP (the 2009-2019).<br />
As outlined in the Mayor and CEO’s introduction we are<br />
experiencing the on-going financial impact of the Canterbury<br />
Earthquakes. In particular, there has been a significant increase<br />
in the cost of insurance for everyone. While the increase is large<br />
and affects the overall rates increases, we consider it necessary<br />
and responsible to insure our keys assets.<br />
Meeting drinking water compliance is a costly issue (see the Key<br />
Issues section). We consider the cost of complying with the<br />
standards to be unaffordable to communities on the individual<br />
water supplies affected. Because of that, we have developed<br />
a two stage approach where we will aim for Ecoli compliance<br />
immediately and start to build a fund to meet some of the cost of<br />
the full compliance in later years. The rationale of this approach<br />
is to ensure we are in a position to meet our obligations in an<br />
affordable manner.<br />
Whereas we are intending on maintaining our current levels of<br />
service for roading over the next three year period, our ability<br />
to do so in future years may be challenging. The ongoing impact<br />
of receiving less NZTA funding than we had earlier anticipated in<br />
our Asset Management <strong>Plan</strong>s will eventually have a detrimental<br />
effect on our levels of service unless more rates are collected.<br />
The issue we will likely be facing in our next <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>, will<br />
be affordability versus levels of service.<br />
We Want to Maintain or Improve Our Current<br />
Levels of Service<br />
With the exception of roading as outlined above, we are<br />
committed to maintaining our levels of service. In some areas,<br />
we intend to increase the levels of service, through:<br />
• Complying with the increased Drinking Water Standards<br />
• Improving the treatment of sewage in Hanmer Springs<br />
• Employing an engineer dedicated to stormwater<br />
management throughout the <strong>District</strong><br />
• Building new or upgraded facilities, such as:<br />
• upgrading the Hanmer Springs Domain<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
• upgrading or building a new Medical Centre in<br />
Cheviot<br />
• Improving our customer service (within existing<br />
budgets)<br />
Each of these will be funded through rates or other mechanisms<br />
such as the use of the internal loans or development<br />
contributions, to ensure that the rates increases imposed are<br />
kept to an affordable level.<br />
The Use of Our Key Funding Arms<br />
We have three key arms to our funding structure to meet the<br />
operating and capital expenditure planned for the period of the<br />
LTP.<br />
1. Rates<br />
Under the Local Government (Rating) Act 2002, we have<br />
the ability to set rates to fund the activities we undertake.<br />
The way we set our rates is set out in the Funding Impact<br />
Statement and Rates System section.<br />
This Financial Strategy also sets out requirements for us to<br />
place limits on rate increases and this is discussed further<br />
below.<br />
2. Surpluses Derived From the Hanmer Springs Thermal Pools<br />
& Spa<br />
As outlined in the Core Principles above, we operate the<br />
HSTP&S complex on a reserve that has been vested to the<br />
<strong>Council</strong> under the Reserve Act.<br />
Over the past decade, the operation of the HSTP&S complex<br />
has been extremely successful and we constantly consider<br />
how to maximise the profits generated. December 2010 saw<br />
the completion of a $7.5 million expansion of the complex,<br />
which provided a wider range of facilities and has proved to<br />
be an outstanding success. We are aware that as a tourist<br />
destination, the HSTP&S need to be in top condition and<br />
refreshed if we are to maintain our place in the tourism<br />
market. Because of this, and the ability for the profits from<br />
the complex to fund it, further capital projects are planned for<br />
the ten year period of this LTP.<br />
The use of the HSTP&S surpluses is a key funding option<br />
available to meet the costs of our reserves throughout the<br />
district. The plan estimates that a total of $24 million will be<br />
used from the surpluses derived from the HSTP&S to offset<br />
these costs. For the first three years of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>, the<br />
council is forecasting to spend more on reserve based costs<br />
than it is earning from the surplus of the Hannmer Springs<br />
Thermal Pools & Spa, however, the <strong>Council</strong> is comfortable<br />
with utilising some of the existing reserve balance to fund this.<br />
3. Internal Financing Structure<br />
We developed an internal financing structure to provide a<br />
consistent approach to funding capital expenditure across<br />
the organisation. Because we do not build up depreciation<br />
reserves, this system is important to enable communities<br />
to access funding to undertake capital expenditure projects<br />
rather than being required to fund such project through other<br />
sources, such as rates. Our Internal Financing Policy is fully<br />
discussed on page 268.<br />
The structure is based on individual activities essentially<br />
holding its own bank account. Income (rates, development<br />
contributions, etc.) are deposited into the account and<br />
expenditure, both operating and capital, is withdrawn from<br />
the account. Like other bank accounts, the account can be in<br />
funds or overdrawn. When the balance is in funds, we pay an<br />
amount of interest and if the balance is overdrawn, then that<br />
activity pay interest to us.<br />
The result is that communities are able to undertake capital<br />
expenditure projects by allowing the capital balance to go into<br />
overdraft. This allows those communities to spread the cost<br />
of required capital work over a period of time, rather than<br />
having to fund it entirely in the year that it is incurred, by<br />
setting rates to cover an amount of debt repayment every<br />
year.<br />
The internal financing structure also allows communities to<br />
start building up funds by budgeting to continue to set rates at<br />
a higher level than required to meet all operating costs, even<br />
if there is no debt. This will mean that the excess operating<br />
income will be held for that community to meet capital<br />
expenditure requirements in the future. The benefit to those<br />
communities in this position is that we pay interest to those<br />
communities, which further increases their account balances.<br />
The key benefit from the use of the internal financing structure<br />
and building up fund is that it avoids large increases in rates<br />
as it allowed the <strong>Council</strong> and the individual communities to<br />
smooth the rating effect of large capital projects.<br />
The anticipated level of internally financed debt at as 1 July<br />
<strong>2012</strong> is $16.6 million. The balances over the ten year period<br />
are further disclosed in the Reserve Funds section of the LTP .<br />
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Financial Position<br />
Financial Position as at <strong>2012</strong><br />
Our financial position at the start of the LTP period is set out in<br />
the 2011/<strong>2012</strong> Annual <strong>Plan</strong> shown below:<br />
• The total rates were set at $12.8 million; of which $5.3<br />
million are in <strong>District</strong> Wide rates and $7.5 million are in<br />
targeted rates.<br />
• Total income from non-rate sources was $16.9 million,<br />
which includes $9.6 million in gross revenue derived from<br />
the Hanmer Springs Thermal Pools and Spa.<br />
• Total Operating Expenditure is forecast at $23.5 million<br />
and Capital expenditure for the 2011/<strong>2012</strong> year is<br />
expected to be $9.2 million (which includes a level of<br />
Capital that has been carried over from the 2010/2011<br />
year).<br />
• External Debt was expected to be $13.5 million at the<br />
end of June <strong>2012</strong>; however, the forecast has been reduced<br />
to $12.5 million due to deferring some projects as part of<br />
the LTP budget preparation.<br />
• Internal Debt is expected to total $16.6 million as at 30<br />
June <strong>2012</strong>.<br />
• Total Assets as at 30 June 2011 was $335 million, of which<br />
$253 million related to our infrastructure.<br />
The Relevance of the Current Financial Situation<br />
to the Financial Strategy<br />
• The current financial situation is relevant to the<br />
financial strategy as it provides the starting point for the<br />
development of the budgets for the LTP.<br />
• There have been relatively low levels of rate increases for<br />
the past three years.<br />
• We took on debt for the first time in September 2010,<br />
principally to provide funding for the $7.5 million<br />
expansion of the Hanmer Springs Thermal Pools and Spa,<br />
but there was already a need to obtain external debt to<br />
fund the following keys projects over the preceding years:<br />
• Town Centre Development in Hanmer Springs ($1.9<br />
million) and Amberley ($560,000)<br />
• Water Upgrades in Amberley ($714,000), Cheviot<br />
($658,000) and Hanmer Springs ($788,000).<br />
• Sewer Upgrades for Amberley ($2 million) and<br />
Hanmer Springs ($1.8 million)<br />
• Capital Expenditure to address the Drainage issues in<br />
the Amberley Ward ($890,000).<br />
• New Medical Centre in Hanmer Springs ($450,000)<br />
and Rotherham ($1 million)<br />
• As a result, there have been a number of large projects that<br />
have been funded through the internal financing policy and<br />
the requirement for those communities to start to repay<br />
the debt through rates to replenish our cash reserves.<br />
Until then, we will continue to hold debt for the period<br />
of the LTP.<br />
• The financial performance of the Hanmer Springs Thermal<br />
Pools and Spa remains critical to our ability to keep rates<br />
at an affordable level. The surpluses derived from the<br />
HSTP&S is actively used to fund various costs relating to<br />
reserves throughout the district. If we did not have the<br />
surpluses to offset these costs, then they would need to be<br />
rated for. In addition, and under the terms of the Internal<br />
Financing Policy, we receive interest from the HSTP&S<br />
for funds lent to it for the recent expansion works. This<br />
interest received is used to offset the costs of our external<br />
debt and to offset the <strong>District</strong> Wide Rates. The <strong>Council</strong> is<br />
forecasting to spend more on reserve based costs than it<br />
is forecast to earn from the surpluses derived from the<br />
Hanmer Springs Thermal Pools & Spa for the first three<br />
years of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>. To fund this the <strong>Council</strong> will<br />
utilise existing reserves.<br />
Forecast Financial Position as at <strong>2022</strong><br />
At the end of the LTP period, our position is forecast as follows:<br />
• Total rates revenue of $19.9 million; of which $8.0 million<br />
are in <strong>District</strong> Wide rates and $11.9 million are in targeted<br />
rates.<br />
• Total income from non-rate sources is expected to<br />
be $22.3 million, which includes $13.8 million in gross<br />
revenue derived from the HSTP&S.<br />
• Total Operating Expenditure is forecast at $39.6 million<br />
and Capital Expenditure for the 2021/<strong>2022</strong> year is<br />
expected to be $7.7 million.<br />
• External Debt was expected to reduce to $12 million at<br />
the end of June <strong>2022</strong>.<br />
• Internal Debt will reduce to $15 million by the end of<br />
June <strong>2022</strong>.<br />
• Total Assets as at 30 June <strong>2022</strong> is forecast to be $493<br />
million, of which an estimated $393 million relates to<br />
infrastructure.<br />
Key Movements Over the Ten Year Period<br />
Rates – Over the ten year period, we are forecasting to<br />
receive a total of $167 million in Rates. This is broken down to<br />
$69million in <strong>District</strong> Wide Rates and $98 million in Targeted<br />
Rates. To achieve the total increase of 55% since the 2011/<strong>2012</strong>,<br />
we intend to take incremental steps over the ten year period,<br />
however with a relatively large increase of 5.83% required for<br />
the <strong>2012</strong>/2013 year.<br />
Non-Rate Income – Excluding gains in asset valuation and vested<br />
assets, we are forecasting that a total of $191 million will be<br />
received from other forms of income. Roading Subsidies make<br />
up $38 million over the period, Development Contributions are<br />
forecast at $4.3 million and the gross revenues from the HSTP&S<br />
are forecast at $115 million. In addition, we are expected to<br />
receive $3.4 million from Forestry Sales, which is used directly<br />
to reduce debt.<br />
Operating Deficits - Due to <strong>Council</strong> spending more on reserve<br />
based costs than it is forecast to earn from the surpluses from<br />
the Hanmer Springs Thermal Pools & Spa, for the first three<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
years of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>, the <strong>Council</strong> will record small<br />
operating deficits. These will be funded by existing reserves<br />
built up by surpluses generated by the Hanmer Springs Thermal<br />
Pools & Spa in the past.<br />
Operating Expenditure – Total Operating Expenditure is<br />
expected to be $351 million over the ten years. The total<br />
increase from the 2011/<strong>2012</strong> year is expected to be 38% over<br />
the ten years and average of less than 4% per annum.<br />
Capital Expenditure – Over the ten year period, we are<br />
forecasting to spend a total of $77 million on Capital<br />
Expenditure. $6.3 million is scheduled to fund projects required<br />
due to growth, further $14.7 million relates to projects that will<br />
assist in improving the levels of services we provide and the<br />
remaining $56.2 million will be used to replace existing assets<br />
when they reach the end of their useful lives.<br />
This information is particularly relevant in determining<br />
growth projections for the period and was also used for the<br />
Development Contributions methodology. We have opted for<br />
the medium growth projections for the ten year period. On this<br />
basis, we have assumed that there will be approximately 17%<br />
growth over the ten year period. The increase predicted for<br />
Hanmer Springs is approximately 21%. With Hanmer Springs<br />
being a tourist town, the growth in new sections and buildings is<br />
not always consistent with an increase in population due to the<br />
higher percentage of non-resident ratepayers who may own a<br />
holiday home rather than a permanent residence.<br />
The following graph shows the movements in the population<br />
of each township in the <strong>District</strong> over the period from 1991 to<br />
2006:<br />
External Debt – This is scheduled to increase from the $13.5<br />
as schedule in the 2011/<strong>2012</strong> Annual <strong>Plan</strong> to reach a maximum<br />
of $22.5 million in the between July 2015 and June 2017. With<br />
communities required to repay certain levels of debt each year<br />
and some communities starting to build up funds to carry out<br />
capital expenditure in the future, we are forecasting that the<br />
external debt will reduce to $12 million by the end of June <strong>2022</strong>.<br />
Internal Debt – With communities repaying debt and building<br />
up funds, the movements in the internal debt levels move from<br />
$16.6 million in <strong>2012</strong> down to $15 million in <strong>2022</strong>.<br />
Assets – It is expected that the value of our assets will be $493<br />
million as at 30 June <strong>2022</strong>. This increase of $165 million has been<br />
brought about by the level of Capital expenditure to be incurred<br />
over the ten years, but also due to the fact that the assets are<br />
required to be revalued on a regular basis. It is forecast that the<br />
increase in the asset values will account for $147 million of the<br />
increase over the ten years.<br />
Population Changes<br />
The LTP has been prepared on the basis that the population<br />
will continue to grow. Due to the effect of the Canterbury<br />
Earthquakes, the 2011 Census was cancelled. Therefore, we<br />
have used the population projections from the 2006 Census<br />
to forecast population changes for the period of the LTP.<br />
The following graph shows the population projection for the<br />
<strong>Hurunui</strong> <strong>District</strong> over the next 20 year period.<br />
It is acknowledged that the population of the <strong>Hurunui</strong> is older<br />
than the national average. This presents issues around ensuring<br />
there are appropriate facilities and services for older people.<br />
We committed to providing buildings for medical centres to<br />
ensure that health services are adequately provided to the<br />
community. The following graph (using the 2006 Census data)<br />
shows the age distribution for the <strong>Hurunui</strong> in comparison with<br />
Canterbury and New Zealand:<br />
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Capital and Operating Costs of Providing for<br />
Changes in Population<br />
In response to the demands of increasing population, we have<br />
identified key projects proposed to respond to the anticipated<br />
growth. These are further discussed in the Development<br />
Contributions Policy but include the following:<br />
1. Water supplies upgrades undertaken on Amberley,<br />
Ashley Rural, Cheviot, Hanmer Springs and <strong>Hurunui</strong><br />
Rural water supplies which built in capacity to ensure<br />
both existing ratepayers and future ratepayers are<br />
serviced.<br />
2. Sewerage systems have had capacity built into upgrade<br />
work on ponds in both Amberley and Hanmer Springs<br />
to allow for future growth. In addition, provision has<br />
been made to allow for new areas to be reticulated in<br />
Amberley.<br />
3. Upgrades to both the Amberley Domain Pavilion and<br />
the Hanmer Springs Hall have been undertaken to<br />
provide additional facilities for both existing and future<br />
ratepayers.<br />
4. Provision has been made to develop new and upgrade<br />
existing reserves to cater for increased population.<br />
5. Stormwater provision to be factored in the development<br />
of new areas in Amberley and Hanmer Springs.<br />
Changes in Land Use<br />
The <strong>Hurunui</strong> <strong>District</strong> has historically been an agriculture based<br />
district, primarily beef and sheep. Over the past ten years, there<br />
have been marked changes to the use of land throughout the<br />
<strong>District</strong>.<br />
The growth in tourism, especially Hanmer Springs and centred<br />
around the development of the HSTP&S, has resulted in<br />
increased number of accommodation providers and other<br />
businesses associated with tourism, as well as more holiday<br />
homes.<br />
For a period, there was significant growth in viticulture, in<br />
particular in the Waipara area, which provides ideal conditions<br />
from growing premium quality grapes. The Amuri Basin has<br />
seen a significant increase in the number of dairy farms and that<br />
trend is likely to increase if access to further irrigation water<br />
can be secured.<br />
The Glenmark area has had two major wind farm applications –<br />
one from Mainpower and the other from Meridian Energy.<br />
The following pie chart shows the current land use of properties<br />
in the <strong>Hurunui</strong> <strong>District</strong> as at September 2010 (the date of the<br />
last <strong>District</strong> revaluation):<br />
Capital and Operating Costs of Providing for<br />
Changes in Land Use<br />
Because of the uncertainty of the changes in land use, no specific<br />
allowance has been made for changes to capital or operational<br />
costs to allow for this.<br />
Key Levels of Service<br />
Capital Expenditure Programme<br />
Capital expenditure requirements for our infrastructural assets<br />
and roads are dictated by the levels outlined in the Asset<br />
Management <strong>Plan</strong>s (AMPs) for each activity. The AMPs are<br />
updated on a regular basis to ensure that various changes to the<br />
plan in the interim period are accounted for.<br />
As discussed in the Key Issues section, we face potential issues<br />
in the future regarding the level of funding that is expected to<br />
be provided for roading from the NZTA. Our AMP for Roading<br />
sets out what level of expenditure we have forecast to meet the<br />
current levels of service. Since the AMP was adopted, there was<br />
a change to the level of expenditure that the NZTA is prepared<br />
to fund and this means that the expenditure allowed for in the<br />
LTP budgets are significantly short of what was provided for in<br />
the AMP. The AMP was developed prior to the change in central<br />
government policy and before we were able to achieve greater<br />
efficiencies through our current road maintenance contracts.<br />
The difference over the ten years between what was scheduled<br />
in the AMP and what has been provided in the LTP amounts to<br />
a total of $18 million. Through achieving greater efficiencies in<br />
the current roading contracts, we are planning on delivering the<br />
same levels of service for the next three year period. In future<br />
years, our ability to meet the same levels of service may not be<br />
achieved without increasing rates.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
In general, Capital Expenditure is broken down to three key<br />
categories:<br />
1. Capital expenditure relating to meeting the existing<br />
levels of service. This will be principally replacement of<br />
the existing assets<br />
2. Capital expenditure aimed at improving the current<br />
levels of service<br />
3. Capital expenditure on assets required due to growth.<br />
Some items of Capital Expenditure may actually fall into more<br />
than one category. For example, the replacement of a length of<br />
water pipe is required to provide water to existing consumers,<br />
but the diameter of that length of pipe may be increased from<br />
its existing diameter to allow for greater capacity in the future.<br />
An assessment is carried out as to apportion the cost of each<br />
project to the category to which it relates and if that cannot<br />
be readily assessed, the category will be determine by the key<br />
reason for the work to be undertaken.<br />
Over the period of the LTP, we have budgeted $77 million to<br />
spend on Capital expenditure. Of this balance, $56.2 million<br />
related to maintaining the existing levels of service by providing<br />
for replacement of current assets. A further $14.7 million<br />
is aimed at making improvements to the level of service and<br />
the balance of $6.3 million relates to projects scheduled due<br />
to growth. The following graph shows the percentages of the<br />
Capital Programme that relate to each category.<br />
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
Growth Related<br />
Improved Levels of Service<br />
Renewals<br />
The key area of capital expenditure is relating to the infrastructural<br />
assets. Of the total Capital Expenditure programme for the<br />
ten years of $77 million; $43.5 million relates to Roads and<br />
Footpaths; $10.1 million relates to Water Supplies and $3.8<br />
million relates to Sewerage Schemes. The following graph shows<br />
the split of the Capital Expenditure programme to each of the<br />
ten Groups of Activities for the ten year period.<br />
12,000,000<br />
10,000,000<br />
8,000,000<br />
6,000,000<br />
4,000,000<br />
2,000,000<br />
-<br />
Corporate Services<br />
Governance<br />
Hanmer Springs Thermal Pools and Spa<br />
Growth and Development<br />
Environment and Safety<br />
<strong>Community</strong> Services and Facilities<br />
Roads and Footpaths<br />
Stormwater and Drainage<br />
Sewerage<br />
Water Supplies<br />
Rates<br />
We base rates on the Capital Value of each property. We set our<br />
rates by way of <strong>District</strong> Wide Rates and Targeted Rates.<br />
• <strong>District</strong> Wide rates are charged on all properties in<br />
the district, regardless of location. They are are broken<br />
down further to: Governance; Roading; <strong>Plan</strong>ning; Waste<br />
Management; Canterbury Museum; and other General<br />
Rates.<br />
• Targeted rates are charged for specific activities based<br />
on services provided or land use. They are broken down<br />
further to: Water; Sewer; Stromwater/Drainage/Land<br />
Protection; Ward Amenities; Refuse Collection Ward<br />
Medical Centre; Rural fire; Tourism and Other Sundry<br />
Targeted rates.<br />
• The rates and how they are set are further defined in the<br />
Funding Impact Statement but the key changes proposed<br />
for the LTP relate to the funding of Drinking Water<br />
Standards, <strong>District</strong> Wide Stormwater work and the<br />
Capital Levy anticipated to be charged by the Canterbury<br />
Museum.<br />
Drinking Water Standards<br />
The funding of the drinking water improvements will be done<br />
in two stages. Firstly, those supplies that are to be treated, the<br />
direct operating costs of the treatment and the servicing of the<br />
debt arising out of the capital expenditure needed to treat the<br />
relevant water supplies, will be collectively charged by rating<br />
each dwelling that benefits from the work. Secondly, from<br />
2015/2016, a provision is to be made from the general rate to<br />
build a fund to offset some of the significant capital cost to be<br />
incurred in achieving full compliance with the drinking water<br />
standards.<br />
<strong>District</strong> Wide Stormwater<br />
After the flooding events in 2008, much more emphasis has been<br />
placed on development of stormwater plans for the <strong>District</strong> as<br />
a whole. A stormwater engineer is to be appointed in 2013 to<br />
look after this area. As the issue is district wide, the funding is<br />
to come from the <strong>District</strong> Wide General Rate, with a portion<br />
to be funded by way of a fixed charge and a portion by way of<br />
capital value.<br />
Canterbury Museum<br />
As one of four contributing authorities to the Canterbury<br />
Museum, the <strong>Hurunui</strong> <strong>District</strong> has been contributing a levy to<br />
fund the operations of the Museum on an annual basis. <strong>Hurunui</strong><br />
has set a fixed charge on every property in the <strong>District</strong> to<br />
cover this rate. The Museum is proposing to carry out a $63<br />
million building project, which will need to be funded by way<br />
of a Capital Levy. The budget set aside for the Capital levy is<br />
$50,000 in 2013/2014, $100,000 in 2014/2015 and $50,000 in<br />
2015/2016. It is intended that the Capital levy will be charged<br />
on the same basis as the operating levy by sharing it as a fixed<br />
charge per property.<br />
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Rate Increases<br />
In general terms, we try to keep the overall rate increase each<br />
year to the level of inflation. However, the actual increases<br />
in rates from an organisational point of view do change from<br />
year to year depending on the funding options chosen and also<br />
the fact that there are operational costs that are not carried<br />
out every year, but need to be funded in the year they are<br />
incurred. As a result, as the rates increase is an amalgam of many<br />
individual rate increases, we intend to set the rates at the level<br />
that is required, rather than to ensure the overall rate increase<br />
is matches inflation.<br />
The <strong>Hurunui</strong> <strong>District</strong> has a small population (one of the smallest<br />
in New Zealand), and because of this, various factors can have<br />
a marked effect on the rates increases in any one year as there<br />
are fewer people to spread the cost across. As a result, there is<br />
an allowance for any rate increases being higher than the level<br />
of inflation due to extraordinary items. These items include, but<br />
not limited to, the following:<br />
• Capital expenditure requirements, which increases the<br />
level of debt for individual communities.<br />
• Increase expenditure due to compliance with new<br />
legislation.<br />
• Increased expenditure resulting from extraordinary<br />
events, such as the Canterbury Earthquakes.<br />
When determining the overall rate increases, an allowance is<br />
made for a 1% increase in the capital value of the district each<br />
year. This may be reviewed if there are significant areas of growth<br />
experienced in excess to this. The increase is only applied to<br />
the district wide rates as it is difficult to accurately assess the<br />
growth in individual areas that targeted rates are charged to.<br />
Because of the structure of our rating system, the overall increase<br />
in rates will not be consistent for each property throughout the<br />
district. It will depend on the targeted rates that are charged<br />
to that particular property and also the capital value of the<br />
property. We provide the relative rate increase comparisons for<br />
22 various sample properties from throughout the district. We<br />
have used the same 22 properties for years as this gives us a<br />
good indication of the impact of increases across the different<br />
communities and house values. The sample properties analysis<br />
is provided the Appendices section.<br />
Overall Rate Increases<br />
Based on the budgets provided for the LTP, the overall rates<br />
increases for each year of the LTP are as follows:<br />
Year<br />
The rates increases are broken down to the following:<br />
Limits on Rate Increases<br />
Overall Rates Increase<br />
<strong>2012</strong>/2013 (Year 1) 5.83%<br />
2013/2014 (Year 2) 5.77%<br />
2014/2015 (Year 3) 5.37%<br />
2015/2016 (Year 4) 3.17%<br />
2016/2017 (Year 5) 3.82%<br />
2017/2018 (Year 6) 3.15%<br />
2018/2019 (Year 7) 2.61%<br />
2019/2020 (Year 8) 4.01%<br />
2020/2021 (Year 9) 3.74%<br />
2021/<strong>2022</strong> (Year 10) 3.33%<br />
Year<br />
<strong>District</strong> Wide<br />
Rates<br />
Targeted Rate<br />
<strong>2012</strong>/2013 (Year 1) 5.63% 5.96%<br />
2013/2014 (Year 2) 7.15% 4.80%<br />
2014/2015 (Year 3) 6.34% 4.67%<br />
2015/2016 (Year 4) 2.14% 3.95%<br />
2016/2017 (Year 5) 3.20% 4.28%<br />
2017/2018 (Year 6) 2.14% 3.89%<br />
2018/2019 (Year 7) 0.30% 4.31%<br />
2019/2020 (Year 8) 3.37% 4.47%<br />
2020/2021 (Year 9) 2.60% 4.55%<br />
2021/<strong>2022</strong> (Year 10) 1.17% 4.85%<br />
All <strong>Council</strong>s are required to set a limit on rates increases over<br />
the ten year period of the LTP. There are no set rules around<br />
how we are to determine what limit it imposes.<br />
Options<br />
There were a number of options available to us, for instance:<br />
• Setting rate increases to an inflation rate.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
• Setting a percentage increase.<br />
• Setting an increase based on known factors and<br />
assumptions.<br />
We felt that setting rate increase limits based on an arbitrary<br />
rate of inflation was not consistent to the assessment of the<br />
proposed costs outlined in the LTP. This is because it did not<br />
take into account items such as new capital expenditure, which<br />
could result in a necessary increase in rates to fund the work,<br />
which could exceed the overall increase in rates.<br />
Setting a percentage increase per annum again did not reflect<br />
the assessment of the proposed costs in the long term.<br />
Furthermore, as the rates for individual communities can<br />
increases at varying amounts due to various factors, it was<br />
difficult to set a percentage increase that reflected these factors<br />
adequately.<br />
As a result, we decided that the limit to be placed on rate<br />
increases is to be set as a percentage of the overall rates<br />
increases predicted in the LTP.<br />
Limits<br />
The percentage on top of the predicted rates increases will be<br />
2%. In determining this percentage, we that felt 2% provides<br />
sufficient flexibility, particularly if there is significant cost<br />
increases (on top of what has been allowed for using the BERL<br />
cost price increase projections) imposed on us as a result of the<br />
on-going effects of the Canterbury Earthquakes.<br />
As a result, the limits will be as follows<br />
Year<br />
Overall<br />
Increase<br />
Overall<br />
Increase Limit<br />
<strong>2012</strong>/2013 (Year 1) 5.83% 7.83%<br />
2013/2014 (Year 2) 5.77% 7.77%<br />
2014/2015 (Year 3) 5.37% 7.37%<br />
2015/2016 (Year 4) 3.17% 5.17%<br />
2016/2017 (Year 5) 3.82% 5.82%<br />
2017/2018 (Year 6) 3.13% 5.15%<br />
2018/2019 (Year 7) 2.61% 4.61%<br />
2019/2020 (Year 8) 4.01% 6.01%<br />
2020/2021 (Year 9) 3.74% 5.74%<br />
2021/<strong>2022</strong> (Year 10) 3.33% 5.33%<br />
Again, because of the nature of the targeted rate structure,<br />
the increase (or decrease) in rates for any year for individual<br />
properties can vary markedly.<br />
Non-Rates Income<br />
We rely heavily on other forms of income to finance our<br />
operations. For the period of the LTP, the budget has scheduled<br />
that 54% of our total income is generated from sources other<br />
than rates.<br />
25,000,000<br />
20,000,000<br />
15,000,000<br />
10,000,000<br />
5,000,000<br />
-<br />
For <strong>2012</strong>/2013, the income from non-rate sources is expected<br />
to total $16.6 million and this is scheduled to increase to $23<br />
million by 2021/<strong>2022</strong>.<br />
New Zealand Transport Authority Subsidies<br />
The first key component of non-rate income is NZTA subsidies,<br />
which are used to fund both operating and capital expenditure<br />
relating to the roading network. We have assumed that the<br />
current funding assistance rate of funding provided by NZTA<br />
will be maintained for the period of the LTP. Further discussion<br />
of this is provided in the Forecasting Assumptions on page 150<br />
and in the Key Issues section.<br />
Hanmer Springs Thermal Pools and Spa Revenue<br />
The other key component is the Revenue derived from the<br />
HSTP&S, which accounts for approximately one third of the total<br />
income received. The HSTP&S is run as a separate business unit<br />
of the <strong>Council</strong> and after allowing for Operating Expenses and<br />
Interest, the surpluses are actively used to fund reserve costs<br />
throughout the <strong>District</strong>. The reserve costs include: the cost<br />
of the library, cemeteries, public toilets and a range of district<br />
reserve costs. Over the last five years, the surpluses from the<br />
pools have contributed a total of $7.65 million to these reserve<br />
costs, which would otherwise need to be rated for. Over the life<br />
the long term plan it is forecast that a total of $24 million will<br />
be used from the surpluses derived from the HSTP&S to offset<br />
these reserve costs.<br />
Development Contributions<br />
Other Income<br />
Hanmer Springs Thermal Pools and Spa<br />
NZTA Subsidies<br />
External Interest Received<br />
Development Contributions<br />
Development Contributions also form a key component for<br />
funding capital expenditure which has been required due to<br />
increased growth. It is anticipated that over the life of the LTP, we<br />
will receive a total of $4.3 million in Development Contributions,<br />
however the amount actually received will be dependent on the<br />
level of growth experienced. The Development Contribution<br />
Policy is on page 206.<br />
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Fees and Charges<br />
Fees and Charges account for the remaining non-rate income.<br />
We review our fees and charges each year and try to ensure<br />
that they help offset actual costs and that the activities are not<br />
overly reliant on rate funding instead. We also aim to make the<br />
fees and charges affordable and fair on those who use them.<br />
Targets for Investments<br />
Cash Investments<br />
As a result of a large Capital programme over the 2009/2010 and<br />
2010/2011 years, principally due to the expansion works at the<br />
HSTP&S, we had to take on term debt for the first time. Over<br />
the period of the LTP, we expect to remain as a net borrower. As<br />
a result, we no longer hold any long term cash assets in the form<br />
of bonds or stock. Any spare cash funds are generally held on<br />
call or in a short term investment of less than three months to<br />
earn a small amount of interest as the interest rates are better<br />
than holding the funds in a current account.<br />
Equity Investments<br />
Currently, we hold two equity investments – one in Civic<br />
Assurance and the other in Transwaste Canterbury. Neither<br />
assets are readily tradable on the open market, but we have<br />
objectives for retaining ownerships of these investments.<br />
Our holding in Civic Assurance was to maintain Civic as an<br />
option in the insurance market. Civic was set up to provide<br />
Local Authorities with an option for insurance that generally<br />
met the unique insurance requirements faced by <strong>Council</strong>s.<br />
Civic Assurance was heavily affected by the claims made as a<br />
result of the Canterbury Earthquakes and there was a need<br />
to recapitalise to ensure that it remains part of the insurance<br />
market for local authorities in the future. It is not expected to<br />
return a dividend for over the period of the LTP.<br />
We own 1.2% of Transwaste Canterbury, which owns and<br />
operates the Kate Valley Landfill. The value of our investment<br />
as at 30 June 2011 was $269,000.The Company is 50% owned<br />
by five of the <strong>Council</strong>s in Canterbury and our objective for<br />
holding our investment is to continue to receive dividends<br />
from the Company. The net return to us is approximately 27%<br />
on <strong>Hurunui</strong>’s share of the net asset backing of the Company<br />
and we have budgeted to receive $72,000 per annum from this<br />
investment.<br />
Forestry Investments<br />
We hold approximately 240 hectares of trees. Some of the key<br />
plantations are due for milling during the life of the LTP. Forestry<br />
assets are held as long term investments on the basis of net<br />
positive discounted cash flows, factoring in projected market<br />
prices and annual maintenance and cutting costs. All income<br />
from forestry is included in the statement of comprehensive<br />
income, and this is used to fund replanting of the land. Where<br />
there is an excess of funds, we may distribute this in a manner<br />
we see fit.<br />
External Debt<br />
We have two key areas of borrowing - Internal and External.<br />
The Internal debt is pursuant to our Internal Financing Policy, as<br />
discussed above.<br />
As our cash resources have been drawn down to fund key<br />
capital projects in the past few years, we needed to take on<br />
external debt to manage cash flow. We are now expecting to be<br />
a net borrower for the period of the LTP.<br />
Anticipated Levels of External Debt<br />
As at 31 December 2011, the total amount of external debt we<br />
held was $12 million. At the end of the ten year period, the debt<br />
is expected to be $12.0 million, with the debt level is expected<br />
to peak at $22.5 million over the period between July 2014 and<br />
June 2017. The anticipated debt levels over the period.<br />
Year<br />
Total<br />
Anticipated<br />
Debt<br />
Limits on Debt Levels<br />
Total Anticipated<br />
Interest Expense<br />
<strong>2012</strong>/2013 (Year 1) $18.5 million $969,000<br />
2013/2014 (Year 2) $20.0 million $1,203,000<br />
2014/2015 (Year 3) $21.5 million $1,297,000<br />
2015/2016 (Year 4) $22.0 million $1,359,000<br />
2016/2017 (Year 5) $22.5 million $1,359,000<br />
2017/2018 (Year 6) $21.5 million $1,281,000<br />
2018/2019 (Year 7) $19.5 million $1,156,000<br />
2019/2020 (Year 8) $17.5 million $1,000,000<br />
2020/2021 (Year 9) $14.5 million $828,000<br />
2021/<strong>2022</strong> (Year 10) $12.0 million $750,000<br />
Our External Liability Risk Management Policy sets out the<br />
limits on the level of debt that we can take on. The ratios have<br />
been developed in accordance to the industry standard and<br />
have been set against the levels that are appropriate for us to<br />
take debt from the Local Government Funding Agency (LGFA).<br />
The net debt limits provided for in the policy are that total debt<br />
shall be no more than 100% of total income and no more than<br />
10% of total equity. Based on the levels of income allowed for<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
in the LTP, the limit of the debt that could be taken on is $42.5<br />
million.<br />
Year<br />
100% of Total<br />
Income<br />
10% of Total<br />
Equity<br />
<strong>2012</strong>/2013 (Year 1) $30.3 million $34.2 million<br />
2013/2014 (Year 2) $31.6 million $34.6 million<br />
2014/2015 (Year 3) $32.9 million $35.2 million<br />
2015/2016 (Year 4) $34.3 million $37.7 million<br />
2016/2017 (Year 5) $35.4 million $38.2 million<br />
2017/2018 (Year 6) $36.5 million $38.9 million<br />
2018/2019 (Year 7) $37.9 million $42.0 million<br />
2019/2020 (Year 8) $39.2 million $42.7 million<br />
2020/2021 (Year 9) $40.7 million $43.8 million<br />
2021/<strong>2022</strong> (Year 10) $42.5 million $47.5 million<br />
The policy also provides for the total amount of interest<br />
expenses shall be no more than 5% of total revenue and no<br />
more than 10% of annual rates income. Based on the maximum<br />
of $42.5 million in income, the total interest cost can be no<br />
more than $2.13 million.<br />
Year<br />
5% of total<br />
income<br />
10% of total<br />
annual rates<br />
income<br />
<strong>2012</strong>/2013 (Year 1) $1.52 million $1.36 million<br />
2013/2014 (Year 2) $1.58 million $1.45 million<br />
2014/2015 (Year 3) $1.65 million $1.53 million<br />
2015/2016 (Year 4) $1.72 million $1.59 million<br />
2016/2017 (Year 5) $1.78 million $1.65 million<br />
2017/2018 (Year 6) $1.83 million $1.70 million<br />
2018/2019 (Year 7) $1.90 million $1.75 million<br />
Holding a Debenture Trust Deed provides us with security for a<br />
range of different funding options:<br />
• Registered Bank Debt<br />
• Use of the Local Government Funding Agency<br />
• Issuing <strong>Council</strong> Debt directly to the market<br />
Further information is available in the External Liability<br />
Management Policy.<br />
Implications of <strong>Hurunui</strong>’s Financial Strategy<br />
Assessment of our ability to provide and maintain existing levels<br />
of service and to meet additional demands for service within<br />
those rate increase limits:<br />
We face potential issues in the future in regards to the level<br />
of funding that is expected to be provided for roading from<br />
NZTA as discussed previously in this Financial Strategy. It<br />
has been estimated that the difference over the ten years<br />
between what was scheduled in the AMP and what has<br />
been provided in the LTP amounts to a total of $18 million.<br />
Assessment of our ability to provide and maintain existing levels<br />
of service and to meet additional demands for service within<br />
those debt limits:<br />
As listed in the table above, we are not contemplating<br />
taking on debt greater than $22.5 million and the<br />
maximum amount of interest expected to be charged on<br />
the external debt is budgeted at less than $1.4 million.<br />
Therefore, with the exception of the Roading Network<br />
due to circumstances outlined earlier, our assessment is<br />
that we do have the ability to maintain the existing levels<br />
of service and to meet additional demands for service<br />
within those debt limits.<br />
2019/2020 (Year 8) $1.97 million $1.82 million<br />
2020/2021 (Year 9) $2.04 million $1.90 million<br />
2021/<strong>2022</strong> (Year 10) $2.13 million $1.98 million<br />
Security for Borrowing<br />
Prior to taking on debt for the first time in September 2010, we<br />
prepared a Debenture Trust Deed and selected Perpetual Trust<br />
as our Trustee. The Debenture Trust Deed is a standard security<br />
document for <strong>Council</strong>s. The key security available is that a charge<br />
can be made against the rates of the <strong>Council</strong> to repay debt so<br />
the market perspective on this is that a Debenture Trust Deed<br />
provides a low level of risk for an investor or funding provider,<br />
which in turn should allow for lower interest rates.<br />
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Statement Concerning Balancing of the Budget<br />
Introduction<br />
In terms of the Local Government Act 2002, the <strong>Council</strong> is<br />
balancing the budget over the period of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> as in<br />
most years; the budgeted operating income exceeds budgeted<br />
operating expenditure. There are some areas of expenditure<br />
that the <strong>Council</strong> has resolved not to fund, which are discussed<br />
further. The <strong>Council</strong> also has developed an internal financing<br />
policy to cope with funding for future capital expenditure<br />
requirements.<br />
Local Government Act 2002<br />
Under Section 100 of the Local Government Act 2002, the<br />
<strong>Council</strong> is required to balance the budget. The provisions of the<br />
sections specifically state that “A local authority must ensure<br />
that each year’s projected operating revenues are set at a level<br />
sufficient to meet that year’s projected operating expenses”.<br />
The Act goes further to state that a local authority may set<br />
projected operating revenues at a different level from that<br />
required if the <strong>Council</strong> resolves that it is financially prudent to<br />
do so, having regard to:<br />
to that activity. In some cases, the <strong>Council</strong> has resolved to use<br />
reserves to fund some specific expenditure. This is particularly<br />
the case where the <strong>Council</strong> actively uses the Reserve built up<br />
by surpluses recorded from the Hanmer Springs Thermal Pools<br />
and Spa to fund the operating expenditure of other reserves<br />
throughout the entire district.<br />
Receipt of Capital Income<br />
For some of the <strong>Council</strong> activities, the <strong>Council</strong> has budgeted to<br />
receive various amounts of income that are of a capital nature.<br />
This capital income is in the form of development and reserve<br />
contributions and vested assets which are not used to reduce<br />
the amount of rates to be charged of a particular activity. These<br />
amounts are instead applied to the capital requirements of the<br />
activity that it relates to.<br />
Funding of Depreciation<br />
The introduction of the Local Government Amendment (No 3)<br />
Act 1996 imposed the requirement for local authorities to fund<br />
depreciation.<br />
a) The estimated expenses of achieving and maintaining<br />
the predicted levels of service provision set out in the<br />
long-term council community plan, including the estimated<br />
expenses associated with maintaining the service capacity<br />
and integrity of assets throughout their useful life; and<br />
b) The projected revenue available to fund the estimated<br />
expenses associated with maintaining the service capacity<br />
and integrity of assets throughout their useful life; and<br />
c) The equitable allocation of responsibility for funding<br />
the provision and maintenance of assets and facilities<br />
throughout their useful life; and<br />
d) The funding and financial polices set out in this long<br />
term plan<br />
Use of Reserves<br />
The council is forecasting to record an overall deficit (excluding<br />
gains on Asset Revaluation) in each of the first three years of teh<br />
<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>. These deficits have been caused by the <strong>Council</strong>’s<br />
decision to fund more reserve based costs than it is generatimg<br />
from the surpluses of the Hanmer Springs Thermal Pools & Spa.<br />
The <strong>Council</strong> is comfortable with this approach as it is able to<br />
utilise surplusses that have been generated over the past few<br />
years that have yet to be allocated. The <strong>Council</strong> is forecasting<br />
to record surpluses for each year of the <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> from<br />
year four onwards. In some activities however, the <strong>Council</strong> has<br />
resolved not to set revenue to fund all of the costs relating<br />
In 1999, the <strong>Council</strong> widely consulted with its community over<br />
this requirement and it concluded that the <strong>Council</strong> will not cash<br />
fund depreciation on Water and Sewer assets, roading or ward<br />
Amenity assets. In addition, it has been resolved not to fund<br />
depreciation on the library building.<br />
Rates for these activities are set at a level higher than required<br />
to meet the operating costs in terms of the Internal Financing<br />
System. The additional rates will be used to either repay debt (if<br />
the activity holds some internal debt) or used to build an amount<br />
to fund future capital expenditure. The Internal Financing system<br />
is fully discussed in the Internal Financing Policy.<br />
Implications to Not Fully Fund<br />
Depreciation<br />
As there are no specific depreciation reserves created for water,<br />
sewer, roading and ward amenities, there are no funds available<br />
immediately to apply to capital expenditure requirements of<br />
each of these activities. As a result, the community of benefit<br />
is required to meet the cost of the capital expenditure through<br />
the use of internal loans or fund the capital cost through rates<br />
and other income.<br />
If internal loans are used, there is the requirement on that<br />
community of benefit to fund not only the appropriate interest<br />
charge but also a portion of the principal of the outstanding loan<br />
on an annual basis. Both interest and principal repayments has<br />
32
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
the effect of increasing the operational cost that the community<br />
must bear and as a result, increases in the rate requirement are<br />
inevitable. The Internal Financing system goes further to ensure<br />
that communities continue to fund additional payments, even if<br />
the debt has been repaid, to build up a reserve fund to assist in<br />
funding capital expenditure requirements in the future.<br />
<strong>Council</strong> is comfortable with increasing rates to meet the cost of<br />
interest and principal because existing ratepayers have previously<br />
been relieved of any rate increases that may have been required<br />
if the <strong>Council</strong> resolved to fully fund the depreciation on those<br />
assets.<br />
33
www.hurunui.govt.nz<br />
<strong>Community</strong> Outcomes<br />
Introduction<br />
‘<strong>Community</strong> outcomes’ are the community’s overall aspirations<br />
for the future of the <strong>Hurunui</strong> district. They relate to all aspects<br />
of our rural life – our environment, economy, social, and cultural<br />
wellbeing. These four wellbeings are commonly referred to<br />
by government agencies as summarising the various aspects<br />
needed for healthy community life in New Zealand.<br />
The community outcomes in this long term plan relate directly<br />
to the activities that we do as a council as they are the only<br />
ones we have direct control over. There can be many more<br />
community outcomes which can only be achieved with help<br />
from other organisations such as business, government, the<br />
police and many others.<br />
Hawarden /Waikari Volunteer Rural Fire Force (VRFF)<br />
The term ‘community outcomes’ is used to describe what<br />
people want to happen now and in the future for the benefit<br />
of not only today’s people, but future generations. <strong>Community</strong><br />
outcomes are about improving the wellness of our communities<br />
over time in a sustainable manner.<br />
Identifying the <strong>Community</strong> Outcomes<br />
In past years, we have sought public views to identify what our<br />
communities consider important for the future of the <strong>Hurunui</strong><br />
<strong>District</strong>. In addition to this, we have often sought community<br />
views on a variety of issues and we feel confident we have a<br />
good understanding of what people in the <strong>Hurunui</strong> consider to<br />
be important. We have since scaled down previously identified<br />
community outcomes to five broad outcomes that we as a<br />
<strong>Council</strong> are able to work toward achieving. These community<br />
outcomes are described in table 1. and each is aligned to one of<br />
the four key wellbeings as well as the service or activity that we<br />
provide to contribute toward achievement of them.<br />
Hawarden/Waikari & Scargill VRFF<br />
Scargill VRFF<br />
34
Table 1:<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
<strong>Community</strong> Outcomes and the Link to What <strong>Council</strong> Does (Activities)<br />
Social<br />
Wellbeing Outcome Definition <strong>Council</strong> Activities (How we contribute)<br />
Cultural<br />
Economy<br />
Environmental<br />
A desirable and<br />
safe place to live<br />
A place where<br />
our traditional<br />
rural values and<br />
heritage make<br />
<strong>Hurunui</strong> unique<br />
A place with a<br />
thriving local<br />
economy<br />
A place with<br />
essential<br />
infrastructure<br />
A place that<br />
demonstrates<br />
environmental<br />
responsibility<br />
• We have attractive well designed<br />
townships<br />
• Communities have access to<br />
adequate health and emergency<br />
services and systems and<br />
resources are available to meet<br />
civil defence emergencies<br />
• Risks to public health are<br />
identified and appropriately<br />
managed<br />
• People have a range of<br />
opportunities to participate in<br />
leisure and culture activities<br />
• Our historic and cultural<br />
heritage is protected for future<br />
generations<br />
• We are seen as a good place to<br />
do business, to live and to visit<br />
• We have a strong emphasis<br />
on service delivery across<br />
all infrastructure including<br />
roading, water (for drinking<br />
and development), waste water,<br />
stormwater and solid waste<br />
• We protect our environment<br />
while preserving people’s<br />
property rights<br />
• We minimise solid waste to the<br />
fullest extent, and manage the rest<br />
in a sustainable way<br />
Measuring and Reporting our Progress<br />
Each of the above outcomes is aligned to our services which<br />
will contribute toward the achievement of them. We are<br />
responsible for monitoring our performance each year, and the<br />
results are provided in our Annual Report. How we are doing<br />
with each of our services will give a good indication of how we<br />
are going overall to achieve the community outcomes. See the<br />
<strong>Council</strong> Activity pages for performance information.<br />
Groups<br />
• <strong>Community</strong> Services and<br />
Facilities<br />
• Environment and Safety<br />
• Governance<br />
• <strong>Community</strong> Services and<br />
Facilities<br />
• Hanmer Springs Thermal<br />
Pools & Spa<br />
• <strong>District</strong> Promotion<br />
• Hanmer Springs Thermal<br />
Pools & Spa<br />
• Water Supply<br />
• Sewerage<br />
• Stormwater & Drainage<br />
• Roads & Footpaths<br />
• Environment & Safety<br />
Individual services<br />
Property - Pensioner Housing,<br />
Residential Housing, Public Toilets,<br />
<strong>Council</strong> Offices & Depots, Car Parks,<br />
Medical Centres, Halls, Swimming<br />
Pools, Township Maintenance<br />
Emergency Services - Civil Defence,<br />
Rural Fire<br />
Compliance and Regulatory<br />
Functions - Building, Public Health,<br />
Liquor Licensing, Animal Control<br />
Governance<br />
<strong>Community</strong> Services - Library, Youth,<br />
<strong>Community</strong> Development, Grants<br />
and Service Awards<br />
Reserves - Parks and Reserves,<br />
Queen Mary Historic Hospital<br />
Reserve, Cemeteries<br />
Thermal Pools – Spa, i-site, pools,<br />
café<br />
Promotion<br />
Tourism<br />
Economic Development<br />
Water Schemes<br />
Sewerage Schemes<br />
Stormwater & Drainage<br />
Roading - Roads, Bridges, Footpaths,<br />
Street Lighting, Road Safety<br />
Resource Management & <strong>Plan</strong>ning<br />
- RMA Consents, Administration<br />
& Policy Development, Subdivision<br />
Inspection<br />
Waste Minimisation - Refuse,<br />
Recycling, Transfer Stations, Litter Bin<br />
Collection<br />
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Aligning Our <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> With the Government’s Drivers<br />
for Economic Growth<br />
The Government’s Economic Growth<br />
Agenda<br />
The government’s principal economic goal is to deliver greater<br />
prosperity, security and opportunities to all New Zealanders.<br />
It wants to improve New Zealand’s fundamental growth<br />
momentum. An important part of this is through the economy<br />
rebalancing itself toward exporting and investment. The<br />
government has a six-point Economic Growth Agenda aimed at<br />
creating an environment that allows businesses to grow, export<br />
and create high-value jobs. The six drivers for economic growth<br />
are:<br />
• Enable better science, innovation and trade.<br />
• Remove red tape and unnecessary regulation.<br />
• Deliver better, smarter, public services.<br />
• nvest in productive infrastructure.<br />
• Lift education and skills.<br />
• Create a growth-enhancing tax system.<br />
<strong>Hurunui</strong>’s Annual Economic Growth<br />
Business and Economic Research Limited (BERL) Regional<br />
Performance Indicators Report for 2011, published in March <strong>2012</strong>,<br />
which measures each district’s economic performance, ranked<br />
<strong>Hurunui</strong> 10th out of 66 territorial local authorities in New<br />
Zealand. Nine key performance indicators were compared<br />
for the year ending March 2011. We maintained our 10th place<br />
2010 ranking.<br />
Infometrics Limited Annual Economic Profile for 2010, published in<br />
2011, said Gross Domestic Product (GDP) in <strong>Hurunui</strong> measured<br />
$303m in 2010, down 0.3% from a year earlier. New Zealand’s<br />
GDP declined by 0.5% over the same period. <strong>Hurunui</strong>’s GDP<br />
growth of -0.3% ranked it number 32 among the 72 territorial<br />
authorities for GDP growth.<br />
Agriculture, fishing and forestry was the largest industry in<br />
<strong>Hurunui</strong> in 2010 accounting for 45.3% of total GDP, followed by<br />
business and property services (12.4%).<br />
<strong>Council</strong>’s Contribution Towards Economic<br />
Growth<br />
From a local perspective, <strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> plays a<br />
significant role in growing the local economy. Its involvement in<br />
areas such as leadership, planning and infrastructure, regulation,<br />
services, business support, and social and community, actively<br />
create environments that attract, retain, and grow economic<br />
activity. Our contribution occurs within its total annual spending<br />
(planned to be $30m in the <strong>2012</strong>/13 year). This spending can<br />
be viewed as an investment into the <strong>Hurunui</strong> environment that<br />
36<br />
enables individuals, households and organisations to produce<br />
and contribute to economic growth.<br />
Leadership: We contribute through our role in local strategic<br />
planning. We have developed a new vision (‘<strong>Community</strong> partnership<br />
in growth and wellbeing’) and have developed a <strong>Long</strong><br />
<strong>Term</strong> <strong>Plan</strong> that provides for economic growth and allows business<br />
interests to flourish. Key drivers for the <strong>Plan</strong> include core<br />
principles of:<br />
• Focusing on core services.<br />
• Financial responsibility and affordability.<br />
• Continuous improvement in service to everyone in our<br />
district.<br />
• Facilitating appropriate growth in the district.<br />
and<br />
• Maximising our Hanmer Springs Thermal Pools and Spa<br />
profits.<br />
• <strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> being a High Performance<br />
Organisation.<br />
Infrastructure: We contribute through our role as an infrastructure<br />
provider. Our investment in infrastructure plays a direct<br />
role in creating an attractive environment for business to<br />
invest.<br />
Regulation: We contribute through our regulatory role. We<br />
can make it easier for new investment, for businesses to grow<br />
and create jobs.<br />
Services: We contribute through our role in providing local<br />
amenities, such as libraries and reserves. We provide services<br />
that make our communities attractive to skilled migrants.<br />
Business Support: We contribute through our support to<br />
business and industry development. Our economic development<br />
arm, Enterprise North Canterbury (ENC) carries out a range of<br />
activities that help retain businesses and support growth and<br />
prosperity in North Canterbury. ENC’s budget is over $1.1m<br />
p.a. It receives 44% of its funding from the <strong>Hurunui</strong> and Waimakariri<br />
<strong>District</strong> <strong>Council</strong>s (HDC funding is $50,000 p.a.); 30%<br />
from central government contracts; 18% from the private sector<br />
and other grants; and 8% from sponsorship.<br />
We also continue by promoting tourism in order to attract<br />
visitors into the district to enable local business growth (refer<br />
to the <strong>District</strong> Promotion activity for proposed tourism changes<br />
outlined for consultation).<br />
<strong>Community</strong>: We contribute through our contribution to social<br />
and community affairs, strengthening local social capital.<br />
Overall, we have a fundamental role in ‘shaping’ places in the<br />
<strong>Hurunui</strong>, like our towns, ensuring infrastructure and amenities<br />
are provided to make our district attractive to investment and<br />
skilled immigrants.
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Some of the important things we plan to do in this <strong>Long</strong> <strong>Term</strong><br />
<strong>Plan</strong> that directly relate to the government’s six-point Economic<br />
Growth Agenda are highlighted below:<br />
Enable Better Science, Innovation and<br />
Trade<br />
Science and innovation are enormously important drivers of<br />
New Zealand’s economic growth.<br />
ENC will be proactive in searching for and supporting new<br />
initiatives that create substantial wealth in North Canterbury.<br />
Particular emphasis will be given to the primary sector and its<br />
related servicing industries. ENC’s Rural Technology Transfer<br />
Project is particularly relevant. This project is about turning new<br />
ideas developed at Lincoln Research campuses into practical<br />
applications resulting in commercial returns on the farm.<br />
Improved techniques for both dryland farming and irrigated land<br />
use options are being pursued.<br />
ENC will continue to facilitate the establishment of local<br />
industry groupings where these are sought by the sector, to<br />
achieve efficiencies in marketing, product development and<br />
securing of resources. Management and marketing of the North<br />
Canterbury Food and Wine Trail is one such example.<br />
ENC assesses economic development opportunities in local<br />
towns. A Cheviot project is currently underway.<br />
In 2011 we approved a <strong>Hurunui</strong> Tourism Strategy and currently<br />
continue to fund tourism promotion in order to attract visitors<br />
into the district to support local business growth. Likewise, ongoing<br />
investment in and the marketing of our Hanmer Springs<br />
Thermal Pools and Spa complex is provided for in this <strong>Plan</strong>;<br />
the Thermal Pools and Spa complex are an internationally<br />
recognised tourism icon that return a growing income stream<br />
to fund works and services on <strong>Council</strong> reserves and off-set the<br />
size of the district wide rate requirement.<br />
Overseas trade links can be a productivity springboard. For this<br />
purpose, councils often form overseas sister city relationships.<br />
To date, we have not taken on such a role. Forming a relationship<br />
with Hung Hu City in China at a cost of $7,500 p.a. has been<br />
requested of <strong>Council</strong>. More information is being sought. No<br />
provision for such a relationship is included in this <strong>Plan</strong> at this<br />
stage.<br />
Remove Red Tape and Unnecessary<br />
Regulation<br />
We have implemented the government’s recent simplified<br />
Resource Management Act changes to reduce costs and make<br />
processes clearer; and it will implement any further RMA and<br />
building regulation reforms when enacted, to make it easier for<br />
businesses to grow, invest and create jobs.<br />
In terms of our own regulations, over the past few years we<br />
have carried out a significant number of <strong>District</strong> <strong>Plan</strong> changes to<br />
ensure the <strong>District</strong> <strong>Plan</strong> is up to date and that our rules reflect<br />
current thinking. Among these approved changes, relatively<br />
large amounts of land have been opened up for development<br />
in Amberley, Hanmer Springs and Gore Bay, new areas of land<br />
have been zoned for business and industrial purposes, and<br />
appropriate rules for vine yards wanting to install frost fans have<br />
been agreed.<br />
We are required to give effect to recent new National Policy<br />
Statements (NPS) such as the NPS for Renewable Electricity<br />
Generation 2011. The government has a renewable electricity<br />
target of 90% of electricity from renewable sources by 2025. This<br />
requires a significant increase in the proportion of electricity to<br />
be generated from renewable resources. The government was<br />
concerned renewable electricity generation was being unduly<br />
impeded by variable provisions in local authority policies and<br />
plans and changing attitudes to the environmental effects of<br />
development associated with renewable electricity generation<br />
activities. Accordingly there are now new guidelines to ensure<br />
the national significance of renewable electricity generation and<br />
associated activities are more explicitly recognised in policy<br />
development and resource management consenting processes.<br />
This <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> contains funding for a comprehensive<br />
review of our <strong>District</strong> <strong>Plan</strong>. We expect the <strong>District</strong> <strong>Plan</strong> to be<br />
ready for notification by the end of 2013.<br />
The Environment Court released its decision at the end of<br />
2011 on the Mainpower proposal to establish and operate a<br />
$200m wind farm at Mt Cass Waipara. The initial application was<br />
declined by <strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> appointed commissioners.<br />
During extensive mediation the proposal was modified and this<br />
modified proposal was directly referred to the Court and it<br />
is this proposal that has been granted consent, subject to an<br />
extensive suite of conditions. Mainpower have eight years to<br />
give effect to the consent. The <strong>Council</strong> will have an important<br />
regulatory role to fulfil in respect to consent requirements.<br />
In 2011 we agreed to directly refer Meridian Energy’s proposed<br />
$200m to $300m Greta Valley wind farm development consent<br />
application to the Environment Court. Meridian Energy has<br />
agreed to pay our direct referral costs. We expect the Court<br />
will be hearing the application by mid-<strong>2012</strong>.<br />
In September 2011, developers announced their plans for a<br />
$120m shopping centre and residential development on the<br />
eastern side of Amberley. The $30m shopping centre on State<br />
Highway One was granted a non-notified resource consent<br />
by us in February 2010, but developers are still finalising plans<br />
and have yet to provide a firm start date for what is likely to be<br />
a staged development.<br />
The $90m residential development is expected to open up 500<br />
to 600 lots in total. We granted a subdivision application for the<br />
first stage of the development late last year.<br />
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www.hurunui.govt.nz<br />
In October 2011, another 60 lot subdivision application was<br />
granted on the Western side of Amberley.<br />
ENC will continue to play a role assisting new businesses<br />
establish in the district. Part of this role is acting as an interface<br />
for businesses with us to ensure regulatory processes are work<br />
effectively.<br />
In preparation of this <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> we commissioned<br />
PricewaterhouseCoopers to review our Development<br />
Contributions policy. As a result, a number of minor amendments<br />
were agreed to ensure we will collect the correct amount of<br />
money from developers to cover the costs of growth (refer to<br />
the Development Contributions section of this <strong>Plan</strong>).<br />
Deliver Better, Smarter, Public Services<br />
We have a High Performance Organisation culture. A range of<br />
work aimed at improving customer services and achieving cost<br />
savings and value for money is undertaken each year.<br />
We competitively tender a significant amount of its work.<br />
Last year we saved $200,000 with our three year public toilet<br />
cleaning contracts. Grass moving and street cleaning tendering<br />
also resulted in savings. In our largest contract area, road<br />
maintenance, last year Downers won this work, tendering a<br />
three year price of $11,595,216. This was $3,707,704 under<br />
our engineer’s estimate based on historic rates, and $2,113,444<br />
lower than the next lowest tendered price. Savings are reinvested<br />
into the roading network.<br />
We are involved in and will continue to look for opportunities<br />
in Shared Services arrangements in order to deliver our<br />
services and to help get value for money (refer Shared Services<br />
references throughout this <strong>Plan</strong>). See Table1: Shared Services.<br />
ENC will continue to carry out regular research with local<br />
businesses to identify gaps, opportunities and track business<br />
issues and trends.<br />
Invest in Productive Infrastructure<br />
First-class infrastructure is an important enabler of higher<br />
productivity and economic growth. In this <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong><br />
we are investing in owning and maintaining a high standard<br />
of infrastructure that meets both our community’s economic,<br />
social, cultural and environmental needs, and the government’s<br />
legislative requirements.<br />
Importantly, this <strong>Plan</strong> makes the significant funding provision<br />
necessary for <strong>Hurunui</strong> to be able to meet government’s Drinking<br />
Water Standards. The <strong>Plan</strong> provides for more public toilets;<br />
more cemetery land; new stormwater infrastructure; more<br />
parks and reserves infrastructure; for library, hall and service<br />
centre improvements; and for new emergency management and<br />
rural fire equipment, to name just a few. It also contains initial<br />
proposals for new sporting and medical centres.<br />
Table 1: Shared Services<br />
<strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> Shared Services<br />
Arrangements as at February <strong>2012</strong><br />
Collaboration Joint Procurement Shared Services<br />
Canterbury Water Electoral Services Transwaste Kate Valley<br />
Management Strategy<br />
landfill<br />
Civil Defence<br />
Rural Fire<br />
Flood Protection<br />
Office accommodation<br />
(for CRC)<br />
Transportation<br />
priorities<br />
SOLGM – best practice<br />
work<br />
Ingenium – asset<br />
management work<br />
Building Accreditation<br />
Environmental Health<br />
<strong>District</strong> <strong>Plan</strong> work<br />
Rate collection (for<br />
CRC)<br />
IT/ GIS/ Library<br />
IT (hardware and<br />
software)<br />
SOLGM – industry<br />
good work<br />
SOLGM – staff<br />
recruitment and<br />
retention<br />
Regional Purchasing<br />
Group (electricity, fuel)<br />
ENC<br />
CED Co Ltd<br />
Canterbury Museum<br />
Insurance – Riskpool/<br />
LAPP/ Civic<br />
Building control work<br />
Regional planning Road Maintenance<br />
responses<br />
(some sharing with<br />
Waimakariri DC)<br />
HDC Natural<br />
Biodiversity (govt grant)<br />
Environment Fund (joint<br />
grant with Mainpower)<br />
<strong>Community</strong><br />
Development (govt<br />
grant)<br />
Libraries (located with<br />
local schools)<br />
Water (Ashley<br />
scheme extending into<br />
Waimakariri DC area)<br />
Water will be a key part of North Canterbury’s transformational<br />
economic development. We continue to support the Canterbury<br />
Water Management Strategy in this <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong>. We provide<br />
for our share of the operation of the <strong>Hurunui</strong> Waiau Zone<br />
Committee, which is a joint committee with the Canterbury<br />
Regional <strong>Council</strong>. The Regional <strong>Council</strong>’s Regional Water<br />
Committee will be considering the matter of how to fund the<br />
provision of infrastructure associated with any large water<br />
storage options that are seen as feasible. Properly managed, bulk<br />
water storage could result in large productivity gains in North<br />
Canterbury. No <strong>Council</strong> funding for such a purpose has been<br />
discussed or provided for in this <strong>Plan</strong> to date.<br />
With the removal of the <strong>Hurunui</strong> and Waiau River moratoriums<br />
on 1 October 2011, Meridian Energy and Ngai Tahu Property<br />
have jointly lodged initial consent applications for a proposed<br />
hydro and irrigation scheme to be located between the Waiau<br />
and <strong>Hurunui</strong> Rivers. The development of the project will be<br />
dependent on the <strong>Hurunui</strong> Waiau Regional <strong>Plan</strong> progress<br />
in <strong>2012</strong> and the RMA consent process. The parties still have<br />
significant investigations and design work to complete and<br />
believe construction is likely to be at least 10 years away. We are<br />
38
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
likely to have an important consenting role.<br />
The <strong>Hurunui</strong> Water Project has also lodged consent for Waitohi<br />
storage in line with the Zone Implementation Programme’s<br />
preferred option.<br />
The <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> contains further capital funding provision<br />
for on-going renewal and refreshment of our Hanmer Springs<br />
Thermal Pools and Spa complex.<br />
ENC is also focusing on government’s rural broadband delivery<br />
project (directed at schools and hospitals) to put together local<br />
business consortia to investigate higher capacity broadband<br />
services for rural businesses to create new wealth, as an<br />
adjunct to the government’s programme. We will be involved in<br />
consenting requirements for at least two new cell phone towers<br />
that are planned as part of the roll-out.<br />
Lift Education and Skills<br />
ENC will continue to provide training and coaching programmes<br />
aimed at improving local business skills and business capability.<br />
ENC is carrying out work to support the Amuri Dairy Employers<br />
Group and Dairy NZ to improve employment practices, and the<br />
recruitment and retention of employees in the Amuri area.<br />
We continue to run our Secondary Education School Achievers<br />
Awards, giving out $10,000 annually to assist young people to<br />
undertake further study.<br />
We continue to run our Youth Development Programme, aimed<br />
at helping young people develop skills – both leadership and<br />
technical.<br />
Our Library is supporting the INZONE Career Information<br />
Kiosk initiative. This is aimed at helping young people identify<br />
suitable career options.<br />
Create a Growth-Enhancing Tax System<br />
Tax legislation and practice are constantly changing and it can<br />
be a challenge within a small council to maintain the level of<br />
knowledge required to ensure compliance with the various<br />
tax acts. In November 2009 we commissioned Toovey Eaton<br />
McDonald Ltd to review our tax compliance. They were<br />
impressed with the overall level of compliance. A number of<br />
technical and relatively minor observations were made as part<br />
of the review for staff to action.<br />
39
www.hurunui.govt.nz<br />
Water Management<br />
Canterbury Initiatives and Background<br />
Water in Canterbury is a very topical and potentially<br />
controversial issue, subject to many studies and public scrutiny.<br />
The most wide ranging review in Canterbury to date has been<br />
the Canterbury Strategic Water Study (CSWS). Stage 1 of the<br />
CSWS, undertaken by Lincoln Environmental in response to<br />
the severe drought of 1998 and published in 2002, concluded<br />
that on an annual basis there is sufficient water in Canterbury<br />
to meet likely future demand and development, but that there<br />
were seasonal and geographic mismatches between supply and<br />
demand. The initial study concluded that water storage and<br />
distribution should be considered as part of meeting future<br />
demands for water, to supplement supply in times of low natural<br />
flows.<br />
Under the auspices of the Canterbury Mayoral Forum, and<br />
facilitated by Crown and local funding, the CSWS progressed<br />
from 2004 through to 2008, respectively identifying a wide range<br />
of potential water storage sites (Stage 2), and then undertaking<br />
initial high level desk top evaluations of a more limited<br />
number of major storage options (Stage 3). These evaluations<br />
incorporated environmental, social, cultural, recreational and<br />
economic viewpoints and included multi stakeholder group<br />
meetings. Stage 3 concluded that a range of issues, opportunities,<br />
trade-offs and concerns would need to be considered and<br />
managed for any of the storage options to be taken further. Of<br />
all the options considered, the <strong>Hurunui</strong> catchment option (up<br />
to 68,000 hectares of irrigated land) was seen to be perhaps the<br />
most viable hydrologically, albeit not without other issues and<br />
concerns for some stakeholders.<br />
The CSWS findings were subsequently put on hold (from mid-<br />
2008), while wider social, environmental and economic aspects<br />
were canvassed in a structured feedback process (in late 2008).<br />
The Canterbury Strategic Water Study itself was renamed<br />
‘Canterbury Water Management Strategy’ (CWMS) as it moved<br />
through Stage 4 reviews, which culminated in public consultation<br />
in May 2009. This eventually resulted in the publication of the<br />
finalised strategy in October and adopted by the <strong>Council</strong> in<br />
November 2009.<br />
The Wider Scene & Context:<br />
A <strong>Hurunui</strong> Perspective<br />
New Zealand’s GDP and national prosperity continues to<br />
be based on primary production and exports from the land.<br />
Recent developments at all levels seem to suggest that the<br />
country’s reliance on its land based economy will become even<br />
greater in the years ahead. <strong>Hurunui</strong> has a traditional focus on<br />
grass fed food and fibre production, and the present and future<br />
prosperity of our communities, and their wellbeing on all fronts,<br />
relies on <strong>Hurunui</strong> continuing to play to this traditional primary<br />
sector strength.<br />
The downside effects of the severe droughts of the late 1990s<br />
(which in fact triggered the initial Canterbury Strategic Water<br />
Study) are testimony to the risk of “doing nothing” with<br />
regard to future proofing our land based production, and our<br />
community prosperity. These same droughts, and downturns<br />
in the agricultural economy, led to major visible decline in<br />
<strong>Hurunui</strong>’s rural townships, and the implementation of a <strong>Hurunui</strong><br />
Tourism strategy was one of the responses. Given the pressures<br />
of the global economy, and international tourism outlook, it is<br />
highly unlikely that tourism in <strong>Hurunui</strong> could be the platform for<br />
widespread prosperity across all communities and sectors, going<br />
forward. Although tourism will be important, it will not replace<br />
traditional primary production. Further, it must be remembered<br />
that our tourism model is land based, given the attractions of<br />
our striking landscapes, the traditional North Canterbury rural<br />
character and values, the unique Hanmer Springs alpine spa<br />
village, viticulture in the Waipara Valley, and more.<br />
We believe that this issue of prosperity and the critical<br />
importance of our land based industries and exports, is even<br />
more important than many New Zealanders presently realise.<br />
World food production is coming under increasing pressure<br />
from the competing interests of bio-fuel production, climate<br />
change, world population increase, socio economic growth and<br />
development in countries such as India and China….”our planet<br />
and global communities need high quality food in ever increasing<br />
volumes, and New Zealand’s key role, historically, presently and<br />
into the future, is as an efficient and sustainable food producer<br />
and exporter. Such exports will be crucial to provide for New<br />
Zealand’s import hungry lifestyle and prosperity for all”.<br />
The subject of water is therefore of major importance to us.<br />
Given the drought prone nature of the <strong>Hurunui</strong>, we believe<br />
the future prosperity of the district can only be assured with<br />
reliable sources of water to irrigate and support an increasing<br />
proportion of its “food and fibre” producing farmland. Further,<br />
there is also an on-going challenge for us to provide plentiful<br />
domestic and stock water supplies and to meet New Zealand’s<br />
drinking water standards.<br />
We firmly believe that this <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> represents the best<br />
opportunity to demonstrate a sense of leadership, by continuing<br />
to support the CWMS through the <strong>Hurunui</strong>-Waiau Zone<br />
committee.<br />
<strong>Hurunui</strong> – Waiau Zone Committee<br />
In July 2010, the <strong>Hurunui</strong> Waiau Zone Committee was formed<br />
as a joint committee of the <strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> and<br />
Environment Canterbury. This committee was the first of the<br />
Canterbury formed ‘Zone Committees’ to be established as part<br />
of the broader Canterbury Water Management Strategy. The<br />
<strong>Hurunui</strong> Waiau Zone Committee has worked collaboratively<br />
40
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
to develop recommendations on water management in as<br />
described in the Zone Implementation Programme (ZIP). See<br />
a summary of the ZIP appended to this <strong>Plan</strong>. A full copy is<br />
available on our <strong>Council</strong> website.<br />
The Zone Committee and this ZIP are part of implementing<br />
the Canterbury Water Management Strategy (CWMS) in<br />
the <strong>Hurunui</strong> Waiau Zone. The CWMS sets as its first order<br />
priorities: environment, customary use, community supplies<br />
and stock water; with second order priorities as irrigation,<br />
renewable electricity generation, recreation and amenity. The<br />
Zone Committee recognizes that clean drinking water, land use,<br />
water quality and quantity, environmental flows and allocation<br />
for the rivers, biodiversity protection and enhancement,<br />
irrigation, hydro power development and water storage options,<br />
and the principles of kaitiakitanga are all (intimately) interrelated<br />
and must be considered as a whole rather than in isolation. The<br />
ZIP recommends actions and approaches for collaborative<br />
and integrated water management solutions to achieve the<br />
CWMS vision, “to enable present and future generations to<br />
gain the greatest economic, environmental, recreational and<br />
cultural benefits from our water resources”. In accordance<br />
with the CWMS, the Zone Committee has arrived at its<br />
recommendations through consensus.<br />
Drinking Water Quality<br />
Under this Strategy, we fully acknowledge that our focus on<br />
productive development must be matched with a similar<br />
energy and commitment to drinking water standards. See<br />
the ‘Key Issues’ and ‘Water Supply’ sections of this plan for a<br />
comprehensive explanation of our intentions to address this<br />
issue across the <strong>Hurunui</strong> district.<br />
Land and Water Quality Use Research<br />
<strong>Council</strong> will continue to support initiatives, with Enterprise<br />
North Canterbury and Environment Canterbury, and other<br />
appropriate agencies, to position <strong>Hurunui</strong> at the forefront of<br />
land use and water quality research programmes, projects and<br />
pilots in the interests of <strong>Hurunui</strong> and all rural New Zealand. We<br />
believe <strong>Hurunui</strong> is well placed to pursue this lead role, especially<br />
given our dry east coast climate and our strong relationships<br />
with entrepreneurial landowners and agencies. We believe that<br />
this is a critically important component of our overall strategic<br />
and comprehensive approach, particularly to demonstrate that<br />
the <strong>Hurunui</strong> Water Management Strategy in relation to storage<br />
and irrigation will require landowners to commit to best<br />
industry practise and the uptake of available science.<br />
Environmental, Social and<br />
Recreational Interests<br />
The environmental, social and recreational values of our<br />
rivers and lakes are critical to the <strong>Hurunui</strong>. This point cannot<br />
be overemphasised. We fully recognise this and support the<br />
concept of having healthy rivers, lakes and streams in the<br />
district. We have established a close working relationship with<br />
the Department of Conservation, Environment Canterbury<br />
and Ngai Tahu, and are extending this to other agencies and<br />
interest groups on both a general and case specific basis. (e.g.<br />
Our present work on the Waipara River is an example of our<br />
commitment to play a proactive role in facilitating solutions<br />
balancing environmental, recreational and other interests.)<br />
Advocacy<br />
It should be clear from this strategy that we see the <strong>Hurunui</strong><br />
Water Management Strategy as a critical component that has<br />
the potential to influence, positively or negatively, every aspect<br />
of wellbeing and prosperity in this district. Accordingly, we are<br />
committed to pursue every advocacy role we can, in support of<br />
the <strong>Hurunui</strong> Water Management Strategy. In particular, we will:<br />
• Continue to play a positive, proactive part in the<br />
Canterbury Water Management Strategy<br />
• Lobby Government to position any water development<br />
project that meet the aims of the ZIP as important<br />
infrastructure developments, in the interests of <strong>Hurunui</strong>,<br />
Canterbury and NZ<br />
• Maintain and/or build relationships with all key<br />
stakeholders and interest groups<br />
Conclusion:<br />
The Key Principle of “Balance”<br />
This section on Water Management as outlined has been<br />
deliberately included to recognise the importance of the<br />
strategic issue of water. We cannot over emphasise the key<br />
principle of balance that we firmly believe must be achieved if<br />
true prosperity for all is to result. This is not a strategy about<br />
irrigation and land use development at any cost. It is equally<br />
not a strategy about locking up our resources and assets for<br />
the benefit of a few, whoever they may be. The guiding themes<br />
of the <strong>Hurunui</strong> Water Management Strategy are responsible<br />
and sustainable growth and development for <strong>Hurunui</strong> and the<br />
prosperity of its communities. At the same time, it is to also<br />
protect natural and traditional environmental and recreational<br />
values, and a commitment to pursuing and applying best<br />
practice land use and water quality research, scientific advances<br />
41
www.hurunui.govt.nz<br />
in water use efficiency and water conservation. <strong>Hurunui</strong> is at<br />
the forefront of this balanced, comprehensive and critically<br />
important strategy. That is the role we are engaged in with our<br />
community’s support and encouragement.<br />
<strong>Hurunui</strong> River - Acrylic on Canvas - by Stella Sales<br />
42
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Sustainability<br />
• Walking and Cycling Strategy – the intention is to<br />
develop a series of linking walking and cycling tracks in<br />
Introduction<br />
the <strong>District</strong><br />
Sustainability is a key ideal of the Local Government Act<br />
2002 which sets out the requirements for taking a sustainable<br />
development approach, and advises that we should take into<br />
account the social, economic, and cultural wellbeing of people<br />
and communities; the need to maintain and enhance the quality<br />
of the environment; and the reasonably foreseeable needs of<br />
future generations.<br />
These factors are relevant to most of our policies and activities,<br />
and where appropriate, we will explicitly address the ideal of<br />
sustainability in relation to these.<br />
They also tie in with some climate change issues that merit<br />
some discussion here. We are mindful of trends in these areas,<br />
and will aim for compliance with any central government<br />
initiatives, but the <strong>Hurunui</strong> <strong>District</strong> has long been subject to<br />
adverse weather events, and we do not see climate change as a<br />
matter of top priority.<br />
This <strong>Plan</strong><br />
Sustainability issues are discussed throughout the <strong>Council</strong><br />
Activities chapter of this plan where they are explicitly addressed<br />
as the “significant negative effects” and “sustainability”. In the<br />
Policies section of this plan, the topic of sustainability is raised in<br />
the Significance Policy, in which the current and future wellness<br />
of the community is taken into consideration in determining<br />
whether or not any issue is significant. It is also raised in the<br />
Revenue & Financing policy, in which the sustainability of the<br />
means of funding each <strong>Council</strong> service is considered.<br />
“Environmental Responsibility” is a key desire expressed<br />
through one of our community outcomes in this plan. This<br />
outcome is described as:<br />
A Place that Demonstrates Environmental Responsibility:<br />
• We protect our environment while preserving people’s<br />
property rights<br />
• We minimise solid waste to the fullest extent, and<br />
manage the rest in a sustainable way<br />
Other Initiatives<br />
We have a number of bylaws, strategies and other policies which<br />
consider sustainable environmental issues. These include our:<br />
• Biodiversity Strategy – this aims to ensure that the unique<br />
natural values of the district are maintained and enhanced<br />
by the council, landowners and other parties working<br />
together in partnership, voluntarily and cooperatively, in a<br />
non-regulatory framework<br />
43<br />
• <strong>Hurunui</strong> Waiau Zone Implementation Programme<br />
– the summary of this programme is included in the<br />
appendices of this <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong><br />
• Smoke Free Outdoors Strategy (which is under<br />
development) – this is to encourage smoke free<br />
outdoor areas in a non-regulatory manner<br />
• Pegasus Bay Bylaw – aims to control activities and the<br />
use of land, including camping, the use of horses and the<br />
use of vehicles, on the foreshore, beaches and adjacent<br />
areas of Northern Pegasus Bay to protect the important<br />
natural values of the coastline.<br />
• Freedom Camping Bylaw – encourages people to<br />
freedom camp in a responsible manner and in designated<br />
areas to protect the environment from harm<br />
• Earthquake Strengthening Policy – sets out criteria to<br />
make buildings more likely to withstand earthquakes.<br />
The Canterbury earthquakes in 2010/11 have focused<br />
our attention on the potential for earthquake prone<br />
buildings in the <strong>District</strong> and we are in the process of<br />
reviewing these now.<br />
Climate Change<br />
A “once in 50 year flood” on 30/31 July 2008 and a “once in 25<br />
year flood” on 26 August 2008 caused widespread damage to<br />
roads, fences, floodgates and tracks. This was compounded by<br />
the fact that the floods came not long after a major drought,<br />
due to which many farmers were already struggling financially.<br />
The Ministry for the Environment warns us to expect an<br />
increase in the frequency of such extreme weather events, and<br />
compounding factors such as rising sea levels, due to “climate<br />
change” brought about by “human activity increasing the natural<br />
level of greenhouse gases in the atmosphere”.<br />
This is a controversial topic, but whether or not the floods and<br />
drought were caused by climate change, and whether or not<br />
such climate change is primarily due to human influences (there<br />
is much debate about this, even amongst the “experts”), it is<br />
clear that we need to be prepared to respond to such events in<br />
order for farming and other key activities in the <strong>District</strong> to be<br />
economically and environmentally sustainable.<br />
Potential sea level rise is also an issue we have to grapple with in<br />
the <strong>District</strong> <strong>Plan</strong> review. Some of our small coastal settlements<br />
are likely to be inundated, but the time frame for when such sea<br />
level rises may impact is dependent on updated research and<br />
modelling.
www.hurunui.govt.nz<br />
Emissions Trading / Carbon Tax<br />
The Emissions Trading Scheme was a central government driven<br />
initiative aimed at moving New Zealand towards compliance<br />
with international protocols for offsetting the human influenced<br />
drivers of climate change. With the recent change of government<br />
there has been some discussion as to whether a “carbon tax”<br />
might be a more effective way of achieving this end.<br />
Either way, it is likely that in the near future some financial<br />
compensation will be required from industries that produce<br />
emissions. In the <strong>Hurunui</strong> <strong>District</strong>, forestry and farming stand<br />
to be most affected, but until the details of the Emissions Trading<br />
Scheme (or carbon tax) are finalised, it is difficult to say precisely<br />
what the impact upon these industries will be. Federated Farmers<br />
have staff dedicated to monitoring and producing responses to<br />
these issues, and should be able to provide reliable advice to<br />
farmers on these matters in the coming years.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Township Profiles<br />
46 <strong>Hurunui</strong> <strong>District</strong> Profile<br />
52 Amberley Ward Profile<br />
55 Amuri-<strong>Hurunui</strong> Ward Profile<br />
60 Cheviot Ward Profile<br />
62 Glenmark Ward Profile<br />
65 Hanmer Springs Ward Profile<br />
45
www.hurunui.govt.nz<br />
<strong>Hurunui</strong> <strong>District</strong> Profile<br />
Kaikoura<br />
<strong>District</strong><br />
46
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Location<br />
Land Use<br />
Area<br />
Coastline<br />
Climate<br />
Population<br />
The <strong>Hurunui</strong> <strong>District</strong> is in North<br />
Canterbury, on the East Coast of<br />
the South Island, New Zealand.<br />
Predominantly rural<br />
864,640 hectares (8,646,400,000 m²)<br />
106 Kilometres<br />
Ranging from unique coastal microclimates<br />
to alpine climates<br />
The estimated total population for<br />
the <strong>Hurunui</strong> <strong>District</strong> is 11,330*,<br />
distributed between the various<br />
wards.<br />
Labour Force<br />
Labour Force <strong>Hurunui</strong> <strong>District</strong> New Zealand<br />
Unemployment Rate 2.2% 5.1%<br />
Employment<br />
Participation<br />
Main Occupations /<br />
Industries<br />
Education<br />
Education<br />
15 years and over<br />
69% 63%<br />
Agriculture &<br />
Forestry<br />
<strong>Hurunui</strong> <strong>District</strong><br />
Service & Sales<br />
New Zealand<br />
School Qualification 35.6% 40%<br />
Tertiary Qualification 36.1% 39.9%<br />
*Note: The 2011 Census was called off following the 22<br />
February Christchurch earthquake. The estimated population<br />
is from Statistic New Zealand’s population projections which<br />
uses data from the 2006 NZ Census. The Government has<br />
announced that the next census will be held in March 2013.<br />
No Formal Qual. 28.3% 25%<br />
Unless otherwise specified, statistics quoted in this section are<br />
projections based from the NZ Census 2006. Figures have<br />
been randomly rounded by Statistics New Zealand in order to<br />
protect privacy, and thus may not add up to the totals given.<br />
Population by Ward / <strong>Community</strong> Rating Area<br />
47
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48
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Population<br />
The population of the <strong>Hurunui</strong> <strong>District</strong> is predicted to grow<br />
steadily over the next 20 years, although the population of some<br />
towns in the district is dropping. The greatest proportion of<br />
growth is occurring in the Amberley and Hanmer Springs wards.<br />
Census data reveals that the <strong>Hurunui</strong> <strong>District</strong> has an aging<br />
population, and shows a steeper rise than that predicted for<br />
the country as a whole in the proportion of people aged 65<br />
and over. Ethnic diversity is lower than that of New Zealand<br />
as a whole, but there has been a marked increase in overseas<br />
migrants, especially in the 30-50 year old age group (indicating<br />
that they have come to work in the <strong>District</strong>).<br />
Recreation, Visitor Attractions, Parks<br />
and Reserves<br />
The <strong>Hurunui</strong> is one of the few places in New Zealand’s South<br />
Island that in less than two hours traveling time, you can drive<br />
from the Lewis Pass (the northern most point of the Southern<br />
Alps) with its fresh mountain air, spectacular scenery and lush<br />
beech forests, to be sitting by the coast watching the waves<br />
from the Pacific Ocean crash onto the Beach. Activities<br />
include mountain walks, skiing, thermal bathing, river sports<br />
and recreation, surfing, fishing and spectacular walks amidst<br />
salt stone cliffs on our secluded beaches. The Waipara Valley is<br />
renowned for some of New Zealand’s award winning wines, and<br />
this area offers the opportunity to discover many fine vineyards.<br />
The <strong>Hurunui</strong> has over 270 hectares of passive and recreation<br />
reserves including the world famous Hanmer Springs Thermal<br />
Pools and Spa. A significant recent addition is the former Queen<br />
Mary Hospital grounds in Hanmer Springs. The main beaches<br />
are at Leithfield, Amberley, Motunau and Gore Bay. The main<br />
recreational lakes are Lake Sumner, Lake Taylor and Lake<br />
Tennyson.<br />
Main Industries<br />
The <strong>Hurunui</strong> is continuing to experience growth and<br />
diversification in terms of industry. Historically the district<br />
has been primarily agriculture based, and this still continues<br />
to be the single largest contributor to the <strong>Hurunui</strong> economy.<br />
However, recent times have seen an expansion in both viticulture<br />
and tourism. The growth of Hanmer Springs, the district icon,<br />
as a tourist destination and the establishment of associated<br />
infrastructure, is unprecedented in the tourism sector New<br />
Zealand wide. The majority of the district’s working population<br />
are employed in the “agriculture, forestry or fishing” industries<br />
(as defined by Statistics NZ). The second largest employment<br />
industry category is “accommodation, cafes and restaurants”,<br />
followed by “health and community services”.<br />
Agri/Viticulture<br />
According to the 2007 Statistics New Zealand Agricultural<br />
Production Census, the <strong>Hurunui</strong> <strong>District</strong> is home to 1,065 farms,<br />
462 of which are sheep farms (total of 1,612,116 sheep), and<br />
130 of which are beef cattle farms (with 119,141 cattle). 53,099<br />
dairy cattle and 34,042 deer were counted in the <strong>Hurunui</strong><br />
<strong>District</strong>. The major horticultural activities in the <strong>District</strong> are<br />
grape-growing (970 hectares), followed by olives (87 hectares)<br />
and hazelnuts (25 hectares). There is a small vegetable harvest<br />
in the <strong>Hurunui</strong> <strong>District</strong> (e.g. asparagus), and we produced 9,679<br />
tonnes of barley, 3,852 tonnes of wheat, and 556 tonnes of field/<br />
seed peas during the year ended 30 June 2007.<br />
Development and Growth<br />
The <strong>Hurunui</strong> <strong>District</strong> has a highly diversified economy based<br />
around agriculture, viticulture and tourism. Both domestic<br />
and international tourism have increased significantly over the<br />
past decade in recognition of the wide array of recreational<br />
opportunities within <strong>Hurunui</strong> from the coast to the mountains.<br />
The Hanmer Springs Thermal Pools & Spa, Mt Lyford Ski Field<br />
and Waipara wine producing area are recognised as anchor<br />
destinations that have been a catalyst for business investment in<br />
the <strong>District</strong>. Statistics New Zealand has estimated the <strong>Hurunui</strong><br />
population at 2026 to be 12,350 on a medium growth projection.<br />
However because of a large absentee population owning<br />
lifestyle and holiday homes, the <strong>Council</strong> is planning for growth<br />
demands based upon trends in subdivision developments, and,<br />
upon this basis, indications are that district wide growth will<br />
be slower than what is indicated by the Statistics New Zealand<br />
projections, but the Amberley and Hanmer Springs Wards are<br />
more likely to be at the medium or even high growth rates.<br />
Health<br />
Indicators of health in the <strong>District</strong> include the Ministry of<br />
Health’s “Deprivation Index”, which has been shown to correlate<br />
with various health statistics (e.g. rates of cervical cancer,<br />
mental health problems). This index assigns deprivation scores<br />
(1 least deprived, to 10 most deprived) to each meshblock in<br />
New Zealand. Meshblocks are geographical units defined by<br />
Statistics New Zealand (containing a median of approximately<br />
87 people in 2006). Scores are based on variables like income,<br />
home ownership, unemployment, qualifications, household<br />
crowding, transportation, and access to telecomunications.<br />
These scores are assigned as measures of relative (rather than<br />
absolute) deprivation. Thus, 10% of meshblocks in New Zealand<br />
as a whole will always score 10. Scores for the <strong>Hurunui</strong> <strong>District</strong><br />
indicate much lower than average deprivation, with more than<br />
75 % of meshblocks scoring in the top half (see graph on page 14).<br />
Lower than average levels of income and education in Amberley,<br />
and lower than average home ownership in Hanmer Springs<br />
(due to holiday and workers’ accommodation) contributed to<br />
higher than expected scores for these areas (both 7).<br />
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Rateable Value<br />
78% of our ratepayers pay their rates electronically, (eg: internet,<br />
direct debit, automatic payment etc). the remaining 22% pay by<br />
cheque or cash.<br />
Rates are levied on rateable properties based on their rateable<br />
value. The definition of land is very broad and may include the<br />
right to pass utilities over land, e.g., power lines and water<br />
pipes. Almost all lands are rateable. Exceptions apply to certain<br />
Crown land and land mainly used for educational and charitable<br />
purposes. As at June <strong>2012</strong>, the total rateable value of property<br />
in <strong>Hurunui</strong> is $4,680,288,642.<br />
Property Values by Ward<br />
Name<br />
<strong>District</strong><br />
Capital Value<br />
No of Rateable<br />
Properties<br />
Amberley 945,624,200 2,180<br />
Amuri 1,142,832,950 1,206<br />
Cheviot 622,508,900 956<br />
Glenmark 576,633,550 767<br />
Hanmer Springs 689,567,550 1,673<br />
<strong>Hurunui</strong> 524,777,000 801<br />
Utilities 132,005,000 0<br />
Value as at 1 July 2011 4,633,949,150 7,583<br />
Growth Factor (1%) 46,339,492 76<br />
Total Rating Value Assumed 4,680,288,642 7,659<br />
*Note: The <strong>Council</strong> rates an additional 1,500 properties in the Waimakariri <strong>District</strong>, which<br />
are on our Ashley Water Scheme.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Services and Amenities<br />
Major services and amenities in the district are available in the<br />
following locations.<br />
Kaikoura<br />
<strong>District</strong><br />
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Amberley Ward Profile<br />
• Amberley is about a 35 minute drive from Christchurch,<br />
Background and History<br />
Named after Amberley in Derbyshire, Amberley was originally<br />
established as a result of the arrival of the railway in 1876. The<br />
township continued to grow and became an important farming<br />
service centre. Amberley has grown significantly since the<br />
1950s and was the first township in the <strong>Hurunui</strong> <strong>District</strong> with<br />
a water supply scheme undertaken by a county council (1957).<br />
Amberley’s southern neighbour, Leithfield, is one of the oldest<br />
townships in Canterbury; Leithfield was founded in 1857 by<br />
John Leith as an important coach stop and to provide services<br />
to the surrounding farming and milling area. In 1863 Leithfield<br />
boasted one of the first flour mills in North Canterbury and<br />
the only one to be powered by wind. The village flourished in<br />
the 1870s when it was then only business centre at the time,<br />
between Kaiapoi and Kaikoura.<br />
The beach settlements of Amberley Beach and Leithfield Beach<br />
developed as residential suburbs between 1950 and 1990, and<br />
their current populations have grown dramatically.<br />
Recreation / Visitor Attractions<br />
Amberley is the largest township in the ward, located on State<br />
Highway 1, it is a busy rural service centre with an impressive<br />
range of cafes and shops as well as the vibrant district library.<br />
The ward is ideally placed as a country retreat, it is renowned<br />
for its impressive country gardens and offers a variety of<br />
accommodation options for visitors. There are very handy rivers,<br />
lakes and mountains to explore, and lots of walks including beach<br />
tracks, the Mt Grey scenic walkways and the Kowai Walkway - a<br />
well maintained track from the historic Old Leithfield Hotel to<br />
the coastal settlement of Leithfield Beach.<br />
Several parks and reserves can be found in the townships, and<br />
the local Amberley Domain and Pavilion is always popular for<br />
sport and recreation events, agricultural shows, and leisure<br />
activities.<br />
Present Profile<br />
• The population of the Amberley Ward is estimated<br />
at 4,050.<br />
• The Amberley Ward is the largest community in the<br />
<strong>Hurunui</strong> <strong>District</strong>. The ward makes up over one third<br />
of the total district population, with a steady growth in<br />
residents.<br />
• 2006 NZ Census data shows Amberley’s population<br />
profile as somewhat older that the <strong>Hurunui</strong> average.<br />
29% of Amberley’s residents are aged 65 years and over,<br />
compared to 25% for the <strong>Hurunui</strong> <strong>District</strong>, 24% for<br />
the Canterbury Region, and 21% for New Zealand as<br />
a whole.<br />
52<br />
and Leithfield is even closer. The townships’ close<br />
proximity presents an advantage for residential growth,<br />
offering commuters a country lifestyle while still being<br />
able to work in the city.<br />
• State Highway 1 runs through the centre of the<br />
Amberley Township. While this visibility and accessibility<br />
is a great strength for development and growth, it<br />
simultaneously creates challenges for road safety, noise<br />
and heavy transport effects.<br />
• Both the Amberley Township and Leithfield Village have<br />
experienced notable urban expansion and development<br />
in recent years, including increased lifestyle block<br />
development. This growth did slow during the<br />
economic crisis, but it has now taken off again post the<br />
Christchurch earthquakes, with many viewing the area<br />
as ‘less shaky’ and offering a desirable lifestyle.<br />
• The Amberley Ward also experienced substantial<br />
growth and development in the Glasnevin area, including<br />
large scale viticulture plantings, and subdivision activity.<br />
This rate of growth also eased during the economic<br />
downturn but is also taking off again.<br />
• A concept plan was developed by and for the Amberley<br />
community, and includes far reaching planning on many<br />
fronts, including urban and commercial zoning, social<br />
and recreation activities, streetscaping and branding.<br />
The Amberley Township <strong>Plan</strong> was finalised in 2008 and<br />
many of the high priority projects contained have now<br />
been completed.<br />
• The Amberley Ward offers a wide range of services and<br />
facilities.<br />
In addition to the numerous shops and commercial premises,<br />
the ward is fortunate to have three primary schools, two<br />
preschools, two Playcentres, a medical centre, a public swimming<br />
pool, a community hall and two libraries (The <strong>Hurunui</strong> Memorial<br />
Library in Amberley and a community library in Leithfield). The<br />
ward has many amenities including a cemetery and several<br />
blocks of public toilets. The Amberley Township is home to the<br />
ward’s volunteer fire and ambulance services and two full-time<br />
police officers. The <strong>Council</strong>’s main office, including the <strong>Council</strong><br />
Chambers, is located in Amberley.<br />
Ward Governance<br />
<strong>District</strong> <strong>Council</strong>lors are responsible for representing the<br />
interests of their ward, setting <strong>Council</strong> policies and monitoring<br />
the <strong>Council</strong>’s performance. They are elected every three years<br />
by the voters of their ward.<br />
The Amberley Ward is currently represented by three<br />
councillors: as at <strong>2012</strong>, they are Gary Cooper, Ross Little and<br />
Judith McKendry.
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
In addition, the Amberley Ward also has an elected Ward<br />
Committee which includes amongst its varied responsibilities<br />
the overseeing of the ward’s water and sewerage schemes, and<br />
the Amberley Recreation Reserve Subcommittee. The Amberley<br />
Ward also has the Amberley <strong>District</strong> Residents’ Association,<br />
the Leithfield and Leithfield Beach Residents’ Groups and the<br />
Amberley Beach Residents’ Association.<br />
Key <strong>Long</strong> <strong>Term</strong> Opportunities and<br />
Challenges<br />
• The worldwide economic downturn had a temporary<br />
negative effect on growth and development in the<br />
Amberley Ward. However, this is expected to reversed<br />
as people need or want to leave earthquake affected<br />
areas in Christchurch and Kaiapoi may consider buying<br />
houses and sections in the ward. Amberley Township is<br />
also popular to an increasing number of retirees.<br />
• State Highway 1 remains a major economic strength<br />
and improvements have lessened the pedestrian<br />
safety challenges for the community. The outcome of<br />
the proposed <strong>District</strong> <strong>Plan</strong> change will likely have an<br />
influence on development in upcoming years.<br />
• The number one Amberley Concept <strong>Plan</strong> (ACP)<br />
priority project that was identified was in regards to<br />
residential and commercial zoning. After a lengthy<br />
consultation process, the <strong>District</strong> <strong>Plan</strong> Changes became<br />
operative in 2009.<br />
• New <strong>District</strong> <strong>Plan</strong> provisions for independent senior<br />
living units (ISLUs) and minor dwelling units (MDUs)<br />
were made operative late last year. This enables another<br />
type of residential development that will cater for the<br />
needs of the “earthquake refugees” as well as the needs<br />
of the aging population.<br />
• The ACP identified the current centre of town location<br />
for the Amberley Transfer Station to be inappropriate,<br />
and new potential sites have since been investigated. A<br />
site in Greys Road has been identified as the preferred<br />
location and this will now be consulted on.<br />
• The need to upgrade the Amberley Swimming Pool was<br />
also highlighted during the concept planning process,<br />
and subsequent investigations have found that the pool<br />
has a limited life expectancy and that we should not rely<br />
on it after 2018. The Amberley Ward Committee, via a<br />
working group, has been further investigating options<br />
for the future including whether the current pool can<br />
be upgraded or whether a new pool should be built.<br />
Extensive consultation will be carried out prior to any<br />
final decisions being made.<br />
• A huge land bank now exists in Amberley resulting<br />
from recent plan changes which rezoned rural land to<br />
residential use.<br />
• The resource consent for the long awaited supermarket<br />
and shopping complex for Amberley was signed off in<br />
2010. Although a commitment has not yet been made<br />
by one of the major supermarket chains, this is still<br />
being pursued by the developer who remains optimistic<br />
that a deal will be completed in the near future.<br />
• The <strong>Council</strong> has adopted a Walking and Cycling<br />
Strategy, which aims to facilitate the desires made by<br />
some members of the <strong>Community</strong> to improve the<br />
Walking and Cycling linkages within the <strong>Hurunui</strong> <strong>District</strong>.<br />
Of particular importance for the Amberley Ward are<br />
the proposed commuter routes from Amberley to<br />
Amberley Beach, Amberley to Waipara, and Amberley<br />
to Leithfield.<br />
• The Amberley Ward beaches from Ashworths to “the<br />
Rocks” are included in the Northern Pegasus Bay<br />
Coastal Management <strong>Plan</strong>. This <strong>Plan</strong> contains a number<br />
of recommendations, including a requirement that all<br />
vehicles on Northern Pegasus Bay must obtain a permit<br />
and obey all conditions of the permit including, a speed<br />
limit for vehicles of 10km/h around people and 30km/h<br />
on the open beach, in addition any vehicle on the beach<br />
must be operated below the high tide mark.<br />
• The Amberley Ward’s population growth since 2008 has<br />
been slow. However, previous growth, and anticipated<br />
moderate future growth, particularly in the townships,<br />
will ultimately create a need for expanded community<br />
facilities. Further expansion and development of the<br />
Amberley Domain may become necessary. New<br />
subdivisions need to include the provision of parks,<br />
reserves and walkways. Another long term challenge<br />
to meeting population growth and developers’ and<br />
residents’ expectations for the Amberley Ward will be<br />
the possible demands to seal existing gravel roads.<br />
• The presence of State Highway 1 will continue to<br />
stimulate associated growth and development, whilst at<br />
the same time placing responsibility on the council, the<br />
community and the New Zealand Transport Agency to<br />
manage the associated effects of such traffic.<br />
• Amberley Ward’s locality acts as a valuable “gateway”<br />
to the <strong>Hurunui</strong> <strong>District</strong>, offering opportunities for<br />
further growth and profitable gains to the local tourism<br />
industry.<br />
• Impacts from the Pegasus Town development have<br />
not yet become apparent. As the town grows, a<br />
foreseeable possible adverse impact on the Amberley<br />
Ward is the additional traffic volumes creating longer<br />
commuting times between Woodend and Christchurch.<br />
Possible positive impacts include more employment<br />
opportunities and Amberley Ward could be a satellite<br />
base for staff for the new township. The proposed new<br />
High School would be the closest one to the Amberley<br />
Ward.<br />
• The Amberley Ward has nearly one third of its<br />
population aged 65 years and over (Stats NZ Census<br />
2006). The requirements of this demographic has<br />
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different demands than the rest of the district, such as<br />
a higher need for pensioner housing and rest homes,<br />
increased medical centre usage, a preference for passive<br />
recreation facilities etc.<br />
Key Projects<br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15 2015-<strong>2022</strong><br />
Water pipe renewal $448,773<br />
Water reticulation $260,933 $239,763<br />
Water connections $10,392 $10,738 $11,107<br />
SH1 bore commissioning $25,000<br />
Water rising main upgrade $236,500<br />
Sewerage pipe upgrade $474,000 $243,678<br />
Waste water plant renewals $12,240 $10,780 $78,256 $41,293<br />
Stormwater/drainage detention ponds $100,000<br />
Stormwater/drainage upgrading $194,000<br />
Amberley Township roadside construction $23,000 $23,902 $24,697 $201,646<br />
Leithfield Township roadside construction $10,000 $11,945<br />
Leithfield Beach Township roadside construction $5,196 $6,215<br />
Leithfield Beach <strong>Community</strong> Centre heat pump $4,000<br />
Amberley Township – Railway Tce landscaping/fencing $15,000<br />
Walking and cycling routes $250,391<br />
Amberley domain – playground improvements $4,000<br />
Amberley domain – relocate cricket nets $6,000<br />
Amberley neighbourhood reserves $264,752<br />
Amberley reserves – passive links $10,000 $10,392 $10,738 $87,672<br />
Amberley Beach reserve – tennis courts $24,858<br />
Leithfield Beach reserve – tennis courts $72,744<br />
Amberley Ward - Sample Properties<br />
Water<br />
# of Actual Proposed Increase / Decrease<br />
Capital<br />
Property<br />
Fixed Rates Rated<br />
Value Supply Units $ %<br />
Charges 2011/<strong>2012</strong> <strong>2012</strong>/13<br />
Amberley Township 255,000 Amberley 209 1 $1,464.46 $1,549.20 $84.74 5.79%<br />
Amberley Township 520,000 Amberley 238 1 $1,805.80 $1,909.12 $103.33 5.72%<br />
Amberley Beach<br />
Township<br />
175,000 Ashley Rural 0.5 1 $1,575.36 $1,647.24 $71.88 4.56%<br />
Amberley Rural 2,400,000 Ashley Rural 1 0 $3,146.30 $3,306.33 $160.03 5.09%<br />
Leithfield Township 205,000 Ashley Rural 0.5 1 $1,338.13 $1,412.35 $74.23 5.55%<br />
Leithfield Beach<br />
Township<br />
180,000 Leithfield<br />
Beach<br />
1 1 $1,219.49 $1,297.30 $77.80 6.38%<br />
54
Amuri-<strong>Hurunui</strong> Ward Profile<br />
Background and History<br />
New Beginnings<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Amuri<br />
The township of Waiau was the first of the three main<br />
settlements established in the area previously known as the<br />
Amuri Ward. It originated in the 1860s, and due to the ferry, the<br />
bridging of Waiau River, the opening of the road to Kaikoura and<br />
the completion of the railway line, soon became an important<br />
farm servicing and transport centre.<br />
The development of Rotherham as a township followed in 1877,<br />
as it was laid out in order to attract labourers to the district.<br />
Culverden was the last to be established and only so due to the<br />
arrival of the railway in 1886, consequently becoming the rail<br />
and coach, as well as the farming centre for Amuri.<br />
Over the years, the Amuri has been an area of traditional large<br />
scale farming, characterised in many cases by continuous family<br />
ownership across several generations. A secondary school<br />
department was established in Culverden in 1960, making it the<br />
third high school in the district, changing its status to an area<br />
school in 1977. The first ‘Amuri <strong>Community</strong> Health Centre’<br />
opened in Rotherham in 1982.<br />
The impact of the arrival of the dairy industry in the 1980’s<br />
has been substantial and provided enormous opportunities. The<br />
future of the industry will be heavily influenced by the potential<br />
to store water.<br />
<strong>Hurunui</strong><br />
Historically, the Waikari Township was a very busy little<br />
community with the flour mill, lime-works siding adjacent to the<br />
north bound railway line providing a lot of employment locally.<br />
It also accomodated the <strong>Hurunui</strong> County offices, an extensive<br />
council works yard. Waikari school established 1882.<br />
The nearby township of Hawarden began with a Roads’ Board<br />
cottage and a store on a route taken by thousands of gold<br />
seekers who made their way over the old Weka Pass Road in<br />
the 1860s. Later Hawarden became the service centre for a<br />
large farming area and included several businesses, a post office,<br />
a community hall and a church. Hawarden Consolidated School<br />
was a feeder from <strong>Hurunui</strong>, Medbury, Mason’s Flat and The<br />
Peaks – becoming Hawarden <strong>District</strong> High school in 1927, it<br />
was the first high school of the <strong>Hurunui</strong> <strong>District</strong>, and is now<br />
known as <strong>Hurunui</strong> College.<br />
Water supplies and sewerage works for the two townships<br />
were completed in 1966. A medical centre was first opened in<br />
Waikari in 1971. Both communities had Post Offices.<br />
Following a legislatively mandated Representation Review in<br />
2007, the Local Government Commission determined that<br />
the pre-existing individual Amuri and <strong>Hurunui</strong> Wards become<br />
amalgamated to form a new combined ward area: the Amuri-<br />
<strong>Hurunui</strong> Ward. In their determination, the Commissioners wrote<br />
that they felt there were “sufficient commonalities of interest to<br />
enable effective representation within this new combined ward<br />
area” and cited that both the <strong>Hurunui</strong> and Amuri Wards are<br />
located within the same valley and are both primarily agriculture<br />
areas with collections of small, discreet settlement areas that<br />
supported the surrounding rural hinterland. However the<br />
Commissioners also noted that the <strong>Hurunui</strong> and Amuri ward<br />
and community committees had “strong community governance<br />
arrangements” and recommended retaining these as part of the<br />
new structure.<br />
Recreation / Visitor Attractions<br />
The townships of Amuri-<strong>Hurunui</strong> epitomise small New Zealand<br />
rural towns. They are great places to relax and enjoy the local<br />
scenery and attractions.<br />
The natural outdoors paradise at the southern area of the ward<br />
features some of New Zealand’s most spectacular mountain<br />
ranges, hillside, lakes and the headwaters of the <strong>Hurunui</strong> River,<br />
as well as offering many accommodation options for visitors.<br />
Waikari is the final stop for the popular Weka Pass vintage<br />
steam railway, and the area is a photographers’ dream –<br />
resplendent with remarkable limestone rock outcrops and some<br />
breathtakingly beautiful sunsets over the ranges and hinterland.<br />
The stunning vistas can readily be taken in from the Weka<br />
Pass Walkway, and you can also climb up a local hill to view<br />
ancient Mäori rock drawings in the Weka Pass Reserve. Since<br />
1868 the historic <strong>Hurunui</strong> Hotel has provided weary drovers<br />
moving sheep from Nelson to Christchurch for stock sales with<br />
a place to rest and pick up their mail and catch up on news. As<br />
the gateway to Canterbury all the sheep entering the district<br />
were once dipped here before moving on to avoid the spread<br />
of any diseases from one region to another. The Hotel remains<br />
a classic landmark in North Canterbury and is still a great place<br />
to stop for refreshments.<br />
Just a few kilometres to the west, Hawarden is home to the<br />
well-known Flaxmere Gardens - which are Gardens of National<br />
Significance, and is the gateway to the secluded wilderness and<br />
pristine Lake Sumner Forest Park area offering excellent fishing<br />
and hunting grounds.<br />
Events of interest in the <strong>Hurunui</strong> area include the Hawarden<br />
A&P Show, Waikari annual ANZAC day fun run, ART in the<br />
Garden, and the biennial <strong>Hurunui</strong> Race and Gala Day.<br />
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Towards the northern reaches of the ward, the delightful<br />
Culverden township offers a choice of farmstays, bed and<br />
breakfasts and gardens to enjoy, making it a great place for<br />
visitors to stay who are seeking a rural New Zealand experience.<br />
The Culverden Golf Course is an enjoyable 9-hole course with<br />
an attractive mountain backdrop. October each year is time for<br />
the famous Christmas Country Fete showcasing arts, crafts,<br />
food and wine in a garden party atmosphere.<br />
Just a short drive inland, Waiau offers some of the best access to<br />
the Waiau River, brimming with trout for the skillful angler and<br />
where the salmon run during February and March. Amuri Golf<br />
Club also has a 9-hole golf course. 26km north of Waiau, the<br />
small, privately-owned alpine resort of Mt Lyford was developed<br />
in 1986, and includes a commercial ski field and offers various<br />
facilities and services, including ski and snowboard hire,<br />
accommodation and a café, horse trekking and a riding school.<br />
Current Profile<br />
The population of The Amuri-<strong>Hurunui</strong> Ward is estimated at<br />
3,730.<br />
• The Amuri-<strong>Hurunui</strong> Ward makes up approximately 30%<br />
of <strong>Hurunui</strong> <strong>District</strong>’s population as a whole.The ward<br />
experienced modest growth in the five years from<br />
2001-2006 and Statistics New Zealand had predicted<br />
no further increase for 2011, however growth in the<br />
dairy industry is likely to have seen modest increases<br />
in population numbers – particularly in the numbers of<br />
migrant workers and their families.<br />
• The Amuri-<strong>Hurunui</strong> Ward is centrally located in the<br />
<strong>District</strong> and acts as an essential access way to the<br />
Hanmer Springs Alpine Village when travelling to and<br />
from Amberley / Waipara, or to and from Kaikoura.<br />
• The Amuri-<strong>Hurunui</strong> Ward is dominated by traditional<br />
farming, and developments in recent years include an<br />
extensive number of conversions, from traditional<br />
sheep farming to intensive irrigated dairy farming.<br />
• The Amuri-<strong>Hurunui</strong> Ward is home to Amuri Area<br />
School in Culverden and <strong>Hurunui</strong> College in<br />
Hawarden. The <strong>Hurunui</strong> Academy based in Culverden<br />
offers NZQA approved courses in outdoor education,<br />
rural skills, tourism and hospitality, and carpentry for<br />
youth and adult students. There are three primary<br />
schools, located in Waikari, Waiau and Rotherham. Preschool<br />
options include a pre-school in Culverden and<br />
Playcentres at Hawarden Culverden and Waiau. The<br />
Amuri Area School is also houses the <strong>Council</strong>’s Service<br />
Centre/Library. <strong>Hurunui</strong> College also houses the<br />
<strong>Council</strong>’s public library. A community library is based<br />
in Waiau.<br />
• The Amuri-<strong>Hurunui</strong> Ward is fortunate to have two<br />
medical centres and a hospital:<br />
• Waikari is home to the Waikari clinic (a subsidiary of<br />
Amberley Medical centre), which meets most medical<br />
needs of residents’ in the southern end of the ward.<br />
This was a purposed-designed building built in 2001 and<br />
is funded from a targeted amenity rate from what was<br />
the previous <strong>Hurunui</strong> Ward boundary area.<br />
• The new, purposed-designed, Amuri <strong>Community</strong> Health<br />
Centre in Rotherham provides for the majority of the<br />
residents’ medical needs in the northern end of the<br />
ward. The Amuri Health Centre building is funded by a<br />
targeted amenity rate on what was the previous Amuri<br />
Ward boundary area. The General Practice is owned<br />
by the Amuri <strong>Community</strong> Trust and operated by Amuri<br />
Health Care Ltd.<br />
• Waikari Hospital is set in beautiful grounds overlooking<br />
the Alps, it provides services to the local community as<br />
well as rest of the district. Services include Maternity,<br />
Continuing Care of the Elderly, General Medical, Surgical<br />
Rehabilitation, Carer Support, Respite Care, Meals on<br />
Wheels, Day Care and equipment Hire<br />
• The Amuri-<strong>Hurunui</strong> ward is fortunate to have a St John<br />
Ambulance Station based in Culverden, as well as the<br />
Hawarden–Waikari and Amuri–Waiau Volunteer Rural<br />
Fire Forces, and New Zealand Fire Service Volunteer<br />
Fire Brigades in Waikari, Culverden, Waiau and<br />
Hawarden. There is one full-time police officer working<br />
from Waikari, and two based in Culverden.<br />
Ward Governance<br />
<strong>District</strong> <strong>Council</strong>lors are responsible for representing the<br />
interests of their ward, setting <strong>Council</strong> policies and monitoring<br />
the <strong>Council</strong>’s performance. They are elected every 3 years by<br />
the voters of their ward.<br />
The Amuri-<strong>Hurunui</strong> Ward is currently represented by three<br />
councillors: as at <strong>2012</strong>, they are Marie Black, Richard Davison<br />
and Jim Harre. Mayor Winton Dalley is also from this ward but<br />
was elected ‘at large’ to represent the interests of the entire<br />
district.<br />
<strong>Council</strong> committees in the Amuri area are the Amuri <strong>Community</strong><br />
Committee, the Amuri Plains Rural Water Committee, the<br />
Balmoral Water Committee, the Waiau Rural Water Committee,<br />
the Waiau Township Water Committee, Culverden Township<br />
Water Committee and the Waiau Reserve Committee.<br />
<strong>Council</strong> committees in the <strong>Hurunui</strong> area are the <strong>Hurunui</strong><br />
<strong>Community</strong> Committee, the <strong>Hurunui</strong> Recreation (Racecourse)<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Key <strong>Long</strong> <strong>Term</strong> Opportunities and<br />
Challenges<br />
Reserve Committee, the Waikari Reserve and Hall Committee,<br />
and the Hawarden Recreation Reserve and Hall Committee.<br />
Water<br />
Water issues, in terms of both opportunities and challenges, are<br />
so important to the entire ward that a separate section has<br />
been included here to showcase this.<br />
• A key issue in the ward over the past 50 years and<br />
probably the next 50 is the use of water from the two<br />
main rivers, the Waiau and <strong>Hurunui</strong> for irrigation. The<br />
consequential changes to the physical environment,<br />
economic activity and most importantly to the social<br />
structure of the district is a work in progress.<br />
• The impact of the arrival of the dairy industry in the<br />
1980’s has been substantial and provided enormous<br />
opportunities. The future will be heavily influenced by<br />
the potential to store water and to utilise currently<br />
underperforming land.<br />
• It is generally accepted that the real opportunities for<br />
the ward remain with land based industries - both<br />
agriculture and recreation based. To continue to grow<br />
and develop these, the focus is on the rivers, lakes and<br />
hills.<br />
The <strong>Hurunui</strong>-Waiau Zone Committee<br />
The <strong>Hurunui</strong>-Waiau Zone Committee was the first of the 10<br />
zone committees established throughout Canterbury. In August<br />
2011, its Zone Implementation Programme (ZIP) was received<br />
by Environment Canterbury and the <strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong>.<br />
This is designed to provide an integrated approach to water<br />
management in the zone while achieving the desired social,<br />
environment, cultural and economic outcomes. The committee<br />
has also agreed on its Immediate Steps Biodiversity Fund projects<br />
and work has already started on some. Projects include wetland<br />
protection, weed control in Conway River and protection and<br />
enhancement or riparain areas.<br />
<strong>Hurunui</strong> Water Project<br />
The <strong>Hurunui</strong> Water Project Ltd (HWP) proposes to develop<br />
a community irrigation scheme which includes water storage<br />
dams and hydro power generation. The resource consents<br />
sought have been delayed by the <strong>Hurunui</strong> Waiau catchment<br />
moratorium. While the moratorium was lifted on 2nd October<br />
2011 applications cannot be processed until 2 April <strong>2012</strong>.<br />
HWP’s applications will subsequently be held until 2 April <strong>2012</strong>,<br />
at which stage processing will begin.<br />
<strong>Hurunui</strong> Water Project – Waitohi Proposal<br />
This proposes to develop a series of four water storage dams<br />
on the Waitohi River to irrigate 58,500 ha of land in the <strong>Hurunui</strong>,<br />
Waipara and Kowai catchments. The dams are proposed to be<br />
located at Hurricane Gully; Seven Hills; Inches Road and in the<br />
Lower Gorge.<br />
Run-of-river water would be taken directly from the <strong>Hurunui</strong><br />
River as the predominant supply of water when it is available.<br />
When this water is not available, they intend water stored in the<br />
Waitohi River catchment to be released from the dams to meet<br />
the irrigation demand and provide hydro-electricity generation<br />
capability. Water stored within the dams will be sourced from<br />
both the <strong>Hurunui</strong> and the Waitohi Rivers.<br />
<strong>Hurunui</strong> Water Project<br />
South Branch <strong>Hurunui</strong> River and Lake Sumner Proposal<br />
This proposal involves the abstraction of water from the <strong>Hurunui</strong><br />
River, via either an intake near the confluence of the Mandamus<br />
River or an intake 1-2 kilometres upstream from the Dampier<br />
Stream confluence to irrigate approximately 42,000 hectares<br />
of land in the <strong>Hurunui</strong> and Upper Waipara catchments. Two<br />
storage structures are proposed; a dam on the South Branch of<br />
the <strong>Hurunui</strong> River and a weir structure on the main stem of the<br />
<strong>Hurunui</strong> River, just downstream of the outlet from Lake Sumner.<br />
The proposed hydro power generation will be either on the<br />
scheme distribution canal, or located at the proposed dam on<br />
the South Branch of the <strong>Hurunui</strong> River, or both.<br />
Other Key <strong>Long</strong> <strong>Term</strong> Opportunities<br />
and Challenges<br />
• A long term challenge for the Amuri Ward will continue<br />
to be overcoming the shortage of farm labour.<br />
• A recent upsurge in migrant workers has given the<br />
skill shortage a boost but has provided a new set of<br />
challenges.<br />
• It continues to be a challenge for new small businesses<br />
to find premises. Correctly zoned areas are required to<br />
meet the needs of today and the future.<br />
• Another challenge, shared by many small rural towns<br />
in New Zealand, is the viability and thus the retention<br />
of local services and businesses. Economies of scale,<br />
potential efficiencies of centralisation and greater use<br />
of technology all impact on the sustainability of small<br />
businesses and government agencies alike.<br />
• Increased fuel prices in recent years and the recent<br />
economic down turn may have a challenging impact on<br />
the ward’s economic wellbeing.<br />
• Key long term opportunities include ongoing prospects<br />
for tourist related activities and general promotion of<br />
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businesses in the Ward.<br />
• There are potential opportunities for the wider<br />
Culverden area to become an attractive option as a<br />
residential location for employees working in Hanmer<br />
Springs.<br />
• There are potential opportunities for the wider Waikari<br />
area to be attractive option as a residential location for<br />
employees working in the vineyards in Waipara.<br />
• Continuing development of Mt Lyford as a boutique<br />
resort and ski area may benefit the ward’s long term<br />
opportunities economic development and growth.<br />
• <strong>Council</strong> has adopted a Walking and Cycling Strategy,<br />
which aims to facilitate the desires made by some<br />
members of the community to improve the walking<br />
and cycling linkages within the <strong>Hurunui</strong> <strong>District</strong>. Of<br />
particular importance for the Amuri-<strong>Hurunui</strong> ward is<br />
the completion of the commuter link between Waikari<br />
and Hawarden.<br />
Key <strong>Plan</strong>ning Assumptions<br />
The recent worldwide economic downturn had a negative effect<br />
on development, however, the significant growth in the dairy<br />
industry may have shielded the area and it is anticipated that the<br />
Amuri-<strong>Hurunui</strong> Ward has the potential for modest to substantial<br />
growth. It is also expected that the ward is able to capitalise on<br />
the benefits of tourist traffic and there is considerable potential<br />
in the relatively ‘undiscovered’ lakes area.<br />
Key Projects<br />
Year <strong>Plan</strong>ned<br />
Amuri <strong>2012</strong>/13 2013/14 2014/15 2015-<strong>2022</strong><br />
Culverden Township Roadside Construction $12,000 $12,470 $12,886 $105,206<br />
Rotherham Township Roadside Construction $4,000 $4,157 $4,295 $35,070<br />
Waiau Township Roadside Construction $6,000 $6,235 $6,443 $52,602<br />
Rotherham Hall (capital expenditure) $5,000 $2,078 $2,148 $17,534<br />
Waiau Hall – heat pump upgrade $10,738<br />
Waiau Hall – Kitchen upgrade $6,000<br />
Rotherham Pool (capital expenditure) $2,000 $2,078 $2,148 $17,525<br />
Culverden Township projects $17,000 $5,196 $5,369 $36,144<br />
Rotherham Township projects $1,500 $1,559 41,611 $13,151<br />
Waiau Township projects $2,000 $2,078 $2,148 $17,525<br />
Culverden Reserves – walking track projects $5,000 $5,196 $5,369 $43,839<br />
Rotherham Reserve (capital expenditure) $2,500 $2,598 $2,685 $21,919<br />
Mt Lyford Reserve – BBQs $1,000 $1,039 $1.074 $8,768<br />
<strong>Hurunui</strong> <strong>2012</strong>/13 2013/14 2014/15 2015/<strong>2022</strong><br />
Hawarden-Waikari water reticulation $45,637 $50,710<br />
Hawarden sewerage - desludging $103,563<br />
Hawarden sewerage - pump $4,939<br />
Hawarden sewerage – plant renewals $37,973<br />
Waikari sewerage - desludging $70,000<br />
Hawarden Township footpath construction $16,627 $80,295<br />
Waikari Township footpath construction $16,000 $17,181 $59,979<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Amuri-<strong>Hurunui</strong> Ward - Sample Properties<br />
Property<br />
Capital<br />
Value<br />
Supply<br />
Water<br />
Units<br />
No of<br />
Fixed<br />
Charges<br />
Actual<br />
Rates<br />
2011/<strong>2012</strong><br />
Proposed<br />
Rates<br />
<strong>2012</strong>/2013<br />
Increase/(Decrease)<br />
$ %<br />
Waiau Township 200,000 Waiau Town 147 1 $1,275.40 $1,321.31 $36.92 2.89%<br />
Rotherham Township 270,000 No water n/a 1 $1,125.37 $1,155.69 $30.33 2.69%<br />
Culverden Township 215,000 Culverden 322 1 $1,415.94 $1,459.27 $43.33 3.06%<br />
Amuri Rural 2,215,000 Waiau Rural 8 1 $8,083.30 $8,433.62 $350.31 4.33%<br />
Amuri Rural 7,725,000 Amuri Plains 7 4 $11,222.30 $11,782.84 $560.55 4.99%<br />
Hawarden Township 138,000 Hawarden-Waikari 292 1 $1,362.90 $1,405.65 $42.75 3.14%<br />
Waikari Township 175,000 Hawarden-Waikari 694 1 $1,718.89 $1,779.97 $61.08 3.55%<br />
<strong>Hurunui</strong> Rural 3,435,000 <strong>Hurunui</strong> Rural 2 1 $5,339.19 $5,774.60 $435.41 8.15%<br />
Chip Sealing, Princes Street, Waikari<br />
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Cheviot Ward Profile<br />
Background and History<br />
Cheviot is well-known for its rural history, and from the<br />
1950s, the township of Cheviot was a relatively settled, stable<br />
community that was largely self-contained with various trades<br />
and businesses.<br />
Cheviot ward’s other settlements include Parnassus which<br />
originally had a railway station, a sole-charge school and some<br />
businesses. The famous Waiau River road/rail bridge was here,<br />
before being abandoned and replaced with a new road bridge.<br />
Prior to the opening of the old bridge in the 1930s a ferry<br />
across the river carried goods north and south. In the 1950’s the<br />
settlement of Spotswood had a hall (which is still used regularly<br />
today) and a public library. Gore Bay was a largely picnicking and<br />
holiday venue with some permanent residents, and Conway Flat<br />
had its own school. Domett, originally a railway town, is now<br />
only populated by farms, and the old Domett Railway Station<br />
has now been relocated to the main road as a cafe.<br />
The Cheviot Rural Water Supply was put in place in 1971,<br />
with further extensions in 1980. Cheviot <strong>District</strong> High School<br />
transformed to an area school in 1976, and in 1978, the<br />
township’s old hospital was converted to a medical centre.<br />
Recreation / Visitor Attractions<br />
The Cheviot area offers a variety of quality accommodation,<br />
from hotels and motels to farm stays and home stays that<br />
provide a traditional slice of kiwi life. In the township there are<br />
several cafes, a museum and a golf course.<br />
The Cheviot Hills Domain and Mansion Foundation was the<br />
original site of the historical home of the founder of Cheviot,<br />
William “Ready Money” Robinson. The front steps of the<br />
mansion are still in place, and lead into the cricket pavilion. The<br />
domain has a charming walkway and superb picnic spots. St<br />
Anne’s Lagoon, about 2 km north of Cheviot, is a popular nature<br />
reserve that used to provide Mäori settlements around the area<br />
with eel. The Sunday Craft Market is a great place to stop, with<br />
a great range of handmade crafts of very high quality available.<br />
The market is often there on Fridays too, weather permitting.<br />
Gore Bay is nature’s treasure trove, offering great surfing,<br />
amazing walks and popular camping grounds and the nearby<br />
Cathedral Gully, a spectacular weathered clay canyon. The<br />
<strong>Hurunui</strong> and Waiau Rivers are easily accessible for salmon, trout<br />
and white bait fishing, while Conway Flat is yet another stunning<br />
site for surf casting. The area’s spectacular coastline provides<br />
opportunities for watching both whales and sea birds.<br />
Current Profile<br />
The population of the Cheviot Ward is estimated at 1,340.<br />
The Cheviot Ward had a population count of 1311 in the 2006<br />
Census. It had experienced a slight decline (around 30 people)<br />
over the last two census periods. Cheviot Ward’s residents<br />
make up approximately 12% of <strong>Hurunui</strong> <strong>District</strong>’s population<br />
as a whole.<br />
State Highway 1 runs through the centre of the Cheviot<br />
Township. This is a great strength for development and growth,<br />
as it makes the township highly accessible, as well as visible,<br />
while simultaneously increasing visitor numbers through traffic<br />
and heavy transport.<br />
The importance of traditional farming is an on-going strength in<br />
the Cheviot economy.<br />
With the closure of Parnassus School, the Cheviot Ward is<br />
home to only one school now – the Cheviot Area School in the<br />
Cheviot Township.<br />
The Cheviot Medical Centre operates from an old converted<br />
building that is less than ideal for the provision of services and<br />
is unlikely to be adequate for future demand. A new purposeddesigned<br />
building or an upgrade to the existing medical centre<br />
is proposed for consideration for 2016/17.<br />
Based in the Cheviot Township are volunteer fire and ambulance<br />
services and two full-time police officers. A council service<br />
centre is also located there, and the community library is based<br />
at the Cheviot Area School. A volunteer rural fire force operates<br />
at Conway Flat.<br />
Ward Governance<br />
<strong>District</strong> <strong>Council</strong>lors are responsible for representing the<br />
interests of their ward, setting <strong>Council</strong> policies and monitoring<br />
the <strong>Council</strong>’s performance. They are elected every three years<br />
by the voters of their ward.<br />
The Cheviot Ward is currently represented by one councillor:<br />
Vince Daly.<br />
The Cheviot <strong>Council</strong> committees include the Cheviot Ward<br />
Committee, and Reserve Committees at Spotswood, Cheviot,<br />
Domett and Port Robinson.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Key <strong>Long</strong> <strong>Term</strong> Opportunities and Challenges<br />
Changes to staffing at the <strong>Council</strong> Service Centre brought<br />
about an opportunity to review current services and look at<br />
opportunities for the future. After considering public feedback,<br />
the Cheviot Ward Committee’s preferred option is for a<br />
combined Service Centre/Library to be developed on the<br />
existing service centre site. Through this plan therefore, is a<br />
proposal to move the community library from the Cheviot<br />
Area School, where this is now based, into the service centre<br />
in <strong>2012</strong>/13. The school library would remain in the school. A<br />
working party is scoping and developing a plan to take to the<br />
community for further consideration before the final plan is<br />
confirmed.<br />
A growth strategy for the Cheviot township and the coastal<br />
areas, predominantly Gore Bay and Port Robinson area, was<br />
developed in 2007/08 with extensive community input.<br />
The impact of tourism and tourist traffic on local services and<br />
amenities present key long term challenges and opportunities.<br />
Changes in Cheviot Ward’s land use, such as rising numbers<br />
of vineyards, lifestyle blocks (particularly at Gore Bay and<br />
Port Robinson), irrigation, and tourism, may result in new<br />
opportunities and challenges.<br />
Key <strong>Plan</strong>ning Assumptions<br />
Population growth is projected to be restrained and Cheviot<br />
has historically lacked popularity as a retirement area (as<br />
elderly residents tend towards areas with more support<br />
services). Recent interest by some in the comparatively low<br />
cost of housing in Cheviot, indicate that some people wishing<br />
to leave Christchurch post the earthquakes, are finding the area<br />
attractive even without these supports.<br />
A new medical centre or an upgrade to the existing building is<br />
proposed for the Cheviot township in 2016/17. Full scoping of<br />
the options and extensive consultation will be carried out prior<br />
to any final decisions being made.<br />
Key Projects<br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15 2015-<strong>2022</strong><br />
Water pipe renewal $62,352<br />
New asset pipe $60,000 $62,352 $64,428 $526,032<br />
Sewerage - plant renewals $10,994 $36,498<br />
Sewerage - desludging $77,749<br />
Sewerage - wave band correction $30,822<br />
Cheviot Ward footpath construction $25,000 $25,980 $26,845 $219,183<br />
Cheviot Ward drainage improvements $5,000 $5,000 $5,196 $5,369<br />
Cheviot Medical Centre new building $1,150,700<br />
Cheviot Library / Service Centre $100,000<br />
Cheviot Ward - Sample Properties<br />
Property<br />
Capital<br />
Value<br />
Water<br />
No of<br />
fixed<br />
Charges<br />
Actual<br />
Rates<br />
Proposed<br />
Rates<br />
Increase (Decrease)<br />
Supply Units 2011/<strong>2012</strong> <strong>2012</strong>/2013 $ %<br />
Cheviot<br />
Township<br />
170,000 Cheviot 0.5 1 $1,512.82 $1,662.99 $150.99 9.93%<br />
Cheviot Rural 2,025.000 Cheviot 2.5 2 $4,225.26 $4,686.27 $266.48 10.91%<br />
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Glenmark Ward Profile<br />
Background and History<br />
The area of Glenmark dates back to the original owner of<br />
Glenmark station, George “Scabby” Moore. Like other<br />
Canterbury runholders he built up his property on the back<br />
of profitable pastoral farming, the generosity of his bank, and<br />
his use of cheap leasehold land. He began as the farm manager,<br />
and acquired Glenmark at auction in 1873. He paid £90,000 for<br />
38,935 acres (15,756 hectares) of freehold land, but this was<br />
linked to another 78,740 acres (31,865 hectares) of leasehold<br />
land. Eventually the run carried over 90,000 sheep and was the<br />
most valuable in the colony. Holdings on this scale were not<br />
found in the North Island.<br />
Moore was notorious as a hard employer and a bad neighbour.<br />
His station was for years Canterbury’s scabbiest run, in fact<br />
at one stage his fines for owning diseased sheep amounted<br />
to £2,400. It is believed that Moore sought to discourage<br />
prospective purchasers of his leasehold land by keeping the run<br />
infected.<br />
Waipara led the way in rural irrigation schemes by opening its<br />
No. 1 Rural Reticulated Water Supply Scheme in 1986 - the<br />
first water harvesting scheme in New Zealand. By the turn of<br />
this century the area had become a significant wine production<br />
region, accommodating fourteen wineries.<br />
The township of Waipara has its origins as a railway town, at<br />
the junction of the main trunk line and services heading west. It<br />
was famous for having the longest siding in the South Island. For<br />
many years Waipara was also home to State forestry workers<br />
and nassella tussock grubbers, but more recently it has become<br />
home to wine workers.<br />
The smaller settlement of Greta Valley was created in the late<br />
1970s, complete with amenities, a primary school, a church and<br />
a library service. Scargill owes its existence to the Christchurch/<br />
Picton railway line, while Omihi already housed some services<br />
including a primary school, a community hall and a railway<br />
station in the 1950s. The beach settlement of Motunau Beach<br />
has expanded over the past 50 years, with a third subdivision<br />
recently being developed, complementing the many earlier<br />
“traditional Kiwi baches” that characterise this settlement.<br />
The Glenmark rugby club in Omihi has produced more All<br />
Blacks than any other club in NZ -14 in all at last count!<br />
Recreation / Visitor Attractions<br />
The Waipara region is one of New Zealand’s most rapidly<br />
expanding wine areas, producing in the order of 1,000,000<br />
cases of award winning wines in an average year, including<br />
Pinot Noir, Chardonnay, Riesling, Sauvignon Blanc, Pinot Gris,<br />
Gewurztraminer, Merlot and Shiraz. Daily wine tours and<br />
personal excursions are available at many of the wineries.<br />
The Glenmark Ward also features the Glenmark railway, where<br />
one can recall the era of rural train travel with a ride in vintage<br />
former NZR passenger carriages through scenic Weka Pass on<br />
the 13-kilometre-long railway from Waipara to Waikari, using<br />
vintage former NZR steam and diesel locomotives.<br />
There are many and various accommodation options available<br />
in the area.<br />
The Motunau Beach settlement is a great place to retreat and<br />
enjoy the quiet seaside ambience. Sea fishing, marine wildlife<br />
watching and diving are just some of the great adventures on<br />
offer. In nearby Greta Valley and Scargill a peaceful, rural farming<br />
atmosphere still exists.<br />
The Canterbury regional landfill at Kate Valley is located within<br />
the Glenmark Ward. The landfill has areas of regenerating native<br />
bush and wetlands which form the nucleus of the Transwaste<br />
Tiromoana Bush Restoration plan. Transwaste are planning for<br />
Tiromoana Bush to be a major national feature, with recreational,<br />
educational and scientific opportunities for present and future<br />
generations of New Zealanders and tourists.<br />
Current Profile<br />
The population of the Glenmark Ward is estimated at 1,170.<br />
The Glenmark Ward population was 1,143 people at the time<br />
of the 2006 Census an increase of around 300 people over the<br />
previous five years. Statistics New Zealand predicts further<br />
increases for the area, but at a more modest rate than the<br />
previous five year period. Glenmark Ward’s residents make up<br />
approximately 11% of <strong>Hurunui</strong> <strong>District</strong>’s population as a whole.<br />
The Waipara Wine Valley offers ideal conditions for growing<br />
premium quality grapes, the combination of hot summer<br />
temperatures, well-drained soil and protection from the cool<br />
easterly wind makes for award winning wines. It is the fastest<br />
growing wine region in New Zealand with around 80 vineyards<br />
in the Waipara Wine Valley covers more than 1,200 hectares of<br />
plantings, including the extended Glasnevin area of the Amberley<br />
Ward). The north facing moderately sloping terrain provides an<br />
ideal sun trap for fruiting vines.<br />
The Canterbury regional landfill at Kate Valley is<br />
located within the Glenmark Ward. <strong>Council</strong> has an ongoing<br />
commitment to ensuring that this landfill operates in line with<br />
its consent conditions, and that the interests and values of the<br />
<strong>Hurunui</strong> community are effectively represented and protected<br />
throughout the planned 35 year life. A <strong>Community</strong> Trust,<br />
established and funded by the landfill company, provides financial<br />
benefits to the neighbouring community, primarily focused on<br />
Waipara. Because <strong>Council</strong> has no involvement in this Trust or its<br />
disbursements, this <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> does not take into account<br />
any community projects or developments funded by the Trust.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
There are three primary schools in the Glenmark Ward – Greta<br />
Valley, Omihi, and Waipara, as well as the Glenmark Playcentre.<br />
A community library, run entirely by volunteers is run from the<br />
Greta Valley School.<br />
Waipara Township is home to the ward’s New Zealand Fire<br />
Service volunteer fire brigade. Volunteer rural fire forces<br />
operate from Motunau Beach and Scargill.<br />
Ward Governance<br />
<strong>District</strong> <strong>Council</strong>lors are responsible for representing the<br />
interests of their ward, setting <strong>Council</strong> policies and monitoring<br />
the <strong>Council</strong>’s performance. They are elected every three years<br />
by the voters of their ward.<br />
The Glenmark Ward is currently represented by one councillor:<br />
• Russell Black.<br />
There is no ward committee representing the Glenmark Ward.<br />
The Glenmark Ward has, however, the Glenmark Reserve<br />
Committee, the Waipara Residents Association, the Waipara<br />
Wine Growers and the Waipara Valley Promotions. In addition,<br />
Omihi, Scargill and Motunau Beach have their own residents<br />
groups.<br />
Key <strong>Long</strong> <strong>Term</strong> Opportunities and<br />
Challenges<br />
community to improve the walking and cycling linkages within<br />
the <strong>Hurunui</strong> <strong>District</strong>. Of particular importance for Glenmark<br />
Ward is the proposed commuter route from Amberley to<br />
Waipara.<br />
The Greening Waipara project provides environmental<br />
opportunities by focusing on promoting non-regulatory<br />
indigenous and exotic biodiversity initiatives to achieve its goals<br />
relating to sustainable agricultural practices. The project is<br />
sponsored by Four Leaf Japan Co Ltd and the Bio-Protection<br />
Research Centre at Lincoln University.<br />
Drinking water continues to be a challenge for Waipara – both<br />
availability and hardness.<br />
Development proposals for the Waipara area are causing<br />
concerns regarding ‘sprawl’.<br />
Key <strong>Plan</strong>ning Assumptions<br />
The worldwide economic downturn will likely have a negative<br />
effect on growth and development in farming and associated<br />
rural activities in the Glenmark Ward. It is not expected to effect<br />
change to any large degree in the next ten years in regards to<br />
growth and development in the wine and tourism areas, resulting<br />
in the continued demands and pressures on infrastructure in the<br />
Waipara area.<br />
The Waipara growth strategy and concept plan, when<br />
completed, will identify long term opportunities for the<br />
Glenmark Ward.<br />
Last year, a number of Waipara Valley wineries and other<br />
businesses created a collaborative group to market and promote<br />
the region. This group, called Waipara Valley NZ, includes over 15<br />
wineries and other businesses and is supported and resourced<br />
by Waipara Valley Winegrowers and the <strong>Hurunui</strong> Tourism Board.<br />
Local opportunities will be afforded by the funds available from<br />
the Kate Valley <strong>Community</strong> Trust.<br />
Key long term challenges include the limited of availability of<br />
labour and housing to support Glenmark Ward’s wine industry<br />
and tourism development.<br />
Future challenges are also likely to involve pressure on local<br />
infrastructure due to an increase in Glenmark Ward’s industry<br />
and population.<br />
The <strong>Council</strong> has adopted a Walking and Cycling Strategy, which<br />
aims to facilitate the desires made by some members of the<br />
63
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Key Projects<br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15 2015-<strong>2022</strong><br />
Waipara Township water pipe renewal $20,000<br />
Greta Valley Sewerage – plant renewals $17,000 $18,255<br />
Greta Valley Sewerage – electrical/communications $2,000 $2,078 $2,148 $17,525<br />
Motunau Beach Sewerage $35,000 $144,326<br />
Glenmark Ward - Sample Properties<br />
Property<br />
Capital<br />
Value<br />
Supply<br />
Water<br />
Units<br />
No of<br />
fixed<br />
Charges<br />
Actual Rates<br />
2011/<strong>2012</strong><br />
Proposed<br />
Rates<br />
<strong>2012</strong>/2013<br />
Increase (Decrease)<br />
$ %<br />
Motunau Beach Property 390,000 <strong>Hurunui</strong><br />
Rural<br />
0.5 1 $1,467.34 $1,592.07 $124.73 8.50%<br />
Waipara Township 220.000 Waipara 66 1 $908.48 $974.51 $66.03 7.16%<br />
Glenmark Rural<br />
1,900,00 <strong>Hurunui</strong><br />
Rural<br />
7 2 $6,959.65 $7,740.85 $781.20 11.22%<br />
64
Hanmer Springs Ward Profile<br />
Background and History<br />
In its very early days, the presence of the hot springs made<br />
the Hanmer Springs township a popular visitor destination, and<br />
entrepreneurs were quick to offer accommodation for travellers<br />
and tourists. This popularity as a holiday destination continues<br />
today and many tourism and hospitality focused businesses have<br />
flourished as a result.<br />
Timber logging and milling of the surrounding forests commenced<br />
in 1900 as part of a Government scheme employing prison<br />
labour. There have been subsequent changes of ownership and<br />
operation of this forest over the years, culminating in the recent<br />
closure of local milling, and Ngai Tahu taking over ownership as<br />
part of New Zealand’s treaty settlements legislation.<br />
The well known Queen Mary Hospital site dates back to the<br />
establishment of a Soldiers Hospital in 1916, for the recuperation<br />
and rehabilitation of injured and war weary soldiers returning<br />
from the WW1 front lines. The surrounding park-like grounds<br />
and magnificent trees add to the special value of this nationally<br />
recognized heritage site.<br />
In late 2008 the council and the New Zealand Government<br />
reached an agreement that has secured the future of a<br />
substantial six hectares of the old Queen Mary Hospital site<br />
in public ownership for present and future generations of New<br />
Zealanders. The Crown vested the land and protected Heritage<br />
buildings in the <strong>Council</strong> in 2010. Most recently the Hanmer<br />
Springs Township has undergone a facelift through the Hanmer<br />
Springs Growth Strategy. The upgrade of the town centre was<br />
completed in 2010. Ongoing upgrades have been applied to the<br />
reserves and walkways in the area.<br />
<strong>Community</strong> Board Vision<br />
The Hanmer Springs <strong>Community</strong> Board has a vision for Hanmer<br />
Springs as a place for all to live, work and play. Their vision is;<br />
“a place for all ages and stages of life, with a focus on community<br />
growth, provide a sustainable environment for people to visit and live,<br />
and expand the tourism opportunities of the area.”<br />
Recreation / Visitor Attractions<br />
Situated in a high country basin, the small, natural alpine spa<br />
village of Hanmer Springs has been a favourite retreat for<br />
generations of New Zealanders. The award winning Hanmer<br />
Springs Thermal Pools and Spa complex is a major draw card,<br />
and the pristine alpine environment with its forests, rivers<br />
and mountains enhance its appeal as the ultimate year round<br />
destination.<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
There’s a substantial variety of accommodation available,<br />
complimented by delightful restaurants, cafés, boutique shopping,<br />
galleries and craft shops.<br />
Hanmer Springs offers activities for all tastes and fitness levels,<br />
with numerous walkways, golf, horse riding and mountain biking<br />
options available. There are opportunities for pure relaxation<br />
with massage & wellness treatments or blood pumping, thrill<br />
seeking adventures such as jet boating, white water rafting,<br />
bungee jumping, and four- wheel driving.<br />
The newly vested St James Station Conservation Area and Queen<br />
Mary Hospital site will also provide both locals and visitors with<br />
exciting new opportunities for recreational activities.<br />
Current Profile<br />
• The population of the Hanmer Springs Ward is<br />
estimated at 1,040.<br />
• With more than 600 holiday homes in the Hanmer<br />
Springs and its popularity as a tourist destination, the<br />
number of people in the area during peak holiday times<br />
can be as high as 6,000<br />
• The hospitality industry is the single largest employer<br />
in the Hanmer Springs Ward, employing around 30% of<br />
the ward’s full time workers<br />
• Hanmer Springs has always promoted a general ‘health<br />
and wellness’ theme<br />
• There are local town planning controls in place in the<br />
Hanmer Springs Township to ensure that the look and<br />
feel of this special alpine spa village are preserved for<br />
future generations<br />
• The Hanmer Springs Thermal Pools and Spa is an award<br />
winning tourist attraction. Owned by the <strong>Hurunui</strong><br />
<strong>District</strong> <strong>Council</strong>, the complex hosted 527,801 visitors<br />
during the twelve months ending June 30th 2011. From<br />
2009-11 the Thermal Pools and Spa had an increase in<br />
visitor numbers of 4%. The surpluses achieved at the<br />
Hanmer Springs Thermal pools & Spa were $2,064,966<br />
in 2009/2010 and $2,131,000 in 2010/2011. From these<br />
surpluses, a total of $3,492,460 was transferred from<br />
the Thermal Pools surplus for the funding of district<br />
wide reserves. For the 2011/<strong>2012</strong> year, the amount<br />
to be transferred from the Thermal reserve to offset<br />
the costs of reserves throughout the <strong>District</strong> has been<br />
budgeted at $2,021,372<br />
• The Hanmer Springs Township is home to one primary<br />
school, a child care centre and a Playcentre. <strong>Council</strong><br />
also runs a service centre/ library in the township<br />
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• In response to growth and demand, a purpose designed<br />
medical centre was built in Hanmer Springs in 2008<br />
• Hanmer Springs has a combined emergency response<br />
facility which houses Fire, Police, and Ambulance<br />
services<br />
Ward Governance<br />
<strong>District</strong> <strong>Council</strong>lors are responsible for representing the<br />
interests of their ward, setting <strong>Council</strong> policies and monitoring<br />
the <strong>Council</strong>’s performance. They are elected every three years<br />
by the voters of their ward.<br />
The Hanmer Springs Ward is currently represented by one<br />
councillor:<br />
Michael Malthus (who is also Deputy Mayor).<br />
In addition, the Hanmer Springs Ward has the publicly elected<br />
Hanmer Springs <strong>Community</strong> Board. The current representatives<br />
on the Board are;<br />
Jason Fletcher (Chair)<br />
Bill Clarkson<br />
Rosemary Ensor<br />
Kate Poiner<br />
Chris Preston<br />
Hanmer Springs also has its own Business Association.<br />
Key <strong>Long</strong> <strong>Term</strong> Opportunities and<br />
Challenges<br />
<strong>Community</strong>:<br />
• Target local population by 2023 of 1500 people<br />
• Provide housing for all ages and stages of life<br />
• Be a recognised sustainable community<br />
• Provide access to affordable housing for the retired and<br />
those on low incomes<br />
• Provide village wide high speed broadband connectivity<br />
• Extend the pedestrian friendly approach to the town<br />
• Ensure the Queen Mary Hospital opportunities are<br />
realised for both the business community and the<br />
residents<br />
Commercial and Tourism:<br />
• A long term challenge for the Hanmer Springs Ward is<br />
to maintain annual visitor growth<br />
• The vesting of the 6 hectare reserve area on the Queen<br />
Mary site represents a substantial opportunity for the<br />
Hanmer Springs Ward and the district<br />
• The Track Network provides a great opportunity to<br />
add to Hanmer’s visitor attractions<br />
• <strong>Long</strong> term security of access to the forests that<br />
surrounds Hanmer.<br />
• The high country areas are some of the best in new<br />
Zealand and offer visitors unique and easy access.<br />
• Maximisation of the commercial Zoned area in the<br />
village<br />
• Hanmer Springs needs to tap into the conference<br />
market<br />
• Hanmer Springs needs better community facilities in<br />
order to attract and keep people<br />
Infrastructure:<br />
• Improved access to the high-country will open up great<br />
opportunities for further tourism development<br />
• Entry at State highway 7 and 7a needs to be safer and<br />
more user friendly<br />
• Environment Canterbury has made it a requirement<br />
that we improve the quality of sewage outfall.<br />
• Peak loading for water needs to be safe guarded<br />
Key <strong>Plan</strong>ning Assumptions<br />
The Hanmer Springs area is predicted to continue to grow at<br />
above district average rates. Whilst there are some important<br />
challenges facing tourism, it is assumed that on balance whilst<br />
there has been an impact from the economic downturn on<br />
international travel, the Christchurch/Canterbury market has<br />
continue to grow, further strengthening the already strong<br />
demand for holiday homes.<br />
Hanmer Springs is a popular location for retirees and those able<br />
to work from home. It is predicted that as telecommunications<br />
and technology advance over the coming years, this market will<br />
further increase.<br />
The key projects table on the next page sets out the work we<br />
are planning over the next ten years. In addition, we are also<br />
keen to:<br />
• Seek accreditation as a sustainable community<br />
• Provide Village wide high speed broadband connectivity<br />
• Seek continued funding and upgrading of the Track<br />
Network<br />
• Look at the purchase the Heritage Forrest and link to St<br />
James walking/cycling /horses and extend to Woodbank<br />
Road and Clarence Valley<br />
• Improve the roads and access to the high-country<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
• Improve the entry at State highway 7 and 7a<br />
• Improve the sewage out fall water quality to meet<br />
ECAN requirements<br />
• Start looking at water supply for 2023<br />
Key Projects<br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15 2015-<strong>2022</strong><br />
Land purchased for water treatment $140,000<br />
Water – renewal reticulation (from Asset Management <strong>Plan</strong>) $623,656<br />
New sewerage monitoring bores - disposal $555,350<br />
New sewerage monitoring bores - desludging $93,528<br />
Stormwater – Capital Expenditure $62,352 $154,086<br />
Sewer Improvements $220,000 $1,288,560<br />
Roading - renewals $15,000 $15,588 $16,107 $131,511<br />
Roading – new construction $45,000 $46,764 $48,321 $394,527<br />
Street lighting $15,000 $15,588 $16,107 $131,511<br />
Hanmer Springs Hall – stage upgrade $10,000<br />
Hanmer Springs Hall – extension $193,284<br />
Sports ground upgrade $30,000<br />
Exercise equipment $35,000<br />
$1,077,<br />
379<br />
Additional seating $3,000 $2,078 $1,074<br />
BBQ equipment – Brooke Dawson $5,000<br />
BBQ equipment – Tarndale $5,196<br />
Reserve capital projects $10,000 $10,392 $10,738 $87,681<br />
Conical Hill Walkway Project $119,450<br />
New welcome sign on SH7 $70.000<br />
Hanmer Springs Ward - Sample Properties<br />
Property<br />
Hanmer Springs<br />
Township (Tourism)<br />
Hanmer Springs<br />
Township<br />
Hanmer Springs<br />
Rural<br />
Capital<br />
Value<br />
Supply<br />
Water<br />
Units<br />
No of<br />
fixed<br />
Charges<br />
Actual Rates<br />
2011/<strong>2012</strong><br />
Proposed<br />
Rates<br />
<strong>2012</strong>/2013<br />
Increase (Decrease)<br />
$ %<br />
405,000 Hanmer Springs 215 1 $2,061.62 $2,142.58 $80.96 3.93%<br />
430,000 Hanmer Springs 27 1 $1,626.17 $1,689.71 $63.53 3.91%<br />
3,325,000 No Water n/a 1 $4,267.03 $4,464.69 $197.67 4.63%<br />
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<strong>Council</strong> Activities<br />
69 Introduction<br />
71 Water Supply<br />
79 Sewerage<br />
84 Stormwater and Drainage<br />
88 Roads and Footpaths<br />
94 <strong>Community</strong> Services and Facilities<br />
96 <strong>Community</strong> Services<br />
102 Property<br />
108 Reserves<br />
112 Environment and Safety<br />
115 Emergency Services<br />
119 Resource Management<br />
122 Compliance and Regulatory<br />
Functions<br />
126 Waste Minimisation<br />
130 <strong>District</strong> Promotion<br />
135 Hanmer Springs Thermal Pools and Spa<br />
141 Governance<br />
68
<strong>Council</strong> Activities<br />
Introduction<br />
In this section, you will find detailed information about our plans<br />
for the next ten years, with particular focus on the next three<br />
years. Our work is grouped into nine categories:<br />
1. Water Supply<br />
2. Sewerage<br />
3. Stormwater and Drainage<br />
4. Roads and Footpaths<br />
5. <strong>Community</strong> Services and Facilities<br />
6. Environment and Safety<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
<strong>Community</strong> Outcomes and Activity<br />
Groupings<br />
Our community outcomes express what we want to achieve<br />
through the delivery of a particular group of activities. The<br />
chart on the next page shows how the groups of activities are<br />
linked to specific community outcomes.<br />
<strong>Plan</strong> Review/Public Consultation<br />
This long term plan will be comprehensively reviewed each three<br />
years. Before it is finalised each time by the <strong>Council</strong>, the public<br />
will have the opportunity to give their opinion on any aspect<br />
of the draft plan beforehand through a special consultative<br />
procedure. Parts of the plan may be reviewed at other times if<br />
circumstances alter what we had intended in the plan. The next<br />
long term plan review is due in 2015.<br />
7. <strong>District</strong> Promotion<br />
8. Hanmer Springs Thermal Pools and Spa<br />
9. Governance<br />
The following pages go into detail about each category and its<br />
associated activities. The format for each is similar and although<br />
some information is relevant for some activities and not for<br />
others. In each of the groups of activities, you will be able to<br />
find out:<br />
• <strong>Council</strong>’s overall aim in relation to the activity<br />
• Background to the activity<br />
• How the activity will contribute towards the<br />
achievement of our community outcomes<br />
• What the current situation is in relation to the activity<br />
• What council’s future plans are in relation to the activity<br />
• How the activity is funded<br />
• How the activity is maintained and operated<br />
• What significant negative effects are caused through the<br />
activity<br />
• Assumptions and risks that are associated with the<br />
activity<br />
• How we measure or monitor our progress<br />
• Financial forecasts<br />
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Contribution to <strong>Community</strong> Outcomes<br />
<strong>Community</strong> Outcomes<br />
Groups of<br />
<strong>Council</strong> Activities<br />
A desirable<br />
and safe place<br />
to live<br />
A place where our<br />
traditional rural<br />
values and<br />
heritage make<br />
<strong>Hurunui</strong> unique<br />
A place with a<br />
thriving local<br />
economy<br />
A place that<br />
demonstrates<br />
environmental<br />
responsibility<br />
A place with<br />
essential<br />
infrastructure<br />
Water Supply ü ü<br />
Sewerage ü ü ü<br />
Stormwater and<br />
Drainage ü ü<br />
Roads and Footpaths<br />
ü<br />
<strong>Community</strong> Services<br />
and Facilities ü ü<br />
Environment and Safety ü ü<br />
<strong>District</strong> Promotion<br />
ü<br />
Hanmer Springs Pools<br />
and Spa ü ü<br />
Governance<br />
ü<br />
70
Water Supply<br />
Overview<br />
Water Supply covers the following activity described below:<br />
Activity 1: Water Supply (township supply and rural water<br />
schemes)<br />
Our Aim<br />
To provide a sustainable supply of water that meets the needs<br />
of present and future domestic and agricultural/horticultural<br />
consumers, and complies with the New Zealand Drinking Water<br />
Standards.<br />
Why is the <strong>Council</strong> Involved?<br />
The subject of water is of major importance to our <strong>Council</strong>. It is<br />
an on-going challenge for us to provide a plentiful water supply,<br />
particularly given the drought prone nature of the <strong>Hurunui</strong>,<br />
and to have water that is of a good drinking standard while at<br />
the same time operating an efficient and cost effective service.<br />
Water is of primary importance to any community and has a<br />
direct influence and impact on the economic, social, cultural and<br />
environmental wellbeings of our population.<br />
<strong>Community</strong> Outcomes<br />
The Water Supply activity described in this section, primarily<br />
contributes to two of our community outcomes:<br />
1. A desirable and safe place to live:<br />
• We have attractive well designed townships<br />
• Communities have access to adequate health and<br />
emergency services and systems and resources<br />
are available to meet civil defence emergencies<br />
• Risks to public health are identified and<br />
appropriately managed<br />
2. A place with essential infrastructure:<br />
• We have a strong emphasis on service delivery<br />
across all infrastructure including roading, water<br />
(for drinking and development), waste water,<br />
stormwater and solid waste<br />
Major Projects <strong>Plan</strong>ned<br />
Project<br />
Renewal reticulation -<br />
Amberley<br />
Commission SH1 bore -<br />
Amberley<br />
Rising Main upgrade -<br />
Amberley<br />
Renew and upgrade pipes<br />
and fittings – Ashley Rural<br />
Mixed Oxidant treatment<br />
plant – Ashley Rural<br />
Water security (tank farm)<br />
– Culverden Township<br />
Drinking Water Standards<br />
Stage I – Waiau Township<br />
Mixed Oxidant treatment<br />
plant – Waiau Rural<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15<br />
$25,000<br />
$236,500<br />
$170,000 $124,704<br />
$90,000<br />
$205,000<br />
$98,000<br />
$51,960<br />
Renew pipework- Cheviot $62,352<br />
Mixed Oxidant treatment<br />
plant (Main, Parnassus,<br />
Blythe, Kaiwara) - Cheviot<br />
Pipe renewal – Waipara<br />
Township<br />
Mixed Oxidant treatment<br />
plant – Waipara Township<br />
Land purchase water<br />
treatment – Hanmer<br />
Springs<br />
Renewal mechanical –<br />
<strong>Hurunui</strong> Rural<br />
Renewal pipe – <strong>Hurunui</strong><br />
Rural<br />
Mixed Oxidant treatment<br />
plant (#01, Peaks, L.<br />
Waitohi) – <strong>Hurunui</strong> Rural<br />
$293,000<br />
$20,000<br />
$98,000<br />
$140,000<br />
$260,933<br />
$128,856<br />
$25,000 $25,980 $26,845<br />
$120,000 $124,704 $128,856<br />
$269,000<br />
Significant Negative Effects<br />
There is potential for significant negative effects on the<br />
environmental and cultural wellbeing of the community if there<br />
is excessive abstraction of water. Abstraction is managed to<br />
minimise the chance of outages or disruption to supply. There<br />
are also potential negative public health effects in providing<br />
water in some areas that does not meet current drinking water<br />
guidelines for biological contaminants. We issue public “boil<br />
water” notices when positive samples are detected. We are<br />
working toward improving the standard of our water supply to<br />
71
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meet the New Zealand drinking water standards over the next<br />
10 years or so. Ultimately, we aim to negate the need for boil<br />
water notices in the future.<br />
Development contributions are being collected to offset the<br />
negative economic effects on ratepayers of upgrades of supplies<br />
in the <strong>District</strong> that are necessary to cater for growth. Such<br />
upgrades will help to ensure that the present level of provision<br />
of water supply services is sustainable.<br />
Emergency Management<br />
In an emergency, particularly a civil defence emergency, we will<br />
continue to deliver services as long as it is safe and practical to<br />
continue to do so. Water is a priority commodity at any time,<br />
and no less so in the event of a civil emergency. Every effort<br />
will be made to maintain our water services in an emergency<br />
situation, or when major damage has occurred for whatever<br />
reason.<br />
Financial Summary<br />
A financial summary for this group of activities is shown at the<br />
end of the Water Supply activity.<br />
72
Activity 1: Water Supply<br />
Overview<br />
The Water Supply activity includes the various functions of rural<br />
and township water supplies.<br />
Current Situation<br />
The quality and quantity of drinking water in the <strong>Hurunui</strong><br />
<strong>District</strong> remains a concern and priority for us.<br />
There are currently 13 <strong>Council</strong> owned water schemes in the<br />
<strong>District</strong>, extracting water from 22 different sources, five others<br />
are for emergency backup supply if required. Eight of these intake<br />
sources are on permanent boil water notices (method used for<br />
killing any bacteria, viruses, ova and cysts that may be present<br />
in potentially contaminated water). The schemes are overseen<br />
by Water Committees with delegated responsibilities for the<br />
planning and development of their schemes, alongside council<br />
officers. A schedule of the water schemes is included within<br />
this section. On-demand water is supplied to 8 of the urban<br />
communities in the district; these being from 7 high pressure<br />
schemes consisting of 9 water intakes and 60 km of pipe.<br />
Other small urban communities (Leithfield, Cheviot, Gore Bay,<br />
Rotherham, Greta Valley, Amberley Beach and Motunau Beach)<br />
are supplied via tanks from restricted rural supplies. All rural<br />
communities in the district are serviced by <strong>Council</strong> operated<br />
restricted-flow water supplies providing water to consumers<br />
as “units” of water supplied into individual tanks. One unit is<br />
1800 litres supplied over 24 hours, except for Balmoral and<br />
Amuri Plains, where a unit is 1000 litres per day. The <strong>Hurunui</strong><br />
and Cheviot Rural Water Schemes cover four separate supplies<br />
within each of their areas. The Ashley Scheme also has four<br />
distinct intake sources and includes part of the Waimakariri<br />
<strong>District</strong> within its boundaries.<br />
All townships with on-demand supplies, except Leithfield Beach<br />
have metered connections and charges are made on actual<br />
water consumption used.<br />
The levels of service for our water supplies can be found in<br />
the appendices section of this plan. These levels of service are<br />
monitored internally and will not be reported in the Annual<br />
Report.<br />
<strong>Plan</strong>s for the Future<br />
The availability of safe drinking-water for all New Zealanders,<br />
irrespective of where they live, is a fundamental requirement<br />
for public health. The revised Drinking-Water Standards are<br />
a significant achievement in New Zealand’s endeavours to<br />
maintain and improve the quality of drinking-water.<br />
Since the publication of Drinking-Water Standards for New<br />
Zealand 2000, the approach to managing drinking-water has<br />
changed. The focus has moved from quality control to a broader<br />
approach of quality assurance. This has been necessary due<br />
to changes in technology, an improvement in our scientific<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
knowledge and the requirement to address a broader range of<br />
issues than previously covered. This change has been managed<br />
though the Drinking-Water Standards for New Zealand 2005<br />
(revised 2008) (DWSNZ).<br />
The Health (Drinking Water) Amendment Act 2007 amended<br />
the Health Act 1956 to require all drinking-water suppliers<br />
providing water to consumers to develop and start to implement<br />
a Public Health Risk Management <strong>Plan</strong> (PHRMP) to guide the safe<br />
management of each minor drinking-water supply (501 to 5000<br />
consumers) before 01 July 2014 onwards. A Public Health Risk<br />
Management <strong>Plan</strong> is a tool to help suppliers identify, manage and<br />
minimise events that would cause water quality to deteriorate.<br />
This amendment marks a milestone in New Zealand in that, for<br />
the first time, all drinking-water suppliers have a duty to ensure<br />
their drinking-water supply is safe to drink.<br />
The three main themes covered by the DWSNZ are maximum<br />
acceptable values (water quality standards for microbial,<br />
chemical and radiological determinants); the compliance criteria<br />
and reporting requirements; and lastly, the remedial actions to be<br />
taken when non-compliance is detected. The quality of the water<br />
that is provided will continue to be governed by the DWSNZ,<br />
which prescribes the maximum allowable concentrations of<br />
potentially harmful contaminants that may be present in the<br />
drinking-water supplied.<br />
The penalties for failing to comply with DWSNZ are very severe<br />
($200,000 plus for a continuing offence, and $10,000 for each<br />
day of continued non-compliance). Accordingly, we have worked<br />
hard with our local water and ward committees to ensure that<br />
the requirements under DWSNZ are met within the PHRMP<br />
compliance times specified, with latitude for affordability.<br />
Six of our 22 water supply sources are defined as “minor”<br />
supplies, which require PHRMP compliance with the Act by 1<br />
July 2014. Of these seven intakes; three have approved PHRMP’s,<br />
one has a current drafted PHRMP (to be submitted to Ministry<br />
of Health (MoH) for endorsement); two are currently being age<br />
tested (deep water secure sources); and the remaining one is<br />
currently being drafted. The other 16 drinking water sources<br />
are categorised as either “small”, “neighbourhood” or “rural<br />
agricultural” with PHRMP compliance timeframes of 01 July<br />
2015, 2016 or later than 2016 respectively. Table 1 in this section<br />
details the situation for all of our drinking water supplies.<br />
The cost to fully comply with DWSNZ is currently estimated at<br />
an additional $14 million (capital works) and a further $484,000<br />
per annum (operational costs) in today’s dollar value. Initial<br />
discussions with the Ministry of Health (Canterbury <strong>District</strong><br />
Health Board) indicated that we must meet physical compliance<br />
no later than three years after the final compliance approval<br />
date for the PHRMP, for each shallow at-risk intake source.<br />
This comes at a huge capital expenditure from 2017 to 2020.<br />
We have raised with MoH, the affordability issue for a small<br />
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rural council such as ours to meet these exorbitant costs. We<br />
arrived at a proposed compromise to achieve full DWSNZ<br />
compliance no later than ten years after the final approval date<br />
for the respective PHRMP. The expectation from the MoH<br />
is that we will, as a minimum, provide drinking-water to our<br />
consumers that is bacteriologically free (meets compliance for<br />
maximum acceptable e-coli contamination levels, but is still safe<br />
to consume). Furthermore, we will show that we are making<br />
provision for the impending capital cost impact through years<br />
2024 to 2027 through a district-wide general rated scheme, thus<br />
mitigate a repeated affordability argument in years to come. All<br />
currently approved PHRMP’s will require a review to include<br />
this MoH endorsed strategic approach.<br />
We are planning to meet the drinking water standards in two<br />
phases. The first will involve installing Miox treatments in each<br />
of the nine at risk water intakes in the <strong>2012</strong>/13 year. This will put<br />
an end to our ‘boil water’ notices. The second phase involves<br />
the actual upgrading to full compliance and the Miox treatments<br />
will end. This last phase will occur between 2024 and 2027.<br />
We have been undertaking a pipe replacement programme<br />
over the past few years, and due to the extensive nature of the<br />
<strong>Hurunui</strong> <strong>District</strong>, this will continue for many years to come.<br />
Funding<br />
Operational Costs:<br />
Restricted Supply<br />
• As a local Uniform Annual Charge on water unit<br />
entitlement.<br />
Unrestricted Supply<br />
• Fixed costs – As a local Uniform Annual Charge.<br />
Variable costs<br />
• As a set price based per cubic meter of water as<br />
recorded by the individual water meters.<br />
Depreciation<br />
• <strong>Council</strong> does not cash fund depreciation on its assets.<br />
Instead, it builds up a fund for future maintenance<br />
through rating at a higher level than required to meet<br />
the operating costs. See the Statement Concerning<br />
Balancing of the Budget on page 33.<br />
Capital Costs:<br />
• Significant <strong>Council</strong> capital expenditure will be funded<br />
by loan for the life of the investment pursuant to the<br />
Internal Financing Policy.<br />
• If loans are not raised then it will be treated as a fixed<br />
cost and funded from annual rates.<br />
via Development Contributions.<br />
• Landowners with new connections will pay the cost of<br />
connecting to the nearest main plus, if a new subdivide,<br />
putting in the sub-main and any levies as specified in the<br />
Development Contributions policy.<br />
• Property owners wanting new connections will pay<br />
those costs necessary for the connection.<br />
Loan Repayments<br />
• Significant <strong>Council</strong> capital expenditure should be funded<br />
by loan for the life of the investment. Repayment of the<br />
loan will be treated as a fixed cost and will be funded<br />
from a local Uniform Annual Charge.<br />
Table 1: Water Supply Source Definitions (re MoH criteria)<br />
Source Type Population Category<br />
Effective<br />
Date<br />
Amberley Town<br />
• SH1, Leithfield Well 1300 Minor 2014<br />
Amberley Beach<br />
• Kowai Well 630 Minor 2014<br />
Amuri Plains Well 400 Small 2014<br />
Ashley Rural<br />
• Main intake<br />
• Mays<br />
• Racecourse<br />
Road<br />
Well<br />
Well<br />
Well<br />
2750<br />
500<br />
450<br />
Minor<br />
Small<br />
Small<br />
2014<br />
2015<br />
2015<br />
Balmoral Rural Gallery 200 small 2015<br />
Cheviot Rural<br />
• Waiau River<br />
• Blythe<br />
• Kaiwara<br />
• Parnassus<br />
Well<br />
Well<br />
Gallery<br />
Well<br />
1340<br />
65<br />
162<br />
100<br />
Minor<br />
Neighbourhood<br />
Rural Agriculture<br />
Neighbourhood<br />
2014<br />
2016<br />
2016<br />
2016<br />
Culverden Well 475 Small 2015<br />
Hanmer Town Gallery 1,500 Minor 2014<br />
Hawarden / Well 750 Minor 2014<br />
Waikari<br />
<strong>Hurunui</strong> Rural<br />
• No. 1<br />
• Peaks<br />
• Upper<br />
Waitohi<br />
• Lower<br />
Waitohi<br />
Gallery<br />
Well<br />
Gallery<br />
Gallery<br />
600<br />
100<br />
400<br />
300<br />
Rural Agriculture<br />
Neighbourhood<br />
Rural Agriculture<br />
Rural Agriculture<br />
2016<br />
2016<br />
2016<br />
2016<br />
Leithfield Beach Well 150 Small 2015<br />
Waiau Rural Well 240 Rural Agricultural 2016<br />
Waiau Town Well 420 Small 2015<br />
Waipara Town Well 300 Small 2015<br />
• If any of the Capital Expenditure caters for future growth<br />
of the scheme, then that portion of the expenditure<br />
that relates to growth may be funded from future users<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
<strong>Council</strong> Owned Assets<br />
13 water schemes:<br />
On Demand Water Schemes (Urban)<br />
1. Amberley<br />
2. Leithfield Beach<br />
3. Culverden<br />
4. Waiau<br />
5. Waipara<br />
6. Hanmer Springs<br />
7. Hawarden-Waikari<br />
Restricted Water Supplies (Rural)<br />
8. Ashley<br />
9. Amuri Plains<br />
10. Balmoral<br />
11. Waiau Rural<br />
12. Cheviot<br />
13. <strong>Hurunui</strong><br />
Table 2 shows the water network valuations as at 30 June 2011.<br />
Maintenance and Operating Implications<br />
We intend to retain the ownership of all public water supply<br />
assets on behalf of the communities that these facilities serve.<br />
Asset management, basic design work, contract documentation,<br />
tendering, record keeping, operation and routine repair and<br />
maintenance are to be carried out by our staff. Larger budget<br />
capital works are likely to be let as contracts. Larger repairs,<br />
work across state highways or arterial roads and some<br />
emergency works may also be contracted to preferred or<br />
available contractors. External consultants will be engaged only<br />
for specialised tasks, where we do not have those skills in-house.<br />
Information relating to the overall condition and performance of<br />
the assets that make up the water supply networks in the district<br />
are in our Asset Management <strong>Plan</strong>s. Age and condition have an<br />
influence on the maintenance of assets, but do not necessarily<br />
impact on output and/or outcome performance. Breakages can<br />
occur due to nearby earthworks, natural emergency events,<br />
pressure waves (from pumps) or illegal connections that can<br />
influence demand for water. Low performance can also arise<br />
from an increase in demand from high growth, changes in<br />
technology and materials, and changing expectations from the<br />
community. The Water Asset Management <strong>Plan</strong> will be reviewed<br />
and updated through 2013.<br />
The Demand Management Strategy will look at significant<br />
ways to improve forecasting, planning and upgrading of water<br />
infrastructure into the future, thus addressing the national issue<br />
of increasing competition for access to water. The challenges<br />
of future growth, development and land-use changes (both<br />
domestic and industrial) within the district and the subsequent<br />
need to replace or renew supply infrastructure to meet these<br />
needs, will drive us to reassess how we currently do our business<br />
and to start thinking smarter and wiser. Water supply efficiency<br />
is a core directive to ensuring that we use what we currently<br />
have more effectively, before expensive upgrade works are<br />
considered. We have a responsibility to help educate the public<br />
Table 2: Water Network Valuations<br />
Network Replacement Cost<br />
Depreciated<br />
Values<br />
Amberley $2,815,297.48 $1,111,538.26<br />
Amuri Plains $1,290,870.87 $800,292.87<br />
Ashley $11,993,509.66 $8,349,455.36<br />
Balmoral $1,312,486.28 $775,449.94<br />
Blythe $401,350.63 $223,933.83<br />
Cheviot $3,255,002.95 $1,513,348.23<br />
Culverden $1,011,591.28 $380,681.82<br />
Hanmer Springs $5,817,078.18 $3,645,959.74<br />
Hawarden-Waikari $2,485,771.81 $878,670.62<br />
<strong>Hurunui</strong> 1 $5,124,151.09 $2,321,822.64<br />
Kaiwara $1,662,809.98 $954,166.69<br />
Leithfield Beach $490,747.49 $275,692.71<br />
Lower Waitohi $1,677,400.52 $814,691.71<br />
Parnassus $1,106,936.83 $603,963.87<br />
Peaks $273,119.55 $160,382.43<br />
Upper Waitohi $2,279,526.49 $862,083.11<br />
Waiau RWS $2,292,416.66 $1,100,388.11<br />
Waiau Township $712,104.90 $200,642.77<br />
Waipara $708,485.77 $254,815.72<br />
to reduce water consumption and encourage other methods<br />
to conserve water (such as grey water systems in new homes).<br />
Most of the network reticulation is in good repair and operating<br />
under a policy of renewal when necessary, thus reticulation should<br />
remain serviceable indefinitely. Pumps, controls, telemetry (data<br />
sent back to the office by radio) and water treatment devices<br />
are repaired as the need arises and are replaced as the benefits<br />
of repair are outweighed by replacement – usually every 12 – 20<br />
years. Reservoirs, weirs, bores, and ponds are maintained on an<br />
on-going basis. The asset ages of on-demand water networks is<br />
quite recent, with the earliest network installations dating back<br />
to 1955 (in Amberley).<br />
Assumptions and Risks<br />
Upgrading of water systems, new treatment plants and filtration<br />
systems to meet Drinking-Water Standards New Zealand, have<br />
all assumed financial subsidies from Central Government in<br />
the past in order for the work to affordably proceed. However,<br />
reduced national subsidy funding (less money available for all)<br />
and the ever-increasing limiting eligibility criteria (specifically<br />
the deprivation index to address more financially needy<br />
communities) have put council in a position that requires<br />
reconsideration of this hopeful approach. We will have to<br />
fund the full cost from their perceived deep pockets, placing<br />
more financial burden upon our communities to meet these<br />
legislatively imposed standards.<br />
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We will continue to make application for this subsidy yearly<br />
from the Ministry of Health, wherever we see opportunity<br />
within the constraints of the set and strict criteria applicable to<br />
qualify for an adjudicated consideration.<br />
Effort is continually on-going to establish the useful lifespan of<br />
underground and fixed water supply assets. Most of the urban<br />
reticulation is AC pipe (older community areas prior to early<br />
1970’s) and PVC for new sub-divisions and replacement sections<br />
of the current infrastructure.<br />
Pipe material has performed satisfactorily since installation,<br />
but renewal is anticipated for much of this over the next 20<br />
years or so. We have been undertaking a renewal programme<br />
for some years, which will continue so that the cost is spread<br />
out rather than peaking at once. Expected life for AC is 60<br />
years and 80 years for PVC and polyethylene (PE). Some AC<br />
pipe has experienced wall softening, thus demanding repair<br />
or replacement. This effect is localised in all networks, but<br />
the frequency of pipe failure is closely monitored to ensure<br />
replacement is carried out at the optimum time.<br />
External and internal stresses determine the useful life of all<br />
assets. The inability to pin-point these means approximate<br />
values are applied to useful service lives. This implies that<br />
renewal priorities are spontaneous (reactive based on incidents<br />
of breakages), rather than being confidently known (proactive<br />
based on scientific data). Better scientific information around<br />
the pipeline infrastructure (sectional investigations for condition<br />
ratings) could swing this approach to the NAMS best practice<br />
asset management outcomes, but comes at a high initial cost.<br />
Sectional Investigation Programmes (SIP) will be initiated to<br />
selected schemes over the next three years to make inroads<br />
towards this desirable outcome and improved proactive<br />
forecasted replacement/renewal maintenance programmes.<br />
We recognise risks associated with failure to supply safe drinking<br />
water on public health and potential failure to supply where<br />
natural disasters have the capacity to damage reticulation. The<br />
rural character of the district means immediate assistance may<br />
be limited at such times. We hold limited pipe and fittings stock<br />
at each depot (dormant cash flows) and have built-in generators<br />
or external plugs at some of the main pump stations. Reservoir<br />
back-up when intakes are out of commission is very limited<br />
(except for Hanmer Springs – tank farm). Operators and plant,<br />
located at each depot, are a first point of call through these risk<br />
associated periods identified.<br />
All water networks operate under approved resource consents<br />
to take water. Conditions are set with council utilities staff and<br />
are administered by Canterbury Regional <strong>Council</strong> (Environment<br />
Canterbury - ECan). All intakes are within consented limits at<br />
present. It is assumed that future demand will be able to be<br />
met with the capital projects planned and that the consents for<br />
such will continue to be renewed as necessary and be able to<br />
be complied with.<br />
<strong>Council</strong> Utilities Team undertake emergency repairs to<br />
the main line on the Waipara Water Scheme.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Development contributions are being collected to offset the<br />
negative economic effects on ratepayers for future upgrades of<br />
infrastructure in the <strong>District</strong> that are necessary to cater for<br />
growth. Such upgrades will help to ensure that the present level<br />
of provision of water supply services is kept sustainable.<br />
Shared Services<br />
We have an agreement with Waimakariri <strong>District</strong> <strong>Council</strong> to<br />
supply water to the Ashley and Sefton parts of their district. As<br />
such, approximately 1,650 Waimakariri ratepayers = many more<br />
residents pay the water proportion of rates directly to us.<br />
<strong>Community</strong> Outcomes<br />
1. A desirable and safe place to live<br />
2. A place with essential infrastructure<br />
Goals<br />
Supply water<br />
to meet<br />
consumer<br />
needs<br />
How we will<br />
achieve our Goals<br />
Provide a<br />
continuous ‘ondemand’<br />
supply of<br />
potable water to<br />
urban areas and a<br />
‘restricted’ supply<br />
of water to rural<br />
areas<br />
Undertake<br />
a residents<br />
satisfaction survey<br />
Maintain and<br />
improve water<br />
schemes to comply<br />
with DWSNZ<br />
Water tested for<br />
quality<br />
Goals and Performance Measures<br />
Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+<br />
Major faults to water<br />
supply pipelines<br />
greater than 250mm<br />
diameter that affect<br />
customers are<br />
repaired within 24<br />
hours<br />
Resident satisfaction<br />
will continue to<br />
improve over the<br />
coming years<br />
Install 9 mixed oxidant<br />
treatment plants and<br />
eliminate the need for<br />
permanent boil water<br />
notices<br />
The safety standard<br />
of potable water<br />
improves each year**<br />
No such faults were reported<br />
during the year, but we have a better<br />
system in place now to capture this<br />
information and track the completion<br />
of work via our service request<br />
programme<br />
Resident satisfaction levels have<br />
improved since 2007 and in 2011<br />
it reached 82.5%* satisfaction with<br />
water quality. Satisfaction with<br />
quantity of rural water was 81%.<br />
We have 8 permanent boil water<br />
notices in place.<br />
Water standards are measured weekly<br />
or monthly depending on the number<br />
of consumers for each scheme.***<br />
Our potable water met safety<br />
standards in 85% of the district.<br />
√ √ √ √<br />
*Average score over three questions relating to pressure and flow of water (86%), appearance and taste (79%).<br />
**We have been working to improve the safety standard of potable water in the district each year and last year we reached 85%.<br />
***Each scheme, dependent on its risks at intake (shallow through river gallery would be high risk), has a monitoring regime associated with<br />
its need for sampling and testing for e-coli and total coliforms. The higher the risk, the more tests required for the scheme. High risk - once per<br />
week, low risk (deep intake) - once per month. A failure is an e-coli reading >1, which requires retesting until it achieves three clear results.<br />
√<br />
√<br />
√<br />
√<br />
√<br />
Financial Summary<br />
A financial summary for this activity is shown on the next page.<br />
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Water Supplies - Group Activity Financial Summary<br />
Annual <strong>Plan</strong> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10<br />
2011/<strong>2012</strong> <strong>2012</strong>/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/<strong>2022</strong><br />
Operating Statement<br />
Operating Revenue<br />
<strong>District</strong> Wide Rates 0 0 0 0 271,471 271,471 271,471 271,471 271,471 271,471 271,471<br />
Targeted Rates 3,865,925 4,216,961 4,457,076 4,708,071 4,886,798 5,073,337 5,195,456 5,397,543 5,608,551 5,828,920 6,059,113<br />
Other Income 109,485 221,616 111,380 114,772 118,411 122,310 125,788 129,341 133,434 137,927 142,441<br />
Internal Interest Received 9,777 8,998 6,282 7,175 7,174 18,473 44,853 73,948 103,961 133,439 170,799<br />
Development Contributions 351,193 129,978 135,200 139,651 144,432 158,431 164,570 171,222 178,498 186,590 177,157<br />
Total Operating Revenue 4,336,380 4,577,553 4,709,939 4,969,669 5,428,287 5,644,022 5,802,138 6,043,525 6,295,915 6,558,347 6,820,981<br />
Operating Expenditure<br />
Employee Benefits 592,896 619,190 638,571 658,013 678,880 701,233 721,171 741,542 765,009 790,768 816,650<br />
Direct Operating Expenditure 1,585,555 1,777,070 1,832,692 1,888,492 1,931,934 1,995,544 2,052,283 2,110,255 2,177,037 2,250,340 2,323,994<br />
Internal Interest Paid 385,126 309,960 385,568 372,162 358,493 331,971 355,551 352,948 340,269 322,951 305,297<br />
<strong>Council</strong> Overheads Expenditure 873,937 909,309 938,215 968,821 995,825 1,026,094 1,053,709 1,081,800 1,115,190 1,147,304 1,181,450<br />
Depreciation 850,000 932,086 967,325 959,417 1,063,748 1,055,069 1,058,271 1,160,750 1,147,615 1,137,668 1,315,536<br />
Total Operating Expenditure 4,287,514 4,547,615 4,762,371 4,846,905 5,028,879 5,109,911 5,240,984 5,447,296 5,545,121 5,649,030 5,942,927<br />
Operating Surplus (Deficit) 48,866 29,938 (52,432) 122,763 399,407 534,111 561,154 596,229 750,794 909,318 878,055<br />
Capital Statement<br />
Capital Expenditure<br />
<strong>District</strong> Wide Water 96,602 32,713 33,996 35,127 36,335 50,835 52,770 54,908 57,250 59,865 49,835<br />
<strong>District</strong> Wide Water - Miox Treatment 0 758,000 0 0 0 0 0 0 0 0 0<br />
Amberley Water 14,678 261,500 10,392 279,220 142,170 448,773 108,700 0 0 0 0<br />
Leithfield Beach Water 7,920 0 0 0 0 0 0 0 0 0 0<br />
Ashley Rural Water 137,914 310,000 176,664 182,546 188,819 195,619 203,065 211,293 220,303 230,367 374,194<br />
Culverden Town Water 60,125 5,000 72,432 7,517 48,982 5,754 5,973 8,700 6,480 6,776 9,922<br />
Waiau Town Water 8,659 205,500 520 537 555 575 597 621 648 678 709<br />
Amuri Plains Water 0 4,500 4,676 4,832 4,998 5,178 5,375 5,593 5,832 6,098 6,378<br />
Balmoral Water 15,756 16,000 2,078 3,221 4,443 3,452 2,389 4,972 2,592 2,710 5,670<br />
Waiau Rural Water 25,500 23,500 24,421 17,718 18,327 18,987 19,709 20,508 139,309 22,359 23,387<br />
Cheviot Water 707,957 81,000 143,410 81,609 84,413 87,453 90,782 94,460 98,488 102,988 107,722<br />
Waipara Town Water 2,112 20,000 0 0 0 0 0 0 0 0 0<br />
Hanmer Springs Water 245,657 162,000 25,980 23,624 22,214 31,069 23,890 27,344 25,918 36,588 652,004<br />
Hawarden-Waikari Water 16,520 3,000 0 46,173 4,443 575 3,703 51,332 5,184 678 0<br />
<strong>Hurunui</strong> Rural Water 196,688 209,000 209,918 211,539 218,808 312,415 235,317 244,851 255,292 266,955 279,228<br />
Total Capital Expenditure 1,536,088 2,091,713 704,488 893,662 774,506 1,160,685 752,269 724,583 817,295 736,060 1,509,048<br />
Funds Required<br />
Operating Deficit 0 0 52,432 0 0 0 0 0 0 0 0<br />
Capital Expenditure 1,536,088 2,091,713 704,488 893,662 774,506 1,160,685 752,269 724,583 817,295 736,060 1,509,048<br />
Increase to Reserve Funds 0 47,261 61,613 86,502 371,630 1,009,549 1,119,895 1,209,217 1,270,884 1,439,669 1,388,383<br />
Repayment of Internal Loans from Operating Income 898,866 914,763 853,280 995,678 1,091,525 579,631 499,530 547,762 627,525 607,317 805,208<br />
2,434,954 3,053,737 1,671,813 1,975,842 2,237,662 2,749,865 2,371,695 2,481,561 2,715,705 2,783,046 3,702,639<br />
Funded by<br />
Operating Surplus 48,866 29,938 0 122,763 399,407 534,111 561,154 596,229 750,794 909,318 878,055<br />
Non Cash Expenditure - Depreciation 850,000 932,086 967,325 959,417 1,063,748 1,055,069 1,058,271 1,160,750 1,147,615 1,137,668 1,315,536<br />
Capital Expenditure funded from existing Reserve Funds 0 124,855 36,074 85,059 45,776 251,057 282,233 343,634 418,531 353,244 686,544<br />
Capital Expenditure funded through Internal Loans 1,536,088 1,966,858 668,413 808,604 728,730 909,628 470,036 380,949 398,765 382,816 822,504<br />
2,434,954 3,053,737 1,671,813 1,975,842 2,237,662 2,749,865 2,371,695 2,481,561 2,715,705 2,783,046 3,702,639<br />
H:\<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Workings\<strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> LTP Budgets <strong>2012</strong>-<strong>2022</strong> - Post Submissions.xls 31/05/<strong>2012</strong> 9:34 a.m.<br />
78
Sewerage<br />
Overview<br />
Sewerage covers the following activity described below:<br />
Activity 1: Sewerage (township and rural sewer schemes)<br />
Our Aim<br />
To provide proficient, cost effective sewage disposal schemes<br />
relevant to the needs of the community.<br />
Why is the <strong>Council</strong> Involved?<br />
<strong>Council</strong> provides a sewerage service to support the development<br />
of the <strong>District</strong> and to protect the physical environment and<br />
health of the community through good sanitary practice. We<br />
try to ensure that adverse environmental impacts are avoided,<br />
minimised or eased.<br />
<strong>Community</strong> Outcomes<br />
The Water Supply activity described in this section, primarily<br />
contributes to three of our community outcomes:<br />
1. A desirable and safe place to live:<br />
• We have attractive well designed townships<br />
• Communities have access to adequate health and<br />
emergency services and systems and resources<br />
are available to meet civil defence emergencies<br />
• Risks to public health are identified and<br />
appropriately managed<br />
2. A place that demonstrates environmental responsibility:<br />
• We protect our environment while preserving<br />
people’s property rights<br />
• We minimise solid waste to the fullest extent,<br />
and manage the rest in a sustainable way<br />
3. A place with essential infrastructure:<br />
• We have a strong emphasis on service delivery<br />
across all infrastructure including roading, water<br />
(for drinking and development), waste water,<br />
stormwater and solid waste<br />
Major Projects <strong>Plan</strong>ned<br />
Project<br />
Amberley pipe upgrade $474,000<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15<br />
Amberley pond desludging $96,642<br />
Amberley wastewater plant<br />
renewals<br />
$12,240 $10,780 $78,256<br />
Cheviot wave board correction $30,882<br />
Greta Valley wastewater plant<br />
renewals<br />
Motunau Beach wastewater<br />
plant renewals<br />
Hanmer Springs pond<br />
desludging<br />
Hanmer Springs disposal to<br />
land option<br />
Hanmer Springs treatment<br />
pond aeration improvements<br />
$17,000 $18,255<br />
$35,000<br />
$220,000<br />
Significant Negative Effects<br />
$93,528<br />
$1,288,560<br />
There are significant negative effects for environmental,<br />
economic, cultural and social wellbeing from this activity. The<br />
disposal of treated effluent to land and waterways carries<br />
physical and health risks, although these are minimised by<br />
ensuring that the reticulation and disposal systems comply<br />
with the appropriate resource consents. All facilities are based<br />
around pond treatment, which means any overflow or failure<br />
at these locations will involve release of treated or partially<br />
treated material. The lack of reticulated sewerage systems is<br />
affecting the environmental and social wellbeing of some local<br />
communities. However, the cost of installing such systems at<br />
this stage, have an even bigger negative effect on the economic<br />
wellbeing of these communities.<br />
Emergency Management<br />
In an emergency, particularly a civil defence emergency, we will<br />
continue to deliver services as long as it is safe and practical<br />
to continue to do so. Sewerage issues will receive priority in<br />
the event of a civil emergency and every effort will be made to<br />
effectively and safely dispose of sewerage to minimise health<br />
risks.<br />
Financial Summary<br />
A financial summary for this group of activities is shown at the<br />
end of the Sewerage activity.<br />
79
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Activity 1: Sewerage<br />
Overview<br />
The Sewerage activity includes the various functions of the<br />
seven sewerage schemes in the <strong>District</strong>.<br />
Current Situation<br />
The district operates 7 separate sewerage schemes, serving all<br />
but 4 urban localities. All use oxidation ponds for treatment of<br />
sewage and 14 pump stations are operated within the pipework.<br />
Table 1, sets out the number of connections each sewerage<br />
scheme services.<br />
1. The current situation for each of the sewerage schemes<br />
is outlined below:<br />
2. Amberley: Reticulation was installed between 1974<br />
and 1977 with a staged multi-pond treatment and land<br />
disposal onto pasture (free draining sandy soil) adjacent<br />
to the coast.<br />
3. Cheviot: Reticulation and aeration tank was installed in<br />
1964, upgraded to single oxidation pond plus borderdyke<br />
disposal in 1982 and further improved in 1999/00<br />
to a multi-pond facility with spray irrigation to pasture<br />
and overland flow polishing prior to discharge to<br />
adjacent waterway when the irrigation area is saturated.<br />
4. Greta Valley: Reticulation and treatment/disposal<br />
facility was installed in 1979 for a <strong>Council</strong> funded<br />
subdivision with one pond treatment and disposal to<br />
land (travelling irrigator) or to nearby waterway when<br />
the soil conditions are too wet for irrigating.<br />
5. Motunau Beach: Reticulation, treatment and disposal<br />
area was installed in 1987 in response to meet<br />
community and public health expectations, using a dual<br />
pond for treatment (with aeration) and land based<br />
discharge onto pasture (private title) with border dyke<br />
application.<br />
6. Hanmer Springs: Reticulation was installed 1971 with<br />
dual pond treatment and discharge to the Chatterton<br />
River, replacing the older reticulation and settling tank<br />
(installed in 1949 in the hospital property) which was<br />
not meeting local expectations. A further upgrade<br />
including additional ponds and aerators was completed<br />
in 2007/08.<br />
7. Hawarden: Reticulation and treatment/disposal facility<br />
was installed in 1966 with twin ponds and overflow to<br />
an open drain.<br />
8. Waikari: Reticulation and treatment/disposal facility<br />
was installed in 1967 with twin ponds and overflow to<br />
the Waikari River with discharge altered to land disposal<br />
via spray in 1996 on an adjacent farmland. It has been<br />
further upgraded in 2005 with an additional pond and<br />
an increased effluent disposal area.<br />
Recently, we investigated the feasibility of two new sewerage<br />
schemes for Culverden and Waipara. Public feedback on the<br />
results, and particularly the cost of the building the schemes was<br />
not favourable. There clearly is the sentiment “don’t fix what’s<br />
not broken”,therefore, reticulated schemes for Culverden and<br />
Waipara are not planned at this stage. Should there be any<br />
changes in legislation or adverse effects to groundwater are<br />
noted (in terms of effluent contamination), then this democratic<br />
approach will be revisited for alternative consideration.<br />
The levels of service for our sewerage schemes can be found<br />
in the appendices section of this plan. These levels of service<br />
are monitored internally and will not be reported in the Annual<br />
Report.<br />
Table 1: Sewerage Connections<br />
Scheme<br />
Active<br />
Connections<br />
Undeveloped<br />
Sites (half<br />
connections)<br />
Pan Connection<br />
Equivalents<br />
(includes multiple<br />
pans)<br />
Amberley 1,042 106 1,350<br />
Leithfield 172 25 203<br />
Cheviot 208 8 328<br />
Greta Valley 28 12 59<br />
Motunau Beach 119 18 137<br />
Hanmer Springs<br />
1114 293 1,923<br />
Hawarden 120 11 169<br />
<strong>Plan</strong>s for the future<br />
New pipelines in Amberley are to be built. <strong>Plan</strong>t renewals will<br />
be undertaken as identified in our Activity Management <strong>Plan</strong><br />
for wastewater.<br />
We have an ‘Assessment of Water and Sanitary Services”. This<br />
assessment will be reviewed from time to time during the life<br />
of this plan and is due for its next review in the 2013/14 year.<br />
Works associated with current resource consent requirements<br />
for Hanmer Springs and Cheviot wastewater treatment plants<br />
requires us to look towards disposal to land as alternative<br />
adopted approaches to disposal to waterways (by 2014/15).<br />
Hanmer Springs wastewater treatment plant ponds exhibited<br />
seasonally low dissolved oxygen (DO) levels, which could result<br />
in odour problems to nearby residential properties (dependent<br />
upon the prevailing wind at the time). Aerator upgrades will be<br />
required to eliminate this potential problem and ensure that<br />
council remains within the tolerated minimum acceptable values<br />
for DO.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Operational Costs:<br />
Funding<br />
• Operation and loan repayments are funded by way of a<br />
wastewater Uniform Annual Charge:<br />
• on each connection<br />
• for connected commercial properties a charge of<br />
1 for the first pan<br />
• ½ charges on the second pan<br />
• ¼ charges on the third and subsequent pans<br />
• Serviceable properties within the urban sewerage<br />
scheme will be charged ½ the Uniform Annual Charge.<br />
• <strong>Council</strong> may allow capital contributions to be made at<br />
its discretion in place of a loan Uniform Annual Charge.<br />
Capital Costs:<br />
• Significant <strong>Council</strong> capital expenditure are funded by a<br />
loan as per the <strong>Council</strong>’s Internal Financing Policy<br />
• If loans are not raised, then it will be from targeted<br />
rates<br />
• <strong>Council</strong> may loan/fund sewerage main extensions with<br />
the loan repayments met by those properties directly<br />
benefiting where the majority of the property owners<br />
agree to the extension<br />
• If any of the Capital Expenditure caters for future<br />
growth of the scheme, then that portion of the<br />
expenditure that relates to growth may be funded<br />
from future users via Development Contributions and<br />
Financial Contributions<br />
• Landowners with new connections will pay the cost of<br />
connecting to the nearest main plus, if a new subdivide,<br />
putting in the sub-main<br />
• Property owners wanting new connections will pay<br />
those costs necessary for the connection and any levies<br />
as specified in the Development Contributions policy<br />
• <strong>Council</strong> should pay any costs of scheme requirements<br />
that are over and above those necessary for the<br />
connection and the direct costs<br />
<strong>Council</strong> Owned Assets<br />
Sewerage schemes in:<br />
• Amberley<br />
• Cheviot<br />
• Greta Valley<br />
• Motunau Beach<br />
• Hanmer Springs<br />
• Hawarden<br />
• Waikari<br />
Table 2 shows the sewerage network valuations as at 30 June 2011 which<br />
includes all pipe, point and plant assets.<br />
Table 2: Sewerage Network Valuations<br />
Network Replacement Cost Depreciation Values<br />
Amberley $7,505,640.48 $4,689,448.33<br />
Cheviot $1,593,516.79 $644,791.07<br />
Greta Valley $465,836.98 $226,644.78<br />
Hanmer Springs $7,979,250.47 $5,633,596.60<br />
Hawarden $868,863.41 $295,961.48<br />
Motunau Beach $869,115.26 $517,905.72<br />
Waikari $1,755,490.76 $737,717.77<br />
Maintenance and Operating Implications<br />
We intend to retain ownership of all wastewater assets on<br />
behalf of the communities they serve. Asset management, basic<br />
design work, contract documentation, tendering, record keeping,<br />
operation and routine repairs and maintenance is to be carried<br />
out by our staff.<br />
Larger budget capital works may be let as contracts. Decisions<br />
affecting wastewater networks will be made in consultation<br />
with ward committees and Residents Associations.<br />
Larger repairs and emergency works may also be contracted to<br />
preferred or available contractors. Preference will be given to<br />
locally based contractors for these activities where their prices<br />
are competitive. External consultants will be engaged only for<br />
specialised tasks, where we do not have the skills, or another<br />
opinion is required.<br />
Assumptions and Risks<br />
Effort is on-going to establish the useful lifespan of underground<br />
and fixed wastewater assets. Most of the reticulation is AC pipe<br />
and is affected by both sewage and soil conditions. Much of<br />
the newer reticulation is PVC. Expected life for manholes and<br />
PVC is 80 years and AC, 50 years. External stresses determine<br />
useful life of assets, being soil conditions, quality of installation,<br />
additional loadings, and maintenance. The inability to pin-point<br />
these means approximate values are applied. The inherent<br />
variations in-situ makes it difficult to accurately formulate<br />
renewals priority programme, but will be refined as additional<br />
information is obtained.<br />
All wastewater networks operate under current resource<br />
consents for all emissions and discharges. These conditions are<br />
generally agreed between us and Canterbury Regional <strong>Council</strong>.<br />
Most of the consent terms will not expire until 2018 – 2030.<br />
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Goals and Performance Measures<br />
<strong>Community</strong> Outcomes<br />
1. A desirable and safe place to live<br />
2. A place that demonstrates environmental responsibility<br />
3. A place with essential infrastructure<br />
Goals<br />
Protect public health through<br />
ensuring good sanitary<br />
standards<br />
How we will achieve our<br />
Goals<br />
Maintain sewerage disposal<br />
and treatment facilities in<br />
most urban areas<br />
Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+<br />
All major and significant<br />
non-compliances for our<br />
sewerage disposal resource<br />
consents reduce until we<br />
have 0% non-compliance<br />
All sewer breaks are<br />
repaired within 12 hours of<br />
notification<br />
We have 14 resource<br />
consents relating to<br />
wastewater, which have 186<br />
conditions to comply with.<br />
We had 2.2% major and<br />
significant non-compliance to<br />
date this year*<br />
No major breaks occurred<br />
and minor breaks were<br />
repaired within 12 hours of<br />
receiving the notification<br />
2% 1% 0% 0%<br />
√ √ √ √<br />
* The non-compliance issues have related to matters such as late reports and failure to complete log books. These were initially minor<br />
noncompliance matters but accelerated to major and significant non-compliance as they were not remedied within the allotted timeframes<br />
set by the Regional <strong>Council</strong>.<br />
Financial Summary<br />
A financial summary for this activity is shown on the next page.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Sewerage - Group Activity Financial Summary<br />
Annual <strong>Plan</strong> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10<br />
2011/<strong>2012</strong> <strong>2012</strong>/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/<strong>2022</strong><br />
Operating Statement<br />
Operating Revenue<br />
Targeted Rates 588,808 618,127 683,846 758,360 842,193 937,618 1,046,410 1,170,631 1,312,674 1,475,324 1,661,819<br />
Other Income 317 320 330 340 351 362 373 383 395 409 422<br />
Internal Interest Received 5,504 2,158 322 634 788 1,317 0 0 0 0 0<br />
Development Contributions 175,529 70,086 72,788 75,187 77,757 104,721 108,678 113,076 117,927 123,282 109,270<br />
Total Operating Revenue 770,158 690,691 757,286 834,522 921,089 1,044,019 1,155,461 1,284,090 1,430,996 1,599,015 1,771,511<br />
Operating Expenditure<br />
Employee Benefits 50,270 52,454 54,096 55,743 57,511 59,404 61,093 62,819 64,807 66,989 69,182<br />
Direct Operating Expenditure 168,439 236,920 249,492 251,775 254,277 256,987 270,117 271,759 286,537 289,800 305,879<br />
Internal Interest Paid 259,221 295,001 360,119 374,948 487,096 502,193 511,283 533,576 524,281 501,287 465,873<br />
<strong>Council</strong> Overheads Expenditure 126,363 134,154 138,419 143,502 146,961 151,478 155,588 159,770 165,414 169,566 174,678<br />
Depreciation 320,000 366,060 373,326 368,475 408,244 415,129 411,244 456,681 449,510 441,295 491,252<br />
Total Operating Expenditure 924,293 1,084,588 1,175,452 1,194,443 1,354,089 1,385,191 1,409,325 1,484,606 1,490,549 1,468,937 1,506,864<br />
Operating Surplus (Deficit) (154,135) (393,897) (418,166) (359,922) (433,000) (341,172) (253,864) (200,516) (59,553) 130,078 264,647<br />
Capital Statement<br />
Capital Expenditure<br />
<strong>District</strong> Wide Sewer 96,602 32,713 33,996 35,127 36,335 50,835 52,770 54,908 57,250 59,865 49,835<br />
Amberley Sewer 0 486,240 10,780 174,898 20,948 12,384 243,678 7,961 0 0 0<br />
Cheviot Sewer 10,000 40,046 0 10,994 77,749 0 0 36,498 0 0 0<br />
Greta Valley Sewer 2,684 19,000 2,078 20,402 2,221 2,301 2,389 2,486 2,592 2,710 2,835<br />
Motunau Beach Sewer 0 35,000 0 0 12,218 12,658 119,450 0 0 0 0<br />
Hanmer Springs Sewer 31,840 235,000 103,920 1,304,667 11,107 17,261 11,945 18,644 12,959 20,327 14,174<br />
Hawarden Sewer 8,000 0 0 4,939 0 141,536 0 0 0 0 0<br />
Waikari Sewer 0 71,000 0 0 7,775 0 34,641 7,457 0 0 0<br />
Total Capital Expenditure 149,126 918,999 150,774 1,551,028 168,353 236,975 464,873 127,953 72,801 82,902 66,844<br />
Funds Required<br />
Operating Deficit 154,135 393,897 418,166 359,922 433,000 341,172 253,864 200,516 59,553 0 0<br />
Capital Expenditure 149,126 918,999 150,774 1,551,028 168,353 236,975 464,873 127,953 72,801 82,902 66,844<br />
Repayment of Internal Loans from Operating Income 165,865 760 53 8,553 5 73,957 157,380 256,165 389,957 571,373 755,899<br />
469,126 1,313,656 568,993 1,919,503 601,358 652,104 876,117 584,634 522,311 654,274 822,742<br />
Funded by<br />
Operating Surplus 0 0 0 0 0 0 0 0 0 130,078 264,647<br />
Non Cash Expenditure - Depreciation 320,000 366,060 373,326 368,475 408,244 415,129 411,244 456,681 449,510 441,295 491,252<br />
Transfer from Special Funds 0 28,597 44,893 0 24,761 0 0 0 0 0 0<br />
Capital Expenditure funded through Internal Loans 149,126 918,999 150,774 1,551,028 168,353 236,975 464,873 127,953 72,801 82,902 66,844<br />
469,126 1,313,656 568,993 1,919,503 601,358 652,104 876,117 584,634 522,311 654,274 822,742<br />
H:\<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Workings\<strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> LTP Budgets <strong>2012</strong>-<strong>2022</strong> - Post Submissions.xls 31/05/<strong>2012</strong> 9:34 a.m.<br />
83
www.hurunui.govt.nz<br />
Roads and Footpaths<br />
Overview<br />
Roads and Footpaths covers the following activity described<br />
below:<br />
Activity 1: Roads (roads, bridges, footpaths, street lighting, and<br />
road safety)<br />
Our Aim<br />
To provide a transport network that is safe and accessible for all<br />
people throughout the <strong>District</strong>.<br />
Why is the <strong>Council</strong> Involved?<br />
We undertake the professional and technical work involved in<br />
providing the on-going management of the <strong>District</strong>’s roading<br />
network. Partial funding for road construction projects and<br />
on-going maintenance requirements is received from the New<br />
Zealand Transport Agency (NZTA). Public ownership of the<br />
roads and footpaths ensures appropriate property access and<br />
unimpeded rite of passage for the freedom of travel throughout<br />
the area.<br />
<strong>Community</strong> Outcomes<br />
The Roads and Footpaths activity described in this section,<br />
primarily contributes to two of our community outcomes:<br />
1. A desirable and safe place to live:<br />
• We have attractive well designed townships<br />
• Communities have access to adequate health and<br />
emergency services and systems and resources are<br />
available to meet civil defence emergencies<br />
• Risks to public health are identified and appropriately<br />
managed<br />
Major Projects <strong>Plan</strong>ned<br />
Project<br />
Bridge maintenance<br />
and repairs<br />
Sealed Road<br />
resurfacing<br />
Minor improvement<br />
programme<br />
Pavement<br />
rehabilitation<br />
programme<br />
Traffic services<br />
renewals - street<br />
lighting<br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15 2015+<br />
$269,106 $279,900 $285,858 $299,435<br />
$1,000,371 $1,040,519 $1,062,647 $1,113,118<br />
$270,999 $281,874 $287,869 $301,541<br />
$580,215 $603,501 $616,336 $645,608<br />
$207,703 $216,039 $220,633 $231,112<br />
Significant Negative Effects<br />
<strong>Hurunui</strong>’s land transport network affords people a high degree<br />
of mobility, but this, and other economic and social benefits, has<br />
some significant environmental costs. High volumes of traffic<br />
produce noise, air, and light pollution. Dust from unsealed roads<br />
causes a nuisance on neighbouring properties and impacts on<br />
road safety due to decreased visibility. At present our transport<br />
infrastructure needs outweigh the negative effects on our<br />
environmental wellbeing and are sustainable at least for the<br />
period of this plan. Alternatives for the future will need to be<br />
sought if this balance shifts.<br />
Emergency Management<br />
In an emergency, particularly a civil defence emergency, we will<br />
continue to deliver services as long as it is safe and practical to<br />
continue to do so. The roading network will receive priority in<br />
the event of a civil emergency and every effort will be made to<br />
make the roads clear and safe to drive on.<br />
Financial Summary<br />
A financial summary for this group of activities is shown at the<br />
end of the Roads and Footpaths activity.<br />
2. A place with essential infrastructure:<br />
• We have a strong emphasis on service delivery across<br />
all infrastructure including roading, water (for drinking<br />
and development), waste water, stormwater and solid<br />
waste<br />
Princes Street, Waikari - Road & <strong>Community</strong> Improvement Programme<br />
84
Activity 1: Roads and Footpaths<br />
Overview<br />
The Roads and Footpaths activity includes the various functions<br />
of street lighting, bridges and road safety, as well as roads and<br />
footpaths.<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
We are an active member of the ‘<strong>Hurunui</strong> <strong>District</strong> Road Safety<br />
Coordinating Committee’. The committee has a Road Safety<br />
Strategy which provides a framework for a road safety policy<br />
and initiatives in our district, together with practical, long term<br />
community solutions.<br />
Current Situation<br />
The Roading Network activity deals with the day-to-day<br />
operations, maintenance and improvements of road pavement<br />
(renewals, improvements and upgrades), signs, street lighting,<br />
parking, cleaning, bridge maintenance, corridor management,<br />
overweight and oversize permits, licenses to occupy and<br />
various road safety activities. These initiatives are supported<br />
through policy development and forward planning, including<br />
linking in with transport and land use planning and road safety<br />
coordination.<br />
Our roads are maintained and built using subsidy funds from<br />
New Zealand Transport Agency (NZTA) and moneys collected<br />
through local rates. This excludes state highways which are<br />
funded and maintained solely through NZTA. Three years ago,<br />
central government deliberately cut maintenance funding to<br />
all district councils, as it decided to focus on capital works to<br />
national state highways (Roads of National Significance) and the<br />
Auckland roading network needs as priorities. Our funding was<br />
cut by $600,000 per annum on average, for the full funding cycle<br />
2009/<strong>2012</strong>.<br />
Our Asset Management <strong>Plan</strong> (AMP) for roading is an important<br />
plan when it comes to planning and deciding on upgrades,<br />
maintenance and new work. An ongoing challenge is to match<br />
the level of service provided by the roading asset with the<br />
expectations of our community.<br />
The district’s roading network comprises of approximately<br />
1455 kilometres of local roads (excluding state highways), 278<br />
bridges, 94,204 square metres of footpaths, 60kilometres of<br />
kerb and channeling, 886 streetlights, 4622 traffic signs and 43<br />
kilometres of culvert pipes. Each road in the roading network<br />
has been categorized into a roading hierarchy (in the <strong>District</strong><br />
<strong>Plan</strong>) based on the road’s purpose and level of use. Of the 1455<br />
km local roads, 1380 kilometres are rural and 75 kilometres are<br />
urban. 602 kilometres of the road network is sealed, with 853<br />
kilometres remaining unsealed to date.<br />
Current desirable levels of service have been defined against<br />
urban and rural road hierarchy categories. These are 6<br />
carriageway service indicators (Quality, Safety, Environment,<br />
Efficiency, Comfort/Convenience and capacity and 5 associated<br />
roading asset service indicators (kerb and channel; bridges;<br />
street lighting; road marking; and signs). The road hierarchy<br />
established is designed to meet the expected levels of service<br />
(as per the AMP), although incomplete inventory data for some<br />
assets limits a full assessment. The levels of service defined in<br />
the AMP inform the performance measures set out in this plan.<br />
<strong>Plan</strong>s for the future<br />
The roading network uses a significant share of our annual<br />
expenditure (almost 25%), and it is planned that this will continue<br />
on a long term basis. Whereas the AMP provides important<br />
information for the work programme, we also routinely monitor,<br />
audit and assess, using traffic counts on a rotational basis to<br />
collect data about trends. <strong>Hurunui</strong> is a large district with a small<br />
population (rating base), therefore it is crucial that priority is<br />
given to roads and bridges that serve important functions, such<br />
as road safety, and have high traffic use.<br />
NZTA have released indicative allocation budget figures for<br />
road maintenance through <strong>2012</strong>-2015, which are 5% less than<br />
our original Regional Land Transport Programme submission<br />
requests. Although these budget amounts are 3.4% more than<br />
the 2009-<strong>2012</strong> budget allocations, they equate to $226,000<br />
less per annum across the three year programme. Coming to<br />
grips with a total $1.6 million reduced budget is going to be<br />
major challenge to both assets and operations alike. Our Asset<br />
Management <strong>Plan</strong>s (AMPs) tell us when, how and why we need<br />
to do work on each of our roads to ensure maximum wholeof-life<br />
for this asset (maximum return on investment approach);<br />
but we do not have the required subsidised income to maintain<br />
our roading network to the level our AMPs stipulate. We<br />
will continue to retain our funding as previously indicated as<br />
unsubsidised work and the rate impact for roading will continue<br />
as previously stated in the plan. We have made the assumption<br />
that the reduced level of NZTA funding will continue through<br />
the life of the LTP.<br />
We have done our best to get greater efficiencies within our<br />
current road maintenance contracts, without affecting the<br />
current levels of service (LoS). At the end of this period, our<br />
maintenance contracts will be renewed with cost escalations<br />
included. NZTA have declared that they will not pick up contract<br />
price escalations through their road maintenance subsidy<br />
scheme. This implies that the ratepayer will have to cover this<br />
shortfall otherwise less and less will be physically spent on<br />
maintenance outputs resulting in loss of road asset life and<br />
potentially putting road’s lives at risk driving on a compromised<br />
infrastructure. Thus, NZTA and Central Government are<br />
imposing more and more responsibility upon the local ratepayer<br />
to fund their roading infrastructure’s needs, unless the Minister<br />
of Transport is lobbied by all affected stakeholders to reverse<br />
this tactic and strategy.<br />
The financial savings effected through the last road maintenance<br />
tender round will sustain the infrastructure for the following<br />
year (<strong>2012</strong>-2013), but after that, we will have to seriously<br />
consider what elements of the planned works will have to be<br />
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deferred to divert these funds back to essential maintenance<br />
works.<br />
So far, we have done much better than the national averages in all<br />
areas of our road performance assessment measures (roughness,<br />
smoothness and road integrity). We expect to remain above<br />
national average in these areas throughout the ten year period<br />
covered by this plan, given that all Road Controlling Authorities<br />
have been affected financially and more importantly, that we are<br />
not watching and waiting, but rather taking proactive steps to<br />
mitigate loss of asset life through rational and judicious decision<br />
making. We will continue to monitor our key performance<br />
indicators for road condition to establish if there is any loss<br />
of predicted asset life and the extent of any decline in levels<br />
of service. Over a long period of time, if our funding continues<br />
to be significantly less that our AMPs indicate, levels of service<br />
will gradually decrease. Increasing rates for roads in the future<br />
may be the only way to maintain current levels of service, or we<br />
could accept that a reduced level of service is necessary and<br />
decide what that will be.<br />
This is a problem we are not facing alone. Nationally, there are<br />
investigations into how we establish the point of critical failure<br />
for our roads so that we are able to proactively intervene. At<br />
this stage, we do not have the answers, but expect that this will<br />
continue to be a key issue when we review our long term plan<br />
again in three years. By then, with continued monitoring and<br />
exploring the how we can continue to do more for less, as well<br />
as on-going national discussion on this topic, we will have more<br />
information and options for consideration going forward.<br />
We have been undertaking only minor seal extensions over<br />
the past few years. The last major work was carried out on<br />
Woodbank Road, completed in 2010. We plan to take advantage<br />
of any external funds available or funding opportunities through<br />
the Road Seal Extensions Policy to reduce the length of unsealed<br />
roads in the district. Other processes for dust suppression<br />
will continue to be investigated. Bridge maintenance and<br />
replacements are also a priority focus during the next several<br />
years.<br />
Many timber bridges built after World War II are now nearly<br />
at the end of their economic lives, and will have to be replaced<br />
during the life of this plan. We have been working through a<br />
bridge replacement plan according to the priorities established<br />
after we contracted OPUS to investigate the state of our<br />
bridges in 2009. To date priority bridges which include Lyndon<br />
No.3 Bridge (Lyndon Road), MacFarlanes Bridge (Conway Flat<br />
Road), Humpback Bridge (Gore Bay Road), Williams Bridge<br />
(Glenmark Drive), Coops Bridge (Parkview Road), Gola Peaks<br />
Bridge (Virginia Road), Charwell No. 1 Bridge (Stag and Spey<br />
Road), Thompsons Bridge (Glenmark Drive) and Jamiesons<br />
Bridge (Megowans Road) have been completed.<br />
Bridges targeted for the <strong>2012</strong>/2015 period include Broxton<br />
Bridge (Broxton Road), Mandamus Bridge (Tekoa Road), Lower<br />
<strong>Hurunui</strong> Swing Bridge (Blythe Road), Okuku Pass Bridge<br />
(Okuku Pass Road), Uphams Bridge (Conway Flat Road), Mid<br />
Waipara Bridge (Greys Road), Blythe No.1 Culvert (Blythe<br />
Road), Crossleys Bridge (Leader Road East), Brophys Bridge<br />
(Brophys Road), Armco Culvert (Ngaroma Road), Jacks Creek<br />
(Lake Sumner Road). Because of the significant costs associated<br />
with bridge maintenance and improvements, it may be a better<br />
solution to replace bridges with fords instead, subject to location<br />
and traffic counts. This will only be considered where there is<br />
low traffic volume and few people affected (sometimes there<br />
is only one household). Consultation with relevant people and<br />
sectors of the community will be done before any decisions<br />
such as this are made. A budget provision has been made for<br />
the bridge repairs.<br />
We have been working through a programme of installing School<br />
Active Warning Signs where schools are positioned on busy<br />
roads. Warning signs have been installed for Amberley, Cheviot,<br />
Amuri, Leithfield, Rotherham, Broomfield, Waiau, Waikari<br />
and Greta Valley Schools. Further signs are programmed for<br />
<strong>Hurunui</strong> College, Hanmer Springs, Waipara and Omihi during<br />
<strong>2012</strong>/2015, at an approximately cost of $7,500 per sign.<br />
Roading challenges coming up include:<br />
• Binding up of metal material to unsealed roads so that they<br />
are sustainable and durable<br />
• Blending of metals to improve structural strength and<br />
enhanced mosaic aggregate interlocking<br />
• Improved open drains for land drainage requirements<br />
• Deciding on effective sealed road widths for improved traffic<br />
conveyance, and ways to reduce maintenance expenditure<br />
Funding Model<br />
Roads<br />
Operational Costs:<br />
• <strong>Council</strong>’s contribution is 100% <strong>District</strong> Rate for operations,<br />
roads and bridges known as the ‘Roading Rate’<br />
Capital Costs:<br />
• Capital improvements above $100,000 may be funded<br />
by reserves or loans pursuant to the <strong>Council</strong>’s Internal<br />
Financing Policy<br />
• Other Capital Expenditure to be funded as operational<br />
• If a community wants new sealing work done that does not<br />
qualify for a government subsidy, the Road Seal Extension<br />
policy allows for ratepayers to meet 50% of the costs,<br />
with the <strong>Council</strong> contributing the remaining 50% from the<br />
General Rate<br />
• If any of the Capital Expenditure caters for future growth,<br />
then that portion of the expenditure that relates to growth<br />
may be funded from future users via Financial Contributions<br />
Footpaths<br />
Operational Costs:<br />
• Township maintenance 100% local amenity rate on ward or<br />
community rating area<br />
Capital Costs:<br />
• Township maintenance 100% local amenity rate on ward or<br />
community rating area<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Maintenance and Operating<br />
The New Zealand Transport Agency (NZTA) subsidizes up to<br />
60% (confirmed by NZTA as fixed for <strong>Hurunui</strong> from July <strong>2012</strong><br />
to June 2015) of improvement projects such as seal extensions<br />
and minor improvement works that meet its funding criteria<br />
and requirements. A 50% financial assistance rate (FAR) is<br />
confirmed for ongoing maintenance requirements to ensure<br />
whole-of-life objectives of the asset are competently met.<br />
As a national core driver from central government, all road<br />
controlling authorities are being tasked to manage their roading<br />
assets with less and less subsidy funding. This means every<br />
authority must revisit the way they have done business in the<br />
past and look hard at improving output efficiencies, productivity,<br />
effectiveness of asset management decisions and resultant works<br />
programmes, value-for-money and best for asset outcomes. The<br />
reality is that councils are tasked to do “more (outputs) with<br />
less (money)” and ensure that the assets meet their fit-forpurpose<br />
objectives, whilst being affordable and pragmatic. This<br />
strategic approach, across the country (applicable to both local<br />
and national highways), has resulted in essential works (need<br />
to have) being completed, with less latitude for lavish (nice to<br />
have) outcomes. We are concerned about this reduced funding<br />
approach on a continued long-term basis, given that this has the<br />
latitude to erode the asset life of the infrastructure, resulting<br />
in expensive renewal works that could have been mitigated<br />
by prompt and timeously co-ordinated maintenance works,<br />
given the right level of subsidy funding. This situation is being<br />
meticulously monitored through asset condition ratings, visual<br />
inspections and customer service requests to ensure that the<br />
asset continues to meet the levels of service demanded by the<br />
ratepayers of this district for transportation requirements.<br />
Consideration is required on the ongoing ownership and<br />
management of very low trafficked roads and bridges currently<br />
justified on a community and social basis. In consultation with<br />
the Police and NZTA, we maintain and annually review a road<br />
safety strategy for the district, which is then implemented<br />
through an action plan.<br />
Assumptions and Risks<br />
Increases in population, vehicle ownership, industrial growth and<br />
development in both the primary and value-added sectors, as<br />
well as the popularity of our district as a tourist destination, all<br />
have an impact on the use of our roads and footpaths.<br />
Increasing traffic volumes are most significantly expected<br />
to impact on the district’s arterial road network and aging<br />
bridge structures. Project costs are based on current best<br />
practice, industry standards and local knowledge of materials,<br />
construction costs and geotechnical profiling.<br />
Strategic planning, scoping of works, initial investigations,<br />
preliminary designs, cost estimates and forward work plans for<br />
the roading network have been based on the assumption that<br />
<strong>Council</strong> will qualify for subsidy funding from NZTA for certain<br />
road-related capital, improvement and maintenance projects.<br />
Inflation has not been allowed for in NZTA’s funding assistance<br />
into the future and councils have been tasked to manage the<br />
cost impact. If we maintain the current rates take for road<br />
maintenance and not provide for the effects of escalation, then<br />
less money will be spent on physical maintenance works thus<br />
leaving the road asset at critical risk of failure and loss of asset<br />
life. Compound this with the effects of Peak Oil (and the resultant<br />
bitumen cost increases) and drainage and environmental<br />
impacts, then the situation becomes more bleak. We either put<br />
up our annual rates to provide more local unsubsidised funds to<br />
keep our roads in their current condition, or we can accept that<br />
there will be a deterioration in our road conditions (structural,<br />
appearance and driving quality) from 2013/2014 onwards.<br />
The level of cost that has been allowed for in the <strong>Long</strong> <strong>Term</strong><br />
<strong>Plan</strong> falls significantly short of what was provided for in the<br />
Asset Management <strong>Plan</strong> (AMP) which was developed prior to<br />
the change in NZTA funding. The difference over the next ten<br />
years between what was scheduled in the AMP and what NZTA<br />
have provided, less than what was requested in the Regional<br />
Land Transport Programme (RLTP), the shortfall is now closer<br />
to $18 million, which would need to be covered by rates.<br />
Our asset register was been prepared based on the best available<br />
asset management information. Some work still needs to be done<br />
to ascertain the exact relevant details of all of the roading assets,<br />
and to be able to accurately ascertain their current condition,<br />
current serviceability and future useful life, and from there to<br />
accurately predict the future needs and requirements to ensure<br />
continued sustainability and safe condition. Valuations shown for<br />
each network asset type are as at <strong>2012</strong> and are prepared using<br />
our historical cost estimates and current contract prices. These<br />
are approximate replacement values and may not reflect market<br />
values.<br />
We have a comprehensive Risk Management Strategy for the<br />
roading assets which identifies risks such as land use change,<br />
seasonal impacts on roading requirements, fluctuating oil prices<br />
and quality supply and the effect to the bitumen and petroleum<br />
industry, peak oil, climate change, demand for recreational<br />
facilities with associated access interlinks, the demand for cycling<br />
as alternative transportation mode and geographic issues and<br />
inherent fault lines. The risk management strategy includes ways<br />
to mitigate these factors.<br />
Shared Services<br />
We have a shared maintenance agreement with Waimakariri<br />
<strong>District</strong> <strong>Council</strong> for Sicon (their maintenance contractor) to<br />
undertake the maintenance of Okuku Pass Road and Balcairn/<br />
Amberley Road, which is a shared road with both <strong>District</strong>s.<br />
The costs are shared between both <strong>Council</strong>s.<br />
We also have a shared service contract with Mainpower for<br />
street lighting for economy of scale efficiencies, and another<br />
one for network assessments with BECA.<br />
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<strong>Community</strong> Outcomes<br />
1. A desirable and safe place to live<br />
2. A place with essential infrastructure<br />
Goals and Performance Measures<br />
Goals<br />
How we will achieve our<br />
Goals<br />
Maintain the Contract out road<br />
district’s roads to a<br />
maintenance and<br />
monitor performance<br />
standard appropriate accordingly<br />
to their use<br />
Ensure that all<br />
bridges are safe and<br />
well maintained<br />
Undertake a residents<br />
satisfaction survey<br />
Contract out bridge<br />
maintenance and<br />
monitor performance<br />
accordingly<br />
Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+<br />
<strong>Hurunui</strong> roads will compare<br />
favourably with the national rural<br />
road averages using the measures<br />
shown below:<br />
The smoothness of our roads<br />
The roughness of our roads<br />
The strength of our roads<br />
Residents consider the overall<br />
standard of road maintenance<br />
to be satisfactory (more than<br />
70%)<br />
Replace priority bridge<br />
structures according to<br />
the bridge replacement<br />
programme<br />
Overall, our roads compared better than the<br />
national average as shown below:<br />
Overall, our roads compare better than the<br />
national average as shown below:<br />
Smooth travel exposure – <strong>Hurunui</strong>’s roading<br />
network is 97%. The national average is 86%<br />
(a higher value is better)<br />
Overall, our roads compare better than the<br />
national average as shown below:<br />
Percentage rough roads in the <strong>Hurunui</strong> is<br />
4.2%. The national average is 9.1% (a lower<br />
value is better)<br />
Overall, our roads compare better than the<br />
national average as shown below:<br />
The strength of our roads is measured by a<br />
pavement Integrety Index (PII). The PII for<br />
the <strong>Hurunui</strong> is 96.6% The national average is<br />
93.7% (a higher value is better)<br />
Resident satisfaction levels have improved<br />
since 2007. In 2011 they were 73% satisfied<br />
Bridge repairs have commenced after a<br />
bridge structural component replacement<br />
programme was identified<br />
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Financial Summary<br />
A financial summary for this activity is shown on the next page.<br />
Happy Valley Road, Emergency Preventative Maintenance<br />
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Roading and Footpaths - Group Activity Financial Summary<br />
Annual <strong>Plan</strong> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10<br />
2011/<strong>2012</strong> <strong>2012</strong>/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/<strong>2022</strong><br />
Operating Statement<br />
Operating Revenue<br />
<strong>District</strong> Wide Rates 2,530,693 3,330,774 3,448,061 3,581,566 3,676,230 3,803,429 3,954,195 4,065,093 4,217,827 4,410,833 4,557,402<br />
Targeted Rates 0 181,043 182,746 183,293 189,419 196,059 215,275 217,578 220,162 224,947 235,288<br />
Other Income 3,681,103 3,417,324 3,537,973 3,650,457 3,771,539 3,901,663 4,031,387 4,171,048 4,326,697 4,498,895 4,677,661<br />
Internal Interest Received 730,877 0 0 0 0 0 0 0 0 0 0<br />
Development Contributions 452,926 152,662 158,646 163,928 169,561 237,230 246,260 256,238 267,165 279,370 232,563<br />
Total Operating Revenue 7,395,599 7,081,803 7,327,426 7,579,245 7,806,748 8,138,381 8,447,116 8,709,957 9,031,851 9,414,044 9,702,914<br />
Operating Expenditure<br />
Direct Operating Expenditure 2,783,808 2,835,517 2,923,593 3,034,095 3,106,987 3,208,862 3,323,755 3,393,032 3,500,804 3,644,415 3,736,813<br />
Internal Interest Paid 2,779 2,162 1,953 1,729 1,489 1,231 955 659 341 0 0<br />
<strong>Council</strong> Overheads Expenditure 621,618 597,985 617,912 638,714 659,260 682,123 702,541 723,397 748,335 773,703 800,141<br />
Depreciation 2,900,000 2,863,125 3,182,179 3,191,330 3,202,063 3,557,671 3,568,108 3,580,853 4,009,038 4,020,758 4,035,406<br />
Total Operating Expenditure 6,308,205 6,298,789 6,725,637 6,865,869 6,969,798 7,449,888 7,595,359 7,697,941 8,258,518 8,438,876 8,572,360<br />
Operating Surplus (Deficit) 1,087,394 783,013 601,789 713,376 836,950 688,493 851,757 1,012,016 773,333 975,169 1,130,554<br />
Capital Statement<br />
Capital Expenditure<br />
Subsidised Roading 3,915,811 3,426,258 3,560,567 3,679,116 3,805,544 4,004,157 4,156,571 4,324,991 4,509,418 4,715,420 4,872,558<br />
Special Purpose Roading 10,708 16,000 16,627 17,181 17,771 18,411 19,112 19,886 20,734 21,682 22,678<br />
Unsubsidised Roading 26,526 25,000 25,980 26,845 27,768 28,768 29,863 31,073 32,398 33,878 35,435<br />
Amberley Ward Roadside Construction 42,440 33,000 29,098 24,697 25,546 26,466 39,419 34,801 29,806 31,167 32,600<br />
Amuri Ward Roadside Construction 50,243 22,000 22,862 23,624 24,435 25,315 26,279 27,344 28,510 29,812 31,183<br />
Cheviot Ward Roadside Construction 25,625 30,000 31,176 32,214 33,321 34,521 35,835 37,287 38,877 40,653 42,522<br />
Hanmer Springs Ward Roadside Construction 85,000 75,000 77,940 80,535 83,303 86,303 89,588 93,218 97,193 101,633 106,305<br />
<strong>Hurunui</strong> Ward Roadside Construction 16,000 16,000 16,627 17,181 17,771 18,411 19,112 19,886 20,734 21,682 22,678<br />
Total Capital Expenditure 4,172,353 3,643,258 3,780,878 3,901,392 4,035,459 4,242,352 4,415,777 4,588,486 4,777,670 4,995,926 5,165,960<br />
Funds Required<br />
Capital Expenditure 4,172,353 3,643,258 3,780,878 3,901,392 4,035,459 4,242,352 4,415,777 4,588,486 4,777,670 4,995,926 5,165,960<br />
Repayment of Internal Loans from Operating Income 0 2,880 3,090 3,314 3,553 3,811 4,088 4,384 4,702 0 0<br />
4,172,353 3,646,139 3,783,967 3,904,706 4,039,013 4,246,164 4,419,865 4,592,869 4,782,371 4,995,926 5,165,960<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Funded by<br />
Operating Surplus 1,087,394 783,013 601,789 713,376 836,950 688,493 851,757 1,012,016 773,333 975,169 1,130,554<br />
Non Cash Expenditure - Depreciation 2,900,000 2,863,125 3,182,179 3,191,330 3,202,063 3,557,671 3,568,108 3,580,853 4,009,038 4,020,758 4,035,406<br />
Capital Expenditure funded through Internal Loans 219,308 0 0 0 0 0 0 0 0 0 0<br />
4,206,702 3,646,139 3,783,967 3,904,706 4,039,013 4,246,164 4,419,865 4,592,869 4,782,371 4,995,926 5,165,960<br />
C:\Users\jab\Desktop\Fuck Up with Subsidised Roading\<strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> LTP Budgets <strong>2012</strong>-<strong>2022</strong> - Post Submissions - with Option 2 for Subsidised Roading.xls 27/06/<strong>2012</strong> 2:31 p.m.<br />
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Stormwater and Drainage<br />
Overview<br />
Stormwater and Drainage covers the following activity described<br />
below:<br />
Activity 1:<br />
Our Aim<br />
Stormwater and Drainage<br />
To prevent or minimise adverse effects of surface flooding and<br />
stormwater discharge.<br />
Why is the <strong>Council</strong> Involved?<br />
Both our <strong>Council</strong> and the Canterbury Regional <strong>Council</strong><br />
(Environment Canterbury) have joint responsibilities regarding<br />
the management of stormwater drainage, flood control and<br />
stormwater quality in our district. We provide drainage services<br />
where a community has requested our involvement or where<br />
it is efficient to be involved. This includes managing drainage<br />
in localised areas to protect them from the effects of surface<br />
flooding. Stormwater is rain that has run off hard surfaces such<br />
as roofs, roads and car parks. Our aim is to protect human<br />
and ecological values by preventing or reducing the effects<br />
of stormwater on the human and aquatic environment. We<br />
monitor stormwater systems to ultimately minimise flooding<br />
and damage to property or the environment.<br />
<strong>Community</strong> Outcomes<br />
The Water Supply activity described in this section, primarily<br />
contributes to two of our community outcomes:<br />
1. A desirable and safe place to live:<br />
• We have attractive well designed townships<br />
• Communities have access to adequate health and<br />
emergency services and systems and resources<br />
are available to meet civil defence emergencies<br />
Major Projects <strong>Plan</strong>ned<br />
Project<br />
Construct new drains for<br />
Eastern Drain and Dry<br />
Gully, Amberley, direct to<br />
the lagoons<br />
Capital works on existing<br />
infrastructure<br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15<br />
$294,000 $69,042<br />
Significant Negative Effects<br />
$62,352<br />
There is potential for significant negative impacts on<br />
environmental and cultural wellbeing due to this activity, but<br />
this is offset by ensuring that the disposal of stormwater is done<br />
in a manner that minimises contaminants and eases peak flows.<br />
Drainage systems may not always cope with changes in volumes<br />
of rainfall, with subsequent negative effects of flooding on roads<br />
and properties. This may cause additional social problems in<br />
living quality, public health and access to and safety of transport<br />
systems. However, such problems are mitigated to some extent<br />
by the provision of stormwater systems to cope with flooding.<br />
Drain clearances can have adverse effects on biodiversity,<br />
ecosystems and water quality, but such clearances are obviously<br />
necessary, and the negative effects that they have are short lived,<br />
with no implications for sustainability.<br />
Emergency Management<br />
In an emergency, particularly a civil defence emergency, we will<br />
continue to deliver services as long as it is safe and practical<br />
to continue to do so. Stormwater and drainage will receive<br />
priority in the event of emergencies involving flooding.<br />
Financial Summary<br />
A financial summary for this group of activities is shown at the<br />
end of the Stormwater and Drainage activity.<br />
• Risks to public health are identified and<br />
appropriately managed<br />
2. A place with essential infrastructure:<br />
• We have a strong emphasis on service delivery<br />
across all infrastructure including roading, water<br />
(for drinking and development), waste water,<br />
stormwater and solid waste<br />
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Activity 1: Stormwater and Drainage<br />
Overview<br />
The Stormwater and Drainage activity includes the various<br />
functions of land drainage schemes and flood protection.<br />
Current Situation<br />
We maintain four small land drainage schemes set up by the<br />
former North Canterbury Catchment Board. They are the<br />
Ashworths drains, Leithfield Outfall drain, Newcombes Road<br />
drains and the Jed River areas.<br />
We have only a very small quantity of stormwater pipes in<br />
our townships, as most stormwater is disposed of to kerb and<br />
channelling and open drains. There are approximately 100 metres<br />
of stormwater pipe in Hanmer Springs and approximately 560<br />
metres of pipe in Amberley. Much of the <strong>District</strong>’s stormwater<br />
disposal systems comprise infrastructure that is maintained by<br />
private individual property owners, such as on-site soakage<br />
disposal, open drains/creeks, piped networks outfalls, silt traps,<br />
and detention structures.<br />
After two significant rainfall events in and around Amberley in<br />
2008, we engaged a specialist consultant to review the adequacy<br />
of our stormwater systems. The recommendations were to<br />
carry out some major capital works to reduce the impact of<br />
surface flooding on both Amberley Township and Amberley<br />
Beach. The works were to include diversion drains to “behead”<br />
the surface flows from north of Amberley to discharge them to<br />
natural waterways outside the urban area, and realignment of<br />
drains discharging to the lagoons north and south of Amberley<br />
Beach.<br />
Because of the time taken to obtain resource consents,<br />
exacerbated by the Canterbury earthquakes and appeals lodged<br />
against the consents granted after a lengthy hearing, only two<br />
major physical works have been completed. These were the<br />
flood diversion from Dock Creek along Lawcocks Road, and a<br />
piped outfall of the Leithfiled Outfall Drain to the sea.<br />
However with consents now finalised for three more significant<br />
capital projects, work is expected to be completed for flood<br />
diversion works in the Amberley swamp area (to include an<br />
outlet culvert under Stanton Rd) and from Dry Gully across to<br />
Mimimoto lagoon before the end of the 2011/12 year.<br />
<strong>Plan</strong>s for the future<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
2016/17 budget for unspecified improvements. All funding is<br />
from a special rate struck over the entire Amberley Ward.<br />
A global consent for discharge of stormwater from the Amberley<br />
Urban area was heard in 2011, along with the other 15 consents<br />
for flood mitigation works described above. This was put on<br />
hold pending as there was not enough information and a new<br />
application will be made in the <strong>2012</strong>/13 year.<br />
AECOM Consultants will finalise an application in the <strong>2012</strong>/13<br />
year for a global consent for management of stormwater<br />
from future residential developments in Hanmer Springs. In<br />
anticipation of the stormwater management plan identifying some<br />
minor capital works being required on existing infrastructure, an<br />
allowance of $62,000 has been made in the 2013/14 year and<br />
a further $69,000 in the 2016/17 year. As in Amberley this will<br />
be funded by a separate rate over all properties in the Hanmer<br />
Springs Ward.<br />
We are proposing a new stormwater engineer to be appointed<br />
in 2013/2014 to manage this area of our work. This engineer<br />
will be responsible for developing district-wide stormwater<br />
catchment and management plans, and undertake the range of<br />
tasks required to ensure we have effective stormwater systems<br />
in place, inclusive of appropriate maintenance regimes.<br />
We will progressively move towards managing all of its urban<br />
stormwater responsibilities in a more holistic, integrated and<br />
life cycle way.<br />
Funding<br />
Operational Costs:<br />
• 100% Targeted Rate based on the area benefiting<br />
• Engineer for stormwater catchment and management<br />
plans funded through the General Rate<br />
Capital Costs:<br />
• Significant <strong>Council</strong> capital expenditure is funded by a<br />
loan as per the <strong>Council</strong>’s Internal Financing Policy<br />
• If loans are not raised, then it will be from targeted<br />
rates<br />
A flood flow diversion from Eastern Drain across to the<br />
Amberely North lagoon is proposed for the <strong>2012</strong>/13 year to<br />
complete the flood mitigation works covered by the 15 consents<br />
mentioned above.<br />
Detailed design and land ownership issues still have to be finalised,<br />
but a preliminary estimate of $298,000 has been allowed for in<br />
the <strong>2012</strong>/13 budget for this work and a further $84,000 in the<br />
• If any of the Capital Expenditure caters for future<br />
growth of the scheme, then that portion of the<br />
expenditure that relates to growth may be funded<br />
from future users via Development Contributions and<br />
Financial Contributions<br />
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<strong>Council</strong> Owned Assets<br />
Land drainage schemes:<br />
• Ashworths drains<br />
• Leithfield Outfall drain<br />
• Newcombes Road drains<br />
• Jed River drains<br />
Maintenance and Operating Implications<br />
We plan to continue to maintain the 4 drainage systems as well<br />
as other drainage channels created as part of the improvement<br />
works described above. Annual maintenance has been limited to<br />
occasional drain clearing. Contractors will be engaged to carry<br />
out regular work to maintain the system as and when needed.<br />
Assumptions and Risks<br />
It is assumed that both global consent applications (Amberley<br />
and Hanmer Springs) will be approved and that land-owner<br />
approvals will be given to allow the flood mitigation construction<br />
works to proceed.<br />
<strong>Community</strong> Outcomes<br />
1. A desirable and safe place to live<br />
2. A place with essential infrastructure<br />
Goals and Performance Measures<br />
Goals<br />
Minimise the risk of<br />
flooding<br />
How we will achieve our<br />
Goals<br />
Maintain all drainage<br />
systems in accordance with<br />
resource consent conditions<br />
Employ an engineer to<br />
manage the stormwater and<br />
drainage portfolio<br />
Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+<br />
All major and significant<br />
non-compliances for our<br />
stormwater resource<br />
consents reduce until we<br />
have 0% non-compliance<br />
<strong>District</strong> wide stormwater<br />
catchment and management<br />
plans have been put<br />
in place<br />
We have 30 resource<br />
consents relating to<br />
stormwater, which have 363<br />
conditions to comply with.<br />
We have had 0% major and<br />
significant non-compliance so<br />
far this year.<br />
We have a stormwater plan<br />
for the Amberley area but<br />
not for the other areas in the<br />
district<br />
2% 1% 0% 0%<br />
√<br />
Financial Summary<br />
A financial summary for this activity is shown on the next page.<br />
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Stormwater and Drainage - Group Activity Financial Summary<br />
Annual <strong>Plan</strong> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10<br />
2011/<strong>2012</strong> <strong>2012</strong>/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/<strong>2022</strong><br />
Operating Statement<br />
Operating Revenue<br />
<strong>District</strong> Wide Rates 0 0 103,130 106,270 109,640 113,250 116,470 119,760 123,550 127,710 131,890<br />
Targeted Rates 217,829 279,042 286,471 280,990 277,894 286,212 279,536 275,397 271,368 267,418 276,708<br />
Internal Interest Received 3,275 3,382 2,512 3,149 3,472 4,140 3,085 3,735 4,029 4,721 5,462<br />
Development Contributions 39,360 17,032 17,791 18,303 19,005 27,007 27,975 28,999 30,223 31,703 25,894<br />
Total Operating Revenue 260,464 299,457 409,903 408,712 410,011 430,609 427,066 427,892 429,170 431,552 439,953<br />
Operating Expenditure<br />
Employee Benefits 0 0 103,130 106,270 109,640 113,250 116,470 119,760 123,550 127,710 131,890<br />
Direct Operating Expenditure 19,535 58,500 34,549 20,723 13,705 73,046 9,900 46,108 10,502 12,132 89,026<br />
Internal Interest Paid 138,688 109,175 120,064 115,834 105,527 94,798 93,921 81,360 69,984 56,309 41,960<br />
<strong>Council</strong> Overheads Expenditure 10,744 12,850 13,255 14,474 14,082 14,530 14,933 15,345 16,759 16,324 16,837<br />
Depreciation 17,241 45,752 48,800 48,970 53,917 53,255 54,480 59,721 58,988 58,264 65,288<br />
Total Operating Expenditure 186,208 226,277 319,798 306,271 296,870 348,879 289,705 322,294 279,782 270,740 345,001<br />
Operating Surplus (Deficit) 74,256 73,180 90,106 102,441 113,141 81,730 137,361 105,598 149,388 160,812 94,952<br />
Capital Statement<br />
Capital Expenditure<br />
Amberley Stormwater 0 294,000 0 0 0 84,001 0 0 0 0 0<br />
Hanmer Springs Stormwater 0 0 62,352 0 0 69,042 0 0 0 0 85,044<br />
Total Capital Expenditure 0 294,000 62,352 0 0 153,043 0 0 0 0 85,044<br />
Funds Required<br />
Capital Expenditure 0 294,000 62,352 0 0 153,043 0 0 0 0 85,044<br />
Repayment of Internal Loans from Operating Income 91,497 118,932 138,906 151,411 167,058 134,985 191,841 165,319 208,376 219,076 160,240<br />
91,497 412,932 201,258 151,411 167,058 288,029 191,841 165,319 208,376 219,076 245,284<br />
Funded by<br />
Operating Surplus 74,256 73,180 90,106 102,441 113,141 81,730 137,361 105,598 149,388 160,812 94,952<br />
Non Cash Expenditure - Depreciation 17,241 45,752 48,800 48,970 53,917 53,255 54,480 59,721 58,988 58,264 65,288<br />
Capital Expenditure funded through Internal Loans 0 294,000 62,352 0 0 153,043 0 0 0 0 85,044<br />
91,497 412,932 201,258 151,411 167,058 288,029 191,841 165,319 208,376 219,076 245,284<br />
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
H:\<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Workings\<strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> LTP Budgets <strong>2012</strong>-<strong>2022</strong> - Post Submissions.xls 31/05/<strong>2012</strong> 9:34 a.m.<br />
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<strong>Community</strong> Services and Facilities<br />
Overview<br />
<strong>Community</strong> Services and Facilities covers the following 3 activity<br />
areas described below:<br />
Activity 1: <strong>Community</strong> Services (library, youth programme,<br />
community development and grants and services awards)<br />
Activity 2: Property (housing, public toilets, council offices,<br />
medical centres, halls, swimming pools and township<br />
maintenance)<br />
Activity 3:<br />
Our Aim<br />
Reserves (parks, reserves and cemeteries)<br />
To provide services that will support the community to lead<br />
healthy and fulfilled lives and meet and extend their recreational,<br />
cultural, educational development and information needs.<br />
Major Projects <strong>Plan</strong>ned<br />
Project<br />
Year <strong>Plan</strong>ned<br />
<strong>2012</strong>/13 2013/14 2014/15 2015+<br />
Cheviot <strong>Community</strong> Library<br />
to move into the Service $100,000<br />
Centre<br />
Toilet extension for <strong>Council</strong><br />
Chambers, Amberley<br />
$45,000<br />
Hanmer Springs Sports<br />
Stadium upgrade feasibility $30,000 $1,077,379<br />
study<br />
Hanmer Springs <strong>Community</strong><br />
Hall extension<br />
$193,284<br />
Purchase land to expand<br />
Balcairn cemetery $124,704<br />
Upgrade or rebuild of the<br />
Cheviot Medical Centre<br />
New public toilets built in<br />
Rotherham<br />
$1,150,700<br />
$103,563<br />
Why is the <strong>Council</strong> Involved?<br />
<strong>Council</strong> is involved with the activities within the <strong>Community</strong><br />
Services and Facilities group to provide for the social and<br />
cultural wellbeing of its people. All of the activities within this<br />
group are to do with ensuring our communities have the type<br />
of facilities and services reasonably expected to be provided<br />
by the <strong>Council</strong> and are unlikely to be privately supplied at an<br />
affordable cost. These activities also contribute to the long<br />
term achievement of our community outcomes.<br />
<strong>Community</strong> Outcomes<br />
The <strong>Community</strong> Services and Facilities described in this section,<br />
primarily contribute to two of our community outcomes:<br />
1. A desirable and safe place to live:<br />
• We have attractive well designed townships<br />
• Communities have access to adequate health and<br />
emergency services and systems and resources are<br />
available to meet civil defence emergencies<br />
• Risks to public health are identified and appropriately<br />
managed<br />
2. A place where our traditional rural values and heritage<br />
make <strong>Hurunui</strong> unique:<br />
• People have a range of opportunities to<br />
participate in leisure and culture activities<br />
• Our historic and cultural heritage is protected<br />
for future generations<br />
Significant Negative Effects<br />
Most of the activities in the <strong>Community</strong> Services and Facilities<br />
section do not pose any significant negative effects. We are<br />
mindful that in the Property area, there are some identified risks,<br />
such as car parks – particularly in Hanmer Springs where the<br />
volume of vehicle and pedestrian traffic is high during holiday<br />
periods. Every effort has been made to minimise the risk of<br />
accidents occurring through the design of the footpaths and car<br />
parks, and signage. Similarly with public toilets, car parks have<br />
been designed to reduce congestion and hazards. Public toilets<br />
are positioned in well-lit areas close to main roads to reduce<br />
incidents of vandalism and undesirable anti-social behaviours.<br />
Pensioner housing is only available in Amberley, Cheviot,<br />
Hanmer Springs and Waikari. This may inadvertently have<br />
social and cultural impacts upon the age demographics in local<br />
communities as the elderly population becomes concentrated<br />
in certain areas only. This may result in higher demands on<br />
some local services and facilities. There has not been a strong<br />
demand for pensioner housing in other areas in the <strong>District</strong>. If<br />
this changes, we will look at whether we can meet the demand<br />
at the time.<br />
Emergency Management<br />
In an emergency, particularly a civil defence emergency, we will<br />
continue to deliver services as long as it is safe and practical to<br />
continue to do so. Civil defence management plans provide<br />
the <strong>Council</strong> with guidance and contingencies. However, in an<br />
extreme emergency, most of the services in this group would<br />
not be considered to be essential.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Financial Summary<br />
<strong>Community</strong> Services and Facilities - Group Activity Financial Summary<br />
Annual <strong>Plan</strong> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10<br />
2011/<strong>2012</strong> <strong>2012</strong>/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/<strong>2022</strong><br />
Operating Statement<br />
Operating Revenue<br />
<strong>District</strong> Wide Rates 116,287 79,898 134,672 192,722 153,094 108,399 113,923 119,037 126,183 131,124 137,129<br />
Targeted Rates 1,489,962 1,444,655 1,486,789 1,511,809 1,549,173 1,596,583 1,678,487 1,734,096 1,791,966 1,845,129 1,900,155<br />
Other Income 728,501 756,270 700,577 723,575 746,419 770,489 791,958 813,894 839,163 866,900 894,770<br />
Internal Interest Received 96,304 35,250 35,797 40,963 46,085 48,170 52,981 54,398 58,737 59,462 63,445<br />
Development Contributions 317,240 238,682 247,626 255,938 253,498 234,236 242,264 250,106 251,357 263,546 232,096<br />
Total Operating Revenue 2,748,294 2,554,755 2,605,461 2,725,007 2,748,270 2,757,877 2,879,613 2,971,531 3,067,407 3,166,161 3,227,596<br />
Operating Expenditure<br />
Employee Benefits 772,836 876,883 821,337 846,344 873,183 901,934 927,578 953,780 983,964 1,017,094 1,050,384<br />
Direct Operating Expenditure 1,829,955 1,953,905 1,976,216 2,052,134 2,078,095 2,103,949 2,175,368 2,235,006 2,302,220 2,379,279 2,457,276<br />
Internal Interest Paid 298,170 297,186 293,193 281,858 279,090 332,437 385,884 373,819 357,336 365,904 344,141<br />
<strong>Council</strong> Overheads Expenditure 954,541 997,821 1,019,704 1,052,590 1,066,808 1,092,457 1,116,040 1,139,355 1,177,573 1,197,135 1,226,943<br />
Depreciation 350,974 397,951 399,752 460,108 484,813 487,427 517,458 519,239 521,096 542,425 544,456<br />
Total Operating Expenditure 4,206,476 4,523,747 4,510,203 4,693,035 4,781,988 4,918,204 5,122,328 5,221,200 5,342,189 5,501,838 5,623,200<br />
Operating Surplus (Deficit) (1,458,182) (1,968,992) (1,904,742) (1,968,028) (2,033,718) (2,160,327) (2,242,716) (2,249,669) (2,274,782) (2,335,676) (2,395,604)<br />
Capital Statement<br />
Capital Expenditure<br />
<strong>Community</strong> Services 92,654 65,000 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131<br />
Property 46,637 115,500 61,832 229,256 24,991 1,280,154 38,821 26,751 261,124 30,490 31,892<br />
Reserves 115,831 260,146 306,716 152,906 2,344,865 126,745 256,992 155,544 401,011 142,483 156,121<br />
Total Capital Expenditure 255,122 440,646 436,096 451,959 2,442,051 1,481,694 373,456 263,083 746,368 261,055 280,143<br />
Funds Required<br />
Operating Deficit 1,458,182 1,968,992 1,904,742 1,968,028 2,033,718 2,160,327 2,242,716 2,249,669 2,274,782 2,335,676 2,395,604<br />
Capital Expenditure 255,122 440,646 436,096 451,959 2,442,051 1,481,694 373,456 263,083 746,368 261,055 280,143<br />
Transfer to Special Funds 341,814 199,265 231,358 237,120 248,751 232,374 236,254 248,506 255,204 240,990 216,298<br />
Transfer to General <strong>Council</strong> Reserves 145,013 154,805 143,785 159,691 161,603 150,859 169,146 170,928 172,892 178,004 180,288<br />
Repayment of Internal Loans from Operating Income 1,052,455 295,358 344,188 308,274 318,038 334,388 331,140 381,390 647,741 422,848 470,177<br />
3,252,586 3,059,065 3,060,170 3,125,072 5,204,161 4,359,643 3,352,711 3,313,576 4,096,987 3,438,572 3,542,511<br />
Funded by<br />
Transfer from Hanmer Springs Thermal Reserve 1,977,146 2,128,166 2,142,035 2,161,289 2,219,254 2,306,761 2,362,035 2,425,037 2,480,892 2,547,375 2,625,468<br />
Non Cash Expenditure - Depreciation 350,974 397,951 399,752 460,108 484,813 487,427 517,458 519,239 521,096 542,425 544,456<br />
Transfer from General <strong>Council</strong> Reserves 99,808 83,285 220,033 75,166 77,749 169,335 83,615 87,003 90,713 94,857 99,218<br />
Transfer from Special Funds 107,646 140,646 83,807 86,598 1,738,963 92,799 203,837 100,235 342,786 109,283 114,308<br />
Capital Expenditure funded through Internal Loans 717,012 309,017 214,542 341,911 683,383 1,303,320 185,765 182,061 661,499 144,632 159,060<br />
3,252,586 3,059,065 3,060,170 3,125,072 5,204,162 4,359,643 3,352,711 3,313,575 4,096,987 3,438,572 3,542,511<br />
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Activity 1: <strong>Community</strong> Services<br />
Overview<br />
The <strong>Community</strong> Services activity includes the <strong>Council</strong>’s:<br />
• Library Service<br />
• <strong>Hurunui</strong> Youth Programme<br />
• <strong>Community</strong> Development Programme<br />
• Grants and Services Award Schemes<br />
Current Situation<br />
Library<br />
Our library system as we know it was established in 1993.<br />
Libraries are an important educational and recreational resource<br />
for the district, and a public library system ensures that there is<br />
equitable opportunity for people to access the information that<br />
they want and need.<br />
The library service is available throughout the district through<br />
our website and network of libraries. The libraries are well<br />
stocked with a wide range of resources in a variety of formats.<br />
Our library staff and volunteers provide assistance and support<br />
so that everyone can effectively access and use any of the library<br />
materials.<br />
• There are 8 libraries in the <strong>District</strong>. Four of these share<br />
premises with school libraries (Amuri, Cheviot, Greta<br />
Valley and Hawarden).<br />
• The <strong>Hurunui</strong> Memorial Library, based in Amberley, is<br />
the administrative centre for the district.<br />
• Branch libraries with paid staff are based at Hanmer<br />
Springs, Amuri, Cheviot and Hawarden.<br />
• There are 3 community libraries at Greta Valley, Waiau<br />
and Leithfield which are run solely by volunteers.<br />
• The Hanmer Springs Library/Service Centre and the<br />
Amuri Library/Service Centre are combined <strong>Council</strong><br />
Service Centre/libraries.<br />
• The library provides books to the Omihi School and<br />
Conway community.<br />
Volunteers are active at all libraries and support the library<br />
service with many hours of their time. The “Friends of the<br />
<strong>Hurunui</strong> <strong>District</strong> Libraries inc.” was formed in 2002 to support<br />
the library service , who along with other groups of volunteers<br />
contribute to the delivery of library services across the <strong>District</strong>.<br />
Without the many library volunteers throughout the <strong>District</strong>,<br />
we would either have to employ more staff to run them, or not<br />
operate as many libraries. The 3 community libraries which are<br />
solely run by volunteers would incur greater ratepayer expense<br />
if they were staffed.<br />
Since 2008 the library has provided free internet access for<br />
customers via the Aotearoa People’s Network Kaharoa (APNK).<br />
This is a national government subsidised initiative aimed at<br />
increasing New Zealanders access to digital information and<br />
technology. For the <strong>Hurunui</strong> libraries, this provides computer<br />
technology and software, including wireless access at some sites.<br />
This internet access is high speed and reliable and delivered<br />
through 17 computers throughout the <strong>District</strong>.<br />
Youth Programme<br />
Since 2008 we have run a Youth Programme within the <strong>District</strong>.<br />
Funding to support the first three years of the project was<br />
received from the Ministry of Youth Development. A youth<br />
coordinator was appointed to develop and run a programme<br />
with youth aged between 12 and 18 years. The programme has<br />
been developing and a number of initiatives and activities have<br />
been organised with the support and assistance of the youth<br />
concerned and the local Area schools. The Youth Programme<br />
has been a new area for <strong>Council</strong> and its success is a result of<br />
support from local communities, parents and schools for the<br />
programme to develop and continue and future funding.<br />
<strong>Community</strong> Development<br />
Programme<br />
Our successful application for government funding to run a<br />
<strong>Community</strong> Development programme commenced at the end<br />
of 2010. A community development advisor was appointed to<br />
work with the community to achieve an overall project aim to<br />
‘enable people living and working in <strong>Hurunui</strong> to live a “whole<br />
life” in the district; to strengthen the wellbeing of families and<br />
promote a strong sense of community belonging, encouraging<br />
people to be involved in local activities and support volunteer<br />
services’. The programme has a set of outcomes and initiatives<br />
for the community development advisor to deliver on. The<br />
programme is intended to be finite and to conclude at the end<br />
of June 2013.<br />
Grants and Service Awards<br />
We have 4 Service Awards which are presented annually. They<br />
are:<br />
1. <strong>Community</strong> Service Awards for those who have given<br />
extended periods of exceptional volunteer service.<br />
2. Secondary School Achievers Awards for promising<br />
secondary students who will benefit from additional<br />
financial assistance to undertake further study.<br />
3. MainPower <strong>Hurunui</strong> Natural Environment Fund to<br />
encourage and assist with voluntary work that benefits<br />
the natural environment.<br />
4. <strong>Hurunui</strong> Heritage Fund to encourage and assist with<br />
voluntary work that protects, enhances, explains or<br />
restores significant heritage values of the district.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
We also act as an agent and disburse grants on behalf of 2<br />
government funded initiatives:<br />
• Creative Communities Scheme to increase participation<br />
and diversity in the arts at the local level.<br />
• SPARC to encourage junior sporting teams to<br />
participate in sporting activities by assisting with travel<br />
costs.<br />
We also pay a contribution toward the:<br />
• Canterbury Museum which is a legislative requirement.<br />
We are represented on the Canterbury Museum<br />
Board as we share a North Canterbury member with<br />
Waimakariri <strong>District</strong> <strong>Council</strong>. We consistently send<br />
the message that the museum must be run as cost<br />
effectively as possible to minimise the rate burden on<br />
our community but at the same time, get value for<br />
money.<br />
• The North Canterbury Sport and Recreation Trust<br />
to recognise sporting excellence amongst our young<br />
people.<br />
<strong>Plan</strong>s for the future<br />
Library<br />
We are planning to move the Cheviot community library from<br />
the Cheviot Area School and position it in the Cheviot Service<br />
Centre building on the main street. This will be more accessible<br />
to all and parking will be available directly outside the building.<br />
Library and <strong>Council</strong> services will be delivered from the one site.<br />
The new hours and days it will be opening are being considered<br />
by a working group comprising of Cheviot local people.<br />
All library items will continue to be updated as appropriate to<br />
meet the needs of the district. One of our challenges is to<br />
keep up with technology and improvements while at the same<br />
time, be mindful of the cost to the ratepayer and assessing the<br />
value of any new service or product. Technology is an area that<br />
continues to develop at a fast pace and customers are generally<br />
receptive to these types of enhancements. Because of the fast<br />
pace of change, it is difficult to accurately predict what will be<br />
available in the near future, let alone the life of this plan.<br />
within the Canterbury region to enable our customers to use<br />
other libraries with a <strong>Hurunui</strong> library card and vice versa.<br />
Youth Programme<br />
We plan to continue to deliver the programme along similar<br />
lines to the current format. Whereas we do not have plans to<br />
change, incremental change will naturally occur in the ensuing<br />
years as the youth influence the look of the programme.<br />
<strong>Community</strong> Development<br />
Programme<br />
We plan to continue to deliver on the programme as anticipated<br />
when we applied for funding. There are no plans to continue<br />
the programme beyond 2013. The purpose of the programme<br />
is to increase the communities’ capabilities so that the<br />
programme is not actually required any longer. We committed<br />
to the programme on that basis and have not intended for it to<br />
continue beyond 2013.<br />
Grants and Service Awards<br />
Funding was agreed to in 2009 to support the North Canterbury<br />
Sport and Recreation Trust to help fund a primary school<br />
sport coaching programme for the 28 schools in the North<br />
Canterbury area. This initiative commenced in 2009 and was<br />
backed by SPARC for the first 3 years to get it up and running.<br />
<strong>Hurunui</strong> will contribute to the programme from year <strong>2012</strong> to<br />
enable the programme (and the expected long term benefits)<br />
to continue.<br />
Our levy to the Canterbury Museum for running costs is<br />
$53,842 for the 2011/<strong>2012</strong> year. This is set to increase over<br />
the 10 year period to an estimated $110,213 for 2021/<strong>2022</strong><br />
year. The Museum intends to proceed with a redevelopment<br />
project that has been signalled in their previous Annual <strong>Plan</strong>s.<br />
The redevelopment has been estimated at costing $63.7 million<br />
and is scheduled to occur between 2013 and 2016. The levy<br />
which will be imposed on our <strong>Council</strong> for the proposed capital<br />
development, in addition to the operational levy <strong>Council</strong> pays,<br />
has been budgeted at; $50,000 for 2013/2014; $100,000 for<br />
2014/2015; and $50,000 for 2015/2016. We have no ability to<br />
decline paying this fund once the Museum’s <strong>Plan</strong> and budget is<br />
approved by the Canterbury Museum Board.<br />
A review of our library hours is undertaken from time to time<br />
to check whether we are open to the public at the best times<br />
for most people. As an example the Hanmer Springs Library<br />
increased its opening hours in 2009.<br />
We work with other libraries to enhance the services offered<br />
to our district and to make efficiencies where possible. For<br />
example, we have shared agreements with some other libraries<br />
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Funding<br />
Library<br />
Operational Costs:<br />
• Library user charges (overdue fines, book reserves etc).<br />
• The libraries in Amberley and Hanmer Springs are<br />
located on reserves, therefore, the net operational<br />
costs are funded through the surplus from the Hanmer<br />
Springs Thermal Reserve.<br />
• The libraries in Culverden, Hawarden and Cheviot are<br />
not located on reserves and as such, the funding of the<br />
operational costs for these is made from an allocation<br />
from the <strong>Council</strong>’s treasury surplus. Therefore, there is<br />
no rating input to operate the libraries.<br />
Capital Costs:<br />
• Significant Capital Expenditure on land and building may<br />
be funded from the Hanmer Springs Thermal Reserve<br />
surplus, <strong>Council</strong> reserves or loans according to the<br />
<strong>Council</strong>’s Internal Financing Policy.<br />
• If the Capital Expenditure caters for future growth, then<br />
the portion of the expenditure that relates to growth<br />
may be funded via Development Contributions.<br />
• The construction of the <strong>Hurunui</strong> Memorial Library was<br />
funded from two loans as per the <strong>Council</strong>’s Internal<br />
Financing Policy. The first loan represented the majority<br />
of the cost. The repayments of principal and interest for<br />
the majority of the loan are funded through development<br />
contributions. The second loan of $260,000 has been<br />
paid by the Amberley Ward ratepayers since 2004 at<br />
$16.00 per rating unit. This has been used to fund the<br />
interest and principal repayments.<br />
Youth Programme<br />
Operational Costs:<br />
• The Youth Programme is run via the Library service and<br />
funded through the Hanmer Springs Thermal Reserve<br />
surplus<br />
<strong>Community</strong> Development<br />
Programme<br />
Operational Costs:<br />
Grants and Service Awards<br />
Operational Costs:<br />
• Uniform Annual General Charge<br />
<strong>Council</strong> Owned Assets<br />
Library<br />
• <strong>Hurunui</strong> Memorial Library, Amberley<br />
• Hanmer Springs Service Centre/Library<br />
• Waiau Hall (which houses the community library)<br />
• Cheviot Service Centre (soon to include the community<br />
library)<br />
• Computers, hardware and software<br />
• Books, CDs, Videos etc<br />
Youth Programme<br />
• Vehicle<br />
• Programme tools (computers, cameras, projector,<br />
games etc)<br />
<strong>Community</strong> Development<br />
Programme<br />
• Not applicable<br />
Grants and Service Awards<br />
• Not applicable<br />
Maintenance and Operating Implications<br />
Library<br />
Apart from the initial alterations to the Cheviot Service Centre<br />
to accommodate the library, there is no real change planned<br />
for upcoming maintenance and operating costs, which includes<br />
routine repairs and keeping buildings in good condition.<br />
Library resources (books, videos etc) are purchased through an<br />
annual budget provision. Donated or locally fundraised items<br />
are either vested in the <strong>Council</strong> or ownership is held by the<br />
donor as agreed.<br />
Some of the library computers and software are owned and<br />
supported through a government funded programme (called the<br />
Aotearoa People’s Network). Maintenance and operating costs<br />
are through them.<br />
• Funded through a grant from the Department of<br />
Internal Affairs<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Youth Programme<br />
The <strong>Council</strong> plans to support the programme by providing<br />
funds to pay a youth coordinator and running costs for a vehicle.<br />
There is no provision for a replacement vehicle or to replace<br />
programme tools as the programme was not initially intended<br />
to progress beyond 3 years. It is intended that any replacement<br />
items needed would be paid for through fundraising.<br />
<strong>Community</strong> Development<br />
Programme<br />
The programme’s main resource is the community development<br />
advisor. There are no maintenance and operating implications as<br />
this is fully funded and supported by the Department of Internal<br />
Affairs.<br />
Grants and Service Awards<br />
<strong>Council</strong> acts as an agent in administering and distributing<br />
grants on behalf of 2 government funded initiatives (SPARC and<br />
Creative Communities). Both organisations provide assistance<br />
to manage the schemes by setting the criteria for funding<br />
distribution. <strong>Council</strong> staff administer the other grants and<br />
awards internally.<br />
Assumptions and Risks<br />
Library<br />
It is assumed that the Cheviot community library will move into<br />
the Cheviot Service Centre. We are planning to run the new<br />
Cheviot library/service centre at the same cost as it is to run<br />
the service centre and library staffing now.<br />
We are not planning to move any other libraries and assume<br />
they will continue to operate in their current buildings and<br />
locations. However, we do need to be mindful that at any stage<br />
the schools could opt to discontinue their association with the<br />
<strong>Council</strong> and choose to quit the community libraries from their<br />
schools. We do not have contingency plans if this was to be the<br />
case, but it is unlikely.<br />
The smaller volunteer run libraries are only likely to continue<br />
as long as there are people willing to take on this responsibility<br />
on a volunteer basis. The cost of transferring these libraries to<br />
the <strong>District</strong> library network and staffing them is likely to be cost<br />
prohibitive.<br />
The libraries have computers and internet services supplied<br />
through the national APNK programme at no cost to us. We<br />
cannot guarantee that this will be available to NZ’s libraries<br />
for ever and at some point, we may need to carry this cost or<br />
reconsider ongoing free internet usage.<br />
Youth Programme<br />
It is assumed that the Youth Programme will continue throughout<br />
the life of the long term plan and be funded via profits from the<br />
Hanmer Springs Thermal Reserve. If this method of funding was<br />
no longer available, (for example, if the profits were less than<br />
anticipated and there was less to spend), the programme would<br />
be funded through general rates instead. It is also assumed that<br />
there will be on going alternative funding opportunities to apply<br />
for grants to support the programme and thereby reduce the<br />
reliance on the thermal reserve profits or general rates. In the<br />
event there is no funding available, and the community is not<br />
prepared to fund it, the programme would cease to continue.<br />
<strong>Community</strong> Development<br />
Programme<br />
It is assumed that the <strong>Community</strong> Development Programme will<br />
cease once the government funding finishes in June 2013. In the<br />
event the community and the <strong>Council</strong> consider the programme<br />
worth continuing beyond 2013, the cost would likely to be met<br />
via general rates.<br />
Grants and Service Awards<br />
It is assumed that the grants and service awards currently<br />
provided for will continue. Some external funding is received<br />
toward these and should this cease to be available, <strong>Council</strong> will<br />
need to reconsider its position regarding the on-going financial<br />
support of its grants.<br />
Shared Services<br />
Library<br />
We operate our community library service in conjunction with<br />
school libraries in three district area schools (Amuri, Cheviot<br />
and <strong>Hurunui</strong>). Our new library management programme was<br />
a shared purchase with several other libraries throughout New<br />
Zealand. This has a shared helpdesk and IT support.<br />
Grants and Service Awards<br />
The Mainpower <strong>Hurunui</strong> Natural Environment Fund is a joint<br />
collaboration between Mainpower, which donates $4,000<br />
towards it, and we match it with another $4,000 each year.<br />
Under legislation, <strong>Hurunui</strong>, Waimakariri and Selwyn <strong>District</strong><br />
<strong>Council</strong>’s along with Christchurch City <strong>Council</strong> contribute to<br />
the cost of running the Canterbury Museum. The Museum is<br />
overseen by a Board, of which we share a membership role with<br />
Waimakariri <strong>Council</strong>.<br />
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Goals and Performance Measures<br />
<strong>Community</strong> Outcomes<br />
1. A desirable and safe place to live<br />
2. A place where our traditional rural values and heritage make <strong>Hurunui</strong> unique<br />
Goals<br />
Provide community services<br />
that are valued by people in<br />
the <strong>District</strong><br />
How we will achieve our<br />
Goals<br />
Run a youth programme that<br />
meets the needs of our local<br />
youth*<br />
Run the <strong>Community</strong><br />
Development Programme<br />
with specific outcomes<br />
Undertake a residents<br />
satisfaction survey<br />
Reward and recognise<br />
outstanding contribution<br />
from people in the <strong>District</strong><br />
Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+<br />
Youth events attendances<br />
reach no less than the<br />
minimum desired<br />
The projects short term<br />
outcomes will be achieved<br />
Satisfaction with library<br />
customers is maintained or<br />
continues to improve<br />
Awards and funds are<br />
dispersed according to the<br />
criteria annually<br />
Attendance numbers have<br />
been documented for each<br />
event, they have not been<br />
analysed over the year<br />
The programme is behind<br />
schedule due to staffing gaps<br />
but we aim to catch up by<br />
Dec <strong>2012</strong><br />
Satisfaction levels with those<br />
who use the current library<br />
service is 96% by those who<br />
use the service, and 84% if we<br />
count those who do not use<br />
the library<br />
All awards were distributed<br />
and most funds dispersed.<br />
A small sum of funds was<br />
transferred to the next<br />
year from the Creative<br />
Communities fund.<br />
√ √ √ √<br />
√<br />
√<br />
√<br />
√ √ √ √<br />
*We have found that a successful event held for youth has a good attendance. It can be difficult to measure what a ‘good’ attendance is. For<br />
each event, we estimate how many attendees there need to be to make it worthwhile. This is not necessarily based on cost and depends very<br />
much on the type of event. Some events (eg: dances) can have up to 100 attendees, whereas others (eg: photography) might only cater for 10.<br />
Financial Summary<br />
A financial summary for this activity is shown on the next page.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
<strong>Community</strong> Services - Activity Financial Summary<br />
Annual <strong>Plan</strong> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10<br />
2011/<strong>2012</strong> <strong>2012</strong>/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/<strong>2022</strong><br />
Operating Statement<br />
Operating Revenue<br />
<strong>District</strong> Wide Rates 111,231 125,256 183,171 245,584 207,940 164,669 171,323 178,239 186,694 193,770 202,051<br />
Targeted Rates 1,322,703 659,430 690,448 690,512 712,141 750,247 759,789 804,281 830,932 859,808 899,290<br />
Other Income 152,809 171,950 94,828 97,715 100,814 104,133 107,094 110,119 113,604 117,429 121,273<br />
Internal Interest Received 1,577 282 772 1,441 1,924 2,381 3,167 4,256 5,678 7,210 8,191<br />
Development Contributions 40,698 37,854 38,777 40,624 30,798 0 0 0 0 0 0<br />
Total Operating Revenue 1,629,018 994,772 1,007,996 1,075,878 1,053,617 1,021,430 1,041,373 1,096,896 1,136,908 1,178,217 1,230,804<br />
Operating Expenditure<br />
Employee Benefits 481,512 559,940 494,474 509,529 525,687 542,996 558,434 574,209 592,381 612,326 632,368<br />
Direct Operating Expenditure 317,643 340,680 394,078 459,864 429,735 395,907 406,697 420,157 437,672 451,487 468,077<br />
Internal Interest Paid 181,808 139,671 140,484 137,711 144,326 175,475 171,652 169,787 166,044 165,085 156,667<br />
<strong>Council</strong> Overheads Expenditure 443,281 502,662 513,161 529,880 537,137 550,357 562,698 574,570 594,306 605,220 620,842<br />
Depreciation 118,136 109,842 109,842 112,344 112,444 112,444 114,121 114,121 114,121 116,611 116,611<br />
Total Operating Expenditure 1,542,380 1,652,796 1,652,039 1,749,328 1,749,329 1,777,179 1,813,602 1,852,844 1,904,523 1,950,729 1,994,565<br />
Operating Surplus (Deficit) 86,638 (658,024) (644,043) (673,451) (695,712) (755,749) (772,229) (755,948) (767,615) (772,512) (763,761)<br />
Capital Statement<br />
Capital Expenditure<br />
Library 92,654 65,000 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131<br />
Total Capital Expenditure 92,654 65,000 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131<br />
Funds Required<br />
Operating Deficit 0 658,024 644,043 673,451 695,712 755,749 772,229 755,948 767,615 772,512 763,761<br />
Capital Expenditure 92,654 65,000 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131<br />
Transfer to General <strong>Council</strong> Reserves 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953<br />
Repayment of Internal Loans from Operating Income 956,180 162,794 184,904 176,509 172,428 132,823 136,712 171,372 182,237 203,973 236,812<br />
1,121,787 958,771 969,448 992,710 1,013,288 1,036,320 1,059,536 1,081,062 1,107,038 1,137,520 1,165,656<br />
Funded by<br />
Operating Surplus 86,638 0 0 0 0 0 0 0 0 0 0<br />
Transfer from Hanmer Springs Thermal Reserve 824,359 770,644 792,057 810,569 828,649 849,081 867,773 886,153 908,684 932,827 956,914<br />
Non Cash Expenditure - Depreciation 118,136 109,842 109,842 112,344 112,444 112,444 114,121 114,121 114,121 116,611 116,611<br />
Transfer from General <strong>Council</strong> Reserves 92,654 78,285 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131<br />
1,121,787 958,771 969,448 992,710 1,013,288 1,036,320 1,059,536 1,081,062 1,107,038 1,137,520 1,165,656<br />
H:\<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Workings\<strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> LTP Budgets <strong>2012</strong>-<strong>2022</strong> - Post Submissions.xls 31/05/<strong>2012</strong> 9:34 a.m.<br />
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Activity 2: Property<br />
Overview<br />
The Property activity includes the <strong>Council</strong>’s:<br />
• Buildings (housing, medical centres, and halls)<br />
• Public toilets<br />
• Swimming pools<br />
• Township maintenance (street cleaning, grass mowing,<br />
and township maintenance)<br />
Current Situation<br />
Buildings<br />
We own and maintain a variety of buildings as shown below:<br />
• Some commercial premises that are leased to small<br />
businesses<br />
• 34 housing units for the elderly – 12 in Amberley, 13 in<br />
Cheviot, 4 in Hanmer Springs and 5 in Waikari<br />
• 3 residential houses – 1 in Leithfield Beach, 1 in Cheviot<br />
and 1 in Hanmer Springs.<br />
• 5 water and sewerage depots<br />
• 4 <strong>Council</strong> service centres / libraries<br />
• 5 closed landfills<br />
• 5 transfer stations<br />
• 4 medical centres - Cheviot, Hanmer Springs, Rotherham<br />
and Waikari<br />
• 2 doctors houses - Cheviot and Rotherham<br />
• 14 halls throughout the <strong>District</strong><br />
Public Toilets<br />
Throughout the district, there are:<br />
• 14 toilet blocks located on reserves<br />
• 16 district public toilets sited either on reserves or<br />
<strong>Council</strong> freehold property<br />
• 2 privately owned toilets which we contribute to the<br />
maintenance of<br />
All of the district toilets have been built or renovated within the<br />
last 10 years so are in a very good condition. The toilets are<br />
cleaned mainly via contracted services.<br />
Swimming Pools<br />
Our most well-known pool complex is the Hanmer Springs<br />
Thermal Pools and Spa. This complex is not included in this<br />
section and has a chapter of its own under the same name.<br />
This section refers to our other public swimming pools located<br />
in Amberley and Rotherham. Both pools only operate during<br />
the summer months. The Amberley swimming pool is staffed<br />
and operates as a public swimming pool. It is covered, but<br />
not heated and is reliant on the sun to heat the water. The<br />
Rotherham swimming pool is not covered or heated either and<br />
is managed by the local swimming club and school, and they<br />
determine who uses the pool. Only the Amberley swimming<br />
pool has paid life guards and staff.<br />
Township Maintenance<br />
Ratepayers in each of the wards pay an amenity rate to fund<br />
the general maintenance of their townships. Managing the<br />
township maintenance this way seems to be popular by locals<br />
as this enables people to have a say on where their rates are<br />
spent. Ward and community type committees are very active in<br />
the <strong>District</strong> with regard to planning and maintaining their areas.<br />
We employ some gardeners and maintenance staff, but contract<br />
out most township work to contractors for the likes of grass<br />
mowing and general maintenance work.<br />
<strong>Plan</strong>s for the future<br />
Buildings<br />
A toilet expansion is planned for the Amberley <strong>Council</strong> Office<br />
in <strong>2012</strong>/13. The toilet block inside the building, beside <strong>Council</strong><br />
Chambers is the original toilet block built over 30 years ago and<br />
is inadequate to meet the needs of public meetings nowadays.<br />
The cost estimated to extend and update these toilets is<br />
$45,000.<br />
For some years now, it has been planned to move the Amberley<br />
Transfer Station from its current site due to the resource<br />
conditions expiring. A new location is nearing confirmation and<br />
the move will occur in the <strong>2012</strong>/13 year. The cost of building<br />
a new station has been carried over and into the long term<br />
budget from earlier years.<br />
The Cheviot medical centre is outdated and $1 million has been<br />
factored into the 2016/17 budget to either upgrade the existing<br />
facility or to build a new medical centre. A full project scope<br />
will be done before any building takes place to ensure that what<br />
is built does meet the needs of the community into the future.<br />
The $1 million has been based on the recent medical centre<br />
built in Rotherham. Inflation has been added to the million for<br />
the 2016/17 year.<br />
A major upgrade of the Hanmer Springs sport stadium is planned<br />
for 2015/16 at a budgeted cost of $1 million. This is an estimate<br />
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only at this stage. $30,000 of that fund will be advanced to the<br />
<strong>2012</strong>/13 year to undertake a feasibility study before the upgrade<br />
is done.<br />
Also in Hanmer Springs, it is planned to extend the community<br />
hall which has been found inadequate for the use it gets.<br />
$194,000 has been set in the 2014/15 budget with a further<br />
$10,000 to be spent in <strong>2012</strong>/13 to repair the hall stage.<br />
With all of the above capital expenditure planned, although<br />
these figures are mainly estimates until further scoping is done,<br />
we consider these amounts to be maximum amounts and of<br />
primary importance, is what local communities consider to be<br />
affordable.<br />
Public Toilets<br />
An upgrade of the old toilet block in Hanmer Springs is planned<br />
for <strong>2012</strong>/13 at a cost of $30,000.<br />
A budget provision of $90,000 has been identified in 2017/18<br />
to build a new toilet block in Rotherham. There are no public<br />
toilets currently there. However, before committing to this<br />
expenditure, the need for public toilets in Rotherham will be<br />
reviewed again when the next long term plan is developed in<br />
2015.<br />
Swimming Pools<br />
The Amberley swimming pool is reaching the end of its useful<br />
life and it is estimated that it will last another 7 years or so.<br />
This pool has been the subject of much discussion in the past,<br />
with a community desire to have a recreational swimming pool<br />
facility that is heated, covered and can operate all year round. It<br />
has been argued that this type of facility would attract a more<br />
patrons to the pool from throughout the district and other<br />
areas. The existing facility is being maintained in the meantime,<br />
but the Amberley Ward Committee has been investigating<br />
options to either replace or remediate the current pool.<br />
$3 million had been budgeted in the previous long term plan,<br />
but this provision has been removed until the Ward Committee<br />
is able to recommend their preferred course of action and the<br />
cost involved. The original $3 million was proposed to have<br />
been funded 3 equal ways; Amberley Amenities Rate, <strong>Council</strong><br />
general rate and community fundraising. No fundraising has<br />
yet taken place. Before a budget is identified and put to the<br />
public to consider, more information is being sought. Therefore,<br />
while there is no current budget identified at this stage, we are<br />
prepared to provide for this once we have more information to<br />
provide the community with first. We are planning to consult<br />
with the public once we have more information and facts to<br />
communicate so that people can make a considered opinion.<br />
Township Maintenance<br />
Various township maintenance plans are to occur over the<br />
next few years and this is shown in more detail in the Township<br />
Profile section earlier in this document.<br />
Our main aim is to continue to maintain the existing local<br />
facilities to a suitable standard depending on their use. The<br />
demand for local facilities and maintenance plans is assessed<br />
by taking into account residential, tourism and business growth<br />
patterns, facility usage patterns, surveys and submissions.<br />
Funding<br />
Buildings<br />
Rented Properties Operational Costs:<br />
• Rents are intended to be affordable, but consideration<br />
to the local market is given. In most cases, the rental<br />
covers all operational costs.<br />
• Any shortfall to be met from a local amenity rate (in<br />
the case of medical centres or local amenities), or from<br />
the <strong>District</strong> Rate on Capital Value (for pensioner and<br />
residential housing).<br />
Rented Properties Capital Costs:<br />
• Any portion of expenditure relating to growth may<br />
be funded from future lots or units of demand within<br />
the ward or community rating area via development<br />
contributions.<br />
Medical Centres Operational Costs:<br />
• 100% user charges with any shortfall funded by a medical<br />
centre rate within the relevant ward or community<br />
rating area.<br />
Medical Centres Capital Costs:<br />
• Loan funded by a medical centre rate within the relevant<br />
ward or community rating area.<br />
• If the <strong>District</strong> should contribute (in the past, there has<br />
been a $150,000 contribution made to each community)<br />
then the amount of the contribution is subtracted from<br />
the loan.<br />
• Any portion of expenditure relating to growth may<br />
be funded from future lots or units of demand within<br />
the ward or community rating area via development<br />
contributions.<br />
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Public Toilets<br />
Toilets Provided on Tourist Routes:<br />
• 100% <strong>District</strong> Rate or use of surpluses from the Hanmer<br />
Springs Thermal Reserve.<br />
Ward or <strong>Community</strong> Rating Area Toilets:<br />
• Included in Township Maintenance is 100% local amenity<br />
rate on the local ward or community rating area.<br />
• If the <strong>Council</strong> decides to apply some of the surplus<br />
from the Hanmer Springs Thermal Reserve, the amount<br />
of the contribution is subtracted from the <strong>District</strong> Rate.<br />
• If any of the Capital Expenditure caters for future<br />
growth, then that portion of the expenditure that<br />
relates to growth may be funded from future lots via<br />
Development Contributions and loans.<br />
Swimming Pools<br />
Operational Costs:<br />
• 100% Local Amenity Rate.<br />
Capital Costs:<br />
• This depends on who will use the pool. If mainly the<br />
local ward, then loan funded within the relevant ward<br />
or rating area. If use is also expected to be district wide,<br />
a portion may be decided to be funded via the <strong>District</strong><br />
Rate. <strong>Community</strong> fundraising may also be expected.<br />
Township Maintenance<br />
Operational and Capital Costs:<br />
• 100% local amenity rate.<br />
<strong>Council</strong> Owned Assets<br />
Buildings<br />
• Commercial premises<br />
• 34 pensioner housing units<br />
• 3 residential houses<br />
• 5 water and sewerage depots<br />
• 4 <strong>Council</strong> service centres / libraries<br />
• 5 closed landfills<br />
• 5 transfer stations<br />
• 4 medical centres<br />
• 2 doctors houses<br />
• 14 halls<br />
Public Toilets<br />
• 14 public toilet blocks<br />
• 16 district public toilets<br />
Swimming Pools<br />
• 2 public swimming pools (excluding Hanmer Springs<br />
Thermal Pools and Spa)<br />
Township Maintenance<br />
• Not applicable<br />
Maintenance and Operating Implications<br />
Buildings<br />
A property review is undertaken every several years to assess<br />
the state of the property portfolio and to enable a suitable<br />
maintenance programme to be put in place. Generally, all<br />
properties are maintained to a level that keeps them functional.<br />
Maintenance and upkeep is undertaken by contractors.<br />
Public Toilets<br />
The maintenance of these facilities, including cleaning and<br />
replenishing of supplies is contracted out.<br />
Swimming Pools<br />
Both swimming pools are aged pools and maintained to a basic<br />
level to keep them operational and safe. Both pools, particularly<br />
the Amberley swimming pool, have regular maintenance and<br />
repair costs to keep them functional. Most work on the<br />
Amberley pool is done by staff, but contractors are used for<br />
specialist jobs (such as plumbing).<br />
Township Maintenance<br />
We intend to retain ownership of the properties and facilities as<br />
outlined in this section. The local Ward Committees and Boards<br />
have the delegated responsibility to authorise improvements in<br />
their particular Ward through the use of amenity rating. For<br />
physical works, we employ some gardeners and cleaners (mostly<br />
part time), however most work in this activity area is done by<br />
contractors. Many of the <strong>District</strong>’s halls are managed by the<br />
local Reserve Committee or Hall Committee.<br />
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<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Assumptions and Risks<br />
Buildings<br />
It is assumed that we will continue to own the buildings we<br />
currently have, and we are not planning on increasing our stock.<br />
There is some risk in this, such as:<br />
• We only provide pensioner housing in Amberley,<br />
Cheviot, Hanmer Springs and Waikari. This may<br />
inadvertently have social and cultural impacts upon the<br />
age demographics in local communities as the elderly<br />
population becomes concentrated in certain areas<br />
only. This may result in higher demands on some local<br />
services and facilities. Demand for pensioner housing in<br />
some parts of the <strong>District</strong> at times is greater than our<br />
supply. This could result in some older people leaving<br />
the <strong>District</strong> when we are in fact keen for residents of all<br />
ages to be able to live in the community of their choice.<br />
Township Maintenance<br />
It is assumed that the current facilities as described in this<br />
section will continue to be needed by the local communities.<br />
It is also assumed that the communities expect us to maintain<br />
the facilities and amenities at the lowest cost possible. As the<br />
population in the <strong>District</strong> changes, there are possible issues for<br />
rate payers when having to fund facilities to match residents’ and<br />
visitors’ expectations. Given the rural nature of the district, and<br />
consequential small population, the costs can pose challenges.<br />
• The <strong>Hurunui</strong> <strong>District</strong> has an aging population that is<br />
expected to increase for the next several years. This<br />
is expected to place additional demand for low cost<br />
housing options for aging and retired people, as well<br />
as retirement homes and villages. We believe that this<br />
demand is best met by the private sector.<br />
We have assumed that the community will continue to support<br />
the need for us to build medical centres and keep them<br />
relevant to the needs of modern medicine to attract medical<br />
professionals to our <strong>District</strong>.<br />
Public Toilets<br />
We intend to continue to own, control and manage public<br />
toilets throughout the district and replace them or build more<br />
as required and can be properly justified. Discussion does take<br />
place from time to time on the funding model for public toilets,<br />
and whether or not the public should directly pay to use them.<br />
Free use has been assumed for this long term plan.<br />
Swimming Pools<br />
Aside from routine maintenance and repairs, there is no budget<br />
put aside to replace or significantly upgrade the two existing<br />
swimming pools. There is a risk that the cost of doing so will<br />
be greater than the community is prepared to pay. In the event<br />
that the pools do fail and are not replaced, the local community<br />
could be disadvantaged by not having this service at its disposal.<br />
It is assumed that there is significant public support to either<br />
replace or upgrade any pools before committing to the cost<br />
involved.<br />
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Goals and Performance Measures<br />
<strong>Community</strong> Outcomes<br />
1. A desirable and safe place to live<br />
2. A place where our traditional rural values and heritage make <strong>Hurunui</strong> unique<br />
Goals<br />
To provide and maintain<br />
buildings to support activities<br />
and recreational needs for local<br />
communities<br />
To maintain townships so they<br />
are neat and tidy<br />
How we will achieve our<br />
Goals<br />
Maintain, upgrade or build<br />
new medical centres<br />
suitable for modern<br />
medical procedures<br />
Consult with the<br />
community about the<br />
future of the Amberley<br />
swimming pool<br />
Investigate complaints<br />
about the standard of any<br />
<strong>Council</strong> owned facilities<br />
Undertake a residents<br />
satisfaction survey<br />
Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+<br />
Build a new medical<br />
centre (or significantly<br />
upgrade the existing one)<br />
Decide on the course of<br />
action to be taken (build<br />
or upgrade or abandon)<br />
depending on community<br />
views<br />
All complaints are<br />
followed up within 48<br />
hours<br />
Resident satisfaction<br />
over attractiveness<br />
and neatness of their<br />
townships is maintained<br />
or improved<br />
The Cheviot medical centre<br />
requires a rebuild or upgrade<br />
but identified as inadequate<br />
for the future<br />
The current swimming pool<br />
in Amberley is expected<br />
to last for another five or<br />
so years before it will no<br />
longer be usable. The Ward<br />
Committee is considering<br />
where to from here. There<br />
is no financial provision for<br />
a new or upgraded pool at<br />
this stage<br />
Complaints have been<br />
recorded in variable ways<br />
up until now. We have a<br />
customer service request<br />
programme to log all<br />
complaints and show when<br />
they have been actioned<br />
90% of residents considered<br />
their townships to be well<br />
kept and 85% said they were<br />
attractive<br />
√<br />
√<br />
√<br />
√ √ √ √<br />
√<br />
√<br />
Financial Summary<br />
A financial summary for this activity is shown on the next page.<br />
106
<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />
Property - Activity Financial Summary<br />
Annual <strong>Plan</strong> Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10<br />
2011/<strong>2012</strong> <strong>2012</strong>/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/<strong>2022</strong><br />
Operating Statement<br />
Operating Revenue<br />
<strong>District</strong> Wide Rates * 5,056 (45,358) (48,498) (52,863) (54,846) (56,270) (57,400) (59,202) (60,511) (62,646) (64,922)<br />
Targeted Rates 167,259 535,296 544,235 559,364 576,635 577,339 641,446 645,308 667,497 681,234 687,458<br />
Other Income 398,690 400,800 413,345 425,930 439,437 453,906 466,812 479,998 495,188 511,862 528,615<br />
Development Contributions 92,691 60,911 63,460 65,489 67,573 74,640 76,814 79,761 83,219 87,003 70,694<br />
Total Operating Revenue 663,696 951,649 972,542 997,921 1,028,799 1,049,614 1,127,671 1,145,865 1,185,394 1,217,453 1,221,846<br />
Operating Expenditure<br />
Employee Benefits 141,524 143,127 147,607 152,101 156,924 162,091 166,700 171,409 176,833 182,787 188,770<br />
Direct Operating Expenditure 793,641 756,820 728,428 747,323 787,895 790,847 820,904 848,284 871,794 900,126 934,203<br />
Internal Interest Paid 115,490 156,772 150,187 141,812 132,642 122,612 180,222 169,595 157,942 145,145 131,091<br />
<strong>Council</strong> Overheads Expenditure 151,854 114,233 116,946 121,232 122,518 125,543 128,272 131,046 136,017 137,683 141,156<br />
Depreciation 170,037 222,270 224,071 280,936 305,541 308,155 336,171 337,952 339,809 357,573 359,604<br />
Total Operating Expenditure 1,372,546 1,393,222 1,367,238 1,443,403 1,505,520 1,509,249 1,632,268 1,658,287 1,682,395 1,723,314 1,754,825<br />
Operating Surplus (Deficit) (708,850) (441,573) (394,696) (445,482) (476,721) (459,635) (504,597) (512,422) (497,002) (505,861) (532,979)<br />
Capital Statement<br />
Capital Expenditure<br />
Rental Property 20,000 0 31,176 0 0 0 0 0 0 0 0<br />
Public Toilets 0 0 0 0 0 103,563 0 0 0 0 0<br />
Medical Centres 0 0 0 0 0 1,150,700 0 0 0 0 0<br />
Halls 15,000 25,000 2,078 206,170 2,221 2,301 2,389 2,486 2,592 2,710 2,835<br />
Pools 0 2,000 2,078 2,148 2,221 2,301 2,389 2,486 2,592 2,710 2,835<br />
Township Maintenance 11,637 88,500 26,500 20,939 20,548 21,288 34,043 21,779 255,940 25,069 26,222<br />
Total Capital Expenditure 46,637 115,500 61,832 229,256 24,991 1,280,154 38,821 26,751 261,124 30,490 31,892<br />
Funds Required<br />
Operating Deficit 708,850 441,573 394,696 445,482 476,721 459,635 504,597 512,422 497,002 505,861 532,979<br />
Capital Expenditure 46,637 115,500 61,832 229,256 24,991 1,280,154 38,821 26,751 261,124 30,490 31,892<br />
Transfer to Special Funds 70,040 46,842 48,609 50,378 51,941 54,008 55,527 57,492 59,967 62,769 51,242<br />
Transfer to General <strong>Council</strong> Reserves 72,060 81,825 70,805 86,710 88,621 77,878 96,163 97,945 99,910 105,020 107,305<br />
Repayment of Internal Loans from Operating Income 96,275 97,719 121,146 130,750 141,353 157,247 146,300 158,477 171,627 185,796 195,231<br />
993,862 783,459 697,089 942,577 783,627 2,028,921 841,408 853,086 1,089,629 889,936 918,648<br />
Funded by<br />
Transfer from Hanmer Springs Thermal Reserve 355,401 395,953 365,540 377,741 398,142 400,218 411,160 433,147 433,624 447,155 473,019<br />
Non Cash Expenditure - Depreciation 170,037 222,270 224,071 280,936 305,541 308,155 336,171 337,952 339,809 357,573 359,604<br />
Transfer from General <strong>Council</strong> Reserves 0 0 22,585 0 0 88,786 0 0 0 0 0<br />
Transfer from Special Funds 36,000 0 0 0 0 0 0 0 0 0 0<br />
Capital Expenditure funded through Internal Loans 432,424 165,236 84,892 283,900 79,944 1,231,762 94,077 81,987 316,196 85,208 86,026<br />
993,862 783,459 697,089 942,577 783,627 2,028,921 841,408 853,086 1,089,629 889,936 918,648<br />
* Surpluses from Other Property and Residential Housing is used to offset the <strong>District</strong> Wide Rates<br />
H:\<strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> Workings\<strong>Hurunui</strong> <strong>District</strong> <strong>Council</strong> LTP Budgets <strong>2012</strong>-<strong>2022</strong> - Post Submissions.xls 31/05/<strong>2012</strong> 9:34 a.m.<br />
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Activity 3: Reserves<br />
Overview<br />
The Reserves activity includes the <strong>Council</strong>’s:<br />
• Parks and Reserves<br />
• Cemeteries<br />
Current Situation<br />
Parks & Reserves<br />
There are currently 160 parks, reserves and recreation areas<br />
in our district. This includes the Hanmer Springs Thermal<br />
Reserve, now known as the ‘Hanmer Springs Thermal Pools and<br />
Spa’. This section does not discuss the pools and spa as this<br />
is a significant activity on its own right. Please refer to the<br />
Hanmer Springs Thermal Pools and Spa section of this plan. The<br />
reserves discussed in this section cover the 29 parks (picnic<br />
areas/playgrounds), 10 camping grounds and 146 developed and<br />
undeveloped reserves and plantation areas in the district. The<br />
reserve portfolio now includes approximately 6.0 hectares of<br />
the Queen Mary Hospital Historic Reserve in Hanmer Springs<br />
(formerly owned by the Canterbury <strong>District</strong> Health Board).<br />
Our reserves are highly regarded by those who use and<br />
benefit from them. <strong>Council</strong>’s committee structure includes<br />