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 />


<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 />


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 />


<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 />


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 />


<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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


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 />


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 />


www.hurunui.govt.nz<br />

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 />


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 />


<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 />


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 />


<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 />


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 />


<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 />


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 />


<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 />


www.hurunui.govt.nz<br />

<strong>Hurunui</strong> <strong>District</strong> Profile<br />

Kaikoura<br />

<strong>District</strong><br />


<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 />


www.hurunui.govt.nz<br />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

• 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 />


<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 />


www.hurunui.govt.nz<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 />


<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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


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 />


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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<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 />

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 />

√ √ √ √<br />

√ √ √ √<br />

√ √ √ √<br />

√<br />

√<br />

√ √ √ √<br />

Financial Summary<br />

A financial summary for this activity is shown on the next page.<br />

Happy Valley Road, Emergency Preventative Maintenance<br />


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 />


www.hurunui.govt.nz<br />

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 />


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 />


www.hurunui.govt.nz<br />

<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 />


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 />


www.hurunui.govt.nz<br />

<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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<strong>Hurunui</strong> <strong>Community</strong> <strong>Long</strong> <strong>Term</strong> <strong>Plan</strong> <strong>2012</strong> - <strong>2022</strong><br />

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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />


<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 />


www.hurunui.govt.nz<br />

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 />