Long Term Community Plan 2012-2022 - Hurunui District Council

hurunui.govt.nz

Long Term Community Plan 2012-2022 - Hurunui District Council

ft Long Term Plan 2012-2022

Hurunui Community Long Term Plan - 2012-2022


www.hurunui.govt.nz

66 Carters Road

PO Box 13

Amberley 7441

Phone: 03 314 8816

Fax: 03 314 9181

email: info@hurunui.govt.nz

web: hurunui.govt.nz

Front Cover - Overlooking the Waiau Township from the Leader Road.

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Hurunui Community Long Term Plan 2012 - 2022

Contents

Introduction

5 Welcome from the Mayor and CEO

9 About the Plan

11 How Your Rates are Spent

12 Key Issues

20 Financial Strategy

32 Statement Concerning Balancing

of the Budget

34 Community Outcomes

36 Aligning Our Long Term Plan with the

Government’s Drivers for Economic

Growth

40 Water Management

43 Sustainability

Township Profiles

46 Hurunui District Profile

52 Amberley Ward Profile

55 Amuri-Hurunui Ward Profile

60 Cheviot Ward Profile

62 Glenmark Ward Profile

65 Hanmer Springs Ward Profile

Council Activities

69 Introduction

71 Water Supply

79 Sewerage

84 Stormwater and Drainage

88 Roads and Footpaths

94 Community Services and Facilities

96 Community Services

102 Property

108 Reserves

112 Environment and Safety

115 Emergency Services

119 Resource Management

122 Compliance and Regulatory

Functions

126 Waste Minimisation

130 District Promotion

135 Hanmer Springs Thermal Pools and Spa

141 Governance

Financial Information

146 Financial Introduction

148 Forecasting Assumptions

153 Statement of Accounting Policies

171 Funding Impact Statement (and Rates

System)

182 Rates System

193 Reserve Funds

198 Council Controlled Organisations

Council Policies

200 Policy Introduction

201 Development Contributions Policy

217 External Liability Management Policy

219 Investment Policy

221 Rates Remission for Biodiversity

Policy

222 Rates Remissions on Land Affected by

Natural Calamity Policy

223 Reserves Funding Policy

224 Revenue and Funding Policy

251 Significance Policy

258 Treasury Risk Management Policy

262 Internal Financing Policy

Appendices

265 Representatives of our District

266 Waste Management and

Minimisation Plan Summary

268 Hurunui Waiau Zone Implimentation

Programme

270 Water and Sanitary Services

Assessment Summary

272 Levels of Service Water and Sewer

275 Rates: Sample Properties

281 Independent Auditor’s Report

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Introduction

5 Welcome from the Mayor and CEO

9 About the Plan

11 How Your Rates are Spent

12 Key Issues

20 Financial Strategy

32 Statement Concerning Balancing

of the Budget

34 Community Outcomes

36 Aligning Our Long Term Plan with the

Government’s Drivers for Economic

Growth

40 Water Management

43 Sustainability

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Hurunui Community Long Term Plan 2012 - 2022

Winton Dalley

Mayor

Welcome from the Mayor and CEO

Andrew Dalziel

Chief Executive Officer

Hello everyone and welcome to Council’s Long Term Plan 2012

- 2022. In our introduction, we summarise some important

themes and points to help you gain an overall understanding of

what is in this ten year plan and what it may mean for you and

for our district.

We review our 10 year plan every three years and in the two

in-between years, we prepare Annual Plans based on the 10

year plan. We do our best to plan appropriately for the coming

years, but things will and do happen that are beyond our control,

hence the need for regular reviews. For example, no amount

of planning would have prepared us totally for the devastating

earthquakes that hit the Canterbury Region. Although the

Hurunui District suffered comparably less direct damage than

Christchurch City, Waimakariri and Selwyn Districts, the impact

on us has still been huge and had a major influence on this

plan. When we last reviewed our plan three years ago, we were

optimistic about the economy picking up more quickly than it

has done. We were optimistic that our district would grow

at a much faster pace than has actually been the case. Our

recent updated population estimate of 11,330 residents shows

low growth. With the census being postponed because of the

earthquakes, we will not be able to confirm our population

and district statistics until the results of the 2013 census are

released in 2014.

One of the most challenging aspects of planning is finding the

right balance between delivering expected levels of service at an

affordable cost. We invited you, our residents and ratepayers, to

submit on our proposals in March and April 2012. About 130

of you did just this and as a result of your input, we were able

to confirm many of our proposals and include other matters

we had not considered previously. We constantly challenge

ourselves over what is reasonable, what is sustainable into the

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future, who should pay, and how to meet the expectations of

our communities. The Government has expressed concern

over high rating increases and expects councils to be restrained.

Whereas we agree, unfortunately dramatic increases in our

insurance costs, the new legislative requirement to meet New

Zealand drinking water standards, and funding sewer and

stormwater improvements, mean that we too have higher rating

increases than we would have preferred.

As a result of the Council’s decisions after considering public

submissions, the increase in the 2012/2013 year has reduced

from 6.94% (what we said in the draft Long Term Plan), down to

5.83%. The downside is the flow on effect to the 2013/2014 and

2014/2015 years’ rates which will increase from 4.80% to 5.77%

for 2013/2014 and from 4.62% to 5.37% in the 2014/2015 year.

The primary causes for the increases in our rate projections

can be attributed to the following items, all of which are further

explained in the ‘key issues’ section of this plan.

• Insurance has significantly risen as a direct result of the

Canterbury earthquakes and other natural disasters,

such as the Queensland floods. We have traditionally had

comprehensive insurance cover, and we have budgeted to

continue to do so.

• We face huge capital outlay to become compliant with the

legislated New Zealand Drinking Water Standards. The

good news is that we will no longer have any of our water

schemes on permanent boil water notices; but it comes at a

price. We will be treating the water of our at-risk drinking

water intakes in the 2012/13 year. This will enable us to be

compliant in the short term but this is only an interim step.

In the long term we will need to upgrade our schemes by

2027. To make this affordable, we will commence rating

for the estimated $14 million (in today’s dollars), in the

2015/2016 year.

• In recent years, we have incurred significant costs in

upgrading some of our water supplies, sewer schemes and

stormwater systems. The work undertaken has resulted

in increased debt for those activities and we are at a stage

where the interest and debt repayments need to be made

and these have to be funded through rates.

There are a number of other aspects that influenced the

development of this Plan. We were guided by our proposed new

vision of Community partnership in growth and wellbeing,

as well as our core principles:

• Focus on core services

• Financial responsibility and affordability

• Continuous improvement in service to everyone in our

district

• Facilitate appropriate growth in the district

We have confirmed this new vision through the long term

plan consultation process. It builds upon our previous vision

which was based on a ‘wellness’ concept (Hurunui Wellness:

“In Hurunui, we live the lives the rest of the world would

love to live”). We wanted to further define it and convey that

everything we do, we do in partnership with our communities.

With your support for our plan and the services, infrastructure

and facilities we provide and you pay for, we have confidence

that we will be meeting the aspirations or expectations of our

communities, which contribute to wellness and wellbeing.

Important contributors to this Plan have been the many people

in our district who are members of our boards and committees.

In particular, we have taken into account the views of the Ward

Committees and the Hanmer Springs Community Board on the

submissions received affecting each of their respective wards.

These groups, having been chosen by their local communities,

provide valuable insight into what is considered important

locally.

All submissions were considered in the context of affordability,

priorities for the district and Government’s new bill, ‘Better

Local Government’. This bill, expected to be passed around

September 2012, aims to provide better clarity about council’s

roles, stronger governance, improved efficiency and more

responsible fiscal management. The Government is concerned

about increased public spending and debt levels and is requiring

both central and local government to improve the efficiency

of delivering public services and take a prudent approach to

public debt. The new bill proposes that councils will have a new

purpose -“providing good quality local infrastructure, public

services and regulatory functions at the least possible cost to

households and business”. This will replace the current purpose

which references a responsibility to the social, economic,

environmental and cultural well-being of communities. In

addition, the Government is proposing to introduce legislation

around fiscal responsibility to limit council expenditure growth

to no faster than inflation and population growth. A strong

Hurunui 10-Year Timeline

2012/13

Representation Review

Nine New Miox Water Treatment Installations

Targeted Tourism Rate and

District Promotion Review

Earthquake Prone Building Assessments

Cheviot Library Relocation

Local Government Elections

Earthquake Prone Building Assessments

Review of the District Plan completed

2013/14

2014/15

Central Government Elections

Earthquake Prone Building Assessments

Hanmer Springs Community Hall Extension

Long Term Plan Review

Drinking Water upgrade

Hanmer Springs Sewerage Treatment

Plant Upgrade

Hanmer Springs Sports Stadium

2015/16

2016/17

Local Government Elections

Cheviot Medical Centre Upgrade or

Rebuild

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Hurunui Community Long Term Plan 2012 - 2022

message coming through is for council’s to stick to core business.

All this has an impact on what we decided to provide for now

and into the future.

Thanks to your support, we have confirmed a number of the

proposals that we put to you. For example, we will proceed

with our intent to review our method of rating for tourism

and general district promotion in 2012/13. This is one example

of where your views and suggestions have confirmed that it is

timely to review our rating model. You also told us that you

agree with our plan to assess earthquake prone commercial

and public buildings in the district sooner rather than later in

the interests of public safety, despite not being required to do

this. Likewise, through your submissions, we have been able to

confirm our direction to provide funds for legal advice relating

to resource consents, district plan changes and policy matters;

and to do our best to maintain our roading levels of service

despite there being less funding available.

Many of you submitted on local issues affecting your areas.

Through hearing from you, we have been able to confirm our

intent to: provide for a new or upgraded medical centre in

Cheviot in 2016/17; move the Cheviot community library from

the school into the Cheviot service centre in 2012/13; continue

to work with you to finalise any proposal for a swimming pool

in Amberley; enhance a number of facilities in Hanmer Springs

(eg: the sports ground and community hall); and continue our

work to secure access to the Hanmer Heritage Forest. We

also confirmed our proposal to fund the Hanmer Springs

Community Board through Hanmer Springs ratepayers (rather

than district wide rates). Few people mentioned the proposal

to build a public toilet in Rotherham in 2017/18 funded through

the district rate, but we agreed to retain the budget for this in

the meantime but will retest the need for this again in 2015

before going ahead. More information about all of these items is

in the ‘Key Issues’ section of this plan.

We received a large number of submissions about access to

the Hurunui lakes (Lake Sumner, Lake Taylor and Loch Katrine).

Although this was not something we highlighted in our draft

Plan, it was clearly of importance to many of you. Through the

submission process, we were able to confirm our intention to

continue working with other groups as well as the Department

of Conservation to help resolve the common issues affecting

access. Potentially this is a complex situation requiring not only

significant funding, but resolving issues over public and private

land ownership.

We have included into this plan, a number of other items that

came to our attention through submissions, such as: a $5,000

contribution toward the roof repair of the Balcairn Public Hall

(via Amberley amenity rates); to continue contributing $5,000

per annum via a district wide rate toward the Sport NZ Rural

Travel Fund; approved expenditure of $45,000 toward the septic

tank replacement at the Gore Bay Camp; to spend $80,000

over two years to upgrade or replace the Cheviot Hills Reserve

public toilets; to extend our Smokefree Policy to include more

outdoor areas gradually and within existing budgets; to spend

$5,000 to promote responsible dog owner behaviour later this

year; to adjust our wording in our Waste Minimisation Plan to

show our desire to work toward zero waste to landfill.

In light of the restrictions we face, we also had to say ‘no’ to a

lot of people who requested money or initiatives that required

money. Whereas these submissions had merit, they were

either out of our scope or unaffordable, particularly given the

Government’s bill, or we did not consider them to be essential

at this time. Some of the requests we declined included: $25,000

toward the Wellbeing North Canterbury’s manager’s salary;

assistance toward the aquisition of a doctor’s house in Hanmer

Springs; $7,500 per year to develop a sister city relationship

with Honghu City, China; employing a full time forest ranger

in Hanmer Springs; introducing a $5 bounty fee for possums;

contributing $25,000 toward a men’s support programme to

reduce suicide; introducing an eagle breeding programme.

As a result of the continuing downturn in the tourism industry in

Canterbury, the Council has reforecast the revenue projections

for the Hanmer Springs Thermal Pools & Spa. As a result, the

revenue derived from the Thermal Pools operation was reduced

from $6.671 million to 6.4 million. There was also a reduction

of $65,000 in surplus forecast from the cafe operation and a

$31,000 reduction in other revenue sources.

With the benefit of some quantity survey estimates, there was

a reassessment of the capital expenditure for the changing

rooms and administration building for the pools operation from

$1 million to $2 million.

For the first three years, the reduction in the revenue has

resulted in the Council spending more on reserve - based

expenditure than it is earning from the surpluses derived from

the Hanmer Springs Thermal Pools & Spa. but the Council is

comfortable in funding this from utilising some of the existing

reserve balance that has been generated by the surpluses in the

past.

CentralGovernment Elections

Rotherham public Toilets

Local Government Elections

2018/19

2017/18 2019/20

Representation Review

Long Term Plan Review

2020/21

Central Government Elections

Long Term Plan Review

2021/22

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How Council services are rated can be contentious and difficult

to understand. We use a variety of different rating methods,

for example, we rate some services across the district and

others across wards only. We also fund some activities through

targeting particular users (as how tourism is currently funded).

The Financial Strategy and Revenue and Funding Policy in this

Plan both provide information to give a better understanding of

how activities and service are funded and the rationale behind

that. The Financial Strategy is a new requirement under the

Local Government Act.

Full details of the rate movements year by year are shown in

the Funding Impact Statement in this Plan. We must emphasise

that amenity and targeted rate increases vary considerably

across the district according to the projects planned for each

ward. For example, there are differing levels of expenditure for

upgrades and debt repayment for each water scheme; there is a

new medical centre proposed for Cheviot; a number of projects

planned for Hanmer Springs; and so on. The sample property

analysis in the appendices at the back of this document, gives a

picture of the impact of rates for the 2012/2013 year for the

various rating areas. You can find out what the rates are for your

property for any year up to year 10 of this plan by contacting us

directly or going onto our website.

Despite the increase to our rates, we have taken a conservative

approach to this plan. We assure you, as ratepayers and

residents, that we have applied our best efforts to develop this

long term plan diligently, to create what we believe is a robust

and comprehensive strategic framework for Hurunui for the

next ten years, notwithstanding the challenges and uncertainties

we all presently face. Finally, a sincere thank you to those of

you who took the time to write a submission to the draft plan

and to those of you who presented their submission personally

to the Council. As a result of your efforts, you have helped us

determine this final long term plan.

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About the Plan

Introduction

The Local Government Act 2002 requires all councils to have a

Long Term Plan (LTP). The Hurunui Community Long Term Plan

is our LTP.

This plan is the combined effort of Council and the district’s

community. Many of our sub committees have been actively

involved in preparing plans for their townships and wards

and their efforts are reflected in this plan. So are the views

of the many individuals who told us what they consider to be

important for the future of our district. Many people have put

considerable numbers of hours into the development of this

plan. The plan covers a 10 year period from 1 July 2012 to 30

June 2022.

Updating the Plan

This plan will be updated and revised every 3 years. The plan is

one of the main ways you can influence what the Council does

every 3 years.

In the years between each Hurunui Community Long Term Plan

review, we will prepare an Annual Plan which will focus on the

budgets of the particular year of publication. This information

will be taken from the Hurunui Community Long Term Plan.

Guide to the Plan

The following is a brief guide about the information contained in

each section of the plan.

Introduction - This section sets out key issues that we want

to bring to your attention and want to hear from you on.

This section also contains a new and important piece of this

plan – the Financial Strategy. This will tell you about our main

financial challenges and what our financial position is – how we

can afford the services that we provide and how we intend to

continue to fund these. You will find out how your rates are

spent, and the community outcomes we consider important to

our communities.

Township Profiles – Here you will find key information about

the district each ward and community rating area, including,

demographic data, key priorities and amenity rates.

Hurunui Community Long Term Plan 2012 - 2022

well as financial statements required by law.

Policies – Provides the key Council policies (including financial

policies and principles) to assist with decision making and

planning.

Appendices – This section contains various summaries of

strategies and plans that are important to include to provide

more context and information relating to our services.

Monitoring the Plan

At the end of each financial year, we complete an Annual Report.

In this report, we will state how we have performed against

what we said we were going to do in this plan and at what cost.

Changing the Plan

If any significant changes need to be made to the Hurunui

Community Long Term Plan before it is formally revised at

each three year interval, the proposed changes will be publicly

notified to give anyone affected an opportunity to have their say

before Council decides whether or not to make the proposed

changes.

Our ‘Significance Policy’ guides us in determining the importance

of an issue and the possible impact on the community. When an

issue is deemed significant, we will consider how best to consult

you. The significance policy is included in the Policy section.

The Plan Does Not Include GST

When reading this document, please be aware that all of

the figures quoted in the LTP are GST exclusive except the

‘Statement of Rating Policy’ and the ‘Development Contributions

Policy’.

Inflation

The plan has been developed on an inflation adjusted basis

to comply with accounting standards. Details of the inflation

assumptions used are outlined on page 158.

Council Activities – Gives useful information for each Council

activity such as water, roading, community services etc, and

financial information for each activity, as well as any major

priorities or projects planned.

Financial Overview – This section is where financial

information is summarised. It gives the 10 year capital

expenditure programme and forecast financial statements as

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Relationship Between the Hurunui Community Long Term Plan and Other Documents

Annual

Repor t

Knowing what the Council

has achieved

Community

Outcomes

Knowing what is important for the

future wellbeing of our community

Knowing how it s going

to be paid for

Annual

Plan

Knowing what the Council is doing to

meet community outcomes

Hur unui Community

Long Ter m Plan

The LTP integrates strategies, policies and activities in the

context of identified community outcomes, and in a way that

promotes public accountability and integrated decision making.

All planning that we do lines up with the LTP, as well as other plans,

such as our asset management plans and waste management

plans, and linking to other non-mandatory strategies such as

the Hurunui Community Road Safety Strategy.

The activities set out in this LTP contribute to the achievement

of the community outcomes, and promote the District’s social,

cultural, economic or environmental wellbeing.

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How Your Rates are Spent

The Council’s Projected Income and Expenditure for 2012 / 2013

Hurunui Community Long Term Plan 2012 - 2022

Operating Income of $30.1 million for the 2012/2013 year

Hanmer Springs

Thermal Pools and

Spa

32%

Other Income

10%

General Rates

19%

Targeted Rates for

Water Supplies

2%

NZTA Subsidies and

Other Grants

11%

Development

Contributions

1%

Targeted Rates for

Other Services

25%

Operating Expenditure of $30.3 million for the 2012/2013 year

Governance

2%

Corporate Services

16%

Water Supplies

11%

Sewerage

2%

Stormwater and

Drainage

0%

Roads and Footpaths

19%

Hanmer Springs

Thermal Pools and

Spa

25%

District Promotion

2%

Waste Minimisation

6%

Compliance and

Regulations

2%

Community

Services

Property

3%

4%

Reserves

4%

Emergency Services

1%

Resource

Management

3%

Capital Expenditure of $10.8 million for the 2012/2013 year

Hanmer Springs

Thermal Pools and

Spa

25%

Corporate Services

5%

Water Supplies

19%

Sewerage

8%

Emergency Services

2%

Reserves

2%

Property

1%

Community Services

1%

Stormwater and

Drainage

3%

Roads and Footpaths

34%

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Key Issues

Introduction

In the draft long term plan, we highlighted a number of issues

that we wanted your view on before we came to a final decision.

We received many submissions on these topics and this section

sets out the decisions we made about each issue. Table 2 at the

end of this section shows how each item will be funded.

Drinking Water Standards

In recent years, the Government has placed strong emphasis

on the quality and availability of drinking water for all New

Zealanders, irrespective of where they live. The standard of

drinking water throughout the country has been variable and

in many places, particularly rural New Zealand, below standard.

New Zealand drinking water standards have been developed and

recently revised, and they require all councils to make significant

advancements to meet these standards.

Most of the drinking water in the Hurunui District fails to meet

the new drinking water standards and currently, eight of our

communities are advised to boil water before they drink it.

The drinking water standards are concerned mainly with three

specific areas: water quality; how we will know our drinking

water is meeting the standards; and what we will do about it if it

doesn’t. There are substantial fines for not complying with the

new legislation – up to $200,000 for an offence and $10,000 for

each day of continued non-compliance for each of our 22 water

supply sources.

In addition, the Health (Drinking Water) Amendment Act 2007

requires all drinking water suppliers to have Public Health Risk

Management Plans (PHRMP) in place outlining how to safely

manage drinking water. This is significant because we have a duty

to ensure the drinking water we supply is safe to drink. (The

same applies for all other councils and private suppliers.) In our

district, we have 22 water supply sources and each needs its own

PHRMP to be completed at various times between July 2014 and

July 2016, depending on how each water supply is defined (based

on the number of customers each supply serves).

These requirements are financially challenging. We have no

option but to plan toward compliance, but the cost to do so is

immense. To upgrade our water systems to be fully compliant,

we have estimated that it will cost $14 million in today’s dollars,

and a further $484,000 per year solely to operate the upgraded

schemes. This caused us a great deal of concern and we have

raised the affordability issue for a small, rural council such as

ours to meet these considerable costs with the Ministry of

Health. We have come to a compromise to achieve drinking

water compliance no later than ten years after the final approval

date for each respective PHRMP, which will be between 2024

and 2027. The compromise involves two main phases to manage

the affordability issue.

First Phase

As a minimum, we will provide drinking water to our consumers

that is bacteriologically free and is safe to consume. To do this

we will need to lift all permanent boil water notices on our

current schemes. This will be achieved using improved interim

technologies to our at risk water intakes that will subsequently

meet these desired outcomes.

Therefore the first phase proposes nine new Miox installations

costing $758,000 for the 2012/2013 financial year. The at risk

drinking water intakes are: (1) Ashley Rural; (2) Waiau Rural;

(3) Cheviot – Parnassus; (4) Cheviot – Blythe; (5) Cheviot –

Kaiwara; (6) Hurunui Rural – No.1; (7) Hurunui Rural – Peaks;

(8) Hurunui Rural – Lower Waitohi; and (9) Waipara Township.

The existing MIOX plant serving the targeted Cheviot and Gore

Bay Township community will be moved to the intake to serve

and improve the full water reticulation pipeline.

This capital costs and on-going operational costs involved

is to be met by a special targeted rate for each dwelling that

benefits from the water treatment. It is estimated to cost

affected ratepayers approximately $100 per year to fund both

the operational and capital costs. This will affect an estimated

1,463 dwellings in total. We plan to stage the implementation

of this funding over three years, therefore those ratepayers will

be charged $33 in 2012/13, $66 in 2013/14, and the full $100

in 2014/15. The exception to this special targeted rate is for

the consumers on the Ashley Rural water scheme. The cost of

their Miox installation will be met solely by those properties

connected to that scheme as part of their standard, unit rate.

This is because the majority of the consumers of the Ashley

Rural Water Supply reside outside the Hurunui District and

already have a special rating arrangement in place.

All other district-wide intakes are either safe deep source

water or have not had any e-coli non-compliance over the last

three years, thus perceived as safe at present. These will be

continuously monitored for further improvement if the ‘safestatus’

changes. This approach will unfortunately not eliminate

the issue of temporary boil water notices from time to time,

when tested and triggered e-coli contamination is related to

post-intake drinking-water pipeline breaches, e.g. pipe breaks,

etc.

Second Phase

The second phase involves the upgrading of the water schemes

to full compliance, and will mean the end to the Miox treatments.

The capital cost in today’s money is $14 million, and we plan to

implement this between 2024 and 2027. To manage the cost,

this will be funded through a district wide general rate. This

is different to how we currently fund water supplies, which

is through targeted rates for individual schemes. We do not

believe the targeted method of funding is possible or a fair way of

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Hurunui Community Long Term Plan 2012 - 2022

funding for any of our ratepayers to upgrade our drinking water

to legislated standards. There are simply too few people on the

smaller community schemes in particular, to be able to pay for

these upgrades. By funding via a district wide rate, the cost is

spread across all ratepayers, hence making it more affordable

and achievable over all. This does mean that everyone pays,

whether or not on a private water scheme.

Although the capital works required won’t start being built until

2024, we are going to start rating from 2015/16 to build up

funds which will offset the full capital cost when it is necessary.

The cost of this will be $41 per property and this rate fund,

along with accumulating interest, should provide a fund of

approximately $3 million to assist with meeting the capital cost.

The method by which the balance of the capital work and the

on-going operational costs will be met, will be refined over time.

This will again be a topic for discussion when we review our

long term plan again in 2015.

Sewer Improvements

Disposal of treated wastewater direct to waterways has been

a common practice nationally in the past, but this approach is

no longer considered sustainable or environmentally acceptable.

In our district, we have seven wastewater treatment plants

using oxidation ponds as an effluent treatment process. These

treatment plants are located at Amberley, Hanmer Springs,

Cheviot, Greta Valley, Motunau Beach, Hawarden and Waikari.

We are going to do more work to our Hanmer Springs

wastewater treatment plant so that the treated wastewater

is disposed onto land instead of into the waterway (which

is a resource consent condition). We are investigating the

best options available to us in Hanmer Springs for both land

acquisition and improved effluent treatment. The cost for this

sewer land disposal work is $1,200,000 factored into year

2015/16 and will be paid for by the Hanmer Springs Ward

ratepayers. Other planned work includes improving dissolved

oxygen levels in the treatment ponds to eliminate issues such

as odour and reduced treatment efficiencies. For this work we

plan to spend $220,000 in 2012/13.

Cheviot’s wastewater treatment plant (WWTP) disposal

system is spray irrigation to land or onto the overland flow area

when the land disposal area is saturated. We are investigating

possible long-term treatment options (long term capacities; soil

permeability and content analysis; seasonal effects, flow/water

quality/ecology of Crystal Brook and neighbouring groundwater

quality assessments) associated with treatment and disposal of

wastewater from the Cheviot WWTP. We will work with the

Canterbury Regional Council to agree on the best solution

going forward in 2012/13. This plant’s resource consent expires

11 September 2014, when the Canterbury Regional Council will

decide if improvements are required to renew this resource

consent. No disposal to waterways is allowed. We are planning

to pay for this through usual operating costs at no increase to

ratepayers.

Amberley and Waikari have existing treated effluent disposal

to land, with Greta Valley and Motunau Beach using a primary

option of disposal to land and secondary option to waterway

when the land is saturated, for example, seasonal wet weather

conditions. Hawarden’s system is disposal to waterway until

changes are effected through the resource consent renewal,

which will be in 2027 or subject to any new requirements under

the Natural Resources Regional Plan (NRRP) review currently

underway at Canterbury Regional Council. We will consider

more natural methods of disposal, such as wetland filtration

if proven feasible and cost effective. All systems are closely

monitored and audited by the Canterbury Regional Council for

compliance with stringent consent conditions to protect and

enhance the environment surrounding these treatment plants.

Stormwater Improvements

We have been working on a programme of stormwater

improvements to the Amberley township and Amberley

and Leithfield Beach communities since 2008 when we had

significant property flooding following high rainfall events.

The improvements have taken a disappointingly long time

to implement due to the resource consent process and

Environment Court hearings process. So far, only two major

physical works have been completed – the flood diversion

from Dock Creek along Lawcocks Road, and a piped outfall of

the Leithfield Outfall Drain to the sea. By the time this plan

is finalised, the flood diversion works in the Amberley swamp

area (to include an outlet culvert under Stanton Rd) and the

area from Dry Gully to the Mimimoto Lagoon will have been

completed, as well as the new pipelines in Amberley.

A flood flow diversion from the Eastern Drain across to the

Amberley North lagoon is planned in 2012/13 to complete the

flood mitigation works. Detailed design and land ownership

issues still have to be finalised. $294,000 has been budgeted for

this work (to do detention ponds and upgrades), with a further

$84,000 in the 2016/17 budget for Chamberlain Park filters.

This will be funded through a special rate across Amberley Ward.

Applications for global consents to discharge stormwater from

the Amberley urban area and new residential developments in

Hanmer Springs will be made in the 2012/13 year. Both of these

will be funded via a separate rate for the Amberley Wards and

Hanmer Springs as well as development contributions.

We will be recruiting a stormwater engineer in 2013/2014 to

manage this area of our work. This engineer will be responsible

for developing district-wide stormwater catchment and

management plans, and undertake the range of tasks required to

ensure we have effective stormwater systems in place, inclusive

of appropriate maintenance regimes.

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Targeted Tourism Rate and District Promotion

Our tourism promotion and limited district promotion is

currently carried out through one of our council committees

called the ‘Hurunui Tourism Board’. The way we fund this is

through a ‘targeted tourism rate’ which has had its share of

controversy. Those who pay are ratepayers and businesses

who are deemed to be involved directly in the visitor / tourism

sector. From this sector, we collect $286,000 annually with an

additional contribution of $45,000 from the Hanmer Springs

Thermal Pools and Spa. We are concerned that we don’t yet

have the funding model right and intend to review the targeted

tourism rate and explore ways of funding a broader concept of

‘district promotion’ or tourism in a different way.

We think we can better promote the district in all aspects by

adopting a broader approach, rather than just focusing only on

tourism. The issue of who benefits from district promotion and

who should fund it is a challenging issue and we want to develop

a better way to do this. We will continue with the targeted

tourism rate up to the end of the 2012/13 (and have included it

throughout the 10 year budget for the meantime), to allow time

for a viable alternative to be developed.

Having taking into account the submissions we received on

this topic, we will look at how we might phase out the current

targeted tourism rate in 2013/14 when a new model would take

effect. We will begin working on this before the end of 2012

around what a possible alternative model would look like. This

will include looking at how to improve our promotion of the

district. At this stage, we are unsure whether this new model

will retain the Hurunui Tourism Board, or see the development

of a new committee or board. We will continue with what we

have in the meantime until an alternative is found.

Cost of Insurance

It will be no surprise to anyone that the cost of insurance has

significantly risen as a result of the Canterbury earthquakes. The

damage to Christchurch in particular and the resulting insurance

liability has been unprecedented anywhere in the world before.

It is now well known that globally, the insurance industry had

to have a major rethink of how it could continue to provide

insurance cover and still be affordable. Given that the Hurunui

District is tectonically active and we are periodically subjected

to floods, rural fires, snow and winds, we have traditionally been

well insured and cover our infrastructure and liabilities.

Up until July 2011, the cost of our insurance was $212,858 per

annum. This is the total bill for all Council infrastructure and

liabilities, including the Hanmer Springs Thermal Pools and Spa.

Our new insurance arrangement now costs $564,414 per year

to cover the same infrastructure as we did in the past. This

significantly contributes to our 5.84% increase in rates as the

approximate increase in insurance across the organisation of

$350,000 alone represents 2.73% of the total rates that were

struck in the 2011/2012 year.

The process for renewing the insurance policies is likely to be

more stringent in the future and there could be the possibility

that some of our assets may not be covered by insurance, as has

been the case for Christchurch City and Waimakariri District

Councils for the 2011/2012 year. It is our intention to remain

fully insured at all times.

Earthquake Strengthening

We have completed the first stage of a desktop review of

potential earthquake prone buildings in the Hurunui district for

all council owned buildings and are now currently carrying out

the second stage which will include all privately owned buildings.

The desk top review should be completed by December 2012.

The completed desk top study will show how many commercial

and public buildings in the district are suspected to be earthquake

prone. At this early stage we have provisional numbers of 368

commercial buildings, both privately and council owned. 150

are estimated to be built before 1976, and up to 90 of them are

suspected to be earthquake prone, and therefore could pose a

potential danger to the public. We own 68 of the commercial

and public buildings built before 1976 and of these, we have

confirmed 48 that are included on the first stage of the desktop

study. Engineers are currently carrying out an initial evaluation

procedure (IEP) of some of these buildings which will confirm

whether or not they are earthquake prone.

The desk top review will only provide information about

buildings without looking at them in a detailed structural

manner. There are certain types of building that are considered

to be more earthquake prone than others and it is these that

we will be focusing on. They are usually unreinforced concrete

and masonry buildings, but there may be others that are also at

risk. The assessment process will be carried out in accordance

with the Earthquake Engineering Society of New Zealand

guidelines. We will need qualified engineers to actually assess

each of these buildings to confirm to us whether or not the

building is potentially earthquake prone and that owners should

be advised. To do this IEP assessment (without any actual repairs

or remedial work), it will cost approximately $69,000 to do

90 earthquake prone buildings spread evenly over the first 3

years of the Long Term Plan. We are taking an active approach

to identify and upgrade buildings at risk following the lessons

learned from the Christchurch earthquakes. Obviously, we do

not want a repeat of that disaster in our district.

Once we have the IEP assessments from the independent

engineers, we will then be able to inform property owners that

we suspect that their building is earthquake prone. They will

then be required to carry out a detailed engineering assessment

to show how to remedy any risks to the building. Because most

of the buildings are council owned, the same will apply to us. At

this stage, we have not made a budget provision for any actual

strengthening, repair or demolition work. We plan to decide

on this once we have the information on a case by case basis.

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Hurunui Community Long Term Plan 2012 - 2022

Other owners of buildings will need to do the same once they

have information provided to them. There is of course, nothing

stopping anyone getting their own independent assessment at

their own cost in the meantime, or seeking a second opinion.

We do not have the in-house expertise to perform this work.

We do know that structural engineers are highly sought after

in the Canterbury region and we are making this plan on the

proviso that we will be able to contract the skills we need to

undertake this work.

We consider this work to be vital because of the threat to life

if buildings collapse. The cost for this work will be paid for this

through the general rate for three years from 2012/13 because

of the potential impact on the general public. The general rate is

funded through a portion being assessed as a fixed charge per

property and the balance assessed on the capital value of the

property.

Cost to Defend RMA/Court Action

Each year we need to get legal advice or representa tion, or

specialist advice about a variety of matters relating to resource

consents, district plan changes and policy de velopment.

Traditionally, we have tended to under-budget for these costs

as many of them are unknown when we prepare our annual

budgets. However, last year we were aware of a number of

situations that were going to incur legal or consultancy costs

and we did make a budget provision based on that knowledge.

Although we will continue to face unexpected legal costs into

the future, we have decided to continue to budget what we did

last year for each year of the long term plan, that is, $105,000

(adjusted for inflation) annually. This will be funded through a

District Rate. There will be situations where legal costs are far

in excess of our budget. The most recent example of this was

the cost to defend MainPower’s Mt Cass Wind Farm resource

consent. The cost to ratepayers was approximately $300,000

(allowing for the successful costs award against Mainpower

from the Environment Court of $136,394). Legal and specialist

advice comes at a price and we do not always have in-house

expertise for every scenario that comes to us.

Road Funding

Our roads are maintained and built using subsidy funds from

New Zealand Transport Agency (NZTA) and money collected

through rates. This excludes state highways which are funded

and maintained solely through NZTA. Three years ago,

central government deliberately cut maintenance funding to

all district councils, as it decided to focus on capital works to

national state highways (Roads of National Significance) and

the Auckland roading network needs as priorities. Central

government believes that “increased funding for State Highway

construction will bring benefits for national economic growth

and productivity, particularly given that State Highways carry

most inter-regional freight and link major ports, airports and

urban areas (Government Policy Statement 2012)

In 2009, all Road Controlling Agencies (RCA), of which we are

one, were told by the Minister of Transport to “do more with

less” in terms of road maintenance financial subsidy allocations.

We were tasked to find better and smarter ways of looking

after our roads without relying on the previous levels of NZTA

subsidy funding. To qualify for financial subsidy assistance, all

RCA’s are to use Activity Management Plans (AMP). When up

to date, our AMP provides us with a better understanding of our

current assets in terms of location, age and condition. This sets

our works programme for the following three years in terms

of maintenance, operations, renewals and capital works. This

programme is submitted to NZTA as part of the Regional Land

Transport Programme (RLTP). Our funding was cut by $600,000

per annum on average on our RLTP for the full funding cycle

covering the years from 2009 to 2012. Although the approved

subsidy funding was 4.5% more than the previous year’s budget,

it was substantially less than that required to maintain the

levels of service we wanted for our roading infrastructure. No

escalation (or inflation) was added for year 2 and 3 of this

programme which placed further pressure for us to “do more

with less”. In the meantime, we have restructured our road

maintenance contracts to get the most we can for our money

and to maintain levels of service for our local roads. Indicative

budgets have been released by NZTA for the three year period

from 2012 to 2015, which is 5% less than our RLTP submission.

This will result in approximately $226,000 less funding per

annum across all three years. We will continue to retain our

funding as previously indicated as unsubsidised work and the

rate impact for roading will continue as previously stated in the

plan. We have made the assumption that the reduced level of

NZTA funding will continue through the life of the LTP. This has

left us with a major challenge. Our Asset Management Plans

(AMPs) tell us when, how and why we need to do work on

each of our roads to ensure maximum whole-of-life for this

asset (maximum return on investment approach); but we do not

have the required subsidised income to maintain our roading

network to the level our AMPs stipulate.

We have done our best to drive greater efficiencies within

our current road maintenance contracts, without affecting the

current levels of service. The improved collaboration between

our contractors, suppliers and us using a ‘best-for-asset/bestfor

contract’ approach, has provided lower contract rates

that may allow us to maintain our current service levels until

2014/15 (assuming no untoward event happens that damages

our infrastructure). At the end of this period, our maintenance

contracts will be renewed with cost escalations included. This

is where we have a problem. NZTA have declared that they

will not pick up contract price escalations through their road

maintenance subsidy scheme. In the meantime, we have allowed

for inflation adjustments to the roading costs (using the inflation

assumptions) and also assumed that NZTA will continue to

meet their share of those costs that are currently subsidised,

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again based on the assumption that the financial assistance

rate will not change over the ten year period.

If NZTA do not include inflation in future subsidies, and maintain

the levels of cuts to date we will have to pass the difference in

costs to our ratepayers annually to maintain our current levels

of service and keep the road asset life in check. If we don’t,

this will leave us with a future financial shortfall that is further

susceptible to maintenance cost increases through peak oil and

bitumen cost increases in particular. We can either continue

to put up our annual rates to provide more local unsubsidised

funds to keep our roads in their current condition, or we can

accept that there will be a marked deterioration in our road

conditions (structurally, appearance and driving quality). The

impact of this is that our roading assets life will reduce and will

eventually devalue over time, thus not meet their initial designed

criteria outcomes.

The key problem that we face is that the level of cost that has

been allowed for in the Long Term Plan falls significantly short

of what was provided for in the AMP. The AMP was developed

prior to the change in central government policy and before we

were able to achieve greater efficiencies through our current

road maintenance contracts. The difference over the ten years

between what was scheduled in the AMP and what has been

provided in the plan amounts to a total of $18 million. Based on

the assumption that NZTA will provide the amount of subsides

allowed for in the plan, should we incur the level of cost in

the AMP, then that additional $18 million would need to be

covered by rates or other funding sources . We are confident

with achieving greater efficiencies in the current contracts so

that the roading network can be maintained at the current level

of service until 2014/15. Through submissions to the draft LTP,

some of you told us that you consider it essential that we do all

we can to prevent the roads deteriorating, even if that meant

paying more rates. To continue to meet the current level of

service, now and into the future, may require greater ratepayer

funding or a change to the current accepted levels of service.

This topic will be an ongoing discussion for us into future years

including the next long term plan review in 2015 and AMP

roading review 2014.

Amberley Swimming Pool

The life of the Amberley swimming pool and our awareness of

the community desire for an improved pool, whether that is

a major upgrade or a new facility, have been of interest to us

for some years now. Through the submisssions to the draft LTP,

we received 23 submissions on this subject with the majority

supporting this community desire. In 2008, we did a review

of the life-expectancy and replacement costs of the Amberley

swimming pool and concluded that the present pool was good

for at least 10 more years. In the 2009 long term plan draft,

we allowed $3 million in the 2018/19 financial year to build a

new heated, covered pool. The rating model to pay for the this,

allocated the greater costs to the Amberley Ward, and a lesser

amount to outlying areas on the basis of an assumption of usage

beyond Amberley. Consultation on this matter then, gained good

public support for the proposal, and it was decided to advance

the project to the 2013/14 year. The budget provision was made

on the basis that $1 million of the $3 million would be derived

from fund raising and that the Amberley community would take

the responsibility for this.

Three years have since passed and no fund raising activities have

taken place. Nor have we collected any rates to build up a fund

for a future pool. The Amberley Ward Committee established

a working group in 2011 to investigate the possibilities

for the Amberley swimming pool and to come up with a

recommendation to best suit the needs of the community. The

working group concluded that the site of the existing pool is

the best available and so commissioned a specialist engineer’s

report on options to upgrade the present complex. This was

undertaken in early 2012. The resulting suggestions include a

major upgrade of the existing pool costing just under $2 million

which is well within the original $3 million budget. However, the

estimated operational cost of running an all year heated pool,

amounts to between $260,000 and $340,000 per year. This is

after taking into account the entry fees, swimming lessons and

other revenue making pool activities.

Although the community desire is to have a heated indoor

pool that can operate either all year round, or at least most

of the year, the operational cost is significant and exceeds any

previous thinking about how much it would cost to actually

run the pool. Very few public swimming pools in New Zealand

make a profit or break even, and they are reliant on significant

subsidies from rates to operate. The Amberley ward ratepayers

have traditionally met the operational cost from amenity rates.

However, the estimates for running an improved, heated, all year

round pool is likely to exceed Amberley ratepayers ability or

desire to pay, and is substantially more than they pay now. There

is more work ahead for the working group, the Amberley Ward

Committee and the Council before a proper proposal with all

the facts is able to be put to the community.

For these reasons, we have decided to not make a budget

provision in this long term plan at this stage. We have requested

a report to come to a council meeting in the 2012/13 year to

explore options and costings for an upgraded pool. If supported,

our intention is to include a proposal for an upgraded pool

and funding model into the 2015/25 Long Term Plan. In the

meantime, we have an expectation that those wanting an

improved pool become involved and commence fund raising.

The Amberley Ward Committee and the rest of the district will

need to have the opportunity to say what they are prepared

to fund before we can decide who should pay. We intend to

properly consult with you over this matter. For us to have the

confidence to make a significant budget provision, we need to

be able to give you the full story on the cost, who will pay and

what you will get for your money. In the meantime, we have

budgeted for the continued operation of the current swimming

pool on the assumption that it may still be operational up to

2020, depending on what is decided before then.

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Hurunui Community Long Term Plan 2012 - 2022

Cheviot Library/Service Centre

We received a large number of submissions regarding moving the

Cheviot community library out of the Cheviot Area School and

into the Cheviot Service Centre on the main street of Cheviot.

Several of you were not in favour of this option, but many of

you did endorse this concept. We endorsed the Cheviot Ward

Committee’s recommendation that the library is moved. This

will enable the library and council services to be delivered from

the one site by one person. The school library will remain in its

current location.

The service centre has not had an upgrade for years and

therefore needs some alterations and refurbishment to create

a more vibrant community space. A working group comprising

of a mix of local Cheviot people has been selected to work on

the detail of the move and to create a new look for the service

centre / library to capture the unique essence of Cheviot and

provide a service to meet the needs of the locals. Detail such

as the opening hours, days of the week to be open, design of

the interior and exterior of the building, etc are to be worked

through. The timetable for the project will also need to be

worked through, but it is planned take place in the 2012/13 year.

$100,000 has been set aside for the building alterations which

will not incur an increase in rates.

Cheviot Medical Centre

We own four medical buildings in the District – in Hanmer

Springs, Rotherham, Waikari and Cheviot. We originally got

involved in this area years ago to help attract qualified medics

into the district to take up private practices without the

deterrent of capital cost, and provide health services that are

of a good quality, affordable and meet the needs of our rural

communities. This is an on-going challenge as attracting doctors

and nurses who are prepared to work and live in rural New

Zealand is an issue that Hurunui does not face alone. Times

have changed and the ideal of finding General Practitioners

wanting to set up practice in a rural community and stay for

life (and work alone) has become unsustainable. However

important considerations for future planning still include having

high quality medical facilities and a strong network of medical

practitioners and providers to support each other.

Whereas we do not recruit medical staff for the district, we

believe we do have a role to provide medical facilities and

assist in facilitating good outcomes. We regularly meet with

key providers of medical services for the District, including the

Canterbury Rural Primary Health Organisation, Canterbury

District Health Board and local practitioners, etc. These

discussions help us keep up with the issues our GPs and medical

centres are facing and helps us work together to find solutions.

One of the areas we are able to assist is building medical centres

that cater for current and future demand.

Three of our current medical centres are modern, while Cheviot

requires an upgrade or replacement in the near future. This

upgrade has been signalled by its inadequacy to deliver modern

health care into the future. We have allocated $1 million (to

be inflation adjusted) in year 2016/17 to build a new one. The

project will be funded by an internal loan and servicing of the

loan over 20 years is proposed that this be funded through the

Cheviot Medical Centre Rate which is charged to each property

in the Cheviot Ward. This will result in the Cheviot Medical

Centre Rate moving from approximately $30 per ratepayer

to $120 per ratepayer from 2016/17. Some submissions were

received on this topic and all supported improving the Cheviot

Medical Centre. There is still work to be done before a rebuild

or upgrade is undertaken to make sure this is good use of your

money. We will want to be confident that a new building is

needed as opposed to upgrading the current facility, and we also

need to be sure that this is what the community needs. Further

consultation will be done closer to the time before any work

is done.

Rotherham Public Toilet

We have purchased a section on the main road through

Rotherham adjacent to the new Amuri Medical Centre, for a

village green. The section is ideally suited to a public toilet for

motorists passing through Rotherham en-route to the Inland

Road. For motorists travelling to Kaikoura from the West

Coast, this would be the first public toilet since Springs Junction

(i.e. without detouring into remote sites such as Boyle River

or to Hanmer Springs). A toilet on this section will also be

useful for local residents using the village green for picnics or

recreation (playground) or on their way to or from the Health

Centre. This is a long term proposal as we intend building the

toilet in the 2017/18 year. Because it is a long way off and we are

not certain of the demand in this location, we will seek public

views on this proposal again when we review this long term

plan in 2015. In the meantime, $90,000 has been included in the

budget to be funded through the District Rate.

Hanmer Springs Facilities

1. Sports Ground

The Hanmer Springs Community Board intends to upgrade the

Hanmer Springs sports ground as it is out of date and will not

meet the needs for future growth and demand. Before doing

any work however, the Board will commission an engineer’s

report on the project to determine the extent of works that

can be carried out. They plan to commission this in 2012/13

to prepare for the physical works to be done in 2015/16. The

report will more accurately scope the project including whether

the project is staged over more than one year. The estimated

cost involved is $30,000 for the engineers report, and $1 million

for the actual development work.

The engineers report will cover the feasibility of including the

following facilities in the upgrade:

• A full basketball size court that can cater for

other indoor sports such as badminton, volleyball,

bowls, netball etc

• A ground floor kitchen facility able to cater for

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conferences, weddings, sports club functions, etc

for up to 500 people

• A bar that also provides for the above

• A storage area that will hold equipment, chairs,

tables, and other items used for group functions

• Toilet facilities to serve people using the sports

stadium inside and out

• Area/s suitable for meetings, lounge and

relaxation area, and an administration office

• Changing facilities for sports teams including

shower blocks

• Two Squash courts

• A gymnasium area

There was a support through the submissions for an upgraded

sports ground. Because the Board is not prepared to spend

more than $1 million, this may mean they need to prioritise

what is included in the upgrade. Affordability will be a key

consideration.

2. Community Hall Extension

The Hanmer Springs Community Board will proceed with the

previously planned extension to the Hanmer Springs community

hall and has allocated $194,400 to do this in 2014/15. They will

spend $10,000 in 2012/13 to finish the work on the existing

stage floor and frontage that users of the hall have been asking

for.

The extension to the community hall is planned to include:

• Upgrading the existing toilets on either side of

the stage

• Replacing the existing changing rooms with

a large, open, multipurpose space that can be

partitioned off to create several changing rooms

as required. The open area can also be used for

art displays, meetings, etc, as well as changing

rooms for performances.

• A storage area for lighting, sound, stage props, etc

• Entry access for wheelchairs and large items (for

stage productions, etc)

As with the Hanmer Springs sports ground upgrade, the Board

will do its best to maximise the budget so that the extension to

the hall caters for future demand as well as the current demand,

but do not expect to go beyond the allocated budget. Once

again, support for this project was received, particularly from

Hanmer Springs residents.

Funding the Hanmer Springs Community Board

The Hanmer Springs Community Board members are elected

every three years in line with the local authority triennial

election process. There are 6 Board members, with five being

elected on the Board, and the 6 th member being the appointed

local Councillor.

The selected members are paid an amount determined by Council

in consultation with the Community Board. The Councillor is

not remunerated for being on the Community Board as he is

paid as a Councillor through the Council remuneration pool.

The selected members are paid 50% from amenity rates (from

Hanmer Springs Ward ratepayers) and 50% funded as part of

the cost of Governance through the Governance Rate, which

is a District Wide Rate. The members, current remuneration is

shown in table 1.

The Community Board works for the Hanmer Springs Ward

residents and ratepayers. Consequently, we think it appropriate

that all of their remuneration is paid through local amenity

rates from Hanmer Springs ratepayers, rather than a portion

coming from the District Wide Rate. We have four Ward or

Community Committees set up in other Wards that operate in

a similar way to a Community Board, with similar delegations,

but members are not paid. Therefore, we have decided that the

Hanmer Springs community will fund the total remuneration

for the Community Board. Based on the current level of

remuneration paid to the Community Board Members, the total

cost to the Hanmer Springs Amenities Rates will be $23,178 per

annum commencing from 2012/13.

Security of Access to Hanmer Forest Tracks

The Hanmer Forest is a significant tourism asset to the district.

It is estimated that 70% of visitors to the Hanmer Springs

Thermal Pools and Spa (approximately 511,000 people) visit the

forest each year. Public access to the forest has been provided

for since the early 1900s resulting in the development of an

extensive recreational track network. Legal public access to the

forest was lost when ownership of the land was transferred to

Ngai Tahu. The continuance of the current informal public access

depends on the goodwill of the Iwi and the forest leaseholder.

The Hanmer Forest covers 9212 hectares in area and is

comprised of native forest, exotic production and research

forests, and public parks and reserves. The forest adjoins the

Hanmer Springs urban boundary and extends north to the

Hanmer Range ridgeline, Mt Isobel, Jollies Pass and Jacks Pass;

east to Boundary Stream; south to the Hanmer River; and west

to the Rogerson River catchment and Mt Tabletop.

Ngai Tahu Forest Estates Ltd are the largest landowner at nearly

55%, the Department of Conservation (DOC) manages 45%,

and HDC less than 1%. Although the minor landowner, the HDC

land provides critical linkages from the Hanmer Springs village

via Conical Hill and the 22ha Dog Stream/Brooke Dawson/

Tarndale reserves adjacent to the forest.

There has been some community concern that access to the

Ngai Tahu land can be closed at any time by the landowner.

However, Ngai Tahu have expressed their commitment to

Hanmer Springs and agree how important the tracks are. They

have indicated that they want to be part of future development

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Hurunui Community Long Term Plan 2012 - 2022

of the township and future planning for the Hurunui district, and

are prepared to work with us over the forest’s long term use. A

number of submissions were received on this matter supporting

our intention to work toward securing long term use to the

forest. A representative group of Councillors has been identified

to progress further discussion with the owners of the forest to

find a way forward. No funding has been allocated.

Table 1: Community Board Members Remuneration

Position

Remuneration

Chair of the Community Board

$7,902 pa

Other Members (each)

$3,819 pa

Table 2: Funding the Key Issues

Issue Cost Method of Funding Commencement

Drinking Water Standards

$14,000,000 Capex

$484,000 Opex

District Wide 2015/16

Miox & new water treatment $758,000 Targeted to Dwellings affected 2012/13

Hanmer Springs Sewer Improvements $220,000

$1,288,560

Hanmer Springs Sewer Rate 2012/13

2015/16

Targeted Tourism Rate $286,000 Targeted Tourism Rate on-going

Insurance $550,000 Spread across organisation 2012/13

Earthquake Strengthening $71,162 District Wide Rates 2012 - 2015

RMA/Court Action $105,000 District Wide Rates 2012/13

Cheviot Library/Service Centre $100,000 District Wide funding 2012/13

Cheviot Medical Centre $1,150,700 Cheviot Medical Centre Rates 2016/17

Hanmer Springs Sport Stadium $1,077,379 Amenity Rates and

Development Contributions

2015/16

Hanmer Springs Community Hall Extension $194,400 Hanmer Springs Amenity Rate 2014/15

Rotherham Public Toilet $90,000 District Wide funding for

Public Toilets

2017/18

Hanmer Springs Community Board

$23,178 Hanmer Springs Amenity Rate 2012/13

Amberley Swimming Pool

$0 No budget allocated yet

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Financial Strategy

Executive Summary

Core Principles

In reviewing the Long Term Plan (LTP), we revised our core

principles and these have been used as the basis in developing

our Financial Strategy. These principles are:

• Focus on core services

• Financial responsibility and affordability

• Continuous improvement in service to everyone in our

district

• Facilitate appropriate growth in the district

• Maximise Thermal Pools and Spa profit

Key Factors in our Financial Strategy

Within the context of our core principals, the following have

been identified as the key factors that shape the Financial

Strategy over the life of the Long Term Plan:

• We want to ensure that our services remain affordable

• We want to maintain or improve our current levels of

service

• Our key funding mechanisms are:

a Rates, both District Wide and Targeted rates

b Surpluses derived from the Hanmer Springs

Thermal Pools and Spa

c The use of the Internal Financing structure which

provides internal loans for communities requiring

funding and also an avenue for communities to build

up funds to meet funding requirements in the future

In taking care to ensure that our services remain affordable,

we have had modest rate increases over the past three years.

However, due to various factors facing us, particularly the

increased cost of insurance and compliance with drinking water

standards, rates will increase at levels well above what was

anticipated when the 2009-2019 LTP was prepared. (Refer to

the Key Issues section).

We are carefully monitoring our levels of service for roads

due to reduced government subsidies (refer to Key Issues

section). With the exception of roading, we intend to maintain

our levels of service in most areas. With regards to improving

drinking water levels, treatment of sewage and developing some

community facilities, we will be in a position to improve the

levels of service that we are currently providing. We also aim

for continuous improvement to our customer service.

We continually review funding options available. The use of

the internal financing structure allows communities to carry

out required capital expenditure and manage the cost of those

works over a longer period. As a result, this smoothes out the

rating impact and allows communities to start setting aside

funds to meet the capital projects for the future.

The Hanmer Springs Thermal Pools and Spa is a successful

Council owned business and we proactively use the profits to

offset costs relating to the reserves in the District which results

in lessening the rating burden. For the first three years of the

Long Term Plan the Council is funding more reserve based costs

than it is earning from the surpluses from the Hanmer Springs

Thermal Pools & Spa and by doing so, is utilising some of the

reserve balance that has been generated by the surpluses in

the past.

Our Financial Position at the Start of the LTP

Period

Our financial position at the start of the Long Term Plan period

is set out in the 2011/2012 Annual Plan which shows:

• The total rates were set at $12.8 million; of which $5.3

million are in District Wide rates and $7.5 million are

in targeted rates.

• Total income from non-rate sources was $16.9 million,

which includes $9.6 million in gross revenue derived

from the Hanmer Springs Thermal Pools and Spa.

• Total Operating Expenditure is forecast at $23.5 million

and Capital expenditure for the 2011/2012 year is

expected to be $9.2 million (which includes a level of

Capital that has been carried over from the 2010/2011

year).

• External Debt was expected to be $13.5 million at

the end of June 2012; however, the forecast has been

reduced to $12.5 million due to deferring some projects

as part of the LTP budget preparation.

• Internal Financed Debt is expected to total $16.6

million as at 30 June 2012.

• Total Assets as at 30 June 2011 was $335 million, of

which $253 million related to our infrastructure.

Our Financial Position at the End of the LTP Period

As at the end of June 2022, the key components of our financial

position are forecast as follows:

• Total rates revenue will increase by 55% over the ten

years to reach $19.9 million in the 2021/2022 year.

• Total income from non-rate sources will be $22.3

million (including $13.8 million in gross revenue derived

from the Hanmer Springs Thermal Pools and Spa).

• Total Operating Expenditure will be set at $39.6 million.

• Capital expenditure over the ten years will amount to

$77.3 million with the amount expected to be required

in the 2021/2022 year at $7.7 million.

• External Debt will peak at $22.5 million in the 2015/2016

and 2016/2017 years, but will reduce to $12 million by

June 2022.

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Hurunui Community Long Term Plan 2012 - 2022

• Total Assets as at 30 June 2022 is expected to reach

$494 million.

Rates, Increases and Limits

The overall rates increases for the next three years are as

follows:

• In 2012/2013, the increase is 5.83% (this is one of the

largest increases required for some years and is primarily

due to factors outlined earlier such as insurance and

drinking water, and funding some significant capital

expenditure projects over the last few years).

• In 2013/2014, the increase is 5.77%

• In 2014/2015, the increase is 5.37%

The Local Government Act now requires Councils to set limits

on rate increases. Because a simple inflation target as the basis

for setting a rate increase limit does not reflect the forecast

costs that will be imposed on us, we have opted to set the

rates increase limits at 2% above the forecast increases. As a

result, the limit for the 2013/2014 year will be 7.77% and for the

2014/2015 year, the limit will be 7.37%

Because of our rating structure, the overall increase in rates

will not be consistent for each property throughout the district.

It will depend on the targeted rates that are charged to that

particular property and also the capital value of the property.

External Debt and Limits

1. The Local Government Act also requires us to set a limit on

our external debt levels. These debt levels are set out in our

External Liability Management policy on page 222 and the

limits are based on ratios centred on the level of income.

These ratios are considered standard for the sector and the

maximum debt is set at 100% of our Total Income and 10%

of our Total Equity. This means that for the 2012/2013 year,

where total income is forecast at $30.3 million and Total

Equity forecast at $341.7 million, that the maximum level of

debt is $30.3 million. For 2012/2013, the anticipated level

of debt is $18.5 million. We plan to be well within prudent

limits for the period of the plan.

Implications of the Council’s Financial Strategy

The Local Government Act requires us to assess whether we

have the ability to provide and maintain existing levels of services

and meet additional demands for services within the rates and

debt limits as set out within the financial strategy.

We face potential issues in the future regarding the level of

funding for roading expected from the New Zealand Transport

Agency (NZTA). We estimate that there is a $15 million

difference over the ten year period of the LTP between what

our Asset Management Plans tell us is needed to maintain our

roading network and what we have built into this draft LTP

taking into account the NZTA funding. (See the Roads and

Footpaths Activity section on page 89).

We are not contemplating taking on debt greater than $22.5

million and the maximum amount of interest expected to be

charged on the external debt is budgeted at less than $1.3

million. Therefore, with the exception of the Roading Network

due to circumstances outlined earlier, we believe we have the

ability to maintain existing target levels of service and to meet

additional demands for service within those debt limits.

Core Principles

Our revised core principles have provided the base in developing

our Financial Strategy for this LTP. These are further explained

in this section.

1. Focus on Core Services

The focus on core services is consistent with the intent of the

Local Government Act. As a rural district, our focus has always

been on key infrastructure – roading, water and sewerage. Since

2008 after sever flood events, we have undertaken significant

work to improve our stormwater and drainage assets. While

community services and facilities (eg: halls, libraries, public

toilets, reserves etc), may not be seen as essential services, they

do form an important part of the community infrastructure.

We have undertaken significant community projects in the last

three years including the town centre upgrades in both Hanmer

Springs and Amberley, as well as constructing a new Medical

Centre in Rotherham.

2. Financial Responsibility and Affordability

Affordability of rates was a key aspect in the preparation of the

2009-2019 LTP and in that respect; we managed to maintain

modest increases in the rates over the subsequent three year

period. In preparing the 2012/22 LTP, affordability is still an

important factor as well as spending responsibly to minimise

rate increases. Costs do increase and we are ever mindful of the

need to ensure that these costs are appropriately funded, while

ensuring our debt levels remain manageable.

3. Continuous Improvement in Service to Everyone

in Our District

In the context of affordability, we aim to improve our customer

service to everyone who needs our services. This includes

our residents and ratepayers, as well as visitors to our district.

Our annual resident satisfaction survey provides us with good

information to gauge how we are doing and where to improve.

Whereas actual levels of service in most cases are intended on

being maintained, our aim for continuous improvement relates

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to getting the best out of our contracts for service, having

helpful friendly staff, being responsive to complaints and service

requests by getting back to customers quickly, etc. Regarding

actual levels of service, these are discussed under the ‘Key

Factors for Our Financial Strategy’ part of this section.

4. Facilitate Appropriate Growth in the District

We want our district to continue to grow and that not only will

more people want to live in the Hurunui, but that those who are

here already, will want to stay. Growth in our population helps

spread rates across a wider number of ratepayers and helps to

retain key services, such as medical services, schools and shops,

etc.

We are mindful that growth needs to be sympathetic toward

the environment and the district’s rural values which is why

we talk about “appropriate growth”. Accordingly, we need to

ensure that our planning rules (as we review our District Plan)

do meet the objectives of the District as a whole.

5. Maximise Thermal Pools Profit

We are in the envious position of owning one of New Zealand’s

key tourist facilities - the Hanmer Springs Thermal Pools and

Spa (HSTP&S). The success of the HSTP&S has had a flow on

effect to other businesses that service the tourist industry. The

HSTP&S is sited on a reserve vested to the Hurunui District

Council in accordance with the Reserves Act. Because of this,

we are able to use the profits from the HSTP&S to fund other

reserves that we administer. This includes the Hurunui Memorial

Library (also known as the “District Library”), the public toilets

and cemeteries throughout the district, as well as a wide range

of recreational reserves. This is a particular point of difference

from other Local Authorities in New Zealand who will generally

have to fund these types of functions through rates.

Key Factors for our Financial Strategy

Within the context of our core principals, we have identified the

following key factors that shape our Financial Strategy over the

life of this LTP:

• We want to ensure that our services remain affordable

• We want to maintain or improve our current levels of

service

Our key funding mechanisms are:

a. Rates, both District Wide and Targeted rates

b. Surpluses derived from the Hanmer Springs Thermal

Pools and Spa

c. The use of the Internal Financing structure which

provides internal loans for communities requiring funding

and also an avenue for communities to build up funds to

meet funding requirements in the future

We Want to Ensure that Our Services Remain

Affordable

The concept of affordability is one of our core principles. Our

modest overall rate increases in the past three years have been:

• 2009/2010 - 4.20%

• 2010/2011 - 3.04%

• 2011/2012 - 3.60%

We considered all of these increases to be affordable and

deemed that, the community agreed going by their submissions

when we consulted the public on these. However, there are

various factors facing us that will require us to increase rates

at levels well above what we anticipated when we prepared the

last LTP (the 2009-2019).

As outlined in the Mayor and CEO’s introduction we are

experiencing the on-going financial impact of the Canterbury

Earthquakes. In particular, there has been a significant increase

in the cost of insurance for everyone. While the increase is large

and affects the overall rates increases, we consider it necessary

and responsible to insure our keys assets.

Meeting drinking water compliance is a costly issue (see the Key

Issues section). We consider the cost of complying with the

standards to be unaffordable to communities on the individual

water supplies affected. Because of that, we have developed

a two stage approach where we will aim for Ecoli compliance

immediately and start to build a fund to meet some of the cost of

the full compliance in later years. The rationale of this approach

is to ensure we are in a position to meet our obligations in an

affordable manner.

Whereas we are intending on maintaining our current levels of

service for roading over the next three year period, our ability

to do so in future years may be challenging. The ongoing impact

of receiving less NZTA funding than we had earlier anticipated in

our Asset Management Plans will eventually have a detrimental

effect on our levels of service unless more rates are collected.

The issue we will likely be facing in our next Long Term Plan, will

be affordability versus levels of service.

We Want to Maintain or Improve Our Current

Levels of Service

With the exception of roading as outlined above, we are

committed to maintaining our levels of service. In some areas,

we intend to increase the levels of service, through:

• Complying with the increased Drinking Water Standards

• Improving the treatment of sewage in Hanmer Springs

• Employing an engineer dedicated to stormwater

management throughout the District

• Building new or upgraded facilities, such as:

• upgrading the Hanmer Springs Domain

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Hurunui Community Long Term Plan 2012 - 2022

• upgrading or building a new Medical Centre in

Cheviot

• Improving our customer service (within existing

budgets)

Each of these will be funded through rates or other mechanisms

such as the use of the internal loans or development

contributions, to ensure that the rates increases imposed are

kept to an affordable level.

The Use of Our Key Funding Arms

We have three key arms to our funding structure to meet the

operating and capital expenditure planned for the period of the

LTP.

1. Rates

Under the Local Government (Rating) Act 2002, we have

the ability to set rates to fund the activities we undertake.

The way we set our rates is set out in the Funding Impact

Statement and Rates System section.

This Financial Strategy also sets out requirements for us to

place limits on rate increases and this is discussed further

below.

2. Surpluses Derived From the Hanmer Springs Thermal Pools

& Spa

As outlined in the Core Principles above, we operate the

HSTP&S complex on a reserve that has been vested to the

Council under the Reserve Act.

Over the past decade, the operation of the HSTP&S complex

has been extremely successful and we constantly consider

how to maximise the profits generated. December 2010 saw

the completion of a $7.5 million expansion of the complex,

which provided a wider range of facilities and has proved to

be an outstanding success. We are aware that as a tourist

destination, the HSTP&S need to be in top condition and

refreshed if we are to maintain our place in the tourism

market. Because of this, and the ability for the profits from

the complex to fund it, further capital projects are planned for

the ten year period of this LTP.

The use of the HSTP&S surpluses is a key funding option

available to meet the costs of our reserves throughout the

district. The plan estimates that a total of $24 million will be

used from the surpluses derived from the HSTP&S to offset

these costs. For the first three years of the Long Term Plan, the

council is forecasting to spend more on reserve based costs

than it is earning from the surplus of the Hannmer Springs

Thermal Pools & Spa, however, the Council is comfortable

with utilising some of the existing reserve balance to fund this.

3. Internal Financing Structure

We developed an internal financing structure to provide a

consistent approach to funding capital expenditure across

the organisation. Because we do not build up depreciation

reserves, this system is important to enable communities

to access funding to undertake capital expenditure projects

rather than being required to fund such project through other

sources, such as rates. Our Internal Financing Policy is fully

discussed on page 268.

The structure is based on individual activities essentially

holding its own bank account. Income (rates, development

contributions, etc.) are deposited into the account and

expenditure, both operating and capital, is withdrawn from

the account. Like other bank accounts, the account can be in

funds or overdrawn. When the balance is in funds, we pay an

amount of interest and if the balance is overdrawn, then that

activity pay interest to us.

The result is that communities are able to undertake capital

expenditure projects by allowing the capital balance to go into

overdraft. This allows those communities to spread the cost

of required capital work over a period of time, rather than

having to fund it entirely in the year that it is incurred, by

setting rates to cover an amount of debt repayment every

year.

The internal financing structure also allows communities to

start building up funds by budgeting to continue to set rates at

a higher level than required to meet all operating costs, even

if there is no debt. This will mean that the excess operating

income will be held for that community to meet capital

expenditure requirements in the future. The benefit to those

communities in this position is that we pay interest to those

communities, which further increases their account balances.

The key benefit from the use of the internal financing structure

and building up fund is that it avoids large increases in rates

as it allowed the Council and the individual communities to

smooth the rating effect of large capital projects.

The anticipated level of internally financed debt at as 1 July

2012 is $16.6 million. The balances over the ten year period

are further disclosed in the Reserve Funds section of the LTP .

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Financial Position

Financial Position as at 2012

Our financial position at the start of the LTP period is set out in

the 2011/2012 Annual Plan shown below:

• The total rates were set at $12.8 million; of which $5.3

million are in District Wide rates and $7.5 million are in

targeted rates.

• Total income from non-rate sources was $16.9 million,

which includes $9.6 million in gross revenue derived from

the Hanmer Springs Thermal Pools and Spa.

• Total Operating Expenditure is forecast at $23.5 million

and Capital expenditure for the 2011/2012 year is

expected to be $9.2 million (which includes a level of

Capital that has been carried over from the 2010/2011

year).

• External Debt was expected to be $13.5 million at the

end of June 2012; however, the forecast has been reduced

to $12.5 million due to deferring some projects as part of

the LTP budget preparation.

• Internal Debt is expected to total $16.6 million as at 30

June 2012.

• Total Assets as at 30 June 2011 was $335 million, of which

$253 million related to our infrastructure.

The Relevance of the Current Financial Situation

to the Financial Strategy

• The current financial situation is relevant to the

financial strategy as it provides the starting point for the

development of the budgets for the LTP.

• There have been relatively low levels of rate increases for

the past three years.

• We took on debt for the first time in September 2010,

principally to provide funding for the $7.5 million

expansion of the Hanmer Springs Thermal Pools and Spa,

but there was already a need to obtain external debt to

fund the following keys projects over the preceding years:

• Town Centre Development in Hanmer Springs ($1.9

million) and Amberley ($560,000)

• Water Upgrades in Amberley ($714,000), Cheviot

($658,000) and Hanmer Springs ($788,000).

• Sewer Upgrades for Amberley ($2 million) and

Hanmer Springs ($1.8 million)

• Capital Expenditure to address the Drainage issues in

the Amberley Ward ($890,000).

• New Medical Centre in Hanmer Springs ($450,000)

and Rotherham ($1 million)

• As a result, there have been a number of large projects that

have been funded through the internal financing policy and

the requirement for those communities to start to repay

the debt through rates to replenish our cash reserves.

Until then, we will continue to hold debt for the period

of the LTP.

• The financial performance of the Hanmer Springs Thermal

Pools and Spa remains critical to our ability to keep rates

at an affordable level. The surpluses derived from the

HSTP&S is actively used to fund various costs relating to

reserves throughout the district. If we did not have the

surpluses to offset these costs, then they would need to be

rated for. In addition, and under the terms of the Internal

Financing Policy, we receive interest from the HSTP&S

for funds lent to it for the recent expansion works. This

interest received is used to offset the costs of our external

debt and to offset the District Wide Rates. The Council is

forecasting to spend more on reserve based costs than it

is forecast to earn from the surpluses derived from the

Hanmer Springs Thermal Pools & Spa for the first three

years of the Long Term Plan. To fund this the Council will

utilise existing reserves.

Forecast Financial Position as at 2022

At the end of the LTP period, our position is forecast as follows:

• Total rates revenue of $19.9 million; of which $8.0 million

are in District Wide rates and $11.9 million are in targeted

rates.

• Total income from non-rate sources is expected to

be $22.3 million, which includes $13.8 million in gross

revenue derived from the HSTP&S.

• Total Operating Expenditure is forecast at $39.6 million

and Capital Expenditure for the 2021/2022 year is

expected to be $7.7 million.

• External Debt was expected to reduce to $12 million at

the end of June 2022.

• Internal Debt will reduce to $15 million by the end of

June 2022.

• Total Assets as at 30 June 2022 is forecast to be $493

million, of which an estimated $393 million relates to

infrastructure.

Key Movements Over the Ten Year Period

Rates – Over the ten year period, we are forecasting to

receive a total of $167 million in Rates. This is broken down to

$69million in District Wide Rates and $98 million in Targeted

Rates. To achieve the total increase of 55% since the 2011/2012,

we intend to take incremental steps over the ten year period,

however with a relatively large increase of 5.83% required for

the 2012/2013 year.

Non-Rate Income – Excluding gains in asset valuation and vested

assets, we are forecasting that a total of $191 million will be

received from other forms of income. Roading Subsidies make

up $38 million over the period, Development Contributions are

forecast at $4.3 million and the gross revenues from the HSTP&S

are forecast at $115 million. In addition, we are expected to

receive $3.4 million from Forestry Sales, which is used directly

to reduce debt.

Operating Deficits - Due to Council spending more on reserve

based costs than it is forecast to earn from the surpluses from

the Hanmer Springs Thermal Pools & Spa, for the first three

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Hurunui Community Long Term Plan 2012 - 2022

years of the Long Term Plan, the Council will record small

operating deficits. These will be funded by existing reserves

built up by surpluses generated by the Hanmer Springs Thermal

Pools & Spa in the past.

Operating Expenditure – Total Operating Expenditure is

expected to be $351 million over the ten years. The total

increase from the 2011/2012 year is expected to be 38% over

the ten years and average of less than 4% per annum.

Capital Expenditure – Over the ten year period, we are

forecasting to spend a total of $77 million on Capital

Expenditure. $6.3 million is scheduled to fund projects required

due to growth, further $14.7 million relates to projects that will

assist in improving the levels of services we provide and the

remaining $56.2 million will be used to replace existing assets

when they reach the end of their useful lives.

This information is particularly relevant in determining

growth projections for the period and was also used for the

Development Contributions methodology. We have opted for

the medium growth projections for the ten year period. On this

basis, we have assumed that there will be approximately 17%

growth over the ten year period. The increase predicted for

Hanmer Springs is approximately 21%. With Hanmer Springs

being a tourist town, the growth in new sections and buildings is

not always consistent with an increase in population due to the

higher percentage of non-resident ratepayers who may own a

holiday home rather than a permanent residence.

The following graph shows the movements in the population

of each township in the District over the period from 1991 to

2006:

External Debt – This is scheduled to increase from the $13.5

as schedule in the 2011/2012 Annual Plan to reach a maximum

of $22.5 million in the between July 2015 and June 2017. With

communities required to repay certain levels of debt each year

and some communities starting to build up funds to carry out

capital expenditure in the future, we are forecasting that the

external debt will reduce to $12 million by the end of June 2022.

Internal Debt – With communities repaying debt and building

up funds, the movements in the internal debt levels move from

$16.6 million in 2012 down to $15 million in 2022.

Assets – It is expected that the value of our assets will be $493

million as at 30 June 2022. This increase of $165 million has been

brought about by the level of Capital expenditure to be incurred

over the ten years, but also due to the fact that the assets are

required to be revalued on a regular basis. It is forecast that the

increase in the asset values will account for $147 million of the

increase over the ten years.

Population Changes

The LTP has been prepared on the basis that the population

will continue to grow. Due to the effect of the Canterbury

Earthquakes, the 2011 Census was cancelled. Therefore, we

have used the population projections from the 2006 Census

to forecast population changes for the period of the LTP.

The following graph shows the population projection for the

Hurunui District over the next 20 year period.

It is acknowledged that the population of the Hurunui is older

than the national average. This presents issues around ensuring

there are appropriate facilities and services for older people.

We committed to providing buildings for medical centres to

ensure that health services are adequately provided to the

community. The following graph (using the 2006 Census data)

shows the age distribution for the Hurunui in comparison with

Canterbury and New Zealand:

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Capital and Operating Costs of Providing for

Changes in Population

In response to the demands of increasing population, we have

identified key projects proposed to respond to the anticipated

growth. These are further discussed in the Development

Contributions Policy but include the following:

1. Water supplies upgrades undertaken on Amberley,

Ashley Rural, Cheviot, Hanmer Springs and Hurunui

Rural water supplies which built in capacity to ensure

both existing ratepayers and future ratepayers are

serviced.

2. Sewerage systems have had capacity built into upgrade

work on ponds in both Amberley and Hanmer Springs

to allow for future growth. In addition, provision has

been made to allow for new areas to be reticulated in

Amberley.

3. Upgrades to both the Amberley Domain Pavilion and

the Hanmer Springs Hall have been undertaken to

provide additional facilities for both existing and future

ratepayers.

4. Provision has been made to develop new and upgrade

existing reserves to cater for increased population.

5. Stormwater provision to be factored in the development

of new areas in Amberley and Hanmer Springs.

Changes in Land Use

The Hurunui District has historically been an agriculture based

district, primarily beef and sheep. Over the past ten years, there

have been marked changes to the use of land throughout the

District.

The growth in tourism, especially Hanmer Springs and centred

around the development of the HSTP&S, has resulted in

increased number of accommodation providers and other

businesses associated with tourism, as well as more holiday

homes.

For a period, there was significant growth in viticulture, in

particular in the Waipara area, which provides ideal conditions

from growing premium quality grapes. The Amuri Basin has

seen a significant increase in the number of dairy farms and that

trend is likely to increase if access to further irrigation water

can be secured.

The Glenmark area has had two major wind farm applications –

one from Mainpower and the other from Meridian Energy.

The following pie chart shows the current land use of properties

in the Hurunui District as at September 2010 (the date of the

last District revaluation):

Capital and Operating Costs of Providing for

Changes in Land Use

Because of the uncertainty of the changes in land use, no specific

allowance has been made for changes to capital or operational

costs to allow for this.

Key Levels of Service

Capital Expenditure Programme

Capital expenditure requirements for our infrastructural assets

and roads are dictated by the levels outlined in the Asset

Management Plans (AMPs) for each activity. The AMPs are

updated on a regular basis to ensure that various changes to the

plan in the interim period are accounted for.

As discussed in the Key Issues section, we face potential issues

in the future regarding the level of funding that is expected to

be provided for roading from the NZTA. Our AMP for Roading

sets out what level of expenditure we have forecast to meet the

current levels of service. Since the AMP was adopted, there was

a change to the level of expenditure that the NZTA is prepared

to fund and this means that the expenditure allowed for in the

LTP budgets are significantly short of what was provided for in

the AMP. The AMP was developed prior to the change in central

government policy and before we were able to achieve greater

efficiencies through our current road maintenance contracts.

The difference over the ten years between what was scheduled

in the AMP and what has been provided in the LTP amounts to

a total of $18 million. Through achieving greater efficiencies in

the current roading contracts, we are planning on delivering the

same levels of service for the next three year period. In future

years, our ability to meet the same levels of service may not be

achieved without increasing rates.

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Hurunui Community Long Term Plan 2012 - 2022

In general, Capital Expenditure is broken down to three key

categories:

1. Capital expenditure relating to meeting the existing

levels of service. This will be principally replacement of

the existing assets

2. Capital expenditure aimed at improving the current

levels of service

3. Capital expenditure on assets required due to growth.

Some items of Capital Expenditure may actually fall into more

than one category. For example, the replacement of a length of

water pipe is required to provide water to existing consumers,

but the diameter of that length of pipe may be increased from

its existing diameter to allow for greater capacity in the future.

An assessment is carried out as to apportion the cost of each

project to the category to which it relates and if that cannot

be readily assessed, the category will be determine by the key

reason for the work to be undertaken.

Over the period of the LTP, we have budgeted $77 million to

spend on Capital expenditure. Of this balance, $56.2 million

related to maintaining the existing levels of service by providing

for replacement of current assets. A further $14.7 million

is aimed at making improvements to the level of service and

the balance of $6.3 million relates to projects scheduled due

to growth. The following graph shows the percentages of the

Capital Programme that relate to each category.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Growth Related

Improved Levels of Service

Renewals

The key area of capital expenditure is relating to the infrastructural

assets. Of the total Capital Expenditure programme for the

ten years of $77 million; $43.5 million relates to Roads and

Footpaths; $10.1 million relates to Water Supplies and $3.8

million relates to Sewerage Schemes. The following graph shows

the split of the Capital Expenditure programme to each of the

ten Groups of Activities for the ten year period.

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

-

Corporate Services

Governance

Hanmer Springs Thermal Pools and Spa

Growth and Development

Environment and Safety

Community Services and Facilities

Roads and Footpaths

Stormwater and Drainage

Sewerage

Water Supplies

Rates

We base rates on the Capital Value of each property. We set our

rates by way of District Wide Rates and Targeted Rates.

District Wide rates are charged on all properties in

the district, regardless of location. They are are broken

down further to: Governance; Roading; Planning; Waste

Management; Canterbury Museum; and other General

Rates.

• Targeted rates are charged for specific activities based

on services provided or land use. They are broken down

further to: Water; Sewer; Stromwater/Drainage/Land

Protection; Ward Amenities; Refuse Collection Ward

Medical Centre; Rural fire; Tourism and Other Sundry

Targeted rates.

• The rates and how they are set are further defined in the

Funding Impact Statement but the key changes proposed

for the LTP relate to the funding of Drinking Water

Standards, District Wide Stormwater work and the

Capital Levy anticipated to be charged by the Canterbury

Museum.

Drinking Water Standards

The funding of the drinking water improvements will be done

in two stages. Firstly, those supplies that are to be treated, the

direct operating costs of the treatment and the servicing of the

debt arising out of the capital expenditure needed to treat the

relevant water supplies, will be collectively charged by rating

each dwelling that benefits from the work. Secondly, from

2015/2016, a provision is to be made from the general rate to

build a fund to offset some of the significant capital cost to be

incurred in achieving full compliance with the drinking water

standards.

District Wide Stormwater

After the flooding events in 2008, much more emphasis has been

placed on development of stormwater plans for the District as

a whole. A stormwater engineer is to be appointed in 2013 to

look after this area. As the issue is district wide, the funding is

to come from the District Wide General Rate, with a portion

to be funded by way of a fixed charge and a portion by way of

capital value.

Canterbury Museum

As one of four contributing authorities to the Canterbury

Museum, the Hurunui District has been contributing a levy to

fund the operations of the Museum on an annual basis. Hurunui

has set a fixed charge on every property in the District to

cover this rate. The Museum is proposing to carry out a $63

million building project, which will need to be funded by way

of a Capital Levy. The budget set aside for the Capital levy is

$50,000 in 2013/2014, $100,000 in 2014/2015 and $50,000 in

2015/2016. It is intended that the Capital levy will be charged

on the same basis as the operating levy by sharing it as a fixed

charge per property.

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Rate Increases

In general terms, we try to keep the overall rate increase each

year to the level of inflation. However, the actual increases

in rates from an organisational point of view do change from

year to year depending on the funding options chosen and also

the fact that there are operational costs that are not carried

out every year, but need to be funded in the year they are

incurred. As a result, as the rates increase is an amalgam of many

individual rate increases, we intend to set the rates at the level

that is required, rather than to ensure the overall rate increase

is matches inflation.

The Hurunui District has a small population (one of the smallest

in New Zealand), and because of this, various factors can have

a marked effect on the rates increases in any one year as there

are fewer people to spread the cost across. As a result, there is

an allowance for any rate increases being higher than the level

of inflation due to extraordinary items. These items include, but

not limited to, the following:

• Capital expenditure requirements, which increases the

level of debt for individual communities.

• Increase expenditure due to compliance with new

legislation.

• Increased expenditure resulting from extraordinary

events, such as the Canterbury Earthquakes.

When determining the overall rate increases, an allowance is

made for a 1% increase in the capital value of the district each

year. This may be reviewed if there are significant areas of growth

experienced in excess to this. The increase is only applied to

the district wide rates as it is difficult to accurately assess the

growth in individual areas that targeted rates are charged to.

Because of the structure of our rating system, the overall increase

in rates will not be consistent for each property throughout the

district. It will depend on the targeted rates that are charged

to that particular property and also the capital value of the

property. We provide the relative rate increase comparisons for

22 various sample properties from throughout the district. We

have used the same 22 properties for years as this gives us a

good indication of the impact of increases across the different

communities and house values. The sample properties analysis

is provided the Appendices section.

Overall Rate Increases

Based on the budgets provided for the LTP, the overall rates

increases for each year of the LTP are as follows:

Year

The rates increases are broken down to the following:

Limits on Rate Increases

Overall Rates Increase

2012/2013 (Year 1) 5.83%

2013/2014 (Year 2) 5.77%

2014/2015 (Year 3) 5.37%

2015/2016 (Year 4) 3.17%

2016/2017 (Year 5) 3.82%

2017/2018 (Year 6) 3.15%

2018/2019 (Year 7) 2.61%

2019/2020 (Year 8) 4.01%

2020/2021 (Year 9) 3.74%

2021/2022 (Year 10) 3.33%

Year

District Wide

Rates

Targeted Rate

2012/2013 (Year 1) 5.63% 5.96%

2013/2014 (Year 2) 7.15% 4.80%

2014/2015 (Year 3) 6.34% 4.67%

2015/2016 (Year 4) 2.14% 3.95%

2016/2017 (Year 5) 3.20% 4.28%

2017/2018 (Year 6) 2.14% 3.89%

2018/2019 (Year 7) 0.30% 4.31%

2019/2020 (Year 8) 3.37% 4.47%

2020/2021 (Year 9) 2.60% 4.55%

2021/2022 (Year 10) 1.17% 4.85%

All Councils are required to set a limit on rates increases over

the ten year period of the LTP. There are no set rules around

how we are to determine what limit it imposes.

Options

There were a number of options available to us, for instance:

• Setting rate increases to an inflation rate.

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Hurunui Community Long Term Plan 2012 - 2022

• Setting a percentage increase.

• Setting an increase based on known factors and

assumptions.

We felt that setting rate increase limits based on an arbitrary

rate of inflation was not consistent to the assessment of the

proposed costs outlined in the LTP. This is because it did not

take into account items such as new capital expenditure, which

could result in a necessary increase in rates to fund the work,

which could exceed the overall increase in rates.

Setting a percentage increase per annum again did not reflect

the assessment of the proposed costs in the long term.

Furthermore, as the rates for individual communities can

increases at varying amounts due to various factors, it was

difficult to set a percentage increase that reflected these factors

adequately.

As a result, we decided that the limit to be placed on rate

increases is to be set as a percentage of the overall rates

increases predicted in the LTP.

Limits

The percentage on top of the predicted rates increases will be

2%. In determining this percentage, we that felt 2% provides

sufficient flexibility, particularly if there is significant cost

increases (on top of what has been allowed for using the BERL

cost price increase projections) imposed on us as a result of the

on-going effects of the Canterbury Earthquakes.

As a result, the limits will be as follows

Year

Overall

Increase

Overall

Increase Limit

2012/2013 (Year 1) 5.83% 7.83%

2013/2014 (Year 2) 5.77% 7.77%

2014/2015 (Year 3) 5.37% 7.37%

2015/2016 (Year 4) 3.17% 5.17%

2016/2017 (Year 5) 3.82% 5.82%

2017/2018 (Year 6) 3.13% 5.15%

2018/2019 (Year 7) 2.61% 4.61%

2019/2020 (Year 8) 4.01% 6.01%

2020/2021 (Year 9) 3.74% 5.74%

2021/2022 (Year 10) 3.33% 5.33%

Again, because of the nature of the targeted rate structure,

the increase (or decrease) in rates for any year for individual

properties can vary markedly.

Non-Rates Income

We rely heavily on other forms of income to finance our

operations. For the period of the LTP, the budget has scheduled

that 54% of our total income is generated from sources other

than rates.

25,000,000

20,000,000

15,000,000

10,000,000

5,000,000

-

For 2012/2013, the income from non-rate sources is expected

to total $16.6 million and this is scheduled to increase to $23

million by 2021/2022.

New Zealand Transport Authority Subsidies

The first key component of non-rate income is NZTA subsidies,

which are used to fund both operating and capital expenditure

relating to the roading network. We have assumed that the

current funding assistance rate of funding provided by NZTA

will be maintained for the period of the LTP. Further discussion

of this is provided in the Forecasting Assumptions on page 150

and in the Key Issues section.

Hanmer Springs Thermal Pools and Spa Revenue

The other key component is the Revenue derived from the

HSTP&S, which accounts for approximately one third of the total

income received. The HSTP&S is run as a separate business unit

of the Council and after allowing for Operating Expenses and

Interest, the surpluses are actively used to fund reserve costs

throughout the District. The reserve costs include: the cost

of the library, cemeteries, public toilets and a range of district

reserve costs. Over the last five years, the surpluses from the

pools have contributed a total of $7.65 million to these reserve

costs, which would otherwise need to be rated for. Over the life

the long term plan it is forecast that a total of $24 million will

be used from the surpluses derived from the HSTP&S to offset

these reserve costs.

Development Contributions

Other Income

Hanmer Springs Thermal Pools and Spa

NZTA Subsidies

External Interest Received

Development Contributions

Development Contributions also form a key component for

funding capital expenditure which has been required due to

increased growth. It is anticipated that over the life of the LTP, we

will receive a total of $4.3 million in Development Contributions,

however the amount actually received will be dependent on the

level of growth experienced. The Development Contribution

Policy is on page 206.

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Fees and Charges

Fees and Charges account for the remaining non-rate income.

We review our fees and charges each year and try to ensure

that they help offset actual costs and that the activities are not

overly reliant on rate funding instead. We also aim to make the

fees and charges affordable and fair on those who use them.

Targets for Investments

Cash Investments

As a result of a large Capital programme over the 2009/2010 and

2010/2011 years, principally due to the expansion works at the

HSTP&S, we had to take on term debt for the first time. Over

the period of the LTP, we expect to remain as a net borrower. As

a result, we no longer hold any long term cash assets in the form

of bonds or stock. Any spare cash funds are generally held on

call or in a short term investment of less than three months to

earn a small amount of interest as the interest rates are better

than holding the funds in a current account.

Equity Investments

Currently, we hold two equity investments – one in Civic

Assurance and the other in Transwaste Canterbury. Neither

assets are readily tradable on the open market, but we have

objectives for retaining ownerships of these investments.

Our holding in Civic Assurance was to maintain Civic as an

option in the insurance market. Civic was set up to provide

Local Authorities with an option for insurance that generally

met the unique insurance requirements faced by Councils.

Civic Assurance was heavily affected by the claims made as a

result of the Canterbury Earthquakes and there was a need

to recapitalise to ensure that it remains part of the insurance

market for local authorities in the future. It is not expected to

return a dividend for over the period of the LTP.

We own 1.2% of Transwaste Canterbury, which owns and

operates the Kate Valley Landfill. The value of our investment

as at 30 June 2011 was $269,000.The Company is 50% owned

by five of the Councils in Canterbury and our objective for

holding our investment is to continue to receive dividends

from the Company. The net return to us is approximately 27%

on Hurunui’s share of the net asset backing of the Company

and we have budgeted to receive $72,000 per annum from this

investment.

Forestry Investments

We hold approximately 240 hectares of trees. Some of the key

plantations are due for milling during the life of the LTP. Forestry

assets are held as long term investments on the basis of net

positive discounted cash flows, factoring in projected market

prices and annual maintenance and cutting costs. All income

from forestry is included in the statement of comprehensive

income, and this is used to fund replanting of the land. Where

there is an excess of funds, we may distribute this in a manner

we see fit.

External Debt

We have two key areas of borrowing - Internal and External.

The Internal debt is pursuant to our Internal Financing Policy, as

discussed above.

As our cash resources have been drawn down to fund key

capital projects in the past few years, we needed to take on

external debt to manage cash flow. We are now expecting to be

a net borrower for the period of the LTP.

Anticipated Levels of External Debt

As at 31 December 2011, the total amount of external debt we

held was $12 million. At the end of the ten year period, the debt

is expected to be $12.0 million, with the debt level is expected

to peak at $22.5 million over the period between July 2014 and

June 2017. The anticipated debt levels over the period.

Year

Total

Anticipated

Debt

Limits on Debt Levels

Total Anticipated

Interest Expense

2012/2013 (Year 1) $18.5 million $969,000

2013/2014 (Year 2) $20.0 million $1,203,000

2014/2015 (Year 3) $21.5 million $1,297,000

2015/2016 (Year 4) $22.0 million $1,359,000

2016/2017 (Year 5) $22.5 million $1,359,000

2017/2018 (Year 6) $21.5 million $1,281,000

2018/2019 (Year 7) $19.5 million $1,156,000

2019/2020 (Year 8) $17.5 million $1,000,000

2020/2021 (Year 9) $14.5 million $828,000

2021/2022 (Year 10) $12.0 million $750,000

Our External Liability Risk Management Policy sets out the

limits on the level of debt that we can take on. The ratios have

been developed in accordance to the industry standard and

have been set against the levels that are appropriate for us to

take debt from the Local Government Funding Agency (LGFA).

The net debt limits provided for in the policy are that total debt

shall be no more than 100% of total income and no more than

10% of total equity. Based on the levels of income allowed for

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Hurunui Community Long Term Plan 2012 - 2022

in the LTP, the limit of the debt that could be taken on is $42.5

million.

Year

100% of Total

Income

10% of Total

Equity

2012/2013 (Year 1) $30.3 million $34.2 million

2013/2014 (Year 2) $31.6 million $34.6 million

2014/2015 (Year 3) $32.9 million $35.2 million

2015/2016 (Year 4) $34.3 million $37.7 million

2016/2017 (Year 5) $35.4 million $38.2 million

2017/2018 (Year 6) $36.5 million $38.9 million

2018/2019 (Year 7) $37.9 million $42.0 million

2019/2020 (Year 8) $39.2 million $42.7 million

2020/2021 (Year 9) $40.7 million $43.8 million

2021/2022 (Year 10) $42.5 million $47.5 million

The policy also provides for the total amount of interest

expenses shall be no more than 5% of total revenue and no

more than 10% of annual rates income. Based on the maximum

of $42.5 million in income, the total interest cost can be no

more than $2.13 million.

Year

5% of total

income

10% of total

annual rates

income

2012/2013 (Year 1) $1.52 million $1.36 million

2013/2014 (Year 2) $1.58 million $1.45 million

2014/2015 (Year 3) $1.65 million $1.53 million

2015/2016 (Year 4) $1.72 million $1.59 million

2016/2017 (Year 5) $1.78 million $1.65 million

2017/2018 (Year 6) $1.83 million $1.70 million

2018/2019 (Year 7) $1.90 million $1.75 million

Holding a Debenture Trust Deed provides us with security for a

range of different funding options:

• Registered Bank Debt

• Use of the Local Government Funding Agency

• Issuing Council Debt directly to the market

Further information is available in the External Liability

Management Policy.

Implications of Hurunui’s Financial Strategy

Assessment of our ability to provide and maintain existing levels

of service and to meet additional demands for service within

those rate increase limits:

We face potential issues in the future in regards to the level

of funding that is expected to be provided for roading from

NZTA as discussed previously in this Financial Strategy. It

has been estimated that the difference over the ten years

between what was scheduled in the AMP and what has

been provided in the LTP amounts to a total of $18 million.

Assessment of our ability to provide and maintain existing levels

of service and to meet additional demands for service within

those debt limits:

As listed in the table above, we are not contemplating

taking on debt greater than $22.5 million and the

maximum amount of interest expected to be charged on

the external debt is budgeted at less than $1.4 million.

Therefore, with the exception of the Roading Network

due to circumstances outlined earlier, our assessment is

that we do have the ability to maintain the existing levels

of service and to meet additional demands for service

within those debt limits.

2019/2020 (Year 8) $1.97 million $1.82 million

2020/2021 (Year 9) $2.04 million $1.90 million

2021/2022 (Year 10) $2.13 million $1.98 million

Security for Borrowing

Prior to taking on debt for the first time in September 2010, we

prepared a Debenture Trust Deed and selected Perpetual Trust

as our Trustee. The Debenture Trust Deed is a standard security

document for Councils. The key security available is that a charge

can be made against the rates of the Council to repay debt so

the market perspective on this is that a Debenture Trust Deed

provides a low level of risk for an investor or funding provider,

which in turn should allow for lower interest rates.

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Statement Concerning Balancing of the Budget

Introduction

In terms of the Local Government Act 2002, the Council is

balancing the budget over the period of the Long Term Plan as in

most years; the budgeted operating income exceeds budgeted

operating expenditure. There are some areas of expenditure

that the Council has resolved not to fund, which are discussed

further. The Council also has developed an internal financing

policy to cope with funding for future capital expenditure

requirements.

Local Government Act 2002

Under Section 100 of the Local Government Act 2002, the

Council is required to balance the budget. The provisions of the

sections specifically state that “A local authority must ensure

that each year’s projected operating revenues are set at a level

sufficient to meet that year’s projected operating expenses”.

The Act goes further to state that a local authority may set

projected operating revenues at a different level from that

required if the Council resolves that it is financially prudent to

do so, having regard to:

to that activity. In some cases, the Council has resolved to use

reserves to fund some specific expenditure. This is particularly

the case where the Council actively uses the Reserve built up

by surpluses recorded from the Hanmer Springs Thermal Pools

and Spa to fund the operating expenditure of other reserves

throughout the entire district.

Receipt of Capital Income

For some of the Council activities, the Council has budgeted to

receive various amounts of income that are of a capital nature.

This capital income is in the form of development and reserve

contributions and vested assets which are not used to reduce

the amount of rates to be charged of a particular activity. These

amounts are instead applied to the capital requirements of the

activity that it relates to.

Funding of Depreciation

The introduction of the Local Government Amendment (No 3)

Act 1996 imposed the requirement for local authorities to fund

depreciation.

a) The estimated expenses of achieving and maintaining

the predicted levels of service provision set out in the

long-term council community plan, including the estimated

expenses associated with maintaining the service capacity

and integrity of assets throughout their useful life; and

b) The projected revenue available to fund the estimated

expenses associated with maintaining the service capacity

and integrity of assets throughout their useful life; and

c) The equitable allocation of responsibility for funding

the provision and maintenance of assets and facilities

throughout their useful life; and

d) The funding and financial polices set out in this long

term plan

Use of Reserves

The council is forecasting to record an overall deficit (excluding

gains on Asset Revaluation) in each of the first three years of teh

Long Term Plan. These deficits have been caused by the Council’s

decision to fund more reserve based costs than it is generatimg

from the surpluses of the Hanmer Springs Thermal Pools & Spa.

The Council is comfortable with this approach as it is able to

utilise surplusses that have been generated over the past few

years that have yet to be allocated. The Council is forecasting

to record surpluses for each year of the Long Term Plan from

year four onwards. In some activities however, the Council has

resolved not to set revenue to fund all of the costs relating

In 1999, the Council widely consulted with its community over

this requirement and it concluded that the Council will not cash

fund depreciation on Water and Sewer assets, roading or ward

Amenity assets. In addition, it has been resolved not to fund

depreciation on the library building.

Rates for these activities are set at a level higher than required

to meet the operating costs in terms of the Internal Financing

System. The additional rates will be used to either repay debt (if

the activity holds some internal debt) or used to build an amount

to fund future capital expenditure. The Internal Financing system

is fully discussed in the Internal Financing Policy.

Implications to Not Fully Fund

Depreciation

As there are no specific depreciation reserves created for water,

sewer, roading and ward amenities, there are no funds available

immediately to apply to capital expenditure requirements of

each of these activities. As a result, the community of benefit

is required to meet the cost of the capital expenditure through

the use of internal loans or fund the capital cost through rates

and other income.

If internal loans are used, there is the requirement on that

community of benefit to fund not only the appropriate interest

charge but also a portion of the principal of the outstanding loan

on an annual basis. Both interest and principal repayments has

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Hurunui Community Long Term Plan 2012 - 2022

the effect of increasing the operational cost that the community

must bear and as a result, increases in the rate requirement are

inevitable. The Internal Financing system goes further to ensure

that communities continue to fund additional payments, even if

the debt has been repaid, to build up a reserve fund to assist in

funding capital expenditure requirements in the future.

Council is comfortable with increasing rates to meet the cost of

interest and principal because existing ratepayers have previously

been relieved of any rate increases that may have been required

if the Council resolved to fully fund the depreciation on those

assets.

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Community Outcomes

Introduction

Community outcomes’ are the community’s overall aspirations

for the future of the Hurunui district. They relate to all aspects

of our rural life – our environment, economy, social, and cultural

wellbeing. These four wellbeings are commonly referred to

by government agencies as summarising the various aspects

needed for healthy community life in New Zealand.

The community outcomes in this long term plan relate directly

to the activities that we do as a council as they are the only

ones we have direct control over. There can be many more

community outcomes which can only be achieved with help

from other organisations such as business, government, the

police and many others.

Hawarden /Waikari Volunteer Rural Fire Force (VRFF)

The term ‘community outcomes’ is used to describe what

people want to happen now and in the future for the benefit

of not only today’s people, but future generations. Community

outcomes are about improving the wellness of our communities

over time in a sustainable manner.

Identifying the Community Outcomes

In past years, we have sought public views to identify what our

communities consider important for the future of the Hurunui

District. In addition to this, we have often sought community

views on a variety of issues and we feel confident we have a

good understanding of what people in the Hurunui consider to

be important. We have since scaled down previously identified

community outcomes to five broad outcomes that we as a

Council are able to work toward achieving. These community

outcomes are described in table 1. and each is aligned to one of

the four key wellbeings as well as the service or activity that we

provide to contribute toward achievement of them.

Hawarden/Waikari & Scargill VRFF

Scargill VRFF

34


Table 1:

Hurunui Community Long Term Plan 2012 - 2022

Community Outcomes and the Link to What Council Does (Activities)

Social

Wellbeing Outcome Definition Council Activities (How we contribute)

Cultural

Economy

Environmental

A desirable and

safe place to live

A place where

our traditional

rural values and

heritage make

Hurunui unique

A place with a

thriving local

economy

A place with

essential

infrastructure

A place that

demonstrates

environmental

responsibility

• We have attractive well designed

townships

• Communities have access to

adequate health and emergency

services and systems and

resources are available to meet

civil defence emergencies

• Risks to public health are

identified and appropriately

managed

• People have a range of

opportunities to participate in

leisure and culture activities

• Our historic and cultural

heritage is protected for future

generations

• We are seen as a good place to

do business, to live and to visit

• We have a strong emphasis

on service delivery across

all infrastructure including

roading, water (for drinking

and development), waste water,

stormwater and solid waste

• We protect our environment

while preserving people’s

property rights

• We minimise solid waste to the

fullest extent, and manage the rest

in a sustainable way

Measuring and Reporting our Progress

Each of the above outcomes is aligned to our services which

will contribute toward the achievement of them. We are

responsible for monitoring our performance each year, and the

results are provided in our Annual Report. How we are doing

with each of our services will give a good indication of how we

are going overall to achieve the community outcomes. See the

Council Activity pages for performance information.

Groups

Community Services and

Facilities

• Environment and Safety

• Governance

Community Services and

Facilities

• Hanmer Springs Thermal

Pools & Spa

District Promotion

• Hanmer Springs Thermal

Pools & Spa

• Water Supply

• Sewerage

• Stormwater & Drainage

• Roads & Footpaths

• Environment & Safety

Individual services

Property - Pensioner Housing,

Residential Housing, Public Toilets,

Council Offices & Depots, Car Parks,

Medical Centres, Halls, Swimming

Pools, Township Maintenance

Emergency Services - Civil Defence,

Rural Fire

Compliance and Regulatory

Functions - Building, Public Health,

Liquor Licensing, Animal Control

Governance

Community Services - Library, Youth,

Community Development, Grants

and Service Awards

Reserves - Parks and Reserves,

Queen Mary Historic Hospital

Reserve, Cemeteries

Thermal Pools – Spa, i-site, pools,

café

Promotion

Tourism

Economic Development

Water Schemes

Sewerage Schemes

Stormwater & Drainage

Roading - Roads, Bridges, Footpaths,

Street Lighting, Road Safety

Resource Management & Planning

- RMA Consents, Administration

& Policy Development, Subdivision

Inspection

Waste Minimisation - Refuse,

Recycling, Transfer Stations, Litter Bin

Collection

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Aligning Our Long Term Plan With the Government’s Drivers

for Economic Growth

The Government’s Economic Growth

Agenda

The government’s principal economic goal is to deliver greater

prosperity, security and opportunities to all New Zealanders.

It wants to improve New Zealand’s fundamental growth

momentum. An important part of this is through the economy

rebalancing itself toward exporting and investment. The

government has a six-point Economic Growth Agenda aimed at

creating an environment that allows businesses to grow, export

and create high-value jobs. The six drivers for economic growth

are:

• Enable better science, innovation and trade.

• Remove red tape and unnecessary regulation.

• Deliver better, smarter, public services.

• nvest in productive infrastructure.

• Lift education and skills.

• Create a growth-enhancing tax system.

Hurunui’s Annual Economic Growth

Business and Economic Research Limited (BERL) Regional

Performance Indicators Report for 2011, published in March 2012,

which measures each district’s economic performance, ranked

Hurunui 10th out of 66 territorial local authorities in New

Zealand. Nine key performance indicators were compared

for the year ending March 2011. We maintained our 10th place

2010 ranking.

Infometrics Limited Annual Economic Profile for 2010, published in

2011, said Gross Domestic Product (GDP) in Hurunui measured

$303m in 2010, down 0.3% from a year earlier. New Zealand’s

GDP declined by 0.5% over the same period. Hurunui’s GDP

growth of -0.3% ranked it number 32 among the 72 territorial

authorities for GDP growth.

Agriculture, fishing and forestry was the largest industry in

Hurunui in 2010 accounting for 45.3% of total GDP, followed by

business and property services (12.4%).

Council’s Contribution Towards Economic

Growth

From a local perspective, Hurunui District Council plays a

significant role in growing the local economy. Its involvement in

areas such as leadership, planning and infrastructure, regulation,

services, business support, and social and community, actively

create environments that attract, retain, and grow economic

activity. Our contribution occurs within its total annual spending

(planned to be $30m in the 2012/13 year). This spending can

be viewed as an investment into the Hurunui environment that

36

enables individuals, households and organisations to produce

and contribute to economic growth.

Leadership: We contribute through our role in local strategic

planning. We have developed a new vision (‘Community partnership

in growth and wellbeing’) and have developed a Long

Term Plan that provides for economic growth and allows business

interests to flourish. Key drivers for the Plan include core

principles of:

• Focusing on core services.

• Financial responsibility and affordability.

• Continuous improvement in service to everyone in our

district.

• Facilitating appropriate growth in the district.

and

• Maximising our Hanmer Springs Thermal Pools and Spa

profits.

Hurunui District Council being a High Performance

Organisation.

Infrastructure: We contribute through our role as an infrastructure

provider. Our investment in infrastructure plays a direct

role in creating an attractive environment for business to

invest.

Regulation: We contribute through our regulatory role. We

can make it easier for new investment, for businesses to grow

and create jobs.

Services: We contribute through our role in providing local

amenities, such as libraries and reserves. We provide services

that make our communities attractive to skilled migrants.

Business Support: We contribute through our support to

business and industry development. Our economic development

arm, Enterprise North Canterbury (ENC) carries out a range of

activities that help retain businesses and support growth and

prosperity in North Canterbury. ENC’s budget is over $1.1m

p.a. It receives 44% of its funding from the Hurunui and Waimakariri

District Councils (HDC funding is $50,000 p.a.); 30%

from central government contracts; 18% from the private sector

and other grants; and 8% from sponsorship.

We also continue by promoting tourism in order to attract

visitors into the district to enable local business growth (refer

to the District Promotion activity for proposed tourism changes

outlined for consultation).

Community: We contribute through our contribution to social

and community affairs, strengthening local social capital.

Overall, we have a fundamental role in ‘shaping’ places in the

Hurunui, like our towns, ensuring infrastructure and amenities

are provided to make our district attractive to investment and

skilled immigrants.


Hurunui Community Long Term Plan 2012 - 2022

Some of the important things we plan to do in this Long Term

Plan that directly relate to the government’s six-point Economic

Growth Agenda are highlighted below:

Enable Better Science, Innovation and

Trade

Science and innovation are enormously important drivers of

New Zealand’s economic growth.

ENC will be proactive in searching for and supporting new

initiatives that create substantial wealth in North Canterbury.

Particular emphasis will be given to the primary sector and its

related servicing industries. ENC’s Rural Technology Transfer

Project is particularly relevant. This project is about turning new

ideas developed at Lincoln Research campuses into practical

applications resulting in commercial returns on the farm.

Improved techniques for both dryland farming and irrigated land

use options are being pursued.

ENC will continue to facilitate the establishment of local

industry groupings where these are sought by the sector, to

achieve efficiencies in marketing, product development and

securing of resources. Management and marketing of the North

Canterbury Food and Wine Trail is one such example.

ENC assesses economic development opportunities in local

towns. A Cheviot project is currently underway.

In 2011 we approved a Hurunui Tourism Strategy and currently

continue to fund tourism promotion in order to attract visitors

into the district to support local business growth. Likewise, ongoing

investment in and the marketing of our Hanmer Springs

Thermal Pools and Spa complex is provided for in this Plan;

the Thermal Pools and Spa complex are an internationally

recognised tourism icon that return a growing income stream

to fund works and services on Council reserves and off-set the

size of the district wide rate requirement.

Overseas trade links can be a productivity springboard. For this

purpose, councils often form overseas sister city relationships.

To date, we have not taken on such a role. Forming a relationship

with Hung Hu City in China at a cost of $7,500 p.a. has been

requested of Council. More information is being sought. No

provision for such a relationship is included in this Plan at this

stage.

Remove Red Tape and Unnecessary

Regulation

We have implemented the government’s recent simplified

Resource Management Act changes to reduce costs and make

processes clearer; and it will implement any further RMA and

building regulation reforms when enacted, to make it easier for

businesses to grow, invest and create jobs.

In terms of our own regulations, over the past few years we

have carried out a significant number of District Plan changes to

ensure the District Plan is up to date and that our rules reflect

current thinking. Among these approved changes, relatively

large amounts of land have been opened up for development

in Amberley, Hanmer Springs and Gore Bay, new areas of land

have been zoned for business and industrial purposes, and

appropriate rules for vine yards wanting to install frost fans have

been agreed.

We are required to give effect to recent new National Policy

Statements (NPS) such as the NPS for Renewable Electricity

Generation 2011. The government has a renewable electricity

target of 90% of electricity from renewable sources by 2025. This

requires a significant increase in the proportion of electricity to

be generated from renewable resources. The government was

concerned renewable electricity generation was being unduly

impeded by variable provisions in local authority policies and

plans and changing attitudes to the environmental effects of

development associated with renewable electricity generation

activities. Accordingly there are now new guidelines to ensure

the national significance of renewable electricity generation and

associated activities are more explicitly recognised in policy

development and resource management consenting processes.

This Long Term Plan contains funding for a comprehensive

review of our District Plan. We expect the District Plan to be

ready for notification by the end of 2013.

The Environment Court released its decision at the end of

2011 on the Mainpower proposal to establish and operate a

$200m wind farm at Mt Cass Waipara. The initial application was

declined by Hurunui District Council appointed commissioners.

During extensive mediation the proposal was modified and this

modified proposal was directly referred to the Court and it

is this proposal that has been granted consent, subject to an

extensive suite of conditions. Mainpower have eight years to

give effect to the consent. The Council will have an important

regulatory role to fulfil in respect to consent requirements.

In 2011 we agreed to directly refer Meridian Energy’s proposed

$200m to $300m Greta Valley wind farm development consent

application to the Environment Court. Meridian Energy has

agreed to pay our direct referral costs. We expect the Court

will be hearing the application by mid-2012.

In September 2011, developers announced their plans for a

$120m shopping centre and residential development on the

eastern side of Amberley. The $30m shopping centre on State

Highway One was granted a non-notified resource consent

by us in February 2010, but developers are still finalising plans

and have yet to provide a firm start date for what is likely to be

a staged development.

The $90m residential development is expected to open up 500

to 600 lots in total. We granted a subdivision application for the

first stage of the development late last year.

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In October 2011, another 60 lot subdivision application was

granted on the Western side of Amberley.

ENC will continue to play a role assisting new businesses

establish in the district. Part of this role is acting as an interface

for businesses with us to ensure regulatory processes are work

effectively.

In preparation of this Long Term Plan we commissioned

PricewaterhouseCoopers to review our Development

Contributions policy. As a result, a number of minor amendments

were agreed to ensure we will collect the correct amount of

money from developers to cover the costs of growth (refer to

the Development Contributions section of this Plan).

Deliver Better, Smarter, Public Services

We have a High Performance Organisation culture. A range of

work aimed at improving customer services and achieving cost

savings and value for money is undertaken each year.

We competitively tender a significant amount of its work.

Last year we saved $200,000 with our three year public toilet

cleaning contracts. Grass moving and street cleaning tendering

also resulted in savings. In our largest contract area, road

maintenance, last year Downers won this work, tendering a

three year price of $11,595,216. This was $3,707,704 under

our engineer’s estimate based on historic rates, and $2,113,444

lower than the next lowest tendered price. Savings are reinvested

into the roading network.

We are involved in and will continue to look for opportunities

in Shared Services arrangements in order to deliver our

services and to help get value for money (refer Shared Services

references throughout this Plan). See Table1: Shared Services.

ENC will continue to carry out regular research with local

businesses to identify gaps, opportunities and track business

issues and trends.

Invest in Productive Infrastructure

First-class infrastructure is an important enabler of higher

productivity and economic growth. In this Long Term Plan

we are investing in owning and maintaining a high standard

of infrastructure that meets both our community’s economic,

social, cultural and environmental needs, and the government’s

legislative requirements.

Importantly, this Plan makes the significant funding provision

necessary for Hurunui to be able to meet government’s Drinking

Water Standards. The Plan provides for more public toilets;

more cemetery land; new stormwater infrastructure; more

parks and reserves infrastructure; for library, hall and service

centre improvements; and for new emergency management and

rural fire equipment, to name just a few. It also contains initial

proposals for new sporting and medical centres.

Table 1: Shared Services

Hurunui District Council Shared Services

Arrangements as at February 2012

Collaboration Joint Procurement Shared Services

Canterbury Water Electoral Services Transwaste Kate Valley

Management Strategy

landfill

Civil Defence

Rural Fire

Flood Protection

Office accommodation

(for CRC)

Transportation

priorities

SOLGM – best practice

work

Ingenium – asset

management work

Building Accreditation

Environmental Health

District Plan work

Rate collection (for

CRC)

IT/ GIS/ Library

IT (hardware and

software)

SOLGM – industry

good work

SOLGM – staff

recruitment and

retention

Regional Purchasing

Group (electricity, fuel)

ENC

CED Co Ltd

Canterbury Museum

Insurance – Riskpool/

LAPP/ Civic

Building control work

Regional planning Road Maintenance

responses

(some sharing with

Waimakariri DC)

HDC Natural

Biodiversity (govt grant)

Environment Fund (joint

grant with Mainpower)

Community

Development (govt

grant)

Libraries (located with

local schools)

Water (Ashley

scheme extending into

Waimakariri DC area)

Water will be a key part of North Canterbury’s transformational

economic development. We continue to support the Canterbury

Water Management Strategy in this Long Term Plan. We provide

for our share of the operation of the Hurunui Waiau Zone

Committee, which is a joint committee with the Canterbury

Regional Council. The Regional Council’s Regional Water

Committee will be considering the matter of how to fund the

provision of infrastructure associated with any large water

storage options that are seen as feasible. Properly managed, bulk

water storage could result in large productivity gains in North

Canterbury. No Council funding for such a purpose has been

discussed or provided for in this Plan to date.

With the removal of the Hurunui and Waiau River moratoriums

on 1 October 2011, Meridian Energy and Ngai Tahu Property

have jointly lodged initial consent applications for a proposed

hydro and irrigation scheme to be located between the Waiau

and Hurunui Rivers. The development of the project will be

dependent on the Hurunui Waiau Regional Plan progress

in 2012 and the RMA consent process. The parties still have

significant investigations and design work to complete and

believe construction is likely to be at least 10 years away. We are

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Hurunui Community Long Term Plan 2012 - 2022

likely to have an important consenting role.

The Hurunui Water Project has also lodged consent for Waitohi

storage in line with the Zone Implementation Programme’s

preferred option.

The Long Term Plan contains further capital funding provision

for on-going renewal and refreshment of our Hanmer Springs

Thermal Pools and Spa complex.

ENC is also focusing on government’s rural broadband delivery

project (directed at schools and hospitals) to put together local

business consortia to investigate higher capacity broadband

services for rural businesses to create new wealth, as an

adjunct to the government’s programme. We will be involved in

consenting requirements for at least two new cell phone towers

that are planned as part of the roll-out.

Lift Education and Skills

ENC will continue to provide training and coaching programmes

aimed at improving local business skills and business capability.

ENC is carrying out work to support the Amuri Dairy Employers

Group and Dairy NZ to improve employment practices, and the

recruitment and retention of employees in the Amuri area.

We continue to run our Secondary Education School Achievers

Awards, giving out $10,000 annually to assist young people to

undertake further study.

We continue to run our Youth Development Programme, aimed

at helping young people develop skills – both leadership and

technical.

Our Library is supporting the INZONE Career Information

Kiosk initiative. This is aimed at helping young people identify

suitable career options.

Create a Growth-Enhancing Tax System

Tax legislation and practice are constantly changing and it can

be a challenge within a small council to maintain the level of

knowledge required to ensure compliance with the various

tax acts. In November 2009 we commissioned Toovey Eaton

McDonald Ltd to review our tax compliance. They were

impressed with the overall level of compliance. A number of

technical and relatively minor observations were made as part

of the review for staff to action.

39


www.hurunui.govt.nz

Water Management

Canterbury Initiatives and Background

Water in Canterbury is a very topical and potentially

controversial issue, subject to many studies and public scrutiny.

The most wide ranging review in Canterbury to date has been

the Canterbury Strategic Water Study (CSWS). Stage 1 of the

CSWS, undertaken by Lincoln Environmental in response to

the severe drought of 1998 and published in 2002, concluded

that on an annual basis there is sufficient water in Canterbury

to meet likely future demand and development, but that there

were seasonal and geographic mismatches between supply and

demand. The initial study concluded that water storage and

distribution should be considered as part of meeting future

demands for water, to supplement supply in times of low natural

flows.

Under the auspices of the Canterbury Mayoral Forum, and

facilitated by Crown and local funding, the CSWS progressed

from 2004 through to 2008, respectively identifying a wide range

of potential water storage sites (Stage 2), and then undertaking

initial high level desk top evaluations of a more limited

number of major storage options (Stage 3). These evaluations

incorporated environmental, social, cultural, recreational and

economic viewpoints and included multi stakeholder group

meetings. Stage 3 concluded that a range of issues, opportunities,

trade-offs and concerns would need to be considered and

managed for any of the storage options to be taken further. Of

all the options considered, the Hurunui catchment option (up

to 68,000 hectares of irrigated land) was seen to be perhaps the

most viable hydrologically, albeit not without other issues and

concerns for some stakeholders.

The CSWS findings were subsequently put on hold (from mid-

2008), while wider social, environmental and economic aspects

were canvassed in a structured feedback process (in late 2008).

The Canterbury Strategic Water Study itself was renamed

‘Canterbury Water Management Strategy’ (CWMS) as it moved

through Stage 4 reviews, which culminated in public consultation

in May 2009. This eventually resulted in the publication of the

finalised strategy in October and adopted by the Council in

November 2009.

The Wider Scene & Context:

A Hurunui Perspective

New Zealand’s GDP and national prosperity continues to

be based on primary production and exports from the land.

Recent developments at all levels seem to suggest that the

country’s reliance on its land based economy will become even

greater in the years ahead. Hurunui has a traditional focus on

grass fed food and fibre production, and the present and future

prosperity of our communities, and their wellbeing on all fronts,

relies on Hurunui continuing to play to this traditional primary

sector strength.

The downside effects of the severe droughts of the late 1990s

(which in fact triggered the initial Canterbury Strategic Water

Study) are testimony to the risk of “doing nothing” with

regard to future proofing our land based production, and our

community prosperity. These same droughts, and downturns

in the agricultural economy, led to major visible decline in

Hurunui’s rural townships, and the implementation of a Hurunui

Tourism strategy was one of the responses. Given the pressures

of the global economy, and international tourism outlook, it is

highly unlikely that tourism in Hurunui could be the platform for

widespread prosperity across all communities and sectors, going

forward. Although tourism will be important, it will not replace

traditional primary production. Further, it must be remembered

that our tourism model is land based, given the attractions of

our striking landscapes, the traditional North Canterbury rural

character and values, the unique Hanmer Springs alpine spa

village, viticulture in the Waipara Valley, and more.

We believe that this issue of prosperity and the critical

importance of our land based industries and exports, is even

more important than many New Zealanders presently realise.

World food production is coming under increasing pressure

from the competing interests of bio-fuel production, climate

change, world population increase, socio economic growth and

development in countries such as India and China….”our planet

and global communities need high quality food in ever increasing

volumes, and New Zealand’s key role, historically, presently and

into the future, is as an efficient and sustainable food producer

and exporter. Such exports will be crucial to provide for New

Zealand’s import hungry lifestyle and prosperity for all”.

The subject of water is therefore of major importance to us.

Given the drought prone nature of the Hurunui, we believe

the future prosperity of the district can only be assured with

reliable sources of water to irrigate and support an increasing

proportion of its “food and fibre” producing farmland. Further,

there is also an on-going challenge for us to provide plentiful

domestic and stock water supplies and to meet New Zealand’s

drinking water standards.

We firmly believe that this Long Term Plan represents the best

opportunity to demonstrate a sense of leadership, by continuing

to support the CWMS through the Hurunui-Waiau Zone

committee.

Hurunui – Waiau Zone Committee

In July 2010, the Hurunui Waiau Zone Committee was formed

as a joint committee of the Hurunui District Council and

Environment Canterbury. This committee was the first of the

Canterbury formed ‘Zone Committees’ to be established as part

of the broader Canterbury Water Management Strategy. The

Hurunui Waiau Zone Committee has worked collaboratively

40


Hurunui Community Long Term Plan 2012 - 2022

to develop recommendations on water management in as

described in the Zone Implementation Programme (ZIP). See

a summary of the ZIP appended to this Plan. A full copy is

available on our Council website.

The Zone Committee and this ZIP are part of implementing

the Canterbury Water Management Strategy (CWMS) in

the Hurunui Waiau Zone. The CWMS sets as its first order

priorities: environment, customary use, community supplies

and stock water; with second order priorities as irrigation,

renewable electricity generation, recreation and amenity. The

Zone Committee recognizes that clean drinking water, land use,

water quality and quantity, environmental flows and allocation

for the rivers, biodiversity protection and enhancement,

irrigation, hydro power development and water storage options,

and the principles of kaitiakitanga are all (intimately) interrelated

and must be considered as a whole rather than in isolation. The

ZIP recommends actions and approaches for collaborative

and integrated water management solutions to achieve the

CWMS vision, “to enable present and future generations to

gain the greatest economic, environmental, recreational and

cultural benefits from our water resources”. In accordance

with the CWMS, the Zone Committee has arrived at its

recommendations through consensus.

Drinking Water Quality

Under this Strategy, we fully acknowledge that our focus on

productive development must be matched with a similar

energy and commitment to drinking water standards. See

the ‘Key Issues’ and ‘Water Supply’ sections of this plan for a

comprehensive explanation of our intentions to address this

issue across the Hurunui district.

Land and Water Quality Use Research

Council will continue to support initiatives, with Enterprise

North Canterbury and Environment Canterbury, and other

appropriate agencies, to position Hurunui at the forefront of

land use and water quality research programmes, projects and

pilots in the interests of Hurunui and all rural New Zealand. We

believe Hurunui is well placed to pursue this lead role, especially

given our dry east coast climate and our strong relationships

with entrepreneurial landowners and agencies. We believe that

this is a critically important component of our overall strategic

and comprehensive approach, particularly to demonstrate that

the Hurunui Water Management Strategy in relation to storage

and irrigation will require landowners to commit to best

industry practise and the uptake of available science.

Environmental, Social and

Recreational Interests

The environmental, social and recreational values of our

rivers and lakes are critical to the Hurunui. This point cannot

be overemphasised. We fully recognise this and support the

concept of having healthy rivers, lakes and streams in the

district. We have established a close working relationship with

the Department of Conservation, Environment Canterbury

and Ngai Tahu, and are extending this to other agencies and

interest groups on both a general and case specific basis. (e.g.

Our present work on the Waipara River is an example of our

commitment to play a proactive role in facilitating solutions

balancing environmental, recreational and other interests.)

Advocacy

It should be clear from this strategy that we see the Hurunui

Water Management Strategy as a critical component that has

the potential to influence, positively or negatively, every aspect

of wellbeing and prosperity in this district. Accordingly, we are

committed to pursue every advocacy role we can, in support of

the Hurunui Water Management Strategy. In particular, we will:

• Continue to play a positive, proactive part in the

Canterbury Water Management Strategy

• Lobby Government to position any water development

project that meet the aims of the ZIP as important

infrastructure developments, in the interests of Hurunui,

Canterbury and NZ

• Maintain and/or build relationships with all key

stakeholders and interest groups

Conclusion:

The Key Principle of “Balance”

This section on Water Management as outlined has been

deliberately included to recognise the importance of the

strategic issue of water. We cannot over emphasise the key

principle of balance that we firmly believe must be achieved if

true prosperity for all is to result. This is not a strategy about

irrigation and land use development at any cost. It is equally

not a strategy about locking up our resources and assets for

the benefit of a few, whoever they may be. The guiding themes

of the Hurunui Water Management Strategy are responsible

and sustainable growth and development for Hurunui and the

prosperity of its communities. At the same time, it is to also

protect natural and traditional environmental and recreational

values, and a commitment to pursuing and applying best

practice land use and water quality research, scientific advances

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www.hurunui.govt.nz

in water use efficiency and water conservation. Hurunui is at

the forefront of this balanced, comprehensive and critically

important strategy. That is the role we are engaged in with our

community’s support and encouragement.

Hurunui River - Acrylic on Canvas - by Stella Sales

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Hurunui Community Long Term Plan 2012 - 2022

Sustainability

• Walking and Cycling Strategy – the intention is to

develop a series of linking walking and cycling tracks in

Introduction

the District

Sustainability is a key ideal of the Local Government Act

2002 which sets out the requirements for taking a sustainable

development approach, and advises that we should take into

account the social, economic, and cultural wellbeing of people

and communities; the need to maintain and enhance the quality

of the environment; and the reasonably foreseeable needs of

future generations.

These factors are relevant to most of our policies and activities,

and where appropriate, we will explicitly address the ideal of

sustainability in relation to these.

They also tie in with some climate change issues that merit

some discussion here. We are mindful of trends in these areas,

and will aim for compliance with any central government

initiatives, but the Hurunui District has long been subject to

adverse weather events, and we do not see climate change as a

matter of top priority.

This Plan

Sustainability issues are discussed throughout the Council

Activities chapter of this plan where they are explicitly addressed

as the “significant negative effects” and “sustainability”. In the

Policies section of this plan, the topic of sustainability is raised in

the Significance Policy, in which the current and future wellness

of the community is taken into consideration in determining

whether or not any issue is significant. It is also raised in the

Revenue & Financing policy, in which the sustainability of the

means of funding each Council service is considered.

“Environmental Responsibility” is a key desire expressed

through one of our community outcomes in this plan. This

outcome is described as:

A Place that Demonstrates Environmental Responsibility:

• We protect our environment while preserving people’s

property rights

• We minimise solid waste to the fullest extent, and

manage the rest in a sustainable way

Other Initiatives

We have a number of bylaws, strategies and other policies which

consider sustainable environmental issues. These include our:

• Biodiversity Strategy – this aims to ensure that the unique

natural values of the district are maintained and enhanced

by the council, landowners and other parties working

together in partnership, voluntarily and cooperatively, in a

non-regulatory framework

43

Hurunui Waiau Zone Implementation Programme

– the summary of this programme is included in the

appendices of this Long Term Plan

• Smoke Free Outdoors Strategy (which is under

development) – this is to encourage smoke free

outdoor areas in a non-regulatory manner

• Pegasus Bay Bylaw – aims to control activities and the

use of land, including camping, the use of horses and the

use of vehicles, on the foreshore, beaches and adjacent

areas of Northern Pegasus Bay to protect the important

natural values of the coastline.

• Freedom Camping Bylaw – encourages people to

freedom camp in a responsible manner and in designated

areas to protect the environment from harm

• Earthquake Strengthening Policy – sets out criteria to

make buildings more likely to withstand earthquakes.

The Canterbury earthquakes in 2010/11 have focused

our attention on the potential for earthquake prone

buildings in the District and we are in the process of

reviewing these now.

Climate Change

A “once in 50 year flood” on 30/31 July 2008 and a “once in 25

year flood” on 26 August 2008 caused widespread damage to

roads, fences, floodgates and tracks. This was compounded by

the fact that the floods came not long after a major drought,

due to which many farmers were already struggling financially.

The Ministry for the Environment warns us to expect an

increase in the frequency of such extreme weather events, and

compounding factors such as rising sea levels, due to “climate

change” brought about by “human activity increasing the natural

level of greenhouse gases in the atmosphere”.

This is a controversial topic, but whether or not the floods and

drought were caused by climate change, and whether or not

such climate change is primarily due to human influences (there

is much debate about this, even amongst the “experts”), it is

clear that we need to be prepared to respond to such events in

order for farming and other key activities in the District to be

economically and environmentally sustainable.

Potential sea level rise is also an issue we have to grapple with in

the District Plan review. Some of our small coastal settlements

are likely to be inundated, but the time frame for when such sea

level rises may impact is dependent on updated research and

modelling.


www.hurunui.govt.nz

Emissions Trading / Carbon Tax

The Emissions Trading Scheme was a central government driven

initiative aimed at moving New Zealand towards compliance

with international protocols for offsetting the human influenced

drivers of climate change. With the recent change of government

there has been some discussion as to whether a “carbon tax”

might be a more effective way of achieving this end.

Either way, it is likely that in the near future some financial

compensation will be required from industries that produce

emissions. In the Hurunui District, forestry and farming stand

to be most affected, but until the details of the Emissions Trading

Scheme (or carbon tax) are finalised, it is difficult to say precisely

what the impact upon these industries will be. Federated Farmers

have staff dedicated to monitoring and producing responses to

these issues, and should be able to provide reliable advice to

farmers on these matters in the coming years.

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Hurunui Community Long Term Plan 2012 - 2022

Township Profiles

46 Hurunui District Profile

52 Amberley Ward Profile

55 Amuri-Hurunui Ward Profile

60 Cheviot Ward Profile

62 Glenmark Ward Profile

65 Hanmer Springs Ward Profile

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Hurunui District Profile

Kaikoura

District

46


Hurunui Community Long Term Plan 2012 - 2022

Location

Land Use

Area

Coastline

Climate

Population

The Hurunui District is in North

Canterbury, on the East Coast of

the South Island, New Zealand.

Predominantly rural

864,640 hectares (8,646,400,000 m²)

106 Kilometres

Ranging from unique coastal microclimates

to alpine climates

The estimated total population for

the Hurunui District is 11,330*,

distributed between the various

wards.

Labour Force

Labour Force Hurunui District New Zealand

Unemployment Rate 2.2% 5.1%

Employment

Participation

Main Occupations /

Industries

Education

Education

15 years and over

69% 63%

Agriculture &

Forestry

Hurunui District

Service & Sales

New Zealand

School Qualification 35.6% 40%

Tertiary Qualification 36.1% 39.9%

*Note: The 2011 Census was called off following the 22

February Christchurch earthquake. The estimated population

is from Statistic New Zealand’s population projections which

uses data from the 2006 NZ Census. The Government has

announced that the next census will be held in March 2013.

No Formal Qual. 28.3% 25%

Unless otherwise specified, statistics quoted in this section are

projections based from the NZ Census 2006. Figures have

been randomly rounded by Statistics New Zealand in order to

protect privacy, and thus may not add up to the totals given.

Population by Ward / Community Rating Area

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Hurunui Community Long Term Plan 2012 - 2022

Population

The population of the Hurunui District is predicted to grow

steadily over the next 20 years, although the population of some

towns in the district is dropping. The greatest proportion of

growth is occurring in the Amberley and Hanmer Springs wards.

Census data reveals that the Hurunui District has an aging

population, and shows a steeper rise than that predicted for

the country as a whole in the proportion of people aged 65

and over. Ethnic diversity is lower than that of New Zealand

as a whole, but there has been a marked increase in overseas

migrants, especially in the 30-50 year old age group (indicating

that they have come to work in the District).

Recreation, Visitor Attractions, Parks

and Reserves

The Hurunui is one of the few places in New Zealand’s South

Island that in less than two hours traveling time, you can drive

from the Lewis Pass (the northern most point of the Southern

Alps) with its fresh mountain air, spectacular scenery and lush

beech forests, to be sitting by the coast watching the waves

from the Pacific Ocean crash onto the Beach. Activities

include mountain walks, skiing, thermal bathing, river sports

and recreation, surfing, fishing and spectacular walks amidst

salt stone cliffs on our secluded beaches. The Waipara Valley is

renowned for some of New Zealand’s award winning wines, and

this area offers the opportunity to discover many fine vineyards.

The Hurunui has over 270 hectares of passive and recreation

reserves including the world famous Hanmer Springs Thermal

Pools and Spa. A significant recent addition is the former Queen

Mary Hospital grounds in Hanmer Springs. The main beaches

are at Leithfield, Amberley, Motunau and Gore Bay. The main

recreational lakes are Lake Sumner, Lake Taylor and Lake

Tennyson.

Main Industries

The Hurunui is continuing to experience growth and

diversification in terms of industry. Historically the district

has been primarily agriculture based, and this still continues

to be the single largest contributor to the Hurunui economy.

However, recent times have seen an expansion in both viticulture

and tourism. The growth of Hanmer Springs, the district icon,

as a tourist destination and the establishment of associated

infrastructure, is unprecedented in the tourism sector New

Zealand wide. The majority of the district’s working population

are employed in the “agriculture, forestry or fishing” industries

(as defined by Statistics NZ). The second largest employment

industry category is “accommodation, cafes and restaurants”,

followed by “health and community services”.

Agri/Viticulture

According to the 2007 Statistics New Zealand Agricultural

Production Census, the Hurunui District is home to 1,065 farms,

462 of which are sheep farms (total of 1,612,116 sheep), and

130 of which are beef cattle farms (with 119,141 cattle). 53,099

dairy cattle and 34,042 deer were counted in the Hurunui

District. The major horticultural activities in the District are

grape-growing (970 hectares), followed by olives (87 hectares)

and hazelnuts (25 hectares). There is a small vegetable harvest

in the Hurunui District (e.g. asparagus), and we produced 9,679

tonnes of barley, 3,852 tonnes of wheat, and 556 tonnes of field/

seed peas during the year ended 30 June 2007.

Development and Growth

The Hurunui District has a highly diversified economy based

around agriculture, viticulture and tourism. Both domestic

and international tourism have increased significantly over the

past decade in recognition of the wide array of recreational

opportunities within Hurunui from the coast to the mountains.

The Hanmer Springs Thermal Pools & Spa, Mt Lyford Ski Field

and Waipara wine producing area are recognised as anchor

destinations that have been a catalyst for business investment in

the District. Statistics New Zealand has estimated the Hurunui

population at 2026 to be 12,350 on a medium growth projection.

However because of a large absentee population owning

lifestyle and holiday homes, the Council is planning for growth

demands based upon trends in subdivision developments, and,

upon this basis, indications are that district wide growth will

be slower than what is indicated by the Statistics New Zealand

projections, but the Amberley and Hanmer Springs Wards are

more likely to be at the medium or even high growth rates.

Health

Indicators of health in the District include the Ministry of

Health’s “Deprivation Index”, which has been shown to correlate

with various health statistics (e.g. rates of cervical cancer,

mental health problems). This index assigns deprivation scores

(1 least deprived, to 10 most deprived) to each meshblock in

New Zealand. Meshblocks are geographical units defined by

Statistics New Zealand (containing a median of approximately

87 people in 2006). Scores are based on variables like income,

home ownership, unemployment, qualifications, household

crowding, transportation, and access to telecomunications.

These scores are assigned as measures of relative (rather than

absolute) deprivation. Thus, 10% of meshblocks in New Zealand

as a whole will always score 10. Scores for the Hurunui District

indicate much lower than average deprivation, with more than

75 % of meshblocks scoring in the top half (see graph on page 14).

Lower than average levels of income and education in Amberley,

and lower than average home ownership in Hanmer Springs

(due to holiday and workers’ accommodation) contributed to

higher than expected scores for these areas (both 7).

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Rateable Value

78% of our ratepayers pay their rates electronically, (eg: internet,

direct debit, automatic payment etc). the remaining 22% pay by

cheque or cash.

Rates are levied on rateable properties based on their rateable

value. The definition of land is very broad and may include the

right to pass utilities over land, e.g., power lines and water

pipes. Almost all lands are rateable. Exceptions apply to certain

Crown land and land mainly used for educational and charitable

purposes. As at June 2012, the total rateable value of property

in Hurunui is $4,680,288,642.

Property Values by Ward

Name

District

Capital Value

No of Rateable

Properties

Amberley 945,624,200 2,180

Amuri 1,142,832,950 1,206

Cheviot 622,508,900 956

Glenmark 576,633,550 767

Hanmer Springs 689,567,550 1,673

Hurunui 524,777,000 801

Utilities 132,005,000 0

Value as at 1 July 2011 4,633,949,150 7,583

Growth Factor (1%) 46,339,492 76

Total Rating Value Assumed 4,680,288,642 7,659

*Note: The Council rates an additional 1,500 properties in the Waimakariri District, which

are on our Ashley Water Scheme.

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Hurunui Community Long Term Plan 2012 - 2022

Services and Amenities

Major services and amenities in the district are available in the

following locations.

Kaikoura

District

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Amberley Ward Profile

• Amberley is about a 35 minute drive from Christchurch,

Background and History

Named after Amberley in Derbyshire, Amberley was originally

established as a result of the arrival of the railway in 1876. The

township continued to grow and became an important farming

service centre. Amberley has grown significantly since the

1950s and was the first township in the Hurunui District with

a water supply scheme undertaken by a county council (1957).

Amberley’s southern neighbour, Leithfield, is one of the oldest

townships in Canterbury; Leithfield was founded in 1857 by

John Leith as an important coach stop and to provide services

to the surrounding farming and milling area. In 1863 Leithfield

boasted one of the first flour mills in North Canterbury and

the only one to be powered by wind. The village flourished in

the 1870s when it was then only business centre at the time,

between Kaiapoi and Kaikoura.

The beach settlements of Amberley Beach and Leithfield Beach

developed as residential suburbs between 1950 and 1990, and

their current populations have grown dramatically.

Recreation / Visitor Attractions

Amberley is the largest township in the ward, located on State

Highway 1, it is a busy rural service centre with an impressive

range of cafes and shops as well as the vibrant district library.

The ward is ideally placed as a country retreat, it is renowned

for its impressive country gardens and offers a variety of

accommodation options for visitors. There are very handy rivers,

lakes and mountains to explore, and lots of walks including beach

tracks, the Mt Grey scenic walkways and the Kowai Walkway - a

well maintained track from the historic Old Leithfield Hotel to

the coastal settlement of Leithfield Beach.

Several parks and reserves can be found in the townships, and

the local Amberley Domain and Pavilion is always popular for

sport and recreation events, agricultural shows, and leisure

activities.

Present Profile

• The population of the Amberley Ward is estimated

at 4,050.

• The Amberley Ward is the largest community in the

Hurunui District. The ward makes up over one third

of the total district population, with a steady growth in

residents.

• 2006 NZ Census data shows Amberley’s population

profile as somewhat older that the Hurunui average.

29% of Amberley’s residents are aged 65 years and over,

compared to 25% for the Hurunui District, 24% for

the Canterbury Region, and 21% for New Zealand as

a whole.

52

and Leithfield is even closer. The townships’ close

proximity presents an advantage for residential growth,

offering commuters a country lifestyle while still being

able to work in the city.

• State Highway 1 runs through the centre of the

Amberley Township. While this visibility and accessibility

is a great strength for development and growth, it

simultaneously creates challenges for road safety, noise

and heavy transport effects.

• Both the Amberley Township and Leithfield Village have

experienced notable urban expansion and development

in recent years, including increased lifestyle block

development. This growth did slow during the

economic crisis, but it has now taken off again post the

Christchurch earthquakes, with many viewing the area

as ‘less shaky’ and offering a desirable lifestyle.

• The Amberley Ward also experienced substantial

growth and development in the Glasnevin area, including

large scale viticulture plantings, and subdivision activity.

This rate of growth also eased during the economic

downturn but is also taking off again.

• A concept plan was developed by and for the Amberley

community, and includes far reaching planning on many

fronts, including urban and commercial zoning, social

and recreation activities, streetscaping and branding.

The Amberley Township Plan was finalised in 2008 and

many of the high priority projects contained have now

been completed.

• The Amberley Ward offers a wide range of services and

facilities.

In addition to the numerous shops and commercial premises,

the ward is fortunate to have three primary schools, two

preschools, two Playcentres, a medical centre, a public swimming

pool, a community hall and two libraries (The Hurunui Memorial

Library in Amberley and a community library in Leithfield). The

ward has many amenities including a cemetery and several

blocks of public toilets. The Amberley Township is home to the

ward’s volunteer fire and ambulance services and two full-time

police officers. The Council’s main office, including the Council

Chambers, is located in Amberley.

Ward Governance

District Councillors are responsible for representing the

interests of their ward, setting Council policies and monitoring

the Council’s performance. They are elected every three years

by the voters of their ward.

The Amberley Ward is currently represented by three

councillors: as at 2012, they are Gary Cooper, Ross Little and

Judith McKendry.


Hurunui Community Long Term Plan 2012 - 2022

In addition, the Amberley Ward also has an elected Ward

Committee which includes amongst its varied responsibilities

the overseeing of the ward’s water and sewerage schemes, and

the Amberley Recreation Reserve Subcommittee. The Amberley

Ward also has the Amberley District Residents’ Association,

the Leithfield and Leithfield Beach Residents’ Groups and the

Amberley Beach Residents’ Association.

Key Long Term Opportunities and

Challenges

• The worldwide economic downturn had a temporary

negative effect on growth and development in the

Amberley Ward. However, this is expected to reversed

as people need or want to leave earthquake affected

areas in Christchurch and Kaiapoi may consider buying

houses and sections in the ward. Amberley Township is

also popular to an increasing number of retirees.

• State Highway 1 remains a major economic strength

and improvements have lessened the pedestrian

safety challenges for the community. The outcome of

the proposed District Plan change will likely have an

influence on development in upcoming years.

• The number one Amberley Concept Plan (ACP)

priority project that was identified was in regards to

residential and commercial zoning. After a lengthy

consultation process, the District Plan Changes became

operative in 2009.

• New District Plan provisions for independent senior

living units (ISLUs) and minor dwelling units (MDUs)

were made operative late last year. This enables another

type of residential development that will cater for the

needs of the “earthquake refugees” as well as the needs

of the aging population.

• The ACP identified the current centre of town location

for the Amberley Transfer Station to be inappropriate,

and new potential sites have since been investigated. A

site in Greys Road has been identified as the preferred

location and this will now be consulted on.

• The need to upgrade the Amberley Swimming Pool was

also highlighted during the concept planning process,

and subsequent investigations have found that the pool

has a limited life expectancy and that we should not rely

on it after 2018. The Amberley Ward Committee, via a

working group, has been further investigating options

for the future including whether the current pool can

be upgraded or whether a new pool should be built.

Extensive consultation will be carried out prior to any

final decisions being made.

• A huge land bank now exists in Amberley resulting

from recent plan changes which rezoned rural land to

residential use.

• The resource consent for the long awaited supermarket

and shopping complex for Amberley was signed off in

2010. Although a commitment has not yet been made

by one of the major supermarket chains, this is still

being pursued by the developer who remains optimistic

that a deal will be completed in the near future.

• The Council has adopted a Walking and Cycling

Strategy, which aims to facilitate the desires made by

some members of the Community to improve the

Walking and Cycling linkages within the Hurunui District.

Of particular importance for the Amberley Ward are

the proposed commuter routes from Amberley to

Amberley Beach, Amberley to Waipara, and Amberley

to Leithfield.

• The Amberley Ward beaches from Ashworths to “the

Rocks” are included in the Northern Pegasus Bay

Coastal Management Plan. This Plan contains a number

of recommendations, including a requirement that all

vehicles on Northern Pegasus Bay must obtain a permit

and obey all conditions of the permit including, a speed

limit for vehicles of 10km/h around people and 30km/h

on the open beach, in addition any vehicle on the beach

must be operated below the high tide mark.

• The Amberley Ward’s population growth since 2008 has

been slow. However, previous growth, and anticipated

moderate future growth, particularly in the townships,

will ultimately create a need for expanded community

facilities. Further expansion and development of the

Amberley Domain may become necessary. New

subdivisions need to include the provision of parks,

reserves and walkways. Another long term challenge

to meeting population growth and developers’ and

residents’ expectations for the Amberley Ward will be

the possible demands to seal existing gravel roads.

• The presence of State Highway 1 will continue to

stimulate associated growth and development, whilst at

the same time placing responsibility on the council, the

community and the New Zealand Transport Agency to

manage the associated effects of such traffic.

• Amberley Ward’s locality acts as a valuable “gateway”

to the Hurunui District, offering opportunities for

further growth and profitable gains to the local tourism

industry.

• Impacts from the Pegasus Town development have

not yet become apparent. As the town grows, a

foreseeable possible adverse impact on the Amberley

Ward is the additional traffic volumes creating longer

commuting times between Woodend and Christchurch.

Possible positive impacts include more employment

opportunities and Amberley Ward could be a satellite

base for staff for the new township. The proposed new

High School would be the closest one to the Amberley

Ward.

• The Amberley Ward has nearly one third of its

population aged 65 years and over (Stats NZ Census

2006). The requirements of this demographic has

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different demands than the rest of the district, such as

a higher need for pensioner housing and rest homes,

increased medical centre usage, a preference for passive

recreation facilities etc.

Key Projects

Year Planned

2012/13 2013/14 2014/15 2015-2022

Water pipe renewal $448,773

Water reticulation $260,933 $239,763

Water connections $10,392 $10,738 $11,107

SH1 bore commissioning $25,000

Water rising main upgrade $236,500

Sewerage pipe upgrade $474,000 $243,678

Waste water plant renewals $12,240 $10,780 $78,256 $41,293

Stormwater/drainage detention ponds $100,000

Stormwater/drainage upgrading $194,000

Amberley Township roadside construction $23,000 $23,902 $24,697 $201,646

Leithfield Township roadside construction $10,000 $11,945

Leithfield Beach Township roadside construction $5,196 $6,215

Leithfield Beach Community Centre heat pump $4,000

Amberley Township – Railway Tce landscaping/fencing $15,000

Walking and cycling routes $250,391

Amberley domain – playground improvements $4,000

Amberley domain – relocate cricket nets $6,000

Amberley neighbourhood reserves $264,752

Amberley reserves – passive links $10,000 $10,392 $10,738 $87,672

Amberley Beach reserve – tennis courts $24,858

Leithfield Beach reserve – tennis courts $72,744

Amberley Ward - Sample Properties

Water

# of Actual Proposed Increase / Decrease

Capital

Property

Fixed Rates Rated

Value Supply Units $ %

Charges 2011/2012 2012/13

Amberley Township 255,000 Amberley 209 1 $1,464.46 $1,549.20 $84.74 5.79%

Amberley Township 520,000 Amberley 238 1 $1,805.80 $1,909.12 $103.33 5.72%

Amberley Beach

Township

175,000 Ashley Rural 0.5 1 $1,575.36 $1,647.24 $71.88 4.56%

Amberley Rural 2,400,000 Ashley Rural 1 0 $3,146.30 $3,306.33 $160.03 5.09%

Leithfield Township 205,000 Ashley Rural 0.5 1 $1,338.13 $1,412.35 $74.23 5.55%

Leithfield Beach

Township

180,000 Leithfield

Beach

1 1 $1,219.49 $1,297.30 $77.80 6.38%

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Amuri-Hurunui Ward Profile

Background and History

New Beginnings

Hurunui Community Long Term Plan 2012 - 2022

Amuri

The township of Waiau was the first of the three main

settlements established in the area previously known as the

Amuri Ward. It originated in the 1860s, and due to the ferry, the

bridging of Waiau River, the opening of the road to Kaikoura and

the completion of the railway line, soon became an important

farm servicing and transport centre.

The development of Rotherham as a township followed in 1877,

as it was laid out in order to attract labourers to the district.

Culverden was the last to be established and only so due to the

arrival of the railway in 1886, consequently becoming the rail

and coach, as well as the farming centre for Amuri.

Over the years, the Amuri has been an area of traditional large

scale farming, characterised in many cases by continuous family

ownership across several generations. A secondary school

department was established in Culverden in 1960, making it the

third high school in the district, changing its status to an area

school in 1977. The first ‘Amuri Community Health Centre’

opened in Rotherham in 1982.

The impact of the arrival of the dairy industry in the 1980’s

has been substantial and provided enormous opportunities. The

future of the industry will be heavily influenced by the potential

to store water.

Hurunui

Historically, the Waikari Township was a very busy little

community with the flour mill, lime-works siding adjacent to the

north bound railway line providing a lot of employment locally.

It also accomodated the Hurunui County offices, an extensive

council works yard. Waikari school established 1882.

The nearby township of Hawarden began with a Roads’ Board

cottage and a store on a route taken by thousands of gold

seekers who made their way over the old Weka Pass Road in

the 1860s. Later Hawarden became the service centre for a

large farming area and included several businesses, a post office,

a community hall and a church. Hawarden Consolidated School

was a feeder from Hurunui, Medbury, Mason’s Flat and The

Peaks – becoming Hawarden District High school in 1927, it

was the first high school of the Hurunui District, and is now

known as Hurunui College.

Water supplies and sewerage works for the two townships

were completed in 1966. A medical centre was first opened in

Waikari in 1971. Both communities had Post Offices.

Following a legislatively mandated Representation Review in

2007, the Local Government Commission determined that

the pre-existing individual Amuri and Hurunui Wards become

amalgamated to form a new combined ward area: the Amuri-

Hurunui Ward. In their determination, the Commissioners wrote

that they felt there were “sufficient commonalities of interest to

enable effective representation within this new combined ward

area” and cited that both the Hurunui and Amuri Wards are

located within the same valley and are both primarily agriculture

areas with collections of small, discreet settlement areas that

supported the surrounding rural hinterland. However the

Commissioners also noted that the Hurunui and Amuri ward

and community committees had “strong community governance

arrangements” and recommended retaining these as part of the

new structure.

Recreation / Visitor Attractions

The townships of Amuri-Hurunui epitomise small New Zealand

rural towns. They are great places to relax and enjoy the local

scenery and attractions.

The natural outdoors paradise at the southern area of the ward

features some of New Zealand’s most spectacular mountain

ranges, hillside, lakes and the headwaters of the Hurunui River,

as well as offering many accommodation options for visitors.

Waikari is the final stop for the popular Weka Pass vintage

steam railway, and the area is a photographers’ dream –

resplendent with remarkable limestone rock outcrops and some

breathtakingly beautiful sunsets over the ranges and hinterland.

The stunning vistas can readily be taken in from the Weka

Pass Walkway, and you can also climb up a local hill to view

ancient Mäori rock drawings in the Weka Pass Reserve. Since

1868 the historic Hurunui Hotel has provided weary drovers

moving sheep from Nelson to Christchurch for stock sales with

a place to rest and pick up their mail and catch up on news. As

the gateway to Canterbury all the sheep entering the district

were once dipped here before moving on to avoid the spread

of any diseases from one region to another. The Hotel remains

a classic landmark in North Canterbury and is still a great place

to stop for refreshments.

Just a few kilometres to the west, Hawarden is home to the

well-known Flaxmere Gardens - which are Gardens of National

Significance, and is the gateway to the secluded wilderness and

pristine Lake Sumner Forest Park area offering excellent fishing

and hunting grounds.

Events of interest in the Hurunui area include the Hawarden

A&P Show, Waikari annual ANZAC day fun run, ART in the

Garden, and the biennial Hurunui Race and Gala Day.

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Towards the northern reaches of the ward, the delightful

Culverden township offers a choice of farmstays, bed and

breakfasts and gardens to enjoy, making it a great place for

visitors to stay who are seeking a rural New Zealand experience.

The Culverden Golf Course is an enjoyable 9-hole course with

an attractive mountain backdrop. October each year is time for

the famous Christmas Country Fete showcasing arts, crafts,

food and wine in a garden party atmosphere.

Just a short drive inland, Waiau offers some of the best access to

the Waiau River, brimming with trout for the skillful angler and

where the salmon run during February and March. Amuri Golf

Club also has a 9-hole golf course. 26km north of Waiau, the

small, privately-owned alpine resort of Mt Lyford was developed

in 1986, and includes a commercial ski field and offers various

facilities and services, including ski and snowboard hire,

accommodation and a café, horse trekking and a riding school.

Current Profile

The population of The Amuri-Hurunui Ward is estimated at

3,730.

• The Amuri-Hurunui Ward makes up approximately 30%

of Hurunui District’s population as a whole.The ward

experienced modest growth in the five years from

2001-2006 and Statistics New Zealand had predicted

no further increase for 2011, however growth in the

dairy industry is likely to have seen modest increases

in population numbers – particularly in the numbers of

migrant workers and their families.

• The Amuri-Hurunui Ward is centrally located in the

District and acts as an essential access way to the

Hanmer Springs Alpine Village when travelling to and

from Amberley / Waipara, or to and from Kaikoura.

• The Amuri-Hurunui Ward is dominated by traditional

farming, and developments in recent years include an

extensive number of conversions, from traditional

sheep farming to intensive irrigated dairy farming.

• The Amuri-Hurunui Ward is home to Amuri Area

School in Culverden and Hurunui College in

Hawarden. The Hurunui Academy based in Culverden

offers NZQA approved courses in outdoor education,

rural skills, tourism and hospitality, and carpentry for

youth and adult students. There are three primary

schools, located in Waikari, Waiau and Rotherham. Preschool

options include a pre-school in Culverden and

Playcentres at Hawarden Culverden and Waiau. The

Amuri Area School is also houses the Council’s Service

Centre/Library. Hurunui College also houses the

Council’s public library. A community library is based

in Waiau.

• The Amuri-Hurunui Ward is fortunate to have two

medical centres and a hospital:

• Waikari is home to the Waikari clinic (a subsidiary of

Amberley Medical centre), which meets most medical

needs of residents’ in the southern end of the ward.

This was a purposed-designed building built in 2001 and

is funded from a targeted amenity rate from what was

the previous Hurunui Ward boundary area.

• The new, purposed-designed, Amuri Community Health

Centre in Rotherham provides for the majority of the

residents’ medical needs in the northern end of the

ward. The Amuri Health Centre building is funded by a

targeted amenity rate on what was the previous Amuri

Ward boundary area. The General Practice is owned

by the Amuri Community Trust and operated by Amuri

Health Care Ltd.

• Waikari Hospital is set in beautiful grounds overlooking

the Alps, it provides services to the local community as

well as rest of the district. Services include Maternity,

Continuing Care of the Elderly, General Medical, Surgical

Rehabilitation, Carer Support, Respite Care, Meals on

Wheels, Day Care and equipment Hire

• The Amuri-Hurunui ward is fortunate to have a St John

Ambulance Station based in Culverden, as well as the

Hawarden–Waikari and Amuri–Waiau Volunteer Rural

Fire Forces, and New Zealand Fire Service Volunteer

Fire Brigades in Waikari, Culverden, Waiau and

Hawarden. There is one full-time police officer working

from Waikari, and two based in Culverden.

Ward Governance

District Councillors are responsible for representing the

interests of their ward, setting Council policies and monitoring

the Council’s performance. They are elected every 3 years by

the voters of their ward.

The Amuri-Hurunui Ward is currently represented by three

councillors: as at 2012, they are Marie Black, Richard Davison

and Jim Harre. Mayor Winton Dalley is also from this ward but

was elected ‘at large’ to represent the interests of the entire

district.

Council committees in the Amuri area are the Amuri Community

Committee, the Amuri Plains Rural Water Committee, the

Balmoral Water Committee, the Waiau Rural Water Committee,

the Waiau Township Water Committee, Culverden Township

Water Committee and the Waiau Reserve Committee.

Council committees in the Hurunui area are the Hurunui

Community Committee, the Hurunui Recreation (Racecourse)

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Hurunui Community Long Term Plan 2012 - 2022

Key Long Term Opportunities and

Challenges

Reserve Committee, the Waikari Reserve and Hall Committee,

and the Hawarden Recreation Reserve and Hall Committee.

Water

Water issues, in terms of both opportunities and challenges, are

so important to the entire ward that a separate section has

been included here to showcase this.

• A key issue in the ward over the past 50 years and

probably the next 50 is the use of water from the two

main rivers, the Waiau and Hurunui for irrigation. The

consequential changes to the physical environment,

economic activity and most importantly to the social

structure of the district is a work in progress.

• The impact of the arrival of the dairy industry in the

1980’s has been substantial and provided enormous

opportunities. The future will be heavily influenced by

the potential to store water and to utilise currently

underperforming land.

• It is generally accepted that the real opportunities for

the ward remain with land based industries - both

agriculture and recreation based. To continue to grow

and develop these, the focus is on the rivers, lakes and

hills.

The Hurunui-Waiau Zone Committee

The Hurunui-Waiau Zone Committee was the first of the 10

zone committees established throughout Canterbury. In August

2011, its Zone Implementation Programme (ZIP) was received

by Environment Canterbury and the Hurunui District Council.

This is designed to provide an integrated approach to water

management in the zone while achieving the desired social,

environment, cultural and economic outcomes. The committee

has also agreed on its Immediate Steps Biodiversity Fund projects

and work has already started on some. Projects include wetland

protection, weed control in Conway River and protection and

enhancement or riparain areas.

Hurunui Water Project

The Hurunui Water Project Ltd (HWP) proposes to develop

a community irrigation scheme which includes water storage

dams and hydro power generation. The resource consents

sought have been delayed by the Hurunui Waiau catchment

moratorium. While the moratorium was lifted on 2nd October

2011 applications cannot be processed until 2 April 2012.

HWP’s applications will subsequently be held until 2 April 2012,

at which stage processing will begin.

Hurunui Water Project – Waitohi Proposal

This proposes to develop a series of four water storage dams

on the Waitohi River to irrigate 58,500 ha of land in the Hurunui,

Waipara and Kowai catchments. The dams are proposed to be

located at Hurricane Gully; Seven Hills; Inches Road and in the

Lower Gorge.

Run-of-river water would be taken directly from the Hurunui

River as the predominant supply of water when it is available.

When this water is not available, they intend water stored in the

Waitohi River catchment to be released from the dams to meet

the irrigation demand and provide hydro-electricity generation

capability. Water stored within the dams will be sourced from

both the Hurunui and the Waitohi Rivers.

Hurunui Water Project

South Branch Hurunui River and Lake Sumner Proposal

This proposal involves the abstraction of water from the Hurunui

River, via either an intake near the confluence of the Mandamus

River or an intake 1-2 kilometres upstream from the Dampier

Stream confluence to irrigate approximately 42,000 hectares

of land in the Hurunui and Upper Waipara catchments. Two

storage structures are proposed; a dam on the South Branch of

the Hurunui River and a weir structure on the main stem of the

Hurunui River, just downstream of the outlet from Lake Sumner.

The proposed hydro power generation will be either on the

scheme distribution canal, or located at the proposed dam on

the South Branch of the Hurunui River, or both.

Other Key Long Term Opportunities

and Challenges

• A long term challenge for the Amuri Ward will continue

to be overcoming the shortage of farm labour.

• A recent upsurge in migrant workers has given the

skill shortage a boost but has provided a new set of

challenges.

• It continues to be a challenge for new small businesses

to find premises. Correctly zoned areas are required to

meet the needs of today and the future.

• Another challenge, shared by many small rural towns

in New Zealand, is the viability and thus the retention

of local services and businesses. Economies of scale,

potential efficiencies of centralisation and greater use

of technology all impact on the sustainability of small

businesses and government agencies alike.

• Increased fuel prices in recent years and the recent

economic down turn may have a challenging impact on

the ward’s economic wellbeing.

• Key long term opportunities include ongoing prospects

for tourist related activities and general promotion of

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businesses in the Ward.

• There are potential opportunities for the wider

Culverden area to become an attractive option as a

residential location for employees working in Hanmer

Springs.

• There are potential opportunities for the wider Waikari

area to be attractive option as a residential location for

employees working in the vineyards in Waipara.

• Continuing development of Mt Lyford as a boutique

resort and ski area may benefit the ward’s long term

opportunities economic development and growth.

Council has adopted a Walking and Cycling Strategy,

which aims to facilitate the desires made by some

members of the community to improve the walking

and cycling linkages within the Hurunui District. Of

particular importance for the Amuri-Hurunui ward is

the completion of the commuter link between Waikari

and Hawarden.

Key Planning Assumptions

The recent worldwide economic downturn had a negative effect

on development, however, the significant growth in the dairy

industry may have shielded the area and it is anticipated that the

Amuri-Hurunui Ward has the potential for modest to substantial

growth. It is also expected that the ward is able to capitalise on

the benefits of tourist traffic and there is considerable potential

in the relatively ‘undiscovered’ lakes area.

Key Projects

Year Planned

Amuri 2012/13 2013/14 2014/15 2015-2022

Culverden Township Roadside Construction $12,000 $12,470 $12,886 $105,206

Rotherham Township Roadside Construction $4,000 $4,157 $4,295 $35,070

Waiau Township Roadside Construction $6,000 $6,235 $6,443 $52,602

Rotherham Hall (capital expenditure) $5,000 $2,078 $2,148 $17,534

Waiau Hall – heat pump upgrade $10,738

Waiau Hall – Kitchen upgrade $6,000

Rotherham Pool (capital expenditure) $2,000 $2,078 $2,148 $17,525

Culverden Township projects $17,000 $5,196 $5,369 $36,144

Rotherham Township projects $1,500 $1,559 41,611 $13,151

Waiau Township projects $2,000 $2,078 $2,148 $17,525

Culverden Reserves – walking track projects $5,000 $5,196 $5,369 $43,839

Rotherham Reserve (capital expenditure) $2,500 $2,598 $2,685 $21,919

Mt Lyford Reserve – BBQs $1,000 $1,039 $1.074 $8,768

Hurunui 2012/13 2013/14 2014/15 2015/2022

Hawarden-Waikari water reticulation $45,637 $50,710

Hawarden sewerage - desludging $103,563

Hawarden sewerage - pump $4,939

Hawarden sewerage – plant renewals $37,973

Waikari sewerage - desludging $70,000

Hawarden Township footpath construction $16,627 $80,295

Waikari Township footpath construction $16,000 $17,181 $59,979

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Hurunui Community Long Term Plan 2012 - 2022

Amuri-Hurunui Ward - Sample Properties

Property

Capital

Value

Supply

Water

Units

No of

Fixed

Charges

Actual

Rates

2011/2012

Proposed

Rates

2012/2013

Increase/(Decrease)

$ %

Waiau Township 200,000 Waiau Town 147 1 $1,275.40 $1,321.31 $36.92 2.89%

Rotherham Township 270,000 No water n/a 1 $1,125.37 $1,155.69 $30.33 2.69%

Culverden Township 215,000 Culverden 322 1 $1,415.94 $1,459.27 $43.33 3.06%

Amuri Rural 2,215,000 Waiau Rural 8 1 $8,083.30 $8,433.62 $350.31 4.33%

Amuri Rural 7,725,000 Amuri Plains 7 4 $11,222.30 $11,782.84 $560.55 4.99%

Hawarden Township 138,000 Hawarden-Waikari 292 1 $1,362.90 $1,405.65 $42.75 3.14%

Waikari Township 175,000 Hawarden-Waikari 694 1 $1,718.89 $1,779.97 $61.08 3.55%

Hurunui Rural 3,435,000 Hurunui Rural 2 1 $5,339.19 $5,774.60 $435.41 8.15%

Chip Sealing, Princes Street, Waikari

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Cheviot Ward Profile

Background and History

Cheviot is well-known for its rural history, and from the

1950s, the township of Cheviot was a relatively settled, stable

community that was largely self-contained with various trades

and businesses.

Cheviot ward’s other settlements include Parnassus which

originally had a railway station, a sole-charge school and some

businesses. The famous Waiau River road/rail bridge was here,

before being abandoned and replaced with a new road bridge.

Prior to the opening of the old bridge in the 1930s a ferry

across the river carried goods north and south. In the 1950’s the

settlement of Spotswood had a hall (which is still used regularly

today) and a public library. Gore Bay was a largely picnicking and

holiday venue with some permanent residents, and Conway Flat

had its own school. Domett, originally a railway town, is now

only populated by farms, and the old Domett Railway Station

has now been relocated to the main road as a cafe.

The Cheviot Rural Water Supply was put in place in 1971,

with further extensions in 1980. Cheviot District High School

transformed to an area school in 1976, and in 1978, the

township’s old hospital was converted to a medical centre.

Recreation / Visitor Attractions

The Cheviot area offers a variety of quality accommodation,

from hotels and motels to farm stays and home stays that

provide a traditional slice of kiwi life. In the township there are

several cafes, a museum and a golf course.

The Cheviot Hills Domain and Mansion Foundation was the

original site of the historical home of the founder of Cheviot,

William “Ready Money” Robinson. The front steps of the

mansion are still in place, and lead into the cricket pavilion. The

domain has a charming walkway and superb picnic spots. St

Anne’s Lagoon, about 2 km north of Cheviot, is a popular nature

reserve that used to provide Mäori settlements around the area

with eel. The Sunday Craft Market is a great place to stop, with

a great range of handmade crafts of very high quality available.

The market is often there on Fridays too, weather permitting.

Gore Bay is nature’s treasure trove, offering great surfing,

amazing walks and popular camping grounds and the nearby

Cathedral Gully, a spectacular weathered clay canyon. The

Hurunui and Waiau Rivers are easily accessible for salmon, trout

and white bait fishing, while Conway Flat is yet another stunning

site for surf casting. The area’s spectacular coastline provides

opportunities for watching both whales and sea birds.

Current Profile

The population of the Cheviot Ward is estimated at 1,340.

The Cheviot Ward had a population count of 1311 in the 2006

Census. It had experienced a slight decline (around 30 people)

over the last two census periods. Cheviot Ward’s residents

make up approximately 12% of Hurunui District’s population

as a whole.

State Highway 1 runs through the centre of the Cheviot

Township. This is a great strength for development and growth,

as it makes the township highly accessible, as well as visible,

while simultaneously increasing visitor numbers through traffic

and heavy transport.

The importance of traditional farming is an on-going strength in

the Cheviot economy.

With the closure of Parnassus School, the Cheviot Ward is

home to only one school now – the Cheviot Area School in the

Cheviot Township.

The Cheviot Medical Centre operates from an old converted

building that is less than ideal for the provision of services and

is unlikely to be adequate for future demand. A new purposeddesigned

building or an upgrade to the existing medical centre

is proposed for consideration for 2016/17.

Based in the Cheviot Township are volunteer fire and ambulance

services and two full-time police officers. A council service

centre is also located there, and the community library is based

at the Cheviot Area School. A volunteer rural fire force operates

at Conway Flat.

Ward Governance

District Councillors are responsible for representing the

interests of their ward, setting Council policies and monitoring

the Council’s performance. They are elected every three years

by the voters of their ward.

The Cheviot Ward is currently represented by one councillor:

Vince Daly.

The Cheviot Council committees include the Cheviot Ward

Committee, and Reserve Committees at Spotswood, Cheviot,

Domett and Port Robinson.

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Hurunui Community Long Term Plan 2012 - 2022

Key Long Term Opportunities and Challenges

Changes to staffing at the Council Service Centre brought

about an opportunity to review current services and look at

opportunities for the future. After considering public feedback,

the Cheviot Ward Committee’s preferred option is for a

combined Service Centre/Library to be developed on the

existing service centre site. Through this plan therefore, is a

proposal to move the community library from the Cheviot

Area School, where this is now based, into the service centre

in 2012/13. The school library would remain in the school. A

working party is scoping and developing a plan to take to the

community for further consideration before the final plan is

confirmed.

A growth strategy for the Cheviot township and the coastal

areas, predominantly Gore Bay and Port Robinson area, was

developed in 2007/08 with extensive community input.

The impact of tourism and tourist traffic on local services and

amenities present key long term challenges and opportunities.

Changes in Cheviot Ward’s land use, such as rising numbers

of vineyards, lifestyle blocks (particularly at Gore Bay and

Port Robinson), irrigation, and tourism, may result in new

opportunities and challenges.

Key Planning Assumptions

Population growth is projected to be restrained and Cheviot

has historically lacked popularity as a retirement area (as

elderly residents tend towards areas with more support

services). Recent interest by some in the comparatively low

cost of housing in Cheviot, indicate that some people wishing

to leave Christchurch post the earthquakes, are finding the area

attractive even without these supports.

A new medical centre or an upgrade to the existing building is

proposed for the Cheviot township in 2016/17. Full scoping of

the options and extensive consultation will be carried out prior

to any final decisions being made.

Key Projects

Year Planned

2012/13 2013/14 2014/15 2015-2022

Water pipe renewal $62,352

New asset pipe $60,000 $62,352 $64,428 $526,032

Sewerage - plant renewals $10,994 $36,498

Sewerage - desludging $77,749

Sewerage - wave band correction $30,822

Cheviot Ward footpath construction $25,000 $25,980 $26,845 $219,183

Cheviot Ward drainage improvements $5,000 $5,000 $5,196 $5,369

Cheviot Medical Centre new building $1,150,700

Cheviot Library / Service Centre $100,000

Cheviot Ward - Sample Properties

Property

Capital

Value

Water

No of

fixed

Charges

Actual

Rates

Proposed

Rates

Increase (Decrease)

Supply Units 2011/2012 2012/2013 $ %

Cheviot

Township

170,000 Cheviot 0.5 1 $1,512.82 $1,662.99 $150.99 9.93%

Cheviot Rural 2,025.000 Cheviot 2.5 2 $4,225.26 $4,686.27 $266.48 10.91%

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Glenmark Ward Profile

Background and History

The area of Glenmark dates back to the original owner of

Glenmark station, George “Scabby” Moore. Like other

Canterbury runholders he built up his property on the back

of profitable pastoral farming, the generosity of his bank, and

his use of cheap leasehold land. He began as the farm manager,

and acquired Glenmark at auction in 1873. He paid £90,000 for

38,935 acres (15,756 hectares) of freehold land, but this was

linked to another 78,740 acres (31,865 hectares) of leasehold

land. Eventually the run carried over 90,000 sheep and was the

most valuable in the colony. Holdings on this scale were not

found in the North Island.

Moore was notorious as a hard employer and a bad neighbour.

His station was for years Canterbury’s scabbiest run, in fact

at one stage his fines for owning diseased sheep amounted

to £2,400. It is believed that Moore sought to discourage

prospective purchasers of his leasehold land by keeping the run

infected.

Waipara led the way in rural irrigation schemes by opening its

No. 1 Rural Reticulated Water Supply Scheme in 1986 - the

first water harvesting scheme in New Zealand. By the turn of

this century the area had become a significant wine production

region, accommodating fourteen wineries.

The township of Waipara has its origins as a railway town, at

the junction of the main trunk line and services heading west. It

was famous for having the longest siding in the South Island. For

many years Waipara was also home to State forestry workers

and nassella tussock grubbers, but more recently it has become

home to wine workers.

The smaller settlement of Greta Valley was created in the late

1970s, complete with amenities, a primary school, a church and

a library service. Scargill owes its existence to the Christchurch/

Picton railway line, while Omihi already housed some services

including a primary school, a community hall and a railway

station in the 1950s. The beach settlement of Motunau Beach

has expanded over the past 50 years, with a third subdivision

recently being developed, complementing the many earlier

“traditional Kiwi baches” that characterise this settlement.

The Glenmark rugby club in Omihi has produced more All

Blacks than any other club in NZ -14 in all at last count!

Recreation / Visitor Attractions

The Waipara region is one of New Zealand’s most rapidly

expanding wine areas, producing in the order of 1,000,000

cases of award winning wines in an average year, including

Pinot Noir, Chardonnay, Riesling, Sauvignon Blanc, Pinot Gris,

Gewurztraminer, Merlot and Shiraz. Daily wine tours and

personal excursions are available at many of the wineries.

The Glenmark Ward also features the Glenmark railway, where

one can recall the era of rural train travel with a ride in vintage

former NZR passenger carriages through scenic Weka Pass on

the 13-kilometre-long railway from Waipara to Waikari, using

vintage former NZR steam and diesel locomotives.

There are many and various accommodation options available

in the area.

The Motunau Beach settlement is a great place to retreat and

enjoy the quiet seaside ambience. Sea fishing, marine wildlife

watching and diving are just some of the great adventures on

offer. In nearby Greta Valley and Scargill a peaceful, rural farming

atmosphere still exists.

The Canterbury regional landfill at Kate Valley is located within

the Glenmark Ward. The landfill has areas of regenerating native

bush and wetlands which form the nucleus of the Transwaste

Tiromoana Bush Restoration plan. Transwaste are planning for

Tiromoana Bush to be a major national feature, with recreational,

educational and scientific opportunities for present and future

generations of New Zealanders and tourists.

Current Profile

The population of the Glenmark Ward is estimated at 1,170.

The Glenmark Ward population was 1,143 people at the time

of the 2006 Census an increase of around 300 people over the

previous five years. Statistics New Zealand predicts further

increases for the area, but at a more modest rate than the

previous five year period. Glenmark Ward’s residents make up

approximately 11% of Hurunui District’s population as a whole.

The Waipara Wine Valley offers ideal conditions for growing

premium quality grapes, the combination of hot summer

temperatures, well-drained soil and protection from the cool

easterly wind makes for award winning wines. It is the fastest

growing wine region in New Zealand with around 80 vineyards

in the Waipara Wine Valley covers more than 1,200 hectares of

plantings, including the extended Glasnevin area of the Amberley

Ward). The north facing moderately sloping terrain provides an

ideal sun trap for fruiting vines.

The Canterbury regional landfill at Kate Valley is

located within the Glenmark Ward. Council has an ongoing

commitment to ensuring that this landfill operates in line with

its consent conditions, and that the interests and values of the

Hurunui community are effectively represented and protected

throughout the planned 35 year life. A Community Trust,

established and funded by the landfill company, provides financial

benefits to the neighbouring community, primarily focused on

Waipara. Because Council has no involvement in this Trust or its

disbursements, this Long Term Plan does not take into account

any community projects or developments funded by the Trust.

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Hurunui Community Long Term Plan 2012 - 2022

There are three primary schools in the Glenmark Ward – Greta

Valley, Omihi, and Waipara, as well as the Glenmark Playcentre.

A community library, run entirely by volunteers is run from the

Greta Valley School.

Waipara Township is home to the ward’s New Zealand Fire

Service volunteer fire brigade. Volunteer rural fire forces

operate from Motunau Beach and Scargill.

Ward Governance

District Councillors are responsible for representing the

interests of their ward, setting Council policies and monitoring

the Council’s performance. They are elected every three years

by the voters of their ward.

The Glenmark Ward is currently represented by one councillor:

• Russell Black.

There is no ward committee representing the Glenmark Ward.

The Glenmark Ward has, however, the Glenmark Reserve

Committee, the Waipara Residents Association, the Waipara

Wine Growers and the Waipara Valley Promotions. In addition,

Omihi, Scargill and Motunau Beach have their own residents

groups.

Key Long Term Opportunities and

Challenges

community to improve the walking and cycling linkages within

the Hurunui District. Of particular importance for Glenmark

Ward is the proposed commuter route from Amberley to

Waipara.

The Greening Waipara project provides environmental

opportunities by focusing on promoting non-regulatory

indigenous and exotic biodiversity initiatives to achieve its goals

relating to sustainable agricultural practices. The project is

sponsored by Four Leaf Japan Co Ltd and the Bio-Protection

Research Centre at Lincoln University.

Drinking water continues to be a challenge for Waipara – both

availability and hardness.

Development proposals for the Waipara area are causing

concerns regarding ‘sprawl’.

Key Planning Assumptions

The worldwide economic downturn will likely have a negative

effect on growth and development in farming and associated

rural activities in the Glenmark Ward. It is not expected to effect

change to any large degree in the next ten years in regards to

growth and development in the wine and tourism areas, resulting

in the continued demands and pressures on infrastructure in the

Waipara area.

The Waipara growth strategy and concept plan, when

completed, will identify long term opportunities for the

Glenmark Ward.

Last year, a number of Waipara Valley wineries and other

businesses created a collaborative group to market and promote

the region. This group, called Waipara Valley NZ, includes over 15

wineries and other businesses and is supported and resourced

by Waipara Valley Winegrowers and the Hurunui Tourism Board.

Local opportunities will be afforded by the funds available from

the Kate Valley Community Trust.

Key long term challenges include the limited of availability of

labour and housing to support Glenmark Ward’s wine industry

and tourism development.

Future challenges are also likely to involve pressure on local

infrastructure due to an increase in Glenmark Ward’s industry

and population.

The Council has adopted a Walking and Cycling Strategy, which

aims to facilitate the desires made by some members of the

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Key Projects

Year Planned

2012/13 2013/14 2014/15 2015-2022

Waipara Township water pipe renewal $20,000

Greta Valley Sewerage – plant renewals $17,000 $18,255

Greta Valley Sewerage – electrical/communications $2,000 $2,078 $2,148 $17,525

Motunau Beach Sewerage $35,000 $144,326

Glenmark Ward - Sample Properties

Property

Capital

Value

Supply

Water

Units

No of

fixed

Charges

Actual Rates

2011/2012

Proposed

Rates

2012/2013

Increase (Decrease)

$ %

Motunau Beach Property 390,000 Hurunui

Rural

0.5 1 $1,467.34 $1,592.07 $124.73 8.50%

Waipara Township 220.000 Waipara 66 1 $908.48 $974.51 $66.03 7.16%

Glenmark Rural

1,900,00 Hurunui

Rural

7 2 $6,959.65 $7,740.85 $781.20 11.22%

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Hanmer Springs Ward Profile

Background and History

In its very early days, the presence of the hot springs made

the Hanmer Springs township a popular visitor destination, and

entrepreneurs were quick to offer accommodation for travellers

and tourists. This popularity as a holiday destination continues

today and many tourism and hospitality focused businesses have

flourished as a result.

Timber logging and milling of the surrounding forests commenced

in 1900 as part of a Government scheme employing prison

labour. There have been subsequent changes of ownership and

operation of this forest over the years, culminating in the recent

closure of local milling, and Ngai Tahu taking over ownership as

part of New Zealand’s treaty settlements legislation.

The well known Queen Mary Hospital site dates back to the

establishment of a Soldiers Hospital in 1916, for the recuperation

and rehabilitation of injured and war weary soldiers returning

from the WW1 front lines. The surrounding park-like grounds

and magnificent trees add to the special value of this nationally

recognized heritage site.

In late 2008 the council and the New Zealand Government

reached an agreement that has secured the future of a

substantial six hectares of the old Queen Mary Hospital site

in public ownership for present and future generations of New

Zealanders. The Crown vested the land and protected Heritage

buildings in the Council in 2010. Most recently the Hanmer

Springs Township has undergone a facelift through the Hanmer

Springs Growth Strategy. The upgrade of the town centre was

completed in 2010. Ongoing upgrades have been applied to the

reserves and walkways in the area.

Community Board Vision

The Hanmer Springs Community Board has a vision for Hanmer

Springs as a place for all to live, work and play. Their vision is;

“a place for all ages and stages of life, with a focus on community

growth, provide a sustainable environment for people to visit and live,

and expand the tourism opportunities of the area.”

Recreation / Visitor Attractions

Situated in a high country basin, the small, natural alpine spa

village of Hanmer Springs has been a favourite retreat for

generations of New Zealanders. The award winning Hanmer

Springs Thermal Pools and Spa complex is a major draw card,

and the pristine alpine environment with its forests, rivers

and mountains enhance its appeal as the ultimate year round

destination.

Hurunui Community Long Term Plan 2012 - 2022

There’s a substantial variety of accommodation available,

complimented by delightful restaurants, cafés, boutique shopping,

galleries and craft shops.

Hanmer Springs offers activities for all tastes and fitness levels,

with numerous walkways, golf, horse riding and mountain biking

options available. There are opportunities for pure relaxation

with massage & wellness treatments or blood pumping, thrill

seeking adventures such as jet boating, white water rafting,

bungee jumping, and four- wheel driving.

The newly vested St James Station Conservation Area and Queen

Mary Hospital site will also provide both locals and visitors with

exciting new opportunities for recreational activities.

Current Profile

• The population of the Hanmer Springs Ward is

estimated at 1,040.

• With more than 600 holiday homes in the Hanmer

Springs and its popularity as a tourist destination, the

number of people in the area during peak holiday times

can be as high as 6,000

• The hospitality industry is the single largest employer

in the Hanmer Springs Ward, employing around 30% of

the ward’s full time workers

• Hanmer Springs has always promoted a general ‘health

and wellness’ theme

• There are local town planning controls in place in the

Hanmer Springs Township to ensure that the look and

feel of this special alpine spa village are preserved for

future generations

• The Hanmer Springs Thermal Pools and Spa is an award

winning tourist attraction. Owned by the Hurunui

District Council, the complex hosted 527,801 visitors

during the twelve months ending June 30th 2011. From

2009-11 the Thermal Pools and Spa had an increase in

visitor numbers of 4%. The surpluses achieved at the

Hanmer Springs Thermal pools & Spa were $2,064,966

in 2009/2010 and $2,131,000 in 2010/2011. From these

surpluses, a total of $3,492,460 was transferred from

the Thermal Pools surplus for the funding of district

wide reserves. For the 2011/2012 year, the amount

to be transferred from the Thermal reserve to offset

the costs of reserves throughout the District has been

budgeted at $2,021,372

• The Hanmer Springs Township is home to one primary

school, a child care centre and a Playcentre. Council

also runs a service centre/ library in the township

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• In response to growth and demand, a purpose designed

medical centre was built in Hanmer Springs in 2008

• Hanmer Springs has a combined emergency response

facility which houses Fire, Police, and Ambulance

services

Ward Governance

District Councillors are responsible for representing the

interests of their ward, setting Council policies and monitoring

the Council’s performance. They are elected every three years

by the voters of their ward.

The Hanmer Springs Ward is currently represented by one

councillor:

Michael Malthus (who is also Deputy Mayor).

In addition, the Hanmer Springs Ward has the publicly elected

Hanmer Springs Community Board. The current representatives

on the Board are;

Jason Fletcher (Chair)

Bill Clarkson

Rosemary Ensor

Kate Poiner

Chris Preston

Hanmer Springs also has its own Business Association.

Key Long Term Opportunities and

Challenges

Community:

• Target local population by 2023 of 1500 people

• Provide housing for all ages and stages of life

• Be a recognised sustainable community

• Provide access to affordable housing for the retired and

those on low incomes

• Provide village wide high speed broadband connectivity

• Extend the pedestrian friendly approach to the town

• Ensure the Queen Mary Hospital opportunities are

realised for both the business community and the

residents

Commercial and Tourism:

• A long term challenge for the Hanmer Springs Ward is

to maintain annual visitor growth

• The vesting of the 6 hectare reserve area on the Queen

Mary site represents a substantial opportunity for the

Hanmer Springs Ward and the district

• The Track Network provides a great opportunity to

add to Hanmer’s visitor attractions

Long term security of access to the forests that

surrounds Hanmer.

• The high country areas are some of the best in new

Zealand and offer visitors unique and easy access.

• Maximisation of the commercial Zoned area in the

village

• Hanmer Springs needs to tap into the conference

market

• Hanmer Springs needs better community facilities in

order to attract and keep people

Infrastructure:

• Improved access to the high-country will open up great

opportunities for further tourism development

• Entry at State highway 7 and 7a needs to be safer and

more user friendly

• Environment Canterbury has made it a requirement

that we improve the quality of sewage outfall.

• Peak loading for water needs to be safe guarded

Key Planning Assumptions

The Hanmer Springs area is predicted to continue to grow at

above district average rates. Whilst there are some important

challenges facing tourism, it is assumed that on balance whilst

there has been an impact from the economic downturn on

international travel, the Christchurch/Canterbury market has

continue to grow, further strengthening the already strong

demand for holiday homes.

Hanmer Springs is a popular location for retirees and those able

to work from home. It is predicted that as telecommunications

and technology advance over the coming years, this market will

further increase.

The key projects table on the next page sets out the work we

are planning over the next ten years. In addition, we are also

keen to:

• Seek accreditation as a sustainable community

• Provide Village wide high speed broadband connectivity

• Seek continued funding and upgrading of the Track

Network

• Look at the purchase the Heritage Forrest and link to St

James walking/cycling /horses and extend to Woodbank

Road and Clarence Valley

• Improve the roads and access to the high-country

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Hurunui Community Long Term Plan 2012 - 2022

• Improve the entry at State highway 7 and 7a

• Improve the sewage out fall water quality to meet

ECAN requirements

• Start looking at water supply for 2023

Key Projects

Year Planned

2012/13 2013/14 2014/15 2015-2022

Land purchased for water treatment $140,000

Water – renewal reticulation (from Asset Management Plan) $623,656

New sewerage monitoring bores - disposal $555,350

New sewerage monitoring bores - desludging $93,528

Stormwater – Capital Expenditure $62,352 $154,086

Sewer Improvements $220,000 $1,288,560

Roading - renewals $15,000 $15,588 $16,107 $131,511

Roading – new construction $45,000 $46,764 $48,321 $394,527

Street lighting $15,000 $15,588 $16,107 $131,511

Hanmer Springs Hall – stage upgrade $10,000

Hanmer Springs Hall – extension $193,284

Sports ground upgrade $30,000

Exercise equipment $35,000

$1,077,

379

Additional seating $3,000 $2,078 $1,074

BBQ equipment – Brooke Dawson $5,000

BBQ equipment – Tarndale $5,196

Reserve capital projects $10,000 $10,392 $10,738 $87,681

Conical Hill Walkway Project $119,450

New welcome sign on SH7 $70.000

Hanmer Springs Ward - Sample Properties

Property

Hanmer Springs

Township (Tourism)

Hanmer Springs

Township

Hanmer Springs

Rural

Capital

Value

Supply

Water

Units

No of

fixed

Charges

Actual Rates

2011/2012

Proposed

Rates

2012/2013

Increase (Decrease)

$ %

405,000 Hanmer Springs 215 1 $2,061.62 $2,142.58 $80.96 3.93%

430,000 Hanmer Springs 27 1 $1,626.17 $1,689.71 $63.53 3.91%

3,325,000 No Water n/a 1 $4,267.03 $4,464.69 $197.67 4.63%

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Council Activities

69 Introduction

71 Water Supply

79 Sewerage

84 Stormwater and Drainage

88 Roads and Footpaths

94 Community Services and Facilities

96 Community Services

102 Property

108 Reserves

112 Environment and Safety

115 Emergency Services

119 Resource Management

122 Compliance and Regulatory

Functions

126 Waste Minimisation

130 District Promotion

135 Hanmer Springs Thermal Pools and Spa

141 Governance

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Council Activities

Introduction

In this section, you will find detailed information about our plans

for the next ten years, with particular focus on the next three

years. Our work is grouped into nine categories:

1. Water Supply

2. Sewerage

3. Stormwater and Drainage

4. Roads and Footpaths

5. Community Services and Facilities

6. Environment and Safety

Hurunui Community Long Term Plan 2012 - 2022

Community Outcomes and Activity

Groupings

Our community outcomes express what we want to achieve

through the delivery of a particular group of activities. The

chart on the next page shows how the groups of activities are

linked to specific community outcomes.

Plan Review/Public Consultation

This long term plan will be comprehensively reviewed each three

years. Before it is finalised each time by the Council, the public

will have the opportunity to give their opinion on any aspect

of the draft plan beforehand through a special consultative

procedure. Parts of the plan may be reviewed at other times if

circumstances alter what we had intended in the plan. The next

long term plan review is due in 2015.

7. District Promotion

8. Hanmer Springs Thermal Pools and Spa

9. Governance

The following pages go into detail about each category and its

associated activities. The format for each is similar and although

some information is relevant for some activities and not for

others. In each of the groups of activities, you will be able to

find out:

Council’s overall aim in relation to the activity

• Background to the activity

• How the activity will contribute towards the

achievement of our community outcomes

• What the current situation is in relation to the activity

• What council’s future plans are in relation to the activity

• How the activity is funded

• How the activity is maintained and operated

• What significant negative effects are caused through the

activity

• Assumptions and risks that are associated with the

activity

• How we measure or monitor our progress

• Financial forecasts

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Contribution to Community Outcomes

Community Outcomes

Groups of

Council Activities

A desirable

and safe place

to live

A place where our

traditional rural

values and

heritage make

Hurunui unique

A place with a

thriving local

economy

A place that

demonstrates

environmental

responsibility

A place with

essential

infrastructure

Water Supply ü ü

Sewerage ü ü ü

Stormwater and

Drainage ü ü

Roads and Footpaths

ü

Community Services

and Facilities ü ü

Environment and Safety ü ü

District Promotion

ü

Hanmer Springs Pools

and Spa ü ü

Governance

ü

70


Water Supply

Overview

Water Supply covers the following activity described below:

Activity 1: Water Supply (township supply and rural water

schemes)

Our Aim

To provide a sustainable supply of water that meets the needs

of present and future domestic and agricultural/horticultural

consumers, and complies with the New Zealand Drinking Water

Standards.

Why is the Council Involved?

The subject of water is of major importance to our Council. It is

an on-going challenge for us to provide a plentiful water supply,

particularly given the drought prone nature of the Hurunui,

and to have water that is of a good drinking standard while at

the same time operating an efficient and cost effective service.

Water is of primary importance to any community and has a

direct influence and impact on the economic, social, cultural and

environmental wellbeings of our population.

Community Outcomes

The Water Supply activity described in this section, primarily

contributes to two of our community outcomes:

1. A desirable and safe place to live:

• We have attractive well designed townships

• Communities have access to adequate health and

emergency services and systems and resources

are available to meet civil defence emergencies

• Risks to public health are identified and

appropriately managed

2. A place with essential infrastructure:

• We have a strong emphasis on service delivery

across all infrastructure including roading, water

(for drinking and development), waste water,

stormwater and solid waste

Major Projects Planned

Project

Renewal reticulation -

Amberley

Commission SH1 bore -

Amberley

Rising Main upgrade -

Amberley

Renew and upgrade pipes

and fittings – Ashley Rural

Mixed Oxidant treatment

plant – Ashley Rural

Water security (tank farm)

– Culverden Township

Drinking Water Standards

Stage I – Waiau Township

Mixed Oxidant treatment

plant – Waiau Rural

Hurunui Community Long Term Plan 2012 - 2022

Year Planned

2012/13 2013/14 2014/15

$25,000

$236,500

$170,000 $124,704

$90,000

$205,000

$98,000

$51,960

Renew pipework- Cheviot $62,352

Mixed Oxidant treatment

plant (Main, Parnassus,

Blythe, Kaiwara) - Cheviot

Pipe renewal – Waipara

Township

Mixed Oxidant treatment

plant – Waipara Township

Land purchase water

treatment – Hanmer

Springs

Renewal mechanical –

Hurunui Rural

Renewal pipe – Hurunui

Rural

Mixed Oxidant treatment

plant (#01, Peaks, L.

Waitohi) – Hurunui Rural

$293,000

$20,000

$98,000

$140,000

$260,933

$128,856

$25,000 $25,980 $26,845

$120,000 $124,704 $128,856

$269,000

Significant Negative Effects

There is potential for significant negative effects on the

environmental and cultural wellbeing of the community if there

is excessive abstraction of water. Abstraction is managed to

minimise the chance of outages or disruption to supply. There

are also potential negative public health effects in providing

water in some areas that does not meet current drinking water

guidelines for biological contaminants. We issue public “boil

water” notices when positive samples are detected. We are

working toward improving the standard of our water supply to

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meet the New Zealand drinking water standards over the next

10 years or so. Ultimately, we aim to negate the need for boil

water notices in the future.

Development contributions are being collected to offset the

negative economic effects on ratepayers of upgrades of supplies

in the District that are necessary to cater for growth. Such

upgrades will help to ensure that the present level of provision

of water supply services is sustainable.

Emergency Management

In an emergency, particularly a civil defence emergency, we will

continue to deliver services as long as it is safe and practical to

continue to do so. Water is a priority commodity at any time,

and no less so in the event of a civil emergency. Every effort

will be made to maintain our water services in an emergency

situation, or when major damage has occurred for whatever

reason.

Financial Summary

A financial summary for this group of activities is shown at the

end of the Water Supply activity.

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Activity 1: Water Supply

Overview

The Water Supply activity includes the various functions of rural

and township water supplies.

Current Situation

The quality and quantity of drinking water in the Hurunui

District remains a concern and priority for us.

There are currently 13 Council owned water schemes in the

District, extracting water from 22 different sources, five others

are for emergency backup supply if required. Eight of these intake

sources are on permanent boil water notices (method used for

killing any bacteria, viruses, ova and cysts that may be present

in potentially contaminated water). The schemes are overseen

by Water Committees with delegated responsibilities for the

planning and development of their schemes, alongside council

officers. A schedule of the water schemes is included within

this section. On-demand water is supplied to 8 of the urban

communities in the district; these being from 7 high pressure

schemes consisting of 9 water intakes and 60 km of pipe.

Other small urban communities (Leithfield, Cheviot, Gore Bay,

Rotherham, Greta Valley, Amberley Beach and Motunau Beach)

are supplied via tanks from restricted rural supplies. All rural

communities in the district are serviced by Council operated

restricted-flow water supplies providing water to consumers

as “units” of water supplied into individual tanks. One unit is

1800 litres supplied over 24 hours, except for Balmoral and

Amuri Plains, where a unit is 1000 litres per day. The Hurunui

and Cheviot Rural Water Schemes cover four separate supplies

within each of their areas. The Ashley Scheme also has four

distinct intake sources and includes part of the Waimakariri

District within its boundaries.

All townships with on-demand supplies, except Leithfield Beach

have metered connections and charges are made on actual

water consumption used.

The levels of service for our water supplies can be found in

the appendices section of this plan. These levels of service are

monitored internally and will not be reported in the Annual

Report.

Plans for the Future

The availability of safe drinking-water for all New Zealanders,

irrespective of where they live, is a fundamental requirement

for public health. The revised Drinking-Water Standards are

a significant achievement in New Zealand’s endeavours to

maintain and improve the quality of drinking-water.

Since the publication of Drinking-Water Standards for New

Zealand 2000, the approach to managing drinking-water has

changed. The focus has moved from quality control to a broader

approach of quality assurance. This has been necessary due

to changes in technology, an improvement in our scientific

Hurunui Community Long Term Plan 2012 - 2022

knowledge and the requirement to address a broader range of

issues than previously covered. This change has been managed

though the Drinking-Water Standards for New Zealand 2005

(revised 2008) (DWSNZ).

The Health (Drinking Water) Amendment Act 2007 amended

the Health Act 1956 to require all drinking-water suppliers

providing water to consumers to develop and start to implement

a Public Health Risk Management Plan (PHRMP) to guide the safe

management of each minor drinking-water supply (501 to 5000

consumers) before 01 July 2014 onwards. A Public Health Risk

Management Plan is a tool to help suppliers identify, manage and

minimise events that would cause water quality to deteriorate.

This amendment marks a milestone in New Zealand in that, for

the first time, all drinking-water suppliers have a duty to ensure

their drinking-water supply is safe to drink.

The three main themes covered by the DWSNZ are maximum

acceptable values (water quality standards for microbial,

chemical and radiological determinants); the compliance criteria

and reporting requirements; and lastly, the remedial actions to be

taken when non-compliance is detected. The quality of the water

that is provided will continue to be governed by the DWSNZ,

which prescribes the maximum allowable concentrations of

potentially harmful contaminants that may be present in the

drinking-water supplied.

The penalties for failing to comply with DWSNZ are very severe

($200,000 plus for a continuing offence, and $10,000 for each

day of continued non-compliance). Accordingly, we have worked

hard with our local water and ward committees to ensure that

the requirements under DWSNZ are met within the PHRMP

compliance times specified, with latitude for affordability.

Six of our 22 water supply sources are defined as “minor”

supplies, which require PHRMP compliance with the Act by 1

July 2014. Of these seven intakes; three have approved PHRMP’s,

one has a current drafted PHRMP (to be submitted to Ministry

of Health (MoH) for endorsement); two are currently being age

tested (deep water secure sources); and the remaining one is

currently being drafted. The other 16 drinking water sources

are categorised as either “small”, “neighbourhood” or “rural

agricultural” with PHRMP compliance timeframes of 01 July

2015, 2016 or later than 2016 respectively. Table 1 in this section

details the situation for all of our drinking water supplies.

The cost to fully comply with DWSNZ is currently estimated at

an additional $14 million (capital works) and a further $484,000

per annum (operational costs) in today’s dollar value. Initial

discussions with the Ministry of Health (Canterbury District

Health Board) indicated that we must meet physical compliance

no later than three years after the final compliance approval

date for the PHRMP, for each shallow at-risk intake source.

This comes at a huge capital expenditure from 2017 to 2020.

We have raised with MoH, the affordability issue for a small

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rural council such as ours to meet these exorbitant costs. We

arrived at a proposed compromise to achieve full DWSNZ

compliance no later than ten years after the final approval date

for the respective PHRMP. The expectation from the MoH

is that we will, as a minimum, provide drinking-water to our

consumers that is bacteriologically free (meets compliance for

maximum acceptable e-coli contamination levels, but is still safe

to consume). Furthermore, we will show that we are making

provision for the impending capital cost impact through years

2024 to 2027 through a district-wide general rated scheme, thus

mitigate a repeated affordability argument in years to come. All

currently approved PHRMP’s will require a review to include

this MoH endorsed strategic approach.

We are planning to meet the drinking water standards in two

phases. The first will involve installing Miox treatments in each

of the nine at risk water intakes in the 2012/13 year. This will put

an end to our ‘boil water’ notices. The second phase involves

the actual upgrading to full compliance and the Miox treatments

will end. This last phase will occur between 2024 and 2027.

We have been undertaking a pipe replacement programme

over the past few years, and due to the extensive nature of the

Hurunui District, this will continue for many years to come.

Funding

Operational Costs:

Restricted Supply

• As a local Uniform Annual Charge on water unit

entitlement.

Unrestricted Supply

• Fixed costs – As a local Uniform Annual Charge.

Variable costs

• As a set price based per cubic meter of water as

recorded by the individual water meters.

Depreciation

Council does not cash fund depreciation on its assets.

Instead, it builds up a fund for future maintenance

through rating at a higher level than required to meet

the operating costs. See the Statement Concerning

Balancing of the Budget on page 33.

Capital Costs:

• Significant Council capital expenditure will be funded

by loan for the life of the investment pursuant to the

Internal Financing Policy.

• If loans are not raised then it will be treated as a fixed

cost and funded from annual rates.

via Development Contributions.

• Landowners with new connections will pay the cost of

connecting to the nearest main plus, if a new subdivide,

putting in the sub-main and any levies as specified in the

Development Contributions policy.

• Property owners wanting new connections will pay

those costs necessary for the connection.

Loan Repayments

• Significant Council capital expenditure should be funded

by loan for the life of the investment. Repayment of the

loan will be treated as a fixed cost and will be funded

from a local Uniform Annual Charge.

Table 1: Water Supply Source Definitions (re MoH criteria)

Source Type Population Category

Effective

Date

Amberley Town

• SH1, Leithfield Well 1300 Minor 2014

Amberley Beach

• Kowai Well 630 Minor 2014

Amuri Plains Well 400 Small 2014

Ashley Rural

• Main intake

• Mays

• Racecourse

Road

Well

Well

Well

2750

500

450

Minor

Small

Small

2014

2015

2015

Balmoral Rural Gallery 200 small 2015

Cheviot Rural

• Waiau River

• Blythe

• Kaiwara

• Parnassus

Well

Well

Gallery

Well

1340

65

162

100

Minor

Neighbourhood

Rural Agriculture

Neighbourhood

2014

2016

2016

2016

Culverden Well 475 Small 2015

Hanmer Town Gallery 1,500 Minor 2014

Hawarden / Well 750 Minor 2014

Waikari

Hurunui Rural

• No. 1

• Peaks

• Upper

Waitohi

• Lower

Waitohi

Gallery

Well

Gallery

Gallery

600

100

400

300

Rural Agriculture

Neighbourhood

Rural Agriculture

Rural Agriculture

2016

2016

2016

2016

Leithfield Beach Well 150 Small 2015

Waiau Rural Well 240 Rural Agricultural 2016

Waiau Town Well 420 Small 2015

Waipara Town Well 300 Small 2015

• If any of the Capital Expenditure caters for future growth

of the scheme, then that portion of the expenditure

that relates to growth may be funded from future users

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Hurunui Community Long Term Plan 2012 - 2022

Council Owned Assets

13 water schemes:

On Demand Water Schemes (Urban)

1. Amberley

2. Leithfield Beach

3. Culverden

4. Waiau

5. Waipara

6. Hanmer Springs

7. Hawarden-Waikari

Restricted Water Supplies (Rural)

8. Ashley

9. Amuri Plains

10. Balmoral

11. Waiau Rural

12. Cheviot

13. Hurunui

Table 2 shows the water network valuations as at 30 June 2011.

Maintenance and Operating Implications

We intend to retain the ownership of all public water supply

assets on behalf of the communities that these facilities serve.

Asset management, basic design work, contract documentation,

tendering, record keeping, operation and routine repair and

maintenance are to be carried out by our staff. Larger budget

capital works are likely to be let as contracts. Larger repairs,

work across state highways or arterial roads and some

emergency works may also be contracted to preferred or

available contractors. External consultants will be engaged only

for specialised tasks, where we do not have those skills in-house.

Information relating to the overall condition and performance of

the assets that make up the water supply networks in the district

are in our Asset Management Plans. Age and condition have an

influence on the maintenance of assets, but do not necessarily

impact on output and/or outcome performance. Breakages can

occur due to nearby earthworks, natural emergency events,

pressure waves (from pumps) or illegal connections that can

influence demand for water. Low performance can also arise

from an increase in demand from high growth, changes in

technology and materials, and changing expectations from the

community. The Water Asset Management Plan will be reviewed

and updated through 2013.

The Demand Management Strategy will look at significant

ways to improve forecasting, planning and upgrading of water

infrastructure into the future, thus addressing the national issue

of increasing competition for access to water. The challenges

of future growth, development and land-use changes (both

domestic and industrial) within the district and the subsequent

need to replace or renew supply infrastructure to meet these

needs, will drive us to reassess how we currently do our business

and to start thinking smarter and wiser. Water supply efficiency

is a core directive to ensuring that we use what we currently

have more effectively, before expensive upgrade works are

considered. We have a responsibility to help educate the public

Table 2: Water Network Valuations

Network Replacement Cost

Depreciated

Values

Amberley $2,815,297.48 $1,111,538.26

Amuri Plains $1,290,870.87 $800,292.87

Ashley $11,993,509.66 $8,349,455.36

Balmoral $1,312,486.28 $775,449.94

Blythe $401,350.63 $223,933.83

Cheviot $3,255,002.95 $1,513,348.23

Culverden $1,011,591.28 $380,681.82

Hanmer Springs $5,817,078.18 $3,645,959.74

Hawarden-Waikari $2,485,771.81 $878,670.62

Hurunui 1 $5,124,151.09 $2,321,822.64

Kaiwara $1,662,809.98 $954,166.69

Leithfield Beach $490,747.49 $275,692.71

Lower Waitohi $1,677,400.52 $814,691.71

Parnassus $1,106,936.83 $603,963.87

Peaks $273,119.55 $160,382.43

Upper Waitohi $2,279,526.49 $862,083.11

Waiau RWS $2,292,416.66 $1,100,388.11

Waiau Township $712,104.90 $200,642.77

Waipara $708,485.77 $254,815.72

to reduce water consumption and encourage other methods

to conserve water (such as grey water systems in new homes).

Most of the network reticulation is in good repair and operating

under a policy of renewal when necessary, thus reticulation should

remain serviceable indefinitely. Pumps, controls, telemetry (data

sent back to the office by radio) and water treatment devices

are repaired as the need arises and are replaced as the benefits

of repair are outweighed by replacement – usually every 12 – 20

years. Reservoirs, weirs, bores, and ponds are maintained on an

on-going basis. The asset ages of on-demand water networks is

quite recent, with the earliest network installations dating back

to 1955 (in Amberley).

Assumptions and Risks

Upgrading of water systems, new treatment plants and filtration

systems to meet Drinking-Water Standards New Zealand, have

all assumed financial subsidies from Central Government in

the past in order for the work to affordably proceed. However,

reduced national subsidy funding (less money available for all)

and the ever-increasing limiting eligibility criteria (specifically

the deprivation index to address more financially needy

communities) have put council in a position that requires

reconsideration of this hopeful approach. We will have to

fund the full cost from their perceived deep pockets, placing

more financial burden upon our communities to meet these

legislatively imposed standards.

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We will continue to make application for this subsidy yearly

from the Ministry of Health, wherever we see opportunity

within the constraints of the set and strict criteria applicable to

qualify for an adjudicated consideration.

Effort is continually on-going to establish the useful lifespan of

underground and fixed water supply assets. Most of the urban

reticulation is AC pipe (older community areas prior to early

1970’s) and PVC for new sub-divisions and replacement sections

of the current infrastructure.

Pipe material has performed satisfactorily since installation,

but renewal is anticipated for much of this over the next 20

years or so. We have been undertaking a renewal programme

for some years, which will continue so that the cost is spread

out rather than peaking at once. Expected life for AC is 60

years and 80 years for PVC and polyethylene (PE). Some AC

pipe has experienced wall softening, thus demanding repair

or replacement. This effect is localised in all networks, but

the frequency of pipe failure is closely monitored to ensure

replacement is carried out at the optimum time.

External and internal stresses determine the useful life of all

assets. The inability to pin-point these means approximate

values are applied to useful service lives. This implies that

renewal priorities are spontaneous (reactive based on incidents

of breakages), rather than being confidently known (proactive

based on scientific data). Better scientific information around

the pipeline infrastructure (sectional investigations for condition

ratings) could swing this approach to the NAMS best practice

asset management outcomes, but comes at a high initial cost.

Sectional Investigation Programmes (SIP) will be initiated to

selected schemes over the next three years to make inroads

towards this desirable outcome and improved proactive

forecasted replacement/renewal maintenance programmes.

We recognise risks associated with failure to supply safe drinking

water on public health and potential failure to supply where

natural disasters have the capacity to damage reticulation. The

rural character of the district means immediate assistance may

be limited at such times. We hold limited pipe and fittings stock

at each depot (dormant cash flows) and have built-in generators

or external plugs at some of the main pump stations. Reservoir

back-up when intakes are out of commission is very limited

(except for Hanmer Springs – tank farm). Operators and plant,

located at each depot, are a first point of call through these risk

associated periods identified.

All water networks operate under approved resource consents

to take water. Conditions are set with council utilities staff and

are administered by Canterbury Regional Council (Environment

Canterbury - ECan). All intakes are within consented limits at

present. It is assumed that future demand will be able to be

met with the capital projects planned and that the consents for

such will continue to be renewed as necessary and be able to

be complied with.

Council Utilities Team undertake emergency repairs to

the main line on the Waipara Water Scheme.

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Hurunui Community Long Term Plan 2012 - 2022

Development contributions are being collected to offset the

negative economic effects on ratepayers for future upgrades of

infrastructure in the District that are necessary to cater for

growth. Such upgrades will help to ensure that the present level

of provision of water supply services is kept sustainable.

Shared Services

We have an agreement with Waimakariri District Council to

supply water to the Ashley and Sefton parts of their district. As

such, approximately 1,650 Waimakariri ratepayers = many more

residents pay the water proportion of rates directly to us.

Community Outcomes

1. A desirable and safe place to live

2. A place with essential infrastructure

Goals

Supply water

to meet

consumer

needs

How we will

achieve our Goals

Provide a

continuous ‘ondemand’

supply of

potable water to

urban areas and a

‘restricted’ supply

of water to rural

areas

Undertake

a residents

satisfaction survey

Maintain and

improve water

schemes to comply

with DWSNZ

Water tested for

quality

Goals and Performance Measures

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

Major faults to water

supply pipelines

greater than 250mm

diameter that affect

customers are

repaired within 24

hours

Resident satisfaction

will continue to

improve over the

coming years

Install 9 mixed oxidant

treatment plants and

eliminate the need for

permanent boil water

notices

The safety standard

of potable water

improves each year**

No such faults were reported

during the year, but we have a better

system in place now to capture this

information and track the completion

of work via our service request

programme

Resident satisfaction levels have

improved since 2007 and in 2011

it reached 82.5%* satisfaction with

water quality. Satisfaction with

quantity of rural water was 81%.

We have 8 permanent boil water

notices in place.

Water standards are measured weekly

or monthly depending on the number

of consumers for each scheme.***

Our potable water met safety

standards in 85% of the district.

√ √ √ √

*Average score over three questions relating to pressure and flow of water (86%), appearance and taste (79%).

**We have been working to improve the safety standard of potable water in the district each year and last year we reached 85%.

***Each scheme, dependent on its risks at intake (shallow through river gallery would be high risk), has a monitoring regime associated with

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

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.






Financial Summary

A financial summary for this activity is shown on the next page.

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Water Supplies - Group Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

District Wide Rates 0 0 0 0 271,471 271,471 271,471 271,471 271,471 271,471 271,471

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

Other Income 109,485 221,616 111,380 114,772 118,411 122,310 125,788 129,341 133,434 137,927 142,441

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

Development Contributions 351,193 129,978 135,200 139,651 144,432 158,431 164,570 171,222 178,498 186,590 177,157

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

Operating Expenditure

Employee Benefits 592,896 619,190 638,571 658,013 678,880 701,233 721,171 741,542 765,009 790,768 816,650

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

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

Council 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

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

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

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

Capital Statement

Capital Expenditure

District Wide Water 96,602 32,713 33,996 35,127 36,335 50,835 52,770 54,908 57,250 59,865 49,835

District Wide Water - Miox Treatment 0 758,000 0 0 0 0 0 0 0 0 0

Amberley Water 14,678 261,500 10,392 279,220 142,170 448,773 108,700 0 0 0 0

Leithfield Beach Water 7,920 0 0 0 0 0 0 0 0 0 0

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

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

Waiau Town Water 8,659 205,500 520 537 555 575 597 621 648 678 709

Amuri Plains Water 0 4,500 4,676 4,832 4,998 5,178 5,375 5,593 5,832 6,098 6,378

Balmoral Water 15,756 16,000 2,078 3,221 4,443 3,452 2,389 4,972 2,592 2,710 5,670

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

Cheviot Water 707,957 81,000 143,410 81,609 84,413 87,453 90,782 94,460 98,488 102,988 107,722

Waipara Town Water 2,112 20,000 0 0 0 0 0 0 0 0 0

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

Hawarden-Waikari Water 16,520 3,000 0 46,173 4,443 575 3,703 51,332 5,184 678 0

Hurunui Rural Water 196,688 209,000 209,918 211,539 218,808 312,415 235,317 244,851 255,292 266,955 279,228

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

Funds Required

Operating Deficit 0 0 52,432 0 0 0 0 0 0 0 0

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

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

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

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

Funded by

Operating Surplus 48,866 29,938 0 122,763 399,407 534,111 561,154 596,229 750,794 909,318 878,055

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

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

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

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

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Sewerage

Overview

Sewerage covers the following activity described below:

Activity 1: Sewerage (township and rural sewer schemes)

Our Aim

To provide proficient, cost effective sewage disposal schemes

relevant to the needs of the community.

Why is the Council Involved?

Council provides a sewerage service to support the development

of the District and to protect the physical environment and

health of the community through good sanitary practice. We

try to ensure that adverse environmental impacts are avoided,

minimised or eased.

Community Outcomes

The Water Supply activity described in this section, primarily

contributes to three of our community outcomes:

1. A desirable and safe place to live:

• We have attractive well designed townships

• Communities have access to adequate health and

emergency services and systems and resources

are available to meet civil defence emergencies

• Risks to public health are identified and

appropriately managed

2. A place that demonstrates environmental responsibility:

• We protect our environment while preserving

people’s property rights

• We minimise solid waste to the fullest extent,

and manage the rest in a sustainable way

3. A place with essential infrastructure:

• We have a strong emphasis on service delivery

across all infrastructure including roading, water

(for drinking and development), waste water,

stormwater and solid waste

Major Projects Planned

Project

Amberley pipe upgrade $474,000

Hurunui Community Long Term Plan 2012 - 2022

Year Planned

2012/13 2013/14 2014/15

Amberley pond desludging $96,642

Amberley wastewater plant

renewals

$12,240 $10,780 $78,256

Cheviot wave board correction $30,882

Greta Valley wastewater plant

renewals

Motunau Beach wastewater

plant renewals

Hanmer Springs pond

desludging

Hanmer Springs disposal to

land option

Hanmer Springs treatment

pond aeration improvements

$17,000 $18,255

$35,000

$220,000

Significant Negative Effects

$93,528

$1,288,560

There are significant negative effects for environmental,

economic, cultural and social wellbeing from this activity. The

disposal of treated effluent to land and waterways carries

physical and health risks, although these are minimised by

ensuring that the reticulation and disposal systems comply

with the appropriate resource consents. All facilities are based

around pond treatment, which means any overflow or failure

at these locations will involve release of treated or partially

treated material. The lack of reticulated sewerage systems is

affecting the environmental and social wellbeing of some local

communities. However, the cost of installing such systems at

this stage, have an even bigger negative effect on the economic

wellbeing of these communities.

Emergency Management

In an emergency, particularly a civil defence emergency, we will

continue to deliver services as long as it is safe and practical

to continue to do so. Sewerage issues will receive priority in

the event of a civil emergency and every effort will be made to

effectively and safely dispose of sewerage to minimise health

risks.

Financial Summary

A financial summary for this group of activities is shown at the

end of the Sewerage activity.

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Activity 1: Sewerage

Overview

The Sewerage activity includes the various functions of the

seven sewerage schemes in the District.

Current Situation

The district operates 7 separate sewerage schemes, serving all

but 4 urban localities. All use oxidation ponds for treatment of

sewage and 14 pump stations are operated within the pipework.

Table 1, sets out the number of connections each sewerage

scheme services.

1. The current situation for each of the sewerage schemes

is outlined below:

2. Amberley: Reticulation was installed between 1974

and 1977 with a staged multi-pond treatment and land

disposal onto pasture (free draining sandy soil) adjacent

to the coast.

3. Cheviot: Reticulation and aeration tank was installed in

1964, upgraded to single oxidation pond plus borderdyke

disposal in 1982 and further improved in 1999/00

to a multi-pond facility with spray irrigation to pasture

and overland flow polishing prior to discharge to

adjacent waterway when the irrigation area is saturated.

4. Greta Valley: Reticulation and treatment/disposal

facility was installed in 1979 for a Council funded

subdivision with one pond treatment and disposal to

land (travelling irrigator) or to nearby waterway when

the soil conditions are too wet for irrigating.

5. Motunau Beach: Reticulation, treatment and disposal

area was installed in 1987 in response to meet

community and public health expectations, using a dual

pond for treatment (with aeration) and land based

discharge onto pasture (private title) with border dyke

application.

6. Hanmer Springs: Reticulation was installed 1971 with

dual pond treatment and discharge to the Chatterton

River, replacing the older reticulation and settling tank

(installed in 1949 in the hospital property) which was

not meeting local expectations. A further upgrade

including additional ponds and aerators was completed

in 2007/08.

7. Hawarden: Reticulation and treatment/disposal facility

was installed in 1966 with twin ponds and overflow to

an open drain.

8. Waikari: Reticulation and treatment/disposal facility

was installed in 1967 with twin ponds and overflow to

the Waikari River with discharge altered to land disposal

via spray in 1996 on an adjacent farmland. It has been

further upgraded in 2005 with an additional pond and

an increased effluent disposal area.

Recently, we investigated the feasibility of two new sewerage

schemes for Culverden and Waipara. Public feedback on the

results, and particularly the cost of the building the schemes was

not favourable. There clearly is the sentiment “don’t fix what’s

not broken”,therefore, reticulated schemes for Culverden and

Waipara are not planned at this stage. Should there be any

changes in legislation or adverse effects to groundwater are

noted (in terms of effluent contamination), then this democratic

approach will be revisited for alternative consideration.

The levels of service for our sewerage schemes can be found

in the appendices section of this plan. These levels of service

are monitored internally and will not be reported in the Annual

Report.

Table 1: Sewerage Connections

Scheme

Active

Connections

Undeveloped

Sites (half

connections)

Pan Connection

Equivalents

(includes multiple

pans)

Amberley 1,042 106 1,350

Leithfield 172 25 203

Cheviot 208 8 328

Greta Valley 28 12 59

Motunau Beach 119 18 137

Hanmer Springs

1114 293 1,923

Hawarden 120 11 169

Plans for the future

New pipelines in Amberley are to be built. Plant renewals will

be undertaken as identified in our Activity Management Plan

for wastewater.

We have an ‘Assessment of Water and Sanitary Services”. This

assessment will be reviewed from time to time during the life

of this plan and is due for its next review in the 2013/14 year.

Works associated with current resource consent requirements

for Hanmer Springs and Cheviot wastewater treatment plants

requires us to look towards disposal to land as alternative

adopted approaches to disposal to waterways (by 2014/15).

Hanmer Springs wastewater treatment plant ponds exhibited

seasonally low dissolved oxygen (DO) levels, which could result

in odour problems to nearby residential properties (dependent

upon the prevailing wind at the time). Aerator upgrades will be

required to eliminate this potential problem and ensure that

council remains within the tolerated minimum acceptable values

for DO.

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Hurunui Community Long Term Plan 2012 - 2022

Operational Costs:

Funding

• Operation and loan repayments are funded by way of a

wastewater Uniform Annual Charge:

• on each connection

• for connected commercial properties a charge of

1 for the first pan

• ½ charges on the second pan

• ¼ charges on the third and subsequent pans

• Serviceable properties within the urban sewerage

scheme will be charged ½ the Uniform Annual Charge.

Council may allow capital contributions to be made at

its discretion in place of a loan Uniform Annual Charge.

Capital Costs:

• Significant Council capital expenditure are funded by a

loan as per the Council’s Internal Financing Policy

• If loans are not raised, then it will be from targeted

rates

Council may loan/fund sewerage main extensions with

the loan repayments met by those properties directly

benefiting where the majority of the property owners

agree to the extension

• If any of the Capital Expenditure caters for future

growth of the scheme, then that portion of the

expenditure that relates to growth may be funded

from future users via Development Contributions and

Financial Contributions

• Landowners with new connections will pay the cost of

connecting to the nearest main plus, if a new subdivide,

putting in the sub-main

• Property owners wanting new connections will pay

those costs necessary for the connection and any levies

as specified in the Development Contributions policy

Council should pay any costs of scheme requirements

that are over and above those necessary for the

connection and the direct costs

Council Owned Assets

Sewerage schemes in:

• Amberley

• Cheviot

• Greta Valley

• Motunau Beach

• Hanmer Springs

• Hawarden

• Waikari

Table 2 shows the sewerage network valuations as at 30 June 2011 which

includes all pipe, point and plant assets.

Table 2: Sewerage Network Valuations

Network Replacement Cost Depreciation Values

Amberley $7,505,640.48 $4,689,448.33

Cheviot $1,593,516.79 $644,791.07

Greta Valley $465,836.98 $226,644.78

Hanmer Springs $7,979,250.47 $5,633,596.60

Hawarden $868,863.41 $295,961.48

Motunau Beach $869,115.26 $517,905.72

Waikari $1,755,490.76 $737,717.77

Maintenance and Operating Implications

We intend to retain ownership of all wastewater assets on

behalf of the communities they serve. Asset management, basic

design work, contract documentation, tendering, record keeping,

operation and routine repairs and maintenance is to be carried

out by our staff.

Larger budget capital works may be let as contracts. Decisions

affecting wastewater networks will be made in consultation

with ward committees and Residents Associations.

Larger repairs and emergency works may also be contracted to

preferred or available contractors. Preference will be given to

locally based contractors for these activities where their prices

are competitive. External consultants will be engaged only for

specialised tasks, where we do not have the skills, or another

opinion is required.

Assumptions and Risks

Effort is on-going to establish the useful lifespan of underground

and fixed wastewater assets. Most of the reticulation is AC pipe

and is affected by both sewage and soil conditions. Much of

the newer reticulation is PVC. Expected life for manholes and

PVC is 80 years and AC, 50 years. External stresses determine

useful life of assets, being soil conditions, quality of installation,

additional loadings, and maintenance. The inability to pin-point

these means approximate values are applied. The inherent

variations in-situ makes it difficult to accurately formulate

renewals priority programme, but will be refined as additional

information is obtained.

All wastewater networks operate under current resource

consents for all emissions and discharges. These conditions are

generally agreed between us and Canterbury Regional Council.

Most of the consent terms will not expire until 2018 – 2030.

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Goals and Performance Measures

Community Outcomes

1. A desirable and safe place to live

2. A place that demonstrates environmental responsibility

3. A place with essential infrastructure

Goals

Protect public health through

ensuring good sanitary

standards

How we will achieve our

Goals

Maintain sewerage disposal

and treatment facilities in

most urban areas

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

All major and significant

non-compliances for our

sewerage disposal resource

consents reduce until we

have 0% non-compliance

All sewer breaks are

repaired within 12 hours of

notification

We have 14 resource

consents relating to

wastewater, which have 186

conditions to comply with.

We had 2.2% major and

significant non-compliance to

date this year*

No major breaks occurred

and minor breaks were

repaired within 12 hours of

receiving the notification

2% 1% 0% 0%

√ √ √ √

* The non-compliance issues have related to matters such as late reports and failure to complete log books. These were initially minor

noncompliance matters but accelerated to major and significant non-compliance as they were not remedied within the allotted timeframes

set by the Regional Council.

Financial Summary

A financial summary for this activity is shown on the next page.

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Hurunui Community Long Term Plan 2012 - 2022

Sewerage - Group Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

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

Other Income 317 320 330 340 351 362 373 383 395 409 422

Internal Interest Received 5,504 2,158 322 634 788 1,317 0 0 0 0 0

Development Contributions 175,529 70,086 72,788 75,187 77,757 104,721 108,678 113,076 117,927 123,282 109,270

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

Operating Expenditure

Employee Benefits 50,270 52,454 54,096 55,743 57,511 59,404 61,093 62,819 64,807 66,989 69,182

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

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

Council Overheads Expenditure 126,363 134,154 138,419 143,502 146,961 151,478 155,588 159,770 165,414 169,566 174,678

Depreciation 320,000 366,060 373,326 368,475 408,244 415,129 411,244 456,681 449,510 441,295 491,252

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

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

Capital Statement

Capital Expenditure

District Wide Sewer 96,602 32,713 33,996 35,127 36,335 50,835 52,770 54,908 57,250 59,865 49,835

Amberley Sewer 0 486,240 10,780 174,898 20,948 12,384 243,678 7,961 0 0 0

Cheviot Sewer 10,000 40,046 0 10,994 77,749 0 0 36,498 0 0 0

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

Motunau Beach Sewer 0 35,000 0 0 12,218 12,658 119,450 0 0 0 0

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

Hawarden Sewer 8,000 0 0 4,939 0 141,536 0 0 0 0 0

Waikari Sewer 0 71,000 0 0 7,775 0 34,641 7,457 0 0 0

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

Funds Required

Operating Deficit 154,135 393,897 418,166 359,922 433,000 341,172 253,864 200,516 59,553 0 0

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

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

469,126 1,313,656 568,993 1,919,503 601,358 652,104 876,117 584,634 522,311 654,274 822,742

Funded by

Operating Surplus 0 0 0 0 0 0 0 0 0 130,078 264,647

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

Transfer from Special Funds 0 28,597 44,893 0 24,761 0 0 0 0 0 0

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

469,126 1,313,656 568,993 1,919,503 601,358 652,104 876,117 584,634 522,311 654,274 822,742

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Roads and Footpaths

Overview

Roads and Footpaths covers the following activity described

below:

Activity 1: Roads (roads, bridges, footpaths, street lighting, and

road safety)

Our Aim

To provide a transport network that is safe and accessible for all

people throughout the District.

Why is the Council Involved?

We undertake the professional and technical work involved in

providing the on-going management of the District’s roading

network. Partial funding for road construction projects and

on-going maintenance requirements is received from the New

Zealand Transport Agency (NZTA). Public ownership of the

roads and footpaths ensures appropriate property access and

unimpeded rite of passage for the freedom of travel throughout

the area.

Community Outcomes

The Roads and Footpaths activity described in this section,

primarily contributes to two of our community outcomes:

1. A desirable and safe place to live:

• We have attractive well designed townships

• Communities have access to adequate health and

emergency services and systems and resources are

available to meet civil defence emergencies

• Risks to public health are identified and appropriately

managed

Major Projects Planned

Project

Bridge maintenance

and repairs

Sealed Road

resurfacing

Minor improvement

programme

Pavement

rehabilitation

programme

Traffic services

renewals - street

lighting

Year Planned

2012/13 2013/14 2014/15 2015+

$269,106 $279,900 $285,858 $299,435

$1,000,371 $1,040,519 $1,062,647 $1,113,118

$270,999 $281,874 $287,869 $301,541

$580,215 $603,501 $616,336 $645,608

$207,703 $216,039 $220,633 $231,112

Significant Negative Effects

Hurunui’s land transport network affords people a high degree

of mobility, but this, and other economic and social benefits, has

some significant environmental costs. High volumes of traffic

produce noise, air, and light pollution. Dust from unsealed roads

causes a nuisance on neighbouring properties and impacts on

road safety due to decreased visibility. At present our transport

infrastructure needs outweigh the negative effects on our

environmental wellbeing and are sustainable at least for the

period of this plan. Alternatives for the future will need to be

sought if this balance shifts.

Emergency Management

In an emergency, particularly a civil defence emergency, we will

continue to deliver services as long as it is safe and practical to

continue to do so. The roading network will receive priority in

the event of a civil emergency and every effort will be made to

make the roads clear and safe to drive on.

Financial Summary

A financial summary for this group of activities is shown at the

end of the Roads and Footpaths activity.

2. A place with essential infrastructure:

• We have a strong emphasis on service delivery across

all infrastructure including roading, water (for drinking

and development), waste water, stormwater and solid

waste

Princes Street, Waikari - Road & Community Improvement Programme

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Activity 1: Roads and Footpaths

Overview

The Roads and Footpaths activity includes the various functions

of street lighting, bridges and road safety, as well as roads and

footpaths.

Hurunui Community Long Term Plan 2012 - 2022

We are an active member of the ‘Hurunui District Road Safety

Coordinating Committee’. The committee has a Road Safety

Strategy which provides a framework for a road safety policy

and initiatives in our district, together with practical, long term

community solutions.

Current Situation

The Roading Network activity deals with the day-to-day

operations, maintenance and improvements of road pavement

(renewals, improvements and upgrades), signs, street lighting,

parking, cleaning, bridge maintenance, corridor management,

overweight and oversize permits, licenses to occupy and

various road safety activities. These initiatives are supported

through policy development and forward planning, including

linking in with transport and land use planning and road safety

coordination.

Our roads are maintained and built using subsidy funds from

New Zealand Transport Agency (NZTA) and moneys collected

through local rates. This excludes state highways which are

funded and maintained solely through NZTA. Three years ago,

central government deliberately cut maintenance funding to

all district councils, as it decided to focus on capital works to

national state highways (Roads of National Significance) and the

Auckland roading network needs as priorities. Our funding was

cut by $600,000 per annum on average, for the full funding cycle

2009/2012.

Our Asset Management Plan (AMP) for roading is an important

plan when it comes to planning and deciding on upgrades,

maintenance and new work. An ongoing challenge is to match

the level of service provided by the roading asset with the

expectations of our community.

The district’s roading network comprises of approximately

1455 kilometres of local roads (excluding state highways), 278

bridges, 94,204 square metres of footpaths, 60kilometres of

kerb and channeling, 886 streetlights, 4622 traffic signs and 43

kilometres of culvert pipes. Each road in the roading network

has been categorized into a roading hierarchy (in the District

Plan) based on the road’s purpose and level of use. Of the 1455

km local roads, 1380 kilometres are rural and 75 kilometres are

urban. 602 kilometres of the road network is sealed, with 853

kilometres remaining unsealed to date.

Current desirable levels of service have been defined against

urban and rural road hierarchy categories. These are 6

carriageway service indicators (Quality, Safety, Environment,

Efficiency, Comfort/Convenience and capacity and 5 associated

roading asset service indicators (kerb and channel; bridges;

street lighting; road marking; and signs). The road hierarchy

established is designed to meet the expected levels of service

(as per the AMP), although incomplete inventory data for some

assets limits a full assessment. The levels of service defined in

the AMP inform the performance measures set out in this plan.

Plans for the future

The roading network uses a significant share of our annual

expenditure (almost 25%), and it is planned that this will continue

on a long term basis. Whereas the AMP provides important

information for the work programme, we also routinely monitor,

audit and assess, using traffic counts on a rotational basis to

collect data about trends. Hurunui is a large district with a small

population (rating base), therefore it is crucial that priority is

given to roads and bridges that serve important functions, such

as road safety, and have high traffic use.

NZTA have released indicative allocation budget figures for

road maintenance through 2012-2015, which are 5% less than

our original Regional Land Transport Programme submission

requests. Although these budget amounts are 3.4% more than

the 2009-2012 budget allocations, they equate to $226,000

less per annum across the three year programme. Coming to

grips with a total $1.6 million reduced budget is going to be

major challenge to both assets and operations alike. Our Asset

Management Plans (AMPs) tell us when, how and why we need

to do work on each of our roads to ensure maximum wholeof-life

for this asset (maximum return on investment approach);

but we do not have the required subsidised income to maintain

our roading network to the level our AMPs stipulate. We

will continue to retain our funding as previously indicated as

unsubsidised work and the rate impact for roading will continue

as previously stated in the plan. We have made the assumption

that the reduced level of NZTA funding will continue through

the life of the LTP.

We have done our best to get greater efficiencies within our

current road maintenance contracts, without affecting the

current levels of service (LoS). At the end of this period, our

maintenance contracts will be renewed with cost escalations

included. NZTA have declared that they will not pick up contract

price escalations through their road maintenance subsidy

scheme. This implies that the ratepayer will have to cover this

shortfall otherwise less and less will be physically spent on

maintenance outputs resulting in loss of road asset life and

potentially putting road’s lives at risk driving on a compromised

infrastructure. Thus, NZTA and Central Government are

imposing more and more responsibility upon the local ratepayer

to fund their roading infrastructure’s needs, unless the Minister

of Transport is lobbied by all affected stakeholders to reverse

this tactic and strategy.

The financial savings effected through the last road maintenance

tender round will sustain the infrastructure for the following

year (2012-2013), but after that, we will have to seriously

consider what elements of the planned works will have to be

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deferred to divert these funds back to essential maintenance

works.

So far, we have done much better than the national averages in all

areas of our road performance assessment measures (roughness,

smoothness and road integrity). We expect to remain above

national average in these areas throughout the ten year period

covered by this plan, given that all Road Controlling Authorities

have been affected financially and more importantly, that we are

not watching and waiting, but rather taking proactive steps to

mitigate loss of asset life through rational and judicious decision

making. We will continue to monitor our key performance

indicators for road condition to establish if there is any loss

of predicted asset life and the extent of any decline in levels

of service. Over a long period of time, if our funding continues

to be significantly less that our AMPs indicate, levels of service

will gradually decrease. Increasing rates for roads in the future

may be the only way to maintain current levels of service, or we

could accept that a reduced level of service is necessary and

decide what that will be.

This is a problem we are not facing alone. Nationally, there are

investigations into how we establish the point of critical failure

for our roads so that we are able to proactively intervene. At

this stage, we do not have the answers, but expect that this will

continue to be a key issue when we review our long term plan

again in three years. By then, with continued monitoring and

exploring the how we can continue to do more for less, as well

as on-going national discussion on this topic, we will have more

information and options for consideration going forward.

We have been undertaking only minor seal extensions over

the past few years. The last major work was carried out on

Woodbank Road, completed in 2010. We plan to take advantage

of any external funds available or funding opportunities through

the Road Seal Extensions Policy to reduce the length of unsealed

roads in the district. Other processes for dust suppression

will continue to be investigated. Bridge maintenance and

replacements are also a priority focus during the next several

years.

Many timber bridges built after World War II are now nearly

at the end of their economic lives, and will have to be replaced

during the life of this plan. We have been working through a

bridge replacement plan according to the priorities established

after we contracted OPUS to investigate the state of our

bridges in 2009. To date priority bridges which include Lyndon

No.3 Bridge (Lyndon Road), MacFarlanes Bridge (Conway Flat

Road), Humpback Bridge (Gore Bay Road), Williams Bridge

(Glenmark Drive), Coops Bridge (Parkview Road), Gola Peaks

Bridge (Virginia Road), Charwell No. 1 Bridge (Stag and Spey

Road), Thompsons Bridge (Glenmark Drive) and Jamiesons

Bridge (Megowans Road) have been completed.

Bridges targeted for the 2012/2015 period include Broxton

Bridge (Broxton Road), Mandamus Bridge (Tekoa Road), Lower

Hurunui Swing Bridge (Blythe Road), Okuku Pass Bridge

(Okuku Pass Road), Uphams Bridge (Conway Flat Road), Mid

Waipara Bridge (Greys Road), Blythe No.1 Culvert (Blythe

Road), Crossleys Bridge (Leader Road East), Brophys Bridge

(Brophys Road), Armco Culvert (Ngaroma Road), Jacks Creek

(Lake Sumner Road). Because of the significant costs associated

with bridge maintenance and improvements, it may be a better

solution to replace bridges with fords instead, subject to location

and traffic counts. This will only be considered where there is

low traffic volume and few people affected (sometimes there

is only one household). Consultation with relevant people and

sectors of the community will be done before any decisions

such as this are made. A budget provision has been made for

the bridge repairs.

We have been working through a programme of installing School

Active Warning Signs where schools are positioned on busy

roads. Warning signs have been installed for Amberley, Cheviot,

Amuri, Leithfield, Rotherham, Broomfield, Waiau, Waikari

and Greta Valley Schools. Further signs are programmed for

Hurunui College, Hanmer Springs, Waipara and Omihi during

2012/2015, at an approximately cost of $7,500 per sign.

Roading challenges coming up include:

• Binding up of metal material to unsealed roads so that they

are sustainable and durable

• Blending of metals to improve structural strength and

enhanced mosaic aggregate interlocking

• Improved open drains for land drainage requirements

• Deciding on effective sealed road widths for improved traffic

conveyance, and ways to reduce maintenance expenditure

Funding Model

Roads

Operational Costs:

Council’s contribution is 100% District Rate for operations,

roads and bridges known as the ‘Roading Rate’

Capital Costs:

• Capital improvements above $100,000 may be funded

by reserves or loans pursuant to the Council’s Internal

Financing Policy

• Other Capital Expenditure to be funded as operational

• If a community wants new sealing work done that does not

qualify for a government subsidy, the Road Seal Extension

policy allows for ratepayers to meet 50% of the costs,

with the Council contributing the remaining 50% from the

General Rate

• If any of the Capital Expenditure caters for future growth,

then that portion of the expenditure that relates to growth

may be funded from future users via Financial Contributions

Footpaths

Operational Costs:

• Township maintenance 100% local amenity rate on ward or

community rating area

Capital Costs:

• Township maintenance 100% local amenity rate on ward or

community rating area

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Hurunui Community Long Term Plan 2012 - 2022

Maintenance and Operating

The New Zealand Transport Agency (NZTA) subsidizes up to

60% (confirmed by NZTA as fixed for Hurunui from July 2012

to June 2015) of improvement projects such as seal extensions

and minor improvement works that meet its funding criteria

and requirements. A 50% financial assistance rate (FAR) is

confirmed for ongoing maintenance requirements to ensure

whole-of-life objectives of the asset are competently met.

As a national core driver from central government, all road

controlling authorities are being tasked to manage their roading

assets with less and less subsidy funding. This means every

authority must revisit the way they have done business in the

past and look hard at improving output efficiencies, productivity,

effectiveness of asset management decisions and resultant works

programmes, value-for-money and best for asset outcomes. The

reality is that councils are tasked to do “more (outputs) with

less (money)” and ensure that the assets meet their fit-forpurpose

objectives, whilst being affordable and pragmatic. This

strategic approach, across the country (applicable to both local

and national highways), has resulted in essential works (need

to have) being completed, with less latitude for lavish (nice to

have) outcomes. We are concerned about this reduced funding

approach on a continued long-term basis, given that this has the

latitude to erode the asset life of the infrastructure, resulting

in expensive renewal works that could have been mitigated

by prompt and timeously co-ordinated maintenance works,

given the right level of subsidy funding. This situation is being

meticulously monitored through asset condition ratings, visual

inspections and customer service requests to ensure that the

asset continues to meet the levels of service demanded by the

ratepayers of this district for transportation requirements.

Consideration is required on the ongoing ownership and

management of very low trafficked roads and bridges currently

justified on a community and social basis. In consultation with

the Police and NZTA, we maintain and annually review a road

safety strategy for the district, which is then implemented

through an action plan.

Assumptions and Risks

Increases in population, vehicle ownership, industrial growth and

development in both the primary and value-added sectors, as

well as the popularity of our district as a tourist destination, all

have an impact on the use of our roads and footpaths.

Increasing traffic volumes are most significantly expected

to impact on the district’s arterial road network and aging

bridge structures. Project costs are based on current best

practice, industry standards and local knowledge of materials,

construction costs and geotechnical profiling.

Strategic planning, scoping of works, initial investigations,

preliminary designs, cost estimates and forward work plans for

the roading network have been based on the assumption that

Council will qualify for subsidy funding from NZTA for certain

road-related capital, improvement and maintenance projects.

Inflation has not been allowed for in NZTA’s funding assistance

into the future and councils have been tasked to manage the

cost impact. If we maintain the current rates take for road

maintenance and not provide for the effects of escalation, then

less money will be spent on physical maintenance works thus

leaving the road asset at critical risk of failure and loss of asset

life. Compound this with the effects of Peak Oil (and the resultant

bitumen cost increases) and drainage and environmental

impacts, then the situation becomes more bleak. We either put

up our annual rates to provide more local unsubsidised funds to

keep our roads in their current condition, or we can accept that

there will be a deterioration in our road conditions (structural,

appearance and driving quality) from 2013/2014 onwards.

The level of cost that has been allowed for in the Long Term

Plan falls significantly short of what was provided for in the

Asset Management Plan (AMP) which was developed prior to

the change in NZTA funding. The difference over the next ten

years between what was scheduled in the AMP and what NZTA

have provided, less than what was requested in the Regional

Land Transport Programme (RLTP), the shortfall is now closer

to $18 million, which would need to be covered by rates.

Our asset register was been prepared based on the best available

asset management information. Some work still needs to be done

to ascertain the exact relevant details of all of the roading assets,

and to be able to accurately ascertain their current condition,

current serviceability and future useful life, and from there to

accurately predict the future needs and requirements to ensure

continued sustainability and safe condition. Valuations shown for

each network asset type are as at 2012 and are prepared using

our historical cost estimates and current contract prices. These

are approximate replacement values and may not reflect market

values.

We have a comprehensive Risk Management Strategy for the

roading assets which identifies risks such as land use change,

seasonal impacts on roading requirements, fluctuating oil prices

and quality supply and the effect to the bitumen and petroleum

industry, peak oil, climate change, demand for recreational

facilities with associated access interlinks, the demand for cycling

as alternative transportation mode and geographic issues and

inherent fault lines. The risk management strategy includes ways

to mitigate these factors.

Shared Services

We have a shared maintenance agreement with Waimakariri

District Council for Sicon (their maintenance contractor) to

undertake the maintenance of Okuku Pass Road and Balcairn/

Amberley Road, which is a shared road with both Districts.

The costs are shared between both Councils.

We also have a shared service contract with Mainpower for

street lighting for economy of scale efficiencies, and another

one for network assessments with BECA.

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Community Outcomes

1. A desirable and safe place to live

2. A place with essential infrastructure

Goals and Performance Measures

Goals

How we will achieve our

Goals

Maintain the Contract out road

district’s roads to a

maintenance and

monitor performance

standard appropriate accordingly

to their use

Ensure that all

bridges are safe and

well maintained

Undertake a residents

satisfaction survey

Contract out bridge

maintenance and

monitor performance

accordingly

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

Hurunui roads will compare

favourably with the national rural

road averages using the measures

shown below:

The smoothness of our roads

The roughness of our roads

The strength of our roads

Residents consider the overall

standard of road maintenance

to be satisfactory (more than

70%)

Replace priority bridge

structures according to

the bridge replacement

programme

Overall, our roads compared better than the

national average as shown below:

Overall, our roads compare better than the

national average as shown below:

Smooth travel exposure – Hurunui’s roading

network is 97%. The national average is 86%

(a higher value is better)

Overall, our roads compare better than the

national average as shown below:

Percentage rough roads in the Hurunui is

4.2%. The national average is 9.1% (a lower

value is better)

Overall, our roads compare better than the

national average as shown below:

The strength of our roads is measured by a

pavement Integrety Index (PII). The PII for

the Hurunui is 96.6% The national average is

93.7% (a higher value is better)

Resident satisfaction levels have improved

since 2007. In 2011 they were 73% satisfied

Bridge repairs have commenced after a

bridge structural component replacement

programme was identified

√ √ √ √

√ √ √ √

√ √ √ √



√ √ √ √

Financial Summary

A financial summary for this activity is shown on the next page.

Happy Valley Road, Emergency Preventative Maintenance

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Roading and Footpaths - Group Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

District 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

Targeted Rates 0 181,043 182,746 183,293 189,419 196,059 215,275 217,578 220,162 224,947 235,288

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

Internal Interest Received 730,877 0 0 0 0 0 0 0 0 0 0

Development Contributions 452,926 152,662 158,646 163,928 169,561 237,230 246,260 256,238 267,165 279,370 232,563

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

Operating Expenditure

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

Internal Interest Paid 2,779 2,162 1,953 1,729 1,489 1,231 955 659 341 0 0

Council Overheads Expenditure 621,618 597,985 617,912 638,714 659,260 682,123 702,541 723,397 748,335 773,703 800,141

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

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

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

Capital Statement

Capital Expenditure

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

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

Unsubsidised Roading 26,526 25,000 25,980 26,845 27,768 28,768 29,863 31,073 32,398 33,878 35,435

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

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

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

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

Hurunui 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

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

Funds Required

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

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

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

Hurunui Community Long Term Plan 2012 - 2022

Funded by

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

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

Capital Expenditure funded through Internal Loans 219,308 0 0 0 0 0 0 0 0 0 0

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

C:\Users\jab\Desktop\Fuck Up with Subsidised Roading\Hurunui District Council LTP Budgets 2012-2022 - Post Submissions - with Option 2 for Subsidised Roading.xls 27/06/2012 2:31 p.m.

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Stormwater and Drainage

Overview

Stormwater and Drainage covers the following activity described

below:

Activity 1:

Our Aim

Stormwater and Drainage

To prevent or minimise adverse effects of surface flooding and

stormwater discharge.

Why is the Council Involved?

Both our Council and the Canterbury Regional Council

(Environment Canterbury) have joint responsibilities regarding

the management of stormwater drainage, flood control and

stormwater quality in our district. We provide drainage services

where a community has requested our involvement or where

it is efficient to be involved. This includes managing drainage

in localised areas to protect them from the effects of surface

flooding. Stormwater is rain that has run off hard surfaces such

as roofs, roads and car parks. Our aim is to protect human

and ecological values by preventing or reducing the effects

of stormwater on the human and aquatic environment. We

monitor stormwater systems to ultimately minimise flooding

and damage to property or the environment.

Community Outcomes

The Water Supply activity described in this section, primarily

contributes to two of our community outcomes:

1. A desirable and safe place to live:

• We have attractive well designed townships

• Communities have access to adequate health and

emergency services and systems and resources

are available to meet civil defence emergencies

Major Projects Planned

Project

Construct new drains for

Eastern Drain and Dry

Gully, Amberley, direct to

the lagoons

Capital works on existing

infrastructure

Year Planned

2012/13 2013/14 2014/15

$294,000 $69,042

Significant Negative Effects

$62,352

There is potential for significant negative impacts on

environmental and cultural wellbeing due to this activity, but

this is offset by ensuring that the disposal of stormwater is done

in a manner that minimises contaminants and eases peak flows.

Drainage systems may not always cope with changes in volumes

of rainfall, with subsequent negative effects of flooding on roads

and properties. This may cause additional social problems in

living quality, public health and access to and safety of transport

systems. However, such problems are mitigated to some extent

by the provision of stormwater systems to cope with flooding.

Drain clearances can have adverse effects on biodiversity,

ecosystems and water quality, but such clearances are obviously

necessary, and the negative effects that they have are short lived,

with no implications for sustainability.

Emergency Management

In an emergency, particularly a civil defence emergency, we will

continue to deliver services as long as it is safe and practical

to continue to do so. Stormwater and drainage will receive

priority in the event of emergencies involving flooding.

Financial Summary

A financial summary for this group of activities is shown at the

end of the Stormwater and Drainage activity.

• Risks to public health are identified and

appropriately managed

2. A place with essential infrastructure:

• We have a strong emphasis on service delivery

across all infrastructure including roading, water

(for drinking and development), waste water,

stormwater and solid waste

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Activity 1: Stormwater and Drainage

Overview

The Stormwater and Drainage activity includes the various

functions of land drainage schemes and flood protection.

Current Situation

We maintain four small land drainage schemes set up by the

former North Canterbury Catchment Board. They are the

Ashworths drains, Leithfield Outfall drain, Newcombes Road

drains and the Jed River areas.

We have only a very small quantity of stormwater pipes in

our townships, as most stormwater is disposed of to kerb and

channelling and open drains. There are approximately 100 metres

of stormwater pipe in Hanmer Springs and approximately 560

metres of pipe in Amberley. Much of the District’s stormwater

disposal systems comprise infrastructure that is maintained by

private individual property owners, such as on-site soakage

disposal, open drains/creeks, piped networks outfalls, silt traps,

and detention structures.

After two significant rainfall events in and around Amberley in

2008, we engaged a specialist consultant to review the adequacy

of our stormwater systems. The recommendations were to

carry out some major capital works to reduce the impact of

surface flooding on both Amberley Township and Amberley

Beach. The works were to include diversion drains to “behead”

the surface flows from north of Amberley to discharge them to

natural waterways outside the urban area, and realignment of

drains discharging to the lagoons north and south of Amberley

Beach.

Because of the time taken to obtain resource consents,

exacerbated by the Canterbury earthquakes and appeals lodged

against the consents granted after a lengthy hearing, only two

major physical works have been completed. These were the

flood diversion from Dock Creek along Lawcocks Road, and a

piped outfall of the Leithfiled Outfall Drain to the sea.

However with consents now finalised for three more significant

capital projects, work is expected to be completed for flood

diversion works in the Amberley swamp area (to include an

outlet culvert under Stanton Rd) and from Dry Gully across to

Mimimoto lagoon before the end of the 2011/12 year.

Plans for the future

Hurunui Community Long Term Plan 2012 - 2022

2016/17 budget for unspecified improvements. All funding is

from a special rate struck over the entire Amberley Ward.

A global consent for discharge of stormwater from the Amberley

Urban area was heard in 2011, along with the other 15 consents

for flood mitigation works described above. This was put on

hold pending as there was not enough information and a new

application will be made in the 2012/13 year.

AECOM Consultants will finalise an application in the 2012/13

year for a global consent for management of stormwater

from future residential developments in Hanmer Springs. In

anticipation of the stormwater management plan identifying some

minor capital works being required on existing infrastructure, an

allowance of $62,000 has been made in the 2013/14 year and

a further $69,000 in the 2016/17 year. As in Amberley this will

be funded by a separate rate over all properties in the Hanmer

Springs Ward.

We are proposing a new stormwater engineer to be appointed

in 2013/2014 to manage this area of our work. This engineer

will be responsible for developing district-wide stormwater

catchment and management plans, and undertake the range of

tasks required to ensure we have effective stormwater systems

in place, inclusive of appropriate maintenance regimes.

We will progressively move towards managing all of its urban

stormwater responsibilities in a more holistic, integrated and

life cycle way.

Funding

Operational Costs:

• 100% Targeted Rate based on the area benefiting

• Engineer for stormwater catchment and management

plans funded through the General Rate

Capital Costs:

• Significant Council capital expenditure is funded by a

loan as per the Council’s Internal Financing Policy

• If loans are not raised, then it will be from targeted

rates

A flood flow diversion from Eastern Drain across to the

Amberely North lagoon is proposed for the 2012/13 year to

complete the flood mitigation works covered by the 15 consents

mentioned above.

Detailed design and land ownership issues still have to be finalised,

but a preliminary estimate of $298,000 has been allowed for in

the 2012/13 budget for this work and a further $84,000 in the

• If any of the Capital Expenditure caters for future

growth of the scheme, then that portion of the

expenditure that relates to growth may be funded

from future users via Development Contributions and

Financial Contributions

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Council Owned Assets

Land drainage schemes:

• Ashworths drains

• Leithfield Outfall drain

• Newcombes Road drains

• Jed River drains

Maintenance and Operating Implications

We plan to continue to maintain the 4 drainage systems as well

as other drainage channels created as part of the improvement

works described above. Annual maintenance has been limited to

occasional drain clearing. Contractors will be engaged to carry

out regular work to maintain the system as and when needed.

Assumptions and Risks

It is assumed that both global consent applications (Amberley

and Hanmer Springs) will be approved and that land-owner

approvals will be given to allow the flood mitigation construction

works to proceed.

Community Outcomes

1. A desirable and safe place to live

2. A place with essential infrastructure

Goals and Performance Measures

Goals

Minimise the risk of

flooding

How we will achieve our

Goals

Maintain all drainage

systems in accordance with

resource consent conditions

Employ an engineer to

manage the stormwater and

drainage portfolio

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

All major and significant

non-compliances for our

stormwater resource

consents reduce until we

have 0% non-compliance

District wide stormwater

catchment and management

plans have been put

in place

We have 30 resource

consents relating to

stormwater, which have 363

conditions to comply with.

We have had 0% major and

significant non-compliance so

far this year.

We have a stormwater plan

for the Amberley area but

not for the other areas in the

district

2% 1% 0% 0%


Financial Summary

A financial summary for this activity is shown on the next page.

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Stormwater and Drainage - Group Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

District Wide Rates 0 0 103,130 106,270 109,640 113,250 116,470 119,760 123,550 127,710 131,890

Targeted Rates 217,829 279,042 286,471 280,990 277,894 286,212 279,536 275,397 271,368 267,418 276,708

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

Development Contributions 39,360 17,032 17,791 18,303 19,005 27,007 27,975 28,999 30,223 31,703 25,894

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

Operating Expenditure

Employee Benefits 0 0 103,130 106,270 109,640 113,250 116,470 119,760 123,550 127,710 131,890

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

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

Council Overheads Expenditure 10,744 12,850 13,255 14,474 14,082 14,530 14,933 15,345 16,759 16,324 16,837

Depreciation 17,241 45,752 48,800 48,970 53,917 53,255 54,480 59,721 58,988 58,264 65,288

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

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

Capital Statement

Capital Expenditure

Amberley Stormwater 0 294,000 0 0 0 84,001 0 0 0 0 0

Hanmer Springs Stormwater 0 0 62,352 0 0 69,042 0 0 0 0 85,044

Total Capital Expenditure 0 294,000 62,352 0 0 153,043 0 0 0 0 85,044

Funds Required

Capital Expenditure 0 294,000 62,352 0 0 153,043 0 0 0 0 85,044

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

91,497 412,932 201,258 151,411 167,058 288,029 191,841 165,319 208,376 219,076 245,284

Funded by

Operating Surplus 74,256 73,180 90,106 102,441 113,141 81,730 137,361 105,598 149,388 160,812 94,952

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

Capital Expenditure funded through Internal Loans 0 294,000 62,352 0 0 153,043 0 0 0 0 85,044

91,497 412,932 201,258 151,411 167,058 288,029 191,841 165,319 208,376 219,076 245,284

Hurunui Community Long Term Plan 2012 - 2022

H:\Long Term Plan Workings\Hurunui District Council LTP Budgets 2012-2022 - Post Submissions.xls 31/05/2012 9:34 a.m.

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Community Services and Facilities

Overview

Community Services and Facilities covers the following 3 activity

areas described below:

Activity 1: Community Services (library, youth programme,

community development and grants and services awards)

Activity 2: Property (housing, public toilets, council offices,

medical centres, halls, swimming pools and township

maintenance)

Activity 3:

Our Aim

Reserves (parks, reserves and cemeteries)

To provide services that will support the community to lead

healthy and fulfilled lives and meet and extend their recreational,

cultural, educational development and information needs.

Major Projects Planned

Project

Year Planned

2012/13 2013/14 2014/15 2015+

Cheviot Community Library

to move into the Service $100,000

Centre

Toilet extension for Council

Chambers, Amberley

$45,000

Hanmer Springs Sports

Stadium upgrade feasibility $30,000 $1,077,379

study

Hanmer Springs Community

Hall extension

$193,284

Purchase land to expand

Balcairn cemetery $124,704

Upgrade or rebuild of the

Cheviot Medical Centre

New public toilets built in

Rotherham

$1,150,700

$103,563

Why is the Council Involved?

Council is involved with the activities within the Community

Services and Facilities group to provide for the social and

cultural wellbeing of its people. All of the activities within this

group are to do with ensuring our communities have the type

of facilities and services reasonably expected to be provided

by the Council and are unlikely to be privately supplied at an

affordable cost. These activities also contribute to the long

term achievement of our community outcomes.

Community Outcomes

The Community Services and Facilities described in this section,

primarily contribute to two of our community outcomes:

1. A desirable and safe place to live:

• We have attractive well designed townships

• Communities have access to adequate health and

emergency services and systems and resources are

available to meet civil defence emergencies

• Risks to public health are identified and appropriately

managed

2. A place where our traditional rural values and heritage

make Hurunui unique:

• People have a range of opportunities to

participate in leisure and culture activities

• Our historic and cultural heritage is protected

for future generations

Significant Negative Effects

Most of the activities in the Community Services and Facilities

section do not pose any significant negative effects. We are

mindful that in the Property area, there are some identified risks,

such as car parks – particularly in Hanmer Springs where the

volume of vehicle and pedestrian traffic is high during holiday

periods. Every effort has been made to minimise the risk of

accidents occurring through the design of the footpaths and car

parks, and signage. Similarly with public toilets, car parks have

been designed to reduce congestion and hazards. Public toilets

are positioned in well-lit areas close to main roads to reduce

incidents of vandalism and undesirable anti-social behaviours.

Pensioner housing is only available in Amberley, Cheviot,

Hanmer Springs and Waikari. This may inadvertently have

social and cultural impacts upon the age demographics in local

communities as the elderly population becomes concentrated

in certain areas only. This may result in higher demands on

some local services and facilities. There has not been a strong

demand for pensioner housing in other areas in the District. If

this changes, we will look at whether we can meet the demand

at the time.

Emergency Management

In an emergency, particularly a civil defence emergency, we will

continue to deliver services as long as it is safe and practical to

continue to do so. Civil defence management plans provide

the Council with guidance and contingencies. However, in an

extreme emergency, most of the services in this group would

not be considered to be essential.

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Hurunui Community Long Term Plan 2012 - 2022

Financial Summary

Community Services and Facilities - Group Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

District Wide Rates 116,287 79,898 134,672 192,722 153,094 108,399 113,923 119,037 126,183 131,124 137,129

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

Other Income 728,501 756,270 700,577 723,575 746,419 770,489 791,958 813,894 839,163 866,900 894,770

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

Development Contributions 317,240 238,682 247,626 255,938 253,498 234,236 242,264 250,106 251,357 263,546 232,096

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

Operating Expenditure

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

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

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

Council 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

Depreciation 350,974 397,951 399,752 460,108 484,813 487,427 517,458 519,239 521,096 542,425 544,456

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

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)

Capital Statement

Capital Expenditure

Community Services 92,654 65,000 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131

Property 46,637 115,500 61,832 229,256 24,991 1,280,154 38,821 26,751 261,124 30,490 31,892

Reserves 115,831 260,146 306,716 152,906 2,344,865 126,745 256,992 155,544 401,011 142,483 156,121

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

Funds Required

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

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

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

Transfer to General Council Reserves 145,013 154,805 143,785 159,691 161,603 150,859 169,146 170,928 172,892 178,004 180,288

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

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

Funded by

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

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

Transfer from General Council Reserves 99,808 83,285 220,033 75,166 77,749 169,335 83,615 87,003 90,713 94,857 99,218

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

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

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

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Activity 1: Community Services

Overview

The Community Services activity includes the Council’s:

• Library Service

Hurunui Youth Programme

Community Development Programme

• Grants and Services Award Schemes

Current Situation

Library

Our library system as we know it was established in 1993.

Libraries are an important educational and recreational resource

for the district, and a public library system ensures that there is

equitable opportunity for people to access the information that

they want and need.

The library service is available throughout the district through

our website and network of libraries. The libraries are well

stocked with a wide range of resources in a variety of formats.

Our library staff and volunteers provide assistance and support

so that everyone can effectively access and use any of the library

materials.

• There are 8 libraries in the District. Four of these share

premises with school libraries (Amuri, Cheviot, Greta

Valley and Hawarden).

• The Hurunui Memorial Library, based in Amberley, is

the administrative centre for the district.

• Branch libraries with paid staff are based at Hanmer

Springs, Amuri, Cheviot and Hawarden.

• There are 3 community libraries at Greta Valley, Waiau

and Leithfield which are run solely by volunteers.

• The Hanmer Springs Library/Service Centre and the

Amuri Library/Service Centre are combined Council

Service Centre/libraries.

• The library provides books to the Omihi School and

Conway community.

Volunteers are active at all libraries and support the library

service with many hours of their time. The “Friends of the

Hurunui District Libraries inc.” was formed in 2002 to support

the library service , who along with other groups of volunteers

contribute to the delivery of library services across the District.

Without the many library volunteers throughout the District,

we would either have to employ more staff to run them, or not

operate as many libraries. The 3 community libraries which are

solely run by volunteers would incur greater ratepayer expense

if they were staffed.

Since 2008 the library has provided free internet access for

customers via the Aotearoa People’s Network Kaharoa (APNK).

This is a national government subsidised initiative aimed at

increasing New Zealanders access to digital information and

technology. For the Hurunui libraries, this provides computer

technology and software, including wireless access at some sites.

This internet access is high speed and reliable and delivered

through 17 computers throughout the District.

Youth Programme

Since 2008 we have run a Youth Programme within the District.

Funding to support the first three years of the project was

received from the Ministry of Youth Development. A youth

coordinator was appointed to develop and run a programme

with youth aged between 12 and 18 years. The programme has

been developing and a number of initiatives and activities have

been organised with the support and assistance of the youth

concerned and the local Area schools. The Youth Programme

has been a new area for Council and its success is a result of

support from local communities, parents and schools for the

programme to develop and continue and future funding.

Community Development

Programme

Our successful application for government funding to run a

Community Development programme commenced at the end

of 2010. A community development advisor was appointed to

work with the community to achieve an overall project aim to

‘enable people living and working in Hurunui to live a “whole

life” in the district; to strengthen the wellbeing of families and

promote a strong sense of community belonging, encouraging

people to be involved in local activities and support volunteer

services’. The programme has a set of outcomes and initiatives

for the community development advisor to deliver on. The

programme is intended to be finite and to conclude at the end

of June 2013.

Grants and Service Awards

We have 4 Service Awards which are presented annually. They

are:

1. Community Service Awards for those who have given

extended periods of exceptional volunteer service.

2. Secondary School Achievers Awards for promising

secondary students who will benefit from additional

financial assistance to undertake further study.

3. MainPower Hurunui Natural Environment Fund to

encourage and assist with voluntary work that benefits

the natural environment.

4. Hurunui Heritage Fund to encourage and assist with

voluntary work that protects, enhances, explains or

restores significant heritage values of the district.

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We also act as an agent and disburse grants on behalf of 2

government funded initiatives:

• Creative Communities Scheme to increase participation

and diversity in the arts at the local level.

• SPARC to encourage junior sporting teams to

participate in sporting activities by assisting with travel

costs.

We also pay a contribution toward the:

• Canterbury Museum which is a legislative requirement.

We are represented on the Canterbury Museum

Board as we share a North Canterbury member with

Waimakariri District Council. We consistently send

the message that the museum must be run as cost

effectively as possible to minimise the rate burden on

our community but at the same time, get value for

money.

• The North Canterbury Sport and Recreation Trust

to recognise sporting excellence amongst our young

people.

Plans for the future

Library

We are planning to move the Cheviot community library from

the Cheviot Area School and position it in the Cheviot Service

Centre building on the main street. This will be more accessible

to all and parking will be available directly outside the building.

Library and Council services will be delivered from the one site.

The new hours and days it will be opening are being considered

by a working group comprising of Cheviot local people.

All library items will continue to be updated as appropriate to

meet the needs of the district. One of our challenges is to

keep up with technology and improvements while at the same

time, be mindful of the cost to the ratepayer and assessing the

value of any new service or product. Technology is an area that

continues to develop at a fast pace and customers are generally

receptive to these types of enhancements. Because of the fast

pace of change, it is difficult to accurately predict what will be

available in the near future, let alone the life of this plan.

within the Canterbury region to enable our customers to use

other libraries with a Hurunui library card and vice versa.

Youth Programme

We plan to continue to deliver the programme along similar

lines to the current format. Whereas we do not have plans to

change, incremental change will naturally occur in the ensuing

years as the youth influence the look of the programme.

Community Development

Programme

We plan to continue to deliver on the programme as anticipated

when we applied for funding. There are no plans to continue

the programme beyond 2013. The purpose of the programme

is to increase the communities’ capabilities so that the

programme is not actually required any longer. We committed

to the programme on that basis and have not intended for it to

continue beyond 2013.

Grants and Service Awards

Funding was agreed to in 2009 to support the North Canterbury

Sport and Recreation Trust to help fund a primary school

sport coaching programme for the 28 schools in the North

Canterbury area. This initiative commenced in 2009 and was

backed by SPARC for the first 3 years to get it up and running.

Hurunui will contribute to the programme from year 2012 to

enable the programme (and the expected long term benefits)

to continue.

Our levy to the Canterbury Museum for running costs is

$53,842 for the 2011/2012 year. This is set to increase over

the 10 year period to an estimated $110,213 for 2021/2022

year. The Museum intends to proceed with a redevelopment

project that has been signalled in their previous Annual Plans.

The redevelopment has been estimated at costing $63.7 million

and is scheduled to occur between 2013 and 2016. The levy

which will be imposed on our Council for the proposed capital

development, in addition to the operational levy Council pays,

has been budgeted at; $50,000 for 2013/2014; $100,000 for

2014/2015; and $50,000 for 2015/2016. We have no ability to

decline paying this fund once the Museum’s Plan and budget is

approved by the Canterbury Museum Board.

A review of our library hours is undertaken from time to time

to check whether we are open to the public at the best times

for most people. As an example the Hanmer Springs Library

increased its opening hours in 2009.

We work with other libraries to enhance the services offered

to our district and to make efficiencies where possible. For

example, we have shared agreements with some other libraries

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Funding

Library

Operational Costs:

• Library user charges (overdue fines, book reserves etc).

• The libraries in Amberley and Hanmer Springs are

located on reserves, therefore, the net operational

costs are funded through the surplus from the Hanmer

Springs Thermal Reserve.

• The libraries in Culverden, Hawarden and Cheviot are

not located on reserves and as such, the funding of the

operational costs for these is made from an allocation

from the Council’s treasury surplus. Therefore, there is

no rating input to operate the libraries.

Capital Costs:

• Significant Capital Expenditure on land and building may

be funded from the Hanmer Springs Thermal Reserve

surplus, Council reserves or loans according to the

Council’s Internal Financing Policy.

• If the Capital Expenditure caters for future growth, then

the portion of the expenditure that relates to growth

may be funded via Development Contributions.

• The construction of the Hurunui Memorial Library was

funded from two loans as per the Council’s Internal

Financing Policy. The first loan represented the majority

of the cost. The repayments of principal and interest for

the majority of the loan are funded through development

contributions. The second loan of $260,000 has been

paid by the Amberley Ward ratepayers since 2004 at

$16.00 per rating unit. This has been used to fund the

interest and principal repayments.

Youth Programme

Operational Costs:

• The Youth Programme is run via the Library service and

funded through the Hanmer Springs Thermal Reserve

surplus

Community Development

Programme

Operational Costs:

Grants and Service Awards

Operational Costs:

• Uniform Annual General Charge

Council Owned Assets

Library

Hurunui Memorial Library, Amberley

• Hanmer Springs Service Centre/Library

• Waiau Hall (which houses the community library)

• Cheviot Service Centre (soon to include the community

library)

• Computers, hardware and software

• Books, CDs, Videos etc

Youth Programme

• Vehicle

• Programme tools (computers, cameras, projector,

games etc)

Community Development

Programme

• Not applicable

Grants and Service Awards

• Not applicable

Maintenance and Operating Implications

Library

Apart from the initial alterations to the Cheviot Service Centre

to accommodate the library, there is no real change planned

for upcoming maintenance and operating costs, which includes

routine repairs and keeping buildings in good condition.

Library resources (books, videos etc) are purchased through an

annual budget provision. Donated or locally fundraised items

are either vested in the Council or ownership is held by the

donor as agreed.

Some of the library computers and software are owned and

supported through a government funded programme (called the

Aotearoa People’s Network). Maintenance and operating costs

are through them.

• Funded through a grant from the Department of

Internal Affairs

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Youth Programme

The Council plans to support the programme by providing

funds to pay a youth coordinator and running costs for a vehicle.

There is no provision for a replacement vehicle or to replace

programme tools as the programme was not initially intended

to progress beyond 3 years. It is intended that any replacement

items needed would be paid for through fundraising.

Community Development

Programme

The programme’s main resource is the community development

advisor. There are no maintenance and operating implications as

this is fully funded and supported by the Department of Internal

Affairs.

Grants and Service Awards

Council acts as an agent in administering and distributing

grants on behalf of 2 government funded initiatives (SPARC and

Creative Communities). Both organisations provide assistance

to manage the schemes by setting the criteria for funding

distribution. Council staff administer the other grants and

awards internally.

Assumptions and Risks

Library

It is assumed that the Cheviot community library will move into

the Cheviot Service Centre. We are planning to run the new

Cheviot library/service centre at the same cost as it is to run

the service centre and library staffing now.

We are not planning to move any other libraries and assume

they will continue to operate in their current buildings and

locations. However, we do need to be mindful that at any stage

the schools could opt to discontinue their association with the

Council and choose to quit the community libraries from their

schools. We do not have contingency plans if this was to be the

case, but it is unlikely.

The smaller volunteer run libraries are only likely to continue

as long as there are people willing to take on this responsibility

on a volunteer basis. The cost of transferring these libraries to

the District library network and staffing them is likely to be cost

prohibitive.

The libraries have computers and internet services supplied

through the national APNK programme at no cost to us. We

cannot guarantee that this will be available to NZ’s libraries

for ever and at some point, we may need to carry this cost or

reconsider ongoing free internet usage.

Youth Programme

It is assumed that the Youth Programme will continue throughout

the life of the long term plan and be funded via profits from the

Hanmer Springs Thermal Reserve. If this method of funding was

no longer available, (for example, if the profits were less than

anticipated and there was less to spend), the programme would

be funded through general rates instead. It is also assumed that

there will be on going alternative funding opportunities to apply

for grants to support the programme and thereby reduce the

reliance on the thermal reserve profits or general rates. In the

event there is no funding available, and the community is not

prepared to fund it, the programme would cease to continue.

Community Development

Programme

It is assumed that the Community Development Programme will

cease once the government funding finishes in June 2013. In the

event the community and the Council consider the programme

worth continuing beyond 2013, the cost would likely to be met

via general rates.

Grants and Service Awards

It is assumed that the grants and service awards currently

provided for will continue. Some external funding is received

toward these and should this cease to be available, Council will

need to reconsider its position regarding the on-going financial

support of its grants.

Shared Services

Library

We operate our community library service in conjunction with

school libraries in three district area schools (Amuri, Cheviot

and Hurunui). Our new library management programme was

a shared purchase with several other libraries throughout New

Zealand. This has a shared helpdesk and IT support.

Grants and Service Awards

The Mainpower Hurunui Natural Environment Fund is a joint

collaboration between Mainpower, which donates $4,000

towards it, and we match it with another $4,000 each year.

Under legislation, Hurunui, Waimakariri and Selwyn District

Council’s along with Christchurch City Council contribute to

the cost of running the Canterbury Museum. The Museum is

overseen by a Board, of which we share a membership role with

Waimakariri Council.

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Goals and Performance Measures

Community Outcomes

1. A desirable and safe place to live

2. A place where our traditional rural values and heritage make Hurunui unique

Goals

Provide community services

that are valued by people in

the District

How we will achieve our

Goals

Run a youth programme that

meets the needs of our local

youth*

Run the Community

Development Programme

with specific outcomes

Undertake a residents

satisfaction survey

Reward and recognise

outstanding contribution

from people in the District

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

Youth events attendances

reach no less than the

minimum desired

The projects short term

outcomes will be achieved

Satisfaction with library

customers is maintained or

continues to improve

Awards and funds are

dispersed according to the

criteria annually

Attendance numbers have

been documented for each

event, they have not been

analysed over the year

The programme is behind

schedule due to staffing gaps

but we aim to catch up by

Dec 2012

Satisfaction levels with those

who use the current library

service is 96% by those who

use the service, and 84% if we

count those who do not use

the library

All awards were distributed

and most funds dispersed.

A small sum of funds was

transferred to the next

year from the Creative

Communities fund.

√ √ √ √




√ √ √ √

*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

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

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.

Financial Summary

A financial summary for this activity is shown on the next page.

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Hurunui Community Long Term Plan 2012 - 2022

Community Services - Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

District Wide Rates 111,231 125,256 183,171 245,584 207,940 164,669 171,323 178,239 186,694 193,770 202,051

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

Other Income 152,809 171,950 94,828 97,715 100,814 104,133 107,094 110,119 113,604 117,429 121,273

Internal Interest Received 1,577 282 772 1,441 1,924 2,381 3,167 4,256 5,678 7,210 8,191

Development Contributions 40,698 37,854 38,777 40,624 30,798 0 0 0 0 0 0

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

Operating Expenditure

Employee Benefits 481,512 559,940 494,474 509,529 525,687 542,996 558,434 574,209 592,381 612,326 632,368

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

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

Council Overheads Expenditure 443,281 502,662 513,161 529,880 537,137 550,357 562,698 574,570 594,306 605,220 620,842

Depreciation 118,136 109,842 109,842 112,344 112,444 112,444 114,121 114,121 114,121 116,611 116,611

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

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)

Capital Statement

Capital Expenditure

Library 92,654 65,000 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131

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

Funds Required

Operating Deficit 0 658,024 644,043 673,451 695,712 755,749 772,229 755,948 767,615 772,512 763,761

Capital Expenditure 92,654 65,000 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131

Transfer to General Council Reserves 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953 72,953

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

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

Funded by

Operating Surplus 86,638 0 0 0 0 0 0 0 0 0 0

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

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

Transfer from General Council Reserves 92,654 78,285 67,548 69,797 72,196 74,796 77,643 80,789 84,234 88,082 92,131

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

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Activity 2: Property

Overview

The Property activity includes the Council’s:

• Buildings (housing, medical centres, and halls)

• Public toilets

• Swimming pools

• Township maintenance (street cleaning, grass mowing,

and township maintenance)

Current Situation

Buildings

We own and maintain a variety of buildings as shown below:

• Some commercial premises that are leased to small

businesses

• 34 housing units for the elderly – 12 in Amberley, 13 in

Cheviot, 4 in Hanmer Springs and 5 in Waikari

• 3 residential houses – 1 in Leithfield Beach, 1 in Cheviot

and 1 in Hanmer Springs.

• 5 water and sewerage depots

• 4 Council service centres / libraries

• 5 closed landfills

• 5 transfer stations

• 4 medical centres - Cheviot, Hanmer Springs, Rotherham

and Waikari

• 2 doctors houses - Cheviot and Rotherham

• 14 halls throughout the District

Public Toilets

Throughout the district, there are:

• 14 toilet blocks located on reserves

• 16 district public toilets sited either on reserves or

Council freehold property

• 2 privately owned toilets which we contribute to the

maintenance of

All of the district toilets have been built or renovated within the

last 10 years so are in a very good condition. The toilets are

cleaned mainly via contracted services.

Swimming Pools

Our most well-known pool complex is the Hanmer Springs

Thermal Pools and Spa. This complex is not included in this

section and has a chapter of its own under the same name.

This section refers to our other public swimming pools located

in Amberley and Rotherham. Both pools only operate during

the summer months. The Amberley swimming pool is staffed

and operates as a public swimming pool. It is covered, but

not heated and is reliant on the sun to heat the water. The

Rotherham swimming pool is not covered or heated either and

is managed by the local swimming club and school, and they

determine who uses the pool. Only the Amberley swimming

pool has paid life guards and staff.

Township Maintenance

Ratepayers in each of the wards pay an amenity rate to fund

the general maintenance of their townships. Managing the

township maintenance this way seems to be popular by locals

as this enables people to have a say on where their rates are

spent. Ward and community type committees are very active in

the District with regard to planning and maintaining their areas.

We employ some gardeners and maintenance staff, but contract

out most township work to contractors for the likes of grass

mowing and general maintenance work.

Plans for the future

Buildings

A toilet expansion is planned for the Amberley Council Office

in 2012/13. The toilet block inside the building, beside Council

Chambers is the original toilet block built over 30 years ago and

is inadequate to meet the needs of public meetings nowadays.

The cost estimated to extend and update these toilets is

$45,000.

For some years now, it has been planned to move the Amberley

Transfer Station from its current site due to the resource

conditions expiring. A new location is nearing confirmation and

the move will occur in the 2012/13 year. The cost of building

a new station has been carried over and into the long term

budget from earlier years.

The Cheviot medical centre is outdated and $1 million has been

factored into the 2016/17 budget to either upgrade the existing

facility or to build a new medical centre. A full project scope

will be done before any building takes place to ensure that what

is built does meet the needs of the community into the future.

The $1 million has been based on the recent medical centre

built in Rotherham. Inflation has been added to the million for

the 2016/17 year.

A major upgrade of the Hanmer Springs sport stadium is planned

for 2015/16 at a budgeted cost of $1 million. This is an estimate

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only at this stage. $30,000 of that fund will be advanced to the

2012/13 year to undertake a feasibility study before the upgrade

is done.

Also in Hanmer Springs, it is planned to extend the community

hall which has been found inadequate for the use it gets.

$194,000 has been set in the 2014/15 budget with a further

$10,000 to be spent in 2012/13 to repair the hall stage.

With all of the above capital expenditure planned, although

these figures are mainly estimates until further scoping is done,

we consider these amounts to be maximum amounts and of

primary importance, is what local communities consider to be

affordable.

Public Toilets

An upgrade of the old toilet block in Hanmer Springs is planned

for 2012/13 at a cost of $30,000.

A budget provision of $90,000 has been identified in 2017/18

to build a new toilet block in Rotherham. There are no public

toilets currently there. However, before committing to this

expenditure, the need for public toilets in Rotherham will be

reviewed again when the next long term plan is developed in

2015.

Swimming Pools

The Amberley swimming pool is reaching the end of its useful

life and it is estimated that it will last another 7 years or so.

This pool has been the subject of much discussion in the past,

with a community desire to have a recreational swimming pool

facility that is heated, covered and can operate all year round. It

has been argued that this type of facility would attract a more

patrons to the pool from throughout the district and other

areas. The existing facility is being maintained in the meantime,

but the Amberley Ward Committee has been investigating

options to either replace or remediate the current pool.

$3 million had been budgeted in the previous long term plan,

but this provision has been removed until the Ward Committee

is able to recommend their preferred course of action and the

cost involved. The original $3 million was proposed to have

been funded 3 equal ways; Amberley Amenities Rate, Council

general rate and community fundraising. No fundraising has

yet taken place. Before a budget is identified and put to the

public to consider, more information is being sought. Therefore,

while there is no current budget identified at this stage, we are

prepared to provide for this once we have more information to

provide the community with first. We are planning to consult

with the public once we have more information and facts to

communicate so that people can make a considered opinion.

Township Maintenance

Various township maintenance plans are to occur over the

next few years and this is shown in more detail in the Township

Profile section earlier in this document.

Our main aim is to continue to maintain the existing local

facilities to a suitable standard depending on their use. The

demand for local facilities and maintenance plans is assessed

by taking into account residential, tourism and business growth

patterns, facility usage patterns, surveys and submissions.

Funding

Buildings

Rented Properties Operational Costs:

• Rents are intended to be affordable, but consideration

to the local market is given. In most cases, the rental

covers all operational costs.

• Any shortfall to be met from a local amenity rate (in

the case of medical centres or local amenities), or from

the District Rate on Capital Value (for pensioner and

residential housing).

Rented Properties Capital Costs:

• Any portion of expenditure relating to growth may

be funded from future lots or units of demand within

the ward or community rating area via development

contributions.

Medical Centres Operational Costs:

• 100% user charges with any shortfall funded by a medical

centre rate within the relevant ward or community

rating area.

Medical Centres Capital Costs:

• Loan funded by a medical centre rate within the relevant

ward or community rating area.

• If the District should contribute (in the past, there has

been a $150,000 contribution made to each community)

then the amount of the contribution is subtracted from

the loan.

• Any portion of expenditure relating to growth may

be funded from future lots or units of demand within

the ward or community rating area via development

contributions.

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Public Toilets

Toilets Provided on Tourist Routes:

• 100% District Rate or use of surpluses from the Hanmer

Springs Thermal Reserve.

Ward or Community Rating Area Toilets:

• Included in Township Maintenance is 100% local amenity

rate on the local ward or community rating area.

• If the Council decides to apply some of the surplus

from the Hanmer Springs Thermal Reserve, the amount

of the contribution is subtracted from the District Rate.

• If any of the Capital Expenditure caters for future

growth, then that portion of the expenditure that

relates to growth may be funded from future lots via

Development Contributions and loans.

Swimming Pools

Operational Costs:

• 100% Local Amenity Rate.

Capital Costs:

• This depends on who will use the pool. If mainly the

local ward, then loan funded within the relevant ward

or rating area. If use is also expected to be district wide,

a portion may be decided to be funded via the District

Rate. Community fundraising may also be expected.

Township Maintenance

Operational and Capital Costs:

• 100% local amenity rate.

Council Owned Assets

Buildings

• Commercial premises

• 34 pensioner housing units

• 3 residential houses

• 5 water and sewerage depots

• 4 Council service centres / libraries

• 5 closed landfills

• 5 transfer stations

• 4 medical centres

• 2 doctors houses

• 14 halls

Public Toilets

• 14 public toilet blocks

• 16 district public toilets

Swimming Pools

• 2 public swimming pools (excluding Hanmer Springs

Thermal Pools and Spa)

Township Maintenance

• Not applicable

Maintenance and Operating Implications

Buildings

A property review is undertaken every several years to assess

the state of the property portfolio and to enable a suitable

maintenance programme to be put in place. Generally, all

properties are maintained to a level that keeps them functional.

Maintenance and upkeep is undertaken by contractors.

Public Toilets

The maintenance of these facilities, including cleaning and

replenishing of supplies is contracted out.

Swimming Pools

Both swimming pools are aged pools and maintained to a basic

level to keep them operational and safe. Both pools, particularly

the Amberley swimming pool, have regular maintenance and

repair costs to keep them functional. Most work on the

Amberley pool is done by staff, but contractors are used for

specialist jobs (such as plumbing).

Township Maintenance

We intend to retain ownership of the properties and facilities as

outlined in this section. The local Ward Committees and Boards

have the delegated responsibility to authorise improvements in

their particular Ward through the use of amenity rating. For

physical works, we employ some gardeners and cleaners (mostly

part time), however most work in this activity area is done by

contractors. Many of the District’s halls are managed by the

local Reserve Committee or Hall Committee.

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Hurunui Community Long Term Plan 2012 - 2022

Assumptions and Risks

Buildings

It is assumed that we will continue to own the buildings we

currently have, and we are not planning on increasing our stock.

There is some risk in this, such as:

• We only provide pensioner housing in Amberley,

Cheviot, Hanmer Springs and Waikari. This may

inadvertently have social and cultural impacts upon the

age demographics in local communities as the elderly

population becomes concentrated in certain areas

only. This may result in higher demands on some local

services and facilities. Demand for pensioner housing in

some parts of the District at times is greater than our

supply. This could result in some older people leaving

the District when we are in fact keen for residents of all

ages to be able to live in the community of their choice.

Township Maintenance

It is assumed that the current facilities as described in this

section will continue to be needed by the local communities.

It is also assumed that the communities expect us to maintain

the facilities and amenities at the lowest cost possible. As the

population in the District changes, there are possible issues for

rate payers when having to fund facilities to match residents’ and

visitors’ expectations. Given the rural nature of the district, and

consequential small population, the costs can pose challenges.

• The Hurunui District has an aging population that is

expected to increase for the next several years. This

is expected to place additional demand for low cost

housing options for aging and retired people, as well

as retirement homes and villages. We believe that this

demand is best met by the private sector.

We have assumed that the community will continue to support

the need for us to build medical centres and keep them

relevant to the needs of modern medicine to attract medical

professionals to our District.

Public Toilets

We intend to continue to own, control and manage public

toilets throughout the district and replace them or build more

as required and can be properly justified. Discussion does take

place from time to time on the funding model for public toilets,

and whether or not the public should directly pay to use them.

Free use has been assumed for this long term plan.

Swimming Pools

Aside from routine maintenance and repairs, there is no budget

put aside to replace or significantly upgrade the two existing

swimming pools. There is a risk that the cost of doing so will

be greater than the community is prepared to pay. In the event

that the pools do fail and are not replaced, the local community

could be disadvantaged by not having this service at its disposal.

It is assumed that there is significant public support to either

replace or upgrade any pools before committing to the cost

involved.

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Goals and Performance Measures

Community Outcomes

1. A desirable and safe place to live

2. A place where our traditional rural values and heritage make Hurunui unique

Goals

To provide and maintain

buildings to support activities

and recreational needs for local

communities

To maintain townships so they

are neat and tidy

How we will achieve our

Goals

Maintain, upgrade or build

new medical centres

suitable for modern

medical procedures

Consult with the

community about the

future of the Amberley

swimming pool

Investigate complaints

about the standard of any

Council owned facilities

Undertake a residents

satisfaction survey

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

Build a new medical

centre (or significantly

upgrade the existing one)

Decide on the course of

action to be taken (build

or upgrade or abandon)

depending on community

views

All complaints are

followed up within 48

hours

Resident satisfaction

over attractiveness

and neatness of their

townships is maintained

or improved

The Cheviot medical centre

requires a rebuild or upgrade

but identified as inadequate

for the future

The current swimming pool

in Amberley is expected

to last for another five or

so years before it will no

longer be usable. The Ward

Committee is considering

where to from here. There

is no financial provision for

a new or upgraded pool at

this stage

Complaints have been

recorded in variable ways

up until now. We have a

customer service request

programme to log all

complaints and show when

they have been actioned

90% of residents considered

their townships to be well

kept and 85% said they were

attractive




√ √ √ √



Financial Summary

A financial summary for this activity is shown on the next page.

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Hurunui Community Long Term Plan 2012 - 2022

Property - Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

District Wide Rates * 5,056 (45,358) (48,498) (52,863) (54,846) (56,270) (57,400) (59,202) (60,511) (62,646) (64,922)

Targeted Rates 167,259 535,296 544,235 559,364 576,635 577,339 641,446 645,308 667,497 681,234 687,458

Other Income 398,690 400,800 413,345 425,930 439,437 453,906 466,812 479,998 495,188 511,862 528,615

Development Contributions 92,691 60,911 63,460 65,489 67,573 74,640 76,814 79,761 83,219 87,003 70,694

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

Operating Expenditure

Employee Benefits 141,524 143,127 147,607 152,101 156,924 162,091 166,700 171,409 176,833 182,787 188,770

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

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

Council Overheads Expenditure 151,854 114,233 116,946 121,232 122,518 125,543 128,272 131,046 136,017 137,683 141,156

Depreciation 170,037 222,270 224,071 280,936 305,541 308,155 336,171 337,952 339,809 357,573 359,604

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

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)

Capital Statement

Capital Expenditure

Rental Property 20,000 0 31,176 0 0 0 0 0 0 0 0

Public Toilets 0 0 0 0 0 103,563 0 0 0 0 0

Medical Centres 0 0 0 0 0 1,150,700 0 0 0 0 0

Halls 15,000 25,000 2,078 206,170 2,221 2,301 2,389 2,486 2,592 2,710 2,835

Pools 0 2,000 2,078 2,148 2,221 2,301 2,389 2,486 2,592 2,710 2,835

Township Maintenance 11,637 88,500 26,500 20,939 20,548 21,288 34,043 21,779 255,940 25,069 26,222

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

Funds Required

Operating Deficit 708,850 441,573 394,696 445,482 476,721 459,635 504,597 512,422 497,002 505,861 532,979

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

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

Transfer to General Council Reserves 72,060 81,825 70,805 86,710 88,621 77,878 96,163 97,945 99,910 105,020 107,305

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

993,862 783,459 697,089 942,577 783,627 2,028,921 841,408 853,086 1,089,629 889,936 918,648

Funded by

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

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

Transfer from General Council Reserves 0 0 22,585 0 0 88,786 0 0 0 0 0

Transfer from Special Funds 36,000 0 0 0 0 0 0 0 0 0 0

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

993,862 783,459 697,089 942,577 783,627 2,028,921 841,408 853,086 1,089,629 889,936 918,648

* Surpluses from Other Property and Residential Housing is used to offset the District Wide Rates

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Activity 3: Reserves

Overview

The Reserves activity includes the Council’s:

• Parks and Reserves

• Cemeteries

Current Situation

Parks & Reserves

There are currently 160 parks, reserves and recreation areas

in our district. This includes the Hanmer Springs Thermal

Reserve, now known as the ‘Hanmer Springs Thermal Pools and

Spa’. This section does not discuss the pools and spa as this

is a significant activity on its own right. Please refer to the

Hanmer Springs Thermal Pools and Spa section of this plan. The

reserves discussed in this section cover the 29 parks (picnic

areas/playgrounds), 10 camping grounds and 146 developed and

undeveloped reserves and plantation areas in the district. The

reserve portfolio now includes approximately 6.0 hectares of

the Queen Mary Hospital Historic Reserve in Hanmer Springs

(formerly owned by the Canterbury District Health Board).

Our reserves are highly regarded by those who use and

benefit from them. Council’s committee structure includes

several Reserve and Ward Committees which are delegated

responsibilities to ensure reserves are maintained and useful

for people to enjoy. The committees’ memberships include

volunteers and Councillors. The work of all of these groups is

sincerely appreciated by Council.

In 2011, The Council approved a smokefree strategy in

conjunction with Smokefree Canterbury. Our starting point is

to encourage no smoking around children’s playgrounds.

Cemeteries

There are 9 open cemetery reserves throughout our district

located at Balcairn, Cheviot (Homeview), Culverden, Glenmark,

Hanmer Springs, Horsley Down, Rotherham, Waiau, and Waikari.

We also own the Jed Cemetery Reserve in Gore Bay, Cheviot,

which is open only to ashes interments of family members

previously buried there.

Each of the cemeteries has more than enough vacant plots to

last for at least the next 10 years. Of the 9 cemeteries, Balcairn

Cemetery is used the most frequently with approximately 22

plots sold on average each year. In contrast, our least frequently

used cemetery is Rotherham, with an average of 2 plots sold

each year.

Whereas we own the cemetery reserves, we do not employ

staff to dig graves or maintain the cemetery grounds. Instead,

we contract the services of sextons, gardeners and trades

people. Cemetery plots are sold by Council staff. Anyone is

able to purchase a plot or to be buried in the cemeteries – they

are not only for Hurunui district residents.

Plans for the future

Parks & Reserves

We have had a comprehensive District Reserve Management

Plan since 2008. The Plan is being reviewed to update the

Governance and Management responsibilities and to identify

future development plans for each of the reserves. The current

plan identifies capital projects for some of the reserves but

these are to be removed. Instead capital projects will be

identified through the Long Term Plan process. Each ward is

being allocated money form the Hanmer Springs Thermal Pools

and Spa surplus, known as the ‘contestable fund’ to pay for the

capital projects.

The Queen Mary Hospital Historic Reserve Management Plan is

a new plan confirmed in late 2011 and approved by the Minister

of Conservation. That plan sets out the overall management goal

for the reserve and is supported by policies in the plan. It can be

found on our website: www.hurunui.govt.nz and use the search

to find the Queen Mary Hospital Historic Reserve Management

Plan. The plan includes a landscape plan for the reserve and

conservation management plans for each of the three historic

buildings on the site. We will be seeking expressions of interest

for the use of the buildings in 2012. Before we confirm or

agree to any proposals for the use of these buildings, public

consultation will be undertaken first to make sure any proposal

has the support of the wider community.

we will be progressing our Smokefree strategy to include all

Council awned reserves. The approach we are taking is to

encourage non smoking in public outdoor areas, but not to

regulate.

Cemeteries

There is a budget provision to purchase land beside the Balcairn

cemetery when it becomes available to future proof our most

popular cemetery. $120,000 has been put aside for 2013/14 to

do this although there is no immediate concern that we will run

out of space for some years.

Most of our cemeteries have many years remaining before they

will run out of space. It is predicted that the demand for plots

within the district’s cemeteries will increase gradually over

the next 50 years, due to the increasing age of the population

within the district. There is generally an increasing trend away

from cemetery burials as people are moving towards cremation

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Hurunui Community Long Term Plan 2012 - 2022

services, but this has not impacted on the sales of plots within

the Hurunui.

Apart from the purchase of land, there are no major plans for

any of the cemeteries other than to keep them maintained to a

good standard and make sure they look tidy and attractive.

Funding

Parks & Reserves

Operational Costs:

• Amenity Reserves are 100% local amenity rates on

the ward or community rating in which the reserve is

located.

District Reserves are 100% District Rate and/or

Hanmer Springs Thermal Reserves surpluses.

• Camping Grounds are 100% user charge with any

shortfall met by a local amenity rate in the ward or

community rating area. Four of the ten Camping

grounds are managed by a lessee, Council receives a

portion of the annual turnover for these camps as a

rental.

• If long term funding is required, it can be catered for

under the Council’s Internal Financing Policy. The

monies needed to meet the loan costs under the Internal

Financing Policy should be treated as operational

expenditure.

Capital Costs:

District Reserves are funded100% by the District Rate

and / or the Hanmer Springs Thermal Reserve surpluses.

• Amenity Reserves are funded100% by the local amenity

rate on the ward or community rating area within

which the reserve in question is located.

• If any of the capital expenditure caters for future

growth, then that portion of the expenditure that

relates to growth maybe funded from future lots or

units of demand via development contributions.

• Contestable Funding is provided each year from the

surpluses from the Hanmer Springs Thermal Reserve to

each Ward or Rating area that may be used for meeting

development costs on amenity reserves.

Cemeteries

Operational Costs:

• Interment costs and purchase of plots are charged as

user charges. Any shortfall in operational costs will

be charged as a District Rate and/or Hanmer Springs

Thermal Reserves surpluses

Capital Costs:

• If the Council decides to apply some of the surplus

from the Hanmer Springs Thermal Reserve, the amount

oft he contribution is subtracted fromt he District Rate,

otherwise the total is met via the District Rate.

Council Owned Assets

Parks & Reserves

• 160 parks and reserves

Cemeteries

• 9 open cemetery reserves at Balcairn, Cheviot

(Homeview), Culverden, Glenmark, Hanmer Springs,

Horsley Down, Rotherham, Waiau, and Waikari.

• Jed Cemetery Reserve in Gore Bay.

Maintenances and Operating Implications

Parks & Reserves

We act as an administering body for a large number of parks

and reserves in the District. The parks and reserves are either

owned by Council or vested in Council to administer and

maintain. Those that are vested are owned by the Crown. We

have given our Reserve Committees delegations to run the day

to day maintenance and development of most of the reserves.

Lawn mowing and heavy maintenance is largely undertaken by

contractors in the main, but we do employ some gardeners.

Cemeteries

General maintenance and upkeep such as grass mowing,

weed spraying, rubbish removal, fencing, grave topping, digging

and landscaping, is undertaken by contractors. Generally, all

cemeteries within the district are well maintained.

Resident satisfaction surveys have confirmed consistent high

levels of satisfaction with our cemeteries.

Assumptions and Risks

Parks & Reserves

It is assumed that the district’s communities will continue to

support the preservation of the district’s reserves and parks

through the Reserve Committees currently in place. It is also

assumed that the historic buildings on the Queen Mary Hospital

Historic Reserve will be leased to external parties for commercial

use. If this does not occur, we will continue to keep the buildings

in good condition but we do not plan to do any upgrades or

developments funded by the ratepayer.

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Cemeteries

The biggest risk to our reserves is natural weather and

environmental conditions. In our recent past, the floods of 2008

caused severe damage in some of the reserves and dramatically

altered the landscape of some of them. We have not included

additional funding in this long term plan to restore reserves in

the event they are severely damaged in future.

Plans for our cemeteries are based on the assumption that our

nine cemeteries will continue to meet the needs of our aging (and

at times, growing) population for many years to come. There is

always a risk that a natural disaster could severely damage any

of the cemeteries, such as an earthquake or flooding. This has

not been the case to date, but if it did, alternative sites (or site)

may need to be identified.

Goals and Performance Measures

Community Outcomes

• A desirable and safe place to live

• A place where our traditional rural values and heritage make Hurunui unique

Goals

To provide parks and reserves

for people to enjoy

Our cemeteries meet the

needs of our communities

How we will achieve our

Goals

Involve local communities

in the planning and

development of their

reserves

Manage the Queen Mary

Historic Hospital Reserve in

a manner consistent with its

Management Plan

Undertake a residents

satisfaction survey

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

Reserve and / or Ward

Committees spend their

annual budgets on projects

identified for that year

Lease the historic buildings

on the Reserve accordance

with the Plan or keep it

in good condition, if no

suitable proposals are

found

No less than 90% of

residents who have visited

a cemetery are satisfied

The allocated funding

has not yet been spent,

but committees have the

delegation to spend on

identified reserve projects

The buildings are currently

mothballed

93% of those who had

visited a District cemetery

were satisfied with the

standard

√ √ √ √




Financial Summary

A financial summary for this activity is shown on the next page.

Community volunteers working at the Rutherford Reserve Playground

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Hurunui Community Long Term Plan 2012 - 2022

Reserves - Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

Targeted Rates 0 249,929 252,106 261,932 260,397 268,997 277,251 284,507 293,537 304,087 313,407

Other Income 177,002 183,520 192,403 199,929 206,168 212,449 218,052 223,776 230,371 237,609 244,882

Internal Interest Received 94,727 34,968 35,025 39,522 44,162 45,789 49,815 50,142 53,059 52,252 55,255

Development Contributions 183,851 139,917 145,389 149,825 155,127 159,596 165,450 170,345 168,138 176,543 161,402

Total Operating Revenue 455,580 608,334 624,923 651,208 665,853 686,832 710,568 728,770 745,105 770,491 774,946

Operating Expenditure

Employee Benefits 149,800 173,816 179,256 184,714 190,572 196,847 202,443 208,162 214,750 221,980 229,246

Direct Operating Expenditure 718,671 856,405 853,710 844,947 860,465 917,195 947,768 966,565 992,754 1,027,666 1,054,996

Internal Interest Paid 872 743 2,523 2,335 2,121 34,349 34,010 34,437 33,351 55,675 56,383

Council Overheads Expenditure 359,406 380,926 389,597 401,478 407,153 416,557 425,070 433,739 447,250 454,232 464,945

Depreciation 62,801 65,839 65,839 66,828 66,828 66,828 67,166 67,166 67,166 68,241 68,241

Total Operating Expenditure 1,291,550 1,477,730 1,490,926 1,500,303 1,527,140 1,631,776 1,676,458 1,710,069 1,755,270 1,827,794 1,873,811

Operating Surplus (Deficit) (835,970) (869,395) (866,003) (849,095) (861,286) (944,944) (965,890) (981,299) (1,010,165) (1,057,304) (1,098,865)

Capital Statement

Capital Expenditure

District Reserves 71,646 71,646 74,455 116,933 1,230,277 82,443 85,581 89,049 92,846 97,087 101,551

Cemeteries 5,265 5,000 129,900 5,369 5,554 5,754 5,973 6,215 6,480 6,776 7,087

Amberley Reserves 18,172 20,000 83,136 10,738 11,107 11,507 23,890 37,287 277,711 13,551 14,174

Amuri Reserves 8,424 8,500 8,833 9,127 9,441 15,534 10,153 10,565 11,015 11,518 19,135

Hanmer Springs Reserves 12,324 110,000 10,392 10,738 1,088,486 11,507 131,395 12,429 12,959 13,551 14,174

Total Capital Expenditure 115,831 260,146 306,716 152,906 2,344,865 126,745 256,992 155,544 401,011 142,483 156,121

Funds Required

Operating Deficit 835,970 869,395 866,003 849,095 861,286 944,944 965,890 981,299 1,010,165 1,057,304 1,098,865

Capital Expenditure 115,831 260,146 306,716 152,906 2,344,865 126,745 256,992 155,544 401,011 142,483 156,121

Transfer to General Council Reserves 0 27 27 28 28 28 29 29 29 30 30

Transfer to Special Funds 271,774 152,423 182,749 186,742 196,810 178,366 180,727 191,014 195,237 178,221 165,056

Repayment of Internal Loans from Operating Income 0 34,844 38,139 1,015 4,257 44,318 48,128 51,541 293,877 33,079 38,134

1,223,575 1,316,835 1,393,634 1,189,785 3,407,246 1,294,401 1,451,766 1,379,427 1,900,319 1,411,116 1,458,206

Funded by

Transfer from Hanmer Springs Thermal Reserve 797,386 961,569 984,438 972,980 992,462 1,057,462 1,083,103 1,105,737 1,138,585 1,167,392 1,195,536

Non Cash Expenditure - Depreciation 62,801 65,839 65,839 66,828 66,828 66,828 67,166 67,166 67,166 68,241 68,241

Transfer from General Council Reserves 7,154 5,000 129,900 5,369 5,554 5,754 5,973 6,215 6,480 6,776 7,087

Transfer from Special Funds 71,646 140,646 83,807 86,598 1,738,963 92,799 203,837 100,235 342,786 109,283 114,308

Capital Expenditure funded through Internal Loans 284,588 143,781 129,649 58,011 603,439 71,558 91,688 100,074 345,303 59,424 73,035

1,223,575 1,316,835 1,393,634 1,189,785 3,407,246 1,294,401 1,451,766 1,379,427 1,900,319 1,411,116 1,458,206

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Environment and Safety

Overview

Environment and Safety covers the following 4 activity areas

described below:

Activity 1:

Emergency Services (civil defence and rural fire)

Activity 2: Resource Management (administering the District

Plan, resource consents, township planning, policy and bylaw

development)

Activity 3: Compliance and Regulatory Functions (building

controls, public health and liquor licencing, and animal control)

Activity 4: Waste Minimisation (refuse, recycling, transfer

stations, and litter bin collection)

Our Aim

To protect people, animals, and the environment from natural

disaster, disease and hazards.

Why is the Council Involved?

The Council is involved with the activities within the Environment

and Safety group to provide for the wellbeing of its people. All

of the activities within this group are to do with ensuring our

communities, including our environment, are protected from

certain harm to preserve what we have and leave it in good

condition for future generations. We want to help make our

District a desirable place through managing adverse effects of

activities and conditions through our policies, bylaws and plans.

These activities also contribute to the long term achievement of

our community outcomes.

Community Outcomes

The Community Services and Facilities described in this section,

primarily contribute to two of our community outcomes:

1. A desirable and safe place to live:

• We have attractive well designed townships

• Communities have access to adequate health and

emergency services and systems and resources

are available to meet civil defence emergencies

• Risks to public health are identified and

appropriately managed

2. A place that demonstrates environmental responsibility:

• We protect our environment while preserving

people’s property rights

• We minimise solid waste to the fullest extent,

and manage the rest in a sustainable way

Major Projects Planned

Project

New generator for the

Amberley Office used as

an emergency operation

centre in a civil defence

emergency

Tsunami remote trigger to

activate warning systems in

place in beach settlements

Tanker compliance survey $99,000

Year Planned

2012/13 2013/14 2014/15 2015+

$50,000

$25,980

Purchase and install digital $30,000 $32,214 $33,321

radios to replace defunct

analogue radio system

Tanker replacements $15,000 $99,963

Waiau fire depot $93,528

Waiau smoke chaser $40,000

Engineer assessments on

earthquake prone buildings

Significant Negative Effects

$23,000 $23,720 $24,442

The main intention of this group of activities is to mitigate

negative effects on the District and its environment. In the

main, our actual activities do not cause any significant negative

effects. The negative effects that this group of activities is aimed

at negating or minimising includes:

• Unclean and dangerous food handling can have

significant detrimental effects on the public through

sickness, therefore it is important we follow up

complaints involving food premises promptly to prevent

further spread of the disease. Similarly with water, as

infection and illness can spread quickly via drinking

water in particular.

• We have a key role to reduce negative effects caused

through sickness and alcohol abuse through the

regulation of alcohol outlets (such as restaurants and

retailers) and limiting the number of hours alcohol is

for sale.

• Unruly dogs and animals pose dangerous risks to people

and stock. There have been several cases of extreme dog

attacks in recent years within New Zealand which has

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raised people’s awareness of the potentially dangerous

nature of dogs in particular and as a result, there is less

tolerance to roaming animals or dog attacks. This has

caused a demand for a higher level of service from us

to respond quickly to complaints and to take measures

to ensure compliance.

• Standards in the District Plan and legislative acts, such

as the Resource Management Act attempt to minimise

potential negative impacts on the environment.

• Unruly fires have obvious negative impacts and can lead

to loss of life and property. Fire controls and having

trained fire teams in the District are essential.

• Waste and recycling activities have the potential

to cause significant negative effects to people and

the environment and we are serious about our

duty to reduce and minimise those possible effects.

Contractors carrying rubbish and recycling are required

to have vehicles which meet stringent conditions to

avoid contamination. Landfills (operational and nonoperational)

are monitored to ensure any leachates are

within acceptable levels. Health and safety standards

are essential and a requirement of contracts pertaining

to the collection of recycling and rubbish, and the

management of the transfer stations.

Emergency Management

In an emergency, particularly a civil defence emergency, we will

continue to deliver services as long as it is safe and practical

to continue to do so. Many of the activities within this group

will be required in an emergency, depending on the problem.

Public health concerns are often of paramount importance in

certain disasters particularly when there issues with water and

sewerage disposal. In a civil defence situation, we will activate

our emergency operation centre and manage the response

and recovery with other agencies required (such as police, fire

and ambulance). Following an earthquake, building services are

necessary to check the safety of buildings. The fire service is an

essential service in most situations, as well as in the case of a

fire emergency.

Financial Summary

A financial summary for this group of activities is shown on the

next page.

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Environment and Safety - Group Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

District Wide Rates 1,920,698 2,144,156 2,247,608 2,325,111 2,352,458 2,444,188 2,516,215 2,588,731 2,679,636 2,766,418 2,859,066

Targeted Rates 1,088,424 1,045,916 1,063,984 1,099,887 1,136,308 1,175,819 1,212,908 1,251,021 1,294,370 1,339,184 1,385,649

Other Income 1,274,743 1,290,300 1,330,686 1,371,202 1,414,685 1,461,265 1,502,812 1,545,263 1,594,166 1,647,842 1,701,777

Internal Interest Received 2,490 0 0 0 0 0 0 0 0 0 0

Total Operating Revenue 4,286,355 4,480,372 4,642,278 4,796,200 4,903,451 5,081,272 5,231,935 5,385,015 5,568,172 5,753,444 5,946,492

Operating Expenditure

Employee Benefits 1,217,398 1,294,409 1,334,924 1,375,568 1,419,190 1,465,918 1,507,598 1,550,184 1,599,242 1,653,090 1,707,196

Direct Operating Expenditure 2,303,507 2,378,330 2,465,147 2,558,270 2,573,064 2,682,700 2,733,353 2,836,911 2,899,508 3,025,233 3,095,234

Internal Interest Paid 11,476 8,089 8,221 9,591 10,577 11,374 12,039 12,459 12,584 12,520 12,172

Council Overheads Expenditure 694,939 717,137 742,428 776,148 796,465 826,621 853,715 881,038 921,757 948,389 983,590

Depreciation 107,506 107,238 111,108 113,914 115,060 116,287 118,205 119,323 120,612 123,458 124,880

Total Operating Expenditure 4,334,826 4,505,202 4,661,829 4,833,491 4,914,357 5,102,900 5,224,910 5,399,915 5,553,704 5,762,690 5,923,072

Operating Surplus (Deficit) (48,471) (24,831) (19,551) (37,292) (10,906) (21,628) 7,025 (14,900) 14,468 (9,246) 23,420

Capital Statement

Capital Expenditure

Emergency Services 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0

Resource Management & Planning 25,695 0 25,980 26,845 0 28,768 29,863 0 32,398 33,878 0

Compliance & Regulatory Functions 0 0 51,960 26,845 0 57,535 29,863 0 64,795 33,878 0

Waste Management 0 0 0 0 0 0 0 0 0 0 0

Total Capital Expenditure 133,101 234,000 197,448 112,749 133,284 189,866 197,093 0 97,193 101,633 0

Funds Required

Operating Deficit 48,471 24,831 19,551 37,292 10,906 21,628 0 14,900 0 9,246 0

Capital Expenditure 133,101 234,000 197,448 112,749 133,284 189,866 197,093 0 97,193 101,633 0

Transfer to General Council Reserves 107,506 107,238 111,108 113,914 115,060 116,287 118,205 119,323 120,612 123,458 124,880

Transfer to Special Funds 0 22,000 22,689 23,379 24,121 24,915 25,623 26,347 27,181 28,096 29,016

Repayment of Internal Loans from Operating Income 6,554 15,372 0 0 0 0 (5,787) (1,726) 877 4,802 8,912

295,632 403,441 350,796 287,334 283,370 352,696 335,134 158,844 245,863 267,235 162,807

Funded by

Operating Surplus 0 0 0 0 0 0 7,025 0 14,468 0 23,420

Non Cash Expenditure - Depreciation 107,506 107,238 111,108 113,914 115,060 116,287 118,205 119,323 120,612 123,458 124,880

General Council Reserves 149,949 234,000 197,448 112,749 133,284 189,866 197,093 0 97,193 101,633 0

Transfer from Special Funds 35,435 45,000 23,344 47,069 24,036 37,373 12,812 39,521 13,591 42,144 14,508

Capital Expenditure funded through Internal Loans 0 17,203 18,895 13,602 10,990 9,171 0 0 0 0 0

292,890 403,441 350,796 287,334 283,370 352,696 335,134 158,844 245,863 267,235 162,807

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Activity 1: Emergency Services

Hurunui Community Long Term Plan 2012 - 2022

Overview

The Emergency Services activity includes the Council’s:

• Civil Defence

• Rural Fire

Current Situation

Civil Defence

In the Hurunui District, there are now nine Sector Posts

(Cheviot, Culverden, Hawarden, Waiau, Mt Lyford, Hanmer

Springs, Motunau Beach, Glenmark and Amberley), and a District

Headquarters at Amberley Office. Over 70 local volunteers from

diverse backgrounds are involved in these centres. Volunteers

are generally local people who receive training so they know

what to do should a disaster or emergency situation arise.

To strengthen our ability to manage in a disaster, key

relationships have been established with our neighbouring

District Councils (Waimakariri and Kaikoura), and those within

the greater Canterbury Region, as well as the Ministry of Civil

Defence Emergency Management (MCDEM), critical emergency

service partners and support agencies from both Government

and non-Government organisations (such as Red Cross, St

Johns Ambulance, Ministry of Social Development, Canterbury

District Health Board).

The Hurunui District has 106 kilometres of coastline. With

heightened public awareness about the risk of tsunamis

worldwide, a locally activated warning system is in place

at Amberley Beach and Leithfield Beach. No other beach

Rural Fire

We maintain a District Fire Plan which prescribes how we will

meet our fire management responsibilities. Our Emergency

Management Officer is appointed as the Principal Rural Fire

Officer who manages rural fire on behalf of the Council. We

have five Volunteer Rural Fire Force parties in the District

based in Waikari, Waiau, Conway Flat, Motunau Beach and Greta

Valley. Collectively these fire parties provide approximately

80 volunteers including 10 Rural Fire Officers and a Deputy

Principal Rural Fire Officer. Each rural fire party has a minimum

of one fire tanker and a portable pump. We provide tankers

to the New Zealand Fire Service brigades located in Amberley,

Waipara, Hanmer Springs and Cheviot. We are responsible for

providing the public with information and warnings regarding fire

hazard conditions. This includes placing fire bans during periods

of extreme fire risk, and bylaws to carry out fire prevention and

control measures.

Plans for the future

Civil Defence

Severe flooding in 2008 caused widespread damage within

the Hurunui District and tested our civil defence capabilities.

This confirmed that further Sector Posts and more volunteers

within the District would be beneficial. We intend to continue

increasing our capacity to deal more effectively with a civil

defence emergency when the time arrives. Subject to voluntary

community participation, we will seek to establish additional

Sector Posts in Leithfield, Waipara, Motunau Beach, Scargill-

Omihi area, Gore Bay, Conway Flat, Rotherham, and Waikari.

Funding has been available to fully automate the warning systems

at Amberley Beach and Leithfield Beach so that they do not

need to be manually activated.

We will continue to maintain an organisational structure of

suitably trained and competent people, including volunteers,

to manage civil defence emergencies. Recruitment drives for

civil defence volunteers are essential to maintain the numbers

of personnel needed in a civil defence emergency. Training is

delivered locally by our Emergency Management Officer and

regionally through the Canterbury CDEM Group for staff and

community volunteers.

Rural Fire

General upgrading of all rural fire equipment and depots will

continue to ensure that all Volunteer Rural Fire Force parties

have the physical resources needed to fight fires. Investment in

regional fire retardant depots will enhance our fire response

capability. Investment in national research projects will educate

people in the District on passive measures to help reduce the

incidence of wild fires.

Volunteers are crucial to this activity and recruitment drives

must be on-going to sustain required numbers for each

Volunteer Rural Fire Force established in our district. Numbers

of volunteers have been dwindling over the past years which is

of real concern. Full training is provided to volunteers to ensure

they are able to carry out their duties safely.

We will continue to promote, encourage and carry out

appropriate fire prevention and control measures in the

interests of public safety. This includes maintaining a written

Fire Plan, observing and assessing fire weather conditions and

other fire hazard conditions, and removing or reducing hazards

which may trigger unwanted vegetation wild fires.

Also being considered is a wider fire fighting agency to cover

the Canterbury region. This is in its early considerations with

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the intended outcome to enhance the region’s ability to share

resources and work together rather than each district have

its own fire teams. We will do our bit to ensure that careful

consideration is given to how this will work in the field and

whether we will be better off under this system. We will also

be concerned that the proposed model can be operated at an

affordable price.

Funding

Civil Defence

Operational Costs:

• 100% District Rate after taking into account the small

central government contribution via an annual grant

Capital Costs:

• Funded over the life of the asset and met through the

District Rate

Rural Fire

Operational Costs:

• Fighting fires – the property owner pays. In some

instances there may be a portion of the fire fighting

costs that may not be able to be recovered. Such costs

will need to be recovered in line with ‘other costs’.

• Other costs – after taking government grants into

account, 80% from ratepayers in the Rural Fire

Authority area and 20% from ratepayers outside the

Rural Fire Authority area. Both will be collected by way

of a Targeted Rate known as the Rural Fire Rate.

Capital Costs:

• Funded over the life of the asset and met through the

targeted rate.

Council Assets

Civil Defence

• Not applicable

Rural Fire

• Fire equipment and depots throughout the District

Maintenance and Operating Implications

Civil Defence

We will continue to manage and operate our civil defence

emergency management functions from our Emergency

Operations Centre at Amberley Office.

Rural Fire

We intend to continue to manage and operate our fire response

functions as currently in place while a possible Canterbury wide

fire fighting agency is considered.

Assumptions and Risks

Civil Defence

Planning and preparing for an emergency situation that may not

happen requires making assumptions. Civil Defence Emergency

Management planning is based on the assumption that a serious

disaster will occur, such as an earthquake. The Hurunui District

contains several fault lines that are said to be overdue to move. A

significant part of the Hurunui District is coastal, and therefore

at risk from tsunamis. Other major risks include flooding, wild

fires and the impacts of adverse weather conditions. Good

planning and preparation is crucial, therefore we have taken our

role in civil defence emergency management very seriously.

Rural Fire

Our District is prone to extreme drought conditions during

the summer months and it is then that callouts for fire services

are particularly high. It is assumed that this trend will continue

and that our fire services will continue to be frequently called

out. Of significant risk to our rural community is the constant

need to recruit, train and retain volunteers to be available when

there are fires. A major risk is the issue of health and safety.

Obviously, fighting fires is a dangerous activity and it is essential

that volunteers are fully trained to prevent injury or loss of life

to themselves and others. Fire plans and appropriate resources

are critical to mitigate these risks.

Shared Services

Rural Fire

Districts usually build up their fire fighting resources to meet

normal demands, but from time to time, local resources are

inadequate. There is a general commitment to assist others

when fighting larger fires. We bring in fire crews from outside

the District to fight large fires when necessary or use private

sector resources.

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Hurunui Community Long Term Plan 2012 - 2022

Community Outcomes

Goals and Performance Measures

1. A desirable and safe place to live

2. A place that demonstrates environmental responsibility

Goals

To be prepared for

emergency situations which

have adverse implications for

the District

How we will achieve our

Goals

Ensure there are sufficient

resources

Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+

Educate the public on how

to prepare themselves for

an emergency

Staff and volunteers are

trained to deal with an

emergency

A new emergency planning

guide was delivered to every

house in the District

Staff training was delayed

due to the earthquakes

in Canterbury, but many

received on the job practice.

Fire crews received training

every month.

√ √ √ √

√ √ √ √

Financial Summary

A financial summary for this activity is shown on the next page.

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Emergency Services - Activity Financial Summary

Annual Plan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022

Operating Statement

Operating Revenue

General Rates 159,516 156,046 160,658 166,125 170,351 175,760 180,583 185,498 192,131 197,468 203,757

Targeted Rates 263,546 274,088 285,051 296,453 308,312 320,644 333,470 346,809 360,681 375,108 390,112

Other Income 2,422 0 0 0 0 0 0 0 0 0 0

Total Operating Revenue 425,484 430,134 445,710 462,578 478,662 496,404 514,053 532,307 552,812 572,576 593,870

Operating Expenditure

Employee Benefits 168,769 105,720 109,029 112,349 115,911 119,728 123,132 126,610 130,617 135,015 139,434

Direct Operating Expenditure 182,347 177,900 183,468 183,741 189,568 195,809 201,377 207,065 213,618 220,811 228,038

Internal Interest Paid 837 6,974 8,221 9,591 10,577 11,374 12,039 12,459 12,584 12,520 12,172

Council Overheads Expenditure 97,166 99,764 103,038 107,999 109,951 113,790 117,235 120,724 126,651 129,251 133,715

Depreciation 51,178 56,978 60,848 62,500 63,646 64,873 66,057 67,175 68,464 70,177 71,599

Total Operating Expenditure 500,297 447,336 464,605 476,180 489,653 505,575 519,839 534,033 551,934 567,774 584,958

Operating Surplus (Deficit) (74,813) (17,203) (18,895) (13,602) (10,990) (9,171) (5,787) (1,726) 877 4,802 8,912

Capital Statement

Capital Expenditure

Emergency Services 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0

Total Capital Expenditure 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0

Funds Required

Operating Deficit 74,813 17,203 18,895 13,602 10,990 9,171 5,787 1,726 0 0 0

Capital Expenditure 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0

Transfer to General Council Reserves 51,178 56,978 60,848 62,500 63,646 64,873 66,057 67,175 68,464 70,177 71,599

Repayment of Internal Loans from Operating Income 578 0 0 0 0 0 (5,787) (1,726) 877 4,802 8,912

233,975 308,181 199,251 135,161 207,920 177,607 203,424 67,175 69,341 108,857 80,510

Funded by

Operating Surplus 0 0 0 0 0 0 0 0 877 4,802 8,912

Non Cash Expenditure - Depreciation 51,178 56,978 60,848 62,500 63,646 64,873 66,057 67,175 68,464 70,177 71,599

General Council Reserves 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0

Capital Expenditure funded through Internal Loans 0 17,203 18,895 13,602 10,990 9,171 0 0 0 0 0

158,584 308,181 199,251 135,161 207,920 177,607 203,424 67,175 69,341 108,857 80,510

H:\Long Term Plan Workings\Hurunui District Council LTP Budgets 2012-2022 - Post Submissions.xls 31/05/2012 9:34 a.m.

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Hurunui Community Long Term Plan 2012 - 2022

Activity 2: Resource Management

Overview

Plans for the future

The Resource Management activity includes the various

functions of Resource Management, such as administering the

District Plan, resource consents, township planning, policy and

bylaw development.

Current Situation

Resource Management

Our District Plan has been in place since 2003. This plan

identifies key resource management issues for the District and

our objectives, policies and methods for addressing each of those

issues. The District Plan is a legal document which affects the dayto-day

lives of everybody in the Hurunui District. The Plan is a

requirement of the Resource Management Act 1991 (RMA). The

purpose of the RMA is the sustainable management of natural

and physical resources while avoiding, remedying or mitigating

adverse environmental effects and providing for the wellbeing of

communities. The Plan’s framework provides objectives, policies

and methods to manage the use and development of natural and

physical resources to meet the purpose of the RMA. The current

District Plan has not been frozen in time since 2003. We have

processed 31changes to parts of the Plan then, responding to

particular issues such as frost control fans, quarrying and mining,

urban and rural subdivision standards. We are also required to

review the Plan every 10 years.

To achieve the objectives and policies set out in the District Plan,

we set rules and standards which any developments must meet.

We process a number of resource consent applications from

applicants who want to do things that do not comply with the

land use provisions of the plan or who want to subdivide their

property. Two thirds of resource consents processed relate to

subdivision consents. We grant about 98% of resource consent

applications without public notification within 20 working days

of the application been received. The remaining 2% of consents

require notification for a variety of reasons, including situations

where potentially affected parties have not given their written

conse