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 

4


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 


Review of the District Plan completed 

2013/14 

2014/15 

Central Government Elections 


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 


Cheviot Medical Centre Upgrade or 

Rebuild 

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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 


2018/19 

2017/18 2019/20 

Representation Review 


2020/21 

Central Government Elections 


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. 


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 

9


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. 

10

How Your Rates are Spent 

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


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% 


11% 

Sewerage 

2% 

Stormwater and 

Drainage 

0% 

Roads and Footpaths 

19% 



Spa 

25% 

District Promotion 

2% 

Waste Minimisation 

6% 

Compliance and 

Regulations 

2% 


Services 

Property 

3% 

4% 

Reserves 

4% 

Emergency Services 

1% 

Resource 

Management 

3% 

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



Spa 

25% 


5% 


19% 

Sewerage 

8% 

Emergency Services 

2% 

Reserves 

2% 

Property 

1% 

Community Services 

1% 


Drainage 

3% 


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 

12


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. 

13


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. 

14


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, 

15


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. 

16


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 

17


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 

18


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 


$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 

19


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 


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 


20


• 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 

21


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 

22


• 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 . 

23


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. 


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 


• 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. 


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 


• 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 

24


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: 

25


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. 

26


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 

- 


Governance 

Hanmer Springs Thermal Pools and Spa 

Growth and Development 

Environment and Safety 

Community Services and Facilities 


Stormwater and Drainage 

Sewerage 


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. 


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. 

27


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. 

28


• 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. 


Other Income 

Hanmer Springs Thermal Pools and Spa 

NZTA Subsidies 

External Interest Received 


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. 

29


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 

30


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 








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 







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. 



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. 

31


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 

32


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. 

33


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: 


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 

35


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. 


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.


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. 

37


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) 


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 

38


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


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


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 

41


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 

42


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.


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. 

44


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 

45


Hurunui District Profile 

Kaikoura 

District 

46


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 

47


48


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). 

49


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 


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. 

50


Services and Amenities 

Major services and amenities in the district are available in the 

following locations. 

Kaikoura 


51


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.


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 

53


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% 

54

Amuri-Hurunui Ward Profile 


New Beginnings 


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. 


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. 

55


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. 




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) 

56



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 

57


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 


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 

58


Amuri-Hurunui Ward - Sample Properties 

Property 

Capital 

Value 

Supply 

Water 

Units 

No of 

Fixed 

Charges 

Actual 

Rates 

2011/2012 

Proposed 

Rates 


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 

59


Cheviot Ward Profile 


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. 


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. 


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. 






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. 

60


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. 


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 



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% 

61


Glenmark Ward Profile 


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! 


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. 


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. 

62


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. 






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. 


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’. 


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 

63


Key Projects 



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 


Proposed 

Rates 



$ % 

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% 

64

Hanmer Springs Ward Profile 


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.” 


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. 


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. 


• 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 

65


• 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 






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. 


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 


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 

66


• 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 



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 


Township (Tourism) 


Township 


Rural 

Capital 

Value 

Supply 

Water 

Units 

No of 

fixed 

Charges 

Actual Rates 


Proposed 

Rates 



$ % 

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% 

67



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 

68


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 


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 

69


Contribution to Community Outcomes 


Groups of 


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 


Water Supply ü ü 

Sewerage ü ü ü 


Drainage ü ü 


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. 


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, 


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 


Stage I – Waiau Township 


plant – Waiau Rural 



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 


plant (Main, Parnassus, 

Blythe, Kaiwara) - Cheviot 

Pipe renewal – Waipara 

Township 


plant – Waipara Township 

Land purchase water 

treatment – Hanmer 

Springs 

Renewal mechanical – 

Hurunui Rural 

Renewal pipe – Hurunui 

Rural 


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 

71


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. 

72

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 


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 

73


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 


Neighbourhood 



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 

74


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. 

75


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. 

76


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. 


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. 

√ 

√ 

√ 

√ 

√ 


A financial summary for this activity is shown on the next page. 

77


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 

H:\Long Term Plan Workings\Hurunui District Council LTP Budgets 2012-2022 - Post Submissions.xls 31/05/2012 9:34 a.m. 

78

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. 


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. 



contributes to three of our community outcomes: 








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 







Project 

Amberley pipe upgrade $474,000 



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 


$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. 



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. 



end of the Sewerage activity. 

79


Activity 1: Sewerage 

Overview 

The Sewerage activity includes the various functions of the 

seven sewerage schemes in the District. 


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 


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. 

80



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. 


• 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 


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 


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. 


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. 

81





2. A place that demonstrates environmental responsibility 


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 


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. 



82


Sewerage - Group Activity Financial Summary 





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 


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 



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 


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 



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 


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 


83



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. 


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. 


The Roads and Footpaths activity described in this section, 

primarily contributes to two of our community outcomes: 




emergency services and systems and resources are 

available to meet civil defence emergencies 

• Risks to public health are identified and appropriately 

managed 


Project 

Bridge maintenance 

and repairs 

Sealed Road 

resurfacing 

Minor improvement 

programme 

Pavement 

rehabilitation 

programme 

Traffic services 

renewals - street 

lighting 


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 


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. 




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. 



end of the Roads and Footpaths activity. 


• 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 

84

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. 


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. 


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. 


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 

85


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 


• Council’s contribution is 100% District Rate for operations, 

roads and bridges known as the ‘Roading Rate’ 


• 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 


• Township maintenance 100% local amenity rate on ward or 

community rating area 


• Township maintenance 100% local amenity rate on ward or 

community rating area 

86


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. 


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. 


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. 

87






Goals 


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 


Contract out bridge 

maintenance and 

monitor performance 

accordingly 


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 


Smooth travel exposure – Hurunui’s roading 

network is 97%. The national average is 86% 

(a higher value is better) 



Percentage rough roads in the Hurunui is 

4.2%. The national average is 9.1% (a lower 

value is better) 



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 

√ √ √ √ 

√ √ √ √ 

√ √ √ √ 

√ 

√ 

√ √ √ √ 



Happy Valley Road, Emergency Preventative Maintenance 

88

Roading and Footpaths - Group Activity Financial Summary 





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 





Internal Interest Paid 2,779 2,162 1,953 1,729 1,489 1,231 955 659 341 0 0 


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 


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 



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 


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 


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. 

89



Overview 

Stormwater and Drainage covers the following activity described 

below: 

Activity 1: 

Our Aim 


To prevent or minimise adverse effects of surface flooding and 

stormwater discharge. 


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. 



contributes to two of our community outcomes: 







Project 

Construct new drains for 

Eastern Drain and Dry 

Gully, Amberley, direct to 

the lagoons 

Capital works on existing 



2012/13 2013/14 2014/15 

$294,000 $69,042 


$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. 



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. 



end of the Stormwater and Drainage activity. 








90

Activity 1: Stormwater and Drainage 

Overview 

The Stormwater and Drainage activity includes the various 

functions of land drainage schemes and flood protection. 


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. 



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 


• 100% Targeted Rate based on the area benefiting 

• Engineer for stormwater catchment and management 

plans funded through the General Rate 


• 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 


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 

91



Land drainage schemes: 

• Ashworths drains 

• Leithfield Outfall drain 

• Newcombes Road drains 

• Jed River drains 


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. 


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. 





Goals 

Minimise the risk of 

flooding 


Goals 

Maintain all drainage 

systems in accordance with 

resource consent conditions 

Employ an engineer to 

manage the stormwater and 

drainage portfolio 


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% 

√ 



92

Stormwater and Drainage - Group Activity Financial Summary 





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 



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 


Employee Benefits 0 0 103,130 106,270 109,640 113,250 116,470 119,760 123,550 127,710 131,890 




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 



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 


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 


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 



93


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. 


Project 


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 


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. 


The Community Services and Facilities described in this section, 

primarily contribute to two of our community outcomes: 




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 


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. 




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. 

94



Community Services and Facilities - Group Activity Financial Summary 





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 





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 



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 


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) 



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 


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 


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 

95


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 


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. 

96


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. 


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. 


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. 


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. 


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 

97


Funding 

Library 


• 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. 


• 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. 



• The Youth Programme is run via the Library service and 

funded through the Hanmer Springs Thermal Reserve 

surplus 


Programme 




• Uniform Annual General Charge 


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 


• Vehicle 

• Programme tools (computers, cameras, projector, 

games etc) 


Programme 

• Not applicable 




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 

98



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. 


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. 


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. 


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. 


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. 


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. 


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. 


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. 


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. 

99





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 


Goals 

Run a youth programme that 

meets the needs of our local 

youth* 

Run the Community 

Development Programme 

with specific outcomes 



Reward and recognise 

outstanding contribution 

from people in the District 


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. 



100


Community Services - Activity Financial Summary 





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 






Depreciation 118,136 109,842 109,842 112,344 112,444 112,444 114,121 114,121 114,121 116,611 116,611 


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) 



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 


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 



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 


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 


101


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) 


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 


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. 


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 

102


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. 


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. 


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. 


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. 

103



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. 


growth, then that portion of the expenditure that 

relates to growth may be funded from future lots via 

Development Contributions and loans. 



• 100% Local Amenity Rate. 


• 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. 


Operational and Capital Costs: 

• 100% local amenity rate. 


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 


• 14 public toilet blocks 

• 16 district public toilets 


• 2 public swimming pools (excluding Hanmer Springs 

Thermal Pools and Spa) 




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. 


The maintenance of these facilities, including cleaning and 

replenishing of supplies is contracted out. 


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). 


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. 

104



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. 


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. 


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. 


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. 

105





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 


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 




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 

√ 

√ 

√ 

√ √ √ √ 

√ 

√ 



106


Property - Activity Financial Summary 





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 


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 






Depreciation 170,037 222,270 224,071 280,936 305,541 308,155 336,171 337,952 339,809 357,573 359,604 


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) 



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 


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 



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 


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 


107


Activity 3: Reserves 

Overview 

The Reserves activity includes the Council’s: 

• Parks and Reserves 

• Cemeteries 


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

Long Term Community Plan 2012-2022 - Hurunui District Council

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