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. 

2

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 

3


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 

5


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 

6


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 

7


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. 

8

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% 


2% 

Reserves 

2% 

Property 

1% 

Community Services 

1% 


Drainage 

3% 


34% 

11


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 


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 


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 


• 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 


and Facilities ü ü 

Environment and Safety ü ü 


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 


• 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 



putting in the sub-main 


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. 




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 




from future users via Development Contributions and 


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



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: 







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 


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 



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 






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 



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 


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) 


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 




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 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 

several Reserve and Ward Committees which are delegated 

responsibilities to ensure reserves are maintained and useful 

for people to enjoy. The committees’ memberships include 

volunteers and Councillors. The work of all of these groups is 

sincerely appreciated by Council. 

In 2011, The Council approved a smokefree strategy in 

conjunction with Smokefree Canterbury. Our starting point is 

to encourage no smoking around children’s playgrounds. 

Cemeteries 

There are 9 open cemetery reserves throughout our district 

located at Balcairn, Cheviot (Homeview), Culverden, Glenmark, 

Hanmer Springs, Horsley Down, Rotherham, Waiau, and Waikari. 

We also own the Jed Cemetery Reserve in Gore Bay, Cheviot, 

which is open only to ashes interments of family members 

previously buried there. 

Each of the cemeteries has more than enough vacant plots to 

last for at least the next 10 years. Of the 9 cemeteries, Balcairn 

Cemetery is used the most frequently with approximately 22 

plots sold on average each year. In contrast, our least frequently 

used cemetery is Rotherham, with an average of 2 plots sold 

each year. 

Whereas we own the cemetery reserves, we do not employ 

staff to dig graves or maintain the cemetery grounds. Instead, 

we contract the services of sextons, gardeners and trades 

people. Cemetery plots are sold by Council staff. Anyone is 

able to purchase a plot or to be buried in the cemeteries – they 

are not only for Hurunui district residents. 



We have had a comprehensive District Reserve Management 

Plan since 2008. The Plan is being reviewed to update the 

Governance and Management responsibilities and to identify 

future development plans for each of the reserves. The current 

plan identifies capital projects for some of the reserves but 

these are to be removed. Instead capital projects will be 

identified through the Long Term Plan process. Each ward is 

being allocated money form the Hanmer Springs Thermal Pools 

and Spa surplus, known as the ‘contestable fund’ to pay for the 

capital projects. 

The Queen Mary Hospital Historic Reserve Management Plan is 

a new plan confirmed in late 2011 and approved by the Minister 

of Conservation. That plan sets out the overall management goal 

for the reserve and is supported by policies in the plan. It can be 

found on our website: www.hurunui.govt.nz and use the search 

to find the Queen Mary Hospital Historic Reserve Management 

Plan. The plan includes a landscape plan for the reserve and 

conservation management plans for each of the three historic 

buildings on the site. We will be seeking expressions of interest 

for the use of the buildings in 2012. Before we confirm or 

agree to any proposals for the use of these buildings, public 

consultation will be undertaken first to make sure any proposal 

has the support of the wider community. 

we will be progressing our Smokefree strategy to include all 

Council awned reserves. The approach we are taking is to 

encourage non smoking in public outdoor areas, but not to 

regulate. 

Cemeteries 

There is a budget provision to purchase land beside the Balcairn 

cemetery when it becomes available to future proof our most 

popular cemetery. $120,000 has been put aside for 2013/14 to 

do this although there is no immediate concern that we will run 

out of space for some years. 

Most of our cemeteries have many years remaining before they 

will run out of space. It is predicted that the demand for plots 

within the district’s cemeteries will increase gradually over 

the next 50 years, due to the increasing age of the population 

within the district. There is generally an increasing trend away 

from cemetery burials as people are moving towards cremation 

108


services, but this has not impacted on the sales of plots within 

the Hurunui. 

Apart from the purchase of land, there are no major plans for 

any of the cemeteries other than to keep them maintained to a 

good standard and make sure they look tidy and attractive. 

Funding 



• Amenity Reserves are 100% local amenity rates on 

the ward or community rating in which the reserve is 

located. 

• District Reserves are 100% District Rate and/or 

Hanmer Springs Thermal Reserves surpluses. 

• Camping Grounds are 100% user charge with any 

shortfall met by a local amenity rate in the ward or 

community rating area. Four of the ten Camping 

grounds are managed by a lessee, Council receives a 

portion of the annual turnover for these camps as a 

rental. 

• If long term funding is required, it can be catered for 

under the Council’s Internal Financing Policy. The 

monies needed to meet the loan costs under the Internal 

Financing Policy should be treated as operational 

expenditure. 


• District Reserves are funded100% by the District Rate 

and / or the Hanmer Springs Thermal Reserve surpluses. 

• Amenity Reserves are funded100% by the local amenity 

rate on the ward or community rating area within 

which the reserve in question is located. 

• If any of the capital expenditure caters for future 


relates to growth maybe funded from future lots or 

units of demand via development contributions. 

• Contestable Funding is provided each year from the 

surpluses from the Hanmer Springs Thermal Reserve to 

each Ward or Rating area that may be used for meeting 

development costs on amenity reserves. 

Cemeteries 


• Interment costs and purchase of plots are charged as 

user charges. Any shortfall in operational costs will 

be charged as a District Rate and/or Hanmer Springs 

Thermal Reserves surpluses 



from the Hanmer Springs Thermal Reserve, the amount 

oft he contribution is subtracted fromt he District Rate, 

otherwise the total is met via the District Rate. 



• 160 parks and reserves 

Cemeteries 

• 9 open cemetery reserves at Balcairn, Cheviot 

(Homeview), Culverden, Glenmark, Hanmer Springs, 

Horsley Down, Rotherham, Waiau, and Waikari. 

• Jed Cemetery Reserve in Gore Bay. 

Maintenances and Operating Implications 


We act as an administering body for a large number of parks 

and reserves in the District. The parks and reserves are either 

owned by Council or vested in Council to administer and 

maintain. Those that are vested are owned by the Crown. We 

have given our Reserve Committees delegations to run the day 

to day maintenance and development of most of the reserves. 

Lawn mowing and heavy maintenance is largely undertaken by 

contractors in the main, but we do employ some gardeners. 

Cemeteries 

General maintenance and upkeep such as grass mowing, 

weed spraying, rubbish removal, fencing, grave topping, digging 

and landscaping, is undertaken by contractors. Generally, all 

cemeteries within the district are well maintained. 

Resident satisfaction surveys have confirmed consistent high 

levels of satisfaction with our cemeteries. 



It is assumed that the district’s communities will continue to 

support the preservation of the district’s reserves and parks 

through the Reserve Committees currently in place. It is also 

assumed that the historic buildings on the Queen Mary Hospital 

Historic Reserve will be leased to external parties for commercial 

use. If this does not occur, we will continue to keep the buildings 

in good condition but we do not plan to do any upgrades or 

developments funded by the ratepayer. 

109


Cemeteries 

The biggest risk to our reserves is natural weather and 

environmental conditions. In our recent past, the floods of 2008 

caused severe damage in some of the reserves and dramatically 

altered the landscape of some of them. We have not included 

additional funding in this long term plan to restore reserves in 

the event they are severely damaged in future. 

Plans for our cemeteries are based on the assumption that our 

nine cemeteries will continue to meet the needs of our aging (and 

at times, growing) population for many years to come. There is 

always a risk that a natural disaster could severely damage any 

of the cemeteries, such as an earthquake or flooding. This has 

not been the case to date, but if it did, alternative sites (or site) 

may need to be identified. 



• A desirable and safe place to live 

• A place where our traditional rural values and heritage make Hurunui unique 

Goals 

To provide parks and reserves 

for people to enjoy 

Our cemeteries meet the 

needs of our communities 


Goals 

Involve local communities 

in the planning and 

development of their 

reserves 

Manage the Queen Mary 

Historic Hospital Reserve in 

a manner consistent with its 

Management Plan 




Reserve and / or Ward 

Committees spend their 

annual budgets on projects 

identified for that year 

Lease the historic buildings 

on the Reserve accordance 

with the Plan or keep it 

in good condition, if no 

suitable proposals are 

found 

No less than 90% of 

residents who have visited 

a cemetery are satisfied 

The allocated funding 

has not yet been spent, 

but committees have the 

delegation to spend on 

identified reserve projects 

The buildings are currently 

mothballed 

93% of those who had 

visited a District cemetery 

were satisfied with the 

standard 

√ √ √ √ 

√ 

√ 

√ 



Community volunteers working at the Rutherford Reserve Playground 

110


Reserves - Activity Financial Summary 






Other Income 177,002 183,520 192,403 199,929 206,168 212,449 218,052 223,776 230,371 237,609 244,882 






Direct Operating Expenditure 718,671 856,405 853,710 844,947 860,465 917,195 947,768 966,565 992,754 1,027,666 1,054,996 

Internal Interest Paid 872 743 2,523 2,335 2,121 34,349 34,010 34,437 33,351 55,675 56,383 


Depreciation 62,801 65,839 65,839 66,828 66,828 66,828 67,166 67,166 67,166 68,241 68,241 


Operating Surplus (Deficit) (835,970) (869,395) (866,003) (849,095) (861,286) (944,944) (965,890) (981,299) (1,010,165) (1,057,304) (1,098,865) 



District Reserves 71,646 71,646 74,455 116,933 1,230,277 82,443 85,581 89,049 92,846 97,087 101,551 

Cemeteries 5,265 5,000 129,900 5,369 5,554 5,754 5,973 6,215 6,480 6,776 7,087 

Amberley Reserves 18,172 20,000 83,136 10,738 11,107 11,507 23,890 37,287 277,711 13,551 14,174 

Amuri Reserves 8,424 8,500 8,833 9,127 9,441 15,534 10,153 10,565 11,015 11,518 19,135 

Hanmer Springs Reserves 12,324 110,000 10,392 10,738 1,088,486 11,507 131,395 12,429 12,959 13,551 14,174 

Total Capital Expenditure 115,831 260,146 306,716 152,906 2,344,865 126,745 256,992 155,544 401,011 142,483 156,121 


Operating Deficit 835,970 869,395 866,003 849,095 861,286 944,944 965,890 981,299 1,010,165 1,057,304 1,098,865 

Capital Expenditure 115,831 260,146 306,716 152,906 2,344,865 126,745 256,992 155,544 401,011 142,483 156,121 

Transfer to General Council Reserves 0 27 27 28 28 28 29 29 29 30 30 


Repayment of Internal Loans from Operating Income 0 34,844 38,139 1,015 4,257 44,318 48,128 51,541 293,877 33,079 38,134 

1,223,575 1,316,835 1,393,634 1,189,785 3,407,246 1,294,401 1,451,766 1,379,427 1,900,319 1,411,116 1,458,206 

Funded by 

Transfer from Hanmer Springs Thermal Reserve 797,386 961,569 984,438 972,980 992,462 1,057,462 1,083,103 1,105,737 1,138,585 1,167,392 1,195,536 



Transfer from Special Funds 71,646 140,646 83,807 86,598 1,738,963 92,799 203,837 100,235 342,786 109,283 114,308 

Capital Expenditure funded through Internal Loans 284,588 143,781 129,649 58,011 603,439 71,558 91,688 100,074 345,303 59,424 73,035 

1,223,575 1,316,835 1,393,634 1,189,785 3,407,246 1,294,401 1,451,766 1,379,427 1,900,319 1,411,116 1,458,206 


111



Overview 

Environment and Safety covers the following 4 activity areas 

described below: 

Activity 1: 

Emergency Services (civil defence and rural fire) 

Activity 2: Resource Management (administering the District 

Plan, resource consents, township planning, policy and bylaw 

development) 

Activity 3: Compliance and Regulatory Functions (building 

controls, public health and liquor licencing, and animal control) 

Activity 4: Waste Minimisation (refuse, recycling, transfer 

stations, and litter bin collection) 

Our Aim 

To protect people, animals, and the environment from natural 

disaster, disease and hazards. 


The Council is involved with the activities within the Environment 

and Safety group to provide for the wellbeing of its people. All 

of the activities within this group are to do with ensuring our 

communities, including our environment, are protected from 

certain harm to preserve what we have and leave it in good 

condition for future generations. We want to help make our 

District a desirable place through managing adverse effects of 

activities and conditions through our policies, bylaws and plans. 

These activities also contribute to the long term achievement of 

our community outcomes. 



primarily contribute to two 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 

New generator for the 

Amberley Office used as 

an emergency operation 

centre in a civil defence 

emergency 

Tsunami remote trigger to 

activate warning systems in 

place in beach settlements 

Tanker compliance survey $99,000 


2012/13 2013/14 2014/15 2015+ 

$50,000 

$25,980 

Purchase and install digital $30,000 $32,214 $33,321 

radios to replace defunct 

analogue radio system 

Tanker replacements $15,000 $99,963 

Waiau fire depot $93,528 

Waiau smoke chaser $40,000 

Engineer assessments on 

earthquake prone buildings 


$23,000 $23,720 $24,442 

The main intention of this group of activities is to mitigate 

negative effects on the District and its environment. In the 

main, our actual activities do not cause any significant negative 

effects. The negative effects that this group of activities is aimed 

at negating or minimising includes: 

• Unclean and dangerous food handling can have 

significant detrimental effects on the public through 

sickness, therefore it is important we follow up 

complaints involving food premises promptly to prevent 

further spread of the disease. Similarly with water, as 

infection and illness can spread quickly via drinking 

water in particular. 

• We have a key role to reduce negative effects caused 

through sickness and alcohol abuse through the 

regulation of alcohol outlets (such as restaurants and 

retailers) and limiting the number of hours alcohol is 

for sale. 

• Unruly dogs and animals pose dangerous risks to people 

and stock. There have been several cases of extreme dog 

attacks in recent years within New Zealand which has 

112


raised people’s awareness of the potentially dangerous 

nature of dogs in particular and as a result, there is less 

tolerance to roaming animals or dog attacks. This has 

caused a demand for a higher level of service from us 

to respond quickly to complaints and to take measures 

to ensure compliance. 

• Standards in the District Plan and legislative acts, such 

as the Resource Management Act attempt to minimise 

potential negative impacts on the environment. 

• Unruly fires have obvious negative impacts and can lead 

to loss of life and property. Fire controls and having 

trained fire teams in the District are essential. 

• Waste and recycling activities have the potential 

to cause significant negative effects to people and 

the environment and we are serious about our 

duty to reduce and minimise those possible effects. 

Contractors carrying rubbish and recycling are required 

to have vehicles which meet stringent conditions to 

avoid contamination. Landfills (operational and nonoperational) 

are monitored to ensure any leachates are 

within acceptable levels. Health and safety standards 

are essential and a requirement of contracts pertaining 

to the collection of recycling and rubbish, and the 

management of the transfer stations. 




to continue to do so. Many of the activities within this group 

will be required in an emergency, depending on the problem. 

Public health concerns are often of paramount importance in 

certain disasters particularly when there issues with water and 

sewerage disposal. In a civil defence situation, we will activate 

our emergency operation centre and manage the response 

and recovery with other agencies required (such as police, fire 

and ambulance). Following an earthquake, building services are 

necessary to check the safety of buildings. The fire service is an 

essential service in most situations, as well as in the case of a 

fire emergency. 


A financial summary for this group of activities is shown on the 

next page. 

113


Environment and Safety - Group Activity Financial Summary 





District Wide Rates 1,920,698 2,144,156 2,247,608 2,325,111 2,352,458 2,444,188 2,516,215 2,588,731 2,679,636 2,766,418 2,859,066 


Other Income 1,274,743 1,290,300 1,330,686 1,371,202 1,414,685 1,461,265 1,502,812 1,545,263 1,594,166 1,647,842 1,701,777 




Employee Benefits 1,217,398 1,294,409 1,334,924 1,375,568 1,419,190 1,465,918 1,507,598 1,550,184 1,599,242 1,653,090 1,707,196 




Depreciation 107,506 107,238 111,108 113,914 115,060 116,287 118,205 119,323 120,612 123,458 124,880 


Operating Surplus (Deficit) (48,471) (24,831) (19,551) (37,292) (10,906) (21,628) 7,025 (14,900) 14,468 (9,246) 23,420 



Emergency Services 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0 

Resource Management & Planning 25,695 0 25,980 26,845 0 28,768 29,863 0 32,398 33,878 0 

Compliance & Regulatory Functions 0 0 51,960 26,845 0 57,535 29,863 0 64,795 33,878 0 

Waste Management 0 0 0 0 0 0 0 0 0 0 0 

Total Capital Expenditure 133,101 234,000 197,448 112,749 133,284 189,866 197,093 0 97,193 101,633 0 


Operating Deficit 48,471 24,831 19,551 37,292 10,906 21,628 0 14,900 0 9,246 0 

Capital Expenditure 133,101 234,000 197,448 112,749 133,284 189,866 197,093 0 97,193 101,633 0 


Transfer to Special Funds 0 22,000 22,689 23,379 24,121 24,915 25,623 26,347 27,181 28,096 29,016 

Repayment of Internal Loans from Operating Income 6,554 15,372 0 0 0 0 (5,787) (1,726) 877 4,802 8,912 

295,632 403,441 350,796 287,334 283,370 352,696 335,134 158,844 245,863 267,235 162,807 

Funded by 

Operating Surplus 0 0 0 0 0 0 7,025 0 14,468 0 23,420 


General Council Reserves 149,949 234,000 197,448 112,749 133,284 189,866 197,093 0 97,193 101,633 0 

Transfer from Special Funds 35,435 45,000 23,344 47,069 24,036 37,373 12,812 39,521 13,591 42,144 14,508 

Capital Expenditure funded through Internal Loans 0 17,203 18,895 13,602 10,990 9,171 0 0 0 0 0 

292,890 403,441 350,796 287,334 283,370 352,696 335,134 158,844 245,863 267,235 162,807 


114

Activity 1: Emergency Services 


Overview 

The Emergency Services activity includes the Council’s: 

• Civil Defence 

• Rural Fire 


Civil Defence 

In the Hurunui District, there are now nine Sector Posts 

(Cheviot, Culverden, Hawarden, Waiau, Mt Lyford, Hanmer 

Springs, Motunau Beach, Glenmark and Amberley), and a District 

Headquarters at Amberley Office. Over 70 local volunteers from 

diverse backgrounds are involved in these centres. Volunteers 

are generally local people who receive training so they know 

what to do should a disaster or emergency situation arise. 

To strengthen our ability to manage in a disaster, key 

relationships have been established with our neighbouring 

District Councils (Waimakariri and Kaikoura), and those within 

the greater Canterbury Region, as well as the Ministry of Civil 

Defence Emergency Management (MCDEM), critical emergency 

service partners and support agencies from both Government 

and non-Government organisations (such as Red Cross, St 

Johns Ambulance, Ministry of Social Development, Canterbury 

District Health Board). 

The Hurunui District has 106 kilometres of coastline. With 

heightened public awareness about the risk of tsunamis 

worldwide, a locally activated warning system is in place 

at Amberley Beach and Leithfield Beach. No other beach 

Rural Fire 

We maintain a District Fire Plan which prescribes how we will 

meet our fire management responsibilities. Our Emergency 

Management Officer is appointed as the Principal Rural Fire 

Officer who manages rural fire on behalf of the Council. We 

have five Volunteer Rural Fire Force parties in the District 

based in Waikari, Waiau, Conway Flat, Motunau Beach and Greta 

Valley. Collectively these fire parties provide approximately 

80 volunteers including 10 Rural Fire Officers and a Deputy 

Principal Rural Fire Officer. Each rural fire party has a minimum 

of one fire tanker and a portable pump. We provide tankers 

to the New Zealand Fire Service brigades located in Amberley, 

Waipara, Hanmer Springs and Cheviot. We are responsible for 

providing the public with information and warnings regarding fire 

hazard conditions. This includes placing fire bans during periods 

of extreme fire risk, and bylaws to carry out fire prevention and 

control measures. 


Civil Defence 

Severe flooding in 2008 caused widespread damage within 

the Hurunui District and tested our civil defence capabilities. 

This confirmed that further Sector Posts and more volunteers 

within the District would be beneficial. We intend to continue 

increasing our capacity to deal more effectively with a civil 

defence emergency when the time arrives. Subject to voluntary 

community participation, we will seek to establish additional 

Sector Posts in Leithfield, Waipara, Motunau Beach, Scargill- 

Omihi area, Gore Bay, Conway Flat, Rotherham, and Waikari. 

Funding has been available to fully automate the warning systems 

at Amberley Beach and Leithfield Beach so that they do not 

need to be manually activated. 

We will continue to maintain an organisational structure of 

suitably trained and competent people, including volunteers, 

to manage civil defence emergencies. Recruitment drives for 

civil defence volunteers are essential to maintain the numbers 

of personnel needed in a civil defence emergency. Training is 

delivered locally by our Emergency Management Officer and 

regionally through the Canterbury CDEM Group for staff and 

community volunteers. 

Rural Fire 

General upgrading of all rural fire equipment and depots will 

continue to ensure that all Volunteer Rural Fire Force parties 

have the physical resources needed to fight fires. Investment in 

regional fire retardant depots will enhance our fire response 

capability. Investment in national research projects will educate 

people in the District on passive measures to help reduce the 

incidence of wild fires. 

Volunteers are crucial to this activity and recruitment drives 

must be on-going to sustain required numbers for each 

Volunteer Rural Fire Force established in our district. Numbers 

of volunteers have been dwindling over the past years which is 

of real concern. Full training is provided to volunteers to ensure 

they are able to carry out their duties safely. 

We will continue to promote, encourage and carry out 

appropriate fire prevention and control measures in the 

interests of public safety. This includes maintaining a written 

Fire Plan, observing and assessing fire weather conditions and 

other fire hazard conditions, and removing or reducing hazards 

which may trigger unwanted vegetation wild fires. 

Also being considered is a wider fire fighting agency to cover 

the Canterbury region. This is in its early considerations with 

115


the intended outcome to enhance the region’s ability to share 

resources and work together rather than each district have 

its own fire teams. We will do our bit to ensure that careful 

consideration is given to how this will work in the field and 

whether we will be better off under this system. We will also 

be concerned that the proposed model can be operated at an 

affordable price. 

Funding 

Civil Defence 


• 100% District Rate after taking into account the small 

central government contribution via an annual grant 


• Funded over the life of the asset and met through the 

District Rate 

Rural Fire 


• Fighting fires – the property owner pays. In some 

instances there may be a portion of the fire fighting 

costs that may not be able to be recovered. Such costs 

will need to be recovered in line with ‘other costs’. 

• Other costs – after taking government grants into 

account, 80% from ratepayers in the Rural Fire 

Authority area and 20% from ratepayers outside the 

Rural Fire Authority area. Both will be collected by way 

of a Targeted Rate known as the Rural Fire Rate. 


• Funded over the life of the asset and met through the 

targeted rate. 

Council Assets 

Civil Defence 


Rural Fire 

• Fire equipment and depots throughout the District 


Civil Defence 

We will continue to manage and operate our civil defence 

emergency management functions from our Emergency 

Operations Centre at Amberley Office. 

Rural Fire 

We intend to continue to manage and operate our fire response 

functions as currently in place while a possible Canterbury wide 

fire fighting agency is considered. 


Civil Defence 

Planning and preparing for an emergency situation that may not 

happen requires making assumptions. Civil Defence Emergency 

Management planning is based on the assumption that a serious 

disaster will occur, such as an earthquake. The Hurunui District 

contains several fault lines that are said to be overdue to move. A 

significant part of the Hurunui District is coastal, and therefore 

at risk from tsunamis. Other major risks include flooding, wild 

fires and the impacts of adverse weather conditions. Good 

planning and preparation is crucial, therefore we have taken our 

role in civil defence emergency management very seriously. 

Rural Fire 

Our District is prone to extreme drought conditions during 

the summer months and it is then that callouts for fire services 

are particularly high. It is assumed that this trend will continue 

and that our fire services will continue to be frequently called 

out. Of significant risk to our rural community is the constant 

need to recruit, train and retain volunteers to be available when 

there are fires. A major risk is the issue of health and safety. 

Obviously, fighting fires is a dangerous activity and it is essential 

that volunteers are fully trained to prevent injury or loss of life 

to themselves and others. Fire plans and appropriate resources 

are critical to mitigate these risks. 


Rural Fire 

Districts usually build up their fire fighting resources to meet 

normal demands, but from time to time, local resources are 

inadequate. There is a general commitment to assist others 

when fighting larger fires. We bring in fire crews from outside 

the District to fight large fires when necessary or use private 

sector resources. 

116






Goals 

To be prepared for 

emergency situations which 

have adverse implications for 



Goals 

Ensure there are sufficient 

resources 


Educate the public on how 

to prepare themselves for 

an emergency 

Staff and volunteers are 

trained to deal with an 

emergency 

A new emergency planning 

guide was delivered to every 

house in the District 

Staff training was delayed 

due to the earthquakes 

in Canterbury, but many 

received on the job practice. 

Fire crews received training 

every month. 

√ √ √ √ 

√ √ √ √ 



117


Emergency Services - Activity Financial Summary 





General Rates 159,516 156,046 160,658 166,125 170,351 175,760 180,583 185,498 192,131 197,468 203,757 


Other Income 2,422 0 0 0 0 0 0 0 0 0 0 





Internal Interest Paid 837 6,974 8,221 9,591 10,577 11,374 12,039 12,459 12,584 12,520 12,172 


Depreciation 51,178 56,978 60,848 62,500 63,646 64,873 66,057 67,175 68,464 70,177 71,599 


Operating Surplus (Deficit) (74,813) (17,203) (18,895) (13,602) (10,990) (9,171) (5,787) (1,726) 877 4,802 8,912 



Emergency Services 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0 

Total Capital Expenditure 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0 


Operating Deficit 74,813 17,203 18,895 13,602 10,990 9,171 5,787 1,726 0 0 0 

Capital Expenditure 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0 


Repayment of Internal Loans from Operating Income 578 0 0 0 0 0 (5,787) (1,726) 877 4,802 8,912 

233,975 308,181 199,251 135,161 207,920 177,607 203,424 67,175 69,341 108,857 80,510 

Funded by 

Operating Surplus 0 0 0 0 0 0 0 0 877 4,802 8,912 


General Council Reserves 107,406 234,000 119,508 59,059 133,284 103,563 137,368 0 0 33,878 0 

Capital Expenditure funded through Internal Loans 0 17,203 18,895 13,602 10,990 9,171 0 0 0 0 0 

158,584 308,181 199,251 135,161 207,920 177,607 203,424 67,175 69,341 108,857 80,510 


118


Activity 2: Resource Management 

Overview 


The Resource Management activity includes the various 

functions of Resource Management, such as administering the 

District Plan, resource consents, township planning, policy and 

bylaw development. 


Resource Management 

Our District Plan has been in place since 2003. This plan 

identifies key resource management issues for the District and 

our objectives, policies and methods for addressing each of those 

issues. The District Plan is a legal document which affects the dayto-day 

lives of everybody in the Hurunui District. The Plan is a 

requirement of the Resource Management Act 1991 (RMA). The 

purpose of the RMA is the sustainable management of natural 

and physical resources while avoiding, remedying or mitigating 

adverse environmental effects and providing for the wellbeing of 

communities. The Plan’s framework provides objectives, policies 

and methods to manage the use and development of natural and 

physical resources to meet the purpose of the RMA. The current 

District Plan has not been frozen in time since 2003. We have 

processed 31changes to parts of the Plan then, responding to 

particular issues such as frost control fans, quarrying and mining, 

urban and rural subdivision standards. We are also required to 

review the Plan every 10 years. 

To achieve the objectives and policies set out in the District Plan, 

we set rules and standards which any developments must meet. 

We process a number of resource consent applications from 

applicants who want to do things that do not comply with the 

land use provisions of the plan or who want to subdivide their 

property. Two thirds of resource consents processed relate to 

subdivision consents. We grant about 98% of resource consent 

applications without public notification within 20 working days 

of the application been received. The remaining 2% of consents 

require notification for a variety of reasons, including situations 

where potentially affected parties have not given their written 

consents or the proposal sits outside the standard requirements 

of the District Plan. 

We develop bylaws and policies as well as review policy initiatives 

set by other government agencies, and changes to legislation. 

We also respond to plans prepared by other agencies to protect 

the interests of the Hurunui community. We responded to a 

proposed Regional Policy Statement and the proposed Hurunui 

and Waiau River Regional Plan. We also lodged a submission to 

the proposed Biodiversity National Policy Statement and the 

National Policy Statement for Electricity Transmission which 

required us to modify our District Plan within 2 years. 

We are constantly monitoring the state of the district 

environment. The District Plan will be fully reviewed over the 

next 2 years and we aim to have it fully revised by the end of 

2013. It will then be available for public scrutiny before it is 

finalised. The purpose of this review will be to consider the ongoing 

relevance of the resource management issues identified in 

the current District Plan and the measures and standards used 

to manage these. 

We have already identified that intensification of land use 

through the availability of reliable irrigation water will need to 

be considered. We need to consider a policy position in relation 

to new data on fault lines and earthquake risk, liquefaction risk 

zones and possible tsunami hazard areas. In addition a number 

of new national policy statements require amendments to the 

District Plan. For example, electricity transmission. The issues 

will be fully canvassed and consulted on with the community 

prior to any significant amendments to the current District Plan. 

In 2008 we developed a non-regulatory Biodiversity Strategy 

and received a Department of Conservation grant to employ 

a biodiversity field advisor for 3 years which was extended 

for a further 3 years in 2012. We will continue over the next 

three years to partner with other agencies to achieve positive 

biodiversity gains for the District. For example funding from the 

Hurunui Waiau Zone committee is being spent on biodiversity 

projects in the District. The focus is on collaboration and 

voluntary protection. 

Funding 


• Resource Consents are 100% user charges. We may 

waive consent fees if provided for in the councils fee 

waivers, refunds and remissions policy. 

• Private District Plan Change costs are all met by the 

applicant. 

• Council initiated plan changes are funded by the 

General Rate. 

• Extraordinary planning issues will be assessed on a case 

by case basis to determine the appropriate method for 

funding. 

• The balance of any costs will be met by a District Rate 

(known as the planning rate). 

119



• Not applicable. 


We manage the Resource Management/Planning activity from 

our Amberley based office. We have our own policy and planning 

staff, and from time to time, will engage consultants for specialty 

areas or when demand exceeds staffing resources. 


The Resource Management Act and the District Plan are the 

main drivers of this activity. The second phase of the reform 

of the Resource Management Act may impact on the focus of 

the District Plan. The review of the Act includes the section 

that covers matters of national significance that councils have 

to provide for in their planning documents. For example, 

protecting outstanding natural features and landscapes from 

inappropriate subdivision, use and development. The reform 

also looks at the protection of the environment and matters 

such as the effects of climate change. These are areas that we 

have to consider when exercising our powers and functions 

under the Resource Management Act. Any changes to the levels 

of importance placed on these matters will have a flow on effect 

to the significance and importance in the District Plan. 

We will continue to act in an advocacy role on other agency 

plans and actions where these may impact on the future 

prosperity of the District. 


The Department of Conservation and Lane Neave Solicitors 

have funded our Biodiversity programme for the past 2 years. 

This funding expired in April 2011 and it has been confirmed 

that funding for a further 2 years has been approved by the 

Department of Conservation. Our new Biodiversity Field 

Advisor is now working with land owners in the Hurunui. 





Goals 

How we will achieve our Performance Measures Current Situation 11/12 12/13 13/14 14/15 15+ 

To manage our natural 

resources as safely as 

possible and ensure they are 

protected for the future 

Goals 

Have good rules, standards 

and processes in place 

Protect the unique 

biodiversity values of the 


The District Plan review is 

complete 

95% *of all resource 

consents will be processed 

within 20 working days 

Work with land owners 

and communities to 

encourage restoring 

indigenous plants and 

animals 

The 2003 District Plan is 

currently being reviewed 

98% of resource consents 

were processed within 20 

working days 

√ 

√ √ √ √ 

New measure √ √ √ 

*We aim to process all resource consents within 20 working days but 100% is largely unachievable. Some resource consents contain 

complexities that cannot be resolved in 20 days. The nature of the work means that consents do not arrive spread evenly throughout the year 

and having a small number of staff skilled to process these means that we are limited in our capacity to deal with multiple consents at once. 

Therefore, a 95% target still presents challenges to reach. 



120


Resource Management - Activity Financial Summary 





General Rates 721,346 837,737 879,285 908,393 921,972 953,830 982,289 1,011,227 1,046,136 1,081,841 1,118,901 


Other Income 379,045 408,000 420,770 433,582 447,331 462,060 475,198 488,621 504,084 521,057 538,111 






Depreciation 10,900 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 11,500 


Operating Surplus (Deficit) 15,000 0 0 0 0 0 0 0 0 0 0 



Resource Management 0 0 25,980 0 0 28,768 0 0 32,398 0 0 

Subdivision Inspection 25,695 0 0 26,845 0 0 29,863 0 0 33,878 0 

Total Capital Expenditure 25,695 0 25,980 26,845 0 28,768 29,863 0 32,398 33,878 0 


Capital Expenditure 25,695 0 25,980 26,845 0 28,768 29,863 0 32,398 33,878 0 


36,595 11,500 37,480 38,345 11,500 40,268 41,363 11,500 43,898 45,378 11,500 

Funded by 

Operating Surplus 15,000 0 0 0 0 0 0 0 0 0 0 


General Council Reserves 25,695 0 25,980 26,845 0 28,768 29,863 0 32,398 33,878 0 

51,595 11,500 37,480 38,345 11,500 40,268 41,363 11,500 43,898 45,378 11,500 


121


Activity 3: Compliance and Regulatory Functions 

Overview 

The Compliance and Regulatory Functions activity includes the 

Council’s: 

• Building Controls 

• Public Health and Liquor Licencing 

• Animal Control 


adopted in 2010. This new policy changed the way we address 

earthquake prone buildings and we now have an active approach 

to identifying and upgrading EPB’s. We have budgeted $23,000 

for each of the first three years of this plan ($69,000 in total) 

to have independent engineers’ assessments of approximately 

90 identified earthquake prone buildings. This does not cover 

the cost of actual building strengthening work. We consider this 

to be an important piece of work to prevent the tragedies that 

occurred after the 22 February 2011 earthquake following the 

collapse of buildings. 

We process and issue building consents, and inspect buildings 

at several stages of their development to ensure that buildings 

constructed are safe and comply with the New Zealand Building 

Code. We issue between 400 and 650 building consents annually 

for private buildings, public buildings, and businesses. In recent 

years, the number of building consent applications has remained 

consistent but at a low level with around 400 issued in 2010 

and 2011. We expect to see an increase in those numbers in 

coming years due to the effects of the Canterbury earthquakes 

since 2010. 

We also handle complaints made regarding building compliance 

issues and administer the on going safety features of commercial 

buildings though the building warrant of fitness regime. 

Since the earthquakes, we have carried out a number of 

earthquake assessments (available free to any Hurunui resident 

concerned about the safety of their building). A number of 

buildings have consequently been identified as dangerous and/ 

or needing repairs. We contributed to the “operation suburb” 

conducted by the Department of Building and Housing shortly 

after the 22 February 2010 Christchurch Earthquake. 

Recruiting and retaining experienced building staff is an issue 

for us (and the rest of New Zealand) due to the extra-ordinary 

demand of building compliance staff in Christchurch and 

Canterbury in general, for the ongoing assessments and re-build 

of Christchurch since the main earthquakes. 

Our private swimming pools are inspected to check that 

they comply with the ‘Fencing of Swimming Pools Act’. New 

Zealand has a history of accidental drownings and the Fencing 

of Swimming Pools Act is a national initiative to drive down the 

rate of drownings. Unfortunately, we have also had our share of 

tragedy, and we need to make sure that private swimming pools 

are safe and that owners have taken steps to prevent accidental 

drownings in their pools. We audit one third of registered 

private swimming pools annually. 


Building Controls 

In 2011/12 we did a desk top study of earthquake prone 

buildings (EPB’s) as per our Earthquake Prone Building Policy 

We are required to become Building Consent Authorities (BCA) 

or to contract a BCA to carry out building inspection work on 

our behalf. Despite us becoming the third accredited BCA in the 

country in 2007, accreditation has ongoing costs. Our building 

officers have to be qualified and have quality assurance systems 

which are used and maintained. Our systems are externally 

audited every two years to ensure minimum standards are being 

met on an ongoing basis. 

We will continue to inspect private swimming pools once every 

three years as we did encounter a high number of pool safety 

issues requiring attention in previous pool audits. 

Public Health & Liquor Licencing 

Any growth in the district will continue to see an increase in 

liquor license applications and managers’ certificates. Likewise 

with health inspections as food premises and bars develop in 

the area. 

There will be a new environment for liquor and food safety 

throughout the District with the Sale of Liquor Act 1989, the 

Food Act 1981 and the Food Hygiene Regulations 1974 likely to 

be superseded by new legislation in 2012. The implementation 

phases of these new pieces of legislation will require close 

liaison with licensees, managers and food premise operators. 

The new liquor laws will require changes to the current District 

Licensing Agency structure. 

The new food legislation will require food service sector 

premises, e.g. restaurant, hotels, cafes, takeaways and caterers, to 

operate under Food Control Plans which are a risk management 

based approach to food safety. While these are currently 

voluntary, they have been promoted among local premises with 

some now registered and operating under these plans. 

Animal Control 

We operate our dog control activity as per our dog policy and 

bylaw. Both need to be reviewed in 2013. We are investigating 

issuing infringement notices and charging fines to encourage 

responsible behaviour by the few animal owners who do not 

comply with the regulations. 

122


A small addition to the Pound at Balcairn is proposed in 2012. 

A greater focus on educating owners about being responsible 

dog owners is proposed in spring 2012 including an education 

programme on permitted dog exercise areas. 

There are no major plans for the future other than ‘business as 

usual’. 

Funding 



• Building consents including inspections 100% user 

charges. 

• Building advice and complaint investigation funded via 

the District rate. 

• Costs relating to the Building Controls Authority 

accreditation process will be funded by a separate levy 

charged on building consents. 

• Swimming pool inspections - 100% of the costs will be 

recovered from a targeted rate, one rating unit where 

it is located. 

• Swimming pools which remain non-compliant will 

incur an inspection fee for any inspections. 

Public Health 

Operational Costs 

• User charges meet a portion of the cost with the 

shortfall to be met from the District Rate. 

Liquor Licencing 


• Maximum fees as set out in the Sale of Liquor Act with 

any short fall from the District Rate. 



• Dog administration costs are funded by the dog 

registration fee. 

• Stock control costs are met 100% from the District 

Rate. 



• Vehicles to undertake inspections 

Public Health& Liquor Licencing 

• Vehicles to undertake inspections 


• An animal pound in Balcairn 



We intend to continue to undertake the building control activity 

from our office mainly through our staff and with contractors 

when demand exceeds our in-house capabilities. We expect to 

use external contractors during the next year or two depending 

on the work generated as a result of the earthquakes. We have a 

shared services agreement with Waimakairi and Selwyn District 

Councils. 

Public Health & Liquor Licencings 

We use our own staff to undertake environmental health and 

liquor licensing functions. 


This activity is dealt with through a mix of staff and contracted 

services. The contractor investigates complaints, collects animals 

and impounds dogs and stock when necessary at any time of the 

day or night depending on need. Our staff do the administrative 

tasks such as dog registration and collecting fees. 



We are unsure about the rate of growth we will have in the 

District in the coming years, but may experience an increase due 

to the impact of the Christchurch earthquakes. At the time of 

writing this plan, we had not experienced any real growth. If we 

do have a surge of new residents wanting to build, this will have 

an impact on staffing in an already tight market for experienced 

building personnel. We are not alone regarding this issue, as this 

is being felt New Zealand wide. We are working closely with 

our neighbouring Councils to find the best solutions for future 

collaboration. There is the possibility that the building controls 

work be centralised and removed from local government to 

oversee if local solutions cannot be found. 

123


Public Health & Liquor Licencing 

Long term projections for the district indicate that there will 

be growth. Therefore, it is assumed that there will at some 

stage be an increased demand for inspections and licensing. A 

big challenge for us is to find a medium step between enabling 

tourism to flourish (and therefore, enabling outlets to sell alcohol 

at all hours), and ensuring the communities and members of the 

public are not subjected to the effect of bad behaviour through 

alcohol abuse. 




We have been working closely with the Selwyn and Waimakariri 

District Councils to share our building officers and resources to 

manage this area more efficiently. Skilled building officers have 

been in high demand and this is expected to continue for some 

years due to the impact of the Canterbury Earthquakes since 

September 2010. 

Council is assuming business as usual within this activity area. 





Goals 

Buildings are safe for the 

public 

Food and liquor premises are 

compliant with standards 

Dogs and stock do not cause 

a nuisance 


Goals 

Inspect buildings in accord 

with NZ Building Standards 

Inspect food and liquor 

outlets to make sure they 

do not pose any risk to the 

public 

Investigate complaints about 

animals causing danger or 

nuisance 


By 2014/15 all earthquake 

prone buildings have been 

inspected 

80%* of building consents 

are processed within 20 

working days 

100% of licenced food and 

on licence liquor premises 

are inspected annually 

All serious** dog 

complaints are followed up 

within 24 hours 

This is a new measure 

94% of building consents 

were processed within 20 

working days 

√ 

√ √ √ √ 

100% were inspected √ √ √ √ 

This is a new measure √ √ √ √ 

*Due to the demand for building officers, we expect this performance measure to be difficult to achieve. Ideally, we would aim for 100% but 

this is unlikely in the foreseeable future. 

**Serious dog complaints involve dog attacks and/or biting incidents. 



124


Compliance and Regulatory - Activity Financial Summary 






Targeted Rates 23,530 0 0 0 0 0 0 0 0 0 0 

Other Income 699,776 655,300 675,811 696,387 718,471 742,127 763,228 784,787 809,623 836,884 864,275 


Total Operating Revenue 894,561 921,435 971,477 1,005,143 1,007,758 1,053,941 1,084,535 1,115,638 1,155,371 1,191,384 1,231,119 





Depreciation 20,428 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 

Total Operating Expenditure 946,844 944,435 972,133 1,028,832 1,007,674 1,066,398 1,071,723 1,128,812 1,141,781 1,205,432 1,216,611 

Operating Surplus (Deficit) (52,283) (23,000) (656) (23,690) 84 (12,458) 12,812 (13,174) 13,591 (14,048) 14,508 



Building Control 0 0 25,980 26,845 0 28,768 29,863 0 32,398 33,878 0 

Public Health 0 0 25,980 0 0 28,768 0 0 32,398 0 0 

Total Capital Expenditure 0 0 51,960 26,845 0 57,535 29,863 0 64,795 33,878 0 


Operating Deficit 52,283 23,000 656 23,690 0 12,458 0 13,174 0 14,048 0 

Capital Expenditure 0 0 51,960 26,845 0 57,535 29,863 0 64,795 33,878 0 


Transfer to Special Funds 0 22,000 22,689 23,379 24,121 24,915 25,623 26,347 27,181 28,096 29,016 

72,711 65,000 95,304 93,914 44,121 114,908 75,486 59,521 111,976 96,022 49,016 

Funded by 

Operating Surplus 0 0 0 0 84 0 12,812 0 13,591 0 14,508 


General Council Reserves 16,848 0 51,960 26,845 0 57,535 29,863 0 64,795 33,878 0 

Transfer from Special Funds 35,435 45,000 23,344 47,069 24,036 37,373 12,812 39,521 13,591 42,144 14,508 

72,711 65,000 95,304 93,914 44,121 114,908 75,486 59,521 111,976 96,022 49,016 


125


Activity 4: Waste Minimisation 

Overview 

The Waste Minimisation activity includes the various functions 

of waste management, such as refuse, recycling, transfer stations 

and litter bin collection. 


Our current delivery model for waste and recycling services 

has been in place since February 2009 The model came about 

after a major review due to concerns about rising costs and 

unsustainability into the future. We now contract the following 

providers to deliver our refuse and recycling services: 

• Waste Control New Zealand collect domestic and 

commercial waste and commercial recycling in all 

urban areas of the district and domestic waste from 

those rural address on the collection route who pay 

the appropriate rate. Waste Control is also contracted 

to provide domestic recycling collections in Hanmer 

Springs, which includes the pick-up of glass. 

• Waste Control New Zealand transports Council’s 

waste to Kate Valley, green waste to Envirocomp, 

e-waste to E-Scrap and dry waste and glass to Amberley. 

In addition the Cheviot, Culverden and Waiau transfer 

stations are run by Waste Control and they manage the 

Waikari drop off. 

• North Canterbury Community Resources (NCCR) 

collects (excluding Hanmer Springs) and processes the 

domestic kerbside recycling and operates the Amberley 

transfer station. 

• Container Waste backloads glass and dry waste (from 

our transfer stations) from Amberley to Christchurch 

for sorting and processing by New Zealand Recovery. 

We provide a weekly kerbside refuse collection service to 

our urban communities in Amberley, Amberley Beach, Cheviot, 

Culverden, Gore Bay, Greta Valley, Hanmer Springs, Hawarden, 

Leithfield, Leithfield Beach, Motanau Beach, Mt Lyford, Omihi, 

Rotherham, Scargill, Waiau, Waikari and Waipara. Due to the 

large size of the rural areas, it is too costly to run a routine rural 

kerbside collection service. However, the rural households 

which are situated along the collection route may use the 

kerbside collection service by paying the refuse collection rate 

and using the rural collection stickers we provide Other rural 

householders can also do the same as long as they drop their 

refuse at a location agreed with council, pay the appropriate rate 

and use the collection stickers. 

Glass containers are available at all five transfer stations for 

people to drop off glass for recycling at no cost, this is then 

crushed and used in roading. Dry waste from the northern sites 

is brought to Amberley for collection and is then backloaded 

to Christchurch using empty container waste trucks returning 

from Kate Valleyfor processing through NZ Recovery. 

Our five transfer stations are located at Cheviot, Hanmer 

Springs, Culverden, Amberley and Waiau. The Amberley 

Transfer Station is managed by NCCR. Waste Control New 

Zealand operates the Cheviot, Culverden and Waiau transfer 

stations and Waikari drop off and the Hanmer Springs transfer 

station is managed by Council staff. Recycling drop off points are 

also provided in Hanmer Springs and Culverden 

There are six closed landfills which have resource consents 

issued by Canterbury Regional Council. The closed landfills are 

located at Cheviot, Culverden, Hanmer Springs, Waiau, Waikari 

and Waipara. Groundwater levels are tested regularly at these 

landfills to ensure they present no risk to the environment. 

We are a shareholder of Transwaste Canterbury Ltd (TCL) which 

opened a regional landfill at Kate Valley in 2005 along with four 

other neighbouring local authorities who are also shareholders. 

This landfill is located inside the Hurunui district, and we have an 

on-going responsibility and commitment to ensure its operations 

comply at all times with the consent conditions granted by both 

our Council and Canterbury Regional Council. As a minor 

shareholder in TCL, Council receives annual dividends for the 

joint venture. We are expecting to receive $72,000 in dividends 

for the 2012/2013 year. 

We supported Envirocomp to develop a commercial nappy 

composting plant in our district in early 2009 and agreed to a 15 

year lease on a council property. Envirocomp use green waste 

generated through our transfer stations as a bulking agent to 

aid the nappy composting process. This is the first commercial 

nappy composting facility in New Zealand able to compost all 

brands of disposable nappies and offers a credible and efficient 

alternative solution to landfill. 


An on-going challenge to us (and the rest of the world) is how 

to deal with increasing amounts of packaging and waste material. 

We intend to administer our waste and recycling services as 

they are currently, but will continue to look for efficiencies to 

reduce the levels of refuse to landfill. The current contracts for 

our waste and recycling service providers are for 3 years and 

after that time, there is the option, with council approval, to 

extend the contracts for a further two years (3+1+1). After 

completion of the contracts, we will need to determine whether 

to further extend the contracts or re tender. The budget for 

future years is based on the current contracts (with inflation 

adjustments). 

The Kate Valley landfill has a useful life in excess of the 10 year 

planning period of this plan. 

126


In 2012, Council adopted a new Waste Management and 

Minimisation Plan. The purpose of this plan is to: 

• Describe our vision for waste management and 

minimisation, whilst determining long term goals for the 

Hurunui district and providing direction as to how they 

will be achieved. 

• Initiate strategies, objectives, policies and activities to 

achieve these goals and determine how to measure 

progress. 

• Provide details regarding how we will fund the proposed 

activities over the coming six years. 

• Meet our legal requirements regarding waste 

management. 

A new transfer station will be built in Amberley in the 2012/13 

year. This has been planned for several years. A new location 

has taken some time to identify. There are no major plans for 

the other stations at this time. We expect our facilities to be 

able to cope with increased volumes of material. 

Funding 


• Refuse collection costs are met through targeted rates 

for each dwelling or business in each urban area based 

on the cost of collection in that urban area. 

• Rural ratepayers on the route can have their rubbish and 

recycling picked up, providing they pay the appropriate 

rate, the collection point is agreed in advance with 

council and the rural refuse collection stickers are used. 

• Transfer station costs are met through fees set at each 

transfer station. The fees are set to encourage use and 

discourage illegal dumping. Any shortfall in costs is 

met from a District Rate. 

• Litter bin collection costs are all met through a District 

Rate. 


• Any capital expenditure on the transfer stations is 

funded over the life of the asset through a District Rate. 

• Income from the Council’s share of the Government’s 

landfill levy may be used for capital purchases. 


Five transfer stations are located at: 

• Amberley 

• Cheviot 

• Culverden 


• Waiau 


Most of our recycling and refuse services are contracted out 

and we see this as being the most economical and efficient 

method for the conceivable future. 

We own our transfer stations and contract out the running of 

most of them and the cartage of residual waste to the landfill 

and recycling to Christchurch. 


Environmental consultants monitor groundwater bores at the 

district’s closed landfills. 

Although in recent years, the growth in the district has been slow, 

household waste is growing and we expect this to continue. The 

cost of waste disposal is likely to continue to increase unless we 

take proactive action. Therefore it is important that we educate 

consumers about alternative methods of dealing with waste in 

an effort to reduce it and ensure that services are provided 

in the most cost efficient and affordable manner. The price of 

fuel has increased since the collection service contracts were 

last negotiated which will impact on the cost of future contract 

tenders. 

The growth of disposable goods and packaging present us with 

an on-going challenge to ensure we are able to recycle and 

reuse as much waste as possible. Our modest transfer stations 

are expected to cope with these increasing volumes. 

One of our major challenges is to find affordable ways to 

encourage people to minimise or dispose of their waste in the 

most environmentally sustainable way. High waste disposal 

costs lead some people to illegally dump waste but setting 

charges too low means that everyone pays irrespective of their 

individual efforts to reduce waste. Higher standards for landfills 

add to the increasing costs. 

127



The Kate Valley Landfill is situated within the Hurunui district 

but is a joint venture between Canterbury Waste Services 

Limited (which is owned by Transpacific Industries Group (NZ) 

Limited) and five Local authorities in Canterbury, including 

Hurunui District Council. The Council’s collective share is 50% 

with 1.2% of that belonging to the Hurunui District Council. 

The company name is Transwaste Canterbury Ltd. 





Goals 


Goals 


To continue to work to 

reduce the quantities of 

residual waste from the 

district, disposed of to landfill. 

Encourage the community 

to recycle and reduce their 

residual waste 

Residual waste to landfill 

reduces each year 

Recycling levels increase 

each year 

In the 6 months to 

December 2011, 937 tonnes 

of waste went to the landfill 

– we will be looking at 

reducing this on a per capita 

basis over time. 

Recycling in the district 

reached 38.5% of waste in 

the 6 months to December 

2011 – we will be looking for 

increased levels of recycling 

over time 

√ √ √ √ 

√ √ √ √ 



128


Waste Minimisation - Activity Financial Summary 





District Wide Rates 871,071 884,238 911,999 941,838 970,848 1,002,785 1,032,036 1,061,155 1,095,622 1,132,609 1,169,564 


Other Income 193,500 227,000 234,105 241,233 248,883 257,078 264,387 271,855 280,459 289,902 299,390 





Internal Interest Paid 10,639 1,114 0 0 0 0 0 0 0 0 0 


Depreciation 25,000 18,760 18,760 19,914 19,914 19,914 20,648 20,648 20,648 21,781 21,781 


Operating Surplus (Deficit) 63,625 15,372 0 0 0 0 0 0 0 0 0 



Transfer Stations 0 0 0 0 0 0 0 0 0 0 0 

Litter Bin Collection 0 0 0 0 0 0 0 0 0 0 0 

Refuse Collection 0 0 0 0 0 0 0 0 0 0 0 

Total Capital Expenditure 0 0 0 0 0 0 0 0 0 0 0 


Capital Expenditure 0 0 0 0 0 0 0 0 0 0 0 


Repayment of Internal Loans from Operating Income 5,976 15,372 0 0 0 0 0 0 0 0 0 

30,976 34,132 18,760 19,914 19,914 19,914 20,648 20,648 20,648 21,781 21,781 

Funded by 

Operating Surplus 63,625 15,372 0 0 0 0 0 0 0 0 0 

Transfer from Hanmer Springs Thermal Reserve 0 0 0 0 0 0 0 0 0 0 0 


88,625 34,132 18,760 19,914 19,914 19,914 20,648 20,648 20,648 21,781 21,781 


129



Overview 

District Promotion covers the following activity described 

below: 

Activity 1: District Promotion (economic development, tourism 

and events and district promotion) 

Our Aim 

To retain businesses and support their growth and prosperity, 

to attract investment, new businesses, tourists and visitors, and 

promote the Hurunui District to improve the local economy 

and wellbeing of the local community. 


We are involved in economic development and in tourism 

promotion because we recognise that the growth of business 

and visitor industry provides major economic benefits and are 

important for the future growth of the district. Growing existing 

business and attracting investment and new businesses into the 

district brings new job opportunities for residents, encourages 

more people to settle in the district and therefore, increases the 

breadth and depth of the economy. Rural community services 

and facilities are frequently under threat through depopulation; 

however, focusing on sustainable growth should negate this 

effect. We consider our district to be unique and that there are 

opportunities for diversification to encourage employment and 

business growth. 


Any increase in business and tourism in the District may have 

a negative impact on environmental wellbeing as this will result 

in an increase in waste, air and noise pollution, traffic, and 

pressure on water and sewerage schemes. This is more likely 

to be evident in areas like Hanmer Springs, which is our most 

popular tourist town. As far as this can be controlled, this will 

be offset to some extent from the value derived from economic 

development and the tourism industry. With proper planning, 

any growth in business and tourism should be sustainable for 

the foreseeable future. 






extreme emergency, the services in this group would not be 

considered essential. 



end of the District Promotion activity. 


The District Promotion activity described in this section, 

primarily contributes to the following community outcome: 

1. A place with a thriving local economy: 

• We are seen as a good place to do business, to live and 

to visit 


Project 

Develop a new district 

promotion model 

Review the current Targeted 

Tourism Rate 


2012/13 2013/14 2014/15 2015+ 

√ 

√ 

130


Activity 1: District Promotion 

Overview 

The District Promotion activity includes the various functions of 

economic development, tourism events and district promotion. 


Currently, we manage economic development and tourism as 

separate functions, and from time to time we do a small amount 

of what we would call more general promotion of the district. 

We are looking at moving from what we do at present, to 

maximise our returns and focus on a broader promotion of the 

whole district rather than the main emphasis being on tourism, 

as it is now. 

Tourism is a significant sector contributing major economic value 

across the district. Our tourism activity is delivered at present 

under the direction from one of our Council committees called 

the Hurunui Tourism Board. This Board is a Council committee. 

In addition, to four elected members, non-elected members 

are chosen for their business skills and insights relative to the 

tourism industry in Hurunui, as well as their knowledge and 

representation of the district. 

Tourism activity in the Hurunui district and New Zealand has 

been stable. The earthquake activity mainly in Christchurch 

since 2010 has had an impact on international visitor arrivals 

into Canterbury, but it is expected that overall visitor arrivals 

(domestic and international) into Hurunui will continue to 

remain stable. The domestic market greatly increased which 

made up for the reduction in overseas visitors. Domestic visitors 

staying overnight are forecast to make up a significant number of 

all Canterbury visits with most coming from Christchurch. The 

Australian market usually is the most significant international 

visitor market. 

Economic development is delivered through ‘Enterprise 

North Canterbury” (ENC) which is a joint Council controlled 

organisation formed with Waimakariri District Council in 

2002. ENC’s role is to enable and empower others in North 

Canterbury in terms of the economy to do better: to export 

more; to employ more people in well-paid jobs; and to 

contribute to the growth in the wealth of our community. This 

is achieved via a number of programmes. Core funding from the 

Waimakariri and Hurunui District Councils is leveraged with 

contracts from central government, and supported by projectspecific 

funding from local industries. 

Over the past several years, there has been a dramatic change 

in our district’s business landscape with multiple businesses 

having been established in Waipara Valley and Hanmer Springs in 

particular. There was some decline from late 2008 on account 

of the economic downturn and recovery has been slow. ENC 

works in conjunction with our district’s employers by providing 

access to information and assistance to establish, develop, train 

and strengthen local businesses. 

The Council is faced with a number of issues, challenges, and 

opportunities in its district promotion planning, such as: 

• A need to increase the level of spend on the domestic 

market. 

• Ensuring that all money spent on district promotion, 

including tourism and economic development is 

maximised and gains maximum leverage and advantage. 

• With Hanmer Springs being clearly a well-known 

destination in New Zealand, ensuring that other parts 

of the Hurunui District are also well promoted and 

have access to the same resources and opportunities 

that Hanmer Springs does. 

• We are a small district and have proportionally less to 

spend on promotion compared with other districts. 

• Ensuring that any economic growth is true growth 

rather than a redistribution of resources and business 

locations. 

• Overcome, where possible, any inefficiencies and 

duplication that exists between the separate operations 

(and cost centres) of Hanmer Springs Thermal Pools 

and Spa, Hurunui Tourism, and ENC. 

• Making sure that we are getting good value from ENC 

and that results can be quantified. 


We think we can do better than we have been by promoting 

district and business activity generally rather than focusing on 

those involved in tourism. As such, we plan to redesign both 

the way we fund district promotion, including tourism, and 

what our activity might actually look like. Tourism is mostly 

funded through a ‘targeted tourism rate’ against businesses who 

are directly involved in the tourism sector. The issue of who 

benefits from tourism and who should fund it, is a challenging 

issue and we want to develop a better way to do this. 

We want to take a stronger leadership role in the general 

promotion of the district to include all businesses and people 

living here rather than only focusing on tourism. We plan to 

continue with the targeted tourism rate up to the end of the 

2012/13 (and 10 year budget for the meantime), but want to 

invite public views as to what district promotion and a future 

funding model could look like. Through this draft long term plan, 

the first stage of consultation on this subject will be initiated. 

After the plan is finalised, we will start to shape up good ideas 

and may consult with the public again before deciding on the 

best way forward. 

131


After taking into account public views, 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 do not have any detail 

on a possible alternative model at this stage and plan to develop 

this thinking after consultation during the 2012/13 year. 

Along with a new funding model, we also want to explore 

how to govern and lead district promotion. That may involve 

a new board such as a possible ‘Investment and Promotion 

Advisory Board’, or it may be through an enhanced Hurunui 

Tourism Board. We will continue with our current models while 

considering this, until an alternative district promotion model is 

developed. 

While considering our new model, we plan to look closely at 

the role of ENC and what actual benefit is delivered to and 

derived for our district. Although we have continued to budget 

to retain our services with ENC through the life of this Long 

Term Plan, it is an opportune time to ensure that we are getting 

best value from our annual spend. We do not have the answers 

yet, or any alternative models, but this will come as we develop 

our future district promotion model. 

Funding 


• Currently, tourism is funded via a targeted tourism 

rate from ratepayers and businesses who are involved 

directly in the tourism sector. This rate is planned to 

be phased out after 2012/13 and replaced with a new 

funding model yet to be designed. 

• An additional contribution of $45,000 is used toward 

tourism from the Hanmer Springs Thermal Reserve 

surplus. 

• General district promotion when undertaken is funded 

via a District Rate or Targeted Tourism Rate. 

• Council provides an annual grant of $50,000 to Enterprise 

North Canterbury for economic development services. 

This is 100% funded through the General Rate. 


• Currently through the targeted tourism rate as 

described above 

Council Assets 


The Hurunui Tourism Board contracts the delivery of most of 

its services including specialist advice, and some work is done 

in house by a Council Officer dedicated to tourism marketing. 

Economic development is provided by Enterprise North 

Canterbury which is a Council controlled organisation. 


The continuation of the grant made to Enterprise North 

Canterbury is dependent on there being continued returns and 

gains made. Council’s plans regarding economic development 

are based on the assumption that New Zealand’s economy 

will continue to be buoyant (while acknowledging the global 

economic crisis), and that the benefits to the District’s businesses 

are in excess of the costs incurred by the Council. 

Little in the way of growth has occurred within the district over 

the last few years and economic downturn has had a marked 

impact on overseas tourism. It is assumed that growth will 

begin to return, however, not necessarily at the same high rate 

as in earlier years. We have seen that external factors, such as 

natural disasters (earthquake) do have an impact on tourism. 

What we had not necessarily anticipated was that visitor 

numbers continued to be high, but mainly from people within 

the Canterbury area. 

We are making assumptions that the targeted tourism rate 

is still not popular and that those affected will support us in 

seeking an improved funding model. 


Hurunui and Waimakariri District Councils jointly support 

and fund Enterprise North Canterbury (ENC) to help boost 

economic development in North Canterbury. We have 

budgeted $50,000 to contribute for the 2011/12 year. ENC 

work with businesses in both districts, providing business 

support, development and training, and special projects with an 

economic focus. 

• District promotion boards in main townships. 

132




• A place with a thriving local economy 

Goals 

How we will achieve 

our Goals 

Performance 

Measures 


11/12 

12/13 13/14 14/15 15+ 

To increase our visitors 

and population 

Promote the District 

through advertising and 

marketing and encourage 

people to come 

Number of visitor numbers 

who stay overnight will 

not be less than the NZ 

average 

Our population increases 

each census 

Develop a new district 

promotion activity model 

We had a 9.4% growth in 

visitor numbers which was 

better than the national 

average of a 1.6% decrease 

At the last census in 2006 

the district’s population was 

10,476. The 2011 estimate 

is 11,330. 

The Hurunui Tourism Board 

and ENC manage tourism 

and economic development 

and to a small degree, district 

promotion 

√ √ √ √ 

√ √ 

√ 



Hurunui River Mouth, Biodiversity Photo Compitition - Cindy Meyers 

133


District Promotion - Group Activity Financial Summary 





. 89,185 90,392 93,141 95,983 98,846 102,003 104,822 107,701 111,114 114,649 118,301 


Other Income 4,000 5,000 5,157 5,314 5,482 5,663 5,824 5,988 6,178 6,386 6,595 






Depreciation 6,000 7,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 


Operating Surplus (Deficit) (44,226) (45,000) (46,800) (48,672) (50,132) (51,636) (53,185) (54,781) (56,424) (58,117) (59,860) 



Tourism 0 0 0 0 0 0 0 0 0 0 0 

Total Capital Expenditure 0 0 0 0 0 0 0 0 0 0 0 


Operating Deficit 44,226 45,000 46,800 48,672 50,132 51,636 53,185 54,781 56,424 58,117 59,860 


50,226 52,500 50,300 52,172 53,632 55,136 56,685 58,281 59,924 61,617 63,360 

Funded by 



50,226 52,500 50,300 52,172 53,632 55,136 56,685 58,281 59,924 61,617 63,360 


134


Overview 

Hanmer Springs Thermal Pools and Spa covers the following 

activity described below: 

Activity 1: Hanmer Springs Thermal Pools and Spa 

(pools, i-site, spa, and café) 

Our Aim 

To be a nationally and internationally recognised quality visitor 

destination. 


The Hanmer Springs Thermal Pools and Spa (HSTP&S) was 

vested by the Crown in the Council and was gazetted as a 

recreational reserve on 23 November 1990. Council operates 

the HSTP&S under the provisions of the Reserves Act 1977. As 

well as providing facilities for the social and recreational use of 

residents, the HSTP&S makes an important contribution to the 

local economy by attracting regional, national and international 

visitors to the district. The HSTP&S provides a substantial 

revenue stream to the Council and has made an important 

financial contribution toward the funding of other reserves in 

the district. As a result, the pools and spa complex has reduced 

the cost to the ratepayer. Over the past 5 years, that financial 

contribution has amounted to $7.65 million. 


The Hanmer Springs Thermal Pools and Spa described in 

this section, primarily contribute to two of our community 

outcomes: 

1. A place with a thriving local economy: 

• We are seen as a good place to do business, to live and 

to visit 

2. A place where our traditional rural values and heritage 

make Hurunui unique: 

• People have a range of opportunities to participate in 


• Our historic and cultural heritage is protected for 





Project 

2012/13 2013/14 2014/15 2015+ 

Sulpher pool 

upgrade $300,000 

Administration 

block/changing $2,000,000 

rooms upgrade 

Spa changing 

room upgrade $40,000 

Discharge of the 

bore $150,000 

Methane project 

$20,000 $207,840 

Information 

centre refit $103,920 

New pool slide 

$519,600 

Garden House 

Café refit $519,600 

Water 

resistance pool $536,900 

Hexagonal pool 

revitalisation $833,025 


This activity attracts significant numbers of tourists into the 

township. An increase in tourism and hence, people to the area, 

results in an increase in waste, air and noise pollution, traffic, and 

pressure on water and sewerage schemes as identified previously. 

The popularity of Hanmer Springs has created an increase in 

the cost of housing and competition to local businesses, and 

thus impacted on the current and future cultural, social and 

economic wellbeing of the local community through the threat 

to rural identity and the disadvantage to long term residents 

who moved into the area before the growth. The challenge 

for sustainable management will be to channel some of the 

undeniable benefits to economic wellbeing from this activity 

into initiatives that compensate for these negative effects and 

maintain our ideal of district and community wellness. 






extreme emergency, the Thermal Pools and Spa is not considered 

in this context to be an essential service, but has its own plans in 

place to cope with emergency situations. 

135




end of the Hanmer Springs Thermal Pools and Spa activity. 

136


Activity 1: Hanmer Springs Thermal Pools and Spa 

Overview 

The Hanmer Springs Thermal Pools and Spa (HSTP&S) activity 

includes the thermal pools, i-site, spa and café. 


The Hanmer Springs Thermal Pools and Spa (HSTP&S) is one 

of New Zealand’s premier tourist attractions. Each year over 

500,000 customers visit the thermal pools to bathe in the 

waters, enjoy the water activities and partake in massage and 

beauty treatments. The Visitor Information Centre (i-site) 

forms part of the complex as does the Garden House Café. 

The complex has undergone a number of renovations over the 

last five years the most recent being a $7.5m upgrade designed 

primarily to give the pools a summer proposition which are the 

busiest tourism months. 

the Café, reshaping the information centre and revitalising the 

aged hexagonal pools. 

The HSTP&S Management Committee plan to put forward a 

proposal to develop the Chisholm Ward on the Queen Mary 

Historic Hospital Reserve adjacent to the thermal complex. 

This will include utilising the methane resource for the project. 

Before this can proceed, the proposal will possibly be one of 

several projects considered by Council and publicly consulted 

on before they proceed. There is no funding put aside for this 

possible venture and at this stage, is only a concept. 

All of these projects are conceptual at this stage and will need 

financial feasibility studies done, and then initial approval by the 

HSTPS Management Committee before finally being approved 

by Council. 

Funding 

The complex now consists of 17 thermal pools and associated 

streams, 6 private pools, 2 steam rooms, 2 sauna rooms, a 25 

meter freshwater pool with adjoining lazy river, a children’s 

activity pool, a children’s aqua play area, a day Spa (The Spa at 

Hanmer Springs), a Café (The Garden House Café) and an i-site. 

The four business units being the Pools, Spa, Café and Information 

Centre have separate financial reporting structures which are 

consolidated into a combined profit for HSTPS. 

HSTP&S is operated as a profitable business and funds 

generated are used to augment the maintenance, development 

and promotion of the complex, with surpluses produced being 

used to assist funding of other reserves in the district. 

We have a dedicated Council committee to oversee the running 

of the complex called the HSTP&S Management Committee. It 

attends to the long term direction and planning of the pools 

complex and surrounds. The Committee membership comprises 

of some elected members of Council and the Hanmer Springs 

Community Board and external representatives to represent 

not only the best interests of the thermal pools, but also the 

local Hanmer Springs people. 


In 2011 the HSTP&S Management Committee approved a 

long term plan for continued upgrading and investment in the 

complex over the next 5 years. To continue to get good returns 

from the pool and make sure it is a desirable asset into the 

future, the complex needs to maintain or improve its good 

condition to maintain its lead in the industry. Therefore, ongoing 

planning, including upgrades for the future are essential. 

Features of the HSTP&S plan include upgrading the sulphur pools, 

improving our changing rooms, developing a long term plan for 


• 100% usercharge as per the pools fee schedule. 


• Replacement of existing assets is funded from the 

Hanmer Springs Thermal Reserve surpluses. 

• Expenditure on new assets are generally funded 

through an internal loan according to Council’s internal 

financing policy. 

The Thermal Pools and Spa are funded 100% by user charges 

and generate an annual surplus for Council. Major capital works 

are funded through the Thermal Pools and Spa borrowing from 

the Council pursuant to the Council’s Internal Financing Policy. 

The interest rate set at 2.5% above the Council’s external 

borrowing rate 

Minor capital works are funded through the Thermal Pools and 

Spa’s retained earnings. The additional interest derived from the 

internal financing to the Thermal Pools and Spa ($25,000 per $1 

million of borrowings) provides a good return for the Council 

that contributes toward lower rates. 

Use of income derived from the Thermal Pools and Spa: 

The Thermal Pools and Spa are situated on a Recreation Reserve 

which has been vested in the Council under the Reserves Act 

1977. Pursuant to the Reserves Act, the Council is only able 

to apply any surpluses derived from the Thermal Reserve to 

other reserves administered by the Council. The Council 

actively uses these surpluses to fund the costs relating to other 

District Reserves, Cemeteries, Public Toilets, and as the District 

Library has been built on a Reserve, the costs associated with 

137


the Library function is also subsidised by the surpluses from the 

Thermal Reserve. 

The pools and spa were expanded and improved in a major 

upgrade in 2010. This was funded by way of internal loan 

finance, as per Council’s Internal Financing Policy. The interest 

costs incurred by the Hanmer Springs Thermal Pools and Spa 

creates a distinct flow of income that is derived from the use of 

the funds that the Council is investing, rather than from the use 

of the Recreation Reserve. 

As a result, we now have two distinct streams of income 

generated from the Pools and Spa operation: 

• one from internal interest, which the Council uses to 

offset General Rates (in accordance with the Council’s 

funding policies) 

• and the other being on-going surpluses which are used 

to fund costs relating the reserves (as per the provisions 

of the Reserve Act 1977). 


It has been conservatively assumed that the HSTP&S complex 

will continue to attract national and international visitors, and 

continue to rate as a national icon. It is conservatively assumed 

that the HSTP&S’s revenue will increase due to predicted 

increases in price and some increase in patronage. Profit margins 

are based on improvements to the complex being completed 

on time. Sales revenue has been forecast conservatively, taking 

into account present tourism trends and challenges, and the 

projected outlook for the domestic economy, especially in the 

immediate years. 

The risk to Council of borrowing money to fund capital works 

for the Thermal Pools and Spa is that, should it not be able 

to return the anticipated profit we would be liable for the 

debt and would need to pass this on to ratepayers. The risk 

is considered low as the Thermal Pools and Spa has performed 

consistently and based future predictions of surpluses on very 

conservative assumptions, reflecting the on-going impact of the 

global economic downturn. 


Hanmer Springs Thermal Reserve complex which includes: 

• 17 thermal pools 

• 6 private pools 

• 2 steam rooms 

• 2 sauna rooms 

• 25 meter freshwater pool with adjoining lazy river 

• children’s activity pool 

• children’s aqua play area 

• day Spa 

• Café (The Garden House Café) 

• i-site 


The HSTP&S is 100% owned by Council and this is intended to 

continue. The day to day operation of the complex is done by 

staff overseen by an appointed manager. 

The in house operations team runs the thermal pools complex 

including the machinery that operates the pools. The computers 

and general IT are maintained and programmed by our council 

staff. The pools and plant are maintained to a very high 

standard to minimise the risk of failure or poor performance. A 

maintenance programme is in place and is budgeted for annually. 

This is important in order for us to be competitive with other 

leisure activities available to people. 

138




• A place with a thriving local economy 

• A place where our traditional rural values and heritage make Hurunui unique 

Goals 

Manage and operate the 

thermal reserve complex 

to attract local, national and 

international visitors 

Manage the thermal reserve 

complex profitably 

Maintain the complex so 

that it is in good condition 

for future generations 



Goals 

Advertise, market and 

promote the complex 

Operate the complex to an 

approved business plan 

Protect the thermal water 

to ensure on-going supply 


Customer numbers are 

maintained or increased 

according to the annual 

projections of 3% growth 

in customer numbers 

The thermal complex 

achieves an annual surplus 

in line with the annual 

budget 

Bore water consumption 

levels are within the 

consent limits at no more 

than 47.5 litres per second 

Customer growth was over 

4% over the year 

Cash surplus was $2.76m 

which was an increase over 

the previous year of $2.29m 

We have 2 bores and 

consumption averaged 18.72 

litres per second which is 

within the consent limits 

√ √ √ √ 

√ √ √ √ 

√ √ √ √ 


139


Hanmer Springs Thermal Pools and Spa - Group Activity Financial Summary 





Other Income 9,632,000 9,572,333 10,003,738 10,304,760 10,923,035 11,257,061 11,591,268 12,283,432 12,655,830 13,044,461 13,840,087 



Employee Benefits 3,511,336 3,651,055 3,812,271 3,928,161 4,052,008 4,184,154 4,303,821 4,426,201 4,565,494 4,717,424 4,870,453 


Internal Interest Paid 761,075 936,075 1,027,005 1,073,984 1,146,874 1,146,874 1,146,874 1,146,874 1,146,874 1,146,874 1,146,874 


Depreciation 785,600 836,803 881,131 912,298 847,848 820,237 793,528 804,318 816,524 848,615 860,919 


Operating Surplus (Deficit) 1,539,710 1,031,923 1,011,933 1,020,813 1,403,970 1,522,821 1,663,170 2,118,924 2,221,729 2,300,339 2,802,373 



Hanmer Springs Thermal Pools & Spa 200,000 2,650,000 1,454,880 644,280 944,095 115,070 119,450 124,290 129,590 135,510 141,740 

Total Capital Expenditure 200,000 2,650,000 1,454,880 644,280 944,095 115,070 119,450 124,290 129,590 135,510 141,740 


Capital Expenditure 200,000 2,650,000 1,454,880 644,280 944,095 115,070 119,450 124,290 129,590 135,510 141,740 

Transfer to Hanmer Springs Thermal Reserve 2,125,310 1,218,726 1,477,384 1,825,731 2,140,748 2,227,988 2,337,248 2,798,952 2,908,663 3,013,444 3,521,552 

2,325,310 3,868,726 2,932,264 2,470,011 3,084,843 2,343,058 2,456,698 2,923,242 3,038,253 3,148,954 3,663,292 

Funded by 

Operating Surplus 1,539,710 1,031,923 1,011,933 1,020,813 1,403,970 1,522,821 1,663,170 2,118,924 2,221,729 2,300,339 2,802,373 


Capital Expenditure funded through Internal Loans 0 2,000,000 1,039,200 536,900 833,025 0 0 0 0 0 0 

2,325,310 3,868,726 2,932,264 2,470,011 3,084,843 2,343,058 2,456,698 2,923,242 3,038,253 3,148,954 3,663,292 


140

Governance 

Overview 

Governance covers the following activity described below: 

Activity 1: Governance (democratic services) 

Our Aim 

To provide support and leadership to the Hurunui community 

and to ensure that the interests of residents and communities 

are advanced by the Council taking a role as ‘advocate’ on their 

behalf. 


The Hurunui District Council is one of 78 local authorities 

throughout New Zealand the roles of which are defined by law. 

One of Council’s primary roles is to act as an advocate for the 

district because it is the only local body that is representative 

of all the residents of the Hurunui. Council is involved in 

advocating the interests of residents where proposals from 

whichever source are regarded as having a potential effect on 

our community. 



The Governance activity does not pose any significant negative 

effects. 






extreme emergency, this service may not be considered to be 

essential. 



end of the District Promotion activity. 



primarily contribute to one of our community outcomes: 







managed 



Project 

2012/13 2013/14 2014/15 2015+ 

Representation review √ √ 

Triennial election √ √ 

141


Activity 1: Governance 

Overview 

The Governance activity includes the various functions of 

running a local authority around democratic services. 


The governance function is the democratic decision making 

process and includes the overall management of the Council, 

implementation of Council policy, support to elected members, 

representation and decision making at a political level and 

Council leadership. One of our primary roles is to act as an 

advocate for the district because it is the only local body that 

is representative of all the residents of the Hurunui. We are 

involved in advocating the interests of residents where proposals 

from whichever source are regarded as having a potential effect 

on our community. We monitor central government initiatives 

that may impact upon our residents or communities. We also 

have a key responsibility to raise the community’s awareness of 

major Council proposals, and where people may be significantly 

affected. 

Our Council comprises of the Mayor (elected at large) and 

nine Councillors elected on a ward basis. The Mayor and 

the Councillors have the role of setting the policy direction 

and monitoring the performance of the Council. We have an 

extensive Council committee structure involving Councillors 

and independent members across the District. Among 

these committees, the Hanmer Springs Ward has an elected 

Community Board. The Amberley and Cheviot Wards are 

served by Ward Committees, whereas the Amuri – Hurunui 

Ward, has two community committees (one in Amuri and the 

other in Hurunui). 

It is Council’s responsibility to employ a Chief Executive 

Officer (CEO) who in turn, is responsible for staff and the 

implementation and management of Council’s policies and 

objectives. The CEO, Andrew Dalziel was appointed in late 2007 

with a five year contract. The CEO is the employer of all the 

Council staff. 

The CEO and his management team work with elected 

members in setting the District’s direction and then shape and 

lead the organisation to deliver on the agreed direction. The 

organisational purpose is ‘making the District even better!’ 

Personal staff values are to act with commitment, competence, 

confidence, and integrity and have respect for both other’s 

opinions and importantly the democratic process. Organisational 

values are to deliver, take responsibility, work together, embrace 

fresh thinking, aim high and be an employer of choice. 

The CEO and Council are committed to being a High 

Performance Organisation. Items of work that are required to 

be undertaken to achieve improved performance are provided 

around six characteristics of a High Performance Organisation: 

being clear about our vision; providing high quality advice; 

providing best value; having a service ethic; being adaptive, 

flexible and agile and managing risks. 

We have undertaken an annual residents’ satisfaction survey 

since 2007 to measure customer satisfaction over a wide range 

of our services. In general terms, there has been a continual 

increase in overall resident satisfaction with the Council’s 

performance during that time. Residents’ perception of our 

overall performance in 2011 has improved and now sits at 87%. 

Satisfaction with the Mayor and Councillor’s performance is 

76%. Satisfaction with the service received at Council offices 

was 79%. 


We will continue to review our performance for all areas of 

Council – mayor, elected members, CEO, staff and the delivery 

of our services which includes contractor performance. The 

residents’ satisfaction survey provides us with good quality 

feedback on a range of services and issues and helps us improve 

and adjust to the District’s changing needs. The results of the 

survey are available to members of the public and can be located 

on our website – www.hurunui.govt.nz 

We will continue to advocate on behalf of our people as issues 

come up. Often issues that arise cannot be planned for as they 

are usually beyond our control and often arise from plans that 

other organisations and government agencies implement. At 

times we receive invitations to submit to proposals such as 

legislation changes or from neighbouring Councils. 

Local government elections are undertaken every 3 years. The 

next election is in October 2013 and preparation will commence 

early that year. We are responsible for conducting the election 

process for the two liquor licensing trusts in the district (Cheviot 

and Hawarden), and for some of the election processes for the 

Canterbury District Health Board and the Canterbury Regional 

Council. The elections are held at the same time. An electoral 

officer must be appointed by Council to manage the elections. 

We have contracted an election specialist to conduct the past 

three elections. This has proven to be the most cost efficient 

and effective method for us and has caused the least disruption 

to our ‘business as usual’ services. We are likely to continue to 

contract an external provider for the future triennial elections. 

We are required to review our ‘representation’ arrangements at 

least once every 6 years. This means that we must review the: 

• number of Councillors it has in the district 

• number of wards in the district, or whether to simply 

have a district with no wards 

• ward boundaries and names of wards 

• number and location of community boards 

142


New Zealand law requires all councils to regularly and properly 

review their electoral arrangements to ensure that the district’s 

people are fairly and properly represented by elected members. 

We are now in the process of doing this review so that it is 

completed in time for the 2013 elections. It is important to 

involve the community to get the best result for those who live 

in the District. Public consultation will occur separately to this 

Plan on any proposals for representation that we arrive at. 

The Local Government Act places limitations on the length of 

time Council can run a contract with its CEO before advertising 

the position again. In 2012, Council will be required to either 

reappoint the CEO for a further 2 years, or to advertise the 

vacancy. At the latest, if the position was extended for 2 years 

the Council must advertise the CEO vacancy by 2014 (the 

maximum extension before advertising). The cost of recruiting 

a CEO has been factored into this plan every 5 years at $50,000., 

each year that the contract expires. 


government structure and radical change can occur as a 

result. The last major restructure of local government was in 

1989 and the Hurunui District Council was formed then. The 

consequences of future local government reform are as yet 

unknown; the risks are yet to be identified. 

Canterbury Regional Council has been governed through 

Government selected Commissioners. Their recommendation 

for a future regional council model for Canterbury is not yet 

known. The final decision is likely to have some sort of impact 

on the Hurunui District. 


We collect rates on behalf of the Canterbury Regional Council 

and in return, they pay us a fee and a portion of the rating 

valuation cost. The income received is used to offset the cost of 

running our rates department. 

Funding 

• Funding is a 50% District Rate on Capital Value and 50% 

District Uniform Annual Charge. 

• Canterbury Regional Council contributes half the cost 

of the remuneration for the members of the Hurunui 

Waiau Zone Committee. 


• Any capital expenditure relating to Governance is 

funded over the life of the asset through a District Rate. 

• Not applicable. 


We perform a governance and advocacy role and there are no 


foreseeable plans to change this. Changes to legislation can 

occur at any stage and often impacts on the running of the 

Council in some way – through policy or bylaw implementation. 

Council manages its governance functions in house in the main, 

but contracts election specialists to run our triennial elections. 

It is assumed that the Hurunui District Council will continue 


to exist for the life of this plan. It is also assumed that the 

Council will remain relatively stable and that no by-elections will 

be necessary in between the triennial years. 

From time to time, the government does review the local 

143





Goals 

Represent the 

interests of the 


communities 

How we will achieve 

our Goals 

Ensure our representation 

arrangements are fair and 

effective 

Encourage people to stand 

for local government 

Undertake regular residents 


Performance Measures 

The districts representtation 

arrangement will be reviewed 

within the statutory deadlines 

Nominations for each Ward 

at least equal the number of 

vacancies for each triennial 

election 

Residents satisfaction with 

the overall performance of 

the Council is maintained or 

improved 


11/12 

A review is underway to be 

finalised in time for the 2013 & 

2019 triennial elections 

In the 2010 election, there were 

enough candidates for each 

Ward 

Satisfaction has been increasing 

since 2007 when surveying 

commenced and was 87% in 

2011 

12/13 13/14 14/15 15+ 

√ 

√ 

√ 

√ 

√ √ 



144

Governance - Group Activity Financial Summary 





District Wide Rates 882,226 990,808 1,052,416 1,158,327 1,096,127 1,185,876 1,245,476 1,204,608 1,309,957 1,374,284 1,336,060 

Other Income 28,000 16,000 16,501 17,003 17,542 18,120 18,635 19,162 19,768 20,434 21,102 

Total Operating Revenue 910,226 1,006,808 1,068,917 1,175,331 1,113,669 1,203,996 1,264,111 1,223,770 1,329,725 1,394,718 1,357,162 





Depreciation 0 6,000 9,464 9,464 9,464 9,836 9,836 9,836 10,320 10,320 10,320 

Total Operating Expenditure 910,226 1,006,808 1,068,917 1,175,331 1,113,669 1,203,996 1,264,111 1,223,770 1,329,725 1,394,718 1,357,162 

Operating Surplus (Deficit) 0 0 0 0 0 0 0 0 0 0 0 



Governance 0 0 36,372 0 0 40,275 0 0 45,357 0 0 

Total Capital Expenditure 0 0 36,372 0 0 40,275 0 0 45,357 0 0 


Capital Expenditure 0 0 36,372 0 0 40,275 0 0 45,357 0 0 

Transfer to General Council Reserves 0 6,000 9,464 9,464 9,464 9,836 9,836 9,836 10,320 10,320 10,320 

0 6,000 45,836 9,464 9,464 50,110 9,836 9,836 55,676 10,320 10,320 

Funded by 

Non Cash Expenditure - Depreciation 0 6,000 9,464 9,464 9,464 9,836 9,836 9,836 10,320 10,320 10,320 

General Council Reserves 0 0 36,372 0 0 40,275 0 0 45,357 0 0 

0 6,000 45,836 9,464 9,464 50,110 9,836 9,836 55,676 10,320 10,320 



145


Financial Overview 

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 

146

Financial Introduction 

Purpose of the Long Term Plan 

The long term plan has been prepared in accordance with 

Section 93 of the Local Government Act 2002. The Act states 

that the purpose of the long term plan is to: 

• Describe the activities of the Council; and 

• Describe the community outcomes of the District; and 

• Provide integrated decision-making and co-ordination 

of the resources of the Council; and 

• Provide a long term focus for the decisions and activities 

of the Council; and 

• Provide a basis for accountability of the Council to the 

community; and 

• Provide an opportunity for participation by the public 

in decision-making processes on activities to be 

undertaken by the Council. 

Further requirements under the Act are to: 

• Use the special consultative procedure in adopting the 

long term plan. 

• The long term plan must cover a period of not less than 

10 consecutive financial years 

• The long term plan must be adopted before the 

commencement of the first year and continue to be in 

force until the close of the third consecutive year. 

Cautionary Note 


The long term plan is based on assumptions and budgets for the 

entire 10 year period and as such it is important to note that 

actual results achieved for the period are likely to vary from the 

information provided in the Plan and that the likely variations 

may be material. 

The long term plan has been prepared for the purposes 

described earlier and the information may not be appropriate 

for purposes other than those described. 

Statement of Responsibility 

The forecast financial statements are prepared on the basis 

of best-estimate assumptions as to future events which the 

Council expects to take place as of 28 June 2012. 

Authorisation for issue 

This document was authorised for issue by Council on, as is 

dated, 28 June 2012. 

Comparative Information 

The 2011/2012 comparative information is based on the 

2011/2012 Annual Plan. The comparative numbers in the activity 

sections have been adjusted to reflect the changed structure to 

the activities from how they were structured in the Annual Plan, 

for instance, Footpath Construction was previously disclosed 

as part of Township Maintenance in the Community Services 

and Facilities. Due to a change in the legislation, Footpath 

Construction now forms part of the Roads and Footpaths 

Group of Activities. 

147


Forecasting Assumptions 

1. Inflation 

In preparing the LTP, the Council is required to use best 

estimates in determining the level of costs to be budgeted in 

the future. As a result, the Council is required to account for 

the effect of price changes or inflation that is expected to occur 

over the ten year period. 

To develop a consistent approach for local government to 

account for inflation, the Society of Local Government Managers 

(SOLGM) contracted Business and Economic Research Limited 

(BERL) to construct forecasts for inflation. 

The Hurunui District Council has endorsed the Local 

Government Cost Index (LGCI) rates produced by BERL and 

have used these rates as the assumption for accounting for 

inflation in the preparation of the LTP. In applying the rates, the 

Council has adopted the split between Operating Expenditure 

(Opex) and Capital Expenditure (Capex) as allowed for in 

BERL’s analysis. 

Rates used: 

Year 

Ending 

LGCI 

Index 

value 

Rate 

OPEX 

Index 

Value 

Rate 

CAPEX 

Index 

value 

June 2013 1269 1245 1301 

Rate 

June 2014 1313 3.47% 1284 3.13% 1352 3.92% 

June 2015 1355 3.20% 1323 3.04% 1397 3.33% 

June 2016 1399 3.25% 1365 3.17% 1445 3.44% 

June 2017 1447 3.43% 1410 3.30% 1497 3.60% 

June 2018 1494 3.25% 1450 2.84% 1554 3.81% 

June 2019 1545 3.41% 1491 2.83% 1617 4.05% 

June 2020 1602 3.69% 1538 3.15% 1686 4.27% 

June 2021 1664 3.87% 1590 3.38% 1763 4.57% 

June 2022 1729 3.91% 1642 3.27% 1844 4.59% 

In applying the inflation rates in the preparation of the budgets, 

the Council has set a budget based in 2012/2013 dollars for 

each of the ten years of the LTP. For each of the succeeding 

years of the LTP, the following cumulative inflation rates have 

been applied to each applicable cost or income. 

Cumulative Inflation Rates: 

Year 

Ending 

LGCI 

Index 

value 

Rate 

OPEX 

Index 

Value 

Rate 

CAPEX 

Index 

value 

June 2013 1269 1245 1301 

Rate 

June 2014 1313 3.47% 1284 3.13% 1352 3.92% 

June 2015 1355 6.78% 1323 6.27% 1397 7.38% 

June 2016 1399 10.24% 1365 9.64% 1445 11.07% 

June 2017 1447 14.03% 1410 13.25% 1497 15.07% 

June 2018 1494 17.73% 1450 16.47% 1554 19.45% 

June 2019 1545 21.75% 1491 19.76% 1617 24.29% 

June 2020 1602 26.24% 1538 23.53% 1686 29.59% 

June 2021 1664 31.13% 1590 27.71% 1763 35.51% 

June 2022 1729 36.25% 1642 31.89% 1844 41.74% 

For the Hanmer Springs Thermal Pools and Spa, it is predicted 

that an inflation adjustment to the entry price will be made in 

2015, 2018 and 2021. The increases in revenue in the intervening 

years are the result of an increase in the customer numbers, 

which is discussed further in the assumption for Projected 

Growth Change Factors. 

Risks and Uncertainties 

Inflation in some areas may increase at a rate different to that 

forecast. Some types of costs (e.g. Roading and Transport Costs) 

have been subject to wild fluctuations in recent years, and as a 

result, it is inherently difficult to predict trends with accuracy. 

In respect to the cost of insurance premiums, the budgets set 

for the 2012/2013 were based on the actual costs incurred by 

Council for the 2011/2012 year. As the insurance market has 

been undergoing change over the period since the Canterbury 

earthquakes, there is potential for the costs of insurance to 

move at different levels than assumed by utilising the BERL 

LGCI rates. 

Rating of Uncertainty: Medium 

2. Interest rates 

The movement of interest rates has a wide ranging effect on the 

Council. The Council’s cash investments derive interest at the 

market rates; the Council is vulnerable to the lending rates for 

148


its external borrowing requirements; and the Council’s internal 

financing policy bases the interest paid or charged to individual 

communities on those applicable rates. 

As part of the Council’s Treasury Risk Management policy, the 

Council has entered into a range of interest rate swaps designed 

to set a fixed portion to the interest rates charged over a period 

of time. Based on this information and advice from the Council’s 

Treasury advisers: 

• Council will receive an average of 3.5% on its limited 

cash investments. 

• Council will be charged an average rate of interest on 

its external borrowings at 6.25%. 

• Communities that hold internal loans with Council will 

be charged interest at 7.25% (100 basis points over 

the level of interest Council is charged for external 

borrowings). 

• Communities that have built up reserves for future 

capital expenditure will be credited interest at 3.5% 

(the same level the Council is expected to receive from 

its cash investments) 

• Any internal loans to the Hanmer Springs Thermal 

Reserve will be charged an interest rate of 8.75% 

(250 basis points above the level of interest Council is 

charged for external borrowings) 


The Council is exposed to the market with respect to interest 

rates and as such, the rates will be subject to adjustment over 

the period of the long term plan. Pursuant to its Treasury Risk 

Management Policy on page 264, the Council has entered into 

a series of interest rate swaps which is aimed at minimising the 

exposures to changes in the short term interest rates. Where 

the Council’s overall external interest rates do change, the 

change will be reflected in the level of interest charged or paid 

to the relevant communities as well as being reflected in the 

level of interest the Council receives on its cash investments or 

charged on its external borrowings. 

For the 2012/2013 year, it is forecast that external interest paid 

will be $921,875. Should there be a 1% increase the external 

borrowing costs – a move from 6.25% to 7.25%, the resulting 

external interest expense will increase to $1,069,375. 


3. Assets Vested in Council 

When a developer carries out a subdivision, they are required 

to vest various assets to Council. 

These assets include any new roads, water mains, sewer mains, 

footpaths and landscaped areas. The Council is then responsible 

for the maintenance and future replacement of those assets. 

To determine the value of the assets to be vested, the Council 

made assumptions based on an analysis of the costs of recent 

subdivisions in the District. The average costs were assumed as 

follows: 

• Roading (incl. Footpaths) $7,000 per section 

• Sewer $1,500 per section 

• Water $1,500 per section 

These amounts will be applicable to all urban areas and the 

amounts will be multiplied by the numbers of urban sections 

created in each year to arrive at the total assets to be added to 

the Council’s asset register. The number of new urban sections 

projected to be created is allowed for in the assumption for 

Projected Growth Change factors. This will also be inflationadjusted 

each year according to the BERL inflation forecasts 

as described in the assumption for inflation. Each addition 

to the asset register will be depreciated by any appropriate 

depreciation charge. Please note that no vested assets will be 

applied to rural sections. 

To balance the books, the introduction of the asset value needs to 

be reflected in income, therefore, there will be a corresponding 

income line called “Vested Assets Income”. 


The assumption has based the level of assets vested to Council 

on an analysis of recent major subdivisions carried out in the 

District. Some subdivisions may not result in any further assets 

to be vested in the Council as there has already been adequate 

capacity provided for the new sections and some subdivisions 

may have a greater amount of assets vested into Council as 

there may be a greater per property costs associated with the 

subdivision. 

Rating of Uncertainty: Low 

4. Depreciation Rates of Assets 

The same depreciation rates as for all significant assets have 

been assumed for planned asset acquisitions. These depreciation 

rates are as given in the Statement of Accounting Policies. 


The useful lives are based on historical information. Some assets 

may last longer than the life stated above because of differing 

factors and conversely, some assets may deteriorate at a faster 

rate than the lives stated above. 


149


5. Emissions Trading Scheme 

The Emissions Trading Scheme (ETS) is in place; however, there 

is still limited detail on how its implementation will affect costs 

moving forward. The price change adjustors as provided by 

BERL have made some allowance for the effects of the ETS 

and the Council has applied those rates in accordance with its 

assumption on inflation. 

The Council has registered its Forestry Assets under the ETS 

and it should qualify for carbon credits. These carbon credits 

will have a value, however, as it is in its initial stage, there is no 

details to assess the effect of this value and as a result, it has not 

been accounted for in the preparation of the LTP. 


There is an inherent risk that the inflation rates used in the 

preparation of the LTP may not reflect the actual costs. Should 

the resulting costs from the implementation of the ETS be 

greater than the levels of inflation that have been allowed for, 

then the Council will need to increase the funding from rates 

and other income to allow for it. 

As the Council has not accounted for the value of the carbon 

credits in the preparation of the LTP, any potential value that is 

assigned to the credits, or any proceeds from the potential sale 

of any carbon credits will be credited to the Forestry Reserve, 

which can be utilised in a manner determined appropriate by 

the Council. 


6. Unknown/Unconformed Legislation 

or Policy 

Due to the recent change of Government, the level of uncertainty 

in this area is too high for any changes to be sufficiently 

quantifiable to be taken into account for the present plan. The 

Council remains aware of the key issues on a qualitative level, 

and will take them into account as best they are able. 

Rating of Uncertainty: High 

7. NZTA Subsidy Rates 

To fund roading operational and capital expenditure, the Council 

receives a percentage of the cost as a subsidy from the New 

Zealand Transport Agency (NZTA). The subsidy rate is based 

on a calculation performed nationally which takes into account 

the land value of each District Council area. For the 2012/2013 

financial year, the subsidy rates are as follows: 

• Operating Expenditure 50% 

• Capital Expenditure 50% 

• Minor Safety Improvements 60% 

• Level Crossing Warnings 100% 

• Special Purpose Roading 100% 

There has been no indication that any of these rates are expected 

to change in the next three years, therefore the Council has 

made the assumption that subsidy rates are to remain constant 

over the life of the LTP. Based on NZTA’s indicative costs for 

2012-2015, we have assumed that the level of funding we will be 

allocated will continue over the remaining life of the Plan. 


The NZTA subsidy rates are based on a calculation which 

takes into account the land value of the Hurunui District as a 

comparison with other local authorities throughout the country. 

Should the land value of the Hurunui increase or decrease at a 

rate different to the average over the country, the calculation 

may result in the subsidy rate for the Hurunui increasing or 

decreasing. 

Should the subsidy rates decrease from the levels assumed, it will 

result in the amount of subsidy for roading works to decrease 

and placing a greater burden for funding the operational and 

capital expenditure of the roading network on the ratepayers. 

As an example, if each category of subsidy reduced by 10% 

(resulting in the subsidy rates Operating & Capital Expenditure 

to 40%; Minor Safety Improvements to 50% and Level Crossing 

Warnings and Special purpose Roading to 90%), for the 

2012/2013 year, based on the budgeted level of expenditure, the 

roading rate would need to increase by $624,803. 

Rating of Uncertainty: High 

8. Projected Growth Change Factors 

See the Development Contributions Policy for details of 

projected growth in the numbers of new properties in the 

district. The effects of the growth will be factored in when 

determining: 

• The level of development contributions which will flow 

through the organisation 

• The level of vested assets that the Council is expected 

to take ownership of 

For growth in the customer numbers at the Hanmer Springs 

Thermal Pools and Spa, the Council has assumed that the 

increase in customer numbers will be 3% each year over the life 

of the Long Term Plan. The resulting revenue is supplemented by 

a predicted increase to the standard entry price which provides 

a further increase of 4.5% in 2015, 2018 and 2021. 

150



The projected growth in the number of new sections may occur 

at rates significantly different to those predicted, which will 

result in the amounts received in Development Contributions 

and Vested Assets will differ from the figures budgeted for. 

The result may be that the period for collecting development 

contributions for specific growth related projects may reduce 

or be extended. 

If the movement in customer numbers at the Hanmer Springs 

Thermal Pools and Spa differs from the level assumed, it will 

have an effect on the revenue flows for the Pools. The Council 

intends on funding a certain level of the other reserve costs 

from surpluses from the Pools. After doing so, there is still a 

level of surpluses that are retained on an annual basis. If the 

growth in the customer numbers from the Pools is lower than 

the level projected, then the level of surpluses retained will 

reduce. Depending on the extent of any change to the growth 

in customer numbers, this may have an effect on the funds that 

are used to directly offset the various reserve costs throughout 

the District. 


9. Resource Consents 

It has been assumed that all current resource consents held by 

Council will be renewed at the appropriate time, with similar 

conditions and length of term as currently in place. Any costs 

associated with Capital Expenditure forecast throughout the 

ten year period have been included as an integral part of the 

cost of the asset and will be capitalised and depreciated in line 

with the physical works carried out. 


There is a risk that various resource consents held by the 

Council may not be renewed, or the conditions and term of 

the resource consent may vary from those currently in place. 

In addition, there is a risk that renewing resource consent may 

incur additional costs that have not currently been budgeted for. 


10. Revaluation of Assets 

The Council has adopted an approach of revaluing its land 

and buildings, roading and infrastructural assets on a three 

yearly basis to comply with the New Zealand equivalent to 

International Financial Reporting Standards. 

The valuation process is staggered so only one key asset class is 

revalued each year and as a result, the revaluation cycle over the 

period of the LTP will be as follows: 

Land and Buildings 30 June 2011 (most recent revaluation) 

30 June 2014 

30 June 2017 

30 June 2020 

Infrastructural Assets 30 June 2009 (most recent revaluation) 

30 June 2012 

(based on inflation indices for the 

prior 3 years) 

30 June 2015 

30 June 2018 

30 June 2021 

Roading Assets 30 June 2010 (most recent revaluation) 

30 June 2013 

30 June 2016 

30 June 2019 

30 June 2022 

As was the case for the preparation of the 2009 LTCCP, the 

Council has made the assumption that the value of Land will not 

change over the ten year period, with the exemption of proposed 

purchase of land required to extend the area of cemeteries. The 

Council has also assumed that the value of Buildings will change 

only in accordance to the amount of depreciation charged. 

The Council has made the assumption that the book values of the 

buildings, roading and infrastructural assets as at the revaluation 

dates will be increased by the cumulative inflation rates as per 

the BERL inflation forecasts as described in the assumption for 

inflation. The depreciation charge will be amended to reflect the 

remaining useful life of each asset and the charge made on the 

revalued amount of the asset. 

An example of how the cumulative inflation will be applied is 

as follows: 

• A length of water pipe may have a value of $1,000 as of 

30 June 2012 - the date of its last revaluation. 

• The next revaluation is set for 30 June 2015, and the 

cumulative inflation rate for Capital Expenditure over 

that period is 11.94%, therefore the new value should 

be $1,119. 




be $1,245. 




be $1,413. 

Any movement in the valuation of the roading and infrastructural 

assets is recognised in the asset revaluation reserve. The 

movements, along with any increase on capital purchases made 

in the intervening years have been applied to the existing values 

to arrive at the revalued amount for each asset. 

151



12. Useful Lives of Significant Assets 

Inflation in some areas may increase at a rate different to that 

forecast. Some types of costs (e.g. Roading and Transport Costs) 

have been subject to wild fluctuations in recent years, and as a 

result, it is inherently difficult to predict trends with accuracy. 


11. Funding Replacement of 

Significant Assets 

Capital Expenditure is funded by two key mechanisms: 

• General Reserve funding for those assets whose 

depreciation is funded via rates; and 

• Internal Financing for most other assets as set out in 

the Internal Financing Policy, which forms part of the 

Council’s Treasury Policy. 

General Reserve Funding 

A number of assets, principally those that are funded by the 

General Rate or a part of the Overhead component, are 

depreciated with the amount of depreciation being funded by 

income or rates. The funds from the funded depreciation are 

collected in a General Reserve. When the asset requires replacing, 

the funds are withdrawn from the General Reserve. 

Internal Financing 

For those activities that are funded by way of a Targeted Rate, 

Capital Expenditure can be funding through the Internal Financing 

system of Council. The full description of the Internal Financing 

system and how it is applied is in the Internal Financing Policy on 

page 268. 


There is a risk that some communities with significant capital 

requirements due to the condition of the asset or the requirement 

to upgrade their assets, that the level of debt that they owe 

becomes unsustainable. Council will monitor the level of debt on 

a regular basis to ensure such communities can sustain the costs 

associated with the provision of the asset. 


Depreciation rates are as given in the Statement of Accounting 

Policies. 


The useful lives are based on historical information. Some assets 

may last longer than the life stated above because of differing 

factors and conversely, some assets may deteriorate at a faster 

rate than the lives stated above. 


13. Climate Change & Societal 

Changes 

The Sustainability section of the Plan (Page 44) states the 

Council’s position on Climate Change, and the discussion in the 

Financial Strategy (pages 21) indicates a major societal change in 

the District’s aging population. The Council has considered the 

effects of these in its planning, but are of the opinion that there is 

not sufficient certainty surrounding the detail of the projections 

in these areas for them to be incorporated as specific financial 

forecasting assumptions in the LTP. 

The Council is mindful of the current economic crisis and 

outlook and will look for increased efficiencies in this regard. 

Other potential societal changes were considered by the 

Council, but were not seen to be significant. 


These factors may have a stronger impact than anticipated. The 

Council will monitor the situation and seek to adapt accordingly. 


152

Statement of Accounting Policies 

Reporting Entity 

Hurunui District Council is a territorial local authority as 

governed by the Local Government Act 2002 and is domiciled 

in New Zealand. 

The Hurunui District Council group consists of the ultimate 

parent Hurunui District Council (HDC) and its subsidiary 

Hurunui Holdings Limited (HHL) (100% owned), associate 

Enterprise North Canterbury (50% equity share), Canterbury 

Economic Development Company Limited (10%) and Transwaste 

Canterbury Limited (1.2%). All HDC subsidiaries and associates 

are incorporated and domiciled in New Zealand. 

The primary objective of HDC is to provide goods and services 

for the community for social benefit rather than making a 

financial return. 

Accordingly, HDC has designated itself and the group as public 

benefit entities for the purposes of New Zealand equivalents to 

International Financial Reporting Standards (“NZ IFRS”). 

The seat of the Council is at Amberley. 

Basis of Preparation of the Forecast Information 


assumptions underlying these prospective financial statements 

are appropriate, has approved the Long Term Plan for distribution. 

The Council and management of the Hurunui District Council 

accept responsibility for the preparation of their prospective 

financial statements, including the appropriateness of the 

assumptions underlying the prospective financial statements and 

all other required disclosures. 

No actual financial results have been incorporated within the 

prospective financial statements. 

Statement of Compliance 

The financial information contained within this report has 

been prepared in accordance with the generally accepted 

accounting practice in New Zealand as required under section 

111 of the Local Government Act 2002, and the Long Term Plan 

requirements of section 93. It is audited under section 84 of the 

Local Government Act 2002. 

The prospective financial statements comply with applicable 

Financial Reporting Standards, which include New Zealand 

equivalents to International Financial Reporting Standards (NZ 

IFRS). The financial statements incorporated in the Long Term 

Plan have been prepared in compliance with Financial Reporting 

Standard (FRS) number 42; Prospective Financial Statements. 

The prospective financial statements of the Hurunui District 

Council have been prepared in accordance with the requirements 

of the Local Government Act 2002. 

In September 2011, the External Reporting Board issued 

a position paper and consultation papers proposing a new 

external reporting framework for public benefit entities (PBEs). 

The papers proposed that accounting standards for PBEs would 

be based on International Public Sector Accounting Standards, 

modified as necessary. The proposals in these papers do not 

provide certainty about any specific requirements of future 

accounting standards. Therefore, the accounting policies 

on which the forecast information for 2012-22 has been 

prepared are based on the current New Zealand equivalents to 

International Financial Reporting Standards. 

The opening balances for the 2012/2013 year are based on 

forecast closing balances for the 2011/2012 year. 

The prospective financial statements have been prepared 

on a historical cost basis, modified by the revaluation of land 

and buildings, certain infrastructural assets, investments, 

biological assets and financial instruments (including derivative 

instruments). 

The Council authorised the prospective financial statements on 

28 June 2012. 

The Council, who are authorised to do so and believe that the 

The Hurunui District Council is a Public Benefit Entity and has 

applied the PBE exemptions allowable under New Zealand 

equivalents to International Financial Reporting Standards (NZ 

IFRS). 

Cautionary Note 

The information in the prospective financial statements is to 

outline service and spending priorities in the statement of 

proposal for the Long Term Plan and may not be appropriate 

for any other use. 

Consolidation 

The Council has not consolidated the prospective financial 

statements to include the Council’s subsidiary Hurunui Holdings 

Limited. The Council believes consolidation for the purpose of 

the Long Term Plan will not be material as Hurunui Holdings 

Limited operates essentially as a shelf company and has no 

transactions. 

Measurement Base 

The prospective financial statements have been prepared on 

the historical cost basis, modified by the revaluation of certain 

assets. 

Functional and Presentation Currency 

The financial statements are presented in New Zealand dollars 

and all values are rounded to the nearest thousand dollars 

($’000). The functional currency of the HDC is New Zealand 

dollars. 

153


Changes in Accounting Policies 

The accounting policies set out below have been applied 

consistently to all periods presented in these financial statements. 

Significant Accounting Policies Basis of 

Consolidation 

The purchase method is used to prepare the consolidated 

financial statements, which involves adding together like items 

of assets, liabilities, equity, income and expenses on a line-by-line 

basis. All significant intragroup balances, transactions, income 

and expenses are eliminated on consolidation. 

Subsidiaries 

HDC consolidates as subsidiaries in the group financial 

statements all entities where HDC has the capacity to control 

their financing and operating policies so as to obtain benefits 

from the activities of the entity. This power exists where HDC 

controls the majority voting power on the governing body or 

where such policies have been irreversibly predetermined by 

HDC or where the determination of such policies is unable to 

materially impact the level of potential ownership benefits that 

arise from the activities of the subsidiary. 

HDC measures the cost of a business combination as the 

aggregate of the fair values, at the date of exchange, of assets 

given, liabilities incurred or assumed, in exchange for control of 

the subsidiary plus any costs directly attributable to the business 

combination. 

Any excess of the cost of the business combination over 

HDC’s interest in the net fair value of the identifiable assets, 

liabilities and contingent liabilities is recognised as goodwill. If 

HDC’s interest in the net fair value of the identifiable assets, 

liabilities and contingent liabilities recognised exceeds the cost 

of the business combination, the difference will be recognised 

immediately in the statement of comprehensive income. 

Investments in subsidiaries are valued as available for sale 

investments in HDC’s own “parent entity” financial statements. 

Associates 

HDC accounts for an investment in an associate in the group 

financial statements using the equity method. An associate is an 

entity over which the HDC has significant influence and that 

is neither a subsidiary nor an interest in a joint venture. The 

investment in an associate is initially recognised at cost and the 

carrying amount is increased or decreased to recognise HDC’s 

share of the surplus or deficit of the associate after the date 

of acquisition. HDC’s share of the surplus or deficit of the 

associate is recognised in HDC’s statement of comprehensive 

income. Distributions received from an associate reduce the 

carrying amount of the investment. 

If HDC’s share of an associate’s deficit equals or exceeds its 

interest in the associate, HDC discontinues recognising its share 

of further deficits. After HDC’s interest is reduced to zero, 

additional deficits are provided for, and a liability is recognised, 

only to the extent that HDC has incurred legal or constructive 

obligations or made payments on behalf of the associate. If the 

associate subsequently reports surpluses, HDC will resume 

recognising its share of those surpluses only after its share of 

surpluses equals the share of deficits not recognised. 

HDC’s share in the associate’s surplus or deficits resulting from 

unrealised gains on transactions between the HDC and its 

associates is eliminated. 

HDC’s investments in associates are carried at cost in HDC’s 

own “parent entity” financial statements. 

Revenue 

Revenue is measured at the fair value of consideration received. 

Rates Revenue 

Rates are set annually by a resolution from Council and 

relate to a financial year. All ratepayers are invoiced within the 

financial year to which the rates have been set. Rates revenue is 

recognised when payable. 

Rates collected on behalf of the Canterbury Regional Council 

(ECan) are not recognised in the financial statements as HDC is 

acting as an agent for ECan. 

Water Revenue 

Water Billing is recognised on volumes delivered on accrual 

basis. 

New Zealand Transport Agency Roading Subsidies 

New Zealand Transport Agency roading subsidies are recognised 

as revenue upon entitlement which is when conditions pertaining 

to eligible expenditure have been fulfilled. 

Contract Revenue 

Revenue from a contract to provide services is recognised by 

reference to the stage of completion of the contract at the 

balance sheet date based on the actual service provided as a 

percentage of total services to be provided. 

User Charges 

Sales of goods are recognised when the significant risks and 

rewards of ownership of the assets have been transferred to 

the buyer which is usually when the goods are delivered and 

title has passed. 

Interest Revenue 

Interest income is accrued on a time basis, by reference to the 

principal outstanding and at the effective interest rate applicable. 

154


Dividend Revenue 

Dividend income from investments is recognised as revenue, net 

of imputation credits, when the shareholders’ rights to receive 

payment have been established. 

Other Revenue 

Other revenue including assets vested in Council, with or 

without restrictions, is recognised as revenue when control 

over the assets is obtained. 


Development contributions are recognized as revenue when 

the Council provides, or is able to provide, the service for 

which the contribution was charged. Otherwise development 

contributions are recognized as liabilities until such time the 

Council provides, or is able to provide, the service. 

Development contributions are classified as part of “Other 

Revenue”. 

Borrowing Costs 

All borrowing costs are recognised as expenses in the statement 

of comprehensive income in the period in which they are 

incurred. 

Income Tax 

Income tax in relation to the surplus or deficit for the period 

comprises current tax and deferred tax. 

Current tax is the amount of income tax payable on the taxable 

profit for the current year, plus any adjustments to income tax 

payable in respect of prior years. Current tax is calculated using 

rates that have been enacted or substantively enacted at balance 

date. 

Deferred tax is the amount of income tax payable or recoverable 

in future periods in respect of temporary differences and unused 

tax losses. Temporary differences are differences between 

the carrying amount of assets and liabilities in the financial 

statements and the corresponding tax bases in the computation 

of taxable profit. 

Deferred tax liabilities are generally recognised for taxable 

temporary differences and deferred tax assets are recognised to 

the extent that it is probable that taxable profits will be available 

against which deductible temporary differences can be utilised. 

Deferred tax is not recognised if the temporary difference 

arises from the initial recognition of goodwill or from the initial 

recognition of an asset and liability in a transaction that is not a 

business combination, and at the time of the transaction, affects 

neither the accounting profit nor taxable profit. 

Deferred tax is recognised on taxable temporary differences 

arising on investments in subsidiaries and associates, and interests 

in joint ventures, except where the company can control the 

reversal of the temporary difference and it is probable that the 

temporary difference will not reverse in the foreseeable future. 

Deferred tax is calculated at the tax rates that are expected to 

apply in the period when the liability is settled or the asset is 

realised, using tax rates that have been enacted or substantially 

enacted by balance date. 

Current tax and deferred tax is charged or credited to the 

statement of comprehensive income, except when it relates to 

items charged or credited directly to equity, in which case the 

tax is dealt with in equity. 

Leases 

Operational leases 

An operating lease is a lease that does not transfer substantially 

all the risks and rewards incidental to ownership of an asset. 

Lease payments under an operating lease are recognised on a 

straight-line basis over the lease term. 

Cash and Cash Equivalents 

Cash and cash equivalents comprise cash in hand, demand 

deposits and other short-term highly liquid investments that are 

readily convertible to a known amount of cash and are subject 

to an insignificant risk of changes in value, and with original 

maturities of three months or less. 

Trade and Other Receivables 

Trade and other receivables are initially measured at fair value 

and subsequently measured at amortised cost using the effective 

interest rate method, less any provision for impairment. 

Inventories 

Inventories are stated at the lower of cost and net realisable 

value. Cost comprises direct materials and, where applicable, 

direct labour costs and those overheads that have been 

incurred in bringing the inventories to their present location 

and condition. Cost is calculated using the weighted average 

method. 

Net realisable value represents the estimated selling price less 

all estimated costs of completion and costs to be incurred in 

marketing, selling and distribution. 

Financial Assets 

The Group classifies its financial assets into the following four 

categories: financial assets at fair value through profit or loss, 

held to maturity investments, loans and receivables and financial 

155


assets at fair value through equity. The classification depends 

on the purpose for which the investments were acquired. 

Management determines the classification of its investments 

at initial recognition and re-evaluates the designation every 

reporting date. 

Financial assets and liabilities are initially measured at fair value 

plus transaction costs unless they are carried at fair value 

through profit and loss in which case transaction costs are 

recognised in the statement of comprehensive income. 

Investments 

Investments are recognised on a trade-date basis and are 

initially measured at fair value, including transaction costs. At 

subsequent reporting dates, debt securities that the Group has 

the expressed intention and ability to hold to maturity (heldto-maturity 

debt securities) are measured at amortised cost 

using the effective interest rate method, less any impairment 

loss recognised to reflect irrecoverable amounts. 

Investments other than held-to-maturity debt securities are 

classified as either held-for-trading or available-for sale, and are 

measured at subsequent reporting dates at fair value. 

Where securities are held for trading purposes, gains and losses 

arising from changes in fair value are included in the statement 

of comprehensive income for the period. 

For available-for-sale investments, gains and losses arising from 

changes in fair value are recognised directly in equity, until the 

security is disposed of or is determined to be impaired, at which 

time the cumulative gain or loss previously recognised in equity 

is included in the statement of comprehensive income for the 

period. 

Impairment of Investments 

An impairment loss is recognised in the statement of 

comprehensive income when there is objective evidence 

that the asset is impaired, and is measured as the difference 

between the investment’s carrying amount and the present 

value of estimated future cash flows discounted at the effective 

interest rate computed at initial recognition. Impairment losses 

are reversed in subsequent periods when an increase in the 

investment’s recoverable amount can be related objectively to 

an event occurring after the impairment was recognised, subject 

to the restriction that the carrying amount of the investment at 

the date the impairment is reversed shall not exceed what the 

amortised cost would have been had the impairment not been 

recognised. 

Derivative Fiancial Instruments 

The Council uses derivative financial instruments (primarily 

interest rate hedges) to hedge the risks associated with interest 

rate movements. The use of financial derivatives is governed 

by the Council’s policies approved by the HDC and the HHL 

board of directors, which provide written principles on the 

use of financial derivatives consistent with the Council’s risk 

management strategy. The Group does not use derivative 

financial instruments for speculative purposes. 

Such derivatives are initially recorded at fair value on contract 

date and are adjusted to fair value at subsequent reporting dates. 

Changes in the fair value of derivative financial instruments are 

recognised in the statement of comprehensive income as they 

arise. 

Non-Current Assets Held for Sale 

Non-current assets are classified as held for sale if their carrying 

amount will be recovered principally through a sale transaction, 

not through continuing use. Non-current assets held for sale are 

measured at the lower of their carrying amount and fair value 

less costs to sell. 

Any impairment losses for write downs or non-current assets 

held for sale are recognised in the statement of comprehensive 

income. Any increase in fair value (less costs to sell) are 

recognised up to the level of any impairment losses that have 

been previously recognised. 

Non-current assets (including those that are part of a disposal 

group) are not depreciated or amortised while they are classified 

as held for sale. Interest and other expenses attributable to the 

liabilities of a disposal group classified as held for sale continue 

to be recognised. 

Property, Plant & Equipment 

Property, plant and equipment consists of: 

Operational Assets — These include land, buildings, landfill post 

closure, library books, plant and equipment, and motor vehicles. 

Restricted Assets — Restricted assets are parks and reserves 

owned by the Council which provide a benefit or service to the 

community and cannot be disposed of because of legal or other 

restrictions. 

Infrastructure assets — Infrastructure assets are the fixed utility 

systems owned by the Council. Each asset class includes all 

items that are required for the network. 

Property, Plant and Equipment are at stated values less 

accumulated depreciation and impairment losses. 

Fixtures and Fittings, Motor Vehicles, Plant and Equipment, and 

Library Books are stated at cost less accumulated depreciation 

and impairment losses. 

156


Additions 

The cost of an item of property, plant and equipment is 

recognised as an asset if, and only if, it is probable that future 

economic benefits or service potential associated with the item 

will flow to the Group and the cost of the item can be measured 

reliably. 

In most instances, an item of property, plant and equipment is 

recognised at its cost. Where an asset is acquired at no cost, or 

for a nominal cost, it is recognised at fair value as at the date of 

acquisition. 

Disposals 

Gains and losses on disposals are determined by comparing the 

proceeds with the carrying amount of the asset. Gains and losses 

on disposals are included in the statement of comprehensive 

income. When revalued assets are sold, the amounts included 

in asset revaluation reserves in respect of those assets are 

transferred to retained earnings. 

Subsequent Costs 

Costs incurred subsequent to initial acquisition are capitalised 

only when it is probable that future economic benefits or service 

potential associated with the item will flow to the Group and 

the cost can be measured reliably. 

Revaluation 

An assets fair value at the date of revaluation is equal to the 

revalued amount. Revaluations are performed with sufficient 

regularity such that the carrying amount does not differ 

materially from that which would be determined using fair 

values at balance date and this is generally every three years. 

Revaluation increments and decrements are credited or debited 

to the asset revaluation reserve for that class of asset. Where 

this results in a debit balance in the asset revaluation reserve, 

this balance is expensed in the statement of comprehensive 

income. Any subsequent increase on revaluation that offsets 

a previous decrease in value is recognised in the statement of 

comprehensive income will be recognised up to the amount 

previously expensed, and then credited to the revaluation 

reserve for that class of asset. 

Operational Land and Buildings 

Land and Buildings were valued by Darroch Limited (Registered 

Valuers) as at 30 June 2011. The basis of valuation is fair value 

with reference to highest and best use, as at 30 June 2011. 

They are stated at valuation less accumulated depreciation and 

accumulated impairment. 

Properties in the course of construction for production, rental 

or administrative purposes, or for purposes not yet determined, 

are carried at cost, less any recognised impairment loss. Cost 

includes professional fees. 

Subsequent costs are included in the asset’s carrying amount 

or recognised as a separate asset, as appropriate, only when it 

is probable that future economic benefits associated with the 

item will flow to HDC and the cost of the item can be measured 

reliably. All other repairs and maintenance are charged to the 

statement of comprehensive income during the financial period 

in which they are incurred. 

Restricted Assets 

Certain infrastructure assets and land have been vested in 

the Council as part of the subdivisional consent process. The 

vested reserve land has been initially recognised at the most 

recent appropriately certified government valuation. Vested 

infrastructure assets have been valued based on the estimated 

quantities of infrastructure components vested and the current 

“in the ground” cost of providing identical services. 

Infrastructural Asset Classes; Roads, Water Reticulation, 

Sewerage Reticulation and Stormwater Systems 

Infrastructural assets are recorded at valuation established 

using depreciated replacement cost, plus additions at cost less 

accumulated depreciation and accumulated impairment losses. 

The revaluation of infrastructural assets is carried out on a 

three yearly cycle. 

The roading valuation includes land under the roading network. 

The valuation of this land is based on the average rateable value 

of land in the associated ward as determined by QV Valuations 

(Registered Valuers) as at 30 June 2005. Under NZ IFRS HDC 

has elected to use the fair value of the land under roads as at 

30 June 2005 at deemed cost. Land under roads is no longer 

revalued. 

Roading assets have been valued at depreciated replacement 

cost as at 30 June 2010. The valuation was performed internally 

by HDC’s Roading Engineer – Asset Management, J Whyte and 

peer reviewed by George JasonSmith, BE (NSW), MIPENZ 

(Civil), CPEng, Principal Asset Management Consultants for 

AECOM New Zealand Limited. Additions and disposals after 

the date of valuation will be recorded at cost. 

Water and Sewage Assets have been valued at depreciated 

replacement cost as at 1 July 2009. The valuation was performed 

internally by the Manager of Engineering Services, B M Yates, 

Registered Engineer and peer reviewed by M Clough, Registered 

Valuer of Beca Valuations Limited. Additions and disposals since 

the date of valuation have been recorded at cost. 

Stormwater and Drainage Assets have been valued at 

depreciated replacement cost as at 30 June 2011. The valuation 

was performed internally by HDC’s Technical Officer - Utilities, 

157


D Perry and peer reviewed by M Clough, Registered Valuer of 

Beca Valuations Limited. Additions and disposals since the date 

of valuation have been recorded at cost. 

Certain infrastructural assets have been vested in HDC as part 

of the subdivision consent process. Vested infrastructure assets 

have been valued based on the estimated quantities of the 

components vested in HDC. 

Depreciation 

Depreciation is provided on a straight line basis on all property, 

plant and equipment and intangible assets other than land 

and heritage assets, at rates which will write off the cost (or 

valuation) of the assets to their estimated residual values over 

their useful lives. Depreciation of these assets commences when 

the assets are ready for their intended use. 

Depreciation on revalued assets is charged to the statement of 

comprehensive income. On the subsequent sale or retirement 

of a revalued asset, the attributable revaluation surplus remaining 

in the properties revaluation reserve is transferred directly to 

retained earnings. 

The gain or loss arising on the disposal or retirement of an asset 

is determined as the difference between the sales proceeds 

and the carrying amount of the asset and is recognised in the 

statement of comprehensive income. 

The useful lives and associated depreciation rates of major 

classes of assets have been estimated in Table 1. 

Intangible Assets 

Software Acquisition and Development 

Acquired computer software licenses are capitalised on the 

basis of the costs incurred to acquire and bring to use the 

specific software. 

Costs associated with maintaining computer software are 

recognised as an expense when incurred. Costs that are directly 

associated with the development of software for internal use 

by the Group are recognised as an intangible asset. Direct 

costs include the software development employee costs and an 

appropriate portion of the relevant overheads. 

Amortisation 

The carrying value of intangible assets with a finite life is amortised 

on a straight-line basis over its useful life. Amortisation begins 

when the asset is available for use and ceases at the date that 

the asset is derecognised. The amortisation charge for each 

period is recognised in the statement of comprehensive income. 

The useful lives and associated amortisation rates of major 

classes of intangible assets have been estimated as follows: 

Computer software 3 – 4 years 25 – 33% 

Aerial Photos 10 years 10% 

Forestry Assets 

Forestry and other biological assets are stated at fair value less 

estimated point-of-sale costs, with any resultant gain or loss 

recognised in the statement of comprehensive income. Pointof-sale 

costs include all costs that would be necessary to sell 

the assets, excluding costs necessary to transport the assets to 

market. 

The fair value of standing timber older than 10 years, being the 

age at which it becomes marketable, is based on the market 

price of the estimated recoverable wood volumes, net of 

harvesting costs. The fair value of younger standing timber is 

based on the present value of the net cash flows expected to 

be generated by the plantation at maturity. The present values 

are calculated using a pre-tax discount rate that reflects current 

market assessments of the time value of money and the risks 

specific to the asset. 

Forests are valued annually by Laurie Forestry Ltd. Any increase 

or decrease in the valuation is reflected in the statement of 

comprehensive income. 

Impairment of Non-Financial Assets 

At each reporting date, the Group reviews the carrying amounts 

of its tangible and intangible assets to determine whether there 

is any indication that those assets have suffered an impairment 

loss. If any such indication exists and for indefinite life intangibles, 

the recoverable amount of the asset is estimated in order to 

determine the extent of the impairment loss (if any). Where it is 

not possible to estimate the recoverable amount of an individual 

asset, the Group estimates the recoverable amount of the cash 

generating unit to which the asset belongs. Recoverable amount 

is the greater of market value less costs to sell and value in use. 

The Group measures the value in use of assets whose future 

economic benefits are not directly related to their ability to 

generate net cash inflows held, at depreciated replacement cost. 

In assessing value in use for other assets, the estimated future 

cash flows are discounted to their present value using a pre-tax 

discount rate that reflects current market assessments of the 

time value of money and the risks specific to the asset. 

If the recoverable amount of an asset (or cash-generating unit) 

is estimated to be less than its carrying amount, the carrying 

amount of the asset (cash-generating unit) is reduced to its 

recoverable amount. 

158


Table 1. 

Useful Life 

Depreciation 

Rate 

Buildings - wooden (excluding 

properties intended for sale) 

50 years 2% 

Buildings - concrete (excluding 

properties intended for sale) 

100 years 1% 

Furniture and fittings: administration 5 years 20% 

Furniture and fittings: pensioner 

flats 

10 years 10% 

Library books 3 – 8 years 12.5 – 33.33% 

Computer hardware 3 – 4 years 25 – 33.33% 

Motor vehicles 5 years 20% 

Thermal pools - plant 5 years 20% 

Thermal pools – development 

expenditure 

20 – 100 years 1% - 5% 

Plant and machinery (excluding 

HDC’s infrastructural assets) 

10 years 10% 

Small plant and machines 3 - 10 years 10 - 33.33% 

Car parks 20 – 25 years 4 – 5% 

Landscaping 10 – 50 years 2 – 10% 

Roads, Streets and Bridges 

- Land under roads Not depreciated 0% 

- Pavement formation Not depreciated 0% 

- Pavement layers (sealed) 100 years 1% 

- Pavement layers (unsealed) Not depreciated 0% 

- Pavement surface (sealed) Average 16 years 6.25% 

- Pavement surface (unsealed) 12 years 8.33% 

- Culverts 25 – 50 years 2 – 4% 

- Kerb and channel 50 – 80 years 1.25 – 2% 

- Footpaths 20 – 75 years 1.33 – 5% 

- Bridges – timber 70 years 1.43% 

- Bridges – concrete and other 100 years 1% 

- Retaining walls 50 years 2% 

- Traffic signs 12 years 8.33% 

- Street lighting 15 – 25 years 4 – 6.67% 

Sewerage 

- Pipes 50 – 80 years 1.25 – 2% 

- Pipes other 40 years 2.5% 

- Pumps and controls 10 – 25 years 4 – 10% 

- Manholes 50 – 80 years 1.25 – 2% 

- Treatment plant 25 – 60 years 1.67 – 4% 

Water 

- Pipes 50 – 80 years 1.25 – 2% 

- Pipes other 50 – 80 years 1.25 – 2% 

- Reservoir and tanks 80 years 1.25% 

- Pumps and controls 10 – 25 years 4 – 10% 

- Pump stations/intakes 20 – 60 years 1.67 – 5% 

- Treatment plant 10 – 80 years 1.25 – 10% 

Drainage 3 - 10 years 10 - 33.33% 

- Points 80 years 1.25% 

- Lines 50 - 80 years 1.25 – 2% 

For non-revalued assets, impairment losses are recognised as an 

expense immediately. 

For revalued assets, other than investment property, the 

impairment loss is treated as a revaluation decrease to the 

extent it reverses previous accumulated revaluation increments 

for that asset class. 

Where an impairment loss subsequently reverses, the carrying 

amount of the asset (cash-generating unit) is increased to 

the revised estimate of its recoverable amount, but so that 

the increased carrying amount does not exceed the carrying 

amount that would have been determined had no impairment 

loss been recognised for the asset (cash-generating unit) in 

prior years. A reversal of an impairment loss is recognised as 

income immediately, unless the relevant asset is carried at a 

revalued amount, in which revaluation increase to the extent 

that any impairment losses had been previously charged to 

comprehensive income. 

Creditors and Other Payables 

Creditors and other payables are initially measured at fair value 

and subsequently measured at amortised cost. 

Borrowings 

Borrowings are initially measured at fair value of net transaction 

costs and subsequently measured at amortised cost using the 

effective interest method. 

Borrowings are classified as current liabilities unless HDC or 

group has an unconditional right to defer settlement of the 

liability for at least 12 months after balance date. 

Employee Entitlements 

Provision is made in respect of the Council’s liability for retiring 

gratuity allowances, annual and long service leave, and sick leave. 

Short-term benefits 

Employee benefits that the Council expects to be settled within 

12 months of balance date are measured at nominal values 

based on accrued entitlements at current rates of pay. 

These include salaries and wages accrued up to balance date, 

annual leave earned to, but not yet taken at balance date, retiring 

and long service leave entitlements expected to be settled 

within 12 months, and sick leave. 

The Council recognises a liability for sick leave to the extent 

that absences in the coming year are expected to be greater 

than the sick leave entitlements earned in the coming year. The 

amount is calculated based on the unused sick leave entitlement 

that can be carried forward at balance date, to the extent that 

the Council anticipates it will be used by staff to cover those 

future absences. 

159


The Council recognises a liability and an expense for bonuses 

where contractually obliged or where there is a past practice 

that has created a constructive obligation. 

Long service leave and retiring gratuity 

The retiring gratuity and long service leave liability is assessed on 

an actuarial basis using current rates of pay taking into account 

years of service, years to entitlement and the likelihood staff will 

reach the point of entitlement. 

Provisions 

Provisions are recognised when the Group has a present 

obligation as a result of a past event (either legal or constructive), 

and it is probable that the Group will be required to settle that 

obligation. Provisions are measured at management’s best 

estimate of the expenditure required to settle the obligation 

at balance date, and are discounted to present value where 

the effect is material. Provisions are not recognised for future 

operating losses. 

As operator of the Waikari Landfill, the Council has a legal 

obligation under the resource consent to provide ongoing 

maintenance and monitoring services at the landfill site after 

closure. A provision for post-closure costs is recognised as a 

liability when the obligation for post-closure costs arises. 

The provision is measured based on the present value of 

future cash flows expected to be incurred, taking into account 

future events including new legal requirements, and known 

improvements in technology, where there is sufficient evidence 

that these events will occur. The provision includes all other 

costs associated with landfill post-closure. 

Amounts provided for landfill post-closure are capitalised to the 

landfill asset where they give rise to future economic benefits 

to be obtained. Components of the capitalised landfill asset are 

depreciated over their useful lives. The discount rate used is a 

rate that reflects current market assessments of the time value 

of money and the risks specific to the liability. 

Goods and Services Tax 

These financial statements have been prepared exclusive of GST, 

except for receivables and payables, which are GST inclusive. 

Where GST is not recoverable as an input tax, it is recognised 

as part of the related asset or expense 

Budget Figures 

budget figures have been prepared in accordance NZ GAAP 

and are consistent with the accounting policies adopted by the 

Council for the preparation of the financial statements. 

Cost Allocation 

HDC has derived the net cost of service for each significant 

activity of the Council using a system of cost allocation. 

Direct Costs are charged directly to significant activities. 

Indirect costs are charged to significant activities based on cost 

drivers and related activity/usage information. ‘Direct’ costs are 

those costs directly attributable to a significant activity. 

‘Indirect costs’ are those costs, which cannot be identified in an 

economically feasible manner with a specific significant activity. 

The costs of internal services not directly charged to activities 

are allocated as overheads using appropriate cost drivers such 

as actual usage, staff numbers and the like. 

Critical Accounting Estimates and Assumptions 

The preparation of prospective financial statements in 

conformity with NZ IFRS requires management to make 

judgments, estimates and assumptions that affect the application 

of policies and reported amounts of assets and liabilities, income 

and expenses. The estimates and associated assumptions are 

based on historical experience and various other factors that are 

believed to be reasonable under the circumstances, the results 

of which form the basis of making the judgments about carrying 

values of assets and liabilities that are not readily apparent from 

other sources. 

Management has exercised the following critical judgments in 

applying the accounting policies to the preparation of the 2012- 

2022 Long Term Plan. Judgments have been made over useful lives 

of property, plant and equipment and intangible assets, landfill 

aftercare provision, probability of reaching vesting date for long 

service liability, sick leave provisions, valuations of infrastructural 

assets and the long term effects on HDC’s assets as a result of 

the Canterbury earthquakes. Therefore, actual results may differ 

from these estimates. 

The judgments and underlying assumptions are reviewed on an 

ongoing basis. Revisions to accounting estimates are recognised 

in the period to which the estimate is revised if the revision 

affects only that period or the period of the revision and future 

periods if the revision affects both current and future periods. 

The budget figures are those approved by the Council at the 

beginning of the year after a period of consultation with the 

public as part of the Long Term Plan or Annual Plan process. The 

160


Forecast Statement of Comprehensive Income 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Revenue 


Targeted Rates for Water Supplies 446 444 471 500 527 556 586 618 652 688 726 

Targeted Rates for Other Services 6,997 7,627 7,987 8,352 8,673 9,038 9,380 9,776 10,206 10,662 11,173 

Development Contributions 697 390 405 419 422 423 438 454 464 485 445 

Dividends Received 33 72 74 77 79 82 84 86 89 92 95 

NZTA Subsidies and Other Grants 3,529 3,383 3,386 3,494 3,610 3,734 3,859 3,994 4,144 4,310 4,482 

Hanmer Springs Thermal Pools and Spa 9,632 9,572 10,004 10,305 10,923 11,257 11,591 12,283 12,656 13,044 13,840 

Other Income 2,408 2,529 2,781 2,879 4,362 3,334 2,769 3,033 3,004 3,035 3,134 

Vested Asset Income 646 218 227 234 242 339 352 366 382 399 332 

Gains/(Losses) on Forestry Revaluation 0 277 13 (63) (1,465) (500) 168 (85) (48) 30 11 

29,668 30,072 31,363 32,655 34,034 35,205 36,388 37,778 39,118 40,589 42,251 

Less Expenditure 


Direct Operating Expenses 13,362 13,989 14,473 15,062 15,293 15,891 16,403 16,750 17,240 17,864 18,368 

External Interest Paid 831 969 1,203 1,297 1,359 1,391 1,375 1,281 1,156 1,000 828 

Depreciation 5,662 5,805 6,221 6,315 6,437 6,767 6,785 6,965 7,388 7,441 7,706 

28,654 30,299 31,799 32,877 33,616 34,920 35,744 36,495 37,646 38,564 39,560 

Net Surplus/(Deficit) before tax 1,014 (227) (436) (222) 418 285 643 1,283 1,472 2,025 2,690 

Tax expense 0 0 0 0 0 0 0 0 0 0 0 

Net Surplus/(Deficit) after tax 1,014 (227) (436) (222) 418 285 643 1,283 1,472 2,025 2,690 

Add Other Comprehensive Income 

Gains/(Losses) on Asset Revaluation 0 22,017 4,938 5,885 24,576 4,692 6,194 29,592 5,844 8,055 34,904 

0 22,017 4,938 5,885 24,576 4,692 6,194 29,592 5,844 8,055 34,904 

Total Comprehensive Income 1,014 21,789 4,501 5,663 24,994 4,976 6,838 30,876 7,316 10,080 37,595 

Summary of Capital Expenditure 

Water Supplies 1,536 2,092 704 894 775 1,161 752 725 817 736 1,509 

Sewerage 149 919 151 1,551 168 237 465 128 73 83 67 

Stormwater and Drainage 0 294 62 0 0 153 0 0 0 0 85 

Roads and Footpaths 4,204 3,643 3,781 3,901 4,035 4,242 4,416 4,588 4,778 4,996 5,166 

Community Services and Facilities 255 441 436 452 2,442 1,482 373 263 746 261 280 

Environment and Safety 133 234 197 113 133 190 197 0 97 102 0 

District Promotion 0 0 0 0 0 0 0 0 0 0 0 

Hanmer Springs Thermal Pools and Spa 200 2,650 1,455 644 944 115 119 124 130 136 142 

Governance 0 0 36 0 0 40 0 0 45 0 0 

Corporate Services 387 490 551 301 367 380 334 410 428 379 468 

6,864 10,763 7,374 7,856 8,864 8,000 6,657 6,239 7,114 6,693 7,717 


161


Forecast Statement of Comprehensive Income and Group Activity Summaries 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Reconciliation between Income and Activity Summaries 

Water Supplies 4,336 4,578 4,710 4,970 5,428 5,644 5,802 6,044 6,296 6,558 6,821 

Sewerage 770 691 757 835 921 1,044 1,155 1,284 1,431 1,599 1,772 



Community Services and Facilities 2,748 2,555 2,605 2,725 2,748 2,758 2,880 2,972 3,067 3,166 3,228 

Environment and Safety 4,286 4,480 4,642 4,796 4,903 5,081 5,232 5,385 5,568 5,753 5,946 



Governance 910 1,007 1,069 1,175 1,114 1,204 1,264 1,224 1,330 1,395 1,357 

Corporate Services 5,724 6,038 6,705 7,043 8,616 7,715 7,241 7,518 7,543 7,480 7,538 

36,432 36,683 38,626 40,247 43,294 43,708 44,488 46,309 47,828 49,332 51,150 

Less Council Overheads (4,700) (4,881) (5,035) (5,247) (5,348) (5,511) (5,661) (5,813) (6,044) (6,170) (6,354) 

Less Internal Interest Paid (1,971) (2,007) (2,241) (2,282) (2,447) (2,493) (2,607) (2,634) (2,618) (2,603) (2,556) 

Add Gains/(Losses) on Forestry Revaluation 0 277 13 (63) (1,465) (500) 168 (85) (48) 30 11 

29,761 30,072 31,362 32,655 34,034 35,205 36,388 37,778 39,118 40,589 42,250 

Reconciliation between Expenditure and Activity Summaries 

Water Supplies 4,288 4,548 4,762 4,847 5,029 5,110 5,241 5,447 5,545 5,649 5,943 

Sewerage 924 1,085 1,175 1,194 1,354 1,385 1,409 1,485 1,491 1,469 1,507 



Community Services and Facilities 4,206 4,524 4,510 4,693 4,782 4,918 5,122 5,221 5,342 5,502 5,623 

Environment and Safety 4,335 4,505 4,662 4,833 4,914 5,103 5,225 5,400 5,554 5,763 5,923 



Governance 910 1,007 1,069 1,175 1,114 1,204 1,264 1,224 1,330 1,395 1,357 

Corporate Services 5,756 6,028 6,418 6,748 6,958 7,183 7,436 7,463 7,542 7,557 7,597 

35,419 37,188 39,076 40,406 41,410 42,924 44,013 44,941 46,308 47,337 48,470 

Less Council Overheads (4,700) (4,881) (5,035) (5,247) (5,348) (5,511) (5,661) (5,813) (6,044) (6,170) (6,354) 

Less Internal Interest Paid (1,971) (2,007) (2,241) (2,282) (2,447) (2,493) (2,607) (2,634) (2,618) (2,603) (2,556) 

28,748 30,299 31,800 32,878 33,616 34,920 35,744 36,495 37,645 38,564 39,560 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Equity at the start of the year 309,178 319,904 341,694 346,195 351,857 376,852 381,828 388,665 419,540 426,857 436,936 

Add Total Comprehensive Income for Year 1,014 21,789 4,501 5,663 24,994 4,976 6,838 30,876 7,316 10,080 37,595 

Equity at the end of the year 310,192 341,694 346,195 351,858 376,852 381,828 388,666 419,540 426,857 436,936 474,531 


162



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Public Equity 

Accumulated General Reserves 148,940 177,730 178,413 179,880 180,772 181,040 181,025 180,255 179,841 179,100 179,140 

Reserve Funds 1,970 (21,804) (22,923) (24,613) (25,087) (25,071) (24,413) (22,360) (20,474) (17,707) (15,057) 

Asset Revaluation Reserves 159,282 185,768 190,705 196,592 221,166 225,858 232,053 261,645 267,489 275,543 310,449 

Total Public Equity 310,192 341,694 346,195 351,858 376,852 381,828 388,666 419,540 426,857 436,936 474,531 

Current Assets 

Cash & Cash Equivalents 181 435 413 295 338 482 167 348 241 92 370 

Accounts Receivable 1,455 1,822 1,879 1,936 1,997 2,062 2,121 2,181 2,251 2,326 2,403 

Inventories 171 167 173 178 184 190 195 201 207 214 221 

Other current assets 470 385 397 409 422 435 448 460 475 491 507 

2,277 2,809 2,861 2,817 2,941 3,169 2,930 3,190 3,173 3,123 3,501 

Non-Current Assets 

Operational Assets 30,973 43,769 45,453 45,504 45,635 46,910 47,062 47,091 48,576 48,665 48,740 

Restricted Assets 36,904 36,644 40,942 40,666 42,719 46,663 45,845 44,909 48,993 47,998 47,015 

Infrastructural Assets 255,653 279,401 279,528 287,192 312,018 312,730 319,464 349,240 349,242 357,454 393,278 

Intangible Assets 41 54 36 25 16 12 8 5 4 3 3 

Forestry Assets 2,182 2,489 2,502 2,438 973 473 642 557 509 538 549 

Investments in Council Controlled Organisations 269 269 269 269 269 269 269 269 269 269 269 

Other Financial Assets 56 61 61 61 61 61 61 61 61 61 61 

Investments 0 0 0 0 0 0 0 0 0 0 0 

326,078 362,688 368,791 376,154 401,691 407,117 413,351 442,131 447,654 454,989 489,915 

Total Assets 328,355 365,496 371,653 378,972 404,632 410,286 416,281 445,321 450,827 458,112 493,416 

Current Liabilities 

Accounts Payable 4,504 3,102 3,199 3,296 3,401 3,511 3,610 3,714 3,832 3,960 4,091 

Non Current Portion of Term Debt 0 0 0 0 0 1,000 2,000 2,000 3,000 2,500 0 

Other Current Liabilities 8 1,858 1,916 1,974 2,037 2,103 2,163 2,224 2,295 2,372 2,451 

4,512 4,960 5,115 5,270 5,437 6,614 7,773 7,938 9,127 8,832 6,542 

Non Current Liabilities 

Term Debt 13,500 18,500 20,000 21,500 22,000 21,500 19,500 17,500 14,500 12,000 12,000 

Other Non Current Liabilities 151 343 343 343 343 343 343 343 343 343 343 

13,651 18,843 20,343 21,843 22,343 21,843 19,843 17,843 14,843 12,343 12,343 

Total Liabilities 18,163 23,803 25,458 27,113 27,780 28,457 27,616 25,781 23,970 21,175 18,885 

Net Assets 310,192 341,694 346,195 351,858 376,851 381,829 388,665 419,540 426,857 436,937 474,531 



163


Forecast Statement of Cash Flows 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Cash Flows from Operating Activities 

Cash provided from: 

Rates 12,723 13,630 14,473 15,311 15,862 16,536 17,126 17,646 18,428 19,193 19,912 

Hanmer Springs Thermal Reserve 9,632 9,572 10,004 10,305 10,923 11,257 11,591 12,283 12,656 13,044 13,840 

Other Income 6,634 6,230 6,503 6,723 8,319 7,413 6,995 7,407 7,527 7,739 7,968 

Dividends Received 33 72 74 77 79 82 84 86 89 92 95 

Money Received from Other Authorities 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 

31,265 31,747 33,297 34,658 37,426 37,530 38,040 39,666 40,943 42,312 44,057 

Cash paid to: 

Cost of Services 22,161 23,369 24,225 25,115 25,658 26,592 27,431 28,089 28,919 29,924 30,824 

Interest Paid 831 969 1,203 1,297 1,359 1,391 1,375 1,281 1,156 1,000 828 

Money paid to Other Authorities 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 

25,235 26,580 27,671 28,655 29,261 30,226 31,049 31,613 32,318 33,167 33,895 

Net Cash Flow from Operating Activities 6,030 5,167 5,626 6,003 8,166 7,304 6,991 8,053 8,625 9,145 10,162 

Cash Flows from Investing Activities 


Sale of Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 

Sale of Investments 0 0 0 0 0 0 0 0 0 0 0 

0 0 0 0 0 0 0 0 0 0 0 

Cash paid to: 

Purchase of Fixed Assets 6,218 10,545 7,147 7,622 8,622 7,661 6,306 5,872 6,732 6,293 7,384 

Purchase of Investments 0 0 0 0 0 0 0 0 0 0 0 

6,218 10,545 7,147 7,622 8,622 7,661 6,306 5,872 6,732 6,293 7,384 

Net Cash Flows from Investing Activities (6,218) (10,545) (7,147) (7,622) (8,622) (7,661) (6,306) (5,872) (6,732) (6,293) (7,384) 

Cash Flows from Financing Activities 


Loans Raised 400 5,098 1,500 1,500 500 500 0 0 0 0 0 

400 5,098 1,500 1,500 500 500 0 0 0 0 0 

Cash paid to: 

Loan Repayments 0 0 0 0 0 0 1,000 2,000 2,000 3,000 2,500 

0 0 0 0 0 0 1,000 2,000 2,000 3,000 2,500 

Net Cash Flows from Financing Activities 400 5,098 1,500 1,500 500 500 (1,000) (2,000) (2,000) (3,000) (2,500) 

Net Increase/(Decrease) in Cash Held 212 (280) (22) (119) 44 143 (315) 181 (107) (149) 278 

Opening Cash Balance (31) 715 435 413 295 338 482 167 348 241 92 

Closing Cash Balance 181 435 413 295 338 482 167 348 241 92 370 


164


Forecast Statement of Cash Flows Reconciliation 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Net Surplus/(Deficit) after tax 1,014 (227) (436) (222) 418 285 643 1,283 1,472 2,025 2,690 

Non Cash Items: 

Vested Assets (646) (218) (227) (234) (242) (339) (352) (366) (382) (399) (332) 

Gain/Loss on Forestry Valuation 0 (277) (13) 63 1,465 500 (168) 85 48 (30) (11) 

Depreciation 5,662 5,805 6,221 6,316 6,437 6,767 6,786 6,965 7,388 7,441 7,707 

5,016 5,309 5,981 6,145 7,660 6,927 6,266 6,684 7,055 7,013 7,364 

6,030 5,082 5,545 5,923 8,079 7,212 6,909 7,967 8,527 9,038 10,054 

Movements in Working Capital: 

(Increase)/Decrease in Accounts Receivable 0 60 57 58 61 65 59 61 69 75 78 

(Increase)/Decrease in Inventories 0 5 5 5 6 6 5 6 6 7 7 

(Increase)/Decrease in Other current assets 0 13 12 12 13 14 12 13 15 16 16 

Increase/(Decrease) in Accounts Payable 0 (102) (97) (97) (104) (111) (99) (103) (118) (128) (131) 

Increase/(Decrease) in Other Current Liabilities 0 (61) (58) (58) (63) (66) (60) (62) (71) (77) (79) 

0 (85) (81) (80) (87) (92) (82) (86) (98) (107) (108) 

Net Cash Flow from Operating 6,030 5,167 5,626 6,003 8,166 7,304 6,991 8,053 8,625 9,145 10,162 


165




($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 


District Wide Water 97 33 34 35 36 51 53 55 57 60 50 

District Wide Water - Miox Treatment 0 758 0 0 0 0 0 0 0 0 0 

District Wide Water - Full Drinking Water Standards 0 0 0 0 0 0 0 0 0 0 0 

Amberley Water 15 262 10 279 142 449 109 0 0 0 0 

Leithfield Beach Water 8 0 0 0 0 0 0 0 0 0 0 

Ashley Rural Water 138 310 177 183 189 196 203 211 220 230 374 

Culverden Town Water 60 5 72 8 49 6 6 9 6 7 10 

Waiau Town Water 9 206 1 1 1 1 1 1 1 1 1 

Amuri Plains Water 0 5 5 5 5 5 5 6 6 6 6 

Balmoral Water 16 16 2 3 4 3 2 5 3 3 6 

Waiau Rural Water 26 24 24 18 18 19 20 21 139 22 23 

Cheviot Water 708 81 143 82 84 87 91 94 98 103 108 

Waipara Town Water 2 20 0 0 0 0 0 0 0 0 0 

Hanmer Springs Water 246 162 26 24 22 31 24 27 26 37 652 

Hawarden-Waikari Water 17 3 0 46 4 1 4 51 5 1 0 

Hurunui Rural Water 197 209 210 212 219 312 235 245 255 267 279 

1,536 2,092 704 894 775 1,161 752 725 817 736 1,509 

Broken down to: 

Growth Related Capital Expenditure 97 33 44 46 179 51 161 55 57 60 50 

Capital Expenditure to achieve Improved Levels of Service 302 1,534 82 24 24 25 26 27 29 30 31 

Renewals of Existing Assets 1,138 526 578 824 572 1,085 565 642 732 646 1,428 

1,536 2,092 704 894 775 1,161 752 725 817 736 1,509 

Sewerage 

District Wide Sewer 97 33 34 35 36 51 53 55 57 60 50 

Amberley Sewer 0 486 11 175 21 12 244 8 0 0 0 

Cheviot Sewer 10 40 0 11 78 0 0 36 0 0 0 

Greta Valley Sewer 3 19 2 20 2 2 2 2 3 3 3 

Motunau Beach Sewer 0 35 0 0 12 13 119 0 0 0 0 

Hanmer Springs Sewer 32 235 104 1,305 11 17 12 19 13 20 14 

Hawarden Sewer 8 0 0 5 0 142 0 0 0 0 0 

Waikari Sewer 0 71 0 0 8 0 35 7 0 0 0 

149 919 151 1,551 168 237 465 128 73 83 67 



Capital Expenditure to achieve Improved Levels of Service 5 101 94 1,385 78 104 0 0 0 0 0 

Renewals of Existing Assets 32 311 23 131 54 83 168 73 16 23 17 

149 919 151 1,551 168 237 465 128 73 83 67 


District Wide Stormwater 0 0 0 0 0 0 0 0 0 0 0 

Amberley Beach Foreshore Protection 0 0 0 0 0 0 0 0 0 0 0 

Amberley Stormwater 0 294 0 0 0 84 0 0 0 0 0 

Hanmer Springs Stormwater 0 0 62 0 0 69 0 0 0 0 85 

0 294 62 0 0 153 0 0 0 0 85 



Capital Expenditure to achieve Improved Levels of Service 0 194 62 0 0 153 0 0 0 0 85 


0 294 62 0 0 153 0 0 0 0 85 


166


Forecast Summary of Capital Expenditure (Cont'd) 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 


Subsidised Roading 3,916 3,426 3,561 3,679 3,806 4,004 4,157 4,325 4,509 4,715 4,873 

Special Purpose Roading 11 16 17 17 18 18 19 20 21 22 23 

Unsubsidised Roading 27 25 26 27 28 29 30 31 32 34 35 

Road Safety Programme 0 0 0 0 0 0 0 0 0 0 0 

Amberley Ward Roadside Construction 42 33 29 25 26 26 39 35 30 31 33 

Amuri Ward Roadside Construction 50 22 23 24 24 25 26 27 29 30 31 

Cheviot Ward Roadside Construction 26 30 31 32 33 35 36 37 39 41 43 

Glenmark Ward Roadside Construction 0 0 0 0 0 0 0 0 0 0 0 

Hanmer Springs Ward Roadside Construction 85 75 78 81 83 86 90 93 97 102 106 

Hurunui Ward Roadside Construction 16 16 17 17 18 18 19 20 21 22 23 

4,172 3,643 3,781 3,901 4,035 4,242 4,416 4,588 4,778 4,996 5,166 



Capital Expenditure to achieve Improved Levels of Service (6) 70 73 75 78 81 84 87 91 95 99 

Renewals of Existing Assets 3,725 3,421 3,549 3,662 3,788 3,925 4,086 4,245 4,420 4,622 4,834 

4,172 3,643 3,781 3,901 4,035 4,242 4,416 4,588 4,778 4,996 5,166 



- Library 93 65 68 70 72 75 78 81 84 88 92 

- Community Programmes 0 0 0 0 0 0 0 0 0 0 0 

- Grants 0 0 0 0 0 0 0 0 0 0 0 

- Amenities 0 0 0 0 0 0 0 0 0 0 0 

Property 

- Rental Property 20 0 31 0 0 0 0 0 0 0 0 

- Public Toilets 0 0 0 0 0 104 0 0 0 0 0 

- Medical Centres 0 0 0 0 0 1,151 0 0 0 0 0 

- Halls 15 25 2 206 2 2 2 2 3 3 3 

- Pools 0 2 2 2 2 2 2 2 3 3 3 

- Township Maintenance 12 89 26 21 21 21 34 22 256 25 26 

Reserves 

- District Reserves 72 72 74 117 1,230 82 86 89 93 97 102 

- Cemeteries 5 5 130 5 6 6 6 6 6 7 7 

- Amberley Reserves 18 20 83 11 11 12 24 37 278 14 14 

- Amuri Reserves 8 9 9 9 9 16 10 11 11 12 19 

- Cheviot Reserves 0 0 0 0 0 0 0 0 0 0 0 

- Glenmark Reserves 0 0 0 0 0 0 0 0 0 0 0 

- Hanmer Springs Reserves 12 110 10 11 1,088 12 131 12 13 14 14 

- Hurunui Reserves 0 0 0 0 0 0 0 0 0 0 0 

- Self Funded Reserves 0 45 0 0 0 0 0 0 0 0 0 

255 441 436 452 2,442 1,482 373 263 746 261 280 


Growth Related Capital Expenditure 16 55 151 27 1,105 29 161 31 536 34 35 

Capital Expenditure to achieve Improved Levels of Service 163 261 216 302 1,222 1,376 132 149 124 136 150 


256 441 436 452 2,442 1,482 373 263 746 261 280 


167





($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 



- Civil Defence 44 50 26 27 0 0 30 0 0 34 0 

- Rural Fire Control 63 184 94 32 133 104 108 0 0 0 0 

Resource Management & Planning 

- Resource Management 0 0 26 0 0 29 0 0 32 0 0 

- Subdivision Inspection 26 0 0 27 0 0 30 0 0 34 0 

Compliance & Regulatory Functions 

- Building Control 0 0 26 27 0 29 30 0 32 34 0 

- Public Health 0 0 26 0 0 29 0 0 32 0 0 

- Liquor Licensing 0 0 0 0 0 0 0 0 0 0 0 

- Animal Control 0 0 0 0 0 0 0 0 0 0 0 

Waste Management 

- Transfer Stations 0 0 0 0 0 0 0 0 0 0 0 

- Litter Bin Collection 0 0 0 0 0 0 0 0 0 0 0 

- Refuse Collection 0 0 0 0 0 0 0 0 0 0 0 

133 234 197 113 133 190 197 0 97 102 0 





133 234 197 113 133 190 197 0 97 102 0 


Tourism 0 0 0 0 0 0 0 0 0 0 0 

0 0 0 0 0 0 0 0 0 0 0 





0 0 0 0 0 0 0 0 0 0 0 


Hanmer Springs Thermal Pools & Spa 200 2,650 1,455 644 944 115 119 124 130 136 142 

200 2,650 1,455 644 944 115 119 124 130 136 142 



Capital Expenditure to achieve Improved Levels of Service 0 2,550 1,351 537 833 0 0 0 0 0 0 


200 2,650 1,455 644 944 115 119 124 130 136 142 


168





($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Governance 

Governance 0 0 36 0 0 40 0 0 45 0 0 

Hurunui - Waiau Water Zone Committee 0 0 0 0 0 0 0 0 0 0 0 

0 0 36 0 0 40 0 0 45 0 0 





0 0 36 0 0 40 0 0 45 0 0 


Treasury 0 0 0 0 0 0 0 0 0 0 0 

Forestry 0 0 0 0 0 0 0 0 0 0 0 

Council Offices & Depots 32 160 208 0 0 0 0 0 0 0 0 

Information Services 136 120 125 129 133 138 143 149 156 163 170 

Support Services 0 0 0 0 0 0 0 0 0 0 0 

Human Resources & Policy 0 0 0 0 0 0 0 0 0 0 0 

Financial Services 0 0 0 0 0 0 0 0 0 0 0 

CEO Department 0 0 26 0 0 29 0 0 32 0 0 

Engineering Services 219 210 166 172 233 184 191 261 207 217 298 

Environmental Services 0 0 26 0 0 29 0 0 32 0 0 

387 490 551 301 367 380 334 410 428 379 468 





386 490 551 301 367 380 334 410 428 379 468 

Total Capital Expenditure 

Water Supplies 1,536 2,092 704 894 775 1,161 752 725 817 736 1,509 

Sewerage 149 919 151 1,551 168 237 465 128 73 83 67 



Community Services and Facilities 255 441 436 452 2,442 1,482 373 263 746 261 280 



Hanmer Springs Thermal Pools and Spa 200 2,650 1,455 644 944 115 119 124 130 136 142 

Governance 0 0 36 0 0 40 0 0 45 0 0 


6,832 10,763 7,374 7,856 8,864 8,000 6,657 6,239 7,114 6,693 7,717 


Growth Related Capital Expenditure 678 847 388 272 1,490 368 865 397 917 433 368 

Capital Expenditure to achieve Improved Levels of Service 574 4,909 2,116 2,329 2,241 1,744 248 269 250 268 372 

Renewals of Existing Assets 5,580 5,007 4,870 5,255 5,134 5,888 5,544 5,572 5,947 5,992 6,977 

6,832 10,763 7,374 7,856 8,864 8,000 6,657 6,239 7,114 6,693 7,717 


169


Forecast Summary of Depreciation and Amortisation Expenses 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Water Supplies 850 932 967 959 1,064 1,055 1,058 1,161 1,148 1,138 1,316 

Sewerage 320 366 373 368 408 415 411 457 450 441 491 



Community Services and Facilities 351 398 400 460 485 487 517 519 521 542 544 



Hanmer Springs Thermal Pools and Spa 786 837 881 912 848 820 794 804 817 849 861 

Governance 0 6 9 9 9 10 10 10 10 10 10 


5,662 5,805 6,221 6,315 6,437 6,767 6,785 6,965 7,388 7,441 7,706 


170

Funding Impact Statement (and Rates System) 


Introduction 

The funding impact statement for the Council as a whole and the 

groups of activities, in accordance with section 5 of schedule 10 

of the Local Government Act 2002 and the Local Government 

(Financial Reporting) Regulations 201, are presented in this 

section. 

These Funding Impact Statements do not comply with Generally 

Accepted Accounting Practice (GAAP) as they do not recognise 

depreciation and movements in the valuation of assets and also 

they do not show capital income (Subsidies and Development 

Contributions) as operating income. On each Funding Impact 

Statement, a reconciliation between the surplus/(deficit) as 

per the relevant financial summary and the surplus/(deficit) of 

operating funding has been presented. 

In addition to the legislation stated above, the funding impact 

statement has been prepared in accordance with clause 15 of 

schedule 10 of the Local Government Act 2002. It must set out 

the following: 

• The revenue and financing mechanisms used; 

• An indicative level or amount of funding for each 

mechanism; 

• Explanatory information supporting the use of general 

and targeted rates; 

• A summary of the total rates requirement; 

• Subsidies, grants and contributions; and 

• Revenue and funding mechanisms. 

The funding mechanisms described in the funding impact 

statement apply for the entire period covered by the LTP. The 

Funding Impact Statement should be read in conjunction with 

the Revenue and Financing Policy (page 230) which describes 

how costs for services are collected. 

171


Hurunui District Council - Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 

Sources of operating funding 

General rates, uniform annual general charges, rates penalties 5,337 5,628 6,087 6,534 6,739 7,021 7,242 7,336 7,657 7,932 8,105 

Targeted rates - other than for water supply 6,992 7,627 7,987 8,352 8,673 9,038 9,380 9,776 10,206 10,662 11,173 

Subsidies and grants for operating purposes 1,728 1,563 1,612 1,661 1,713 1,770 1,820 1,872 1,931 1,996 2,062 

Fees, charges and targeted rates for water supply 446 444 471 500 527 556 586 618 652 688 726 

Interest and dividends from investments 33 72 74 77 79 82 84 86 89 92 95 

Local authorities fuel tax, fines, infringement fees, and other receipts 11,984 12,031 12,713 13,110 15,208 14,512 14,279 15,233 15,573 15,990 16,882 

Total operating funding 26,521 27,365 28,943 30,232 32,939 32,979 33,391 34,921 36,108 37,361 39,043 

Applications of operating funding 

Payments to staff and suppliers 22,982 23,526 24,375 25,265 25,820 26,763 27,585 28,248 29,101 30,122 31,026 

Finance costs 0 969 1,203 1,297 1,359 1,391 1,375 1,281 1,156 1,000 828 

Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 

Total applications of operating funding 22,982 24,494 25,578 26,562 27,179 28,154 28,960 29,530 30,257 31,122 31,854 

Surplus (deficit) of operating funding 3,539 2,871 3,365 3,670 5,760 4,825 4,431 5,392 5,851 6,239 7,189 

Sources of capital funding 

Subsidies and grants for capital expenditure 1,801 1,821 1,774 1,833 1,896 1,965 2,039 2,122 2,212 2,313 2,420 

Development and financial contributions 1,336 608 632 653 664 762 790 820 845 884 777 

Increase (decrease) in debt 505 4,265 834 1,783 815 998 (624) (1,256) (1,327) (2,030) (1,497) 

Gross proceed from sale of assets 0 0 0 0 0 0 0 0 0 0 0 

Lump sum contributions 0 0 0 0 0 0 0 0 0 0 0 

Total sources of capital funding 3,642 6,694 3,240 4,269 3,375 3,725 2,205 1,685 1,731 1,168 1,700 

Applications of capital funding 

Capital expenditure 

- to meet additional demand 677 848 387 272 1,489 368 865 397 917 433 368 

- to improve the level of service 640 4,909 2,116 2,329 2,241 1,744 248 269 250 268 372 

- to replace existing assets 5,548 5,007 4,870 5,255 5,134 5,888 5,544 5,572 5,947 5,992 6,977 

Increase (decrease) in reserves 317 (1,198) (768) 84 271 550 (21) 839 468 714 1,172 

Increase (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0 

Total applications of capital funding 7,181 9,565 6,605 7,939 9,135 8,549 6,636 7,077 7,581 7,407 8,888 

Surplus (deficit) of capital funding (3,539) (2,871) (3,365) (3,670) (5,760) (4,825) (4,431) (5,392) (5,851) (6,239) (7,188) 

Funding balance 0 0 0 0 0 0 0 0 0 0 0 

Reconciliation between Financial Summary and Funding Impact Statement 

Total Comprehesive Income 1,014 21,789 4,501 5,663 24,994 4,976 6,838 30,876 7,316 10,080 37,595 

Add depreciation 5,662 5,805 6,221 6,315 6,437 6,767 6,785 6,965 7,388 7,441 7,706 

Less gains on asset revaluation 0 (22,017) (4,938) (5,885) (24,576) (4,692) (6,194) (29,592) (5,844) (8,055) (34,904) 

Less gains on forestry revaluation 0 (277) (13) 63 1,465 500 (168) 85 48 (30) (11) 

Less development and financial contributions (1,336) (608) (632) (653) (664) (762) (791) (820) (845) (884) (778) 

Less subsidies and grants for capital expenditure (1,801) (1,821) (1,774) (1,833) (1,896) (1,965) (2,039) (2,122) (2,212) (2,313) (2,420) 

Less increase in reserves 0 0 0 0 0 0 0 0 0 0 0 



172

Water Supplies - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 


General rates, uniform annual general charges, rates penalties 0 0 0 0 271 271 271 271 271 271 271 


Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 


Internal charges and overheads recovered 10 9 6 7 7 18 45 74 104 133 171 

Local authorities fuel tax, fines, infringement fees, and other receipts 109 108 111 115 118 122 126 129 133 138 142 




Finance costs 385 310 386 372 358 332 356 353 340 323 305 

Internal charges and overhead applied 874 909 938 969 996 1,026 1,054 1,082 1,115 1,147 1,181 



Surplus (deficit) of operating funding 548 718 780 943 1,319 1,431 1,455 1,586 1,720 1,860 2,016 


Subsidies and grants for capital expenditure 0 114 0 0 0 0 0 0 0 0 0 

Development and financial contributions 351 130 135 140 144 158 165 171 178 187 177 

Increase (decrease) in debt 637 1,130 (210) (189) (417) (157) (596) (761) (810) (1,039) (413) 



Total sources of capital funding 988 1,373 (75) (49) (273) 1 (431) (590) (631) (853) (236) 



- to meet additional demand 96 33 44 46 179 51 161 55 57 60 50 

- to improve the level of service 336 1,534 82 24 24 25 26 27 28 30 31 

- to replace existing assets 1,104 526 578 824 572 1,085 565 642 732 646 1,428 

Increase (decrease) in reserves 0 0 0 0 271 271 271 271 271 271 271 


Total applications of capital funding 1,536 2,092 704 894 1,046 1,432 1,024 996 1,089 1,008 1,781 

Surplus (deficit) of capital funding (548) (718) (780) (942) (1,319) (1,431) (1,455) (1,586) (1,720) (1,860) (2,016) 




Operating Surplus/(Deficit) as per Financial Summary for 

Water 49 30 (52) 123 399 534 561 596 751 909 878 

Add depreciation 850 932 967 959 1,064 1,055 1,058 1,161 1,148 1,138 1,316 

Less development and financial contributions (351) (130) (135) (140) (144) (158) (165) (171) (178) (187) (177) 

Less subsidies and grants for capital expenditure 0 (114) 0 0 0 0 0 0 0 0 0 

Less increase in reserves 0 0 0 0 0 0 0 0 0 0 0 

Surplus (deficit) of operating funding 548 718 780 943 1,319 1,431 1,455 1,586 1,720 1,860 2,016 


173


Sewerage - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 



Targeted rates - other than for water supply 589 618 684 758 842 938 1,046 1,171 1,313 1,475 1,662 





Total operating funding 589 618 684 759 843 938 1,047 1,171 1,313 1,476 1,662 


Payments to staff and suppliers 219 289 304 308 312 316 331 335 351 357 375 

Finance costs 254 293 360 374 486 501 511 534 524 501 466 

Internal charges and overhead applied 126 134 138 144 147 151 156 160 165 170 175 


Total applications of operating funding 599 716 802 825 945 969 998 1,028 1,041 1,028 1,016 

Surplus (deficit) of operating funding (10) (98) (118) (67) (103) (31) 49 143 272 448 647 




Increase (decrease) in debt (16) 947 196 1,543 193 163 307 (128) (317) (488) (689) 



Total sources of capital funding 159 1,017 268 1,618 271 268 416 (15) (199) (365) (580) 




- to improve the level of service 5 101 94 1,385 78 104 0 0 0 0 0 

- to replace existing assets 32 311 23 131 54 83 168 73 16 23 17 



Total applications of capital funding 149 919 151 1,551 168 237 465 128 73 83 67 

Surplus (deficit) of capital funding 10 98 118 67 103 31 (49) (143) (272) (448) (647) 




Sewer (154) (394) (418) (360) (433) (341) (254) (201) (60) 130 265 

Add depreciation 320 366 373 368 408 415 411 457 450 441 491 


Surplus (deficit) of operating funding (10) (98) (118) (67) (103) (31) 49 143 272 448 647 


174


Stormwater and Drainage - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 



Targeted rates - other than for water supply 218 279 286 281 278 286 280 275 271 267 277 





Total operating funding 218 279 390 387 388 399 396 395 395 395 409 



Finance costs 135 106 118 113 102 91 91 78 66 52 36 



Total applications of operating funding 166 177 268 254 239 291 232 259 217 208 274 

Surplus (deficit) of operating funding 52 102 121 133 148 108 164 136 178 187 134 




Increase (decrease) in debt (91) 175 (77) (151) (167) 18 (192) (165) (208) (219) (75) 



Total sources of capital funding (52) 192 (59) (133) (148) 45 (164) (136) (178) (187) (49) 




- to improve the level of service 0 194 62 0 0 153 0 0 0 0 85 




Total applications of capital funding 0 294 62 0 0 153 0 0 0 0 85 

Surplus (deficit) of capital funding (52) (102) (121) (133) (148) (108) (164) (136) (178) (187) (134) 




Stormwater 74 73 90 102 113 82 137 106 149 161 95 





175


Roading and Footpaths - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 




Subsidies and grants for operating purposes 1,728 1,563 1,612 1,661 1,713 1,770 1,820 1,872 1,931 1,996 2,062 







Finance costs 0 2 2 2 1 1 1 1 0 0 0 






Subsidies and grants for capital expenditure 1,801 1,707 1,774 1,833 1,896 1,965 2,039 2,122 2,212 2,313 2,420 


Increase (decrease) in debt 219 (3) (3) (3) (4) (4) (4) (4) (5) (0) (0) 



Total sources of capital funding 2,473 1,857 1,930 1,993 2,062 2,198 2,281 2,374 2,475 2,593 2,653 





- to replace existing assets 3,725 3,421 3,549 3,662 3,788 3,925 4,086 4,245 4,420 4,622 4,834 





Funding balance 0 0 0 0 0 (0) 0 0 0 0 0 



Roading and Footpaths 1,087 783 602 713 837 688 852 1,012 773 975 1,131 

Add depreciation 2,900 2,863 3,182 3,191 3,202 3,558 3,568 3,581 4,009 4,021 4,035 


Less subsidies and grants for capital expenditure (1,801) (1,707) (1,774) (1,833) (1,896) (1,965) (2,039) (2,122) (2,212) (2,313) (2,420) 



176

Community Services and Facilities - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 











Finance costs 202 262 257 241 233 284 333 319 299 306 281 

Internal charges and overhead applied 955 998 1,020 1,053 1,067 1,092 1,116 1,139 1,178 1,197 1,227 



Surplus (deficit) of operating funding (1,424) (1,810) (1,753) (1,764) (1,802) (1,907) (1,968) (1,981) (2,005) (2,057) (2,083) 




Increase (decrease) in debt (243) 14 (130) 34 365 969 (145) (199) 14 (278) (311) 



Total sources of capital funding 74 252 118 290 619 1,203 97 51 265 (15) (79) 



- to meet additional demand 16 55 151 27 1,105 29 161 31 536 34 35 

- to improve the level of service 162 261 216 302 1,222 1,376 132 149 124 136 150 


Increase (decrease) in reserves (1,605) (1,998) (2,071) (1,926) (3,626) (2,186) (2,244) (2,193) (2,486) (2,333) (2,442) 


Total applications of capital funding (1,350) (1,557) (1,635) (1,474) (1,184) (704) (1,871) (1,930) (1,740) (2,071) (2,162) 

Surplus (deficit) of capital funding 1,424 1,810 1,753 1,764 1,802 1,907 1,968 1,981 2,005 2,057 2,083 





Community Services and Facilities (1,458) (1,969) (1,905) (1,968) (2,034) (2,160) (2,243) (2,250) (2,275) (2,336) (2,396) 



Surplus (deficit) of operating funding (1,424) (1,810) (1,753) (1,764) (1,802) (1,907) (1,968) (1,981) (2,005) (2,057) (2,083) 


177


Environment and Safety - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 











Finance costs 9 8 8 10 11 11 12 12 13 13 12 








Increase (decrease) in debt (1) 2 19 14 11 9 6 2 (1) (5) (9) 



Total sources of capital funding (1) 2 19 14 11 9 6 2 (1) (5) (9) 





- to replace existing assets 128 184 171 113 133 190 197 (0) 97 102 0 

Increase (decrease) in reserves (72) (150) (87) (23) (18) (86) (66) 106 37 8 139 



Surplus (deficit) of capital funding (62) (82) (92) (77) (104) (95) (125) (104) (135) (114) (148) 




Community Services and Facilities (46) (25) (20) (37) (11) (22) 7 (15) 14 (9) 23 


Less development and financial contributions 0 0 0 0 0 0 0 0 0 0 0 



178


District Promotion - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 








Total operating funding 368 381 396 411 423 436 449 462 476 490 505 



Finance costs 0 0 0 0 0 0 0 0 0 0 0 



Total applications of operating funding 406 419 439 456 470 484 498 513 529 545 562 

Surplus (deficit) of operating funding (38) (38) (43) (45) (47) (48) (50) (51) (53) (55) (56) 




Increase (decrease) in debt 0 0 0 0 (0) (0) (0) 0 0 (0) 0 



Total sources of capital funding 0 0 0 0 (0) (0) (0) 0 0 (0) 0 






Increase (decrease) in reserves (38) (38) (43) (45) (47) (48) (50) (51) (53) (55) (56) 


Total applications of capital funding (38) (38) (43) (45) (47) (48) (50) (51) (53) (55) (56) 

Surplus (deficit) of capital funding 38 38 43 45 47 48 50 51 53 55 56 

Funding balance 0 0 0 0 0 0 0 0 0 (0) 0 



Growth and Development (44) (45) (47) (49) (50) (52) (53) (55) (56) (58) (60) 


Surplus (deficit) of operating funding (38) (38) (43) (45) (47) (48) (50) (51) (53) (55) (56) 


179


Hanmer Springs Thermal Pools and Spa - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 











Finance costs 761 936 1,027 1,074 1,147 1,147 1,147 1,147 1,147 1,147 1,147 








Increase (decrease) in debt 0 2,000 1,039 537 833 0 0 0 0 0 0 



Total sources of capital funding 0 2,000 1,039 537 833 0 0 0 0 0 0 




- to improve the level of service 0 2,550 1,351 537 833 0 0 0 0 0 0 


Increase (decrease) in reserves 2,125 1,219 1,477 1,826 2,141 2,228 2,337 2,799 2,909 3,013 3,522 











180


Governance - Group Activity Funding Impact Statement 



($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) 


General rates, uniform annual general charges, rates penalties 882 991 1,052 1,158 1,096 1,186 1,245 1,205 1,310 1,374 1,336 






Total operating funding 910 1,007 1,069 1,175 1,114 1,204 1,264 1,224 1,330 1,395 1,357 



Finance costs 0 0 0 0 0 0 0 0 0 0 0 



Total applications of operating funding 910 1,001 1,059 1,166 1,104 1,194 1,254 1,214 1,319 1,384 1,347 





Increase (decrease) in debt 0 0 0 0 0 0 0 0 0 0 0 



Total sources of capital funding 0 0 0 0 0 0 0 0 0 0 0 






Increase (decrease) in reserves 0 6 (27) 9 9 (30) 10 10 (35) 10 10 



Surplus (deficit) of capital funding 0 (6) (9) (9) (9) (10) (10) (10) (10) (10) (10) 

Funding balance 0 0 (0) 0 0 (0) (0) 0 0 0 (0) 



Hanmer Springs Thermal Pools and Spa 910 1,007 1,069 1,175 1,114 1,204 1,264 1,224 1,330 1,395 1,357 




181


Rates System 

District Wide Rates - General Rate & Uniform Annual General Charge 

A portion of the general rate requirement will be collected 

by way of a General Rate which will be set under section 13 

of the Local Government (Rating) Act 2002 and be applied 

to all rateable land based on the capital value of the land. No 

differential has been included for the collection of the General 

Rate. 

The remainder of the General Rate Requirement will be 

collected by way of a Uniform Annual General Charge which 

will be set under section 15 of the Local Government (Rating) 

Act 2002 and be applied as a fixed amount per separately used 

or inhabited part of the rating unit (Separately used or inhabited 

part of a property or building includes any part of a rating unit 

inhabited or used by a person other than the owners, and who 

has the right to use or inhabit that portion by virtue of a tenancy, 

licence or other agreement). 

The portion of the rate collected by way of capital value and 

uniform annual general charge varies from year to year to 

ensure that Council continues to comply with section 21 of the 

Local Government (Rating) Act 2002, which sets a maximum 

level of rates collected by way of a fixed charge as a percentage 

of the total rates revenue of 30%. 

The General Rates fund (or offset by surpluses recorded from), 

the following activities: 

• District Promotion and Advocacy (part of the District 

Promotion group of Activities) 

• Grants, Pensioner Housing, Residential and Other 

Property, Depots (all part of the Community Services 

and Facilities group of activities) 

• Subdivision Inspections, Health Inspection, Liquor 

Licensing, Ranging & Impounding, Building Control, 

Litter Bin Collection and Civil Defence (all part of the 

Environmental and Safety Group of Activities) 

• District Wide Stormwater (part of the Stormwater & 

Drainage Group of Activities) 

The General Rate requirement is also offset by approximately 

17.5% of the surplus recorded by the Council’s treasury function 

after allowance for Library funding is made. 

Governance 

A portion (50%) of the Governance Rate requirement will be 

collected by way of a General Rate which will be set under 

section 13 of the Local Government (Rating) Act 2002 and be 

applied to all rateable land based on the capital value of the land. 

The remainder (50%) of the Governance Rate Requirement will 

be collected by way of a Uniform Annual General Charge which 

will be set under section 15 of the Local Government (Rating) 

Act 2002 and be applied as a fixed amount per separately used 

or inhabited part of the rating unit. 

The Governance Rate funds the following activity: 

• Governance Group of Activities. 

The Governance Rate requirement is offset an allocation of 

approximately 7.5% of the surplus recorded by the Council’s 

treasury function after allowance for Library funding is made. 

Roading 

The Roading Rate requirement will be collected by way of a 

General Rate which will be set under section 13 of the Local 

Government (Rating) Act 2002, and be applied to all rateable 

land based on the capital value of the land. 

The Roading Rate funds the following activities: 

• Subsidised Roading, Special Purpose Roading, Unsubsidised 

Roading, and Road Safety Programme (all part of the Roads 

and Footpaths group of activities). 

The Roading Rate requirement is offset by an allocation of 

approximately 75% of the surplus recorded by the Council’s 

treasury function after allowance for Library funding is made. 

Resource Management - Planning 

The Planning Rate Requirement will be collected by way of a 

General Rate which will be set under section 13 of the Local 

Government (Rating) Act 2002 and be applied to all rateable 

land based on the capital value of the land. 

The Planning Rate funds, or is offset by surpluses recorded from, 

the following activities: 

• Resource Management Act Implementation, Resource 

Management Act Regulatory and Resource Management 

Act Policy Development (all part of the Environmental 

and Safety group of activities). 

182


Waste Minimisation 

The Waste Rate Requirement will collected by way of a Uniform 

Annual General Charge which will be set under section 15 of 

the Local Government (Rating) Act 2002 and be applied as a 

fixed amount per separately used or inhabited part of the rating 

unit. 

The Waste Minimisation Rate funds the following activities: 

• Recycling Centres and Transfer Stations (part of 

Environmental and Safety group of activities). 


The Canterbury Museum Rate Requirement will be collected 

by way of a Uniform Annual General Charge which will be 

set under section 15 of the Local Government (Rating) Act 

2002 and be applied as a fixed amount per separately used or 

inhabited part of the rating unit. 

The Canterbury Museum Rate funds the following activity: 

• Canterbury Museum Levy which is imposed on 

each contributing Local Authority pursuant to the 

Canterbury Museum Trust Board Act 1993 (part of 

Community Services and Facilities Group of Activities). 

Targeted Rates 

Ward Amenities Rates 

The Ward Amenities Rates will be assessed under section 16 of 

the Local Government (Rating) Act 2002. A portion of the Ward 

Amenities Rate will be collected by way of a fixed charge per 

separately used or inhabited part of the rating unit. The balance 

of the Ward Amenities Rate requirement will be collected by 

way of a rate applied to all rateable land in the Ward on Capital 

value. 

The Ward Amenities Rate requirement will be used to fund the 

following activities within each Ward: 

• General administration, cost of Ward Committees, 

township maintenance, halls, local amenity reserves 

and public swimming pools in each Ward (part of 

Community Services and Facilities group of activities). 

rate applied to all rateable land in the ward on the capital value. 

The Ward roadside construction rate will be set on a differential 

basis based on land use (the categories are “urban” and “rural” 

within each Ward). 

The Ward Roadside Construction Rate requirement funds the 

following activities: 

• Roadside construction including: local kerb, channel, 

footpath and street lights (part of Roads and Footpaths 

group of activities). 

Water Rates 

Water Rates will be assessed under section 19 of the Local 

Government (Rating) Act 2002. Water Rates will be collected 

by way of a fixed charge based on the volume of water supplied 

to all rating units. In addition a fixed charge will be set per 

separately used or inhabited part of a rating unit which is either 

connected to the scheme or for which connection is available. 

Both the fixed charges will be set on a differential basis based 

on location and on the availability of service (the categories 

are “connected” and “serviceable”). Rating units which are not 

connected to the schemes and are not serviceable will not be 

liable for this rate. 

The Water Rate requirement funds the following activities (all 

part of the Water Supply group of activities: 

• Amberley Water Supply 

• Amuri Plains Water Supply 

• Ashley Rural Water Supply 

• Balmoral Water Supply 

• Cheviot Water Supply 

• Culverden Township Water Supply 

• Hanmer Springs Water Supply 

• Hawarden-Waikari Water Supply 

• Hurunui Rural Water Supply 

• Leithfield Beach Water Supply 

• Waiau Rural Water Supply 

• Waiau Township Water Supply 

• Waipara Township Water Supply 

Ward Roadside Construction Rates 

The Ward Roadside Construction Rates will be assessed under 

section 16 of the Local Government (Rating) Act 2002. The 

Ward Roadside Construction Rate will be collected by way of a 

183


Water Treatment Rates 

Water Treatment Rates will be assessed under sections 16 & 

17 and Schedule 2 of the Local Government (Rating) Act 2002. 

Water Treatment Rates will be collected by way of a fixed 

charge on each dwelling connected to the applicable water 

supply requiring the new treatment. 

This charge will be set on a differential basis based on location 

and will be charged to those dwelling connected to the following 

water supplies: 

• Waipara Township Water Supply 

• Waiau Rural Water Supply 

• Cheviot Water Supply 

• Hurunui Rural Water Supply 

It should be noted that the new treatment proposed for the 

Ashley Rural Water Supply will be funded as part of its standard 

water rates. 

The Water Treatment Rate requirement funds the following 

activities: 

• District Wide Water Treatment (part of the Water 

Supplies group of activities). 

Sewerage Rates 

Sewerage Rates will be assessed under section 16 of the Local 

Government (Rating) Act 2002. Sewerage Rates will be collected 

by way of a fixed charge per separately used or inhabited part 

of a rating unit which is either connected to the scheme or 

for which connection is available. This charge will be set on a 

differential basis based on location and the provision of service 

(with the categories being “connected” and “serviceable”). 

Rating units which are not connected to the schemes and which 

are not serviceable will not be liable for this rate. A residence 

of not more than one household is deemed to have one water 

closet (toilet). 

The Sewerage rate requirement funds the following activities: 

• Sewerage group of activities. 

Stormwater/Drainage/Land 

Protection Rates 

Stormwater/Drainage/Land Protection Rates Council will be 

assessed under section 16 of the Local Government (Rating) 

Act 2002. The Stormwater/Drainage/Land Protection Rates will 

be collected by way of: a rate based on the land value of each 

rating unit; a fixed charge per hectare of land within a drainage 

area; or per separately used or inhabited part of a rating unit in 

each stormwater/drainage/land protection area. This charge will 

be set on a differential basis based on location. 

• The Stormwater and Drainage Rate requirements fund the 

following activities (all part of the Stormwater & Drainage 


• Jed River Drainage 

• Amberley Stormwater 

• Hanmer Springs Stormwater 

• The Land Protection Rate funds the following activity: 

• Amberley Beach Erosion Protection Works (part of the 

Stormwater & Drainage group of activities). 

Tourism 

The Tourism Rate will be assessed under section 16 of the Local 

Government (Rating) Act 2002. In terms of section 2 of the Act, 

the categories of land to be assessed with the targeted rate have 

been determined by: 

• The use to which the land is put. 

• The capital value of the improvements on the land. 

• The location of the land. 

It is intended that the Tourism Rate will be phased out with the 

funding for the Tourism activity to come from another source, 

which is still to be determined. 

The targeted rate is assessed on the following: 

1. All rateable properties within the Ward of Hanmer 

Springs that are used for any use other than solely 

private use, or emergency services buildings, or that are 

used for any use other than an economic farming or 

forestry unit, but only to the extent that the unit is used 

solely for farming or forestry purposes; or 

2. All rateable properties within the Hurunui district 

that hold either a On, Off or Winemakers License as 

required by the Sale of Liquor Act 1989 except Sports 

Clubs; or 

3. All rateable properties within the Hurunui district that 

hold a Health License as required by the Food Hygiene 

Regulations 1974 except Sports Clubs, Hairdressers, 

Abattoirs, Apiaries, holders of a minor food licence; or 


are used for accommodation purposes on commercially 

zoned land with a land use category of CAPA, CAPB; or 


are used for the sale of petroleum products with a land 

use category of CSP; or 


are used for Commercial Tourism operations with a 

land use category of CTP. 

184


The Targeted Tourism Rate will be calculated on the following 

nine classes in terms of the Value of the Improvements of the 

Rating Unit as follows: 

Levels 

Value of Improvements to Rating Unit 

Class A $100 to $150,000 

Class B $150,001 to $250,000 

Class C $250,001 to $350,000 

Class D $350,001 to $450,000 

Class E $450,001 to $550,000 

Class F $550,001 to $650,000 

Class G $650,001 to $750,000 

Class H $750,001 to $850,000 

Class I $850,001 and above 

Notes to Category 1: 

1 A rateable property within the Ward of Hanmer 

Springs will be considered to be used for solely private use if 

the ratepayer of the property: 

1.1 Does not receive or intend to receive any form of 

payment or other consideration from any other person for the 

use of the property; and 

1.2 Signs a declaration in the form required by the Council 

declaring that the property is used solely for the private use of 

the ratepayer with no payment or consideration being received 

or to be received by the ratepayer. (In previous years, the 

Council has required a statutory declaration witnessed made in 

the presence of a solicitor, justice of the peace or other person 

authorised by the Oaths and Declarations Act 1957). 

2 If a ratepayer has made a declaration to the Council 

that the property is used for the ratepayers own private use 

with the ratepayer not receiving any form of payment or other 

consideration from third parties for the use of the property, 

but the ratepayer subsequently does receive payment or other 

consideration for allowing other people to use the property 

then the property will immediately become liable for the 

Targeted Tourism Rate. 

The Tourism Rate funds the following activity: 

• Tourism activity (part of the District Promotion group 

of activities). 

Medical Buildings 

The medical Buildings Rate will be assessed under section 

16 of the Local Government (Rating) Act 2002. The Medical 

Buildings rate will be collected by way of a fixed charge per each 

separately used or inhabited part of the rating unit in the Ward 

that funds a medical building. 

The Medical Buildings Rate funds the following activity: 

• Medical Buildings (part of the Community Services and 

Facilities group of activities). 

Refuse and Recycling Collection 

The Refuse and Recycling Rate will be assessed under section 

16 of the Local Government (Rating) Act 2002. The Rate will be 

assessed as a fixed charge per separately used or inhabited part 

of the rating unit and under section 17 of the Local Government 

(Rating) Act 2002. 

The rate is set differentially according to the following categories 

of land: 

• Urban properties that receive the service 

• Rural properties that receive the service 

• Business properties that receive the service 

The Refuse and Recycling Rate funds the following activity: 

• Household and business waste collection and disposal 

(part of the Environmental and Safety group of activities). 

Amberley Ward District Library Rate 

The Amberley Ward District Library Rate will be assessed 

under section 16 of the Local Government (Rating) Act 2002. 

The Rate will be assessed as a fixed charge per separately used 

or inhabited part of the rating unit and under section 17 of the 

Local Government (Rating) Act 2002. The Rate shall be applied 

to each rating unit in the Amberley Ward. 

The Amberley Ward District Library Rate funds the following 

activity: 

• The costs associated with meeting the servicing costs 

of a loan that was apportioned to the Amberley Ward 

upon construction of the Hurunui Memorial District 

Library (part of the Community Services and Facilities 


Rural Fire 

The Rural Fire Rate will be assessed under section 16 of the 

Local Government (Rating) Act 2002. The Rural Fire Rate will 

be collected by way of a rate applied on all ratable land in the 

district based on the capital value. The Rural Fire rate will be set 

on a differential basis based on land location (the categories are 

“land within Hurunui District Rural Fire Authority (HDRFA)” 

and “land outside Hurunui District Rural Fire Authority 

(OHDRFA”). The differential is 80% HDRFA and 20% OHDRFA. 

The Rural Fire Rate requirement is used to fund the following 

activity: 

• Rural Fire (part of the Environmental and Safety group 

of activities). 

185


Swimming Pool Inspection Rate 

The Swimming Pool Inspection Rate will be assessed under 

section 16 of the Local Government (Rating) Act 2002. The 

Rate will be assessed as a fixed charge per separately used or 

inhabited part of the rating unit and under section 17 of the 

Local Government (Rating) Act 2002 the rate shall be applied to 

each rating unit on which a swimming pool is located. 

The Swimming Pool Inspection rate funds the following activity: 

• Pool Inspection (part of the Environmental and Safety 


Woodbank Road Stage 1 Sealing 

The Woodbank Road Stage 1 Sealing Rate will be assessed 

under section 16 of the Local Government (Rating) Act 

2002. The rate will be assessed as a fixed charge per lot 

on Woodbank Road,that did not contribute a lump sum 

contribution when the sealing work was undertaken. 

The Woodbank Road Stage 1 Sealing Rate funds the following 

activity: 

• Woodbank Road Stage 1 Sealing (part of the roading and 

footpaths group of activities). 

Fixed Charges 

Under section 21 of the Local Government (Rating) Act 2002, 

the Council is limited to setting fixed charges, excluding charges 

for water and sewer, at no greater than 30% of the total revenue 

from all rates sought by Council. 

The Council ensures that the maximum allowable amount of 

fixed charges under the Act is proposed and to comply with 

this section of the Act, the Uniform Annual General Charge is 

adjusted on an annual basis. 

Differential Matters and Categories 

Where Council assess rates on a differential basis they are 

limited to the list of matters specified in Schedule Two of the 

Local Government (Rating) Act 2002. Council is required to 

state which matters will be used for what purpose, and the 

category or categories of any differentials. 

Differentials Based on Land Use 

Council will use this matter to: 

• Differentiate the Ward Roadside Construction rate and 

for paying some of the tourism promotion rate 

• Differentiate those properties to be charged a Water 

Treatment rate 

The differential categories are: 

• Urban – all rating units that are within the urban 

boundaries as defined by the District Plan 

• Rural – all rating units that are outside the urban 

boundaries as defined by the District Plan 

Properties which have more than one use (or where there is 

doubt as to the relevant primary use) will be placed in a category 

with the highest rate factor. 

Note: That, subject to the rights of objection to the rating 

information database set out in section 28 of the Local 

Government (Rating) Act 2002, the Council is the sole 

determiner of the categories. 

Differentials Based on Location 

Council will use this matter for: 

• The Ward or Community Rating Area amenity rate 

• Ward or Community Rating Area roadside construction 

rate, water supply rate, the water treatment rate, the 

sewage disposal rate, the refuse collection rate, land 

drainage rate, some of the tourism rate and medical 

facilities rate 

The following categories will apply: 

• Amberley Ward – all rating units situated within the 

Amberley Ward 

• Amuri Community Rating Area – all rating units situated 

within the former Amuri Ward (as defined prior to the 

October 2007 election) 

• Cheviot Ward – all rating units situated within the 

Cheviot Ward 

• Glenmark Ward – all rating units situated within the 

Glenmark Ward 

• Hanmer Springs Ward – all rating units situated within 

the Hanmer Springs Ward 

• Hurunui Community Rating Area – all rating units 

situated within the former Hurunui Ward (as defined 

prior to the October 2007 election) 

Where a rating unit is situated in more than one Ward or 

Community Rating Area, Council will assign the rating unit to a 

Ward or Community Rating Area based on whichever part of 

the rating unit has the greatest land area. 

Water and sewerage, refuse collection, land drainage and rural 

fire areas: 

• All rating units situated within serviced areas as defined 

on plans held at the Council Office. 

Note: that, subject to the rights of objection to the rating 

information database set out in section 28 of the Local 

Government (Rating) Act 2002, the Council is the sole 

determiner of the categories. 

186


Availability of Service 

The differential categories for the water supply rate are: 

• Connected – any rating unit that is connected to a 

council operated waterworks. 

• Serviceable – any rating unit that is not connected to a 

council operated waterworks but is within 100 metres 

of such waterworks. 

• A charge of 10 per cent on so much of any rates levied 

before 1 July 2011 which remain unpaid on 30 June 2012. 

• A charge of 10 per cent on any rate to which a penalty 

has been added under (ii) if the rates remain unpaid on 

1 January 2013. 

The differential categories for the sewage disposal rate are: 

• Connected – any rating unit that is connected to a 

public sewerage drain. 

• Serviceable– any rating unit that is not connected to a 

public sewerage drain but is within 30 metres of such 

a drain. 

Differentials – Tourism Rate 

The differential categories for the Tourism Rate are: 

• All rateable properties within the Ward of Hanmer 

Springs that are used for any use other than solely 

private use, or emergency services buildings, or that are 

used for any use other than an economic farming or 

forestry unit, but only to the extent that the unit is used 

solely for farming or forestry purposes. 

• All rateable properties within the Hurunui District 

that hold either an On, Off or Winemakers License as 

required by the Sale of Liquor Act 1989 except Sports 

Clubs. 

• All rateable properties within the Hurunui district that 

hold a Health License as required by the Food Hygiene 

Regulations 1974 except Sports Clubs, Hairdressers, 

Abattoirs, Apiaries, holders of a minor food licence. 

Due Date for Payment of Rates 

All rates will be payable in four instalments on due dates as 

follows: 

Penalties 

Instalment number 

Due Date 

One 20 August 2012 

Two 20 November 2012 

Three 20 February 2013 

Four 20 May 2013 

That pursuant to sections 57 and 58 of the Local Government 

(Rating) Act 2002, the Council prescribes the following penalties 

to be added to unpaid rates: 

• A charge of 10 per cent of the amount of any instalment 

that has been assessed after 1 July 2012 and which is 

unpaid after the due date. 

187


Breakdown of Rates 



District Wide Rates 

General Rates & UACG 370,737 522,122 668,683 708,890 688,113 731,386 745,314 760,890 790,202 804,459 830,314 

Canterbury Museum Rates 53,842 56,534 112,188 171,516 132,243 86,355 90,673 95,206 99,967 104,965 110,213 

Roading 2,530,693 2,522,460 2,650,253 2,831,198 2,854,822 2,989,558 3,083,289 3,148,085 3,267,386 3,397,244 3,510,100 

Governance 809,138 909,976 972,635 1,083,291 1,013,986 1,104,489 1,158,385 1,112,908 1,214,913 1,272,925 1,231,330 

Planning 718,324 818,130 859,221 887,870 900,957 932,287 960,276 988,734 1,023,089 1,058,187 1,094,636 

Waste Management 797,504 801,328 826,494 853,730 879,947 908,890 935,472 961,863 993,187 1,026,726 1,060,215 

Legislative Compliance 0 0 0 0 271,471 271,471 271,471 271,471 271,471 271,471 271,471 

Total District Wide Rates 5,280,238 5,630,550 6,089,475 6,536,495 6,741,539 7,024,437 7,244,880 7,339,157 7,660,215 7,935,977 8,108,278 

Raw Increase ($) 350,312 458,925 447,020 205,044 282,898 220,444 94,277 321,058 275,762 172,301 

Raw Increase (%) 6.63% 8.15% 7.34% 3.14% 4.20% 3.14% 1.30% 4.37% 3.60% 2.17% 

Growth Adjusted Increase (%) 5.63% 7.15% 6.34% 2.14% 3.20% 2.14% 0.30% 3.37% 2.60% 1.17% 

Targeted Rates 

Refuse Collection 801,348 742,201 748,378 771,949 795,513 821,623 844,931 868,731 897,084 926,239 956,462 

Swimming Pool Inspection 23,530 29,627 30,554 31,485 32,483 33,553 34,507 35,481 36,604 37,837 39,075 

Stormwater & Drainage 251,958 279,042 286,471 280,990 277,894 286,212 279,536 275,397 271,368 267,418 276,708 

Rural Fire Control 263,546 274,088 285,051 296,453 308,312 320,644 333,470 346,809 360,681 375,108 390,112 

Tourism 275,000 286,000 297,440 309,338 318,618 328,176 338,022 348,162 358,607 369,365 380,446 

Medical Centres 167,259 183,806 183,806 183,806 183,806 183,806 229,154 229,154 229,154 229,154 229,154 

Amberley Library Rate 34,358 34,358 34,358 9,253 0 0 0 0 0 0 0 

Sealing Contributions 0 5,043 5,043 5,043 5,043 5,043 5,043 5,043 5,043 0 0 

Amenities 1,305,678 1,329,755 1,371,316 1,419,704 1,469,996 1,521,419 1,574,849 1,630,369 1,688,066 1,748,031 1,810,358 

Sewerage 560,062 618,127 683,846 758,360 842,193 937,618 1,046,410 1,170,631 1,312,674 1,475,324 1,661,819 

Water 3,866,269 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 

Total Targeted Rates 7,549,008 7,999,008 8,383,339 8,774,452 9,120,655 9,511,430 9,881,377 10,307,320 10,767,832 11,257,396 11,803,247 

Raw Increase ($) 450,001 384,331 391,113 346,203 390,775 369,947 425,942 460,513 489,564 545,851 

Raw Increase (%) 5.96% 4.80% 4.67% 3.95% 4.28% 3.89% 4.31% 4.47% 4.55% 4.85% 

No Growth Adjustment made 

TOTAL RATE REQUIREMENT 12,829,246 13,629,559 14,472,814 15,310,947 15,862,194 16,535,867 17,126,258 17,646,477 18,428,048 19,193,373 19,911,525 

Raw Increase ($) 800,313 843,256 838,132 551,247 673,673 590,391 520,219 781,571 765,326 718,152 

Raw Increase (%) 6.24% 6.19% 5.79% 3.60% 4.25% 3.57% 3.04% 4.43% 4.15% 3.74% 

Growth Adjusted Increase (%)- adjusted for District Wide Rates only 5.83% 5.77% 5.37% 3.17% 3.82% 3.15% 2.61% 4.01% 3.74% 3.33% 

H:\Long Term Plan Workings\Rates - for Final LTP\Funding Impact Statement for 2012-2013 - Post Submissions.xls 31/05/2012 10:23 a.m. 

188


Rates for the 2012/2013, 2013/2014 and 2014/2015 years 

District Wide Rates 

Rate Type 

General Rate and UAGC 

Actual Rates for 

2011/2012 inclusive of GST 


2012/2013 inclusive of GST 

Indicative Rates for 

2013/2014 inclusive of GST 



Rate per $ of Capital Value $0.00003256 $0.00005464 $0.00006865 $0.00007765 

Fixed Charge Per Property $36.08 $45.01 $57.46 $56.89 

Total Expected Rates (Excl GST) $370,738 $522,122 $668,683 $708,890 

Governance Rate 



Total Expected Rates (Excl GST) $809,138 $909,976 $972,635 $1,083,291 

Roading Rate 


Total Expected Rates (Excl GST) $2,530,693 $2,522,460 $2,650,253 $2,831,198 

Planning Rate 



Waste Management Rate 



Canterbury Museum Rate 

Fixed Charge Per Property - Operational Rate $8.13 $8.49 $9.24 $10.53 

Fixed Charge Per Property - Capital Rate $0.00 $0.00 $7.43 $14.72 


Targeted Rates - Amenities Rates 

Rate Type 

Amberley Ward Amenities Rates 












Amuri Ward Amenities Rates 




Cheviot Ward Amenities Rates 




Glenmark Ward Amenities Rates 




Hanmer Springs Ward Amenities Rates 




Hurunui Ward Amenities Rates 




Amberley Ward Roadside Construction Rates 

Urban Rate per $ of Capital Value $0.00022829 $0.00023993 $0.00025192 $0.00026452 

Rural Rate per $ of Capital Value $0.00003441 $0.00003612 $0.00003793 $0.00003982 


Amuri Ward Roadside Construction Rates 




Cheviot Ward Roadside Construction Rates 




Glenmark Ward Roadside Construction Rates 



Total Expected Rates (Excl GST) $0 $0 $0 $0 

Hanmer Springs Ward Roadside Construction Rates 




Hurunui Ward Roadside Construction Rates 




H:\Long Term Plan Workings\Rates - for Final LTP\Funding Impact Statement for 2012-2013 20/06/2012 - Post Submissions.xls 

10:48 a.m. 

189


Targeted Rates - Water Rates 

Rate Type 

Amberley Township 









Fixed Charge per connected property $120.82 $129.98 $139.86 $150.49 

Fixed Charge per serviceable property $60.41 $64.99 $69.93 $75.24 

Fixed Charge per m3 supplied $0.61803731 $0.66501104 $0.71555188 $0.76993382 


Culverden Township 





Hanmer Springs Township 




Fixed Charge per Rural connected property $583.79 $607.14 $631.43 $656.68 


Hawarden-Waikari Township 




Fixed Charge per Rural connected property on Medbury Line $393.40 $409.14 $425.50 $442.52 






Waiau Township 





Waipara Township 




Fixed Charge per Rural connected property $514.86 $514.86 $514.86 $514.86 


Ashley Rural 

Fixed Charge per unit provided $567.03 $589.68 $613.27 $637.80 

Fixed Charge for availability $10.00 $10.00 $10.00 $10.00 

Total Expected Rates (Excl GST) $1,115,757 $1,197,820 $1,251,065 $1,306,654 

Amuri Plains Rural 



Balmoral Rural 




Waiau Rural 



Cheviot 

Fixed Charge per unit provided in Rural area $576.06 $656.70 $689.53 $724.01 

Fixed Charge for each half unit provided to Rural Residential Properties $360.64 $411.14 $863.40 $906.57 




Fixed Charge per unit provided for Operational $625.00 $656.25 $689.06 $723.52 

Fixed Charge per unit provided for Capital $0.00 $50.00 $50.00 $50.00 

Total Expected Rates (Excl GST) $912,500 $1,025,598 $1,073,247 $1,123,279 

Water Treatment Rate 

Fixed Charge per dwelling $0.00 $37.95 $75.90 $115.00 

Total Expected Rates (Excl GST) $0 $48,279 $96,558 $146,300 


10:48 a.m. 

190


Targeted Rates - Sewerage Rates 

Rate Type 

Amberley & Districts 










Fixed Charge for second Water Closet or Urinal $72.50 $85.19 $100.10 $117.61 

Fixed Charge for additional Water Closets or Urinals $36.28 $42.63 $50.09 $58.85 



Cheviot 






Greta Valley 






Motunau Beach 










Hawarden 






Waikari 






Targeted Rates - Stromwater/Drainage/Land Protection Rates 

Rate Type 

Jed River Drainage 









Rate per $ of Land Value $0.00003599 $0.00003600 $0.00003600 $0.00003600 

Class A - Fixed Charge per hectare $10.34 $10.34 $10.34 $10.34 

Class B - Fixed Charge per hectare $7.55 $7.55 $7.55 $7.55 

Class C - Fixed Charge per hectare $4.14 $4.14 $4.14 $4.14 

Total Expected Rates (Excl GST) $810 $810 $810 $810 

Amberley Stormwater 

Fixed Charge per property $108.77 $108.77 $108.77 $108.77 


Hanmer Springs Stormwater 



Amberley Beach Erosion Protection 



Targeted Rates - Tourism Rates 

Rate Type 

Fixed Charge per property 









Class A ($100 to $150,000) $238.67 $248.56 $258.50 $268.84 

Class B ($150,001 to $250,000) $355.35 $369.20 $383.97 $399.33 

Class C ($250,001 to $350,000) $472.04 $490.88 $510.52 $530.94 

Class D ($350,001 to $450,000) $599.33 $622.96 $647.88 $673.79 

Class E ($450,001 to $550,000) $710.71 $739.44 $769.02 $799.78 

Class F ($550,001 to $650,000) $822.09 $854.88 $889.08 $924.64 

Class G ($650,001 to $750,000) $928.16 $965.12 $1,003.72 $1,043.87 

Class H ($750,001 to $850,000) $1,039.54 $1,081.60 $1,124.86 $1,169.86 

Class I ($850,001 and over) $1,203.97 $1,252.16 $1,302.25 $1,354.34 



10:48 a.m. 

191


Targeted Rates - Medical Centre Rates 

Rate Type 

Amuri Ward Medical Centre 











Cheviot Ward Medical Centre 



Hanmer Springs Ward Medical Centre 



Hurunui Ward Medical Centre 



Targeted Rates - Other Targeted Rates 

Rate Type 

Refuse Collection Rates 









Fixed Charge per Urban property $260.00 $260.00 $260.00 $260.00 

Fixed Charge per Rural property that receive the service $270.00 $270.00 $270.00 $270.00 

Fixed Charge per Business that receive the service $260.00 $260.00 $260.00 $260.00 


Amberley Ward Library Rate 



Rural Fire Rates 

Class A - Rate per $ of Capital Value $0.00008377 $0.00008715 $0.00009064 $0.00009426 

Class B - Rate per $ of Capital Value $0.00003546 $0.00003682 $0.00003829 $0.00003982 


Swimming Pool Inspection Rates 



Woodbank Road Stage 1 Sealing 

Fixed Charge per lot for which no lump sum contribution was made $0.00 $252.13 $252.13 $252.13 



10:48 a.m. 

192


Reserve Funds 

The recent changes to the Local Government Act has imposed 

a new requirement to provide details and the movements over 

the ten year period for each reserve fund that the Council has 

set aside for a specific purpose. 

As outlined in the Council’s Internal Financing Policy on page 

268, the Council have developed a system where various 

activities hold a separate account. The account may hold funds, 

which is set aside to meet future capital expenditure specifically 

for that activity, or it may be in debt, which has been the result of 

funding capital expenditure in the past. As a result, the Council 

holds 100 separate reserve funds, which are on the following 

pages. 

193


Special Funds 

Fund Name 

Activity the Fund relates 

to 

Group of Activities the Fund relates 

Forecast Balance 1 Funds Deposited Funds Withdrawn Forecast Balance 30 

to Reason for Holding Reserve Funds 

July 2012 

2012-2022 


June 2022 

To fund earthquake strengthening work and maintenance of the 

1,258,438 0 1,258,438 Nurses Block on the Former Queen Mary Hospital Site 

To fund projects for Amberley Beach 25,939 10,651 0 To fund projects for the Amuri Ward 20,879 8,573 0 To fund projects for sports facilities in the Amuri Ward 14,474 88,063 0 To fund projects for Cheviot Ward 4,970 2,041 0 To fund projects for the Waipara Pavilion 14,355 5,894 0 To provide funds for the maintenance of the Waiau Ferry Bridge 11,248 58,196 0 To fund marketing projects for the Hanmer Springs Ward 39,831 26,772 70,000 To fund projects for the Hurunui Ward 3,489 1,433 0 To provides funds relating to adverse events 13,114 0 0 To continue to provide for commercial forests and funds projects as 

548,196 2,533,274 0 determined by the Council. 

964 

1,650 

0 

36,590 

29,452 

102,537 

7,011 

20,249 

69,444 

(3,397) 

4,922 

13,114 

3,081,470 

3,364,005 

Reserve Committee Funds 

Fund Name 


to 








19,732 8,102 0 27,834 

determined by the Scargill - Motunau Reserve Committee 

Hawarden Reserve & Hall Reserves Community Services and Facilities To fund operations on the Hawarden Reserve as determined by the 

(343) 0 0 (343) 

Reserve Committee 

Waikari Reserve & Hall Reserves Community Services and Facilities To fund operations on the Waikari Reserve as determined by the 

24,160 0 0 24,160 


Hurunui Reserve Reserves Community Services and Facilities To fund operations on the Hurunui Reserve as determined by the 

10,007 4,109 0 14,116 


Waiau Reserve Reserves Community Services and Facilities To fund operations on the Waiau Reserve as determined by the 

67,253 13,282 0 80,535 


Cheviot Reserve Reserves Community Services and Facilities To fund operations on the Cheviot Reserve as determined by the 

68,834 0 32,752 36,082 


Domett Reserve Reserves Community Services and Facilities To fund operations on the Domett Reserve as determined by the 

11,190 (1,430) 0 9,760 


Port Robinson - Gore Bay Camp Reserves Community Services and Facilities To fund operations on the Port Robinson-Gore Bay Camp Reserve 

74,908 97,808 45,000 127,716 

as determined by the Reserve Committee 

Port Robinson Reserve Reserves Community Services and Facilities To fund operations on the Port Robinson Reserve as determined by 

12,912 (2,065) 0 10,847 

the Reserve Committee 

Spotswood Reserve Reserves Community Services and Facilities To fund operations on the Spotswood Reserve as determined by the 

5,329 0 14,982 (9,653) 


Domett Camp Reserve Reserves Community Services and Facilities To fund operations on the Domett Camp Reserve as determined by 

11,676 0 18,534 (6,858) 

305,658 119,805 111,268 314,195 

To fund operations on the Scargill-Motunau Recreation Reserve as 

the Reserve Committee 

H:\Long Term Plan Workings\Hurunui District Council LTP Budgets 2012-2022 - Post Submissions.xls 31/05/2012 12:03 p.m. 

194


Trust Funds 

Fund Name 


to 








To provide funds for maintenance of gravestones in the Council's 

169 69 0 Cemeteries 


1,922 789 0 Cemeteries 

To provide funds for the replacement of the gates leading into the 

557 229 0 Culverden Domain 

23,539 

238 

2,711 

786 

5,919 

5,995 

1,009 414 0 1,423 

Cemeteries 

Forrester Trust Reserves Community Services and Facilities To provide funds for maintenance of gravestones in the Council's 

1,083 445 0 1,528 


Cemeteries 

29,873 12,266 0 42,139 

Development Contributions Funds 

Fund Name 


to 








Amberley Water Development Contributions Fund Water Supplies Water Supplies To provide funds for growth related projects for Amberley Water (95,630) (124,498) 307,585 (527,713) 

Ashley Rural Water Development Contributions Community Services Water Supplies To provide funds for growth related projects for Ashley Rural 

0 612,955 612,955 0 

Fund 

Water 

Cheviot Water Development Contributions Fund Water Supplies Water Supplies To provide funds for growth related projects for Cheviot Water 0 61,261 61,261 0 

Hanmer Springs Water Development Contributions Water Supplies Water Supplies To provide funds for growth related projects for Hanmer Springs 

0 0 0 0 

Fund 

Water 

Hurunui Rural Water Development Contributions Sewerage Sewerage To provide funds for growth related projects for Hurunui Rural 

0 167,002 167,002 0 

Fund 

Water 

Amberley Sewer Pipe Development Contributions Sewerage Sewerage To provide funds for growth related projects for Amberley Sewer 

41,041 (308,036) 717,678 (984,673) 

Fund 

Pipes 

Amberley Sewer Pond Development Contributions Sewerage Sewerage To provide funds for growth related projects for Amberley Sewer 

(88,026) 68,105 0 (19,921) 

Fund 

Pond 

Hanmer Springs Sewer Development Contributions Sewerage Sewerage To provide funds for growth related projects for Hanmer Springs 

0 284,198 284,198 0 

Fund 

Sewer 

Amberley Stormwater Development Contributions Stormwater and Drainage Stormwater and Drainage To provide funds for growth related projects for Amberley 

(122,286) (136,005) 100,000 (358,291) 

Fund 

Stormwater 

Hanmer Springs Stormwater Development Stormwater and Drainage Stormwater and Drainage To provide funds for growth related projects for Hanmer Springs 

0 188,146 188,146 0 

Contributions Fund 

Stormwater 

District Library Development Contributions Fund Community Services Community Services and Facilities To provide funds for growth related projects for the District Library (125,214) 125,214 0 (0) 

Hanmer Springs Medical Centre Development 


Amberley Reserve Pavilion Development 


Property Community Services and Facilities To provide funds for growth related projects for the Medical Centre 

0 190,789 190,789 0 

in Hanmer Springs 

Property Community Services and Facilities To provide funds for growth related projects for the Amberley 

(38,187) 9,293 0 (28,894) 

Reserve Pavilion 


195


Development Contributions Funds (Cont'd) 

Forecast Balance 30 

to Property Community Services and Facilities (32,396) 32,395 (1) 

Property Community Services and Facilities (670,604) 0 (720,674) 

Reserves Community Services and Facilities 260,141 888,979 445,689 

Reserves Community Services and Facilities 54,168 96,037 (194,994) 

Reserves Community Services and Facilities 20,913 22,077 (157,323) 

Reserves Community Services and Facilities 114,071 400,754 514,825 

Omihi Reserve Development Contributions Fund Reserves Community Services and Facilities (9,911) 9,911 0 0 


Forecast Balance 1 July 2012 

Funds Deposited 2012-2022 

Funds Withdrawn 2012-2022 

0 50,070 703,431 345,199 200,312 0 Fund Name 

Hanmer Springs Hall Development Contributions Fund 

Hanmer Springs Town Centre Development Contributions Fund 

Queen Mary Development Contributions Fund Amberley Township Reserves Development Contributions Fund 

Amberley Walking and Cycling Routes Development Contributions Fund 

Amberley Ward Reserves Development 


Activity the Fund relates to 


Reason for Holding Reserve Funds 

To provide funds for growth related projects for the Hanmer Springs 

Hall 

To provide funds for growth related projects for the Town Centre 

in Hanmer Springs 

To provide funds for growth related projects for development of the 

former Queen Mary Hospital Site 

To provide funds for growth related projects for township reserves 

in Amberley 

To provide funds for growth related projects for Walking and 

Cycling Routes in the Amberley Ward 

To provide funds for growth related projects for ward reserves in 

Amberley 

To provide funds for growth related projects for the Omihi Reserve 36,727 65,695 107,505 (5,083) 

area in Hanmer Springs 

Reserves Community Services and Facilities To provide funds for growth related projects for the Domain in 

0 138,924 553,690 (414,766) 

To provide funds for growth related projects for Conical Walkway 


Hanmer Springs Conical Hill Walkway Development Contributions Fund 

Hanmer Springs Domain Upgrade Development Contributions Fund 

(655,193) 2,793,195 4,589,820 (2,451,818) 

Rate Reserve Funds 

Activity the Fund relates Group of Activities the Fund relates 


Fund Name 

to 






Interim treatment Water Supplies Water Supplies To fund capital projects relating to interim treatment of water 0 349,715 758,000 (408,285) 

Full Treatment Water Supplies Water Supplies To fund capital projects relating to full treatment of water 0 2,111,887 0 2,111,887 

Amberley Water Water Supplies Water Supplies To fund capital projects for Amberley water (431,410) 800,259 1,250,754 (881,905) 

Leithfield Beach Water Water Supplies Water Supplies To fund capital projects for Leithfield Beach water (123,483) 39,929 0 (83,554) 

Ashley Rural Water Water Supplies Water Supplies To fund capital projects for Ashley Rural water (1,122,367) 6,388,174 2,292,870 2,972,938 

Culverden Water Water Supplies Water Supplies To fund capital projects for Culverden water (54,170) 56,085 177,534 (175,618) 

Waiau Township Water Water Supplies Water Supplies To fund capital projects for Waiau Township water 56,142 272,559 210,940 117,761 

Amuri Plains Water Water Supplies Water Supplies To fund capital projects for Amuri Plains water (11,878) 64,515 53,461 (824) 

Balmoral Water Water Supplies Water Supplies To fund capital projects for Balmoral water 129,586 (58,824) 47,527 23,235 

Waiau Rural Water Water Supplies Water Supplies To fund capital projects for Waiau Rural water (160,393) 575,200 328,225 86,582 

Cheviot Water Water Supplies Water Supplies To fund capital projects for Cheviot water (1,246,301) 559,226 972,326 (1,659,401) 

Waipara Township Water Water Supplies Water Supplies To fund capital projects for Waipara Township water 71,364 109,414 20,000 160,778 

Hanmer Springs Water Water Supplies Water Supplies To fund capital projects for Hanmer Springs water (552,899) 1,164,275 1,030,630 (419,254) 

Hawarden - Waikari Water Water Supplies Water Supplies To fund capital projects for Hawarden-Waikari water (43,500) 414,366 115,087 255,779 

Hurunui Rural Water Water Supplies Water Supplies To fund capital projects for Hurunui Rural water (433,283) 2,657,718 2,443,323 (218,888) 

Amberley Sewer Sewerage Sewerage To fund capital projects for Amberley sewer (2,397,254) 1,732,990 956,888 (1,621,153) 

Culverden Sewer Sewerage Sewerage To fund capital projects for Culverden sewer (4,116) (11,339) 0 (15,455) 

Cheviot Sewer Sewerage Sewerage To fund capital projects for Cheviot sewer (53,334) 210,660 165,286 (7,960) 

Greta Valley Sewer Sewerage Sewerage To fund capital projects for Greta Valley sewer (14,256) 15,242 59,015 (58,029) 

Motunau Beach Sewer Sewerage Sewerage To fund capital projects for Motunau Beach sewer 19,963 20,523 179,325 (138,839) 

Waipara Sewer Sewerage Sewerage To fund capital projects for Waipara sewer (16,362) (16,584) 0 (32,946) 


196


Rate Reserve Funds (Cont'd) 

Fund Name 


to 








Hanmer Springs Sewer Sewerage Sewerage To fund capital projects for Hanmer Springs sewer (1,279,755) 190,929 1,750,003 (2,838,828) 

Hawarden Sewer Sewerage Sewerage To fund capital projects for Hawarden sewer 658 110,937 146,476 (34,880) 

Waikari Sewer Sewerage Sewerage To fund capital projects for Waikari sewer (215,871) 352,651 120,873 15,907 

Amberley Beach Foreshore Protection Stormwater and Drainage Stormwater and Drainage To fund capital projects for Amberley Beach Foreshore Protection 94,849 23,743 0 118,592 

Amberley Stormwater Stormwater and Drainage Stormwater and Drainage To fund capital projects for Amberley stormwater (1,162,479) 1,590,923 378,001 50,442 

Jed River Clearance Stormwater and Drainage Stormwater and Drainage To fund capital projects for Jed River Clearance 1,789 (3,165) 0 (1,376) 

Hanmer Springs Stormwater Stormwater and Drainage Stormwater and Drainage To fund capital projects for Hanmer Springs Stormwater (221,096) 280,648 216,438 (156,886) 

(29,821) 29,821 0 (0) 

Road in Hanmer Springs 

District Library Development - Amberley Ward Community Services Community Services and Facilities To fund portion of District Library construction costs (69,406) 69,406 0 (0) 

Amberley Amenities Community Services Community Services and Facilities To fund capital projects for Amberley Ward Amenities (1,081,191) 150,884 222,981 (1,153,288) 

Amuri Amenities Community Services Community Services and Facilities To fund capital projects for Amuri Ward Amenities (50,695) 427,361 250,728 125,938 

Cheviot Amenities Community Services Community Services and Facilities To fund capital projects for Cheviot Ward Amenities (2,739) 82,790 0 80,051 

Glenmark Amenities Community Services Community Services and Facilities To fund capital projects for Glenmark Ward Amenities 8,060 47,694 0 55,754 

Hanmer Springs Amenities Community Services Community Services and Facilities To fund capital projects for Hanmer Springs Ward Amenities (593,740) 785,970 1,057,871 (865,640) 

Hurunui Amenities Community Services Community Services and Facilities To fund capital projects for Hurunui Ward Amenities (3,508) 1,243 0 (2,264) 

Amuri Medical General Property Community Services and Facilities To fund capital projects for medical centres in the Amuri Ward (775,229) 693,907 0 (81,322) 

Cheviot Medical General Property Community Services and Facilities To fund capital projects for medical centres in the Cheviot Ward (194,502) 533,355 1,150,700 (811,847) 

Hanmer Springs Medical General Property Community Services and Facilities To fund capital projects for medical centres in the Hanmer Springs 

(343,553) 389,411 0 45,858 

Ward 

Waikari Medical Centre Property Community Services and Facilities To fund capital projects for medical centres in the Hurunui Ward (107,900) 88,972 0 (18,928) 

Rural Fire Control Emergency Services Environmental and Safety To fund previous deficits recorded for Rural Fire Control (96,197) (62,782) 0 (158,979) 

Animal Control Compliance and Regulatory Environmental and Safety Funds utilised to offset the cost of Animal Control 47,976 0 47,976 0 

Functions 

Dog Control Compliance and Regulatory Environmental and Safety Funds utilised to offset the cost of Animal Control 0 0 0 0 

Functions 

Refuse Collection Waste Minimisation Environmental and Safety To fund previous deficits recorded for Refuse Collection (15,372) 15,372 0 0 

District Tourism District Promotion District Promotion To hold funds for projects relating to District Tourism 0 0 0 0 

Hanmer Springs Thermal Reserve Balance Hanmer Springs Thermal Hanmer Springs Thermal Pools & Spa Unused surpluses derived from the operation of the HSTP&S 2,858,695 1,597,297 2,049,780 2,406,212 

Pools & Spa 

Hanmer Springs Thermal Reserve Internal Loan Hanmer Springs Thermal Hanmer Springs Thermal Pools & Spa Interest-only internal debt relating to key expansion projects for the 

(8,698,003) 0 4,409,125 (13,107,128) 

Pools & Spa 

To fund contributions for the first stage of sealing of Woodbank 

HSTP&S 

(18,316,983) 24,853,355 22,862,141 (16,325,769) 

TOTAL RESERVE FUNDS (16,679,098) 30,513,517 28,891,667 (15,057,249) 


197


Council Controlled Organisations 

The Hurunui District Council has financial interest in the 

following Council Controlled Organisations: 

• Hurunui Holdings Limited 

• Enterprise North Canterbury 

• Transwaste Canterbury Limited 

• Canterbury Economic Development Company 

Hurunui Holdings Limited 

Hurunui Holdings Limited is 100% owned by the Hurunui 

District Council. The Company was incorporated in July 1995, 

with a principal activity to arrange the sale of the Lyttleton Port 

Company Shares previously purchased from the Council. The 

transaction of the sale of the shares was completed in June 1996. 

In May 2004, Hurunui Roading Limited, a former Local Authority 

Trading Enterprise (LATE), was amalgamated with Hurunui 

Holdings Limited. The Company is retained as a ‘shelf company’, 

principally due to the fact that it has significant tax losses to 

carry forward. The future of the Company is being reviewed. 

In June 2010, the Council transferred the remaining assets from 

Hurunui Holdings Limited and resolved to exempt the Company 

for under section 7 (3) of the Local Government Act 2002. The 

result of this action is that Hurunui Holdings Limited is not 

considered to be a Council Controlled Organisation (CCO) 

for the purposes of the LGA and as such is not required to be 

audited. 

Enterprise North Canterbury 

Enterprise North Canterbury provides promotions and 

economic development services for the North Canterbury 

region. On behalf of Waimakariri and Hurunui District Councils 

its activities are focussed on developing existing businesses and 

promoting new businesses within the region. The Trust also 

promotes the region as a visitor destination. 

The Mayors of the two Councils are trustees and the two 

Chief Executive Officers are advisory trustees. Other trustees 

are appointed jointly by the Hurunui and Waimakariri District 

Councils. 

Key Performance Targets and Objectives 

The main objects of the trust are to cultivate and promote 

economic activity and foster growth in North Canterbury. 

Performance targets are based around: 

• Retaining and supporting existing businesses 

• Promote and encourage large business 

opportunities into North Canterbury 

• Lobby for infrastructure and facilities where 

there are gaps that impact on the creation of 

wealth 

• Assist town development when invited 

Transwaste Canterbury Limited 

Transwaste Canterbury Limited operates a regional landfill at 

Kate Valley and associated transport services in a joint venture 

with Canterbury Waste Services. 

The Hurunui District Council is one of the councils in the 

Canterbury region which between them own 50% of the shares 

in Transwaste Canterbury Limited. Hurunui’s share of the 

Company amounts to 1.2%. 

The council shareholders appoint representatives to a joint 

committee which in turn appoints four of the eight directors. 


Ensure that Transwaste performs in accordance with its 

Statement of Intent. 

Canterbury Economic Development Company 

The Canterbury Economic Development Company was set up 

as a Council Controlled Organisation (CCO) in 2006 to enable 

the allocation of regional partnership funding for economic 

development from Central Government for the Canterbury 

Region. Two of the ten Company Directors represent North 

Canterbury; one was nominated by the three Councils (Kaikoura, 

Hurunui and Waimakariri District’s) and the other is an industry 

representative endorsed by the Councils. The intention was 

for these directors to represent North Canterbury during any 

contestable funding allocation processes undertaken by this 

CCO. 

This company was expected to have a short life and as the 

Regional Strategy Funding Programme has now been completed; 

the Board has met to discuss the future of the company and 

whether the company is shelved for future use of the councils. 

no definite plans for the company have been made. 


• Facilitate project proposals in the region. 

• Provide leadership to stimulate and transform the 

Canterbury economy. 

• Communicate national shifts to regional economic 

development role players. 

198


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 

199


Policy Introduction 

Most of the policies that are included in this section have been 

reviewed and updated, hence their inclusion into this Plan. 

These policies are: 

• Development Contributions Policy 

• External Liability Management Policy 

• Investment Policy 

• Internal Financing Policy 

• Rates Remissions on Biodiversity Policy 

• Reserves Funding Policy 

• Revenue and Financing Policy 

• Treasury Risk Management Policy 

A new policy was developed in light of the Canterbury 

earthquakes and the reminder that from time to time, situations 

beyond anyone’s control can significantly impact on our ability 

to pay rates. It is the: 

• Rate Remissions on Land Affected by Natural Calamity 

Another policy has been added for your information as it is an 

important one regarding Council decision making. This policy 

sets out guidelines and requirements around what we must 

consider when making decisions. It is the: 

• Significance Policy 

We do have many other policies in place that are not included 

in this Plan. Our policy manual can be located on our website. 

200

Development Contributions Policy 

Introduction 

Any growth in the District will impact on the existing reserves, 

sewerage, water, stormwater, roading, township infrastructure 

and recreation facilities. To ensure that the expected population 

growth does not adversely affect residents the Council has 

identified a number of infrastructural developments needed to 

cope with this growth. 

The Local Government Act 2002 (LGA) allows councils to 

collect ‘Development Contributions’, which are contributions 

of land or money made by developers towards the cost of 

providing new infrastructure, or increased capacity in existing 

infrastructure as a result of growth. 

Councils can also collect Financial Contributions under the 

Resource Management Act 1991 via rules in the District Plan. A 

Council cannot however take both Development Contributions 

and Financial Contributions for the same purpose. The type 

of contribution must be stipulated in the Development 

Contributions Policy. 

The Hurunui District Council has decided that growth in the 

District will be funded from 3 main sources: 

• Financial Contributions (levied under the Resource 

Management Act), which are designed to offset adverse 

effects of a particular development, and are identified in 

the Hurunui District Plan. 

• Development Contributions (charged under the Local 

Government Act 2002) which are for growth related 

projects that are identified in the Hurunui Long Term 

Community Plan. 

• Existing ratepayers and residents through rates and 

loans. 

Review of Development Contributions 

Policy 

Council’s Development Contributions Policy as outlined in the 

2009-2019 LTCCP was based on a number of assumptions, of 

which growth projections formed a key component. Council 

directed that the Policy should provide for a significant increase 

in development in the Amberley Township, and adjustments to 

the Policy were made accordingly. However, in the intervening 

period, the amount of growth has been significantly lower 

than anticipated and as a result, the level of Development 

Contributions received has been lower than budgeted. 


review concluded that the methodology was sound, and based 

on experience sourced from other Councils, suggestions were 

made to simplify the methodology. 

One of the key suggestions was to consider rationalising the 

number of collection areas for contributions. For metropolitan 

Councils, this is relatively easy to achieve as each new 

development will generally receive the same benefit from the 

growth projects identified as the next development. Due to the 

geography of the Hurunui District and the specific requirements 

for individual areas, Council felt that this could not be easily 

achieved. 

A further suggestion was for the Council to reinstate an 

interest component to the calculation of the contribution. This 

suggestion was made in the light that a number of the growth 

related projects will occur ahead of receiving a sufficient level of 

development contributions and as a result, there will normally be 

a holding cost attached to the project. When this was reviewed 

as part of the 2009-2019 LTCCP, the Council favoured the use 

of an inflation component rather than an interest component, 

which meant that the individual development contribution will 

increase on an annual basis to match the increase in inflation, so 

as a result, the developer who pays a contribution in four years’ 

time will pay a higher level of contribution than the developer 

who pays now. The Council considered that the inclusion of an 

interest component would result in further increases to the 

individual contributions and decided against it. 

Updated growth projections based on Statistics New Zealand 

data have been provided which are at a more conservative rate 

of development than was provided for in the 2009-2019 LTCCP 

due to the Council not making specific adjustments to particular 

areas. It is important to note that due to the earthquake in 

Christchurch in February 2011 that the census scheduled for 8 

March 2011 was not undertaken and as a result, the population 

projections have not been updated. The census has now been 

scheduled for 5 March 2013 and the population projections can 

be re-assessed at that stage. 

Key Changes made to Methodology 

As a result of the review, the Council has made some changes 

to the methodology. 

In general, the Council has retained the projects that are subject 

to the methodology, so those projects that were identified in 

the 2009-2019 methodology have been continued, however, due 

to the lower level of growth that has resulted in the last three 

years, some projects have been deferred for a longer period. 

As preparation for the 2012-2022 LTP, the Council contracted 

Pricewaterhouse Coopers, in conjunction with the Council’s 

legal advisers, Buddle Findlay, to undertake a comprehensive 

review of out Development Contributions Methodology. The 

The Council has, in some cases, reduced the portion of the 

project that relates to growth, reflecting that some of the 

projects (particularly in relation to Community Infrastructure 

and Reserves) will benefit the wider community rather than 

201


strictly those ratepayers who occupy the new developments. 

Specifically, the Council has resolved that the portion of the 

costs relating to growth for: the Amberley Township Reserves 

will reduce to 90% (down from 100%); Amberley Walking and 

Cycling Routes at 80% (down from 100%); Amberley Ward 

Reserves at 90% (down from 100%) and Conical Hill Reserve 

Walkway at 90% (down from 100%). 

The Council proposes to introduce one new development 

contribution for the Hanmer Springs Domain. As a result of 

community discussions, in the preparation of the budgets to be 

included in the 2012-2022 Long Term Plan, the Hanmer Springs 

Community Board recommended that a total of $1 million be 

budgeted for an upgrade to the various facilities situated on the 

Hanmer Springs Domain. The full identification of the project 

will be undertaken in 2012/2013 with proposed physical works 

to be undertaken in 2015/2016. It was resolved that the portion 

of the project that relates to growth is estimated at 50%. 

Result of Key Changes 

The Council’s overriding philosophy in regards to the 

Development Contributions was that the level of the individual 

contribution should be consistent with the level that has been 

charged in the past, with the adjustment for inflation and any 

adjustment required as a result of reducing the growth related 

portion of the project. 

With the uncertain nature of development due to the current 

situation in Canterbury as a whole and Christchurch in particular 

and coupled with the delays in obtaining updated population 

projections, it was felt that there was a need for consistency 

of the level of contributions for the short term, in particular in 

light of various developments that are in their formative stage 

whose feasibility may be reliant on the levels of contributions 

not increasing significantly. 

On the basis of a consistent level of individual development 

contributions received and with a lower level of development 

forecast, to ensure that the levels of contributions received is 

sufficient to meet the similar level of project costs, the Council 

has proposed that the collection period for some of the projects 

be extended. This will allow the similar number of developments 

that contribute to the cost of the project to be undertaken, 

however, it is expected to take longer to achieve that. 

Specifics of the Development 

Contributions Policy 

The specifics of this policy are divided into three main sections, 

which identify the rationale and formula for contributions 

for: Reserves, Network infrastructure, and Community 

infrastructure. These are preceded by a few general policy 

statements, as set out below. 


The Council is charging development contributions to ensure 

that the growth related capital expenditure identified in this Long 

Term Plan (LTP) is recovered from those who directly benefit 

from it, rather than from ratepayers. Development contributions 

will be charged when the effect of the development, or the 

cumulative effect of developments, contribute to the need for 

the development of physical works or Council services and 

when these works or services have been allowed for in the LTP. 


The purposes for which Financial Contributions may be taken 

under the Resource Management Act 1991 are related to 

section 5 of the Act (the sustainable management of natural 

and physical resources). A Financial Contribution can be 

imposed on a resource consent as long as it is in accordance 

with a rule in the district plan. 

Financial Contributions in District Plan can be taken to pay the 

costs of services such as roads, water supplies, sewerage and 

drainage systems which must be developed to address adverse 

effects on the environment. 

Council uses financial contributions to fund capital expenditure 

on infrastructure and community facilities where: 

• The development has not been foreseen in the LTP, 

but the effect of development directly contributes to 

the need for physical works on Council services and 

infrastructure; or 

• The Council’s population projections do not indicate 

that the costs of the Council’s investment will be 

recovered within an appropriate timeframe; or 

• The costs of Council-funded investment will impact on 

existing ratepayers; or 

• There is a need to offset adverse environmental effects 

that may result from a development, for example to 

improve a wetland to offset land disposal. 

Financial contributions are also used to take land for any 

infrastructure, reserves or other community facility within a 

development, where that land or those facilities will vest in the 

Council. 

Further information on Financial Contributions is available in 

the Council’s District Plan. 

Basis for Calculation of Contribution 

The detailed basis for assessment for developments is explained 

for each contribution. There are two broad groups of 

contributions. One applies to services and facilities that have a 

District wide benefit and the costs are apportioned across the 

202


whole District. The second group has more tangible benefits for 

a defined group of users and the costs are apportioned to the 

direct beneficiaries. 

Growth Forecasting Assumptions 

Over the last three census periods, the Hurunui District has 

experienced a 10% increase in its permanent resident population 

as measured by Statistics New Zealand (SNZ). As the census 

timed for 8 March 2011 was deferred due to the earthquake in 

Christchurch in February, there have been no suitable updated 

population projections. High rates of absentee ownership of 

lifestyle blocks and holiday homes (especially in Hanmer Springs) 

complicate the process of forecasting growth in the District, but 

statistical correlations indicate a significant relationship between 

the census data upon which these figures are based (the “usually 

resident population”) and overall growth in the District (the 

number of properties added to the rating database from which 

development contributions may be collected, including holiday 

homes, seasonal accommodation etc.) In some localities, this 

correlation is stronger with census data in the surrounding area 

(Ward), or even with that for the District as a whole, and in 

such cases it has been assumed that population growth in these 

wider areas is more of a driver of growth (i.e. that there will be 

more migration into the locality than the SNZ figures for that 

locality indicate). 

The SNZ medium series has been used for long range 

forecasting, as this series is the more likely to be stable over 

time. When preparing the methodology for the 2009-2019 

LTCCP, the Council deviated from the projections to take into 

account a level of potential development in Amberley, which due 

to a number of reasons, did not eventuate over the subsequent 

three year period. The Council, erring on the conservative side 

have adopted the medium series for the growth projections for 

the period of the LTP, however, instead of reducing the number 

of new units of growth to be collected in the defined period 

to calculate the resulting level of the individual development 

contribution, it has extended the collection period in which to 

achieve that same level of growth. The graphs on page 26 show 

the growth expected in key areas of the District and for the 

District as a whole. 

Accuracy of Predictions 

Unfortunately, the “area unit” boundaries used by SNZ do not 

always align with the areas from which the Council wishes to 

collect development contributions, and, accordingly, a number 

of assumptions have been used for calculating the population 

projections for these areas (e.g. subtracting or adding areas for 

which we do have figures; extrapolating GIS data for unknown 

areas in cases in which there is a good correlation between this 

and known areas). 

This procedure and all of the assumptions mentioned above are 

potential sources of error for this policy, but they are necessary 

approximations given the information and resources that we 

have to work with. 

There is obviously a large degree of uncertainty in any attempt 

at predicting the future (the variance between the SNZ high 

and low population projection series is 17%), and, given the 

large number of assumptions for this policy (detailed above), 

this is difficult to quantify. All trends have also been checked in 

a qualitative way by examining graphs. 

The accuracy of the growth projections is further complicated 

by the as yet unknown effect of ability for land to be rebuilt on 

in both Christchurch and Kaiapoi and the possible effects that 

may have on the Hurunui District, being in close proximity to 

both areas. 

Administration 

Development Contributions will be levied at different 

development ‘trigger’ points. Under the Local Government Act 

2002 the contribution can be collected on grant of a resource 

consent under the Resource Management Act, or the grant of a 

building consent under the Building Act or an authorisation for 

a service connection. These are detailed for each contribution 

in the pages following. 

The particular development contributions payable will be 

determined from the policy schedules applicable at the date of 

approval of a resource consent, building consent, or serviceconnection 

authorisation. 

If these contributions are paid within a period of two years of the 

approval of the resource consent, building consent, or serviceconnection 

authorisation, no further development contributions 

will be payable for the units for which the contributions 

have been paid. Contributions paid upon sections will cover 

subsequent development relating to one residential housing 

unit per section. Additional sections, units of housing, and/or 

units of water connected will incur additional contributions as 

determined from the policy schedules applicable at the date of 

approval of the resource consent, building consent, or serviceconnection 

authorization for the additional units. 

If contributions are not paid within the period of two years from 

the date of assessment, a reassessment of contributions payable 

will be made in accordance with the policy schedules applicable 

at the date of payment. The consequence of this is that the total 

amount of contributions payable will likely be greater than that 

set out in the assessment made at the date of approval. 

Contributions will be refunded, less administration costs, if the 

works for which they were collected (ore equivalent works) do 

not proceed within the “maximum period” identified for each 

work in Appendix 2. 

203


The requirement to pay a development contribution is not 

imposed as a condition of the resource consent or the building 

consent, but arises by operation of law as a consequence of the 

adoption of this policy, and is not therefore subject to either the 

objection and appeal processes set out in Resource Management 

Act or the determination procedures set out in the Building Act. 

Projects Costs 

Projected units of demand have been updated for all projects, and 

where the capital cost of a project has increased or decreased 

from the amount previously projected, the capital expenditure 

on which the development contributions are calculated has 

been amended. All figures have been inflation adjusted as shown 

in Appendix 2, and the projected development contribution 

payable for each year of the ten year financial planning period 

of this plan is set out in Appendix 3. (GST added and figures 

rounded). 

Reserves Development Contribution 

Policy 

Definition 

Within the Hurunui District, development contributions for 

reserves apply to land and the development of land that is under 

the control and management of the Hurunui District Council 

or is being managed under the Reserve Management Act 1977. 

Development contributions are collected for the following 

purposes: 

• Land purchase of reserves for the reserves network 

including linkage strips 

Development of vested reserve land, including: 

• Construction of recreation facilities including buildings 

• Fencing and gates 

• Sport surfaces 

• Development and upgrading of reserves to meet growth 

• Developing access to reserves, including paths, roads, 

car parking and cycleways 

• Signage 

• Planting of major trees 

• Public toilets associated with the use of the reserve 

• Playgrounds and play equipment 

• Park furniture including seats, litter bins, picnic tables 

and lighting 

• Infrastructure, water, irrigation, power and sewage 

• Any site specific requirements 

Particular projects are the: 

• Development and upgrade of the Queen Mary Site for 

recreational use 

• Redevelopment of the Amberley Pavilion 

• Omihi Domain Netball Court Development 

• Development of facilities on the Hanmer Springs 

Domain 

• Conical Hill/Oregon Heights/Lucas Lane walkway 

development 

• Acquisition and development of Amberley Ward 

Reserves 

• Acquisition and development of Amberley Township 

Reserves 

Need to Undertake the Activity 

The Council aims to add to and develop its reserve network 

to provide areas that allow people to enjoy physical and 

passive recreation, while at the same time retaining areas of 

conservation value. All of the above are important for individual 

and community wellness. The capital projects proposed will add 

considerable improvements to the existing network of reserves 

and facilities. 

Community Outcomes to which the Activity 

Primarily Relates 

A desirable and safe place to live. 

Distribution of Benefits 

Economic 

The ongoing development of the reserves network will result in 

a better physical environment and a healthier community, which 

in turn will encourage more people to do business and live in 

the area. 

Social 

As growth increases and demographic and lifestyle changes 

occur, it is necessary for appropriate reserve space to be 

provided and enhanced, in line with community expectations. 

Cultural 

Open spaces, pedestrian links and sports fields provide 

opportunities for sporting and other recreational activities 

which are important aspects of the community’s culture. 

Environmental 

The development of reserves will enable the physical 

environment, including special heritage, vistas and open spaces 

to be protected as growth increases. 

204


Duration of Benefits 

The reserves that are being developed over the next twenty 

years will provide ongoing and long term benefits to the 

Community. 

Impact of the Activity on the Current and 

Future Well Being of the Community 

The development of reserves and the facilities on reserves 

to meet the demands from growth will have a considerable 

impact on the social, economic, cultural and environmental 

well being of the community. Future changes in lifestyle and the 

structure of the population will require responsiveness on the 

part of the Council to provide recreation opportunities, social, 

environmental and cultural spaces that will encourage individuals 

to be involved in a range of leisure, play and recreation activities 

and will promote a healthy community. Benefits apply to the 

whole community from the provision of reserves. While there 

are wider community and environmental benefits from the 

creation of new reserves, the Council considers that future 

property owners should contribute directly to the development 

costs of reserves to ensure that the District can continue to 

provide the existing level of service to a growing population. 

Sources of Funding 

Loans 

Rates 


Yes 

Yes 

Yes 

For further detail on funding for capital expenditure refer to 

the Capital Expenditure Schedule on page 230 the Revenue and 

Financing Policy, and the Reserves Activity Plan. 

Calculation of Contribution 

There are two reserve contributions, one for District Wide 

Reserves applicable to all new residential units of demand. This 

is based on a wider sphere of use of the land. The other is for 

Amenity Reserves, which are primarily based around use by the 

residents of a ward or township. In both cases, contributions 

will be payable on a unit rate of demand for any new residential 

activity or subdivision, which creates a residential opportunity 

whether urban or rural. 

Contributions are calculated per lot by dividing the cost of the 

capital expenditure due to growth as detailed in appendix 1. by 

the number of units of growth expected in the target period. 

The resulting amounts are set out in appendix 2. These amounts 

are capped as per statutory requirements at the greater of 7.5% 

of the value of the additional allotments created by a subdivision 

or the value equivalent of 20 square metres of land for each 

additional household unit created by the development. This value 

will be calculated on an individual basis based upon estimated 

market value at the time that the contributions are collected. 

Points at which Contributions are Collected 

Contributions will be collected at the time of granting a 

subdivision consent, or if a separate certificate of title exists 

against which no development levy has been paid, at the time of 

issuing a building consent. 

Rationale for Individual Projects 

The Queen Mary site is envisaged as providing for future 

recreational opportunities for a twenty year planning horizon 

from 2004. There is a need to add to and improve this land 

and expand its potential for recreation use. It will be a District 

Reserve and, as such, all expenditure on development will be 

spread across both existing and future units of demand across 

the district over the twenty year period. 

The development and upgrade of the Conical Hill/Oregon 

Heights/Lucas Lane reserve walkway is required to cater for the 

increased demands put on this reserve from growth and a local 

desire to fund this project. The cost will therefore be spread 

across the future units of demand from within the Hanmer 

Springs Ward. 

The development of the facilities at the Hanmer Springs Domain 

was identified by the Hanmer Springs Community Board as a 

key project to undertake after discussions with the community. 

The portion of the costs that is deemed to be growth related 

will be spread across the future units of demand from within the 

Hanmer Springs Ward. 

The Amberley Domain Pavilion redevelopment provides for an 

improvement to an amenity reserve. The cost will therefore be 

spread across both existing and future units of demand from 

within the Amberley Ward. 

The Omihi Reserve Netball court upgrade provides for an 

improvement to an amenity reserve. The cost will therefore be 

spread across both existing and future units of demand from 

within the Glenmark Ward. 

The acquisition and development of Amberley Ward Reserves 

are to provide for additional recreation facilities and sports 

grounds within the Ward that will be required due to growth 

over the foreseeable future, as identified in the Amberley Reserve 

Strategy. Its cost will thus be recovered from development 

occurring within the Amberley Ward. Due to a lower amount of 

growth since the initial planning period, the date for this project 

has been pushed out to 2029, and its cost will be spread across 

the future units of demand expected. 

The acquisition and development of Amberley Township 

Reserves are to provide for additional neighbourhood reserves, 

passive reserve areas and linkage strips, in line with the Amberley 

205


Reserve Strategy. These reserves will be required due to growth 

within the Township. Since, again, this is projected to slow, these 

have been rescheduled to start at a later date, and therefore 

the cost will be spread across the future units of demand from 

within the Amberley Township. 

Basis for Assessment 

It is recognised that there are two main types of reserves; those 

that are used by the community as a whole and those that are 

used more often by those living or working in the immediate 

locality of the reserve. For this reason the Reserves Policy is 

divided into “District Wide Reserves” And “Amenity Reserves”. 

Residents and workers in a Ward or township area make use of 

Amenity Reserves, while a wider cross section of the community 

will more often use a District Reserve. Accordingly the formula 

for calculating contributions is adjusted to recognise the type of 

reserve which development is occurring on. The exception to 

this rule is the Conical Hill/Oregon Heights/Lucas Lane Reserve 

which is a District Reserve but will be funded by growth in the 

Hanmer Ward. This is due to a desire by the local community 

to upgrade this reserve in order to accommodate the demands 

from growth occurring within the Ward. The Council has 

accepted this modification to the general policy. 

Multi Unit Residential Developments 

The payment for multi unit residential housing including flats, 

town houses, retirement villages and apartments, will be applied 

on the basis that each separate residential unit shall be treated 

as a separate unit of demand and be charged accordingly 

Travellers Accommodation Including Hotel/Motel 

Units and Long Term Workers Accommodation 

For each hotel, motel unit or separate unit of travellers or workers 

accommodation (excluding home stays accommodating less 

than 6 visitors) a payment of 50% of the standard reserve development 

contribution will be applied to each separate unit of 

accommodation let for tariff. 

For camping grounds, hostels, bunkhouses and backpackers 

accommodation or comparative travellers accommodation a 

contribution shall be determined on the basis of payment of 

50% of the standard reserve development contribution for each 

4 visitors the premises/camping ground can accommodate. 

Any manager’s accommodation associated with travellers or 

workers accommodation shall be charged at the full rate. 

Assumptions 

That all households should contribute equally to either District 

or Amenity Reserves irrespective of whether the unit of demand 

is urban based or rurally based. This assumption is based on the 

fact that the capital expenditure being proposed on reserves for 

growth is likely to be used on an equal basis by both urban and 

rural dwellers. 

That development that creates equivalent transient demands for 

infrastructure upgrades should contribute on a reduced scale. 

That the District will grow as per the forecasts set out in this 

Policy. 

Circumstances for Refunds or Reductions 

In the event that planned reserve purchases, developments or 

alternative upgrades are not undertaken within the “maximum 

period” set out in appendix 2, development contributions will be 

refunded, after allowing for the associated administration costs. 

(In the case of land taken for reserve purposes, the maximum 

period will be negotiated with the land owner at the time the 

contribution is made). 

Where land is transferred to the Council for reserve purposes 

by agreement that will have benefits to the community that are 

similar to those which would be provided by a reserve under 

its existing control, the Council may agree to a reduction in 

the reserve contribution to acknowledge the benefit. For 

Amberley Township Reserves and Amberley Ward Reserves, 

circumstances where this may be appropriate are detailed 

further in the Amberley Reserve Strategy. 

Where the Council and a developer agree that the development 

will incorporate assets of benefit to the community, the Council 

may agree to a reduction in the reserve contribution to 

acknowledge the benefit. 

Where the Council assesses that no additional demand on 

reserves will arise from a development, the Council may agree 

to a reduction in the reserve contribution. 

Network Infrastructure Development 

Contributions Policies 

Definition 

Within the Hurunui District, network infrastructure for the 

purposes of development contributions includes sewer, water 

and stormwater services under the control and management of 

the Hurunui District Council. 

Policy Principles 

The policies for the assessment of development contributions 

for sewer, water, and stormwater have been developed on the 

206


broad principle that infrastructure costs incurred to meet 

demands associated with growth should be spread as equitably 

and as practicable among the beneficiaries of the expenditure. 

The primary beneficiaries of expenditure on new network 

infrastructure are developers, builders, and new property / 

building owners; hence development contributions are collected 

for the costs involved. 

District Plan Development Areas 

The District Plan identifies zoning for future growth in 

Amberley, Hanmer Springs and Leithfield. Growth is also 

occurring in areas serviced by the Ashley, Cheviot and Hurunui 

Rural Water schemes. Growth in other towns in the District 

can be accommodated without substantial upgrading of water, 

sewerage or stormwater infrastructure. 

Formula 

The formula and the contribution for each category of network 

infrastructure is the capital cost of the project attributable 

to growth Appendix 2 divided by the number of new units 

of demand expected in the target period, producing the 

contribution amounts shown in Appendix 3. 

Point at which Contributions are Collected 

Contributions for rural water schemes are collected at the 

point of making an application to connect to the scheme in 

question. Contributions for stormwater are collected when a 

subdivision consent is granted and / or where subsequently an 

additional dwelling house or business premise is promoted on 

the same lot at the time when either a resource consent or 

a building consent is granted. All other network infrastructure 

connections (i.e. Sewerage and Township water) are collected at 

the time of granting a subdivision consent or if no development 

levy has been paid, at the time of issuing a building consent or 

resource consent or at time of connection to the network 

service. 

Connecting to Existing Services 

In addition to any Development Contribution charge, all 

connections to utilities and services will be charged a connection 

fee, based on an assessment of actual costs. 

Water Infrastructure Policy 

The Hurunui District Council operates several different water 

supply schemes and while the policies and methodology for 

calculating development contributions are the same for each 

scheme, the actual level of contribution varies because of 

different growth and planned expenditure. 

The Schedule details the different amounts applicable to 

developments within each scheme. 


The Council provides potable water to avoid the risk of water 

borne diseases affecting public health. The growth of the District 

will result in additional connections to the system which will 

increase the demand on existing services. The Council believes 

it should be developing long term sustainable solutions that 

cater for users of today and tomorrow; therefore, any scheme 

it develops or extends will have a planned growth component 

within it. 

Community Outcomes to Which the Activity 

Primarily Contributes 

• A place with essential infrastructure 

• A desirable place to Live 


Economic 

The supply of potable water supports economic growth, which 

impacts on the whole community; however the individuals that 

are connecting to a system will gain the direct benefits of the 

service. 

Social 

It is convenient and efficient that an agreed level of supply is 

made available. The expansion of the systems in line with growth 

benefits the health of individuals and the community. 

Cultural 

The extraction of water is done in a manner that respects 

cultural relationships with water. 

Environmental 

The extraction of water for potable water supply systems 

impacts on the natural waterways and ecosystems of this 

district. Sustainable growth contributes to the maintenance of 

a high quality natural environment. 


The water supply systems that are being upgraded over the years 

within their respective planning horizons will provide long-term 

benefit to the Community. The duration of benefit is dependent 

on the ability to gain the necessary resource consents, but is 

anticipated to be a minimum of 35 years with any engineering 

solution intended to provide future benefits equivalent to the 

design life of the system’s components which for certain assets 

is in excess of 70 years. 

Impact of the Activity on the Current and Future 

Well Being of the Community 

207


Water is a necessity of life and the supply of potable water 

to meet the needs of growth will have a considerably positive 

impact on the social, economic and environmental well being of 

the community. 

The capacity of the schemes allow for growth that ensures not 

only current users, but also future users, will benefit from the 

system. It is equitable that those who join a scheme should 

contribute to the cost of providing for growth. Current users 

must fund the cost of additional capacity until those future users 

are connected; therefore it is reasonable that when those future 

users arrive they make a contribution to the cost of catering for 

that growth. 

Sources of Funding: 

Loans 

Rates 


Yes 

Yes 

Yes 

For further detail on funding for capital expenditure refer to the 

Capital Expenditure Schedule, the Revenue and Financing Policy 

or the Water Activity Plan. 


The contribution for Hanmer Springs Water, Amberley Water 

and Ashley, Cheviot and Hurunui Rural Water Supplies will be 

calculated on the cost of the capital expenditure associated with 

increasing the capacity of the systems to enable growth divided 

by the number of new units of demands (including business and 

residential use development) that the area is capable of servicing. 

The result is the cost that will apply to each new unit of demand. 

The units of demand for Hanmer have been calculated on the 

basis of providing capacity for the future. The units of demand 

for Amberley, Cheviot Rural, Ashley Rural and Hurunui Rural 

have been calculated on the basis of providing capacity for 

the future as well. These figures have been extended from the 

planning periods set out in earlier versions of this policy due to 

lower than expected growth. 


Current users and future users benefit equally from the maximum 

capacity of a water supply system. Based on the assumption 

that one current user will consume the same amount of system 

capacity as a future user, they should equally share the cost of 

providing that maximum capacity. 

Residential & Business Activities (Urban Areas) 

Each new standard connection or subdivision lot established 

will be charged one development contribution as identified in 

the schedule. Additional business established on the same lot 

will be charged a separate development contribution. 

Multi Unit Residential Developments: 




as a separate unit of demand and be charged accordingly. 

Travellers Accommodation Including Hotel/Motel Units and 

Long Term Workers Accommodation (Urban Areas) 

For each hotel, motel unit or separate unit of travellers or 

workers accommodation (excluding home stays accommodating 

less than 6 visitors) a payment of 50% of the standard water 

development contribution will be applied to each separate unit 

of accommodation let for tariff. For camping grounds, hostels, 

bunkhouses and backpackers accommodation or comparative 

travellers accommodation a contribution shall be determined on 

the basis of payment of 50% of the standard water development 

contribution for each 4 visitors the premises/camping ground 

can accommodate. Any manager’s accommodation associated 

with travellers or workers accommodation shall be charged at 

the full rate. 

Assumptions 

That all Residential and Business zone properties consume the 

same unit of demand and that where this is not the case a means 

exist to determine a variance to the standard (see above). 

That the District will continue to grow as per the population 

forecasting contained within this Policy and new infrastructure 

assets will be designed to cater for additional growth capacity. 


In the event that planned system upgrades or alternative 

upgrades are not undertaken within the “maximum period” set 

out in appendix 2. development contributions will be refunded, 

after allowing for the costs of investigating the upgrade options 

and associated administrative costs. 

There will be no postponements of payments or remissions of 

payments. 

Sewer Infrastructure Policy 

The District operates sewerage schemes in Amberley and 

Hanmer which are subject to the pressures of growth and 

require extra capacity. While the policies and methodology 

for calculating Development Contributions are the same for 

each scheme, the actual level of contribution varies because 

of different growth and the level of planned expenditure. The 

Schedule (Appendix 3) details the different amounts applicable 

to developments within each area. 

In addition to the Amberley sewerage contribution, Council 

208


also charges financial contributions under the District Plan 

in particular areas along Osbourne Road, Douglas Road 

and Leithfield Road. (Further information on the areas these 

contributions apply to can be obtained from Council’s offices.) 


The Council provides reticulated sewer treatment and 

disposal systems to achieve high quality public health and to 

minimise adverse effects on the receiving environment. There 

is an expectation from the community that high environmental 

standards will be met. 

The growth of the District and the resulting additional 

connections to the system will increase the demand on existing 

services. The Council believes it should be developing long 

term sustainable solutions that cater for users of today and 

tomorrow, therefore, any scheme it develops or extends will 

have a planned growth component within it. 




• A place that demonstrate environmental responsibility 

• A desirable Place to Live 


Economic 

Effective and efficient sewerage treatment and disposal systems 

will support economic growth, which impacts on the whole 

community, however the individuals that are connecting to a 

system, will gain the direct benefits of the service. 

Social 

The expansion of the systems in line with growth benefits the 

health of individuals and the community. 

Cultural 

Effective sewerage treatment and disposal systems and practices 

respect the values of all sections of the community. 

Environmental 

The health of the District’s water resources and natural 

ecosystems will be better protected by reticulated treatment 

and disposal systems. 


The reticulation, treatment and disposal systems that are being 

implemented over the life if this Plan is anticipated to have a 

minimum of 35 years benefit, with any engineering solution 

intended to provide future benefits equivalent to the design life 

of the systems’ components. 



The continued provision of sewerage reticulation treatment 

and disposal systems to meet the needs of growth will have a 

considerable positive impact on the economic, social, cultural 

and environmental well being of the community. The capacity 

of the schemes allow for growth that ensures not only current 

users, but also future users, will benefit from the system. It 

is equitable that those who join a scheme should contribute 

to the cost of providing for that growth. Current users must 

fund the cost of additional capacity until those future users are 

connected; therefore it is reasonable that when those future 

users arrive they make a contribution to the cost of catering 

for that growth. 


• Loans Yes 

• Rates Yes 

• Development Contributions Yes 


Expenditure Schedule at the rear of this Policy, the Revenue and 

Funding Policy or the Sewerage Activity Plan. 


The contribution for both Amberley and Hanmer Sewerage 

Schemes is calculated on the cost of the capital expenditure 

associated with increasing the capacity of the system to provide 

for growth, divided by the number of units of demand that are 

expected. The result is the cost that will apply to each new lot. 

(Refer to Appendix 3 for details of each contribution.) 

The Amberley Sewerage Scheme is broken down into two 

contributions: one which applies to all Amberley Urban areas 

serviced by the scheme for a pond upgrade which will increase 

capacity for the whole scheme; the other for pipe upgrades 

which benefit and are therefore funded by future Amberley 

township units only. The Hanmer Springs capital expenditure 

is funded by new units of growth within the Hanmer Springs 

sewer area. 

209


Basis for Assessment for Treatment, Disposal and 

Reticulation Costs 

Current users and future users benefit equally from the maximum 

capacity of a sewerage system. Based on the assumption that 

one current user will consume the same amount of system 

capacity as a future user, they should equally share the cost of 

providing that maximum capacity. 

Residential & Business Activities (Urban Areas): 

Each new standard connection or subdivision lot established 

will be charged one development contribution as identified in 

the schedule. Additional business established on the same lot 

will be charged a separate development contribution. 






Travellers Accommodation Including Hotel/Motel Units and 

Long Term Workers Accommodation (Urban Areas) 

For each hotel, motel unit or separate unit of travellers or 

workers accommodation (excluding home stays accommodating 

less than 6 visitors) a payment of 50% of the standard sewer 

development contribution will be applied to each separate unit 

of accommodation let for tariff. For camping grounds, hostels 


travellers accommodation a contribution shall be determined on 

the basis of payment of 50 % of the standard sewer development 

contribution for each 4 visitors the premises/camping ground 

can accommodate. Any managers’ accommodation associated 

with travellers’ or workers accommodation shall be charged at 

the full rate. 

Assumptions 

That all residential lots produce the same unit of demand. 

That the District will continue to grow as set out within the 

population forecasting contained within this policy. 

That new infrastructural assets will be designed to allow for 

additional growth capacity. 

That the costs of reticulating, treating and disposing of sewage 

are in proportion to the volume of sewage produced. 


In the event that planned system upgrades, or alternative 

upgrades, are not undertaken within the “maximum period” set 

out in appendix 2, development contributions will be refunded, 




payments. 


Infrastructure Policy 

The Council is establishing a new stormwater area in Hanmer 

Springs for stormwater disposal associated with expected 

demands created by growth. The Council will also undertake 

extensive upgrades to the Amberley stormwater system, for 

off-site upgrades to the reticulation system required by the 

expected growth in the township and for flood-management 

purposes (a component of which will cater for future growth). 

All on-site stormwater works in Amberley will be funded by 

developers through financial contributions under the District 

Plan. The stormwater systems and upgrades will cater for growth. 

The policy and methodology for calculating Development 

Contributions are the same for each area, but the actual level of 

contribution varies depending upon the capital cost and upon 

the growth component. 

Appendix 3. includes details of the different amounts applicable 

to developments within each township area. 


The Council needs to provide stormwater systems to achieve 

high quality public health and to minimise adverse effects on the 

receiving environment. 

Effective stormwater systems and networks remove a constraint 

on land development. 

There is an expectation from the community for high 

environmental standards to be met. 

The growth of the District and the resulting additional 

connections will increase the demand on existing services. The 

Council believes it should be developing long-term sustainable 

solutions that cater for users tomorrow; therefore, any scheme 

it develops will primarily be designed to accommodate planned 

growth. 






Economic 

Effective and efficient stormwater systems will support economic 

growth and mitigate the costs associated with flooding for the 

whole community. The individuals that are connecting to a 

system will gain the direct benefits of the service. 

210


Social 

Health, efficiency and safety benefits apply indirectly to the 

whole community and directly to those who are connected to 

each scheme. Stormwater systems minimise harm to people 

from potential flooding. 

Cultural 

Effective stormwater systems protect community values 

associated with waterways and incorporate the cultural 

concerns of Maori with land and water. 

Environmental 

Stormwater systems contribute to a high quality natural 

environment and mitigate the adverse environmental effects of 

flooding. 


The stormwater systems that are being implemented will 

provide a long-term benefit to the Community. The duration 

of benefit is dependent on the ability to gain the necessary 

resource consents, but is anticipated to be a minimum of 35 

years. 



Effective and efficient stormwater systems that meet the needs 

of growth will have a considerable impact on the current and 

future social, economic, cultural and environmental well being of 

the community. 

Current users must fund the cost of providing capacity until 

those future users are connected; therefore it is reasonable that 

when those future users arrive they make a contribution that 

relates to the cost of providing stormwater systems. 


Loans 

Rates 


Yes 

Yes 

Yes 


Funding Schedule at the rear of this Policy or the Finance and 

Revenue Policy. 


The contribution is calculated on the cost of the capital 

expenditure associated with constructing that component of 

the stormwater systems that cater for growth (estimated at 

about 80% in the case of Hanmer Springs and Amberley, and then 

dividing it by the number of new units of demand establishing 

within the area being serviced. The result is the cost that will 

apply to each new lot. (Refer to appendix 2. for details of each 

contribution.) 


Future users both business and residential benefit equally from 

the maximum capacity of a stormwater system. Based on the 

assumption that one current user will need the same amount of 

system capacity as a future user, they should equally share the 

cost of providing that maximum capacity. Each new business or 

subdivision allotment that is created will pay on the basis of one 

unit of demand. 

Assumptions 

That all Residential and Business zone properties have the same 

volume of run off. 

That the District will continue to grow as predicted in the 

population forecasting as contained in this Policy and the new 

infrastructure assets will be designed to accommodate the 

growth projected over 26 years (2004-2030). 


In the event that planned system upgrades, or alternative 

upgrades, are not undertaken within the “maximum period” set 

out in appendix 2, development contributions will be refunded, 




payments. 

Community Infrastructure 

Development Contribution Policy 

Within the life of the LTP, the Hurunui District Council has 

planned for considerable capital investment on Community 

Infrastructure that is under its management and control. 

A proportion of this expenditure relates to catering for 

the increased demands of growth. The five projects listed 

below relate to planned capital development associated with 

community infrastructure demands within the HLTCP. 

• Hurunui District Library 

• Hanmer Springs Medical Centre 

• Hanmer Springs Hall redevelopment 

• Hanmer Springs town centre development 

• Amberley walkway & cycleway network 

All these community infrastructure projects fall under the 

‘Community Services and Facilities’ group of activities. 

211


Need to Undertake the Projects 

The community infrastructure projects identified are essential 

to the ongoing economic, social, cultural and environmental 

wellbeing of the District, especially the Hanmer Springs and 

Amberley Townships. 

In particular, the District Library facilities provide opportunities 

for people and visitors to the District to participate in life 

long learning experiences, and have access to high standards 

of education. The Hanmer Springs projects will enhance 

community facilities, provide access to health care, and result 

in an improved and pleasant environment, which will meet the 

demands of future growth. Extending and improving Amberley’s 

walkway and cycleway network will help create connectivity 

between the existing township and new development areas. 



• A place where traditional rural values and heritage 

make Hurunui unique 


Economic 

Improved community facilities will draw people into the District 

to invest in new business or to participate in the labour force. 

Cultural 

Facilities provide opportunities for participation in educational, 

recreational and cultural activities. 

Social 

Community infrastructure supports a high quality of life for 

residents through participation in activities and access to 

services. 

The built environment is integral to the look, feel and functionality 

of the District. 

Environmental 

Community infrastructure supports the natural environment by 

providing appropriate places to carry out activities. 


Community infrastructure provides benefits for the duration of 

the assets. Given the nature of the assets, the duration is likely 

to be for the next 50 years. 

Impact of the Activities on the Current and Future 


The provision and development of the Community 

infrastructure identified to meet the demands of growth will 

have a considerable impact on the social, economic, cultural and 

environmental wellbeing of the whole community. The proposed 

projects will each provide varying levels of benefit to different 

members of the community. The District Library will provide 

principally District benefits whereas the Hanmer Springs Medical 

Centre, Hanmer Springs Hall redevelopment and Hanmer 

Springs town centre development will provide benefits to those 

owning property in the Hanmer Springs Ward. The expansion of 

Amberley’s walkways and cycleways will principally be of benefit 

to the town’s residents. 

Future population growth, the demographic profile of the 

District and changes in lifestyle will require the Council to 

provide a range of opportunities for individuals and groups to 

participate in at various levels. 

The Council considers that future property owners should 

contribute to the provision of these projects proposed under 

Community Infrastructure as they provide opportunities for 

individual and group wellbeing. 


Loans 

Rates 


Yes 

Yes 

Yes 

For further detail on funding for capital expenditure refer to 

appendix 2. at the rear of this Policy, the Finance and Revenue 

Policy or the Libraries / Local Facilities and Maintenance Activity 

Plans. 

Point at which Contributions are Collected 

Contributions for community infrastructure will be collected 

upon granting a subdivision consent or Building Consent or 

Resource Consent. All new subdivisions will be subject to the 

community infrastructure contributions set out in appendix 2. 

Where allotments already exist but have not been built on the 

contribution will be collected on the granting of the building 

consent or resource consent. 


The Library, medical centre and hall redevelopment benefits 

current and future users equally from access to and opportunities 

provided by these items of community infrastructure. Therefore 

each unit of demand, both existing and future, should contribute 

equally to infrastructure intended to be constructed over the 

period (set at the initial planning period of 10 years from 2004). 

212


The Hanmer Springs town centre development has some 

benefit to existing residents, but is required due to increasing 

infrastructure to cope with the expected growth over the 

planning period. Council has determined that it is fair and 

equitable that development contributions fund those areas 

of development which are necessitated by growth, not driven 

by community desire. Council recognises that renewals or 

upgrades of existing facilities will also benefit new residents, 

but considers that the demand for these are from the existing 

population are therefore should be funded by existing units of 

demand. The target period for collection is set at initial 20 year 

planning period of the project (from 2004). 

Where the extension of Amberley’s existing walkway and 

cycleway network is into new development areas, each new 

unit of demand should contribute to the development of the 

network. Where the proposed infrastructure is an upgrade to 

existing areas it will be met by existing units of demand. The 

target period has been extended from its initial 20 year horizon 

to as a result of the lower level of growth anticipated. 

Residential & Business Activities: 

Each new subdivision lot established will be charged one 

development contribution for each item of community 

infrastructure as identified in the schedule. Additional business 

established on the same lot will be charged a separate 

development contribution. 

Assumptions 

That all people in the District create a demand for Community 

Infrastructure irrespective of the type of lot created. 

That all people in the District have the same opportunity to use 

Community Infrastructure facilities. 

That Community Infrastructure use is related to people not 

type of property. 

That the District will continue to grow as set out in the 

population forecasting contained in this Policy. 


In the event that planned Community Infrastructure upgrades 

are not undertaken within the “maximum period” set out in 

appendix 2, or alternative upgrades are not completed within 

that time-frame, development contributions will be refunded, 




payments. 






Travellers Accommodation Including Hotel/Motel 

Units and Long Term Workers Accommodation 

(Urban Areas) 

For each hotel, motel unit or separate unit of travellers 

or workers accommodation (excluding home stays 

accommodating less than 6 visitors) a payment of 50% of the 

standard community infrastructure development contributions 

identified in the schedule will be applied to each separate unit 

of accommodation let for tariff. For camping grounds, hostels, 


travellers accommodation a contribution shall be determined 

on the basis of payment of 50 % of the standard community 

infrastructure development contribution for each 4 visitors 

the premises/camping ground can accommodate. Any manager’s 

accommodation associated with travellers’ or workers’ 

accommodation shall be charged at the full rate. 

213


Appendix 1. 

Projected Number of New Units 

Development Contribution Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 

Collection Area 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 

Amberley Sewer Area 9 9 9 9 9 9 9 9 9 11 

Amberley Township 7 7 7 7 7 7 7 7 7 8 

Amberley Ward 24 24 24 24 21 21 21 21 21 20 

Amberley Water 9 9 9 9 9 9 9 9 9 11 

Ashley Water 10 10 10 10 10 10 10 10 10 10 

Cheviot Water 2 2 2 2 2 2 2 2 2 2 

Glenmark Ward 4 4 4 4 2 2 2 2 2 2 

Hanmer Springs Sewer Area 9 9 9 9 14 14 14 14 14 9 

Hanmer Springs Township 15 15 15 15 23 23 23 23 23 15 

Hanmer Springs Urban Water 

Area 13 13 13 13 20 20 20 20 20 13 

Hanmer Springs Ward 30 30 30 30 38 38 38 38 38 29 

Hurunui Water 6 6 6 6 3 3 3 3 3 3 

Hurunui District 106 106 106 106 98 98 98 98 98 82 

214


Appendix 2. 

Inflation adjusted Capital Costs and Proporation Realting to Growth for Year 1-3 and 10 of this plan 

Project Funded From Total Capital Cost of 

Project (including nongrowth 

related 

components) in 2013 

dollars 

Est. Proportion of 

Growth attributable to 

Development (net 

result of estimates for 

each capital item in 

Est. Total Units of 

Demand by end of 

target period (to 

spread Development 

Cost if applicable) 

Est. (actual when 

available) Total 

Capital Cost due to 

growth, inflation 

adjusted to 2013 















adjusted to 2022 

Amberley Domain Pavilion Amberley Ward $257,699 Spread based on a 1,912 $40,459 $42,045 $43,444 $57,345 

ratio of new units 

of demand / total 

units of demand 

Amberley Sewer Pipe Upgrades 

Amberley 

$678,000 100% 1,199 $678,000 $704,578 $728,029 $960,978 

Township 

Amberley Sewer Pond Upgrade 

Amberley 

$670,823 80% 1,581 $536,658 $557,696 $576,258 $760,644 

Sewer Area 

Amberley Stormwater 

Amberley 

$488,215 68% 1,107 $332,929 $345,980 $357,496 $471,884 

Township 

Amberley Township Reserves 

Amberley 

$813,000 90% 1,257 $731,700 $760,383 $785,692 $1,037,091 

Township 

Amberley Walking & Cycling Routes Amberley 

$274,000 80% 1,199 $219,200 $227,793 $235,375 $310,688 

Township 

Amberley Ward Reserves Amberley Ward $1,450,000 90% 2,890 $1,305,000 $1,356,157 $1,401,295 $1,849,669 

Amberley Water 

Amberley 

$609,869 63% 1,088 $383,869 $398,917 $412,194 $544,084 

Water 

Ashley Water Ashley Water $4,176,700 87% 2,763 $3,626,700 $3,768,869 $3,894,312 $5,140,381 

Cheviot Water Cheviot Water $493,869 66% 1,174 $327,807 $340,657 $351,995 $464,624 

Connical Hill Reserve Walkway 

Hanmer Springs $100,000 90% 1,822 $90,000 $93,528 $96,641 $127,563 

Development 

Ward 

Hanmer Springs Hall 

Hanmer Springs $507,340 Spread based on a 1,687 $127,201 $132,188 $136,587 $180,291 

Ward 




Hanmer Springs Medical 

Hanmer Springs $798,208 Spread based on a 1,687 $200,128 $207,973 $214,896 $283,656 

Ward 




Hanmer Springs Sewer 


Sewer Area 

$1,141,272 60% 1,593 $681,543 $708,260 $731,833 $965,999 

Hanmer Springs Stormwater 


Township 

$616,423 80% 1,764 $493,138 $512,469 $529,526 $698,960 

Hanmer Springs Town Centre 

Hanmer Springs $2,276,479 60% 2,446 $1,365,887 $1,419,431 $1,466,675 $1,935,969 

Development 

Ward 

Hanmer Springs Domain 

Hanmer Springs $1,000,000 50% 2,277 $500,000 $519,600 $536,895 $708,686 

Ward 

Hanmer Springs Water 

Hanmer Springs $581,849 60% 1,583 $349,109 $362,795 $374,870 $494,818 

Urban Water 

Area 

Hurunui District Library Hurunui District $2,135,217 Spread based on a 6,043 $412,685 $428,863 $443,137 $584,928 




Hurunui Water Hurunui Water $424,861 75% 1,721 $318,646 $331,137 $342,159 $451,640 

Omihi Reserve Glenmark Ward $36,941 100% 458 $36,941 $38,389 $39,667 $52,359 

Queen Mary Development Hurunui District $4,479,382 Spread based on a 




6,993 $1,356,791 $1,409,978 $1,456,908 $1,923,076 

215


Appendix 3. 

Development Contribution Schedule for Years 1-3 and 10 of this plan 

Project Funded From Relevant Subsection of Policy (Category of 

Contribution) 

Point at which Contribution is 

collected (number refers to 

options in NOTES below) 

Start Year for 

Contributions 

Maximum No. of years from 

start year until project is 

undertaken* 

Target period (years from 

start year) over which to 

collect contributions 

Est. Num of New Units to 

Collect From in target 

period based on growth 

model 

New Development 

Contribution (GST 

added) 2012/2013 



added) 2013/2014 



added) 2014/2015 



added) 2021/2022 

Amberley Domain Pavilion Amberley Ward Reserves 1 2004 10 10 300 $150 $160 $170 $220 

Amberley Sewer Pipe Upgrades Amberley Township Network Infrastructure 2 2008 10 76 497 $1,570 $1,630 $1,690 $2,230 

Amberley Sewer Pond Upgrade Amberley Sewer Area Network Infrastructure 2 2004 10 48 482 $1,280 $1,330 $1,370 $1,810 

Amberley Stormwater Amberley Township Network Infrastructure 3 2004 10 66 476 $800 $840 $860 $1,140 

Amberley Township Reserves Amberley Township Reserves 1 2008 25 85 555 $1,520 $1,570 $1,630 $2,150 

Amberley Walking & Cycling Routes Amberley Township Community Infrastructure 4 2008 20 76 497 $500 $520 $530 $700 

Amberley Ward Reserves Amberley Ward Reserves 1 2008 25 63 1,109 $1,350 $1,410 $1,450 $1,920 

Amberley Water Amberley Water Network Infrastructure 2 2004 15 37 390 $1,130 $1,180 $1,210 $1,600 

Ashley Water Ashley Water Network Infrastructure 5 2006 15 27 703 $5,930 $6,170 $6,370 $8,410 

Cheviot Water Cheviot Water Network Infrastructure 5 2006 10 60 157 $2,410 $2,500 $2,590 $3,410 

Connical Hill Reserve Walkway 

Hanmer Springs Ward Reserves 1 2008 10 10 410 $250 $260 $270 $360 

Hanmer Development Springs Hall Hanmer Springs Ward Community Infrastructure 4 2004 10 10 423 $350 $360 $370 $490 

Hanmer Springs Medical Hanmer Springs Ward Community Infrastructure 4 2004 10 10 423 $540 $570 $580 $770 

Hanmer Springs Sewer Hanmer Springs Sewer Area Network Infrastructure 2 2004 10 22 326 $2,410 $2,500 $2,580 $3,410 

Hanmer Springs Stormwater Hanmer Springs Township Network Infrastructure 3 2004 20 26 600 $940 $980 $1,010 $1,340 

Hanmer Springs Town Centre 

Hanmer Springs Ward Community Infrastructure 4 2004 10 35 1,182 $1,330 $1,380 $1,430 $1,880 

Hanmer Development Springs Domain Hanmer Springs Ward Reserves 1 2013 10 20 620 $930 $960 $1,000 $1,310 

Hanmer Springs Water Hanmer Springs Urban Water Area Network Infrastructure 2 2004 10 18 390 $1,030 $1,070 $1,110 $1,460 

Hurunui District Library Hurunui District Community Infrastructure 4 2004 10 10 1,168 $410 $420 $440 $580 

Hurunui Water Hurunui Water Network Infrastructure 5 2006 10 21 105 $3,500 $3,640 $3,760 $4,960 

Omihi Reserve Glenmark Ward Reserves 1 2004 10 11 85 $500 $510 $530 $700 

Queen Mary Development Hurunui District Reserves 1 2004 20 20 2,118 $740 $770 $790 $1,040 

NOTES: Points at which Contributions are payable and maximum contribution for reserves** Totals: 

1. At the time of granting a subdivision consent, or if a separate certificate of title exists against Hanmer Springs Township $8,930 $9,270 $9,580 $12,640 

which no development levy has been paid, at the time of issuing a building consent. Hanmer Springs Ward (excl. Town) $4,550 $4,720 $4,880 $6,430 

2. At time of granting subdivision consent or if no development levy has been paid, Amberley Township $9,450 $9,830 $10,140 $13,390 

at the time of issuing a building consent or resource consent or at time of connection to service. Leithfield Township & Amberley Beach Township $9,860 $10,260 $10,590 $13,980 

3. When subdivision consent is granted and or where subsequently an additional dwelling house or business premise Leithfield Beach Township $3,930 $4,090 $4,220 $5,570 

is promoted on the same lot at the time when either a resource consent or a building consent is granted. Amberley Ward (excl. Townships) $2,650 $2,760 $2,850 $3,760 

4. Upon granting a subdivision consent or Building Consent or Resource Consent. All new subdivisions will be subject to the Glenmark Ward $1,650 $1,700 $1,760 $2,320 

community infrastructure contributions set out in this table. Where allotments already exist but have not been built on Cheviot Ward $3,560 $3,690 $3,820 $5,030 

the contribution will be collected on the granting of the building consent or resource consent. Hurunui Community (/Ward) $4,650 $4,830 $4,990 $6,580 

5. At time of application to the Rural Water Scheme. Amuri Community (/Ward) $1,150 $1,190 $1,230 $1,620 

** In the case of reserves contributions, the contribution payable will be capped at the greater of 7.5% of the value of the additional allotments created * In the case of land taken for reserve purposes, this figure will be negotiated with the land owner at the time the contribution is made. 

by a subdivision or the value equivalent of 20 square metres of land for each additional household unit created by the development. 

216

External Liability Management Policy 

Introduction 

Asset Management Plans 


Council took on external debt for the first time in 2010. It is 

intended that the Council shall have a level of core debt for 

the period outlined in the Long Term Plan. Council’s liabilities 

comprise borrowings and various other liabilities. 

Debt Ratios and Limits 

Debt will be managed within the following macro limits. 

Ratio 

Hurunui 

Net debt as a percentage of equity


Under the Debenture Trust Deed Council’s borrowing is 

secured by a floating charge over all Council rates levied under 

the Rating Act, excluding any rates collected by Council on 

behalf of any other local authority. In such circumstances, the 

security offered by Council ranks ‘Pari Passu’ for all stock issued 

by Council including any security stock issued. 

(e) Secure its borrowing from the LGFA and the performance 

of other obligations to the LGFA or its creditors with a 

charge over the Council’s rates and rates revenue. 

Council offers deemed rates as security for general borrowing 

programs. From time to time, with prior Council and Debenture 

Trustee approval, security may be offered by providing a charge 

over one or more of Councils assets. 

Physical assets will be charged only where: 

• There is a direct relationship between the debt and 

the purchase or construction of the asset, which it 

funds (e.g. an operating lease, or project finance). 

• Council considers a charge over physical assets to be 

appropriate. 

• Any pledging of physical assets must comply with the 

terms and conditions contained within the Debenture 

Deed. 

Debt Repayment 

The funds from all asset sales and operating surpluses will 

be applied to the reduction of debt and/or a reduction in 

borrowing requirements, unless the Council specifically directs 

that the funds will be put to another use. 

New Zealand Local Government Funding Agency Limited 

Investment 

Despite anything earlier in this Liability Management Policy, the 

Council may borrow from the New Zealand Local Government 

Funding Agency Limited (LGFA) and, in connection with that 

borrowing, may enter into the following related transactions to 

the extent it considers necessary or desirable: 

(a) Contribute a portion of its borrowing back to the LGFA 

as an equity contribution to the LGFA, for example 

Borrower Notes; 

(b) Provide guarantees of the indebtedness of other local 

authorities to the LGFA and of the indebtedness of the 

LGFA itself; 

(c) Commit to contributing additional equity (or subordinated 

debt) to the LGFA if required; 

(d) Subscribe for shares and uncalled capital in the LGFA; and 

218

Investment Policy 

General Policy 

Investments are maintained to meet specified business reasons. 

Such reasons can be: 

1. For strategic purposes consistent with Council’s Long 

Term Plan; 

2. To reduce the current ratepayer burden; 

3. The retention of vested land; 

4. Holding short term investments for working capital 

requirements; 

5. Holding investments that are necessary to carry out 

Council operations consistent with Annual Plans. 

Council recognises that as a responsible public authority all 

investments held, should be low risk. Council also recognises 

that low risk investments generally mean lower returns. 

In its financial investment activity, Council’s primary objective when 

investing is the protection of its investment capital and that a prudent 

approach to risk/return is always applied within the confines of this 

policy. Accordingly, only approved credit worthy counterparties are 

acceptable. 

Investment Mix 

Council maintains investments in the following assets from time 

to time: 

• Equity investments, including investments held in CCO/ 

CCTO and other shareholdings. 

• Property investments incorporating land, buildings, a 

portfolio of ground leases and land held for development. 

• Forestry investments 

• Financial investments 

• Loan advances for staff and rural housing purposes 

• Other. 

Equity Investments 

Council maintains equity investments and other minor 

shareholdings. 


Council’s equity investments fulfill various strategic, economic 

development and financial objectives as outlined in the LTP. 

Council seeks to achieve an acceptable rate of return on all its 

equity investments consistent with the nature of the investment 

and their stated philosophy on investments. 

Dividends received from CCO’s and unlisted companies not 

controlled by Council are recognised when they are received 

in the consolidated revenue account. 

Any purchase or disposition of equity investments requires 

Council approval and any profit or loss arising from the 

sale of these investments is to be recognised in the Statement 

of Comprehensive Income. 

Any purchase or disposition of equity investments will be 

reported to the next meeting of Council. 

Unless otherwise directed by Council, the proceeds from the 

disposition of equity investments will be used firstly to repay 

any debt relating to the investment and then included in the 

relevant consolidated capital account. 

Council recognises that there are risks associated with holding 

equity investments and to minimise these risks Council, through 

the relevant sub-committee, monitors the performance of its 

equity investments on a twice yearly basis to ensure that the 

stated objectives are being achieved. Council seeks professional 

advice regarding its equity investments when it considers this 

appropriate. 

Property Investments 

Council’s overall objective is to only own property that is 

necessary to achieve its strategic objectives. As a general rule, 

Council will not maintain a property investment where it is 

not essential to the delivery of relevant services, and 

property is only retained where it relates to a primary output 

of Council. Council reviews property ownership through 

assessing the benefits of continued ownership in comparison 

to other arrangements which could deliver the same results. 

This assessment is based on the most financially viable method 

of achieving the delivery of Council services. Council generally 

follows similar assessment criteria in relation to new property 

investments. 

Council reviews the performance of its property investments 

on a regular basis. 

All income, including rentals and ground rent from property 

investments is included in the Statement of Comprehensive 

Income. 

219


Forestry Investments 

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. 

Any disposition of these investments requires Council approval. 

The proceeds from forestry disposition are used firstly to 

repay related borrowings and then included in the relevant 

consolidated capital account. 

Financial Investments 

Liquid investment funds will be prudently invested as follows: 

• Any liquid investments must be restricted to a term 

that meets future cash flow and capital expenditure 

projections. 

• Interest income from financial investments is credited 

to general funds, except for income from investments 

for special funds, reserve funds and other funds where 

interest may be credited to the particular fund. 

• Internal borrowing will be used wherever possible to 

avoid external borrowing 

Financial Investment Objectives 

Trust Funds 

Where Council hold funds as a trustee, or manages funds for a 

Trust then such funds must be invested on the terms provided 

within the trust. If the Trusts investment policy is not specified 

then this policy should apply. 

New Zealand Local Government 

Funding Agency Limited Investment 

Despite anything earlier in this Investment Policy, the Council 

may invest in shares and other financial instruments of the New 

Zealand Local Government Funding Agency Limited (LGFA), and 

may borrow to fund that investment. The Council’s objective in 

making any such investment will be to: 

(a) Obtain a return on the investment; and 

(b) Ensure that the LGFA has sufficient capital to become 

and remain viable, meaning that it continues as a source 

of debt funding for the Council. 

Because of these dual objectives, the Council may invest in 

LGFA shares in circumstances in which the return on that 

investment is potentially lower than the return it could achieve 

with alternative investments. 

If required in connection with the investment, the Council may 

also subscribe for uncalled capital in the LGFA. 

• Council’s primary objectives when investing is the 

protection of its investment capital. Accordingly, 

Council may only invest in approved creditworthy 

counterparties. Creditworthy counterparties and 

investment restrictions are covered in the Treasury Risk 

Management Policy. Credit ratings are monitored and 

reported quarterly to Council. 

• Council may invest in approved financial instruments 

as set out in the Treasury Risk Management Policy These 

investments are aligned with Council’s objective 

Special Funds and Reserve Funds 

Liquid assets are not required to be held against special funds 

and reserve funds. Instead Council will internally borrow or 

utilise these funds wherever possible. 

Unless otherwise directed by Council, internal borrowing to/ 

(from) reserves will be undertaken at the external cost of 

borrowing. 

220

Rates Remission for Biodiversity Policy 

Introduction 


The purpose of this rates remission policy is to recognise 

voluntary protection of the District’s indigenous flora and fauna 

via conservation covenants and to promote and encourage 

more land owners to participate in this process. This policy 

also acknowledges the wider community benefit of protecting 

Significant Natural Areas (SNAs), which are on privately 

owned land, by sharing the cost by way of a rates remission 

commensurate with the level of protection offered. 

Conservation Covenants 

Council will grant 100% rates remission to those rating units or 

portions of rating units, which are protected by a conservation 

covenant that is registered on the Certificate of Title in perpetuity. 

This includes protection afforded by conservation covenants 

established under the Queen Elizabeth the Second Trust Act, 

Reserves Act, Conservation Act, Resource Management Act 

1991 (as a condition of resource consent), and the Wildlife Act. 

Rates remission will be granted on receipt of a Certificate of 

Title registering the protective covenant and a deposited plan 

that shows the affected land area. 

Significant Natural Areas 

Council will grant up to 90% rates remission to those rating 

units or portions of rating units, which are scheduled as a 

Significant Natural Area in the District Plan. The percentage 

remission granted will depend on the extent to which the area 

is actively managed to protect and enhance biodiversity values. 

221


Rates Remissions on Land Affected by Natural Calamity Policy 

Introduction 

The purpose of the policy is to give the Council discretion to 

remit rates where a rating unit has been detrimentally affected 

by a natural calamity. 

Policy 

The Council may remit rates either wholly or in part where 

land has been detrimentally affected by erosion, subsidence, 

submersion or other natural calamity to an extent the Council 

considers that it would be unfair or unreasonable to require 

that the rates be paid as assessed. 

Applications must be made in writing and signed by the owner(s) 

of the rating unit. 

Full details must be provided of the nature of the event that 

caused the damage and the degree of damage to the land. If the 

damage is temporary and the land is expected to return to its 

former use in the future, an estimate of the time it will take the 

land to recover to a useable state and the steps that the owner 

will take to achieve this should be provided. The Council may 

ask for a report from a Registered Engineer or other similarly 

qualified expert. 

The amount of remission given in any case will be set by the 

Council having regard to the severity of the event, the degree 

of damage to the subject land and other land in the district and 

other financial assistance available. Consideration will also be 

given to the effect of remissions on the remaining rating base. 

222

Reserves Funding Policy 

Introduction 

All reserves in the District will be divided into two categories 

for funding purposes, which are identified by area of benefit 

rather than by the legal classification of reserve. This policy will 

provide a foundation for the creation of a prioritised long-term 

development programme for reserves and how they are funded. 

In determining the category status and the extent of benefit of 

any reserve, the Council will have regard to the degree to which 

one or more of the factors apply to a particular reserve: 

• Heritage value 

• Visitor numbers 

• Local use 

• Local amenity value 

• Social / Economic value 

• Location to visitor attractions 

• Location to State Highways 

• Location to tourist routes 

• Ecological value 

For example, the higher the degree of local use or contribution 

towards local amenity, the greater the weighting towards 

classification as an “Amenity Reserve”. The more visitor-oriented 

or the greater the heritage or ecological value, the greater the 

weighting towards classification as a “District Reserve”. 

Should these factors change over time, Council may review the 

funding category of any reserve if circumstances warrant this. 

District Reserves 

Funding: Capital expenditure and maintenance is funded 100% 

by the general rate or the Hanmer Springs Thermal Pools and 

Spa Reserve surpluses if available. 

Defined as: A reserve that serves and provides benefits 

principally to the district and wider community as a w h o l e 

rather than the local community. District Reserves are utilised 

by a wide range of user groups and visitors may travel some 

distance to access the reserve. District Reserves may also have 

distinctive features which make them unique, such as geothermal 

activity, or uncommon landforms and vegetation. They may 

also be valuable in terms of their historic buildings, proximity 

to watercourses and their amenity value. The accessibility to 

and public use of District Reserves will generally tend to be 

high, (with the exception of undeveloped esplanade reserves, 

ecological reserves, gravel pits and some historical reserves). All 

gravel, forestry, cemetery and esplanade reserves will be funded 

as “District Reserves”. 

Amenity Reserves 


Funding: Capital expenditure and maintenance are funded 100% 

by the local amenity rate or, at the discretion of the Council, 

fully or partially funded by Hanmer Springs Thermal Pools and 

Spa Reserve surpluses. 

Defined as: A reserve that provides benefits principally to the 

local community in which it is situated. 

Limitations 

In setting out the above formulas it is recognised that funding 

of reserve projects will still be subject to the normal budgeting 

processes. Individual wards/rating areas may utilise funds which 

are derived from the Hanmer Springs Thermal Pools and Spa 

Reserve surpluses and allocated to it by Council on an annual 

basis . There is also a need to ensure local support exists for 

meeting the costs of maintenance where these fall locally. The 

following limitations also apply: 

• In the case of all capital works, the first call for project 

funding on a District Reserve Amenity Reserve shall 

be against unallocated funding from a ward’s land 

subdivision account or unallocated surpluses held 

within all accounts of the reserve’s administering body. 

An exception to this applies in the case of the Cheviot 

Reserves Committee’s Joint Venture forestry surpluses, 

the interest from which it requires to fund the ongoing 

maintenance of the reserves under its control. 

• Prior to any capital expenditure being promoted on 

an Amenity Reserve, the ward committee or group 

managing the reserve on the Council’s behalf agree to 

the project, acknowledging that future maintenance 

costs will fall on the amenity account. 

The administering group of any category of reserve can 

promote projects and fund them locally outside the funding 

regime described above in the event that Council decides not 

to fund a particular project. 

Funding for reserve development may also be obtained from 

development contributions levied under the Local Government 

Act (2002) via the Hurunui Community Long Term Plan or 

financial contributions levied under the Resource Management 

Act (1991) via the District Plan. 

223


Revenue and Financing Policy 

Introduction 

This policy is about Council services and who pays for them, and 

is required under Section 102 (4) of the Local Government Act 

2002. Sections 103 and 101(3) of this act require the Council to 

identify for each Council service: 

Drainage Rate: 

Targeted Rate on a defined area benefiting from a classified 

drainage scheme. 

Lot: 

(i) 

(ii) 

(iii) 

(iv) 

the community outcomes to which the service 

primarily contributes; 

the distribution of benefits between the District 

as a whole, any identifiable part of the District, 

and individuals; 

the period in or over which those benefits are 

expected to occur; 

the extent to which the actions or inaction of 

particular individuals or a group contribute to 

the need to undertake the service; and 

A rateable property (lots can be combined). A lot is a legal entity. 

Targeted Rate: 

Is a rate within a ward or other defined area and may be based 

on cents per dollar of capital value of every property or a fixed 

amount per rating unit (known for the purposes of this policy 

as a “Uniform Annual Charge”, UAC). Money is spent in that 

area only. 

UAC: 

(v) 

the costs and benefits, including consequences 

for transparency and accountability, of funding 

the service distinctly from other services. 

There is also a requirement to consider the overall impact of 

any allocation for revenue needs on the current and future 

social, economic, environmental, and cultural wellbeing of the 

community. 

Costs for each service are collected unless the Council believes 

that to do so would not be fair or not be in the interest of 

residents and ratepayers or is in conflict with Council policy. As 

an elected representative body, the Council has the responsibility 

to make the final decision. 

The following section of this policy is an explanation of the 

policy and terms used. 

Capital Value: 

The value expected to be realised at the time of valuation if 

offered for sale on such reasonable terms and conditions as a 

bona fide seller might be expected to require. 

Development Contributions: 

Charges on future lots or units of demand to fund the growth 

portion of capital expenditure. 

District Rate: 

Uniform Annual Charge. Within the context of this policy, 

this is a Targeted Rate for a set dollar amount collected for 

each rateable property (or each separately used or inhabited 

part of a property) in the District as a whole or within part 

of the District for a specific Council service (e.g. water supply, 

sewerage, reserves). 

UAGC: 

Uniform Annual General Charge. This is a set dollar amount 

which is collected for each rateable property or each separately 

used or inhabited part of a property in the District, irrespective 

of the value of the property, to cover the combined costs of 

various Council services. 

User Charges: 

Charges collected from individuals at the time service is used. 

Utilities: 

Combination of water, wastewater and refuse services. 

Service by Service Review 

The service by service reviews are detailed on the following 

pages. 

District wide collection of revenue based on a set number of 

cents per dollar of the Capital Value of every property, or a 

uniform annual general charge (UAGC). 

224


Service 

Relevant Community 

Outcomes 

Relevant Issues & 

Constraints 

Who benefits, 

and over what 

period 

Future Funding & Sustainability 

Water Supply 

Treatment and 

Reticulation of Water 

to the following 

Water Supply areas: 

• Amberley 

• Leithfield Beach 

• Ashley Rural 

• Culverden 

• Waiau Town 

• Amuri Plains 

• Balmoral 

• Waiau Rural 

• Cheviot 

• Waipara 


• Hawarden-Waikari 

• Hurunui Rural 

The Council’s funding of 

Water Supply services 

contributes to the 

Hurunui district being: 

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 


A place with essential 

infrastructure: 

• We have a strong 

emphasis on service 

delivery across 

all infrastructure 

including roading, 

water (for drinking and 

development), waste 

water, stormwater and 

solid waste 

Restricted supply 

schemes are based on 

unmetered, restricted 

supply with a maximum 

supply per day 

irrespective of usage. 

Unrestricted schemes 

face a number of issues. 

There is a need to curb 

excess water use. In 

addition, bach owners 

who use their beaches 

infrequently, object to 

paying fees for a system 

that they say they 

hardly use. However, 

the system was built to 

handle the needs of all 

the residents and if they 

sold to a permanent 

resident that person 

would want a system 

that could meet their 

needs. The existence 

of water supply to a 

property is reflected 

in the value of that 

property. 

Accordingly, as all 

ratepayers own an 

equal share in the water 

supply system, all users 

should meet an equal 

component of the fixed 

costs of the water 

supply that was built to 

meet their needs. They 

should then pay the 

economic marginal cost 

of any additional usage. 

Costs will be reallocated 

across users 

and significant change is 

expected. 

100% private 

benefit to users. 


• 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. 


• Significant Council capital expenditure should be 

funded by loan for the life of the investment; if loans 

are not raised then it will be treated as a fixed cost 

and funded from annual rates. 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. 



putting in the sub-main and any levies as specified in 

the Development Contributions policy. 


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. 

Sustainability: 

• The ongoing negative effects on the economic 

wellbeing of those who pay for water supply services 

will be offset by future gains in social, economic and 

environmental wellbeing. 

Increased Drinking Water Standards: 

• The increased requirements to meet desired 

standards for drinking water place an exceptional (if 

not unaffordable) burden on small water schemes. 

To fund the increased costs associated with meeting 

standards and to avoid the exorbitant fines that will be 

imposed on small local authorities who cannot meet 

these requirements, the Council is considering funding 

all drinking water requirements form a General Rate, 

rather than placing that burden on a limited number 

of ratepayers. 

225


Service 


Outcomes 


Constraints 

Who benefits, and over 

what period 


Sewerage 

Provision of 

reticulation and 

treatment of 

sewage for the 

following Sewerage 

Areas: 

• Amberley 

• Cheviot 

• Greta Valley 

• Motunau Beach 


• Hawarden 

• Waikari 

The Council’s funding 

of Sewerage services 

contributes to the Hurunui 

district being: 


to live: 







resources are available 

to meet civil defence 

emergencies 




A place that demonstrates 

e n v i r o n m e n t a l 

responsibility: 

• We protect our 

environment while 

preserving people’s 


• We minimise solid waste 

to the fullest extent, and 

manage the rest in a 

sustainable way 



• We have a strong 





water (for drinking and 

development), waste 

water, stormwater and 

solid waste 

This is a significant service 

in terms of expenditure, 

so there are benefits 

for accountability and 

transparency from funding 

it separately from other 

services. Funding this 

service separately adds no 

significant extra cost. 

The various resource 

consents the Council 

holds under the Resource 

Management Act 1991 

govern the way in which the 

Council manages disposal 

whether it is the Council’s 

own or ratepayer’s disposal. 

Significant capital 

investments made by the 

existing ratepayers can be 

used by new connections, 

which may be considered 

unfair. 

100% benefit to users of the 

system. 

Benefits from capital 

expenditure accrue over the 

life of the investment and 

benefits from operational 

expenditure accrue at the time 

of the expenditure. Capital 

Expenditure should be funded 

by a loan, pursuant to the 

Council’s Internal Financing 

Policy. New connections will 

pay all costs of connecting to 

nearest sewer main. If any of 

the capital expenditure caters 

for future growth, then that 

portion of the expenditure 

that relates to growth may 

be funded from future lots 

or units of demand within 

the ward or community 

rating area via development 


Operations & Loan Repayments: 

• Operation and loan repayments should be 

funded by way of a wastewater Uniform 

Annual Charge on each connection and for 

connected commercial properties a charge 

of 1 for the first pan, ½ charges on the 

second pan and 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 

should be funded by loan pursuant to the 

Council’s Internal Financing Policy, if loans 

are not raised then it will be from targeted 

rates. 

• The 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, as detailed in the 

Development Contributions Policy and the 

District Plan. 

• Landowners with new connections will pay 

the cost of connecting to the nearest main 

plus, if a new subdivide, putting in the submain. 

• Property owners wanting new connections 

will pay those costs necessary for the 

connection and any levies as specified in 

the Development Contributions policy. The 

Council should pay any costs of scheme 

requirements that are over and above 

those necessary for the connection and the 

direct costs 


• The ongoing negative effects on the 

economic wellbeing of those who pay for 

sewerage services will be offset by future 

gains in social and environmental wellbeing. 

226


Service 

Relevant 


Outcomes 


Constraints 

Who benefits, and 

over what period 


Stormwater & 

Drainage 

Costs relating to 

construction and 

maintenance of 

stormwater and 

drainage systems 

in the following 

area: 

• Amberley 

Ward 

• Jed River, 

Cheviot 

• Hanmer 

Springs 

Township 


of Stormwater and 

Drainage services 



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 



- We have a strong 





water (for drinking 

and development), 

waste water, 

stormwater and 

solid waste 

Those who use the 

service benefit more 

than those who do 

not, hence, for reasons 

of transparency and 

accountability, there 

is justification for 

funding it distinctly 

from other services. 

There are no significant 

costs involved in this 

distinction. 

100% benefit to the 

properties, and this based 

on the area drained. 


expenditure accrue over 

the life of the investment. 

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. Benefits 

from operational 

expenditure accrue at the 

time of the expenditure; 

benefits are proportional 

to the area drained. 


- 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. 

- If any of the Capital Expenditure caters for future 



from future users via Development Contributions 

and Financial Contributions. 


- The ongoing negative effects on the economic 

wellbeing of those who pay for stormwater 

services will be offset by future gains in economic 

and environmental wellbeing. 

227


Service 

Relevant 


Outcomes 


Constraints 


what period 


Roads and 

Footpaths 


of Roading services 





- We have a strong 





water (for drinking 

and development), 

waste water, 

stormwater and solid 

waste 

This is a significant service in 

terms of expenditure, so there 

are benefits for accountability 

and transparency from funding it 

separately from other services. 

Funding this service separately 

adds no significant extra cost. 

We have an issue relating to 

maintaining our roading network 

at the levels of service shown 

through our Asset Management 

Plans due to NZTA reducing 

funding. Whereas we expect to 

manage for the next three years, 

the problem will start to appear 

from 2015 when our income 

will not match our maintenance 

programme. We have built 

inflation into the NZTA subsidy 

but unsure at this stage whether 

that will actually be the case. 

Is it fair that ratepayers on state 

highways should pay for local 

roads? 

Yes, because they have access 

and the option of using all 

the roads in the district and 

throughout NZ. 

Is it fair that one ratepayer on 

a road should have their road 

(which is essentially a drive) 

maintained? 

Yes, because it is a network 

and we all get the potential 

to use any part of the roading 

network. A road may well lead 

to a recreational resource. Such 

roads provide public access as 

well providing benefit to trades 

people requiring access to farms 

for their business. 

100% benefit to road users, 

but all people in the District 

will use the roads at some 

stage, and it is generally not 

practical to distinguish between 

different levels of use. Optional 

enhancements to road surfaces 

will require contributions from 

affected property owners 

(see the Road Seal Extensions 

Policy), with the balance being 

met by the Council. There will 

be some component of benefit 

to visitors to the District, and 

in recognition of this, subsidies 

from the New Zealand Land 

Transport Agency will be 

employed where possible. 

Benefits from roading may 

generally be tagged to the area 

of property owned, and hence 

to Capital Value. 


expenditure occur for the 

lifetime of the road (15 to 30 

years). However the roads are 

maintained in perpetuity so 

the roading should be funded 

by loan for its life without 

maintenance. Benefits from 

operational expenditure accrue 

at the time the expenditure was 

made. 


• For the Council contribution, 100% 

District Rate for operations, roads 

and bridges to be known as the 

Roading Rate. 

Caital Costs: 

• Capital improvements above 

$100,000 may be funded by reserves 

or loans pursuant to the Council’s 

Internal Financing Policy. Other 

Capital Expenditure to be funded as 

operational. 

• If a community wishes the Council 

to carry out resealing work that 

does not qualify for a NZTA Subsidy, 

then there is a mechanism through 

the Road Seal Extension policy 

which allows for the ratepayers 

to meet 50% of the costs and the 

Council contributing the remaining 

50% from the General rate. 

• If any of the Capital Expenditure 

caters for future growth, then that 

portion of the expenditure that 

relates to growth may be funded 

from future users via Financial 

Contributions. 

Footpaths 

• Operational and Capital Costs: 

• Township maintenance100% local 

amenity rate on ward or community 

rating area. 


• The ongoing maintenance and 

building of new roads will continue 

to be demanding financially, 

to individual ratepayers and 

government subsidies. However, the 

negative effects on the economic 

wellbeing of those who pay for 

roads will be offset by future gains in 

social and economic wellbeing. 

228


Service 


Outcomes 


Constraints 


what period 



Services and 

Facilities - Local 

Halls 


Local Halls contributes to 

the Hurunui district being: 


to live: 



• Communities have access 

to adequate health and 

emergency services and 

systems and resources 

are available to meet civil 






traditional rural values and 

heritage make Hurunui 

unique: 

• People have a range 

of opportunities to 

participate in leisure and 

culture activities 


heritage is protected for 


Those living closest to a 

facility benefit more than 

those living further away, 

hence there is a need to 

fund this service distinctly 


There are no significant 

costs associated with this 

distinction, and there are 

benefits for transparency 

and accountability, as the 

Council’s revenue from and 

expenditure on halls can 

more easily be related to 

the state of the District’s 

halls. 

The predominant benefit is to 

users of the hall, but there are 

indirect benefits to the local 

community in which the hall 

is situated, as the hall may 

attract visitors and events to 

the area. 


• A rental charge the local market will stand, 

with any shortfall met from a local amenity 

rate on the local ward or community rating 

area. ta 


• If any of the capital expenditure caters for 

future growth, then that portion of the 

expenditure that relates to growth may be 

funded from future lots or units of demand 

within the ward or community rating area 

via development contributions. If long term 

funding is required, it can be catered for 

under the Council’s Internal Financing Policy. 

The monies needed to meet the loan costs 

under the Internal Financing Policy should be 

treated as operational expenditureinabili 


• Local facilities such as halls in small 

communities are viewed as important to the 

social wellbeing of those communities and 

people are generally content to pay. These 

are very much local assets and decisions 

about future funding are guided by those who 

are prepared to pay (or not pay). 

229


Service 


Outcomes 


Constraints 


what period 



Services and 

Facilities - Reserves 


Services and Facilities - 

Reserves contributes to the 



to live: 













traditional rural values 

and heritage make 

Hurunui unique: 

- People have a range 




- Our historic and cultural 



Council reserves are funded 

differently depending upon 

whether they are classified as 

District or Amenity (i.e. local) 

reserves. Council policy is 

that camping grounds should 

pay their own way. There 

are small administrative 

costs associated with the 

separate funding of reserves 

(e.g. costs for running 

Reserves Committees in 

each area), but these are 

outweighed by the benefits 

in increased transparency 

and accountability in regard 

to the allocation of funds for 

reserves and the statutory 

requirement that any revenue 

from reserves be spent only 

on reserves. 

District Reserves - 100% 

benefit to the District in 

that people from all over the 

District use the reserve, and 

the reserve attracts visitors 

to the District. 

Amenity Reserves - 100% 

benefit to residents in the 

local rating area. 

Hanmer Springs Thermal 

Pools & Spa - 100% benefit 

to users. 

Camping Grounds - 100% 

benefit to users. 

The benefits from capital 


life of the investment and the 



time of expenditure. 

Operational; Costs: 

• Amenity Reserves - 100% local amenity 

rates on the ward or community rating 

area in which the reserve is located. 

• District Reserves - 100% District Rate. 

• Hanmer Springs Thermal Pools - 100% user 

charge. 

• Camping Grounds - 100% user charge 

with any shortfall met by a local amenity 

rate in the ward or community rating 

area.ita 


• District Reserves - Capital expenditure for 

District Reserves is funded 100% by the 

District Rate and/or the Hanmer Springs 

Thermal Reserve surpluses. 

• Amenity Reserves - Capital expenditure 

for Amenity Reserves is funded 100% by 

the local amenity rate on the ward or 

community rating area within which the 

reserve in question is located. 

• If any of the capital expenditure caters for 

future growth, then that portion of the 

expenditure that relates to growth may 

be funded from future lots or units of 

demand via development contributions. 

If long term funding is required, it can be 

catered for under the Council’s Internal 

Financing Policy. The monies needed to 

meet the loan costs under the Internal 

Financing Policy should be treated as 

operational expenditure. 

• Contestable Funding - Council may also 

provide an amount of funds from the 

surpluses from the Hanmer Springs 

Thermal Reserve to each Ward or 

Rating area that may be used for meeting 

development costs on amenity reserves. 


• There are slight negative effects on the 

current and future economic wellbeing 

of the communities affected, but this 

will be offset by proportional gains in 

current and future social, environmental 

and cultural wellbeing. There will also be 

some gain in economic wellbeing, to the 

extent that tourists are attracted to the 

District’s reserves. 

230


Service 


Outcomes 


Constraints 


what period 



Services and 

Facilities – 

Township 

Maintenance 

The Council’s funding of Township 

Maintenance contributes to the 


A desirable and safe place to live: 






systems and resources are 

available to meet civil defence 

emergencies 

• Risks to public health are 

identified and appropriately 

managed 

A place where our traditional 

rural values and heritage make 


- People have a range of 

opportunities to participate in 


- Our historic and cultural 

heritage is protected for future 

generations 

Those living closest to a facility 

benefit more than those living 

further away, hence there is a 

benefit in terms of transparency 

and accountability from funding 

this service distinctly from other 

activities, and however, it is not 

practical in cost-benefit terms to 

implement a differential rating 

scheme for this service within 

each ward or community rating 

area. There is no significant 

cost associated with funding this 

service separately. 

There is an element of benefit 

to the wider District (e.g. 

street refuse bins improve the 

cleanliness and image of the 

District by minimizing littering), 

but the predominant benefit is 

to property owners in the ward 

or community rating area in 

question. 



life of the investment and the 


expenditure accrue at the time of 

expenditure. 


• Township maintaneance100% 

local amenity rate on ward or 

community rating area. 


• Local communities are very 

involved in the decision 

making around what township 

maintenance is done and 

to what standard and are 

prepared to pay the cost. This 

is viewed as vital to the four 

wellbeings (social, economic, 

cultural and environmental) of 

our communities. 

231


Service 


Outcomes 


Constraints 





and Facilities - Hurunui 

Youth and Community 

Development 

Programmes 


of community service 

programmes contributes to 



to live: 















unique: 








The programmes delivered 

by council are often 

dependent on external 

funding. If funded via Council 

rates, their continuation 

is very dependent on 

the community actively 

supporting the programmes. 

Long term continuation can 

not be guaranteed. 

100% benefit to the 

people in the district 

through strengthening 

communities ability to 

find local solutions and 

strengthening the skills 

and development of youth. 

There are no capital 

costs, and benefits from 

operational costs accrue 

at the time of expenditure. 

Operating Costs: 

• Youth is funded via District rate or thermal 

reserve surplus. 

• Community development programme is 

100% funded via government grant. 


• Both programmes are not likely to be 

sustainable into the future as they are 

dependent on external funding which 

has finite dates, or funding via rates. The 

programmes are designed to suit today’s 

issues and not necessarily the right fit in 

future years. They are very dependent on 

public support and results being produced. 

232


Service 


Outcomes 


Constraints 

Who benefits, and over what 

period 



Services and 


Medical Centres 


of Medical Centres 




to live: 
















unique: 








In remote rural locations, 

property developers / 

property owners do not 

wish to take the commercial 

risk to develop and lease 

out specialised medical 

facilities. Without these 

facilities, local residents 

and visitors would be some 

distance away from primary 

medical care. Users 

closest to a facility have 

the potential to benefit 

most from it, hence there 

are benefits in terms of 

increased transparency and 

accountability from funding 

these facilities separately 

from other Council 

services, and however it is 

not practical to implement 

a differential rate within 

each ward or community 

rating area. Funding this 


extra cost. 

The predominant benefit is to users 

of the facilities, but there will also be 

a benefit to each local community in 

which facilities are situated, in that 

the general health of the community 

is likely to be improved and in that 

there will be less need to transport 

those who are in need of treatment 

to other areas of the District. In this 

sense there may also be some benefit 

to the District as a whole. 

The benefits from Capital Expenditure 

accrue over the life of the investment 

and so capital expenditure should be 

funded by a loan or from reserves. The 

benefits from operational expenditure 

accrue at the time of expenditure. 


• 100% User charges with any shortfall 

funded by a medical centre rate within 

the relevant ward or community 

rating area. 


• Any capital requirements will be 

catered for by loan funding pursuant 

to the Council’s Internal Financing 

Policy to be funded by a medical 

centre rate within the relevant ward 

or community rating area. If Council 

decides that 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. 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 

units of demand via Development 

Contributions and loans. 


• There are slight negative effects on 

the current and future economic 

wellbeing of the communities 

affected, but this will be offset by gains 

in current and future social wellbeing. 

There will also be some gain in 

economic wellbeing, to the extent 

that the need for out-of-district travel 

is lessened. 

233


Service 


Outcomes 

Relevant Issues & Constraints 





and Facilities – 

Pensioner Housing 


Pensioner Housing contributes 

to the Hurunui 



to live: 
















unique: 



participate in leisure 

and culture activities 

• Our historic and 

cultural heritage is 

protected for future 

generations 

Those living in an area with 

housing benefit more than 

those living outside of such 

an area, and those who qualify 

for housing benefit much 

more than those who do not, 

hence there is a benefit in 

terms of increased transparency 

and accountability from 

funding this service distinctly 

from other activities. There 

are no significant costs associated 

with this distinction. 

The predominant benefit 

is to those provided with 

housing, however the 

District as a whole also 

benefits from the knowledge 

that pensioners on low 

incomes are housed in 

reasonable accommodation 

and are housed locally - 

the need to travel out of 

the District to visit elderly 

friends and relations will be 

lessened. 

There are capital costs 

associated with the 

construction of the housing. 

The benefits accrue over 

the life of the buildings. This 

implies that the structures 

should be funded by way 

of a loan pursuant to the 

Council’s Internal Financing 

Policy. Operational costs 

are maintenance and 

benefits accrue at the time 

the expenditure takes place. 


• Rents a r e set at an affordable level, ideally 

so as to recover 100% o f costs, with any 

shortfall to be made up from the District 

Rate on Capital Value. 


• There will be a positive effect on the current 

and future economic wellbeing of the 

persons housed. Any slight negative effect on 

the current and future economic wellbeing of 

ratepayers in general will be offset by gains in 

social wellbeing. 

234


Service 

Relevant 


Outcomes 


Constraints 


what period 



Services and 


Residential Housing 


of Residential Housing 




to live: 
























generations 

Those living in areas with 

housing and/or who qualify for 

housing benefit most from 

it; hence there is justification 

in terms of transparency and 

accountability for funding 

this service distinctly from 

other activities. There are no 

significant costs associated with 

this distinction. 


those provided with housing, 

but there is a component 

of benefit to the District 

as a whole, as medical 

practitioners and Council 

staff who might otherwise 

not live in the District are 

provided with housing. 

There are capital costs 

associated with the 

construction of the housing. 

The benefits accrue for the 

life of the buildings. This 

implies that the structures 

should be funded by way of a 

loan pursuant to the Council’s 


Operational costs are 

maintenance and benefits 

accrue at the time the 

expenditure takes place. 


• Market rents for Council staff with any 

shortfall to be made up from the District 

Rate on Capital Value. 


• There will be a positive effect on the 

current and future economic wellbeing of 

the persons housed. Any slight negative 

effect on the current and future economic 

wellbeing of ratepayers in general will be 

offset by gains in social wellbeing. 

235


Service 


Outcomes 


Constraints 


what period 



Services and 


Cemeteries 


Cemeteries contributes to 



to live: 















unique: 








The Burial and Cremation Act 

1964 requires Territorial Local 

Authorities to provide and 

maintain cemeteries and set 

and charge fees for the use of 

cemeteries. Residents, and their 

families, who opt for cremation 

should not have to pay all the 

Cemetery related general 

costs as their benefit is much 

less. Non-residents can also 

use the cemeteries but make 

no contribution to the general 

costs. 

There is currently no time limit 

on the use made of a burial plot. 

The fees charged cover the cost 

of maintenance for 60 years after 

that the plot becomes a charge 

on the Council. The Council also 

has to carry the areas that have 

been set aside for graves but 

have yet to be used. 

Because of the infinite life of a 

cemetery it is not possible to 

recoup the capital costs over 

its life. Accordingly, the capital 

cost of the plot should be the 

economic marginal cost of the 

plot that can be estimated by the 

current capital valuation from 

the Council’s Valuation Service 

Providers. 


the those who will be buried 

(knowing that their wishes 

will be carried out), and their 

family and friends, but there is 

a benefit to the heritage and 

general atmosphere of District 

as a whole through the provision 

of peaceful, tranquil and 

aesthetically pleasing cemeteries. 

Benefits from capital expenditure 

accrue when burial takes place 

and continue for the life of 

the cemetery. Benefits from 

operational expenditure accrue 

when the costs are incurred. 


• Interment costs and purchase of 

plots are charged as user charges. Any 

shortfall in operational costs will be 

charged as a District Rate. 

• 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 


• There will be a slight negative effect 

on the current economic wellbeing 

of those from whom user charges are 

educated, and a slight ongoing negative 

effect on the economic wellbeing of 

ratepayers in general, but this will be 

offset by gains in social and cultural 

wellbeing. 

236


Service 


Outcomes 


Constraints 


what period 



Services and 

Facilities – Public 

Toilets 


Public Toilets contributes 

to the Hurunui district 

being: 


to live: 
















unique: 








generations 

Those who use the public 

toilets benefit more than 

those who do not, so 

there is justification in 

terms of accountability 

and transparency for 

funding these separately 

from other facilities and 

services. Funding this 


extra cost. 

Council policy is that there 

should be at least one 

public toilet in each town 

on tourist routes (more 

toilets if the extent of the 

usage by visitors demands 

this). It is impractical to 

charge individual users. 

Toilets on tourist routes 

- visitors and locals 

benefit from being able 

to use the toilets, but 

the predominant benefit 

is to the District as a 

whole, as the provision 

of good quality and well 

maintained toilets for 

visitors should improve 

their experience of 

the District and thus 

encourage them to visit 

again or to tell others 

to do so, leading to 

economic benefits for the 

District. 

Other toilets - The 

predominant benefit is 

to residents of the local 

community in which the 

toilets are situated. 


expenditure are received 

over the life of the 

facility and benefits from 

operational expenditure 

are accrued at the time 

the expenditure is made. 


• 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 – 100% local amenity rate on 

the local ward or community rating area. 


from the Hanmer Springs Thermal Reserve, the 

amount of the contribution is subtracted from the 

District Rate. 



relates to growth may be funded from future lots via 

Development Contributions and loans. 


• There will be a slight negative effect on the current 

and future economic wellbeing of those who pay for 

this service, but this will be offset by gains in social 

and/or economic wellbeing. 

237


Service 


Outcomes 

Relevant Issues & Constraints 





Services and 


Libraries 


Cemeteries contributes to 



to live: 









emergencies 







unique: 








Libraries receive a significant 

amount of funding; hence there is 

justification in terms of transparency 

and accountability for funding 

this service distinctly from other 

services. Funding this service 

separately adds no extra cost. 

It is Council policy to provide 

a public library network for the 

district and the high number of 

volunteers and the high membership 

rate demonstrate a strong level of 

community support. 

The Local Government Act 2002 

stipulates free membership of 

libraries - the aim being to provide 

an accessible library service 

that supports an educated and 

culturally enriched community. The 

library provides resources for the 

community regardless of income, 

isolation, ability and technical 

expertise. 

Funding discussions centre around 

the ‘who pays’ argument and the 

impact that charges will have on 

the community. Library collections 

today are made up of many formats 

including books, video, DVD, CD, 

magazines, newspapers and a variety 

of online databases including the 

internet. The library retrieves 3% of 

its operational costs. Charges apply 

to overdue items and to services that 

are considered value added. Rentals 

are applied to most audiovisual loans 

– copyright legislation stipulates that 

libraries are not to make a profit on 

these items – and to some internet 

usage. 

Having different charges for different 

groups of people (low income 

earners, children, superannuatants, 

etc) is more costly to administer 

than the cost of free access to 

library services. 

The target group (adults with low 

income and children) could not 

afford to pay user charges for books. 

Bringing in differentiated charges 

would be an enormous administrative 

load that would cost more than free 

access. The closest to a user charge 

would be a Uniform Annual General 

Charge. 


from libraries is to the 

District as a whole 

in encouraging the 

development of an informed 

and educated Community. 

Additional benefits from 

enhanced library services 

may be derived from 

residents of the local ward 

or community rating area in 

which the library is located. 


• 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 will be funded from 

Council reserves or loans pursuant 

the Council’s Internal Financing 

Policy, and if any of this Capital 

Expenditure caters for future growth, 

then that portion of the expenditure 

that relates to growth may be funded 

from future units of demand via 

Development Contributions. 

• The construction of the Hurunui 

Memorial Library has been funded 

from two loans pursuant to 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 by 

way of development contributions. 

• The second loan was the marginal 

cost of an enhanced building which 

was assigned to the Amberley Ward. 

The marginal cost was assessed at 

$260,000. Since 2004, the Amberley 

Ward Ratepayers have been 

contributing $16.00 per rating unit, 

which has been used to fund the 

interest and principal repayments. 

This loan is expected to be repaid 

in 2016. 


• There will be a positive effect on 

the current and future social and 

cultural wellbeing of library users. 

238


Service 


Outcomes 


Constraints 


what period 


Environment and 

Safety – Civil 

Defence 


of Civil Defence service 




to live: 













environmental responsibility: 









There are (or can be) 

significant costs associated 

with Civil Defence, and 

funding includes government 

contributions, hence, in the 

interests of transparency 

and accountability, there 

is justification for funding 


other services. There 

is no significant cost in 

maintaining this distinction. 

Who Benefits, and over what 

Period? 

It is not practical to quantify 

benefits to individual 

ratepayers or groups of 

ratepayers, so the District as 

a whole is assumed to benefit. 

There is a small component of 

benefit to visitors, who might 

otherwise be more adversely 

affected by an emergency, and 

to the national community, 

who would have to contribute 

more resources for emergency 

relief if local measures were 

not in place. 

No significant capital 

investment in this area. 

Benefits of operational 

expenditure accrue at the time 

of expenditure. 


• 100% District Rate after taking into 

account the small central government 

contribution via an annual grant. 


• The negative impact of the cost of 

this service is offset by the social 

wellbeing through having a safe and 

healthy communities. 

239


Service 


Outcomes 


Constraints 


what period 



Safety – Rural Fire 


of Rural Fire service 




to live: 

- We have attractive well 


- Communities have 







- Risks to public health 




environmental 


- We protect our 




- We minimise solid 

waste to the fullest 

extent, and manage the 

rest in a sustainable 

way 

Rural communities benefit 

more than others from this 

service, hence there are 

benefits to transparency and 

accountability from funding 


other services, and not 

significant costs involved. 

It is questionable whether or 

not urban ratepayers within 

the District should contribute 

to the provision of a rural 

fire service. The assistance 

that the rural brigades make 

to the urban areas is offset 

by reciprocal arrangement of 

urban brigades to turn out to 

rural fires. 

The New Zealand Fire Service 

may attend rural fires with the 

first hour being at no charge. 

There is a subsidy applied by 

government. 

The predominant benefit is 

to properties in the defined 

rural fire areas, but there is 

a benefit to the District as 

a whole, and to the nation 

as a whole in mitigating the 

environmental and economic 

effects of vegetation fires. 

Benefits from operational 

expenditure are spread over 

the financial year to which 

they apply. 

Fighting fires: 

• Property owner pays. In some instances 

there may be a portion of the fire 

fighting costs that may not be able to 

be recovered. Such cost will need to be 

recovered in line with other costs. 

Other costs: 

• After taking Government grants into 

account, 80% from ratepayers in the 

Rural Fire Authority area and 20% 

from ratepayers outside the Rural Fire 

Authority area. Both will be collected 

by way of a Targeted Rate known as the 

Rural Fire Rate. 


• The negative impact of the cost of this 

service is offset by the social wellbeing 

through having a safe and healthy 

communities. 

240


Service 

Relevant 


Outcomes 


Constraints 


what period 



Safety – Resource 

Management 


Resource Management 

services contributes 

to the Hurunui district 

being: 




well designed 

townships 











managed 

A place that 

demonstrates 

environmental 






- We minimise 

solid waste to the 

fullest extent, and 



This is a significant and 

reasonably discrete area 

of expenditure; hence 

there are benefits in 

terms of transparency and 

accountability from funding it 

distinctly from other services. 

There are no significant costs 

involved in this distinction. 

Statutory constraints 

apply. Recovery of 

“reasonable costs” relating 

to administration is allowed 

under the terms of section 36 

of the Resource Management 

Act. 

Resource Management Act 

– resource consents, 100% 

user charges. The Council 

may waive consent fees as 

provided for in the RMA. 

In general applicants for 

resource consents should pay 

all processing costs. 

100% benefit from policy 

services to the District as a 

whole through promotion of 

the sustainable management 

of the District’s natural and 

physical resources for future 

generations. 

The predominant benefit from 

consents is to the individuals 

who require them, but 

there is some benefit to the 

District as a whole in that all 

ratepayers can be assured that 

the environment they work, 

eat, drink and live in is safe 

and managed in accordance 

with the principles of sustainable 

management under the 

provisions of the Resource 

Management Act. 

Capital costs are minimal in 

this function and the benefits 

from operational expenditure 

are spread over the year 

it is incurred. Any costs of 

mediation to make the District 

Plan operative to be spread 

over the life of the plan (10 

years). 

Resource Consents: 

• 100% user charges. Council may waive 

consent fees as provided for in the Resource 

Management Act. 

Private District Plan Changes: 

• All costs met by the applicant. 

Council Initiated Plan Changesded by the l Rate. 

• Extraordinary Planning Issues will be 

assessed on a case-by-case basis to 

determine the appropriate method for 

funding. 

• Some of the benefits from RMA related 

services will be linked to the value of land 

owned; others will be independent of this. 

The balance of the costs will be met by a 

District Rate (known as the planning rate). 


• The slight ongoing negative effects on the 

economic wellbeing of ratepayers from the 

cost of the service will be offset by future 

gains in environmental and social wellbeing. 

241


Service 


Outcomes 


Constraints 


period 

Future Funding & 

Sustainability 

• 

Environment and The Council’s funding of 

Safety - Amberley coastal flood-protection 

Beach Foreshore works helps to make the 

Protection Hurunui district being: 


to live: 









emergencies 





environmental 










Those living in affected 

areas benefit more than 

others, hence there is 

justification, in terms of 

increased transparency and 

accountability, for funding this 

service distinctly from other 

services. 

Amberley Beach is a 

community that is threatened 

by coastal erosion. Unless 

the coastal protection is 

replenished by adding more 

suitable material, property will, 

eventually, be lost. 

The community wishes 

the Council to re-nourish 

the coastal protection by 

adding more material as 

necessary. The frequency of 

re-nourishment is expected to 

be between two to five years. 

The Council has the power 

to ensure that all who benefit 

from the scheme pay and 

that there are no free rider 

problems. 

Since the works are to 

preserve property values then 

the expenditure should be 

funded by a rate on property 

value. If any Council property 

is located in the community, 

or any other organisation’s 

property is located in 

the community, then that 

organisation should contribute 

in proportion to the property 

value in the same measure 

as other properties in the 

community. 

100% benefit to the owners of 

properties protected by the works, and 

this is in proportion to the value of the 

property. 

The benefits from capital expenditure 

accrue over the life of the asset and the 

benefits from operational expenditure 

accrue at the time that the work is 

completed. 


• Flooding protection works will 

be funded 100% Targeted Rate 

on each rating unit that Council 

considers receives direct benefit 

from such protection. 


• The slight ongoing negative effects 

on the economic wellbeing of 

those who pay for this service 

will be offset by future gains in 

economic and environmental 

wellbeing. 

242


Service 


Outcomes 


Constraints 


what period 


Environment 

and Safety – 

Swimming Pool 

Inspections 


Swimming Pool Inspections 

services contributes to the 



to live: 























rest in a sustainable way 

Those with swimming pools 

benefit more from this service 

than others; hence there are 

benefits to accountability and 

transparency from funding 


other services. There are no 

significant costs involved in 


The Council is required to 

take all reasonable steps to 

ensure private swimming 

pools meet the requirements 

of the Fencing of Swimming 

Act 1987. The Council is 

concerned at the level of noncompliance 

relating to this 

Act. The Council is currently 

auditing 33% of swimming 

pools on its register annually 

and believes this will increase 

pool owners’ awareness of 

the importance of maintaining 

existing fence standards to 

those required by the Act. 

100% benefit to swimming pool 

owners, as they would be held 

liable if an accident were to 

occur due to their swimming 

pool not having adequate 

fencing. There is also a benefit 

to other persons who may use 

the swimming pool in question, 

in the form of a reduced risk of 

accidental drowning, but this is 

impractical to quantify. 



life of the asset and the benefits 

from operational expenditure 

accrue at the time that the work 

is completed. 


- 100% of the costs will be recovered from 

a targeted rate on each rating unit on 

which is located a swimming pool. 

- Pools which remain non-compliant will 

incur an inspection fee for any inspection 

and subsequent inspections. 


- The negative impact of the cost of this 

service is offset by the social wellbeing 

through having a safe and healthy 

communities. 

243


Service 

Relevant 


Outcomes 


Constraints 


what period 



Safety – Building 

Controls 


Building Services 






well designed 

townships 











managed 

A place that 

d e m o n s t r a t e s 







- We minimise 





Those who use the service 

benefit more than those 

who do not, hence, for 

reasons of transparency 

and accountability, there 


it distinctly from other 

services. There are no 



The predominant benefit is 

to the owner of the premises, 

but there are benefits to the 

District as a whole in that 

the service is available on an 

ongoing basis to cater for 

future development and in 

that residents are assured 

that the environment they 

work and live in is safe. 



the life of the asset and the 


expenditure accrue at 

the time that the work is 

completed. 

Building consents: 

- 100% user charges. 

Building Administration other than consents 

processing (including some advice): 

- Some of the benefit from this will be related to 

property value and some will not. The Council 

has determined that this should be funded from 

the District The slight ongoing negative effects 

on the economic wellbeing of those who pay 

for these services will be offset by future gains in 

social and environmental wellbeing. 

BCA Costs: 

- The costs relating to the BCA Accreditation 

process will be funded by a separate levy charged 

on building consents. 


- The negative impact of the cost of this service is 

offset by the social wellbeing through having a safe 

and healthy communities. 

244


Service 


Outcomes 


Constraints 





Safety – Health 

and Liquor 

Licensing 


Health and Liquor 

Licensing services 




to live: 























rest in a sustainable way 

Those who use the services 

benefit more than those 

who do not, hence, for 

reasons of transparency 



them distinctly from other 

services. There are no 



For some health functions 

there are statutory 

constraints on the 

application of user charges, 

e.g. infectious disease 

follow-ups. The Sale of 

Liquor Act sets the fees that 

can be charged for liquor 

licensing 


is to the occupier of the 

premises that are licensed, 

but there is a component 

of benefit to the District 

as a whole in that people 

are assured that the 

environment they work, 

eat, drink and live in is safe. 

There is no relationship 

between this benefit and 

property value. 



the life of the asset and the 



time work is completed. 

Health: 

- User charges meet a portion of the cost with the 

shortfall to be met from the District Rate. 

Liquor: 

- Maximum fees as set out in the Sale of Liquor Act 

with any shortfall from the District Rate. 


- The negative impact of the cost of this service is 

offset by the social wellbeing through having a safe 

and healthy communities. 

245


Service 

Relevant 


Outcomes 


Constraints 





Safety – Animal 

Control 


Animal Control services 






well designed 

townships 








A place that 

d e m o n s t r a t e s 







- We minimise 





Those who use the 

service benefit more 

than those who do 

not, hence, for reasons 

of transparency and 

accountability, there is 

justification for funding 

it distinctly from 

other services. There 

are no significant 

costs involved in 

this distinction. Dog 

registration cost issues 

and recovery of costs 

associated with dog 

control are set out in 

the Dog Control Act. 

Dog owners question 

what benefit they 

derive from the 



and appropriately registration 

managed 

process. 

Do the majority 

of owners pay for 

the minority who 

are negligent in 

their ownership 

responsibilities? While 

this is a valid question, 

it is impractical to 

amend the system as 

to do so would cost 

more than any gain 

that would be derived. 

Dog and animal 

control legislation 

is clearly based on a 

mix of the principle 

that the owner should 

pay for animal control 

“incidents” with the 

establishment of the 

service being a public 

good. 

100% benefit to animal 

owners for incidents 

and 100% benefit to 

the District as a whole 

for service readiness. 

This latter benefit will 

relate to the area of 

land owned (the more 

land, the more scope 

for wandering stock), 

and thus for all practical 

purposes may be tied 

to its Capital Value. 

100% benefit to 

the dog owner for 

incidents; 100% dog 

registration fee for 

readiness. 

No significant capital 

expenditure is involved 

with this service. 

All operational 

expenditure is applied 

to the provision of 

service in the year it is 

collected. 

Dog Registration: 

Process and standby (including record keeping) are funded by 

the dog registration fee. 

The owner pays with the shortfall (eg: complaint unfounded, 

dog gone, etc), funded by dog registration fees. 

Stock Control: 

Costs relating to animal or stock control are paid 100% from 

stock owners; the balance of remaining costs to be met from 

the District Rate. 


The negative impact of the cost of this service is offset by the 

social wellbeing through having a safe and healthy communities. 

246


Service 


Outcomes 


Constraints 





Safety – Waste 

Minimisation 


of Solid Waste services 




to live: 



- Communities have access 










environmental responsibility: 





- We minimise solid waste 




This is a significant 

service in terms 

of expenditure, so 

there are benefits for 

accountability and 

transparency from 

funding it separately 


Funding this service 

separately adds no 

significant extra cost. 


is to those disposing of 

their waste but there is 

a general benefit to the 

District as a whole through 

having adequate waste 

disposal systems in place 

and discouraging illegal 

dumping or storing of 

rubbish. 


expenditure accrue for 

the lifetime of facilities 

such as transfer stations. 

Benefits from operational 

expenditure occur at the 

time the expenditure is 

made. 


- -Refuse collection costs are all met through 

targeted rates for each dwelling or business in each 

urban area based on the cost of collection in that 

urban area. 

- -Rural rate payers on the route can have their 

rubbish picked up for the above cost plus a marginal 

charge for the provision of the rural collection 

stickers. 

- -Transfer station costs are met through fees set at 

each transfer station. The fees are set to encourage 

use and discourage illegal dumping. Any shortfall in 

costs is met from a District Rate. 

- -Litter bin collection costs are all met through a 

District Rate. 


- -Any capital expenditure on the transfer stations is 

funded over the life of the asset through a District 

Rate. 

- -Income from the Council’s reimbursement from 

the landfill levy maybe used for capital purchases. 


The ongoing negative effects on the economic 

wellbeing of those who pay for solid waste collection 

will be offset by future gains in social and environmental 

wellbeing. 

247


Service 

Relevant 


Outcomes 


Constraints 


period 


District Promotion The Council’s funding 

District Promotion and 

Development services 



A place with a thriving 

local economy: 

- We are seen as a 

good place to do 

business, to live and 

to visit 

This is a distinct area of 

Council expenditure; hence, 

for reasons of transparency 



these services distinctly from 

other services. There are no 

significant costs involved in this 

distinction 

100% benefit to the District as a 

whole for general district promotion 

(in proportion to Capital Value), and 

the same for general economic 

development (partly in proportion 

to Capital Value, partly independent 

of this). 

There is no significant capital 

requirement and operational 

benefits are received at the time, or 

near to the time, of expenditure. 


- 100% District Rate 


- The negative impact through paying for 

this service is offset by the economic 

wellbeing of the district. 

248


Service 

Relevant 


Outcomes 


Constraints 


what period 



Thermal Pools 

and Spa 


the Hanmer Springs 

Thermal Pools and Spa 

(also known as the 


Reserve) function 



A place with a thriving 

local economy: 

- We are seen as a 

good place to do 

business, to live and 

to visit 





- People have a range 




- Our historic and 



generations 

The Thermal Pool complex 

is run as a department of 

the Council and as such, the 

use of the profits has certain 

restrictions placed on it and 

most of it must be in accord 

with the Reserves Act. The 

Pools is run as a business and 

deliberately aims for increased 

profits. The resulting profits 

can amount to more than 

needs to be spent on reserves. 

All ratepayers living in the 

Hurunui District benefit from 

the Thermal Pools operation 

in some way or other. Because 

of the profits earned from the 

Pools, these are used to offset 

the amount of rates charged 

to the ratepayer. All reserves 

and operations run on reserves, 

such as libraries, are funded 

from the pools surpluses rather 

than through direct rates. 

Residents in the Hurunui 

benefit from having the thermal 

pools resource in the District 

from a recreational point of 

view. Residents have special 

discounted rates to use the 

pools. 

The Thermal Pool complex 

brings visitors and tourists into 

the District which brings about 

economic benefits to other 

business operators. 


-100% user charge as per the pools fee schedule. 


- -Replacement of existing assets is funded 

from the Hanmer Springs Thermal Reserve 

surpluses. 

- -Expenditure on new assets are generally 

funded through an internal loan according to 

Council’s internal financing policy. 

- The Thermal Pools and Spa are funded 100% 

by user charges and generate an annual 

surplus for Council. Major capital works are 

funded through the Thermal Pools and Spa 

borrowing from the Council pursuant to 

the Council’s Internal Financing Policy. The 

interest rate set at: 

- -2.5% above the Council’s external borrowing 

rate 

- Minor capital works are funded through the 

Thermal Pools and Spa’s retained earnings. 

The additional interest derived from the 

internal financing to the Thermal Pools and 

Spa ($25,000 per $1 million of borrowings) 

provides a good return for the Council that 

contributes toward lower rates. 

Use of income derived from the Thermal Pools 

and Spa: 

- The Thermal Pools and Spa are situated 

on a Recreation Reserve which has been 

vested in the Council under the Reserves 

Act 1977. Pursuant to the Reserves Act, the 

Council is only able to apply any surpluses 

derived from the Thermal Reserve to other 

reserves administered by the Council. The 

Council actively uses these surpluses to fund 

the costs relating to other District Reserves, 

Cemeteries, Public Toilets, and as the District 

Library has been built on a Reserve, the costs 

associated with the Library function is also 

subsidised by the surpluses from the Thermal 

Reserve. 

- The pools and spa were expanded and 

improved in a major upgrade in 2010. This 

was funded by way of internal loan finance, 

as per Council’s Internal Financing Policy. 

The interest costs incurred by the Hanmer 

Springs Thermal Pools and Spa creates 

a distinct flow of income that is derived 

from the use of the funds that the Council 

is investing, rather than from the use of the 

Recreation Reserve. 

As a result, we now have two distinct streams 

of income generated from the Pools and Spa 

operation: 

- one from internal interest, which the Council 

uses to offset General Rates (in accordance 

with the Council’s funding policies) 

- and the other being on-going surpluses which 

are used to fund costs relating the reserves 

(as per the provisions of the Reserve Act 

1977). 

249


Service 

Relevant 


Outcomes 


Constraints 




Governance 

The Council’s funding Council members The Council process Operational Costs: 

the Governance are elected by the and advocacy of 

function contributes ratepayers; hence ratepayers’ interests 

to the Hurunui district there is a benefit in benefits the District as 

being: 

terms of transparency a whole. 

A desirable and safe and accountability No significant capital 


from funding them investment in this area. 

distinctly from other 


Benefits of operational 

services. There are 

well designed 

expenditure accrue at 


no significant costs 

townships 

the time of expenditure. 

associated with this 

distinction. 











managed 

The 

Local 

Government Act and 

many other statutes 

govern the Council’s 

democratic process. 

These define the 

Council’s role and 

set out the Council’s 

obligations 

Funded from the District Rate (known as the Governance 

Rate). Information supplied under the Official Information Act 

is charged as allowed for under that act. 

The elected members’ costs relating to the Hanmer Springs 

Community Board shall be funded by the Hanmer Springs Ward 

Amenities Rate. 

This activity benefits communities and contributes to their 

wellbeing across all of the four wellness areas. 

250

Significance Policy 

Introduction 

The purpose of this policy is to outline the general approach of 

the Hurunui District Council in determining the significance 

of proposals and decisions in relation to issues, assets or other 

matters. The policy includes determinants (any thresholds, 

criteria or procedures) used to assist in assessing the extent 

to which issues, proposals, decisions or other matters are 

significant. It also includes procedural guidelines designed to 

ensure that a proper process is followed and that all compliance 

requirements of the Local Government Act 2002 in relation to 

decision making will be met by Council. 

This policy is made up of the following parts: 

Legislative Framework 

• Legislative requirements 

• Definitions 

Application of the Policy on Significance 

• Determining significance 

• Criteria for determining significance 

• Significant issues, proposals, decisions and other matters 

• Consultation 

Strategic Assets 

• Introduction 

• Schedule of Strategic Assets 

Appendices 

• Relevant Extracts from the Local Government Act 

2002 

• Significance Consideration for Inclusion in Council 

Agendas 

Legislative Framework 

Every local authority is required to have a policy on significance 

pursuant to section 90 of the Local Government Act 2002 (LGA). 

Adoption and the amendment of this policy must use the 

special consultative procedure. A summary of the policy must 

be included in the Long Term Plan (the Hurunui Community 

Long Term Plan). 

Definitions 

Section 5 of the LGA defines significance, significant and 

strategic asset as follows: 


Significance, in relation to any issue, proposal, decision, or other 

matter that concerns or is before a local authority, means the 

degree of importance of the issue, proposal, decision, or matter, 

as assessed by the local authority, in terms of its likely impact 

on, and likely consequences for: 

(a) the current and future social, economic, 

environmental or cultural wellbeing of the District or 

region; 

(b) any persons who are likely to be particularly 

affected by, or interested in the issue, proposal, decision or 

matter; 

(c) the capacity of the local authority to perform its 

role, and the financial and other costs of doing so. 

Significant, in relation to any issue, proposal, decision, or any 

other matter means that the issue, proposal, decision, or other 

matter has a high degree of significance. 

Strategic Asset, in relation to the assets held by a local authority 

means an asset or group of assets that the local authority needs 

to retain if the local authority is to maintain the local authority’s 

capacity to achieve or promote any outcome that the local 

authority determines to be important to the current and future 

wellbeing of the community and includes: 

(a) any asset or group of assets listed in accordance with 

section 90(2) by the local authority; and 

(b) any land or building owned by the local authority 

and required to maintain the local authority’s capacity to 

provide affordable housing as part of its social policy; and 

(c) any equity securities held by the local authority in: 

(i) a port company within the meaning of the 

Port Companies Act 1988 

(ii) an airport company within the meaning of the 

Airport Authorities Act 1966. 

Application of the Policy on Significance 

Determining Significance 

Each issue, proposal, decision or other matter is considered 

by Council on a case by case basis to determine: 

• whether it is significant, and, if so, 

• the degree of significance. The higher the impact or 

consequences, costs or implications, the higher the 

degree of significance. 

251


The starting point for determining the degree of significance 

is to consider: 

• the likely impact on or consequences for the wellness of the 

community, taking account in relation to current and future 

needs (i.e. sustainability) the social, economic, environmental 

and cultural wellbeing of the District, along with the District’s 

landscape & outlook, individual and community lifestyle, 

education and skills development, heritage & tradition, and 

infrastructure. 

• the likely impact on or consequences for those 

affected or interested. 

• the capacity of the Council (including financial capacity) 

to implement the decision and carry out its normal role. 

It is Council’s decision as to what “a high degree of significance” 

means in each instance. 

Criteria for Determining Significance 

The significance of a decision will help determine the 

appropriate nature, extent and degree of compliance required 

with the decision-making process set out in Part 6 of the LGA. 

For significant decisions, the Council will ensure appropriate 

compliance. 

The questions set out below should be used by Council to 

assist in determining the degree of significance of any issue, 

proposal, decision or other matter. These questions will also 

help with the required level of compliance with sections 77, 78, 

80, 81 and 82 of the LGA. (Refer to the appendices.) 

Firstly: Does Council have sufficient information about the 

issue, proposal, decisions or other matter? 

If not, then no decision as to the significance of the issue can 

be made. 

Secondly: If the answer is yes to any of the following questions 

then the issue, proposal, decisions or other matter has 

significance. The greater the number of ‘yes’ answers, the 

greater the degree of significance. 

In the opinion of the Council, does the issue, proposal, decision 

or other matter: 

• affect all or a large portion of the community in a farreaching 

way? 

• have a potential impact or consequence on the affected 

persons (being a number of persons) that is substantial? 

• have financial implications on the Council’s resources 

that would be substantial? 

• generate (or would be expected to generate) a high 

degree of controversy? 

• fail to flow logically or consequentially from a decision 

in the Hurunui Long Term Community Plan (including 

the ideal of District and community wellness)? 

Significant Issues, Proposals, Decisions and Other 

Matters 

Significant issues, proposals, decisions or other matters will be 

included in the Hurunui Long Term Community Plan wherever 

possible. Where this is not practical they will be included 

wherever possible in the Annual Plan produced in the years 

between the Hurunui Long Term Community Plan or where 

required by the Act in an amendment to the Hurunui Long Term 

Community Plan. 

Significant decisions will only be made outside of the above 

processes where there are compelling reasons for it not being 

practical for them to be included in the Hurunui Long Term 

Community Plan or Annual Plan. 

The Council will not proceed with a decision that is determined 

to be significant without consideration of a detailed statement 

evidencing compliance with sections 77, 78, 80,81 and 82 of the 

LGA. 

Other implications of significance under the LGA are: 

• The Council must use the special consultative 

procedure (SCP) when considering a proposal to alter 

the mode (as set out in LGA section 88(1-2)) by which 

a significant activity is undertaken. 

• If an option identified in the decision-making process 

involves a significant decision in relation to land or a 

body of water, the local authority must take into 

account the relationship of Mäori and their culture and 

traditions with their ancestral land, water, etc. 

• The Council must not lose control of, sell or dispose 

of ‘significant infrastructure’ necessary for providing 

water services. 

Consultation 

The significance of a matter will guide the Council’s decisions 

concerning the extent and nature of the consultation to be 

undertaken with the persons likely to be affected or interested 

in the decision or matter as set out in section 82 of the LGA. 

In determining what is appropriate, the Council must have 

regard to various matters including its likely impact from the 

perspective of the persons who will or may be affected by the 

decision. The degree of significance will help decide whether 

a special round of consultation is necessary, or whether it is 

sufficient to rely on information already gathered and held by 

the Council. The degree of compliance and associated cost 

252


involved when making a judgment about significance of a 

particular decision also needs to be considered. 

Procedures 

Every agenda will include a statement of “Significance 

Consideration” which will include the questions which 

determine the level of significance. (Refer to the appendices.) 

Every report to the Council must include a statement indicating 

that the issue of significance has been considered, and including a 

recommendation where necessary. 

When the Council is considering the significance of an issue, 

proposal, decision or other matter, in the event one or more 

elected members consider it to be significant, but are in the 

minority, the Council will: 

(a) 

(b) 

Reconsider the significance questions, and/or; 

Consider whether a view should be sought from 

the relevant Ward if appropriate to do so. 

If a decision to be made is considered to be significant, the 

report will also include a statement addressing what has been 

done to ensure compliance with sections 77, 78, 80, 81 and 82 of 

the LGA as applicable. 

Strategic Assets 

Introduction 

The Council is required pursuant to section 90(2) of the 

LGA, to list all strategic assets as defined in section 5 of the LGA 

and set out under the ‘Legislative Framework’ of this policy. The 

schedule of the strategic assets set out on the next page is not 

exhaustive but includes those which are considered significant in 

ensuring the Council’s capacity to achieve or promote important 

outcomes. 

It is important to note that the Council manages a number of 

strategic assets as a whole. This is because these asset classes 

as a whole, deliver the service. Strategic decisions in these 

areas, therefore only concern the whole asset class and not 

individual components, unless those components substantially 

affect the ability of the Council to deliver the service. It is the 

principle of the provision of the services that makes these asset 

groups strategic, not the individual roads, individual toilet blocks, 

individual halls, etc. 

253


Appendix 1: Schedule of Strategic Assets 

Activity or group of 

activities 

Investments 

Asset 

Equity in Transwaste Limited 

Economic 

(district 

growth) 

√ 

Strategic issues 

Social 

(quality of life) Cultural Environment 

The Council Forestry estates as a whole 

√ 

Water Supply 

Sewerage 

Storm Water and 

Drainage 



and Facilities 



Pools and Spa 

The water supply network as a whole including 

reservoirs, treatment plants, pump stations and 

reticulation 

√ √ √ 

The wastewater collection, treatment and 

disposal system as a whole including the sewers, √ √ √ √ 

pump stations and the treatment works 

The land drainage system as a whole including 

stormwater pipe network, the open river 

system, waterways, wetlands and retention 

√ √ √ √ 

basins 

The Hurunui District roading network as a 

whole 

√ √ √ 

The Library network as a whole including the 

District Library and the Communities Libraries 

√ √ √ 

The reserves lands as a whole including land 

held under the Reserves Act and land used 

for parks, domains, village greens, cemeteries, 

√ √ √ √ 

sports fields and recreational areas 

The lands and buildings as a whole used for the 

administration of the District 

√ 

The lands and buildings as a whole owned by 

the Council for its pensioner housing provision 

√ √ 

The lands and buildings comprising community 

halls 

√ √ 

The land and buildings as a whole owned by 

the Council to support primary health care √ √ 

availability 

The Hurunui solid waste network as a whole 

including transfer stations 

√ √ √ 

The lands, buildings and commercial operations 

as a whole on Hanmer Springs Thermal Reserve √ √ √ 

254


Appendix 2: Relevant Extracts From the Local Government Act 2002 

S 77 Requirements in Relation to Decisions: 

(1) A local Authority must, in the course of the decisionmaking 

process: 

(a) seek to identify all reasonably practicable options for 

the achievement of the objective of a decision; and 

(b) 

assess those options by considering: 

(i) the benefits and costs of each option in 

terms of the present and future social, economic, 

environmental, and cultural wellbeing of the district 

or region; and 

(ii) the extent to which community outcomes 

would be promoted or achieved in an integrated and 

efficient manner by each option; and 

(iii) the impact of each option on the local 

authority’s capacity to meet present and future needs 

in relation to any statutory responsibility of the local 

authority; and 

(iv) any other matters that, in the opinion of 

the local authority, are relevant; and 

(c) if any of the options identified under paragraph (a) 

involves a significant decision in relation to land or a body 

of water, take into account the relationship of Mäori and 

their culture and traditions with their ancestral land, 

water, sites, waahi tapu, valued flora and fauna, and other 

taonga. 

(2) This section is subject to section 79. 

S 78 Community views in relation to decisions: 

(1) A local authority must, in the course of its decisionmaking 

process in relation to a matter, give consideration to the 

views and preferences of persons likely to be affected by, or to 

have an interest in, the matter. 

(2) That consideration must be given at: 

(a) the stage at which the problems and objectives related 

to the matter is defined; 

(b) the stage at which the options that may be reasonably 

practicable options of achieving an objective are identified; 

(c) the stage at which reasonably practicable options are 

assessed and proposals developed; 

(d) the stage at which proposals of the kind described in 

paragraph (c) are adopted; 

(3) A local authority is not required by this section alone 

to undertake any consultation process or procedure. 

(4) This section is subject to section 79. 

S 80 Identification of inconsistent decisions: 

(1) If a decision of a local authority is significantly 

inconsistent with, or is anticipated to have consequences that 

will be significantly inconsistent with, any policy adopted by the 

local authority or any plan required by this Act or any other 

enactment, the local authority must, when making the decision, 

clearly identify: 

(a) the inconsistency; and 

(b) the reasons for the inconsistency; 

and 

(c) any intention of the local authority to amend the 

policy or plan to accommodate the decision. 

(2) Subsection (1) does not derogate from any other 

provision of this Act or of any other enactment. 

S 81 Contributions to decision-making processes by 

Mäori: 

(1) A local authority must: 

(a) establish and maintain processes to provide 

opportunities for Mäori to contribute to the decisionmaking 

processes of the local authority; and 

(b) consider ways in which it may foster the development 

of Mäori capacity to contribute to the decision-making 

processes of the local authority; and 

(c) provide relevant information to Mäori for the purposes 

of paragraphs (a) and (b). 

(2) A local authority, in exercising its responsibility to 

make judgments about the manner in which subsection (1) is to 

be complied with, must have regard to: 

(a) the role of the local authority, as set out in section 11; 

and 

(b) such other matters as the local authority considers on 

reasonable grounds to be relevant to those judgments. 

255


S 82 Principles of consultation: 

(1) Consultation that a local authority undertakes in 

relation to any decision or other matter must be undertaken, 

subject to subsections (3) to (5), in accordance with the following 

principles: 

(a) that persons who will or may be affected by, or have 

an interest in, the decision or matter should be provided 

by the local authority with reasonable access to relevant 

information in a manner and format that is appropriate to 

the preferences and needs of those persons 

(b) that persons who will or may be affected by, or have an 

interest in, the decision or matter should be encouraged 

by the local authority to present their views to the local 

authority 

(c) that persons who are invited or encouraged to present 

their views to the local authority should be given clear 

information by the local authority concerning the purpose 

of the consultation and the scope of the decisions to be 

taken following the consideration of views presented 

(d) that persons who wish to have their views on the 

decision or matter considered by the local authority 

should be provided by the local authority with a reasonable 

opportunity to present those views to the local authority in 

a manner and format that is appropriate to the preferences 

and needs of those persons 

(e) that the views presented to the local authority should 

be received by the local authority with an open mind and 

should be given by the local authority, in making a decision, 

due consideration 

(f) that persons who present views to the local authority 

should be provided by the local authority with information 

concerning both the relevant decisions and the reasons for 

those decisions. 

(2) A local authority must ensure that it has in place 

processes for consulting with Mäori in accordance with 

subsection (1). 

(3) The principles set out in subsection (1) are, subject to 

subsections (4) and (5), to be observed by a local authority in 

such manner as the local authority considers, in its discretion, to 

be appropriate in any particular instance. 

(4) A local authority must, in exercising its discretion 

under subsection (3), have regard to: 

(a) the requirements of section 78; and 

(b) the extent to which the current views and preferences 

of persons who will or may be affected by, or have an 

interest in, the decision or matter are known to the local 

authority; and 

(c) the nature and significance of the decision or matter, 

including its likely impact from the perspective of the 

persons who will or may be affected by, or have an interest 

in, the decision or matter; and 

(d) the provisions of Part I of the Local Government 

Official Information and Meetings Act 1987 (which Part, 

among other things, sets out the circumstances in which 

there is good reason for withholding local authority 

information); and 

(e) the costs and benefits of any consultation process or 

procedure. 

(5) Where a local authority is authorised or required by 

this Act or any other enactment to undertake consultation in 

relation to any decision or matter and the procedure in respect 

of that consultation is prescribed by this Act or any other 

enactment, such of the provisions of the principles set out in 

subsection (1) as are inconsistent with specific requirements 

of the procedure so prescribed are not to be observed by the 

local authority in respect of that consultation. 

S 88 (1-2) Use of special consultative procedure in 

relation to change of mode of delivery of significant 

activity: 

(1) A local authority must use the special consultative 

procedure in relation to any proposal for an alteration (of 

the kind described in subsection (2)) in the mode by which a 

significant activity is undertaken by or on behalf of the local 

authority. 

(2) The kind of alteration to which subsection (1) refers 

is an alteration that involves: 

(a) a change from delivery of the activity by the local 

authority itself to delivery of the activity by a council 

controlled organisation in which the local authority is a 

shareholder; or 

(b) a change from delivery of the activity by the local 

authority itself to delivery of the activity by another 

organisation or person; or 

(c) a change from delivery of the activity by a council 

controlled organisation in which the local authority 

is a shareholder to delivery of the activity by another 

organisation or person. 

256


Appendix 3: Significance Consideration For Inclusion in all Council Agendas 

The [name of the council committee], in considering each matter, 

must be: 

a. Satisfied that it has sufficient information about the 

practicable options and their benefits, costs and impacts, 

bearing in mind the significance of the decisions 

b. Satisfied that it knows enough about and will give 

adequate consideration to the views and preferences 

of affected and interested parties bearing in mind the 

significance of the decisions to be made 

Questions 

a. Does the Council have sufficient information about 

the issue, proposal, decisions or other matter? 

b. Does the issue, proposal, decision or other matter: 

Evaluation 

• affect all or a large portion of the community 

in a far-reaching way? 

• have a potential impact or consequence on 

the affected persons (being a number of persons) 

that is substantial? 

• have financial implications on the Council’s 

resources that would be substantial? 

• generate (or would be expected to generate) 

a high degree of controversy? 

• fail to flow logically or consequentially from 

a decision in the Hurunui Long Term Community 

Plan (including the ideal of District and community 

wellness)? 

Council officers preparing these reports will have regard to 

the Council’s policy on significance. Council, Committee and 

Community Board members will make the final assessment on 

whether the subject under consideration is to be regarded 

as being significant or not. Unless the Council, a Committee 

or the Community Board explicitly determines that the subject 

under consideration is to be deemed significant then the 

subject will be deemed as not being significant. 

257


Treasury Risk Management Policy 

The definition and recognition of interest rate, liquidity, funding, 

investment, counterparty credit, market, operational and 

legal risk of Council will be as detailed below and applies to 

both the Liability Management policy and Investment policy. 

Interest Rate Risk 

Risk Recognition 

Interest rate risk is the risk that funding costs (due to adverse 

movements in market interest rates) will materially exceed or 

fall short of projections included in the LTCCP and Annual Plan 

so as to adversely impact revenue projections, cost control and 

capital investment decisions/returns/and feasibilities. 

The primary objective of interest rate risk management is to 

reduce uncertainty relating to interest rate movements through 

fixing/hedging of funding costs. 

Approved Financial Instruments 

Dealing in interest rate products must be limited to financial 

instruments approved by the Council. 

Category 

Cash management 

and 

borrowing 

Investments 

Interest rate risk 

management 

Instrument 

Bank overdraft 

Committed cash advance and bank accepted bill facilities 

(short term and long term loan facilities) 

Uncommitted money market facilities 

Retail and wholesale Bond and Floating Rate Note (FRN) 

issuance 

Commercial paper (CP) 

Short term bank deposits 

Bank certificates of deposit (RCDs) 

Treasury bills 

NZ Government, Local Authority bonds and FRNs 

(secured/senior) 

LGFA borrower notes / CP / bills / bonds/ FRNs (floating 

rate notes) 

Local Authority promissory notes, Commercial paper 

(secured/senior) 

Forward rate agreements (“FRAs”) on: 

Bank bills 

Government bonds 

Interest rate swaps including: 

Forward start swaps (start date


During the term of the option, only the sold side of the 

collar can be closed out (i.e. repurchased) otherwise, 

both sides must be closed simultaneously. The sold 

option leg of the collar structure must not have a strike 

rate “in-the-money”. 

• Purchased borrower swap options mature within 

12 months. 

• Interest rate options with a maturity date beyond 12 

months that have a strike rate (exercise rate) higher 

than 2.00% above the appropriate swap rate, cannot 

be counted as part of the fixed rate cover percentage 

calculation. 

• Forward start period on swaps and collar strategies to 

be no more than 24 months, and the underlying cap or 

swap starts within this period. 

Special and General Reserve Funds 

Given that Council may require funding for capital expenditure 

cash shortfalls over the remaining life of the existing special and 

general reserve funds, where such funds are deemed necessary 

they should be used for internal borrowing purposes when 

external borrowing is required. Accordingly Council maintains 

its funds in short term maturities emphasising counterparty 

credit worthiness and liquidity. The interest rate yield achieved 

on the funds therefore is a secondary objective. 

This will negate counterparty credit risk and any interest rate 

repricing risk that occurs when Council borrows at a higher 

rate compared to the investment rate achieved by Special / 

Reserve Funds. 

Liquid assets will not be required to be held against special 

funds or reserve funds unless such funds are held within a trust 

requiring such, instead, Council will manage these funds using 

internal borrowing facilities. 

Foreign Currency 

Hurunui has minor foreign exchange exposure through the 

occasional purchase of foreign exchange denominated services, 

plant and equipment. Generally, all significant commitments for 

foreign exchange are hedged using foreign exchange contracts, 

once expenditure is approved. Both spot and forward foreign 

exchange contracts can be used by Hurunui. Council shall not 

borrow or enter into incidental arrangements, within or outside 

New Zealand, in currency other than New Zealand currency. 

Liquidity Risk/Funding Risk 

Risk Recognition 

Cash flow deficits in various future periods based on long 

term financial forecasts are reliant on the maturity structure 

of cash, financial investments, loans and bank facilities. Liquidity 

risk management focuses on the ability to access committed 

funding at that future time to fund the gaps. Funding risk 

management centres on the ability to re-finance or raise new 

debt at a future time at the same or more favourable pricing 

(fees and borrowing margins) and maturity terms of existing 

loans and facilities. 

The management of Council’s funding risks is important as 

several risk factors can arise to cause an adverse movement 

in borrowing margins, term availability and general flexibility 

including: 

• Local Government risk is priced to a higher fee and 

margin level; 

• Council’s own credit standing or financial 

strength as a borrower deteriorates due to financial, 

regulatory or other reasons; 

• A large individual lender to Council experiences their 

own financial/exposure difficulties resulting in Council 

not being able to manage their debt portfolio as 

optimally as desired; 

• New Zealand investment community experiences a 

substantial “over supply” of Council investment assets; 

A key factor of funding risk management is to spread and 

control the risk to reduce the concentration of risk at one 

point in time so that if any of the above events occur, the overall 

borrowing cost is not unnecessarily increased and desired 

maturity profile compromised due to market conditions. 

Liquidity/Funding Risk Control Limits 

Alternative funding mechanisms such as leasing should be 

evaluated with financial analysis in conjunction with traditional 

on-balance sheet funding. The evaluation should take into 

consideration, ownership, redemption value and effective cost 

of funds. 

External, term loans and committed debt facilities together with 

liquid investments/cash equivalents must be maintained at an 

amount of 110% over existing external debt. 

The CEO has the discretionary authority to re-finance existing 

debt on more favourable terms. Such action is to be reported 

and ratified by the Council at the earliest opportunity. 

Council has the ability to pre-fund up to 12 months of forecast 

debt requirements including re-financings. 

The maturity profile of the total committed funding in respect 

to all external debt/loans and committed debt facilities, is to 

be controlled by the following system and apply when external 

259


debt exceeds $25 million: 

Period Minimum Maximum 

0 to 3 years 

15% 

60% 

3 to 5 years 

15% 

60% 

5 years plus 

10% 

40% 

A maturity schedule outside these limits will require specific 

Council approval. 

Counterparty Credit Risk 

Counterparty credit risk is the risk of losses (realised 

or unrealised) arising from a counterparty defaulting on 

a financial instrument where the Council is a party. The 

credit risk to the Council in a default event will be weighted 

differently depending on the type of instrument entered into. 

Credit risk will be regularly reviewed by the Council. Treasury 

related transactions would only be entered into with 

organisations specifically approved by the Council. 

Counterparties and limits can only be approved on the basis of 

long-term credit ratings (Standard & Poor’s, Fitch or Moody’s) 

being A+ and above or short term rating of A-1 or above. 

Limits should be spread amongst a number of counterparties to 

avoid concentrations of credit exposure. See Matrix Guide. 

In determining the usage of the previous gross limits, the 

following product weightings will be used: 

• Investments (e.g. Bank Deposits) – Transaction Notional 

x Weighting 100%.(unless a legal right of set-off over 

corresponding borrowings exit whereupon a 0% 

weighting may apply) 

• Interest Rate Risk Management (e.g. swaps, FRAs) – 

Transaction Notional x Maturity (years) x 3%. 

• Foreign Exchange – Transactional principal amount x 

the square root of the Maturity (years) x 15% 

Each transaction should be entered into a treasury spreadsheet 

and a quarterly report prepared to show assessed counterparty 

actual exposure versus limits. Individual counterparty limits are 

kept in a spreadsheet by management and updated on a day to 

day basis. Credit ratings should be reviewed by the MFS on an 

ongoing basis and in the event of material credit downgrades; 

this should be immediately reported to the CEO and assessed 

against exposure limits. Counterparties exceeding limits should 

be reported to the Council. 

Investments are normally held to maturity date. Where 

investments are liquidated before legal maturity date, approval 

is obtained from the CEO. 

Matrix Guide 

Counterparty/Issuer 

Minimum long term / short 

term credit rating – stated 

and possible 

Investments maximum per 

counterparty 

($m) 

Interest rate risk management 

instrument maximum per 

counterparty ($m) 

Total maximum per 

counterparty 

($m) 

NZ Government N/A unlimited none Unlimited 

Local Government Funding 

Agency GFA 

N/A Unlimited N/A Unlimited 

NZD Registered 

Supranationals 

AAA 10.0 none 10.0 

NZ Registered Bank [name] A+/ A-1 10.0 10.0 20.0 

Local Government Stock/ 

Bonds/ FRN/ CP 

A+/ A-1 (if rated) 

2.0 

none 5.0 

* Subject to a maximum exposure no greater than 10% of the portfolio being invested in Local Government debt at any one point in time. The maximum 

portfolio exposure limit does not apply to the LGFA. 

This summary list will be expanded on a counterparty named basis which will be authorised by the CEO 

260


Risk Management 

To avoid undue concentration of exposures, financial instruments 

should be used with as wide a range of approved counterparties 

as possible. Maturities should be well spread. The approval 

process must take into account the liquidity of the market the 

instrument is traded in and repriced from. 

Operational Risk 

• Operational risk is the risk of loss as a result of human 

error (or fraud), system failures and inadequate 

procedures and controls. 

• Operational risk is very relevant when dealing with 

financial instruments given that: 

• Financial instruments may not be fully understood 

• Too much reliance is often placed on the specialised 

skills of one or two people 

Agreements 

Financial instruments can only be entered into with banks 

that have in place an executed ISDA Master Agreement 

with Council. 

Council’s internal/appointed legal counsel must sign off on 

all documentation for new loan borrowings, re-financings 

and investment structures. 

Financial Covenants and Other Obligations 

Council must not enter into any transactions where it would 

cause a breach of financial covenants under existing contractual 

arrangements. 

Council must comply with all obligations and reporting 

requirements under existing funding facilities and legislative 

requirements. 

• Most treasury instruments are executed over the 

phone 

• Operational risk is minimised through the adoption 

of all requirements outlined in the full Treasury Risk 

Management Policy, which include: 

Legal Risk 

• Dealing Authorities and Limits 

• Segregation of Duties 

• Reporting procedures, including records, 

confirmations and reconciliations 

• Organisational Controls 

Legal and regulatory risks relate to the unenforceability of a 

transaction due to an organisation not having the legal capacity 

or power to enter into the transaction usually because of 

prohibitions contained in legislation. While legal risks are more 

relevant for banks, Hurunui may be exposed to such risks. 

Hurunui will seek to minimise this risk by adopting policy 

regarding: 

• The use of standing dealing and settlement instructions 

(including bank accounts, authorised persons, standard 

deal confirmations, contacts for disputed transactions) 

to be sent to counterparties. 

• The matching of third party confirmations and 

the immediate follow-up of anomalies. 

• The use of expert advice. 

261


Internal Financing Policy 

Introduction 

Council has developed a system of internal financing for various 

activities within the organisation. The system is designed to 

provide funding for communities to meet the cost of capital 

expenditure rather than setting its rates at a level to cover the 

entire cost in the year that it is incurred. The system allows 

communities to spread the cost of such capital expenditure 

over a longer period than just one year. 

The system is used instead of the Council specifically setting its 

rates to cover the cost of depreciation on some of its assets 

(notably Water, Sewer, Stormwater and Community Facilities), 

which is generally required under the Local Government Act 

2002. 

The internal financing system is applicable those activities that 

are funded by a Targeted Rate, which requires the Council to 

ensure that the funds generated from rates are only applied to 

that activity, or there is reasons to separately account for an 

activity. As a result, the internal financing system is applied to 

the following: 

• Ward Amenities 

• Rural Fire Control 

• Animal Control 

• Household Refuse Collection 

• Water Supplies 

• Sewerage Schemes 

• Stormwater and Drainage Schemes 

• Medical Centres 

• Foreshore Protection Schemes 

• Special Funds including Development Contribution 

Funds 

• Hanmer Springs Thermal Reserve (with regards to the 

debt resulting from expansion work) 

Mechanics of the System 

Each activity has a capital balance, which in essence is an individual 

bank account for that activity. Receipts from that activity – 

Rates, Fees & Charges, and Development Contributions etc. 

– are deposited into that account. Payments for that activity 

– Employment Costs, Direct Operating Expenditure, Council 

Overheads etc. and Capital Expenditure – are withdrawn from 

that account. The result is that at any stage, that bank account 

may be in funds or it could be overdrawn. 

Like most bank accounts, if there are funds in the account from 

that activity, then the Council will pay interest to that activity. 

Conversely, if the bank account is overdrawn, then that activity 

will be charged interest. 

Debt Repayment 

There is also a need for those activities whose bank accounts 

are overdrawn to make provision to get out of overdraft. This 

is most likely done by setting rates at a level to not only pay 

the annual operating costs and interest charge, but to also fund 

additional amounts that will offset the overdraft. The Council’s 

policy is that debt should be repaid over 20 years (or such term 

Council deems appropriate in particular circumstances) and as 

a result, communities are required to fund at least 5% of the 

opening balance of their loan as repayments and set the rates 

accordingly. 

Increasing the Account 

As a way of increasing the account so communities are in 

a position to cover some or all of the cost of major capital 

projects in the future, the communities are encouraged to 

continue setting its rates at a level to cover the annual operating 

cost but also additional amounts (as a deemed affordable) which 

will increase the balance of the account. As a result, there will be 

a number of activities whose bank accounts will increase over 

time, with the knowledge that those funds will be utilised on 

capital expenditure. 

Interest Component 

To ensure consistency throughout the entire organisation, with 

the exception of the Hanmer Springs Thermal Reserve, the 

interest rates have been set as follows: 

• Interest rate on Overdrawn Activity Accounts is charged 

interest at 100 basis points (1%) above the interest rate 

that Council is charged for any external debt. 

• Interest rate on Activity Accounts in funds received 

interest at the interest rate that the Council receives 

on its call accounts. 

262


Hanmer Springs Thermal Reserve 

The Hanmer Springs Thermal Reserve is an exception to the 


As any development that the Hanmer Springs Thermal Reserve 

undertakes is of a commercial nature, there is an increased level 

of risk involved and as such, the interest rate charged for any 

debt drawn down by the Thermal Reserve attracts an interest 

rate of 250 basis points (2.5%) above the interest rate that 

Council is charged for any external debt. 

It is intended that any debt funding provided to the 

Hanmer Springs Thermal Reserve crystallises with the Thermal 

Reserve not required to actively repay debt unless required 

to by Council. This will result in the Council holding both a 

debt investment as well as an equity investment in the Thermal 

Reserve. 

Use of Interest 

All interest derived from internal financing is accumulated by 

the Council’s treasury function. Costs associated with treasury, 

such as any external interest, external advice, and Council 

overheads, are paid from the interest derived with the overall 

surplus from the treasury function used actively to offset the 

District Rate requirement. 

263


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 

264

Representatives of our District 


Mayor Winton Dalley 

Mayor 

Ph 03 314 8816 

mayor@hurunui.govt.nz 

PO Box 13 

Amberley 

Cr Marie Black 

Councillor Amuri-Hurunui Ward 

Ph 03 314 4142 

marie.black@hurunui.govt.nz 

Cr Michael Malthus 

Deputy Mayor 

Councillor Hanmer Springs Ward 

Ph 03 315 7757 

michael.malthus@hurunui.govt.nz 

Cr Jim Harré 


Ph 03 315 6162 

jim.harre@hurunui.govt.nz 

Cr Ross Little 

Councillor Amberley Ward 

Ph 03 314 5841 

ross.little@hurunui.govt.nz 

Cr Dick Davison 


Ph 03 315 8015 

dick.davison@hurunui.govt.nz 

Cr Gary Cooper 


Ph 03 314 9229 

gary,cooper@hurunui.govt.nz 

Cr Russell Black 

Councillor Glenmark Ward 

Ph 03 314 5888 

russell.black@hurunui.govt.nz 

Cr Judith McKendry 


Ph 03 314 8308 

judith.mckendry@hurunui.govt.nz 

Cr Vincent Daly 

Councillor Cheviot Ward 

Ph 03 319 8773 

vincent.daly@hurunui.govt.nz 

265


Waste Management and Minimisation Plan - Summary 

Introduction 

Our Waste Management and Minimisation Plan describes our 

vision for this activity including our objectives, policies and 

targets to enable residents, businesses and ratepayers to have 

access to an efficient, reliable, safe and cost effective service. 

We are committed to working to reduce the levels of waste 

disposed of into landfill. We continually review our waste 

and recycling services and facilities to ensure effectiveness, 

efficiencies and affordability. 

The Waste Management and Minimisation Plan outlines 

objectives that we will focus on over the next six years. 

Sometimes changes will be necessary (including potential 

contractor changes as these expire during the life of the Plan), 

but we will ensure that any such changes are consistent with 

the Plan’s objectives. Please refer to the full Plan on our website 

for further information. 

Under the Waste Minimisation 

Act (2008), all Councils 

are required to 

have a Waste 

Management 

and 

Minimisation Plan and meet a number of specific requirements 

including: 

• Having due regard for the waste hierarchy – reduce, reuse, 

recycle, recover, treatment and disposal. 

• Considering the findings and recommendations of our 

most recent waste assessment. 

We compiled our Waste Management and Minimisation Plan 

at a time when the management of waste and recycling in the 

district has undergone significant change, with the introduction 

of the combined model in early 2009 and subsequent contractual 

changes the following year. We are working towards the future 

with the planned construction of a new transfer station in 

Amberley, the reviewing of existing contractual arrangements 

and the need to improve efficiencies to ensure effective and 

affordable waste management and recycling services are 

provided at all times. 

Funding 

Dual 

Refuse and 

Recycling 

Collection 

Transfer 

Stations 

Some 

of the 


Council’s 

waste management and 

minimisation 

Glass Recycling 

Commercial 

Recycling and dry 

waste 

Recycling 

Bins 

266


The funding of our waste management and recycling services is 

achieved through: 

Activities 

• Targeted rates 

• Uniform Annual Charge 

• User charges 

• Waste levy reimbursement 

The Waste Management and Minimisation Plan outlines actions 

and activities that will be undertaken during the life of the plan 

to provide efficient, effective and affordable waste management 

and minimisation services. Many of the activities are business-asusual 

and some are new. Some of these are outlined here, but 

please refer to the full Plan on our website for more information. 

Key Issues and Challenges 

We face a number of ongoing waste management and 

minimisation issues and challenges, such as those listed below: 

• A low rating base which covers a wide 

geographical area 

• An increase in illegal dumping as landfill costs rise 

• Market uncertainty for recyclable materials 

• The impact of waste related legislation and policy 

Increased public awareness programmes including: 

• piloting a schools education programme 

• supporting the Paper 4 Trees school scheme 

• providing recycling public workshops 

• developing guidance material for the agriculture 

sector 

Working with Target Sustainability to undertake waste audits 

with local businesses 

• Evaluating the introduction of domestic kerbside 

glass collection in urban areas 

• Evaluating the possibility of introducing dual 

refuse/recycling collection in all urban areas 

• Considering the use of wheelie bins, plastic 

crates and plastic sacks 

• Considering the acceptance of commercial waste 

in the design of the new Amberley Transfer 

Station 

• Reviewing transfer station operating hours 

• Promoting home composting including 

investigating the possibility of providing subsidised 

compost bins 

• Considering trialling putrescible (food scraps etc) 

waste collection in Amberley or Hanmer Springs 

• Considering the advantages and disadvantages of 

using pre-paid bags for refuse 

• Licensing operators collecting or disposing of 

waste in the Hurunui district and advocating for 

regional/nationwide licensing requirements 

267


Hurunui Waiau Zone Implementation Programme 

Summary 

Since July 2010, the Hurunui Waiau Zone Committee, a joint 

committee of the Hurunui District Council and Environment 

Canterbury, has worked collaboratively and undertaken 

extensive consultation with, and received submissions from, 

Runanga, local communities, interested parties, industry groups, 

government and non-government organisations, scientists 

and advisory groups to develop the recommendations on 

water management presented in this Zone Implementation 

Programme (ZIP). 

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, hydropower 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. This 

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, recreational and cultural 

benefits from our water resources within an environmentally 

sustainable framework”. In accordance with the CWMS the 

Zone Committee has arrived at its recommendations through 

consensus. 

The ZIP is a suite of water-management recommendations to 

Environment Canterbury, Hurunui District Council, developers 

and other parties. It is not a statutory plan under the Resource 

Management Act (RMA). However, the Zone Committee 

expects the Hurunui Waiau Environmental Flow and Allocation 

Regional Plan (Hurunui Waiau Regional Plan) to give effect to the 

recommendations of the ZIP through an integrated approach to 

the development and management of the district’s freshwater 

resources. This ZIP represents a ‘snapshot’ of the position the 

Committee has reached with regard to recommendations after 

receiving and considering over 125 submissions to the Draft 

ZIP, together with feedback from meetings and communities of 

interest, including public meetings at Amberley, Omihi, Cheviot, 

Culverden, Hawarden, Hanmer Springs and Christchurch in 

total involving more than 300 people. 

The Zone Committee recognizes that the future social 

and economic prosperity of the zone is largely dependent 

on utilization of its water resources, for agricultural and 

horticultural development through the expansion of irrigation, 

and tourism activities. The Committee’s vision is that this 

can be achieved while maintaining, but striving to enhance, 

environmental outcomes in order to achieve a ‘net gain’ for the 

water resources and associated ecosystems as well as preserving 

cultural and recreational values. This will require effective and 

responsible economic and natural resource management of the 

land and rivers including the implementation of appropriate 

environmental flow regimes in the major rivers and their 4 

tributaries, the setting of nutrient load limits in catchments 

and the adoption of sustainable best practice audited self 

management programmes led by community/user-based land 

care groups and industry backed up by a regulatory framework. 

The key recommendations in the ZIP are: 

• Flow and allocation regimes must be set for the rivers 

and their tributaries to ensure the life supporting 

character of the rivers are maintained: 

• For Waiau River minimum flows can remain 

unchanged provided current water use remains 

unchanged and in-river values do not deteriorate; 

• For Hurunui River the Variation 8 minimum flows 

and A Block allocation are appropriate with minor 

changes. 

• Nutrient load limits must be set for the major rivers 

and their tributaries: 

• The water quality for Hurunui River at State 

Highway One should be at or about the same or 

better standard as present; 

• Current land users will need to improve nutrient 

management to allow new irrigation development to 

occur; 

• New irrigation development must have good nutrient 

management; 

• Implementing load limits should take a tributary- and 

land/water user-based approach. 

• More widespread monitoring of the major rivers and 

their tributaries and hapua needs to be established to 

ensure water quality standards are being achieved. 

• Implementation of sustainable best practice audited self 

management programmes, particularly for water quality, 

led by community/land user based land care groups 

and industry is essential (and has commenced) and be 

backed up by a regulatory framework. 

• Provision of ‘more water’ for irrigation and 

268


augmentation of river flows (in Waipara River), 

preferably with associated hydropower development, 

but not for hydropower development on its own, will 

come from an integrated use of run-of-river takes and 

off-mainstem storage: 

• The Waitohi River catchment is the preferred location 

for major water storage in Hurunui catchment; 

• Water storage options in Lake Sumner or the Hurunui 

South Branch should be deferred until a Waitohi storage 

option has been determined to not be viable or for two 

years, whichever is shorter; 

• Isolated Hill appears to be one of the few viable options 

for off-river major water storage in Waiau River and is 

supported by the Zone Committee. 

• Immediate Steps Biodiversity funding over the next 

four years will be used in a more strategic manner 

for projects that optimize freshwater biodiversity 

outcomes and community involvement. Five priority 

areas are being considered: 

• North Pegasus Bay coastal wetlands; 

• Lower Waitohi wetlands; 

• Conway Flat to Waiau River mouth; 

• Braided River ecosystems; 

• Sumner lakes complex. 

Included in the appendices of this ZIP is an assessment of its 

coverage of the CWMS Targets and Goals and a list of the 

reports and presentations that have been provided to the Zone 

Committee. The full Hurunui Waiau Zone Implementation 

Programme is on our website. 

269


Water and Sanitary Services Assessment Summary 

Introduction 

We have a statutory responsibility to carry out Water and 

Sanitary Assessments under Sections 124-129 of the Local 

Government Act [2002]. The first assessments were completed 

in November 2004. This set of Assessments updates the 5 

year period from December 2004 – May 2010. Some original 

Council managed water and wastewater networks assessments 

remain current in that no changes of material significance have 

occurred. 

Scope of the Assessment 

Given our resources available, updated assessments have only 

been prepared for water supply networks that fit in with the 

following criteria. Networks are then grouped into three 

categories, with regard to how they are affected by the criteria. 

All wastewater network assessments have been completed. The 

criteria includes water supply networks that have: 

• Undergone considerable growth or change of use 

• Incorporated upgrades to supply, treatment disposal or 

have new works 

• Recently been topical in the public arena or are 

politically sensitive 

• Transgressed significantly in public health or 

environmental impact 

• New and not covered by the original assessment 

• Become subject to new legislation or notably different 

consent conditions 

Group 1 

Water networks having significant capital work/alteration 

completed or pending that markedly improve network 

capacity, performance, service levels or resource consent 

compliance and are shown as full updates. 

Presented as full updates covering all matters not detailed 

in the original assessments 

1. Ashley Main Intake 

• new intake bores, relocation of treatment 

2. Ashley North Area 

• new deep bores and water allocation 

3. Amberley Urban Water 

• new water sources 

4. Hanmer Springs Water 

• new water treatment & reservoirs 

5. Cheviot Main Intake 

• new water treatment 

6. Cheviot Urban Area 

• new wastewater consent 

7. Culverden Water 

• new bore & reservoir considerations 

Group 2 

Water networks affected by current/anticipated 

issues or may warrant some improvement/require 

works and are shown as brief summaries. 

1. Leithfield Beach Water 

• bore corrosion and water quality deterioration 

2. Waiau Urban Water 

• treatment deficiencies & asbestos reservoir roof 

3. Upper Waitohi Water 

• supply reliability and consumer expectations 

Group 3 

Water networks that have experienced nil or little change 

in demand or operational aspects over the past 5 years or 

where consumers are not demanding treatment/disposal 

or water source improvements, so are therefore not 

included in the June 2010 assessment update. 

Water: 

1. Hurunui Main (Hurunui) 

2. Lower Waitohi (Hurunui) 

3. Peaks (Hurunui) 

4. Kaiwara (Cheviot) 

5. Parnassus (Cheviot) 

6. Blythe (Cheviot) 

7. Balmoral (treated with chlorine) 

8. Amuri Plains (treated with uV) 

9. Waiau Rural 

10. Hawarden-Waikari (treated with uV chlorine back-up) 

This approach is considered appropriate with how the LG Act 

[2002] is interpreted. It is also considered that the required 

Public Health Risk Management Plans [PHRMP] being very 

similar in purpose and content, would be better integrated 

with future assessments to minimize duplication of effort and 

reporting. 

As the Assessments and PHRMP documents are key reports on 

activities, they sit well with our obligations to maintain Activity 

270


Management Plans (AMP), and so the Utilities section will be 

incorporating these as part of our network AMP codicils. This 

approach is consistent with what other territorial authorities 

are doing and is consistent with Audit NZ and Ministry of 

Health’s expectations. 

Few of our water networks comply with the source or 

treatment criteria under the Drinking Water Standards New 

Zealand [2005]. Of the 25 intakes, 4 have basic uV treatment 

(but are not considered by DWSNZ [2005] as fully effective), 

One has advanced uV and six utilize chlorine. Five intakes treat 

to correct aesthetic faults. One intake provides for filtration of 

suspended solids. 

Some communities have further sought and/or secured 

improvements in the quality and quantity of their water (Cheviot 

Urban area, Ashley Main Intake, North Ashley area, Amberley, 

Culverden and Hanmer Springs). 

There are seven public wastewater facilities in the district, all are 

currently consented and perform reasonably well. Hanmer and 

Amberley have undergone significant upgrading for discharge 

quality and consent compliance. 

We are committed to managing and maintaining public water 

and wastewater services. Asset Management Plans for water 

and wastewater have been updated (2009/10) with an emphasis 

on meeting “core” levels of management. 

Future growth and renewal considerations will continue to be 

identified by the utilities section and in response to consumer 

demand and will be presented in each Long Term Plan process 

and updated or highlighted in intervening Annual Plans. 

Information on funding, consumer information and assets can 

be found in the Asset Management Plan/Codicils and is not 

repeated in these updates. 

The full Water and Sanitary Services Assessment is available on 

our website. 

271


Levels of Service Water and Sewer 

Network 

Water Source and 

Treatment 

Amberley Deep bore in daily use 

all year. 

No treatment but 

looking to prove secure 

groundwater status. 

Low supply outage risk 

Leithfield Beach Deep bore only. No 

water treatment 

Moderate risk for 

outage 

Culverden Deep bore with 

shallow bore back-up 

and chlorine (if needed 

for shallow bore). Low 

risk of supply outage 

Waiau Shallow river bore with 

two pumps. uV with 

chlorine introduced 

when turbidity climbs 

Moderate risk 

Waipara Two moderate depth 

bores with the older 

as back-up. No water 

treatment. Moderate 

risk of supply outage 

Hanmer Springs River intake. Low risk 

due to open reservoir 

storage. Settling pond, 

dose aided filtration, uV 

& chlorine back-up 

Hawarden 

Waikari 

Moderate depth river 

bore with shallow 

gallery back-up. Low 

risk 

LEVELS OF SERVICE – ON-DEMAND (URBAN) WATER NETWORKS – February 2011 

Management Documents and Service 

Storage Based on 

Demand 

Hydraulic 

Performance 

DWSNZ Grading 

Warnings and 

Compliance 

Fire Fightiing Continuity of Supply 

Asset Management Plan in place 

Approved PHRMP. 

Water Assessments done 

Terms & Conditions Contract 

Dedicated operator for network with full back-up 

resources 

All hours phone access for faults 

Volume - 816m3 

% average - 26hrs 

% peak - 10hrs 

Min flow - 15l/min 

Min press . 200kpa 

Max press - 650kpa 

Sources - U 

Reticulation - u 

Warnings by phone, 

mail out and local 

advertising 

Compliance - No 

U/G hydrants 

Meets minimum stds of 

12.5l/s @250kpa - Yes 

Back up generator 

Max planned outage 4 hrs. Supply 

active for 98.5% of year, excl 

disasters and CD emergencies. 


No PHRMP. 




resources 




% peak - 4.5hrs 




Source - U 




advertising 

Compliance - Yes 

U/G hydrants 


12.5l/s @250kpa - needs 

testing 






No PHRMP. 




resources 



Approved PHRMP. 




resources 



PHRMP requires update. 




resources 







resources 



PHRMP drafted. 




resources 


Volume - 90m3 

% average - 6.5hrs 

% peak - 3hrs 




Volume - 92m3 


% peak - 8hrs 

Volume - 92m3 


% peak - 8hrs 

Volume - 35m3 


















Source - U 




advertising 


(Ecoli) 

Source - U 




advertising 


Source - E 

Reticulation - e 



advertising 


Source - U 




advertising 


Source - U 




advertising 


(Ecoli) 

U/G hydrants 


12.5l/s @250kpa - Yes 

U/G hydrants 



testing 

U/G hydrants 



testing 

U/G hydrants 


12.5l/s @250kpa - Yes 

U/G hydrants 

Meets minimum stds 

of 12.5l/s @250kpa - 

needs testing 











Gravity plus back-up diesel pump. 




Connection for portable 

generator. Max planned outage 

4 hrs. Supply active for 98.5% 

of year, excl disasters and CD 

emergencies. 

272


Network 

Water Source and 

Treatment 

Ashley Shallow bore field Main 

Intake. 

Deep bore Racecourse 

Rd. Deep bores Kowai 

& Smiths Road (both 

mothballed). 

uV at Main Intake. Ion 

exchange Kowai & 

Smiths. Sand filtration 

Kowai 

Waiau Shallow river bore. No 

water treatment 

Amuri Plains Shallow river plain bore 

with uV disinfection 

Balmoral Stream weir and river 

gallery back-up with 

chlorine on both 

sources 

Cheviot Shallow river plain 

bores (3). No water 

treatment 

Hurunui Gallery on #1 & Upper 

Waitohi. Shallow bores 

on Lower Waitohi & 

Peaks. Chlorine on 

Upper Waitohi. None 

elsewhere 

LEVELS OF SERVICE – RESTRICTED (RURAL) WATER NETWORKS – February 2011 

Management Documents and Service 

Storage Based on 

Demand 

Hydraulic 

Performance 

DWSNZ Grading 

Warnings and 

Compliance 

Fire Fightiing Continuity of Supply 






resources 


3 days min at 

contracted rate of 

supply 

1800l/day units with 

minimum supply 

pressure of 200kpa 

Source - U 

Zone - u 



advertising 


U/G hydrants in some 

urban areas. Remainder o/ 

head fillers 

4 hours planned and up to 12 

unplanned repairs. Emergencies 

not included 


No PHRMP. 




resources 


3 days min at 


supply 




Source - U 

Zone - u 



advertising 


O/head fillers 6 hours planned and up to 12 


not included 


No PHRMP. 




resources 


3 days min at 


supply 




Source - U 

Zone - u 



advertising 




not included 


No PHRMP. 




resources 


3 days min at 


supply 




Source - U 

Zone - u 



advertising 




not included 


Draft PHRMP. 




resources 


3 days min at 


supply 




Source - E 

Zone - e 



advertising 


(Ecoli) 

Hydrants in Cheviot town 

otherwise o/head fillers 

6 hours planned and up to 12 


not included 


No PHRMP. 




resources 


3 days min at 


supply 




Source - U 

Zone - u 



advertising 




not included 

273


LEVELS OF SERVICE – WASTE WATER NETWORKS – February 2011 

Network Collection Management Documents and Service Council Responsibility 

Limits on Domestic 

or Trade Discharges 

Amberley Gravity reticulation in 

Amberley and gravity 

collection then pumped 

from all other areas 





resources 


Cheviot Gravity to main Asset Management Plan in place 

lift pump prior to Water Assessments done 

treatment pond 



resources 


Greta Valley Gravity Asset Management Plan in place 

Motunau Beach Gravity to pump 

stations 

Hanmer Springs Gravity with some 

private pumped lines 

feeding in 

Hawarden Gravity to main pump 

station 

Waikari Gravity to main pump 

station 




resources 






resources 






resources 






resources 






resources 


To consumers 

property boundary. 

Consumer responsible 

for line up-flow of 

property boundary 

To consumers 





To consumers 





To consumers 





To consumers 





To consumers 





To consumers 





Domestic - 2000l/ 

day at a maximum 

rate of 2 l/sec 

Commercial - as 

agreed Trade/ 

Industry - as 

agreed 





agreed Trade/ 

Industry - as 

agreed 





agreed Trade/ 

Industry - as 

agreed 





agreed Trade/ 

Industry - as 

agreed 





agreed Trade/ 

Industry - as 

agreed 





agreed Trade/ 

Industry - as 

agreed 





agreed Trade/ 

Industry - as 

agreed 

Continuity of 

Collection 

4 hours planned 

notice given 

ahead of time. 

Emergencies 

excluded 


notice given 


Emergencies 

excluded 


notice given 


Emergencies 

excluded 


notice given 


Emergencies 

excluded 


notice given 


Emergencies 

excluded 


notice given 


Emergencies 

excluded 


notice given 


Emergencies 

excluded 

274


Rates: Sample Properties 



Amberley Water (x 209 units) 

Amberley Water (x 238 units) 

1 x Fixed Charges 1 x Fixed Charges 

Capital Value: $255,000 Capital Value: $520,000 

Actual Rates for Proposed Rates for Indicative Rates for Indicative Rates for Actual Rates for Proposed Rates for Indicative Rates for Indicative Rates for 

2011/2012 2012/2013 2013/2014 2014/2015 2011/2012 2012/2013 2013/2014 2014/2015 

General Rates 

General Rates & UAGC 44.39 58.94 74.96 76.69 53.03 73.42 93.15 97.27 

Roading 159.55 158.00 164.36 173.84 325.36 322.19 335.16 354.50 

Governance 86.61 96.88 102.53 113.06 113.12 126.51 133.88 147.63 

Planning 45.29 51.26 53.30 54.53 92.35 104.53 108.69 111.20 

Waste Management 120.55 120.52 123.08 125.87 120.55 120.52 123.08 125.87 

Canterbury Museum 8.13 8.49 9.24 10.53 8.13 8.49 9.24 10.53 

464.53 494.09 527.47 554.52 712.54 755.65 803.20 847.00 

Amenities Rates 

Capital Value 63.52 66.70 70.03 73.53 129.53 136.01 142.81 149.95 

Uniform Annual Charges 145.56 152.84 160.48 168.50 145.56 152.84 160.48 168.50 

209.08 219.53 230.51 242.04 275.09 288.85 303.29 318.45 

Utilities Rates 

Water 249.97 268.97 289.41 311.40 267.89 288.25 310.16 333.73 

Water Compliance - Miox Treatment - - - - - - - - 

Sewer 144.95 170.32 200.12 235.14 144.95 170.32 200.12 235.14 

Drainage/Protection 108.77 108.77 108.77 108.77 108.77 108.77 108.77 108.77 

503.69 548.05 598.30 655.32 521.61 567.34 619.05 677.65 

Other Rates 

Refuse Collection 260.00 260.00 260.00 260.00 260.00 260.00 260.00 260.00 

Swimming Pool Inspection - - - - - - - - 

Rural Fire 9.03 9.39 9.76 10.15 18.41 19.14 19.91 20.71 

Medical Centres - - - - - - - - 

Tourism - - - - - - - - 

Amberley Library Rate 18.14 18.14 18.14 4.88 18.14 18.14 18.14 4.88 

287.17 287.53 287.90 275.03 296.55 297.28 298.05 285.58 

TOTAL $ 1,464.46 $ 1,549.20 $ 1,644.19 $ 1,726.91 $ 1,805.80 $ 1,909.12 $ 2,023.60 $ 2,128.68 

Increase ($) 84.74 94.98 82.72 Increase ($) 103.33 114.47 105.09 

Increase (%) 5.79% 6.13% 5.03% Increase (%) 5.72% 6.00% 5.19% 


Amberley Beach Township 

Amberley Rural 

Ashley Water (x 0.5 points) 

Ashley Water (x 1 point) 


Capital Value: $175,000 Capital Value: $2,400,000 

General Rates 

General Rates & UAGC 

Roading 

Governance 

Planning 





41.79 54.57 69.47 70.48 78.24 131.13 164.75 186.36 

109.50 108.43 112.79 119.30 1,501.68 1,487.03 1,546.90 1,636.15 

78.61 87.94 93.06 102.63 240.02 268.29 283.93 313.10 

31.08 35.18 36.58 37.42 426.24 482.43 501.64 513.24 

120.55 120.52 123.08 125.87 - - - - 

8.13 8.49 9.24 10.53 - - - - 

389.65 415.12 444.23 466.23 2,246.18 2,368.89 2,497.23 2,648.86 


Capital Value 

Uniform Annual Charges 

43.59 45.77 48.06 50.46 132.00 138.60 145.53 152.81 

145.56 152.84 160.48 168.50 - - - - 

189.15 198.61 208.54 218.97 132.00 138.60 145.53 152.81 


Water 

Water Compliance - Miox Treatment 

Sewer 

Drainage/Protection 

283.50 294.84 306.63 318.90 567.00 589.68 613.27 637.80 

- - - - - - - - 

144.95 170.32 200.12 235.14 - - - - 

283.77 283.77 283.77 283.77 - - - - 

712.22 748.93 790.53 837.81 567.00 589.68 613.27 637.80 

Other Rates 

Refuse Collection 

Swimming Pool Inspection 

Rural Fire 


Tourism 

Amberley Library Rate 

TOTAL 

260.00 260.00 260.00 260.00 - - - - 

- - - - - - - - 

6.20 6.44 6.70 6.97 201.12 209.16 217.53 226.23 

- - - - - - - - 

- - - - - - - - 

18.14 18.14 18.14 4.88 - - - - 

284.34 284.58 284.84 271.84 201.12 209.16 217.53 226.23 

$ 1,575.36 $ 1,647.24 $ 1,728.13 $ 1,794.85 $ 3,146.30 $ 3,306.33 $ 3,473.56 $ 3,665.69 




275


Leithfield Township 


Ashley Water (x 0.5 point) 

Leithfield Beach Water (x 1 unit) 



General Rates 


Roading 

Governance 






42.76 56.21 71.53 72.81 41.95 54.84 69.81 70.87 

128.27 127.02 132.13 139.75 112.63 111.53 116.02 122.71 

81.61 91.29 96.61 106.54 79.11 88.50 93.66 103.28 

36.41 41.21 42.85 43.84 31.97 36.18 37.62 38.49 

120.55 120.52 123.08 125.87 120.55 120.52 123.08 125.87 

8.13 8.49 9.24 10.53 8.13 8.49 9.24 10.53 

417.73 444.73 475.44 499.34 394.33 420.06 449.43 471.75 


Capital Value 


51.07 53.62 56.30 59.11 44.84 47.08 49.43 51.91 

145.56 152.84 160.48 168.50 145.56 152.84 160.48 168.50 

196.63 206.46 216.78 227.62 190.40 199.92 209.91 220.41 


Water 


Sewer 


283.50 294.84 306.63 318.90 205.30 222.24 240.57 260.42 

- - - - - - - - 

144.95 170.32 200.12 235.14 144.95 170.32 200.12 235.14 

- - - - - - - - 

428.45 465.16 506.76 554.04 350.25 392.55 440.69 495.56 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

260.00 260.00 260.00 260.00 260.00 260.00 260.00 260.00 

- - - - - - - - 

17.18 17.87 18.58 19.32 6.37 6.63 6.89 7.17 

- - - - - - - - 

- - - - - - - - 

18.14 18.14 18.14 4.88 18.14 18.14 18.14 4.88 

295.32 296.01 296.72 284.20 284.51 284.77 285.03 272.04 

$ 1,338.13 $ 1,412.35 $ 1,495.70 $ 1,565.20 $ 1,219.49 $ 1,297.30 $ 1,385.07 $ 1,459.76 




Waiau Township 

Rotherham Township 

Waiau Township Water (x 147 units) 

No Water 



General Rates 


Roading 

Governance 






42.60 55.93 71.19 72.42 44.88 59.76 75.99 77.85 

125.14 123.92 128.91 136.35 168.94 167.29 174.03 184.07 

81.11 90.73 96.02 105.89 88.11 98.56 104.30 115.02 

35.52 40.20 41.80 42.77 47.95 54.27 56.43 57.74 

120.55 120.52 123.08 125.87 120.55 120.52 123.08 125.87 

8.13 8.49 9.24 10.53 8.13 8.49 9.24 10.53 

413.05 439.80 470.24 493.82 478.57 508.89 543.08 571.08 


Capital Value 


110.72 110.72 114.04 117.46 149.47 149.47 153.96 158.57 

136.03 136.03 140.11 144.31 136.03 136.03 140.11 144.31 

246.75 246.75 254.15 261.78 285.50 285.50 294.07 302.89 


Water 


Sewer 


247.21 257.10 267.39 278.08 - - - - 

- - - - - - - - 

- - - - - - - - 

- - - - - - - - 

247.21 257.10 267.39 278.08 - - - - 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

260.00 260.00 260.00 260.00 260.00 260.00 260.00 260.00 

- - - - - - - - 

7.08 7.36 7.66 7.96 - - - - 

101.30 101.30 101.30 101.30 101.30 101.30 101.30 101.30 

- - - - - - - - 

- - - - - - - - 

368.38 368.66 368.96 369.26 361.30 361.30 361.30 361.30 

$ 1,275.40 $ 1,312.31 $ 1,360.74 $ 1,402.94 $ 1,125.37 $ 1,155.69 $ 1,198.44 $ 1,235.27 




276


Culverden Township 

Amuri Rural 

Culverden Township Water (x 322 units) 

Waiau Rural Water (x 8 points) 



General Rates 


Roading 

Governance 






43.09 56.75 72.22 73.58 108.29 166.03 209.51 228.89 

134.53 133.21 138.58 146.57 1,385.93 1,372.41 1,427.66 1,510.03 

82.61 92.41 97.80 107.84 282.63 315.99 334.40 368.76 

38.18 43.22 44.94 45.98 393.38 445.24 462.98 473.68 

120.55 120.52 123.08 125.87 120.55 120.52 123.08 125.87 

8.13 8.49 9.24 10.53 8.13 8.49 9.24 10.53 

427.09 454.61 485.85 510.38 2,298.91 2,428.68 2,566.87 2,717.76 


Capital Value 


119.02 119.02 122.59 126.27 33.45 33.45 34.45 35.48 

136.03 136.03 140.11 144.31 136.03 136.03 140.11 144.31 

255.05 255.05 262.71 270.59 169.48 169.48 174.56 179.80 


Water 


Sewer 


364.89 380.40 396.56 413.42 5,328.00 5,541.12 5,762.76 5,993.28 

- - - - - - - - 

- - - - - - - - 

- - - - - - - - 

364.89 380.40 396.56 413.42 5,328.00 5,541.12 5,762.76 5,993.28 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

260.00 260.00 260.00 260.00 - - - - 

- - - - - - - - 

7.61 7.92 8.23 8.56 185.62 193.04 200.76 208.79 

101.30 101.30 101.30 101.30 101.30 101.30 101.30 101.30 

- - - - - - - - 

- - - - - - - - 

368.91 369.22 369.53 369.86 286.92 294.34 302.06 310.09 

$ 1,415.94 $ 1,459.27 $ 1,514.65 $ 1,564.24 $ 8,083.30 $ 8,433.62 $ 8,806.26 $ 9,200.92 




Amuri Rural 

Cheviot Township 

Amuri Plains Water (x 7 points) 

Cheviot Water (x 0.5 point) 


Capital Value: $7,725,000 Capital Value: $170,000 

General Rates 


Roading 

Governance 






396.16 602.10 760.13 827.41 41.62 54.29 69.13 70.09 

4,833.53 4,786.39 4,979.09 5,266.37 106.37 105.33 109.57 115.89 

1,017.02 1,137.08 1,203.34 1,326.98 78.11 87.38 92.47 101.97 

1,371.96 1,552.82 1,614.66 1,651.98 30.19 34.17 35.53 36.35 

482.20 482.08 492.30 503.49 120.55 120.52 123.08 125.87 

32.52 33.95 36.98 42.10 8.13 8.49 9.24 10.53 

8,133.38 8,594.43 9,086.50 9,618.34 384.97 410.19 439.03 460.71 


Capital Value 


116.65 116.65 120.15 123.75 68.78 68.78 70.85 72.97 

544.12 544.12 560.44 577.26 81.06 81.06 83.49 86.00 

660.77 660.77 680.59 701.01 149.84 149.84 154.34 158.97 


Water 


Sewer 


1,298.50 1,350.44 1,404.46 1,460.64 360.65 411.14 431.70 453.28 

- - - - - 37.95 75.90 115.00 

- - - - 324.07 340.27 357.29 375.15 

- - - - 2.34 2.34 2.34 2.34 

1,298.50 1,350.44 1,404.46 1,460.64 687.06 791.70 867.23 945.77 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

- - - - 260.00 260.00 260.00 260.00 

77.09 98.76 101.85 104.95 - - - - 

647.36 673.25 700.18 728.19 6.02 6.26 6.51 6.77 

405.20 405.20 405.20 405.20 24.93 45.00 45.00 45.00 

- - - - - - - - 

- - - - - - - - 

1,129.65 1,177.21 1,207.23 1,238.34 290.95 311.26 311.51 311.77 

$ 11,222.30 $ 11,782.84 $ 12,378.78 $ 13,018.32 $ 1,512.82 $ 1,662.99 $ 1,772.10 $ 1,877.22 




277


Cheviot Rural 

Motunau Beach 

Cheviot Water (x 2.5 points) 

Hurunui Rural Water (x 0.5 point) 



General Rates 


Roading 

Governance 






138.18 200.65 253.92 271.02 48.79 66.32 84.23 87.17 

1,267.04 1,254.69 1,305.20 1,380.51 244.02 241.64 251.37 265.88 

324.74 363.13 384.29 423.77 100.11 111.97 118.50 130.67 

359.64 407.05 423.26 433.04 69.26 78.39 81.52 83.40 

241.10 241.04 246.15 251.74 120.55 120.52 123.08 125.87 

16.26 16.98 18.49 21.05 8.13 8.49 9.24 10.53 

2,346.96 2,483.53 2,631.31 2,781.14 590.87 627.34 667.94 703.52 


Capital Value 


56.50 56.50 58.19 59.94 - - - - 

162.12 162.12 166.98 171.99 97.73 97.73 97.73 97.73 

218.62 218.62 225.18 231.93 97.73 97.73 97.73 97.73 


Water 


Sewer 


1,440.13 1,641.74 1,723.83 1,810.02 312.50 353.13 369.53 386.76 

- 75.90 151.80 230.00 - 37.95 75.90 115.00 

- - - - 192.43 201.57 211.15 221.17 

- - - - - - - - 

1,440.13 1,717.64 1,875.63 2,040.02 504.93 592.65 656.58 722.93 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

- - - - 260.00 260.00 260.00 260.00 

- - - - - - - - 

169.70 176.48 183.54 190.88 13.81 14.36 14.93 15.53 

49.86 90.00 90.00 90.00 - - - - 

- - - - - - - - 

- - - - - - - - 

219.56 266.48 273.54 280.88 273.81 274.36 274.93 275.53 

$ 4,225.26 $ 4,686.27 $ 5,005.66 $ 5,333.97 $ 1,467.34 $ 1,592.07 $ 1,697.18 $ 1,799.71 




Waipara Township 

Glenmark Rural 

Waipara Water (x 66 units) 

Hurunui Rural Water (x 7 points) 



General Rates 


Roading 

Governance 






43.25 57.03 72.56 73.97 134.10 193.82 245.34 261.32 

137.65 136.31 141.80 149.98 1,188.83 1,177.24 1,224.63 1,295.29 

83.11 92.97 98.39 108.50 312.24 349.15 369.50 407.46 

39.07 44.22 45.98 47.05 337.44 381.92 397.13 406.31 

120.55 120.52 123.08 125.87 241.10 241.04 246.15 251.74 

8.13 8.49 9.24 10.53 16.26 16.98 18.49 21.05 

431.77 459.54 491.05 515.89 2,229.97 2,360.16 2,501.25 2,643.18 


Capital Value 


- - - - - - - - 

97.73 97.73 97.73 97.73 195.46 195.46 195.46 195.46 

97.73 97.73 97.73 97.73 195.46 195.46 195.46 195.46 


Water 


Sewer 


111.19 111.19 111.19 111.19 4,375.00 4,943.75 5,173.44 5,414.61 

- 37.95 75.90 115.00 - 75.90 151.80 230.00 

- - - - - - - - 

- - - - - - - - 

111.19 149.14 187.09 226.19 4,375.00 5,019.65 5,325.24 5,644.61 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

260.00 260.00 260.00 260.00 - - - - 

- - - - - - - - 

7.79 8.10 8.42 8.76 159.22 165.59 172.21 179.10 

- - - - - - - - 

- - - - - - - - 

- - - - - - - - 

267.79 268.10 268.42 268.76 159.22 165.59 172.21 179.10 

$ 908.48 $ 974.51 $ 1,044.29 $ 1,108.57 $ 6,959.65 $ 7,740.85 $ 8,194.16 $ 8,662.35 




278




Hanmer Springs Water (x 216 units) 

Hanmer Springs Water (x 27 units) 

1 x Fixed Charges & Tourism 1 x Fixed Charges 


General Rates 


Roading 

Governance 






49.28 67.13 85.26 88.34 50.10 68.50 86.98 90.28 

253.41 250.94 261.04 276.10 269.05 266.43 277.15 293.14 

101.61 113.65 120.27 132.63 104.11 116.45 123.23 135.89 

71.93 81.41 84.65 86.61 76.37 86.44 89.88 91.95 

120.55 120.52 123.08 125.87 120.55 120.52 123.08 125.87 

8.13 8.49 9.24 10.53 8.13 8.49 9.24 10.53 

604.91 642.14 683.55 720.08 628.31 666.82 709.56 747.67 


Capital Value 


142.48 142.48 146.75 151.16 151.27 151.27 155.81 160.49 

206.11 206.11 212.29 218.66 206.11 206.11 212.29 218.66 

348.59 348.59 359.05 369.82 357.38 357.38 368.11 379.15 


Water 


Sewer 


307.39 319.69 332.47 345.77 193.87 201.62 209.69 218.07 

- - - - - - - - 

151.48 168.14 186.64 207.17 151.48 168.14 186.64 207.17 

- - - - - - - - 

458.87 487.83 519.11 552.94 345.35 369.77 396.33 425.24 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

260.00 260.00 260.00 260.00 260.00 260.00 260.00 260.00 

- - - - - - - - 

14.34 14.91 15.51 16.13 15.22 15.83 16.46 17.12 

19.91 19.91 19.91 19.91 19.91 19.91 19.91 19.91 

355.00 369.20 383.97 399.33 - - - - 

- - - - - - - - 

649.25 664.02 679.38 695.36 295.13 295.74 296.37 297.03 

$ 2,061.62 $ 2,142.58 $ 2,241.09 $ 2,338.20 $ 1,626.17 $ 1,689.71 $ 1,770.36 $ 1,849.09 



9 a.m. 


Hanmer Springs Rural 

Hawarden Township 

No Water 

Hawarden-Waikari Water (x 292 units) 



General Rates 


Roading 

Governance 






144.48 226.68 285.71 315.08 40.58 52.55 66.93 67.60 

2,080.45 2,060.16 2,143.10 2,266.76 86.35 85.50 88.95 94.08 

393.64 440.08 465.72 513.57 74.91 83.80 88.69 97.80 

590.52 668.37 694.99 711.05 24.51 27.74 28.84 29.51 

120.55 120.52 123.08 125.87 120.55 120.52 123.08 125.87 

8.13 8.49 9.24 10.53 8.13 8.49 9.24 10.53 

3,337.77 3,524.29 3,721.84 3,942.85 355.03 378.60 405.73 425.39 


Capital Value 


424.60 424.60 437.34 450.46 72.44 72.44 75.33 78.35 

206.11 206.11 212.29 218.66 68.51 68.51 71.25 74.10 

630.71 630.71 649.63 669.12 140.95 140.95 146.58 152.45 


Water 


Sewer 


- - - - 234.40 243.77 253.52 263.66 

- - - - - - - - 

- - - - 348.97 358.57 368.43 378.56 

- - - - - - - - 

- - - - 583.37 602.34 621.95 642.22 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

- - - - 260.00 260.00 260.00 260.00 

- - - - - - - - 

278.64 289.78 301.37 313.43 4.89 5.08 5.28 5.50 

19.91 19.91 19.91 19.91 18.68 18.68 18.68 18.68 

- - - - - - - - 

- - - - - - - - 

298.55 309.69 321.28 333.34 283.57 283.76 283.96 284.18 

$ 4,267.03 $ 4,464.69 $ 4,692.75 $ 4,945.31 $ 1,362.90 $ 1,405.65 $ 1,458.23 $ 1,504.24 



9 a.m. 


279


Waikari Township 


Hawarden-Waikari Water (x 694 units) 

Hurunui Water (x 2 points) 



General Rates 


Roading 

Governance 






41.79 54.57 69.47 70.48 148.06 232.69 293.26 323.62 

109.50 108.43 112.79 119.30 2,149.28 2,128.32 2,214.00 2,341.75 

78.61 87.94 93.06 102.63 404.64 452.37 478.74 527.92 

31.08 35.18 36.58 37.42 610.06 690.48 717.98 734.57 

120.55 120.52 123.08 125.87 120.55 120.52 123.08 125.87 

8.13 8.49 9.24 10.53 8.13 8.49 9.24 10.53 

389.65 415.12 444.23 466.23 3,440.72 3,632.86 3,836.30 4,064.26 


Capital Value 


91.86 91.86 95.53 99.35 439.68 439.68 457.27 475.56 

68.51 68.51 71.25 74.10 68.51 68.51 71.25 74.10 

160.37 160.37 166.78 173.45 508.19 508.19 528.52 549.66 


Water 


Sewer 


381.72 396.98 412.86 429.38 1,250.00 1,412.50 1,478.13 1,547.03 

- - - - - 75.90 151.80 230.00 

502.28 522.37 543.27 565.00 - - - - 

- - - - - - - - 

884.00 919.36 956.13 994.38 1,250.00 1,488.40 1,629.93 1,777.03 

Other Rates 



Rural Fire 


Tourism 


TOTAL 

260.00 260.00 260.00 260.00 - - - - 

- - - - - - - - 

6.20 6.44 6.70 6.97 121.60 126.46 131.52 136.78 

18.68 18.68 18.68 18.68 18.68 18.68 18.68 18.68 

- - - - - - - - 

- - - - - - - - 

284.88 285.12 285.38 285.65 140.28 145.14 150.20 155.46 

$ 1,718.89 $ 1,779.97 $ 1,852.52 $ 1,919.71 $ 5,339.19 $ 5,774.60 $ 6,144.94 $ 6,546.41 




280

Independent Auditor’s Report 


Independent Auditor’s Report 

To the readers of 

Hurunui District Council’s 

Long-Term Plan 

for the ten years commencing 1 July 2012 

The Auditor-General is the auditor of Hurunui District Council (the District Council). The 

Auditor-General has appointed me, Andy Burns, using the staff and resources of Audit 

New Zealand, to report on the Long Term Plan (LTP), on her behalf. We have audited the 

District Council’s LTP dated 28 June 2012 for the ten years commencing 1 July 2012. 

The Auditor-General is required by section 94(1) of the Local Government Act 2002 (the Act) 

to report on: 

 

 

the extent to which the LTP complies with the requirements of the Act; and 

the quality of information and assumptions underlying the forecast information 

provided in the LTP. 

Opinion 

Overall Opinion 

In our opinion the District Council’s LTP dated 28 June 2012 provides a reasonable basis 

for long term integrated decision-making by the District Council and for participation in 

decision-making by the public and subsequent accountability to the community about the 

activities of the District Council. 

In forming our overall opinion, we considered the specific matters outlined in section 94(1) of 

the Act which we report on as follows. 

Opinion on Specific Matters Required by the Act 

In our view: 

 

 

the District Council has complied with the requirements of the Act in all material 

respects demonstrating good practice for a council of its size and scale within the 

context of its environment; and 

the underlying information and assumptions used to prepare the LTP provide a 

reasonable and supportable basis for the preparation of the forecast information. 

Actual results are likely to be different from the forecast information since anticipated events 

frequently do not occur as expected and the variation may be material. Accordingly, we 

express no opinion as to whether the forecasts will be achieved. 

Our report was completed on 28 June 2012. This is the date at which our opinion is expressed. 

281


282

283 

Hurunui Community Long Term Plan 2012 - 2022


Phone: 03 314 8816 

Fax: 03 314 9181 

email: info@hurunui.govt.nz 

web: hurunui.govt.nz 

284

Phone: 03 314 8816 

Fax: 03 314 9181 

Email: info@hurunui.govt.nz 

Web: www.hurunui.govt.nz

Long Term Community Plan 2012-2022 - Hurunui District Council

Create successful ePaper yourself

Delete template?

Save as template?