Long Term Community Plan 2012-2022 - Hurunui District Council

Hurunui Community Long Term Plan 2012 - 2022
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.
Current Situation
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.
Plans for the future
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
Operational Costs:
• 100% usercharge as per the pools fee schedule.
Capital Costs:
• 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
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