Long Term Community Plan 2012-2022 - Hurunui District Council

www.hurunui.govt.nz
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).
Assumptions and Risks
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.
Council Owned Assets
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
Maintenances and Operating Implications
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.
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