DRAFT LTP book.indb - Hurunui District Council

Draft Hurunui Community Long Term Plan 2012 - 2022Activity 1: Hanmer Springs Thermal Pools and SpaOverviewThe Hanmer Springs Thermal Pools and Spa (HSTP&S) activityincludes the thermal pools, i-site, spa and café.Current SituationThe Hanmer Springs Thermal Pools and Spa (HSTP&S) is oneof New Zealand’s premier tourist attractions. Each year over500,000 customers visit the thermal pools to bathe in thewaters, enjoy the water activities and partake in massage andbeauty 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 thelast fi ve years the most recent being a $7.5m upgrade designedprimarily to give the pools a summer proposition which are thebusiest tourism months.the Café, reshaping the information centre and revitalising theaged hexagonal pools.The HSTP&S Management Committee plan to put forward aproposal to develop the Chisholm Ward on the Queen MaryHistoric 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 one ofseveral projects considered by Council and publicly consultedon before they proceed. There is no funding put aside for thispossible venture and at this stage, is only a concept.All of these projects are conceptual at this stage and will needfi nancial feasibility studies done, and then initial approval by theHSTPS Management Committee before fi nally being approvedby Council.FundingThe complex now consists of 17 thermal pools and associatedstreams, 6 private pools, 2 steam rooms, 2 sauna rooms, a 25meter freshwater pool with adjoining lazy river, a children’sactivity pool, a children’s aqua play area, a day Spa (The Spa atHanmer Springs), a Café (The Garden House Café) and an i-site.The four business units being the Pools, Spa, Café and InformationCentre have separate fi nancial reporting structures which areconsolidated into a combined profi t for HSTPS.HSTP&S is operated as a profi table business and fundsgenerated are used to augment the maintenance, developmentand promotion of the complex, with surpluses produced beingused to assist funding of other reserves in the district.We have a dedicated Council committee to oversee the runningof the complex called the HSTP&S Management Committee. Itattends to the long term direction and planning of the poolscomplex and surrounds. The Committee membership comprisesof some elected members of Council and the Hanmer SpringsCommunity Board and external representatives to representnot only the best interests of the thermal pools, but also thelocal Hanmer Springs people.Plans for the futureIn 2011 the HSTP&S Management Committee approved along term plan for continued upgrading and investment in thecomplex over the next 5 years. To continue to get good returnsfrom the pool and make sure it is a desirable asset into thefuture, the complex needs to maintain or improve its goodcondition to maintain its lead in the industry. Therefore, ongoingplanning, 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 forOperational Costs:• 100% usercharge as per the pools fee schedule.Capital Costs:• Replacement of existing assets is funded from theHanmer Springs Thermal Reserve surpluses.• Expenditure on new assets are generally fundedthrough an internal loan according to Council’s internalfi nancing policy.The Thermal Pools and Spa are funded 100% by user chargesand generate an annual surplus for Council. Major capital worksare funded through the Thermal Pools and Spa borrowing fromthe Council pursuant to the Council’s Internal Financing Policy.The interest rate set at 2.5% above the Council’s externalborrowing rateMinor capital works are funded through the Thermal Pools andSpa’s retained earnings. The additional interest derived from theinternal fi nancing to the Thermal Pools and Spa ($25,000 per $1million of borrowings) provides a good return for the Councilthat contributes toward lower rates.Use of income derived from the Thermal Pools and Spa:The Thermal Pools and Spa are situated on a Recreation Reservewhich has been vested in the Council under the Reserves Act1977. Pursuant to the Reserves Act, the Council is only ableto apply any surpluses derived from the Thermal Reserve toother reserves administered by the Council. The Councilactively uses these surpluses to fund the costs relating to otherDistrict Reserves, Cemeteries, Public Toilets, and as the DistrictLibrary has been built on a Reserve, the costs associated with139