DRAFT LTP book.indb - Hurunui District Council

Draft Hurunui Community Long Term Plan 2012 - 2022ServiceRelevant CommunityOutcomesRelevant Issues &ConstraintsWho benefi ts,and over whatperiodFuture Funding & SustainabilityWater SupplyTreatment andReticulation of Waterto the followingWater Supply areas:• Amberley• Leithfi eld Beach• Ashley Rural• Culverden• Waiau Town• Amuri Plains• Balmoral• Waiau Rural• Cheviot• Waipara• Hanmer Springs• Hawarden-Waikari• Hurunui RuralThe Council’s funding ofWater Supply servicescontributes to theHurunui district being:A desirable and safe placeto live:• We have attractive welldesigned townships• Communities haveaccess to adequatehealth and emergencyservices and systemsand resources areavailable to meet civildefence emergencies• Risks to public healthare identifi ed andappropriately managedA place with essentialinfrastructure:• We have a strongemphasis on servicedelivery acrossall infrastructureincluding roading,water (for drinking anddevelopment), wastewater, stormwater andsolid wasteRestricted supplyschemes are based onunmetered, restrictedsupply with a maximumsupply per dayirrespective of usage.Unrestricted schemesface a number of issues.There is a need to curbexcess water use. Inaddition, bach ownerswho use their beachesinfrequently, object topaying fees for a systemthat they say theyhardly use. However,the system was built tohandle the needs of allthe residents and if theysold to a permanentresident that personwould want a systemthat could meet theirneeds. The existenceof water supply to aproperty is refl ectedin the value of thatproperty.Accordingly, as allratepayers own anequal share in the watersupply system, all usersshould meet an equalcomponent of the fi xedcosts of the watersupply that was built tomeet their needs. Theyshould then pay theeconomic marginal costof any additional usage.Costs will be reallocatedacross usersand signifi cant change isexpected.100% privatebenefi t to users.Operational Costs:• Restricted Supply• As a local Uniform Annual Charge on water unitentitlement.Unrestricted Supply:• Fixed costs – As a local Uniform Annual Charge.Variable Costs :• As a set price based per cubic meter of water asrecorded by the individual water meters.Capital Costs:• Signifi cant Council capital expenditure should befunded by loan for the life of the investment; if loansare not raised then it will be treated as a fi xed costand funded from annual rates. If any of the CapitalExpenditure caters for future growth of the scheme,then that portion of the expenditure that relatesto growth may be funded from future users viaDevelopment Contributions.• Landowners with new connections will pay the cost ofconnecting to the nearest main plus, if a new subdivide,putting in the sub-main and any levies as specifi ed inthe Development Contributions policy.• Property owners wanting new connections will paythose costs necessary for the connection.Loan Repayments:• Signifi cant Council capital expenditure should befunded by loan for the life of the investment. Repaymentof the loan will be treated as a fi xed cost and will befunded from a local Uniform Annual Charge.Sustainability:• The ongoing negative effects on the economicwellbeing of those who pay for water supply serviceswill be offset by future gains in social, economic andenvironmental well- being.Increased Drinking Water Standards:• The increased requirements to meet desiredstandards for drinking water place an exceptional (ifnot unaffordable) burden on small water schemes.To fund the increased costs associated with meetingstandards and to avoid the exorbitant fi nes that will beimposed on small local authorities who cannot meetthese requirements, the Council is considering fundingall drinking water requirements form a General Rate,rather than placing that burden on a limited numberof ratepayers.231