Annual Plan 2013/14 - Palmerston North City Council

INTRODUCTIONThis Annual Plan was adopted by Council on 26 June 2013 inaccordance with the Local Government Act 2002.The Annual Plan states the Council’s intentions. It is based onthe Council’s best information and planning at the time it wasdeveloped. If circumstances change, the Council may have tochange its intentions. This is especially the case in light of currentuncertain economic conditions.All the decisions in this Plan are reviewable, especially duringfuture 10 Year Plans and Annual Plans.This is made clear in the Local Government Act 2002, Section 96:(1) The effect of a long-term plan and an annual planadopted by a local authority is to provide a formal andpublic statement of the local authority’s intentions inrelation to the matters covered by the plan.(2) A resolution to adopt a long-term plan or an annualplan does not constitute a decision to act on anyspecific matter included within the plan.(3) Subject to section 80, and except as provided insection 97, a local authority may make decisions thatare inconsistent with the contents of any long-termplan or annual plan.(4) No person is entitled to require a local authority toimplement the provisions of a long-term plan or anannual plan.Wetlands, Ashhurst Domain, Ashhurst2 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

INTRODUCTIONContentsContentsIntroductionHe Mihi 4A Message from TheMayor and Chief Executive 5Financial Strategy and Overview 7The Consultation Process 12What we Provide and What it Coststhe Average Residential Ratepayer 14Section 1 – Implementingthe 10 Year PlanThis shows what we’re planning to do, and how muchit is expected to cost to implement Year Two of the10 Year Plan. It also shows measurable descriptionsof the different services that the Council providesfor residents.Groups of Activities - Introduction 19Leadership Group 23Councillor Leadership and Decision Making 23Direction Setting 24Community Support Group 26Cemeteries 26Civil Defence 28Community Development 29Housing 31Work and City Promotion Group 33Leisure Group 35Arts and Culture 35City Library 37Parks and Recreation 39Regulatory Group 43Roading and Parking Group 45Rubbish and Recycling Group 49Stormwater Group 51Wastewater Group 53Water Group 56Support Services Group 59Commercial or Strategic Investments 59Corporate Support 62Customer Services 64Section 2 – Financial andRating InformationHere you can see what assumptions have been madein preparing the financial information. You’ll also seedetails about the rating system.Significant Forecasting Assumptions 65Statement of Accounting Policies 67Rating System, Rates andFunding Impact Statements 78Section 3 – Additional informationCouncil Controlled Organisations 91Support toExternal Organisations 98How to Contact the Council 99Glossary 101PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 3

He MihiINTRODUCTIONHe MihiKei te mihi atu ki a Tararua te pae maunga me tōna taumataTe Ahu ā Turanga.Ko te awa e rere mai nei ko Manawatū. Ko Tānenuiarangi tetangata, ko Rangitāne te iwi, no reira ka tuku whakamihi kite iwi o Rangitāne e pupuri nei i te mauri o tēnei whenua.Tini whetu ki te rangi, Rangitāne ki te whenua.Tihei Mauriora!The Palmerston North City Council respectfully recognisesthe local iwi Rangitāne and their customary relationshipto this area and appreciates the ongoing support of theiwi in the development of this City and all of those peoplewho have made it their home.The Council remains committed to fostering andstrengthening our relationship with Rangitāne.Turitea Upper Dam, Aokautere4 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

INTRODUCTIONA message from the Mayor and Chief ExecutiveA Message from TheMayor and Chief ExecutiveKia Ora everybody.This is our Annual Plan for July 2013-June 2014.It is based on Year Two of our 10 Year Plan 2012-2022. Lastyear we put a lot of effort into consulting on the draft 10Year Plan and the general feedback we got was that weare doing the right things. Hence we want to stick to the10 Year Plan and provide the services and projects that weagreed to. (The diagram on the next page shows how our10 Year Plan and Annual Plans fit together.)This does not mean blindly doing everything that was inthe Plan for next year. We looked at the Year Two work tomake sure it is still relevant. Mostly it is, however we havetweaked a few things.In December the Government made some changes to thepurpose of local government. Our purpose is to “meetthe current and future needs of communities for goodquality local infrastructure, local public services, andthe performance of regulatory functions in a way that ismost cost-effective to households and businesses”. Wehave reviewed what we do and are confident that it allfits within this purpose. Our 10 Year Plan consultationshowed that what we do is meeting current and futurecommunity needs.In particular, we have reviewed all of our budgets to ensurethat they continue to include efficiency gains.Value for money always drives what we do - and what wecannot afford to do. It is a particularly hot topic at themoment and the global economic recession is puttingstress on everybody’s budgets.In the 10 Year Plan we indicated that the rates increasenext year would be 5.2%. We have carefully looked at thisand have reduced it to 3.9%. This is despite us puttingsome extra projects in the Annual Plan. There is an extra$600,000 to work out exactly what is happening with theWastewater Treatment Plant discharge into the ManawatūRiver so we can then make any necessary improvementsand to provide extra dosing of the waste. We have put inan extra $250,000 to strengthen some of our earthquakeprone buildings – the draft plan had $1.25m set aside forthis, but we have deferred $1m because we believe it ishighly unlikely that final decisions will have been made intime to enable much of this work to be completed during2013/14. We have also added in about $200,000 to protectour water supply by making improvements to the PapaioeaPark water bore and the road and pipes from the TuriteaDam. Our insurance costs have also increased by $200,000from what was in the 10 Year Plan.We are able to reduce the proposed rates increase from5.2% to 3.9% and still suggest doing these extra thingsbecause we have made savings in areas like staff costs,recycling collection costs and interest costs. These will notreduce the level of service that we provide to you.This Plan retains the focus on prudently managing theCouncil’s debt levels by making provision to pay backdebt. Forecast net debt at 30 June 2014 is $134 million- $9 million less than forecast in the 10 Year Plan.There are some other minor changes and these areindicated with coloured icons in the budget pages of thisPlan. We have also made changes after hearing from thepublic through the consultation process. These are alsoindicated in the budget pages, and are highlighted in theConsultation Process section on page XX.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 5

A message from the Mayor and Chief ExecutiveINTRODUCTIONAs we said, the Annual Plan will allow us to provide thesame level of service that you currently get from theCouncil. Basically this means we can keep the City runningas it is and make a few further improvements. The diagramon page 15 shows what we do to keep the City running andwhat it costs. We think it is value for money.As well as all of these services we have some major projectsin the Annual Plan. We have already mentioned some ofthese; others include upgrades for Longburn and TuriteaValley water, piping Ashhurst wastewater (sewage) tothe main treatment plant for treatment, starting work onimprovements to the Papaioea housing units and a newaviary and wildlife rehabilitation centre at the Esplanade(subject to receiving sufficient levels of external funding).The full list of projects and services are in the budgetpages of this Plan.Providing value for money is one of the Council’s 10 YearPlan goals. You can see our vision and goals on page 1.We can sum these up in one word: sustainability. We wantto make Palmerston North more sustainable. This meansmaking it a good place for you and your children to live.That is what we do. This Annual Plan is one year’s worthof actions along the way to that sustainable city.How Does the AnnualPlan Fit with the 10 YearPlan?Under the Local Government Act 2002 the Councilhas to plan for the long term well-being of the City.To do this we have to prepare a 10 Year Plan everythree years. Our current 10 Year Plan covers theperiod 2012 - 2022.During years two and three of a 10 Year Plan theCouncil still has to produce an Annual Plan. ThisAnnual Plan has to be based on the 10 Year Plan, tomake sure that the Council does what it indicatedto the community it would do. It also makes surewe have a consistent direction.2021/2210 Year Plan2021/312020/21Annual Plan2019/20Annual Plan2012/1310 Year Plan2012/22Council’splanning cycle2012 throughto 20222013/14Annual Plan2014/15Annual Plan2015/1610 Year Plan2015/252018/1910 Year Plan2018/282017/18Annual Plan2016/17Annual PlanJono Naylor (Mayor)Paddy Clifford (Chief Executive)6 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

INTRODUCTIONFinancial Strategy and OverviewFinancial Strategy and OverviewOverviewThe Council’s Annual Plan covers the period 1 July 2013 to 30 June 2014.It incorporates operating and capital expenditure for the period for thecore Council entity - consolidated statements have not been preparedto include subsidiaries. In this section financial information is providedat a summary level but more detailed information for each Activity andGroup of Activities is included throughout the document.Total operating expense is forecast at $112.8 millionand total capital expenditure is $38.5 million includingrenewals of $16.6 million.Average residential rates for 2013/14 will be $2,086 peryear ($40.12 per week).Financial StrategyThe 10 Year Plan includes the Council’s overall FinancialStrategy which comprises the following elements:• Making sure the Council’s long term financialposition is sustainable• Recognising the principles of intergenerationalequity when considering its approach to funding• Managing debt• Looking after the City’s infrastructure provided byprevious generations for the use by current andfuture generations• Leaving financial capacity for future generationsso they are capable of funding unanticipated highpriority programmes• Taking account of ability to pay over the longer term• Having robust systems and processes.Consistent with the Financial Strategy and its associatedfunding and financial policies, this Annual Plan achievesthe following:• In general terms maintains the current level of servicefor each of the Council activities• An ability to maintain the condition of the City’sassets though there is only limited provision forunforeseen events• A capital expenditure programme for new workswhich is $10.1m higher than assumed in the 10 YearPlan - $6.9m of this relates to work scheduled in the10 Year Plan to be done in 2012/13 but which will notbe completed during that year• Forecast net debt at 30 June 2014 of $134m - $9mless than assumed in the 10 Year Plan (based on aforecast balance at 1 July 2013 of $118m)• An increase in the total rates requirement for 2013/14of 3.9% compared with a forecast requirement of5.2% in the 10 Year Plan.To provide a degree of certainty to ratepayers the FinancialStrategy sets limits on rate increases throughout the termof the 10 Year Plan. In addition it sets limits on what theCouncil considers to be sustainable levels of debt.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 7

Financial Strategy and OverviewINTRODUCTIONThe table below shows how the key financial parametersfor the Annual Plan compared with those for 2013/14 inthe 10 Year Plan.ParameterIncrease intotal ratesNet debt as a% of equityNet debt as a% of total revenueNet interest as a% of total revenueNet interest as a% of rates revenue10 YEArPlan5.2%11.5%136%10.2%13.8%AnnualPlan3.9%10.9%129%9.0%12.3%Limit5.2% [1]< 20%< 175%< 15%< 20%Forecast FinancialStatementsThe financial information contained in the Annual Plan is aforecast for the purposes of Financial Reporting Standard(FRS) 42. This information may not be appropriate forpurposes other than those described. It has been preparedon the basis of assumptions (refer to Significant ForecastingAssumptions section on page 65) as to future events thatthe Council reasonably expects to occur, associated withthe actions it reasonably expects to take, as at the datethe forecast was prepared. The actual results are likelyto vary from the information presented and may varymaterially depending upon the circumstances that ariseduring the period. The Annual Plan has been prepared inaccordance with generally accepted accounting practiceand the Council’s accounting policies are outlined in aseparate section (page 67).Palmerston North City Council is responsible forthese forecast financial statements, including theappropriateness of the assumptions underlying theforecast financial statements and all other disclosures.Because the figures are rounded to the nearest thousanddollars, it may appear that they do not add up. But the totalrepresents the sum of the individual forecast amounts.The Funding Impact Statements in section 2 (pages 85-90) have been prepared in accordance with the LocalGovernment (Financial Reporting) Regulations 2011. Theregulations are not consistent with generally acceptedaccounting practice.Rates revenue is included net of any remissions grantedunder the Council’s Rates Remission Policy. Remissions of$0.25 million pa have been assumed.(1) Based on September 2012 BERL Local Government cost indicator of 3.1% and arating base growth assumption of 0.1%.These forecast financial statements were authorised forissue by Palmerston North City Council on 26 June 2013.8 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

INTRODUCTIONFinancial Strategy and OverviewThe following tables show the financial implications of providing all of the Council’s services:PROSPECTIVE STATEMENT OF COMPREHENSIVE INCOMEBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sRevenue73,583 Rates 77,382 76,493894 Interest & Dividends 804 5142,462 Operating Subsidies & Grants 2,652 2,52723,845 Other Operating Revenue 24,489 24,464100,784 105,326 103,998expenses73,029 Expenses 75,141 76,56610,795 Interest 11,314 9,72424,924 Depreciation 25,382 26,469108,748 111,838 112,759(7,965) OPERATING SURPLUS (DEFICIT) (6,511) (8,761)Non Operating Revenue3,363 Capital Subsidies & Grants 2,087 3,247995 Development Contributions 1,045 1,0452,000 Vested Assets 2,000 2,0006,358 5,132 6,292(1,607) neT SURPLUS (DEFICIT) (1,379) (2,469)Other Comprehensive Income4,855 Revaluations 57,163 57,9133,248 TOTAL COmpRehensIve INCOme 55,784 55,4457.6% RATes INCREAse 5.2% 3.9%PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 9

Financial Strategy and OverviewINTRODUCTIONPROSPECTIVE STATEMENT OF CHANGES IN EQUITYBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000s1,187,273 Opening Balance 1,190,522 1,176,0983,248 Total Comprehensive Income 55,784 55,4451,190,522 1,246,306 1,231,543PROSPECTIVE BALANCE SHEETBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000s7,885 Current Assets 7,885 7,621nOn-Current Assets17,250 Investment Fund 17,250 10,60011,307 Investment in Council Controlled Organisations 11,307 11,30718,077 Investment Property & Other Financial Assets 18,077 18,3031,315,639 Property, Plant & Equipment 1,377,077 1,359,3671,370,158 TOTAL AsseTs 1,431,596 1,407,19921,493 Current Liabilities 21,493 27,792nOn-Current Liabilities928 Employee Entitlements 928 1,052154,726 Term Liabilities 160,379 144,9642,490 Landfill Aftercare 2,490 1,848Equity979,134 Retained Earnings 977,755 969,317211,388 Other Reserves 268,551 262,2261,370,158 TOTAL LIABILITIes/EQUITY 1,431,596 1,407,19910 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

INTRODUCTIONFinancial Strategy and OverviewPROSPECTIVE CASH FLOW STATEMENTBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sOperating ACTIvitiesCash Provided73,583 Rates 77,382 76,493694 Interest 604 314200 Dividends 200 2002,462 Operating Subsidies & Grants 2,652 2,52723,845 Other Operating Revenue 24,489 24,4643,363 Capital Subsidies & Grants 2,087 3,247995 Development Contributions 1,045 1,045Cash Disbursed(10,795) Interest (11,314) (9,724)(73,029) Expenses (75,141) (76,566)21,318 22,003 22,001Investing ACTIvitiesCash Provided2,750 Investment Reductions - -435 From Asset Sales 427 427Cash Disbursed(33,585) Capital Expenditure (28,084) (38,538)(30,400) (27,657) (38,111)Financing ACTIvitiesCash Provided9,083 Borrowing 5,653 16,1109,083 5,653 16,110- Net Increase / (Decrease) - -2,000 Cash at beginning 2,000 2,0002,000 CAsh AT YEAR END 2,000 2,000Because the figures on this page are rounded to the nearest thousand dollars, it sometimesappears that they do not add up. But the total represents the sum of the individualforecast amounts.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 11

Financial Strategy and OverviewINTRODUCTIONThe Consultation ProcessThe Council sought views from the community on the draft Annual Plan.Copies of the document and of the Summary were made available atthe Council and at City and Branch Libraries. The March edition of theSquare Circular included information about the draft plan and how peoplecould access it and give their feedback. The public then had the optionof making a submission and speaking to a Council Hearings Committee.The Council received 107 submissions, representing 571signatures (this included one petition). The public wasgiven a variety of ways to make submissions - these werebroken down as follows:Email 51 48%Submission Form 31 29%Online 13 12%Letter 8 7%Telephone 2 2%Petition 1 1%Custom Form 1 1%Approximately 50 of the 107 submissions were presentedby people or organisations at the nine draft Annual Planhearings.The following paragraphs briefly outline some of thecommon issues raised in submissions, and the Council’sresponse. More detailed information about the Council’sdecisions on other issues is in the Message from The Mayorand Chief Executive.Fluoridation of WaterSupport Against Other4 31 035 submitters commented: Most opposed the use offluoride in water and asked Council to carry out a review offluoridation to determine whether continuing to fluoridatethe water supply is in the best interests of citizens. TheCouncil will seek independent assessment for and againstfluoridation (see page 57).Wastewater DischargeRiver MonitoringSupport Against Other5 1 511 submitters commented: Most either support thisprogramme and/or want Council to move towards a landbased system. The Council will continue to work withHorizons Regional Council to work out what is happeningwith the Wastewater Treatment Plant discharge into theManawatū River so we can then make any necessaryimprovements and to provide extra dosing of the waste(see page 54).Downstream Cycle/Pedestrian BridgeRoute AssessmentSupport Against Other7 0 07 submitters commented: All support the programme,some giving Route suggestions. Petition of 447 signaturesreceived. The Council will continue with this assessment,and has also set aside funding to investigate a sharedcycle/pedestrian pathway from Fitzherbert Bridge toLinton (see page 47).12 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

INTRODUCTIONFinancial Strategy and OverviewNZ Rugby MuseumOperational FundingSupport Against Other7 0 07 submitters commented: All support operational fundingbeing given to the NZ Rugby Museum. The Councilconsidered this request but decided not to fund it.Other changes madeby the CouncilThe Council also made some changes between the draftand final Annual Plan as a result of consultation or throughits final decision making process:• Building two new large hyrdroslides and Aquaplaystructure at the Lido Pool, subject to negotiationsand a business plan (ID 964, page 42).• Installing more outdoor sun protection at the LidoPool (ID 965, page 42).• Investigating and installing outdoor exercise fitnessequipment (ID 966, page 42).• Providing mobility scooters at some sites in the City,subject to finding a partner to operate a system forpublic use (ID 971, page 61).• Planting edible trees (ID 967, page 42).• Building a new toilet at Takaro Park (ID 968, page 42).• Investigating Arena Manawatu’s business and futuredevelopment plans (ID 969, page 40).• Implementing the Smokefree Policy (ID 970, page 25).PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 13

What we Provide and What it Costs the Average Residential RatepayerINTRODUCTIONWhat we Provide and What it Costs theAverage Residential RatepayerAn average residential property has a land value of $136,000. The ownerof this property will pay rates of $2,086 per annum or $40.12 per week.The diagram on the next page shows the services the Council provides ineach of its Activities, and the cost per week to the owner of the averageresidential property.How to work out your rates:Proposed rates for ordinary residential properties can becalculated as follows:Rates for 2013/14(Land Value 0.006573) 1,192For example:136,000 0.006573 893.93893.93 1,192 2,085.93If you want help with calculating your rates, you can contactthe Council’s Customer Services staff on 06 356 8199.These Council services compare with: cost per weekPhone line charge 11.00Newspaper 6.00Electricity 37.00Milk (5 x 2L/week) 15.00This calculation does not apply to non-residential property.14 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

INTRODUCTIONWhat we Provide and What it Costs the Average Residential RatepayerHOW YOUR MONEY IS SPENT0.64% Surplus $0.26Allocated to other ActivitiesCustomer Services *Customer servicescentre, call centreCorporate Support *human resources,information managementand financial servicesCommercial or StrategicInvestments *Council investments3.86% $1.55Councillor Leadershipand Decision MakingMayor and Councillors,consultation, Councilmeetings5.86% $2.35Direction SettingPlans and strategies,Iwi relationships0.55% $0.22CemeteriesCemeteries andCrematorium0.52% $0.21Civil DefenceEmergency management2.94% $1.18CommunityDevelopmentSupporting communitygroups, community events,community safety0.70% $0.28HousingCommunity housing* The net cost or surplusfrom these activities is eitherspread over other Activitiesor used to reduce theoverall rates requirement10.44% $4.19The Council dividesits services intoActivities. This showsthe weekly costs of theCouncil’s services for theaverage residentialratepayer.3.46% $1.39Work and CityPromotionEconomic development,City promotionWaterTreatment, storage,distribution8.82% $3.54WastewaterCollection, treatmentand disposal3.41% $1.37StormwaterFlood protection9.82% $3.94Rubbish and RecyclingRefuse and recycling,waste minimisation14.61% $5.86Roading and ParkingRoading network,footpaths, streetlights,parking spaces4.36% $1.75RegulatoryPublic health, planningand building, animalcontrol, parking control15.43% $6.19Parks and RecreationSportsfields, parks,walkways, swimmingpools, Arena Manawatu6.66% $2.67Arts and CultureArts and culturefacilities and support9.20% $3.69City LibraryCentral and branchlibraries, mobilelibrary, youth spaceFootnote for Stormwater: Horizons Regional Council is responsible for Manawatū River and Mangaone Stream flood protectionPALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 15

What we Provide and What it Costs the Average Residential RatepayerINTRODUCTION16 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

IMPLEMENTINGTHE 10 YEAR PLANSection1

This shows what we’re planning to do, and how much it is expected to cost toimplement year two of the 10 Year Plan. It also shows measurable descriptions ofthe different services that the Council provides for residents.Section1Groups of Activities -IntroductionLeadershipCouncillor Leadershipand Decision MakingDirection SettingCommunity SupportCemeteriesCivil DefenceCommunity DevelopmentHousingWork and City PromotionLeisureRegulatoryRoading and ParkingRubbish and RecyclingStormwaterWastewaterWaterSupport ServicesCommercial orStrategic InvestmentsCorporate SupportCustomer ServicesSection2Arts and CultureCity LibraryParks and RecreationSection3Section Image: English Language Classes,Multicultural Centre, Hancock Community House

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Group of Activities IntroductionGroups of ActivitiesWhat we are planning to do during year two of the 10 Year Planand why - IntroductionThe Council provides a wide range of services and facilities for people living in Palmerston North. Theseservices and facilities - called Activities - help to make Palmerston North a vibrant, caring, innovative andsustainable city. They include things like roading and parking, civil defence, libraries, parks and recreation,and customer services.We have 19 Activities. This section explains what we planto do in each Activity during Year Two of the 10 Year Plan(2013/14) and, on average, what it is expected to costratepayers. For comparative purposes it shows the 10Year Plan budget forecasts for 2012/13 and 2013/14. Thesefigures have been adjusted where necessary as indicated.LEADERSHIPCouncillor Leadership and Decision Making Direction SettingSOCIAL ECONOMIC Leisure EnvironmentalThe four central pillars of this diagram show the mainservices that the Council provides directly to City residentsand organisations.Tying these pillars together at the top are Council’sleadership and direction setting. These make sure thatthe Council is doing the right things within the four wellbeingsand has got appropriate balance between them.CemeteriesCivil DefenceCommunityDevelopmentHousingWork and CityPromotionArts and CultureCity LibraryParks and RecreationRegulatoryRoading and ParkingRubbish and RecyclingStormwaterWastewaterWaterSupporting them at the bottom are Council’s supportservices - things like human resources, financial services,information systems and customer services.support servicesCommercial or Strategic Investments Corporate Support Customer ServicesPALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 19

Group of Activities Introduction GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1The full 10 Year Plan explains why the Council has groupedthe Activities together and how they contribute to theCouncil’s Vision and Goals. It also contains informationon what people expect from the Council and what theCouncil provides.For a copy of the 10 Year Plan you can contact the Council’sCustomer Services Centre on 06 356 8199, or emailinfo@pncc.govt.nz or visit the website - www.pncc.govt.nzA guide to theprogrammeswithin this sectionRoundingBecause the figures are rounded to the nearest thousanddollars, it sometimes appears that they do not addup, but the total represents the sum of the individualforecast amounts.Operating ProgrammesIndividual operating programmes occasionally generateadditional revenue streams for the Council. For this reason,the figures shown in relation to the programme reflect theplanned net amount that the Council will fund from rates.In the Summary Activity Financial Statements the revenueand expenses from the programme are included in therelevant categories, along with all the other revenue andexpenses to fund the Activity.Capital ProgrammesSince individual capital programmes result in the Councilcreating an asset, the total cost is shown in the programmeschedules. The total of all budgeted external fundingfor all capital programmes within an Activity is deductedfrom what is shown as the ‘Total’ to show what the Councilplans to contribute (shown as ‘Funded by Council (Ratesand Borrowing’). The programme schedules also showthe percentage split between how much is to fund growth(Growth) and how much is to fund current or new levelsof service (LOS) for each.Programme DescriptionsFor a more detailed description of the programmes, seeour website www.pncc.govt.nz or ask for a copy throughthe Customer Services Centre on 06 356 8199.Information andMain Reason for ChangeWhere a programme has changed from the 10 Year Plan, areason has been noted. Some of the major programmes areplanned over several years, so this is noted where relevant.AbbreviationsThe following abbreviations appear throughout thissection:10YP - 10 Year PlanAP - Annual PlanKeyBelow is the key to the symbols you will seealongside each programme within this section.What’s inno change to timing- any budget change indicatedWhat’s out (deleted)explanation indicatedWhat’s beinG done laternew year and explanation indicatedWhat’s beinG done EARLIERnew year and explanation indicatedWhat’s newexplanation indicatedNEW20 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Groups of Activities SummaryGroups of Activities SummaryCouncil Activity GroupsBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000sRevenueLeadership12 Councillor Leadership and Decision Making 141 141165 Direction Setting 170 170Community Support505 Cemeteries 530 5369 Civil Defence 9 -190 Community Development 196 1931,263 Housing 1,300 1,4001,039 Work and City Promotion 1,070 1,068Leisure50 Arts and Culture 52 52524 City Library 539 5401,835 Parks and Recreation 1,888 1,8953,150 Regulatory 3,006 3,1906,766 Roading and Parking 6,976 6,3003,128 Rubbish and Recycling 3,341 3,1121,403 Water 1,458 1,458889 Wastewater 924 9242 Stormwater 2 2Support Services5,782 Commercial or Strategic Investments 5,818 5,302924 Corporate Support 951 1,22327,636 Total Revenue 28,372 27,505Budget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000sexpensesLeadership2,982 Councillor Leadership and Decision Making 3,385 3,3895,134 Direction Setting 5,180 5,060Community Support891 Cemeteries 1,002 975421 Civil Defence 434 4322,545 Community Development 2,561 2,8891,744 Housing 1,894 1,8944,103 Work and City Promotion 4,216 4,073Leisure6,561 Arts and Culture 6,745 6,6009,131 City Library 9,262 8,74715,912 Parks and Recreation 16,302 15,7737,136 Regulatory 7,227 7,03921,707 Roading and Parking 22,305 23,3048,247 Rubbish and Recycling 8,474 8,1786,522 Water 6,669 6,7596,806 Wastewater 7,150 8,6163,188 Stormwater 3,321 3,172Support Services4,832 Commercial or Strategic Investments 4,853 5,058886 Corporate Support 857 800108,748 Total Expenses 111,838 112,75981,113 NET OPERATING COST OF ACTIVITY GROUPS 83,466 85,254PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 21

Groups of Activities Summary GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Budget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s81,113 NET OPERATING COST OF ACTIVITY GROUPS 83,466 85,254Rating Requirement(24,924) Less Depreciation (25,382) (26,469)- Less Transfers To/(From) Reserves - (480)14,482 Plus Net Capital Renewal (3 Year Average) 15,750 14,9832,912 Plus Debt Repayment 3,549 3,20573,583 RATES REQUIREMENT 77,382 76,4937.6% 5.2% 3.9%Capital ExpenditureCapital RenewalsCommunity Support104 Cemeteries 132 132260 Community Development 115 115200 Housing 527 48232 Work and City Promotion 238 238Leisure826 Arts and Culture 809 8091,023 City Library 1,031 1,0311,092 Parks and Recreation 1,335 1,23224 Regulatory 41 414,455 Roading and Parking 4,956 5,017126 Rubbish and Recycling 139 1141,785 Water 2,011 1,9691,375 Wastewater 987 9231,080 Stormwater 492 492Support Services1,627 Commercial or Strategic Investments 1,607 1,5442,135 Corporate Support 1,812 2,49616,145 Total Capital Renewals 16,234 16,637Budget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000sCapital NewLeadership- Councillor Leadership and Decision Making - -Community Support244 Cemeteries 49 118500 Housing 2,573 3,066Leisure1,840 Arts and Culture - 2,024154 City Library - -1,525 Parks and Recreation 2,395 2,568- Regulatory - -5,612 Roading and Parking 1,404 2,3721,124 Rubbish and Recycling 72 4781,130 Water 740 1,2043,231 Wastewater 3,678 7,6131,706 Stormwater 886 1,856Support Services375 Commercial or Strategic Investments 52 112- Corporate Support - 49017,440 Total Capital New 11,849 21,90233,585 Total Capital Expenditure 28,084 38,538Funded By1,536 External Revenue Renewal 1,790 1,9131,827 External Revenue New 297 1,334995 Development Contributions 1,045 1,045- Asset Sales - 42714,482 Rates 15,750 14,98314,745 New Borrowing / (Repayment) 9,202 18,83533,585 Total 28,084 38,53822 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Leadership GroupLeadership GroupCouncillor Leadership and Decision Making ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue12 Councillor Meetings and Administration 12 12- Elections 129 12912 Total Revenue 141 141expenses2,001 Councillor Meetings and Administration 2,076 2,09349 Elections 351 351932 Mayoral and Chief Executive’s Office 958 9452,982 Total Expenses 3,385 3,3892,971 NET OPERATING COST OF ACTIVITY 3,244 3,248Rating Requirement(21) Less Depreciation (13) (13)2 Plus Debt Repayment 2 22,951 RATES REQUIREMENT 3,233 3,237Councillor Leadership and Decision Making - Operational10YPAP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change798-BC - Additional Election Costs 15 - Costs moved to existing levels of serviceTotal 15 -PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 23

Leadership Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Direction Setting ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue165 Environment Policy and District Planning 170 170165 Total Revenue 170 170expenses3,728 Environment Policy and District Planning 3,727 3,670 Lower compensation payment to MDC for boundary change1,405 Strategy Development and 10 Year Planning 1,453 1,3905,134 Total Expenses 5,180 5,0604,969 NET OPERATING COST OF ACTIVITY 5,010 4,890Rating Requirement(25) Less Depreciation (25) -18 Plus Debt Repayment 19 -4,961 RATES REQUIREMENT 5,003 4,88924 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Leadership GroupDirection Setting - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEW501-Boundary Change Project (Compensation to MDC) 859 790 Cost estimates revised751-City Wide - Research Into Sustainability Issues that Impact on the City And Its Environment 26 25762-City Wide - Urban Design and Placemaking - Delivering Change 46 46764-City Wide - Sustainability Awareness Raising 90 90765-City Wide - Ridepro Carpooling Initiative 5 5970-Implementation of Smokefree Areas Policy - 10 To implement the Smokefree Areas PolicyTotal 1,026 966PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 25

Community Support Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Community Support GroupCemeteries ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue505 Cemeteries 530 536505 Total Revenue 530 536expenses891 Cemeteries 1,002 975891 Total Expenses 1,002 975385 NET OPERATING COST OF ACTIVITY 472 439Rating Requirement(129) Less Depreciation (152) (139)132 Plus Net Capital Renewal (3 Year Average) 146 14611 Plus Debt Repayment 17 18400 RATES REQUIREMENT 484 465Capital Expenditure104 Renewal 132 132244 New 49 118348 Total Capital Expenditure 181 250Funded By132 Rates 146 146216 New Borrowing / (Repayment) 35 103348 Total 181 25026 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Community Support GroupCemeteries - OPERATIONAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change763-BC - Bunnythorpe Cemetery - Handover Provision 14 14Total 14 14Cemeteries - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change37-Terrace End Cemetery - Site Enhancements 8 8278-Kelvin Grove Cemetery - Roading and Footpath Refurbishment 124 124TOTAL 132 132Funded by Council (Rates and Borrowing) 132 132Cemeteries - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change107-Kelvin Grove Cemetery - Burial (Including Children’s Area) and Ash Plot Developments 34 34484-Natural Burial Cemetery 15 15937-C/fwd - Natural Burial Cemetery - 68 Carried forward balance of programme 484 from 2012/13TOTAL 49 118Funded by Council (Rates and Borrowing) 49 118PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 27

Community Support Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Civil Defence ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue9 Civil Defence 9 - Anticipated revenue no longer available9 Total Revenue 9 -expenses421 Civil Defence 434 432421 Total Expenses 434 432412 NET OPERATING COST OF ACTIVITY 424 432Rating Requirement- Less Depreciation - -412 RATES REQUIREMENT 424 43228 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Community Support GroupCommunity Development ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue58 Community Development 60 60122 Community Halls and Facilities 126 12310 Grants to Community Groups 10 10190 Total Revenue 196 193expenses604 Community Development 608 922 Transferred from the City Library due to the 2012 Library services review270 Community Events 277 218497 Community Halls and Facilities 505 585 Change to depreciation assumption1,174 Grants to Community Groups 1,171 1,1642,545 Total Expenses 2,561 2,8892,355 NET OPERATING COST OF ACTIVITY 2,365 2,696Rating Requirement(265) Less Depreciation (265) (343)106 Plus Net Capital Renewal (3 Year Average) 64 6442 Plus Debt Repayment 46 462,237 RATES REQUIREMENT 2,210 2,464Capital Expenditure260 Renewal 115 115260 Total Capital Expenditure 115 115Funded By106 Rates 64 64154 New Borrowing / (Repayment) 51 51260 Total 115 115PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 29

Community Support Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Community Development - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEW803-Maori/Pacifica Community Development 59 59812-Youth Council - Grants and Scholarships 5 5825-BC - Community Centre Grants 8 8931-CBD - CCTV Monitoring - 12 Ongoing monitoring costs following investigationTotal 72 84Community Development - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change265-City Wide - Community Centre Refurbishments 115 115TOTAL 115 115Funded by Council (Rates and Borrowing) 115 11530 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Community Support GroupHousing ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue1,263 Social Housing 1,300 1,400 Assumed lower vacancy rates than the 10YP1,263 Total Revenue 1,300 1,400expenses1,744 Social Housing 1,894 1,8941,744 Total Expenses 1,894 1,894481 NET OPERATING COST OF ACTIVITY 594 494Rating Requirement(567) Less Depreciation (580) (533)465 Plus Net Capital Renewal (3 Year Average) 676 6161 Plus Debt Repayment 3 -380 RATES REQUIREMENT 693 577Capital Expenditure200 Renewal 527 482500 New 2,573 3,066700 Total Capital Expenditure 3,099 3,548Funded By465 Rates 676 616235 New Borrowing / (Repayment) 2,423 2,932700 Total 3,099 3,548PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 31

Community Support Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Housing - OPERATIONAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEW917-City Wide - Community Housing Maintenance - 45 Maintenance component extracted from capital programme 180Total - 45Housing - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change180-City Wide - Community Housing Refurbishments 527 482 Maintenance component extracted to operating programme 917TOTAL 527 482Funded by Council (Rates and Borrowing) 527 482Housing - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change357-Papaioea Place Community Housing - Eco Friendly Unit Replacements 2,573 2,573 Year one of two928-C/fwd - Papaioea Place Community Housing - Eco Friendly Unit Replacements - 494 Carried forward balance of programme 847 from 2012/13TOTAL 2,573 3,066Funded by Council (Rates and Borrowing) 2,573 3,06632 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Work and City PromotionWork and City Promotion GroupBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue- Business Support - -64 City Marketing and Branding 66 64976 Convention Centre 1,004 1,0041,039 Total Revenue 1,070 1,068expenses742 Business Support 765 7492,053 City Marketing and Branding 2,111 1,8361,309 Convention Centre 1,340 1,488 Change to depreciation assumption4,103 Total Expenses 4,216 4,0733,064 NET OPERATING COST OF ACTIVITY 3,147 3,005Rating Requirement(195) Less Depreciation (196) (312)137 Plus Net Capital Renewal (3 Year Average) 138 13860 Plus Debt Repayment 71 663,065 RATES REQUIREMENT 3,160 2,896Capital Expenditure32 Renewal 238 23832 Total Capital Expenditure 238 238Funded By137 Rates 138 138(105) New Borrowing / (Repayment) 101 10132 Total 238 238PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 33

Work and City Promotion GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Work and City Promotion - OPERATIONAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change837-Secondary School Scholarship 4 4Total 4 4Work and City Promotion - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change251-Convention Centre - Replacement of Equipment 33 33664-Convention Centre - Renewals 206 206TOTAL 238 238Funded by Council (Rates and Borrowing) 238 23834 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Leisure GroupLeisure GroupArts and Culture ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue50 Grants to Arts and Cultural Groups 52 5250 Total Revenue 52 52expenses1,074 Grants to Arts and Cultural Groups 1,075 1,0731,643 Other Cultural Facilities 1,745 1,682 Lower interest costs due to delayed capital programmes3,844 Te Manawa 3,925 3,8456,561 Total Expenses 6,745 6,6006,510 NET OPERATING COST OF ACTIVITY 6,693 6,548Rating Requirement(1,597) Less Depreciation (1,633) (1,547)722 Plus Net Capital Renewal (3 Year Average) 466 46689 Plus Debt Repayment 111 1025,724 RATES REQUIREMENT 5,637 5,570Capital Expenditure826 Renewal 809 8091,840 New - 2,0242,666 Total Capital Expenditure 809 2,833Funded By435 External Revenue New - 1,039722 Rates 466 4661,509 New Borrowing / (Repayment) 343 1,3282,666 Total 809 2,833PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 35

Leisure Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Arts and Culture - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEW778-Arts Strategy - Increased Implementation Funding 31 31831-Regent Theatre - Future Additional Funding 124 121904-Earthquake Assessment Work - Secondary Assessment - 50 Assessment of remaining Council owned facilities that have public use913-Christmas in The Square - 25 To allow residents of the City to enjoy a festive event in the CBDTotal 155 227Arts and Culture - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change213-Cultural Facilities - Replacement of Structures, Internal Fitout and Services 809 809TOTAL 809 809Funded by Council (Rates and Borrowing) 809 809Arts and Culture - new10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change908-C/fwd - Globe Theatre - Extension of Bar/Cafe and Additional 100-seat Auditorium - 1,136 Carried forward from 2012/13963-Globe Theatre - Extension of Bar/Cafe and Additional 100-seat Auditorium - 888 Carried forward from 2012/13TOTAL - 2,024Funded by Council (Rates and Borrowing) - 98536 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Leisure GroupCity Library ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue8 Archives 8 8414 Central Library 426 427 Revenue transferred to Arts and Culture due to the 2012 Library services review14 Collections 14 1588 External Library Services 91 91524 Total Revenue 539 540expenses290 Archives 278 2877,233 Central Library 7,390 7,039 Efficiencies flowing from 2012 Library Services review and transfers to other activities1,467 Collections 1,449 1,251 Lower than anticipated depreciation142 External Library Services 145 1709,131 Total Expenses 9,262 8,7478,607 NET OPERATING COST OF ACTIVITY 8,723 8,207Rating Requirement(1,696) Less Depreciation (1,692) (1,645)1,012 Plus Net Capital Renewal (3 Year Average) 1,039 1,03877 Plus Debt Repayment 102 858,000 RATES REQUIREMENT 8,171 7,686Capital Expenditure1,023 Renewal 1,031 1,031154 New - -1,177 Total Capital Expenditure 1,031 1,031Funded By1,012 Rates 1,039 1,038165 New Borrowing / (Repayment) (8) (7)1,177 Total 1,031 1,031PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 37

Leisure Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1City Library - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change811-City Library - Digital Content 31 31Total 31 31City Library - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change178-Central Library - Replacement of Furniture and Fittings 77 77188-City Library - Replacement and Purchase of New Library Materials (Books and non-Book Purchases) 805 805202-Central Library - Interior Design Renewals 113 113203-City Library - Interior Design of Branch and Mobile Libraries 15 15777-City Library - Genealogy Equipment 21 21TOTAL 1,031 1,031Funded by Council (Rates and Borrowing) 1,031 1,03138 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Leisure GroupParks and Recreation ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue1,588 Arena Manawatu 1,634 1,63425 City-Wide Reserves 26 14121 Local Reserves 125 146 Anticipated increased usage97 Sportsfields 100 1004 Swimming Pools 4 -1,835 Total Revenue 1,888 1,895expenses5,147 Arena Manawatu 5,155 5,0634,483 City-Wide Reserves 4,617 4,457 Lower interest costs due to delayed capital programmes2,650 Local Reserves 2,847 2,7971,915 Sportsfields 1,971 1,722 Lower interest costs due to delayed capital programmes1,717 Swimming Pools 1,713 1,73515,912 Total Expenses 16,302 15,77314,077 NET OPERATING COST OF ACTIVITY 14,414 13,878Rating Requirement(3,951) Less Depreciation (4,030) (3,480)1,655 Plus Net Capital Renewal (3 Year Average) 2,215 2,166302 Plus Debt Repayment 377 33312,082 RATES REQUIREMENT 12,976 12,897Capital Expenditure1,092 Renewal 1,335 1,2321,525 New 2,395 2,5682,616 Total Capital Expenditure 3,730 3,800Funded By12 External Revenue New 91 12 Programme 560-Te Motu o Poutoa and Anzac Park Reserve Development moved out one year.179 Development Contributions 188 1881,655 Rates 2,215 2,166771 New Borrowing / (Repayment) 1,236 1,4342,616 Total 3,730 3,800PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 39

Leisure Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Parks and Recreation - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEWNEWNEWNEW268-Arapuke Forest Park/Kahuterawa Pest Control and Biodiversity Protection and Enhancement 34 34355-Arapuke Forest Harvest and Replanting 28 28757-BC - Bunnythorpe - Reserves Maintenance 13 13758-BC - Bunnythorpe - Sportsfield Maintenance 13 13799-National Sports Events and Cycling Support 82 81835-Ashhurst Domain - Biodiversity Improvements as Part of Manawatu Gorge Project 41 41919-Arena Manawatu - Arena 2 Maintenance - 40 Maintenance component extracted from capital programme 335920-Arena Manawatu - B&M Centre Miscellaneous Asset Maintenance - 45 Maintenance component extracted from capital programme 332921-Arena Manawatu - Arena 3 Miscellaneous Asset Maintenance - 28 Maintenance component extracted from capital programme 337922-Arena Manawatu - Arena 6 Miscellaneous Asset Maintenance - 30 Maintenance component extracted from capital programme 339969-Arena Manawatu - Planning for the Future (Investigation) - 15 Result of public submission to draft Annual Plan- to investigate Arena Manawatu’s business and future development plansTotal 212 36840 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Leisure GroupParks and Recreation - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change98-City Wide Reserves - Renewals (Victoria Esplanade, Memorial Park, Ashhurst Domain and The Square) 226 226173-City Wide - Playground Renewals 97 97174-City Wide - Replacement of Furniture on Reserves 55 55177-City Wide - Replacement of Gardens on Reserves 28 28184-City Wide - Walkway Renewals 41 41186-City Wide - Public Toilet Refurbishments and Replacements 28 28190-City Wide - Replacement of Trees on Reserves 11 11194-City Wide - Renewal of Bridges on Reserves 32 32195-City Wide - Renewal of Hardsurface Areas on Reserves 59 59234-Coronation and Colquhoun Parks - Changing Room Refurbishments 21 21 Year one of four257-Fitzherbert/Manawaroa/Ongley Parks - Cricket Block Replacements 41 41258-City Wide - Refurbishment and Replacement of Boundary Fences on Reserves 41 41328-Arena Manawatu - FMG Stadium, Miscellaneous Asset Refurbishments 129 129332-Arena Manawatu - B&M Centre Miscellaneous Asset Refurbishments 45 - Maintenance component extracted to operating programme 920335-Arena Manawatu - Arena 2 Refurbishments 129 89 Maintenance component extracted to operating programme 919337-Arena Manawatu - Arena 3 Miscellaneous Asset Refurbishments 28 - Maintenance component extracted to operating programme 921339-Arena Manawatu - Arena 6 Miscellaneous Asset Refurbishments 56 26 Maintenance component extracted to operating programme 922343-Arena Manawatu - Replacement of Non-Building Facilities 62 62347-Arena Manawatu - Arena 5 Miscellaneous Asset Refurbishments 82 82378-Victoria Esplanade - Playground Refurbishments 21 21 Year one of two565-The Square - Events Quadrant Resurface and Drainage 26 26 Year one of two597-Aquatic Facilities - Replacement of Small Plant 36 36819-Arena Manawatu - Replacement of Equipment 41 41955-C/fwd - Wallace Park Tennis Courts - Acrylic Resin Coating - 40 Carried forward balance of programme 576 from 2012/13TOTAL 1,335 1,232Funded by Council (Rates and Borrowing) 1,335 1,232PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 41

Leisure Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Parks & Recreation - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEWNEWNEWNEW93-Memorial Park - Capital Development Programme (financial provision) 45 4594-City Wide - Purchase of Land to Extend Walkways Network 60 6095-City Wide - Construction of Walkways 60 60111-Edwards Pit Park 51 51 Year four of six158-City Wide - Safety Improvements to Reserves 30 30160-City Wide - Improved Access to Reserves for Persons with Disabilities 33 33165-Arapuke Forest Park/Kahuterawa - Development 28 28166-City Wide - Installation of Backflow Prevention Devices to Reserve Water Connections 35 35354-Arapuke Forest Park - Forest Harvest and Replanting 139 139368-Victoria Esplanade - New Aviary 737 737 Year two of two376-Victoria Esplanade - New Conservatory 448 448 Year two of two560-Te Motu o Poutoa and Anzac Park Reserve Development 627 - Deferred one year577-Vautier Park and Community Athletics Track - Shade and Shelter Development 62 62587-Linklater Reserve Development 41 41 Year two of seven909-C/fwd - Manawatu River Rocklining Below Esplanade - Cost Share Project with Horizons and Powerco - 195 Carried forward from 2012/13925-C/fwd - Te Motu o Poutoa and Anzac Park Reserve Development - 80 Carried forward balance of programme 560 from 2012/13934-C/fwd - City Wide - Purchase of Land to Extend Walkways Network - 45 Carried forward balance of programme 94 from 2012/13935-C/fwd - Edwards Pit Park - 40 Carried forward balance of programme 111 from 2012/13936-C/fwd - Victoria Esplanade - New Conservatory - 25 Carried forward balance of programme 376 from 2012/13964-Lido Pool - Supporting Infrastructure and Landscaping for New Attractions - 300 Result of public submission to draft Annual Plan- to install two large waterslides and Aquaplay(tm) structure (subject to business plan)965-Lido Pool - Outdoor Sun Protection - 20 Result of public submission to draft Annual Plan - to provide additional sun protection966-Outdoor Fitness Equipment - 40 Result of public submissions to draft Annual Plan- investigation and provision of outdoor exercise fitness equipment967-Edibles Planting - 5 Result of public submissions to draft Annual Plan - to plant edible trees968-Takaro Park - New Public Toilet - 50 Result of public submission to draft Annual Plan - to provide a public toilet at Takaro ParkTOTAL 2,395 2,568Funded by Council (Rates and Borrowing) 2,304 2,55642 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Regulatory GroupRegulatory GroupBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue500 Animal Control 516 551 Anticipated reduction in unregistered dogs1,584 Building Control 1,391 1,489 Anticipated increase in demand235 Land Administration 243 246509 Planning Services - Private 525 567 Anticipated increase in demand20 Planning Services - Public 21 21301 Public Health 311 3163,150 Total Revenue 3,006 3,190expenses647 Animal Control 670 6393,371 Building Control 3,338 3,346 Associated cost of increased demand466 Land Administration 481 458492 Planning Services - Private 502 555 Associated cost of increased demand806 Planning Services - Public 839 7911,354 Public Health 1,396 1,250 Reduction in legal costs and overheads7,136 Total Expenses 7,227 7,0393,986 NET OPERATING COST OF ACTIVITY 4,221 3,849Rating Requirement(205) Less Depreciation (205) (210)22 Plus Net Capital Renewal (3 Year Average) 14 143,803 RATES REQUIREMENT 4,029 3,653Capital Expenditure24 Renewal 41 4124 Total Capital Expenditure 41 41Funded By22 Rates 14 142 New Borrowing / (Repayment) 28 2824 Total 41 41PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 43

Regulatory Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Regulatory - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change130-Earthquake Prone Buildings - Assessment of Compliance with the Building Act 121 89 Cost estimates revised250-Settlement of Claims Over Weathertightness Problems in Homes 310 310772-Eco Design Advisor 63 - Costs moved to existing levels of serviceTotal 493 398Regulatory - RENEWAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change40-Noise Measuring Equipment for Noise Complaints - Rolling Replacement 41 41TOTAL 41 41Funded by Council (Rates and Borrowing) 41 4144 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Roading and Parking GroupRoading and Parking GroupBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue- Footpaths - -4,331 Parking 4,466 3,906 Reduction in demand1,259 Roads 1,298 1,182 Reduced NZTA subsidies161 Street Facilities 166 166583 Street Lighting 601 602432 Traffic Services 445 4456,766 Total Revenue 6,976 6,300expenses1,594 Footpaths 1,627 1,7612,216 Parking 2,281 2,581 Change in depreciation assumptions11,839 Roads 12,195 12,421 Interest and overhead costs, along with changes in depreciation assumptions2,768 Street Facilities 2,835 2,865 Change in depreciation assumptions1,601 Street Lighting 1,638 1,7211,689 Traffic Services 1,728 1,955 Change in depreciation assumptions21,707 Total Expenses 22,305 23,30414,941 NET OPERATING COST OF ACTIVITY 15,329 17,004Rating Requirement(7,103) Less Depreciation (7,266) (8,666)3,064 Plus Net Capital Renewal (3 Year Average) 3,321 3,317528 Plus Debt Repayment 687 55611,431 RATES REQUIREMENT 12,070 12,211PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 45

Roading and Parking Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Budget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeCapital Expenditure4,455 Renewal 4,956 5,0175,612 New 1,404 2,37210,067 Total Capital Expenditure 6,360 7,388Funded By1,536 External Revenue Renewal 1,790 1,9131,381 External Revenue New 206 284478 Development Contributions 502 5023,064 Rates 3,321 3,3173,608 New Borrowing / (Repayment) 541 1,37210,067 Total 6,360 7,38846 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Roading and Parking GroupRoading and Parking - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEW780-BC - Road Maintenance of Sealed Roads Currently in Manawatu Area 165 165783-BC - Non-subsidised Vegetation Control 26 26804-BC - Street Light Maintenance and Operation 18 18841-Pioneer Highway to Longburn - Shared Cycle/Pedestrian Pathway (Investigation) 21 21923-Manawatu River - Downstream Pedestrian/Cycle Bridge Route Assessment - 51 Assessment of route options for a preferred site downstream of the Fitzherbert Avenue bridge973-Fitzherbert Bridge to Linton - Cycle/Pedestrian Pathway (Investigation) - 10 Result of public submissions to draft Annual Plan- to carry out investigation of a shared cycle/pedestrian pathwayTotal 230 291Roading and Parking - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change64-City Wide - Footpath Renewals and Replacements 391 39174-City Wide - Street Light Replacements 72 7282-City Wide - Off Street Parking Resurfacing, Remarking and Signage Replacement 10 10115-City Wide - Sealed Pavement Renewals 1,304 1,304122-City Wide - Road Drainage Replacements 309 309139-City Wide - Sealed Road Resurfacing 1,561 1,561155-City Wide - Street Tree Replacements 33 33162-City Wide - Vehicle Crossing Replacements 309 309175-City Wide - Traffic Signals Renewals 69 69699-Milson Line Overbridge - Seismic Retrofit 335 - Deferred two years740-BC - Milson Line - Box Culvert Replacement 52 52741-BC - Kairanga Bunnythorpe Road (Jacks Creek) - Bridge Renewal 31 31 Year one of two745-BC - Maintenance Chip Seal Programme 148 148747-BC - Pavement Rehabilitation 332 332 Year one of three956-C/fwd - City Wide - Footpath Renewals and Replacements - 128 Carried forward balance of programme 64 from 2012/13957-C/fwd - City Wide - Sealed Pavement Renewals - 267 Carried forward balance of programme 115 from 2012/13TOTAL 4,956 5,017Funded by Council (Rates and Borrowing) 3,166 3,103PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 47

Roading and Parking Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Roading and Parking - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change114-City Wide - New Cycle Stands and Shelters 16 16148-City Wide - Bus Stop Improvements 31 31163-City Wide - New Street Tree Planting 13 13201-City Wide - Roading Subdivision Contributions 212 212235-Manawatu River (Ashhurst to Riverside Drive) - Cycle/Pedestrian Pathway 378 378 Year three of four279-City Wide - Minor Road Safety Improvements 701 680 Cost estimates revised506-City Wide - Split Rubbish/Recycling Bins 21 21839-Rangitikei Street (SH3) / Featherston Street - Intersection Widening 31 31 Year one of three924-C/fwd - City Wide - Roading Subdivision Contributions - 140 Carried forward balance of programme 201 from 2012/13938-C/fwd - Railway Road (from the Overbridge to Vogel Street) - Cycle Improvements, Including Overbridge “Clip Ons” - 30 Carried forward balance of programme 872 from 2012/13939-C/fwd - City Wide - Minor Road Safety Improvements - 285 Carried forward balance of programme 279 from 2012/13940-C/fwd - City Wide - Traffic Management Model - 386 Carried forward balance of programme 879 from 2012/13941-C/fwd - Mulgrave Street, Ashhurst - Construction of Walkway - 148 Carried forward balance of programme 880 from 2012/13TOTAL 1,404 2,372Funded by Council (Rates and Borrowing) 1,198 2,08848 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Rubbish and Recycling GroupRubbish and Recycling GroupBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue1,933 Recycling 2,108 2,029 Lower landfill gas electricity generation1,195 Waste Collection 1,233 1,083 Reduction in rubbish bag sales3,128 Total Revenue 3,341 3,112expenses6,892 Recycling 7,075 6,730 Efficiency savings mainly due to new collection trucks1,355 Waste Collection 1,399 1,4488,247 Total Expenses 8,474 8,1785,119 NET OPERATING COST OF ACTIVITY 5,132 5,066Rating Requirement(359) Less Depreciation (379) (560)101 Plus Net Capital Renewal (3 Year Average) 109 109564 Plus Debt Repayment 615 6645,426 RATES REQUIREMENT 5,477 5,279Capital Expenditure126 Renewal 139 1141,124 New 72 4781,250 Total Capital Expenditure 212 593Funded By101 Rates 109 1091,149 New Borrowing / (Repayment) 103 4841,250 Total 212 593PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 49

Rubbish and Recycling Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Rubbish & Recycling - Operational10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change374-Waste Minimisation - Funding to Assist Activities 161 161796-BC - Refuse Collection 1 1797-BC - Bunnythorpe Transfer Station 25 52 Cost estimates revisedTotal 187 214Rubbish & Recycling - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change185-Awapuni Landfill - Roading, Drainage and Infrastructure Replacements 72 72649-Recycling - Materials Recovery Facility Renewals 15 15658-Awapuni Landfill - Gas Collection Renewals 52 27 Cost estimates revisedTOTAL 139 114Funded by Council (Rates and Borrowing) 139 114Rubbish & Recycling - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change657-Recycling - Wheelie Bins and Crates to New Growth Areas 21 21721-Awapuni Landfill - Cover and Landscape 52 52930-C/fwd - Waste Minimisation - Community Facility to Assist Diverting Waste Away from Landfill - 212 Carried forward balance of programme 865 from 2012/13942-C/fwd - Awapuni Landfill - Resource Consent “Aftercare” Works - 85 Carried forward balance of programme 3 from 2012/13943-C/fwd - Awapuni Landfill - Site Works for Commercial, Educational and Recreational Activities - 63 Carried forward balance of programme 863 from 2012/13949-C/fwd - Awapuni Landfill - Improved Staff Facilities to Meet Health & Safety Requirements - 46 Carried forward balance of programme 654 from 2012/13TOTAL 72 478Funded by Council (Rates and Borrowing) 72 47850 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Stormwater GroupStormwater GroupBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue2 Stormwater Collection and Disposal 2 22 Total Revenue 2 2expenses3,188 Stormwater Collection and Disposal 3,321 3,172 Lower interest costs due to delayed capital programmes3,188 Total Expenses 3,321 3,1723,186 NET OPERATING COST OF ACTIVITY 3,319 3,170Rating Requirement(1,145) Less Depreciation (1,173) (1,196)510 Plus Net Capital Renewal (3 Year Average) 539 516326 Plus Debt Repayment 398 3602,877 RATES REQUIREMENT 3,083 2,850Capital Expenditure1,080 Renewal 492 4921,706 New 886 1,8562,786 Total Capital Expenditure 1,379 2,349Funded By10 Development Contributions 10 10510 Rates 539 5162,266 New Borrowing / (Repayment) 829 1,8232,786 Total 1,379 2,349PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 51

Stormwater Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Stormwater - OPERATIONAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change779-BC - Bunnythorpe - Stormwater Operation and Maintenance 26 26786-BC - Longburn - Stormwater Operation and Maintenance 4 4Total 30 30Stormwater - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change20-City Wide - Stormwater Pump Station Renewals 21 2121-City Wide - Stormwater Pipe Renewals 364 289 Anticipated reduction in level of pipe replacements22-City Wide - Restoring Flood Capacity of Stormwater Channels 104 104782-BC - Bunnythorpe - Stormwater System Renewal 2 2787-BC - Longburn - Stormwater System Renewal 2 2914-C/fwd - City Wide - Stormwater Pipe Renewals - 75 Carried forward balance of programme 21 from 2012/13TOTAL 492 492Funded by Council (Rates and Borrowing) 492 492Stormwater - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change23-City Wide - Stormwater Upgrading in Conjunction with Roading Improvements 208 20846-City Wide - Installation of Local Stormwater Treatment Devices 104 10450-City Wide - New Pipes to Redirect Stormwater Flows Away from Sewer Systems 104 10451-City Wide - Stormwater Subdivision Contributions 104 104723-City Wide - Upgrading of Under Capacity Stormwater Pipe Systems 364 364785-BC - Bunnythorpe - Stormwater Culverts Upsizing 3 3926-C/fwd - City Wide - Upgrading of Under Capacity Stormwater Pipe Systems - 250 Carried forward balance of programme 723 from 2012/13944-C/fwd - City Wide - Installation of Local Stormwater Treatment Devices - 100 Carried forward balance of programme 46 from 2012/13945-C/fwd - North East Industrial Zone - Contribution for New Stormwater Detention Dam - 620 Carried forward balance of programme 617 from 2012/13TOTAL 886 1,856Funded by Council (Rates and Borrowing) 886 1,85652 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Wastewater GroupWastewater GroupBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue286 Treatment and Disposal 297 297603 Wastewater Collection 627 627889 Total Revenue 924 924expenses2,129 Treatment and Disposal 2,413 4,765 Investigation of discharge into Manawatū river4,677 Wastewater Collection 4,737 3,851 Change in allocation assumptions6,806 Total Expenses 7,150 8,6165,917 NET OPERATING COST OF ACTIVITY 6,227 7,692Rating Requirement(1,884) Less Depreciation (1,919) (2,240)- Less Transfers To/(From) Reserves - (480)1,083 Plus Net Capital Renewal (3 Year Average) 1,132 930319 Plus Debt Repayment 398 3545,435 RATES REQUIREMENT 5,837 6,257Capital Expenditure1,375 Renewal 987 9233,231 New 3,678 7,6134,606 Total Capital Expenditure 4,665 8,536Funded By179 Development Contributions 188 1881,083 Rates 1,132 9303,344 New Borrowing / (Repayment) 3,346 7,4184,606 Total 4,665 8,536PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 53

Wastewater Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1WASTEwater - OPERATIONAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEW722-Totara Road Wastewater Treatment Plant - Sludge Management Optimisation 52 52 Year two of two725-City Wide - Wastewater Education Programme 16 16814-BC - Bunnythorpe - Wastewater Operational Costs 85 45818-BC - Longburn - Operational Costs 93 63907-Wastewater Discharge River Monitoring Programme - 600 Additional monitoring work933-Desludging of Aerated lagoon No. 2 - 480 Funded from reservesTotal 246 1,256Wastewater - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change54-City Wide - Wastewater Pipe Renewal 779 679 Anticipated reduction in level of pipe replacements65-City Wide - Wastewater Pump Station Renewal 62 62179-Totara Road Wastewater Treatment Plant - Minor Equipment Renewals 62 62724-Totara Road Wastewater Treatment Plant - Waste Gas Flare and Boiler Replacements 83 - Year two of programme no longer required960-C/fwd - Totara Road Wastewater Treatment Plant - Replacement of Generator - 19 Carried forward balance of programme 619 from 2012/13961-C/fwd - Totara Road Wastewater Treatment Plant - Digester Lids Refurbishment - 100 Carried forward balance of programme 621 from 2012/13TOTAL 987 923Funded by Council (Rates and Borrowing) 987 92354 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Wastewater GroupWastewater - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEW59-Ashhurst Wastewater Treatment Options 2,598 2,59873-City Wide - Wastewater Subdivision Contributions 104 104198-City Wide Pump Stations - Flow Capacity Improvements 249 249624-Urban Growth - North East Industrial Zone - Downstream Wastewater Network Upgrade 520 520630-City Wide - Seismic Strengthening to Wastewater Structures 208 208 Year one of six905-Longburn Wastewater Connection to Palmerston North - 600 To connect the Longburn wastewater to Palmerston North911-C/fwd - Ashhurst Wastewater - Pipeline to Palmerston North - 2,000 Carried forward balance of programme 59 from 2012/13912-C/fwd - Ashhurst Wastewater Treatment Options - 535 Carried forward balance of programme 857 from 2012/13932-Totara Road Wastewater Treatment Plant - Additional Sludge Thickener Project - 800 New sludge thickener/dewatering machineTOTAL 3,678 7,613Funded by Council (Rates and Borrowing) 3,678 7,613PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 55

Water Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Water GroupBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue- Water Collection - -1,403 Water Distribution 1,458 1,4581,403 Total Revenue 1,458 1,458expenses4,610 Water Collection 4,684 4,874 Change in depreciation assumptions and programme 898-Water Supply Development Plan914 Water Distribution 949 772997 Water Treatment 1,036 1,1136,522 Total Expenses 6,669 6,7595,119 NET OPERATING COST OF ACTIVITY 5,212 5,301Rating Requirement(1,895) Less Depreciation (1,908) (2,092)2,031 Plus Net Capital Renewal (3 Year Average) 2,250 2,149294 Plus Debt Repayment 358 3285,549 RATES REQUIREMENT 5,912 5,687Capital Expenditure1,785 Renewal 2,011 1,9691,130 New 740 1,2042,915 Total Capital Expenditure 2,751 3,173Funded By149 Development Contributions 157 1572,031 Rates 2,250 2,149736 New Borrowing / (Repayment) 343 8662,915 Total 2,751 3,17356 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Water GroupWater - OPERATIONAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEW702-City Wide - Water Education Programme 16 16788-BC - Bunnythorpe - Water Operation and Maintenance 91 41789-BC - Longburn - Water Operation and Maintenance 46 10898-Water Supply Development Plan - 45 To provide a robust and optimised development plan for Council’s water supply system - year one of two972-Independent Assessment to PNCC Fluoridation Scheme - 10 Result of public submissions to draft Annual Plan- to seek independent assessment for and against fluoridationTotal 152 121Water - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change199-City Wide - Water Bore and Headworks Renewal 31 31207-Turitea Water Treatment Plant - Minor Equipment Renewals 31 31214-City Wide - Water Toby and Meter Replacements 125 125218-City Wide - Water Pipe Replacements 1,559 1,451 Anticipated reduction in level of pipe replacements640-Turitea Water Treatment Plant - Replacement of Sludge Pipeline to Wastewater Treatment Plant 208 208 Year one of two643-Turitea Water Treatment Plant - Replacement of Filter Media 52 52 Year two of four790-BC - Bunnythorpe - Water Bore Headwork and Treatment Renewal 3 3792-BC - Longburn - Water Distribution Renewal 2 2958-C/fwd - City Wide - Water Toby and Meter Replacements - 40 Carried forward balance of programme 214 from 2012/13959-C/fwd - City Wide - Water Pipe Replacements - 25 Carried forward balance of programme 218 from 2012/13TOTAL 2,011 1,969Funded by Council (Rates and Borrowing) 2,011 1,969PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 57

Water Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Water - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEW246-City Wide - Water Subdivision Contributions 208 208610-Turitea Valley Road/Pacific Drive - New Water Supply Link Pipe and Reservoir 208 208639-City Wide - Water Bore Security Improvements 36 36653-Turitea Dam - Lower Dam Safety Improvements 21 21794-BC - Longburn - Water Collection Source and Storage Improvement 80 80795-BC - Longburn - Water Distribution System Improvement 187 187893-Turitea Water Treatment Plant - New Retaining walls on Access Road - 143 To provide improved security of water supply to the City and reduce the risk of plant shutdown- year one of four896-Roberts Line Bore Inter-connection - 55 To maintain water pressure in dry summer months and to providealternative when the Turitea Plant is out of action927-C/fwd - BC - Longburn - Water Distribution System Improvement - 20 Carried forward balance of programme 795 from 2012/13929-C/fwd - Turitea Valley Road / Pacific Drive - Water Supply Link - 185 Carried forward balance of programme 856 from 2012/13946-C/fwd - City Wide - Water Bore Security Improvements - 11 Carried forward balance of programme 639 from 2012/13947-C/fwd - Turitea Dam - Installation of Survey Controls - 30 Carried forward balance of programme 644 from 2012/13948-C/fwd - Turitea Dam - Lower Dam Safety Improvements - 20 Carried forward balance of programme 653 from 2012/13TOTAL 740 1,204Funded by Council (Rates and Borrowing) 740 1,20458 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Support Services GroupSupport Services GroupCommercial or Strategic Investments ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue2,812 External Contracts 2,902 3,131 Change in Call Centre model570 Investment Property 586 5231,148 Investments (including Investment Fund) 1,047 330 Programmed reduction of investment portfolio200 Investments in Companies (including Airport) 200 200112 Print Synergy 115 115940 Public Rental Housing 967 1,0025,782 Total Revenue 5,818 5,302expenses2,409 External Contracts 2,514 2,797 Mainly due to a change in the Call Centre model858 Investment Property 759 704 Change in depreciation assumptions267 Investments (including Investment Fund) 276 270613 Investments in Companies (including Airport) 613 61342 Print Synergy 30 36642 Public Rental Housing 661 6384,832 Total Expenses 4,853 5,058(950) NET OPERATING COST OF ACTIVITY (965) (244)PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 59

Support Services Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Budget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRating Requirement(1,675) Less Depreciation (1,752) (1,506)1,616 Plus Net Capital Renewal (3 Year Average) 1,629 1,515172 Plus Debt Repayment 215 162(837) RATES REQUIREMENT (873) (74)Capital Expenditure1,627 Renewal 1,607 1,544375 New 52 1122,002 Total Capital Expenditure 1,659 1,656Funded By- Asset Sales - 4271,616 Rates 1,629 1,515386 New Borrowing / (Repayment) 30 (286)2,002 Total 1,659 1,65660 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Support Services GroupCommercial or Strategic Investments - OPERATIONAL10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEW918-Public Rental Housing - Maintenance of Structures, Internal Fitout and Services - 30 Maintenance component extracted from capital programme 304Total - 30Commercial or Strategic Investments - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change63-Council’s Plant and Vehicles - Replacements 1,032 952 Reduction due to lease trucks for Rubbish and Recycling80-Council’s Plant and Equipment - Replacement 155 15586-Council Wide - Furniture Replacements 24 24221-Print Synergy - Replacement of Print Synergy Machinery 17 17270-Holiday Park - Upgrade of Facilities 56 56304-Public Rental Housing - Replacement of Structures, Internal Fitout and Services 83 53 Maintenance component extracted to operating programme 918311-Gordon Kear Forest Replant 86 86784-Replacement of Council’s Photocopiers/Printers 155 155962-C/fwd - Gordon Kear Forest Replant - 47 Carried forward balance of programme 311 from 2012/13TOTAL 1,607 1,544Funded by Council (Rates and Borrowing) 1,607 1,544Commercial or Strategic Investments - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEW245-Gordon Kear Forest - Development of Internal Roading 52 52950-C/fwd - Gordon Kear Forest - Development of Internal Roading - 48 Carried forward balance of programme 245 from 2012/13971-Mobility Scooters for Public Use - 12 Result of public submissions to draft Annual Plan- to purchase mobility scooters (subject to finding a partner to operate a system for public use)TOTAL 52 112Funded by Council (Rates and Borrowing) 52 112PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 61

Support Services Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Corporate Support ActivityBudget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000s Information and Main Reason for changeRevenue290 Civic Administration Building 298 320 Assumed increase in rental income634 Financial Services 653 903924 Total Revenue 951 1,223expenses859 Civic Administration Building 825 951 Unbudgeted costs in 10 Year Plan for cafeteria, cleaning and security459 Communication 458 454278 Financial Services 286 255- Human Resources - -56 Information Services 78 101,653 Total Expenses 1,647 1,670729 NET OPERATING COST OF ACTIVITY 696 447Rating Requirement(2,210) Less Depreciation (2,190) (1,988)(766) Less Internal Rates Recovered (790) (870)1,828 Plus Net Capital Renewal (3 Year Average) 2,011 1,799107 Plus Debt Repayment 129 128(313) RATES REQUIREMENT (143) (484)Capital Expenditure2,135 Renewal 1,812 2,496- New - 4902,135 Total Capital Expenditure 1,812 2,986Funded By1,828 Rates 2,011 1,799307 New Borrowing / (Repayment) (199) 1,1872,135 Total 1,812 2,98662 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 1 IMPLEMENTING THE 10 YEAR PLAN GROUP OF ACTIVITIES Support Services GroupCorporate Support - Capital Renewal10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for change53-Computer Replacement - Rolling Replacements 438 43855-Application Software Upgrade 74 7458-Network Additions and Upgrades 39 3968-Aerial Photography 26 2685-Council’s Depot Buildings and Structures - Replacement of Components as Required 162 162272-Staff Cafeteria - Replacement of Equipment 5 5281-Civic Administration Building - Refurbishments 810 810318-Telecommunications Replacement - Council Buildings 104 104389-Waldegrave Street Community Agency - Building Refurbishments 154 154951-C/fwd - Replacement of Hand Held Building Inspection Equipment - 115 Carried forward balance of programme 748 from 2012/13952-C/fwd - Council’s Depot Buildings and Structures - Replacement of Components as Required - 125 Carried forward balance of programme 85 from 2012/13953-C/fwd - Civic Administration Building - Refurbishments - 355 Carried forward balance of programme 281 from 2012/13954-C/fwd - Dog Pound - Building Refurbishments - 89 Carried forward balance of programme 830 from 2012/13TOTAL 1,812 2,496Funded by Council (Rates and Borrowing) 1,812 2,496Corporate Support - Capital New10YP AP2013/14 2013/14STATUS ID-NAME $’000s $’000s Information and Main Reason for changeNEWNEW892-Civic Administration Building and Convention Centre - Solar Farm - 240 To promote Council’s long-term economic and environmental sustainability902-Seismic Strengthening of Council Owned Buildings - 250 To ensure Council facilities continue to be available to the public - year one of twoTOTAL - 490Funded by Council (Rates and Borrowing) - 490PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 63

Support Services Group GROUP OF ACTIVITIES IMPLEMENTING THE 10 YEAR PLAN SECTION 1Customer Services ActivityThis Activity is now allocated to all other Activities.Budget 10YP AP2012/13 2013/14 2013/14$’000s $’000s $’000sRevenue- Customer Services - -- Total Revenue - -expenses- Customer Services - -- Total Expenses - -- NET OPERATING COST OF ACTIVITY - -Rating Requirement- Less Depreciation - -- RATES REQUIREMENT - -64 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

financial andrating informationSection2

Section1Here you can see what assumptions have been made in preparing the financialinformation. You’ll also see details about the rating system.Significant ForecastingAssumptionsStatement ofAccounting PoliciesRating System, Rates andFunding Impact StatementsSection2Section Image: Massey Graduation Parade, The SquareSection3

SECTION 2FINANCIAL AND RATING INFORMATION Significant Forecasting AssumptionsSignificant Forecasting AssumptionsSignificant forecasting assumptions and risks underlying the financialestimates in the Annual Plan are identified in the 10 Year Plan 2012/22(see page 155) and cover the following issues:IssueLevel of uncertainty ofassumption at time ofadoption of 10 Year PlanIssueLevel of uncertainty ofassumption at time ofadoption of 10 Year Plan1. Population & household growth2. Worldwide economic downturn3. Social change4. Climate change5. Energy price change6. Natural disasters7. Services provided by Council8. Continuity of external funding9. Sources of funds for future replacement of assets10. NZTA subsidy11. Investments & return on investments12. Airport dividend13. ForestryMedium/highLowLowLowMediumMediumMediumLowLowLowHighMediumLow14. Revaluation of property,plant & equipment assets15. Asset lives16. Depreciation17. Inflation18. Interest rates for borrowing19. Resource consents20. Turitea windfarm21. Weathertight (leaky) homes claims22. Insurance23. Earthquake prone buildings24. Proposed Te Matai Road bridge25. Proposed boundary changeLowLowLowMediumMediumHighHighHighHighMediumHighLowPALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 65

Significant Forecasting Assumptions FINANCIAL AND RATING INFORMATION SECTION 2Some assumptions have changed and impacted on theAnnual Plan. Those changes to assumptions and risks aredetailed as follows:Investments – the 10 Year Plan assumption was that thebalance of the Long Term Investment Fund would be$17.25m as at 1 July 2013 – more of the fund has beenrealised than assumed meaning the balance is nowassumed to be $10.6m at 1 July 2013. This has the effectof reducing the assumed opening debt balance as well.Inflation – inflation rates are now projected to be lowerthan assumed in the 10 Year Plan – projected costs havebeen reduced as a result.Interest rates for borrowing – average rate of 7.1% wasassumed for the 10 Year Plan. This has been reduced to7% given market rates are lower than assumed and theCouncil has access to a wider range of borrowing optionsthan previously since it has obtained a S&P credit ratingand joined the LGFA.Insurance – Insurance premiums continue to rise at a ratefaster than assumed in the 10 Year Plan. An additional$0.2m provision has been included.Earthquake prone buildings – assessments of Council’sbuildings are continuing and it is now considered morelikely than previously thought that some (perhapssignificant) upgrading will be required. A programme of$0.25m has been included in 2013/14 to begin addressingthis.66 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION Statement of accounting policiesStatement of Accounting PoliciesReporting EntityThe Palmerston North City Council (the Council) isa territorial local authority governed by the LocalGovernment Act 2002 and is domiciled in New Zealand.The financial statements in the Annual Plan are thoseof the Council as a separate legal entity and not of theCouncil group.The primary objective of the Council is to provide goodsor services for the community or social benefit ratherthan making a financial return. Accordingly, the Councilhas designated itself and the group as public benefitentities for the purposes of New Zealand equivalentsto International Financial Reporting Standards (NZIFRS).Basis of PreparationStatement of ComplianceThe financial statements of the Council have beenprepared in accordance with the requirements of the LocalGovernment Act 2002, which includes the requirement tocomply with New Zealand generally accepted accountingpractice (NZ GAAP).These financial statements have been prepared inaccordance with NZ GAAP. They comply with FRS 42,and other applicable Financial Reporting Standards, asappropriate for public benefit entities.The External Reporting Board and the New ZealandAccounting Standards Board have issued for commentexposure drafts of new accounting standards. It isproposed these will apply to public benefit entities(PBEs) from 1 July 2014 and will replace currently appliedstandards. As these standards are still uncertain theinformation contained in the Annual Plan has beenprepared based on the current NZ IFRS.Measurement BaseThe financial statements have been prepared on ahistorical cost basis, modified by the revaluation of landand buildings, infrastructural assets, investment property,biological assets and certain financial instruments(including derivative instruments).Functional and Presentation CurrencyThe financial statements are presented in New Zealanddollars and all values are rounded to the nearest thousanddollars ($’000). The functional currency of the Council isNew Zealand dollars.Changes in Accounting PoliciesThe accounting policies set out below have been appliedconsistently to all periods presented in these financialstatements.Significant Accounting PoliciesBasis of consolidationThe purchase method is used to prepare the consolidatedfinancial statements, which involves adding together likeitems of assets, liabilities, equity, income and expenses ona line-by-line basis. All significant intra-group balances,transactions, income and expenses are eliminated onconsolidation.SubsidiariesThe Council consolidates as subsidiaries in the groupfinancial statements all entities where the Council hasthe capacity to control their financing and operatingpolicies so as to obtain benefits from the activities of theentity. This power exists where the Council controls themajority voting power on the governing body or wheresuch policies have been irreversibly predetermined bythe Council or where the determination of such policiesPALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 67

Statement of accounting policies FINANCIAL AND RATING INFORMATION SECTION 2is unable to materially impact the level of potentialownership benefits that arise from the activities of thesubsidiary.The Council measures the cost of a business combinationas the aggregate of the fair values, at the date of exchange,of assets given, liabilities incurred or assumed, in exchangefor control of the subsidiary plus any costs directlyattributable to the business combination.Any excess of the cost of the business combination overthe Council’s interest in the net fair value of the identifiableassets, liabilities and contingent liabilities is recognised asgoodwill. If the Council’s interest in the net fair value ofthe identifiable assets, liabilities and contingent liabilitiesrecognised exceeds the cost of the business combination,the difference will be recognised immediately in thestatement of financial performance.The Council’s investment in its subsidiaries is carried at costin the Council’s own “parent entity” financial statements.Joint VenturesA joint venture is a contractual arrangement whereby twoor more parties undertake an economic activity that issubject to joint control.For jointly controlled assets, the Council recognises in itsfinancial statements its share of jointly controlled assets,the liabilities and expenses it incurs, its share of liabilitiesand expenses incurred jointly, and income from the saleor use of its share of the output of the joint venture.RevenueRevenue is measured at the fair value of considerationreceived or receivable. Where revenue is derived byacting as an agent for another party, the revenue that isrecognised is the commission or fee on that transaction.Rates RevenueRates are set annually by a resolution of the Council andrelate to a financial year. All ratepayers are invoiced withinthe financial year to which the rates have been set. Ratesrevenue is recognised when payable.Revenue from water rates by meter is recognised on anaccrual basis. Unbilled usage, as a result of unread metersat year end, is accrued on an average usage basis.Government SubsidiesThe Council receives government subsidies from NewZealand Transport Agency, which subsidises part ofthe Council’s costs in maintaining the local roadinginfrastructure. The subsidies are recognised as revenueupon entitlement as conditions pertaining to eligibleexpenditure have been fulfilled.Provision of ServicesRevenue from the rendering of services is recognised byreference to the stage of completion of the transaction atbalance date, based on the actual service provided as apercentage of the total services to be provided.Sale of GoodsSales of goods are recognised when a product is sold to thecustomer. Sales are usually in cash or by credit card. Therecorded revenue is the gross amount of the sale, includingcredit card fees payable for the transaction. Such fees areincluded in other expenses.Traffic and Parking InfringementsTraffic and parking infringements are recognised whentickets are issued.Vested AssetsWhere a physical asset is acquired for nil or nominalconsideration the fair value of the asset received isrecognised as revenue. Assets vested in the Council arerecognised as revenue when control over the asset isobtained.Interest and DividendsInterest income is recognised using the effective interestmethod.Dividends are recognised when the right to receivepayment has been established.Development ContributionsDevelopment and financial contributions are recognisedas revenue when the Council provides, or is able to provide,the service for which the contribution was charged.Otherwise development and financial contributions arerecognised as liabilities until such time that the Councilprovides, or is able to provide, the service.68 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION Statement of accounting policiesDevelopment contributions are classified as part of “OtherRevenue”.Borrowing CostsBorrowing costs are recognised as an expense in the periodin which they are incurred.Grant ExpenditureNon-discretionary grants are those grants that are awardedif the grant application meets the specified criteria and arerecognised as expenditure when an application that meetsthe specified criteria for the grant has been received.Discretionary grants are those grants where the Council hasno obligation to award on receipt of the grant applicationand are recognised as expenditure when a successfulapplicant has been notified of the Council’s decision.Income TaxIncome tax expense comprises both current tax anddeferred tax, and is calculated using tax rates that havebeen enacted or substantively enacted by balance date.Current tax is the amount of income tax payable based onthe taxable profit for the current year, plus any adjustmentsto income tax payable in respect of prior years.Deferred tax is the amount of income tax payable orrecoverable in future periods in respect of temporarydifferences and unused tax losses. Temporary differencesare differences between the carrying amount of assetsand liabilities in the financial statements and thecorresponding tax bases used in the computation oftaxable profit.The measurement of deferred tax reflects the taxconsequences that would follow from the manner in whichthe entity expects to recover or settle the carrying amountof its assets and liabilities.Deferred tax liabilities are generally recognised for alltaxable temporary differences. Deferred tax assets arerecognised to the extent that it is probable that taxablesurpluses will be available against which the deductibletemporary differences or tax losses can be utilised.Deferred tax is not recognised if the temporary differencearises from the initial recognition of goodwill or from theinitial recognition of an asset and liability in a transactionthat is not a business combination, and at the time ofthe transaction, affects neither accounting surplus nortaxable surplus.Current tax and deferred tax is recognised against thesurplus or deficit for the period, except to the extent thatit relates to a business combination, or to transactionsrecognised in other comprehensive income or directlyin equity.LeasesFinance LeasesA finance lease is a lease that transfers to the lesseesubstantially all the risks and rewards incidental to ownershipof an asset, whether or not title is eventually transferred.At the commencement of the lease term, the Councilrecognises finance leases as assets and liabilities in thestatement of financial position at the lower of the fair valueof the leased item or the present value of the minimumlease payments.The finance charge is charged to the statement of financialperformance over the lease period so as to produce aconstant periodic rate of interest on the remaining balanceof the liability.The amount recognised as an asset is depreciated overits useful life. If there is no certainty as to whether theCouncil will obtain ownership at the end of the lease term,the asset is fully depreciated over the shorter of the leaseterm and its useful life.Operating LeasesAn operating lease is a lease that does not transfersubstantially all the risks and rewards incidental toownership of an asset. Lease payments under an operatinglease are recognised as an expense on a straight-line basisover the lease term.Cash and Cash EquivalentsCash and cash equivalents includes cash in hand, depositsheld at call with banks, other short-term highly liquidinvestments with original maturities of three months orless, and bank overdrafts.Bank overdrafts are shown within borrowings in currentliabilities in the statement of financial position.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 69

Statement of accounting policies FINANCIAL AND RATING INFORMATION SECTION 2Trade and Other ReceivablesTrade and other receivables are initially measured atfair value and subsequently measured at amortised costusing the effective interest method, less any provisionfor impairment.Financial AssetsFinancial assets and liabilities are initially recognised at fairvalue plus transaction costs unless they are carried at fairvalue through profit or loss in which case the transactioncosts are recognised in the surplus or deficit.Purchases and sales of investments are recognised ontrade-date, the date on which the Council commitsto purchase or sell the asset. Financial assets arederecognised when the rights to receive cash flows fromthe financial assets have expired or have been transferredand the Council has transferred substantially all the risksand rewards of ownership.The Council classifies its financial assets into the followingcategories:• fair value through surplus or deficit,• held-to-maturity investments,• loans and receivables, and• fair value through other comprehensive income.The classification depends on the purpose for which theinvestments were acquired. Management determinesthe classification of its investments at initial recognition.Financial Assets at Fair Value through Surplus or DeficitFinancial assets at fair value through surplus or deficitinclude financial assets held for trading. A financial assetis classified as held for trading if acquired principally forthe purpose of selling in the short term or it is part ofa portfolio of identified financial instruments that aremanaged together and for which there is evidence ofshort-term profit taking. Derivatives are also categorisedas held for trading unless they are designated as hedges(the Council does not apply hedge accounting).Assets in this category are classified as current assetsunless settlement is beyond twelve months and inmanagement’s assessment are likely to be held to maturityor are not expected to be realised within 12 months of thebalance sheet date.After initial recognition they are measured at their fairvalues with gains or losses on re-measurement recognisedin the surplus or deficit.Loans and ReceivablesLoans and receivables are non-derivative financial assetswith fixed or determinable payments that are not quotedin an active market. They are included in current assets,except for maturities greater than 12 months after thebalance date, which are included in non-current assets. TheCouncil’s loans and receivables comprise cash and cashequivalents, trade and other receivables, term deposits,community and related party loans.After initial recognition they are measured at amortisedcost, using the effective interest method, less impairment.Gains and losses when the asset is impaired or derecognisedare recognised in the surplus or deficit.Loans to community organisations made by the Council atnil, or below-market interest rates are initially recognisedat the present value of their expected future cash flows,discounted at the current market rate of return for a similarfinancial instrument. The loans are subsequently measuredat amortised cost using the effective interest method. Thedifference between the face value and present value ofexpected future cash flows of the loan is recognised inthe surplus or deficit as a grant.Held to Maturity InvestmentsHeld to maturity investments are non-derivative financialassets with fixed or determinable payments and fixedmaturities that the Council has the positive intention andability to hold to maturity.After initial recognition they are measured at amortisedcost using the effective interest method less impairment.Gains and losses when the asset is impaired or derecognisedare recognised in the surplus or deficit.Financial Assets at Fair Value through Other ComprehensiveIncomeFinancial assets at fair value through other comprehensiveincome are those that are designated at initial recognitionor are not classified in any of the other categoriesabove. They are included in non-current assets unless70 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION Statement of accounting policiesmanagement intends to dispose of the investment within12 months of the balance date. The Council’s financialassets at fair value through other comprehensive incomeinclude:• Investments that the Council intends to hold longtermbut which may be realised before maturity (i.e.unlisted shares held in Civic Assurance); and• Shareholdings that the Council holds for strategicpurposes.The Council’s investments in its subsidiary companies arenot included in this category as they are held at cost (asallowed by NZ IAS 27 Consolidated and Separate FinancialStatements and NZ IAS 28 Investments in Associates)whereas this category is to be measured at fair value.After initial recognition these investments are measured attheir fair value, with gains and losses recognised directlyin other comprehensive income except for impairmentlosses, which are recognised in the surplus or deficit.On de-recognition the cumulative gain or loss previouslyrecognised in other comprehensive income is reclassifiedfrom equity to the surplus or deficit.Fair ValueThe fair value of financial instruments traded in activemarkets is based on quoted market prices at the balancesheet date. The quoted market price used is the currentbid price.The fair value of financial instruments (including financialassets at fair value through surplus or deficit) that are nottraded in an active market is determined using valuationtechniques. The Council uses a variety of methods andmakes assumptions that are based on market conditionsexisting at each balance date. Quoted market prices ordealer quotes for similar instruments are used for longtermdebt instruments held. Other techniques, such asdiscounted expected cash flows, are used to determinefair value for the remaining financial instruments.Impairment of Financial AssetsAt each balance sheet date the Council assesses whetherthere is any objective evidence that a financial asset orgroup of financial assets is impaired. Any impairmentlosses are recognised in the surplus or deficit.Impairment of a loan or receivable is established whenthere is objective evidence that the Council will not beable to collect all amounts due according to the originalterms. The amount of the impairment is the differencebetween the asset’s carrying amount and the presentvalue of estimated future cash flows, discounted usingthe original effective interest rate.Impairment for all other financial assets is establishedwhen there is objective evidence that the Council willnot be able to collect amounts due on original terms orthere is a significant or prolonged decline in fair value ofan investment. Any impairment losses are recognised inthe surplus or deficit.InventoriesInventories (such as spare parts and other items) held fordistribution or consumption in the provision of services aremeasured at cost adjusted for any loss of service potential.The amount of any write down from cost for any loss ofservice potential is recognised in the surplus or deficit.When land held for development and future resale istransferred from property, plant and equipment toinventory, the fair value at the date of transfer is itsdeemed cost.Costs directly attributable to the developed landare capitalised to inventory, with the exception ofinfrastructural assets which are capitalised to property,plant and equipment.Non-current Assets Held for SaleNon-current assets held for sale are classified as held forsale if their carrying amount will be recovered principallythrough a sale transaction, rather than through continuinguse. Non-current assets held for sale are measured at thelower of their carrying amount and fair value less coststo sell.Any impairment losses for write-downs of non-currentassets held for sale are recognised in the surplus or deficit.Any increases in fair value (less costs to sell) are recognisedup to the level of any impairment losses that have beenpreviously recognised.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 71

Statement of accounting policies FINANCIAL AND RATING INFORMATION SECTION 2Non-current assets (including those that are part of adisposal group) are not depreciated or amortised whilethey are classified as held for sale.Property, Plant and EquipmentProperty, plant and equipment consist of:Operational assets - These include land, buildings,recreation and community facilities, landfill post closure,library books, heritage and art collections, plant andequipment, and motor vehicles.Restricted assets - Restricted assets are parks and reservesowned by the Council which provide a benefit or serviceto the community and cannot be disposed of because oflegal or other restrictions.Infrastructure assets - Infrastructure assets are the fixedutility systems owned by the Council. The infrastructurenetworks owned by the Council include roading andparking, water, wastewater and stormwater networks,waste management assets. Each asset class includes allitems that are required for the network to function, forexample, wastewater reticulation includes reticulationpiping and sewer pump stations.Property, plant and equipment is shown at cost or valuation,less accumulated depreciation and impairment losses.RevaluationThe following plant, property and equipment asset groupsare revalued at least every three years to ensure theircarrying amount does not differ materially from fair value:1. roading (except land under roads) and parkingnetwork,2. water, wastewater and stormwater networks, and3. parks, building property, recreation, sportsfields andcommunity facilities.All other asset classes are carried at depreciated historicalcost.The Council assesses the carrying values of its re-valuedassets annually to ensure that they do not differ materiallyfrom the assets’ fair values. If there is a material difference,then the off-cycle asset classes are revalued.The Council accounts for revaluations of property, plantand equipment on a class of asset basis.Land under roads are generally considered ‘non tradable’due to the perpetual nature of community use. As there isno generally accepted methodology for the valuation ofland under roads, the Council is not revaluing this land andwill carry this at deemed cost. Under NZ IFRS the Councilhas elected to use the fair value of land under roads as at1 July 2005 as deemed cost.Accounting for RevaluationThe results of revaluing are credited or debited to anasset revaluation reserve for that class of asset. Where thisresults in a debit balance in the asset revaluation reserve,this balance is expensed in the statement of financialperformance. Any subsequent increase on revaluationthat off-sets a previous decrease in value recognised inthe statement of financial performance will be recognisedfirst in the statement of financial performance up to theamount previously expensed, and then credited to therevaluation reserve for that class of asset.AdditionsThe cost of an item of property, plant and equipment isrecognised as an asset if, and only if, it is probable thatfuture economic benefits or service potential associatedwith the item will flow to the Council and the cost of theitem can be measured reliably.In most instances, an item of property, plant andequipment is recognised at its cost. Where an asset isacquired at no cost, or for a nominal cost, it is recognisedat fair value as at the date of acquisition.DisposalsGains and losses on disposals are determined bycomparing the proceeds with the carrying amount of theasset. Gains and losses on disposals are reported net inthe statement of financial performance. When revaluedassets are sold, the amounts included in asset revaluationreserves in respect of those assets are transferred toretained earnings.72 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION Statement of accounting policiesSubsequent CostsCosts incurred subsequent to initial acquisition arecapitalised only when it is probable that future economicbenefits or service potential associated with the itemwill flow to the Council and the cost of the item can bemeasured reliably.DepreciationDepreciation is provided on a straight-line basis on allproperty, plant and equipment (except as referred to inthe following paragraph), at rates that will write off thecost (or valuation) of the assets to their estimated residualvalues over their useful lives.Land, land under roads, restricted assets, assets underconstruction, investment properties, biological assets,and the museum, art gallery and heritage assets are notdepreciated.The useful lives and associated depreciation rates of majorclasses of assets have been estimated as follows:Operating AssetsyearsBuildings 50-100Building fit-out 10-50Plant and equipment 4-25Furniture and fittings 4-25Motor vehicles 3-18Computer equipment 2-7Library books 3-10Exhibitions 1-5Leasehold improvements 1-30Infrastructural AssetsYearsRoadingBridges and culverts 25-125Sub base and base course 100Surfaces 1-20Footpaths 15-99Kerb and channel 80Signage 20Signals, streetlights 5-80Trees 100Vehicle crossing 80CarparksCarpark buildings 50Sub base and base course 100Surfaces 2-40Waste ManagementBuildings 50-100Safety fence, portable screens 40Pumps 30Sumps, drainage 100Machinery 15-35Wheelie Bins 15StormwaterPipework 120-175Sumps 150Laterals, manholes 120-150Pumping station/pumps 10-100WastewaterPipeworks, laterals, manholes 120Pumps 15-30Pumping stations 30-100Buildings 50-100Treatment plants 15-120WaterPipeworks, laterals 50-120Hydrants 80Tobies 55-70Valves 80Water meters 15-25Pumping stations 15-100Dams 15-1000Reservoirs 100The residual value and useful life of an asset is reviewed,and adjusted if applicable, at each financial year end.Intangible AssetsGoodwillGoodwill represents the excess of the cost of an acquisitionover the fair value of the Council’s share of the identifiableassets, liabilities and contingent liabilities of the acquiredsubsidiary/associate at the date of acquisition. Goodwill onacquisition of subsidiaries is included in “Intangible Assets”.Separately recognised goodwill is tested for impairmentannually and carried at cost less accumulated impairmentlosses. An impairment loss recognised for goodwill is notreversed in any subsequent period.Goodwill is allocated to cash generating units for thepurposes of impairment testing. The allocation is made tothose cash generating units or groups of cash generatingunits that are expected to benefit from the businesscombination, in which the goodwill arose.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 73

Statement of accounting policies FINANCIAL AND RATING INFORMATION SECTION 2Software Acquisition and DevelopmentAcquired computer software licenses are capitalised onthe basis of the costs incurred to acquire and bring to usethe specific software.Costs that are directly associated with the developmentof software for internal use by the Council, are recognisedas an intangible asset. Direct costs include the softwaredevelopment employee costs and an appropriate portionof relevant overheads.Costs associated with maintaining computer softwareand staff training costs are recognised as an expensewhen incurred.Other Intangible AssetsCost incurred are capitalised on third party land, such asan athletic track, which have long term access availableto residents.Carpark LeasesAcquired carpark leases are capitalised on the basis ofthe costs incurred to acquire and bring to use the specificcarparks.AmortisationThe carrying value of an intangible asset with a finite lifeis amortised on a straight-line basis over its useful life.Amortisation begins when the asset is available for useand ceases at the date that the asset is derecognised. Theamortisation charge for each period is recognised in thesurplus or deficit.The useful lives and associated amortisation rates of majorclasses of intangible assets have been estimated as follows:Computer software and licencesAthletic trackCarpark leasesImpairment of Property, Plant andEquipment and Intangible Assets3-7 years9 years50 yearsIntangible assets that have an indefinite useful life, or notyet available for use, are not subject to amortisation andare tested annually for impairment. Assets that have afinite useful life are reviewed for indicators of impairmentat each balance date. When there is an indicator ofimpairment the asset’s recoverable amount is estimated.An impairment loss is recognised for the amount bywhich the asset’s carrying amount exceeds its recoverableamount. The recoverable amount is the higher of an asset’sfair value less costs to sell and value in use.Value in use is optimised depreciated replacement costfor an asset where the future economic benefits or servicepotential of the asset are not primarily dependent on theasset’s ability to generate net cash inflows and where theentity would, if deprived of the asset, replace its remainingfuture economic benefits or service potential.The value in use for cash generating assets and cashgenerating units is the present value of expected futurecash flows.If an asset’s carrying amount exceeds its recoverableamount, the asset is impaired and the carrying amountis written down to the recoverable amount. For revaluedassets the impairment loss is recognised against therevaluation reserve for that class of asset. Where thatresults in a debit balance in the revaluation reserve, thebalance is recognised in the surplus or deficit.For assets not carried at a revalued amount, the totalimpairment loss is recognised in the surplus or deficit.The reversal of an impairment loss on a revalued assetis credited to the revaluation reserve. However, to theextent that an impairment loss for that class of assetwas previously recognised in the statement of financialperformance, a reversal of the impairment loss is alsorecognised in the surplus or deficit.For assets not carried at a revalued amount (other thangoodwill) the reversal of an impairment loss is recognisedin the surplus or deficit.Forestry AssetsStanding forestry assets are independently revaluedannually at fair value less estimated costs to sell for onegrowth cycle. Fair value is determined based on thepresent value of expected net cash flows discountedat a current market determined pre-tax rate. Thiscalculation is based on existing sustainable felling plansand assessments regarding growth, timber prices, fellingcosts and silvicultural costs and takes into considerationenvironmental, operational and market restrictions.Gains or losses arising on initial recognition of biologicalassets at fair value less estimated costs to sell and from74 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION Statement of accounting policiesa change in fair value less estimated costs to sell arerecognised in the surplus or deficit.The costs to maintain the forestry assets are included inthe surplus or deficit when incurred.Compensation emission units relating to pre-1990 forestland are recorded at nil cost. Possible deforestationpenalties relating to pre-1990 forest land are notrecognised.Investment propertyProperties leased to third parties under operating leasesare classified as investment property unless the propertyis held to meet service delivery objectives, rather than toearn rentals or for capital appreciation.Investment property is measured initially at its cost,including transaction costs.After initial recognition, the Council measures allinvestment property at fair value as determined annuallyby an independent valuer.Gains or losses arising from a change in the fair value ofinvestment property are recognised in the surplus or deficit.Trade and Other PayablesTrade and other payables are initially measured at fair valueand subsequently measured at amortised cost using theeffective interest method.Employee BenefitsShort-term Employee BenefitsEmployee benefits that the Council expects to be settledwithin 12 months of balance date are measured at nominalvalues based on accrued entitlements at current rates of pay.These include salaries and wages accrued up to balancedate, annual leave earned to, but not yet taken at balancedate, retiring and long service leave entitlements expectedto be settled within 12 months, time in lieu and sick leave.The Council recognises a liability for sick leave to theextent that absences in the coming year are expectedto be greater than the sick leave entitlements earned inthe coming year. The amount is calculated based on theunused sick leave entitlement that can be carried forwardat balance date, to the extent that the Council anticipatesit will be used by staff to cover those future absences.Long-term Employee BenefitsEntitlements that are payable beyond 12 months, such aslong service leave and retiring leave, have been calculatedon an actuarial basis. The calculations are based on:• likely future entitlements accruing to staff, based onyears of service, years to entitlement, the likelihoodthat staff will reach the point of entitlement andcontractual entitlements information; and• the present value of the estimated future cash flowsdiscounted at a current market determined rate.Superannuation SchemesDefined Contribution Schemes -Obligations forcontributions to defined contribution superannuationschemes are recognised as an expense in the statementof financial performance as incurred.Defined Benefit Schemes - The Council belongs to theDefined Benefit Plan Contributors Scheme (the scheme),which is managed by the Board of Trustees of the NationalProvident Fund. The scheme is a multi-employer definedbenefit scheme.Insufficient information is available to use defined benefitaccounting, as it is not possible to determine from theterms of the scheme, the extent to which the surplus/deficit will affect future contributions by individualemployers, as there is no prescribed basis for allocation.The scheme is therefore accounted for as a definedcontribution scheme.ProvisionsThe Council recognises a provision for future expenditureof uncertain amount or timing when there is a presentobligation (either legal or constructive) as a result of a pastevent, it is probable that expenditures will be required tosettle the obligation and a reliable estimate can be madeof the amount of the obligation.Provisions are measured at the present value of theexpenditures expected to be required to settle theobligation using a pre-tax discount rate that reflectscurrent market assessments of the time value of moneyPALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 75

Statement of accounting policies FINANCIAL AND RATING INFORMATION SECTION 2and the risks specific to the obligation. The increase in theprovision due to the passage of time is recognised as aninterest expense and is included in “finance costs”.Financial Guarantee ContractsA financial guarantee contract is a contract that requiresthe Council to make specified payments to reimburse theholder for a loss it incurs because a specified debtor failsto make payment when due.Financial guarantee contracts are initially recognised atfair value. If a financial guarantee contract was issued in astand-alone arm’s length transaction to an unrelated party,its fair value at inception is equal to the considerationreceived. When no consideration is received a provisionis recognised based on the probability the Council willbe required to reimburse a holder for a loss incurreddiscounted to present value. The portion of the guaranteethat remains unrecognised, prior to discounting to fairvalue, is disclosed as a contingent liability.Financial guarantees are subsequently measured at theinitial recognition amount less any amortisation, howeverif the Council assesses that it is probable that expenditurewill be required to settle a guarantee, then the provisionfor the guarantee is measured at the present value of thefuture expenditure.BorrowingsBorrowings are initially recognised at their fair value netof transaction costs incurred. After initial recognition, allborrowings are measured at amortised cost using theeffective interest method.Borrowings are classified as current liabilities unless theCouncil has an unconditional right to defer settlement ofthe liability for at least 12 months after the balance date.EquityEquity is the community’s interest in the Council and ismeasured as the difference between total assets and totalliabilities. Equity is disaggregated and classified into thefollowing components• Retained earnings• Special funds reserves• Asset revaluation reserves• Investment fluctuation reserve and• Fair value through other comprehensive income.Special Funds ReservesSpecial funds reserves are a component of equity generallyrepresenting a particular use to which various parts ofequity have been assigned. Special funds reserves maybe legally restricted or created by the Council.Special funds reserves are those subject to specificconditions accepted as binding by the Council and whichmay not be revised by the Council without reference tothe Courts or a third party. Transfers from these reservesmay be made only for certain specified purposes or whencertain specified conditions are met.Also included in special funds reserves are reservesrestricted by Council decision. The Council may alterthem without references to any third party or the Courts.Transfers to and from these reserves are at the discretionof the Council.The Council’s objectives, policies and processes formanaging capital are described in a separate note to itsAnnual Report.Asset Revaluation ReservesAsset revaluation reserves relate to the revaluation ofproperty, plant and equipment to fair value.Investment Revaluation ReserveInvestment revaluation reserve relates to the cumulativenet change of fair value of financial assets at fair valuethrough other comprehensive income.Goods and Services Tax (GST)All items in the financial statements are stated exclusive ofGST, except for trade and other receivables and trade andother payables, which are stated on a GST inclusive basis.Where GST is not recoverable as input tax it is recognisedas part of the related asset or expense.The net amount of GST recoverable from, or payable to,the Inland Revenue Department (IRD) is included as partof receivables or payables in the statement of financialposition.The net GST paid to, or received from the IRD, includingthe GST relating to investing and financing activities, isclassified as an operating cash flow in the statement ofcash flows.76 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION Statement of accounting policiesCommitments and contingencies are disclosed exclusiveof GST.Cost AllocationThe Council has derived the cost of service for eachsignificant activity of the Council using the cost allocationsystem outlined below.Direct costs are those costs directly attributable to asignificant activity. Indirect costs are those costs whichcannot be identified in an economically feasible mannerwith a specific significant activity.Direct costs are charged directly to significant activities.Indirect costs are charged to significant activities usingappropriate cost drivers such as actual usage, staffnumbers and floor area.Critical AccountingEstimates and AssumptionsIn preparing these financial statements the Council hasmade estimates and assumptions concerning the future.These estimates and assumptions may differ from thesubsequent actual results. Estimates and assumptionsare continually evaluated and are based on historicalexperience and other factors, including expectations orfuture events that are believed to be reasonable under thecircumstances. The estimates and assumptions that havea significant risk of causing a material adjustment to thecarrying amounts of assets and liabilities or the Council’sfinancial performance are disclosed on pages 65 and 66under “Significant Forecasting Assumptions”.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 77

The rating system, rates...statement FINANCIAL AND RATING INFORMATION SECTION 2Rating System, Rates andFunding Impact Statements1. IntroductionRating incidence is governed by the Council’s Revenueand Financing Policy and its Rating Policies. Thissection outlines details of the present rating systemused by the Council. It also incorporates the FundingImpact Statements in the form prescribed by the LocalGovernment (Financial Reporting) Regulations 2011.At various points within this section a level of rate or chargeis outlined. These are indicative figures included to giveratepayers an estimate of what their level of rates is likelyto be in the forthcoming year. They are not necessarily theactual figures as these will not be known until the Council’srating information database is finalised. Rates figures inthis section are GST inclusive unless otherwise specified.2. Rating ObjectivesFor many years the Council has embraced the followingas being its rating objectives:• to encourage growth and confidence in the City byoperating a stable, easily understood method ofsetting rates• to set rates in a manner which is fair and equitable asbetween various ratepayers and classes of ratepayerand which is consistent with Council’s planningobjectives• to ensure that all citizens contribute to the cost ofproviding City services by charging for use on a userpays basis where practicable• to foster the sense of a single community byoperating a common system throughout the City.3. Components of the PresentRating System - A SummaryThe Council’s rating system, designed to meet theseobjectives, is utilised to fund the net cost of operationsand programmes outlined in the 10 Year Plan and AnnualPlan. It comprises the following components:A common system applies throughout the City.Targeted rates, in the form of fixed charges (as proxyuser charges) are made to cover the costs of thoseservices which are identifiable by property (water supply,wastewater disposal, and rubbish and recycling). Inaddition significant non-residential users of water aremetered and some non-residential wastewater users arecharged on the basis of the number of pans.A Uniform Annual General Charge (UAGC) is applied as afixed amount to every rating unit within the City. It is usedas a mechanism to ensure each rating unit contributes aminimum amount of the general rate and also to moderaterates on high land value properties.A General Rate, based on the land value, is applied to eachrating unit, with different rates (differentials) applying toeach property category.The categories in the Council’s differential rating schemereflect differing property use and can be broadly groupedas follows:• Single unit residential• Multi-unit residential• Non-residential• Rural and semi-serviced.Differential surcharges (i.e. a higher rate in the $) areapplied to multi-unit residential and non-residentialproperties whilst lower rates are applied to single unitresidential and rural/semi-serviced properties.78 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION The rating system, rates...statement4. Examples of ProposedRates for 2013/14Examples of proposed rates for 2013/14 are shown in thefollowing table:LandValueSingle unit residentialAverageMedianQuartile 1Quartile 3Two unit residentialAverageMedianQuartile 1Quartile 3Non-residentialAverageMedianQuartile 1Quartile 3136,000112,00090,000155,000147,000126,000104,000175,000584,000320,000175,000630,000Rates2012/132,0101,8571,7162,1313,2373,0212,7953,52513,2287,5744,46814,213Rural & semi-serviced (5ha or more)AverageMedianQuartile 1Quartile 3831,000440,000255,0001,035,0001,6281,1258881,890Rates2013/142,0861,9281,7842,2113,3743,1492,9133,67413,8037,9114,67514,8291,6981,1749261,971LandValueRates2012/13Rural & semi-serviced (between 0.2 & 5 ha)AverageMedianQuartile 1Quartile 3MiscellaneousAverageMedianQuartile 1Quartile 3229,000220,000175,000255,000347,000205,000100,000380,0001,2471,2201,0851,3243,5332,3161,4173,815Rates2013/141,3001,2721,1321,3823,6832,4151,4783,977The three yearly revaluation of the City for rating purposeswas undertaken in 2012 and those valuations will be thebase for general rates set in 2013/14.The examples should be read having regard for thefollowing assumptions:• the Council’s total rates revenue will increase by 3.9%• the Uniform Annual General Charge will be $585 perrating unit ($560 in 2012/13)• targeted rates in the form of fixed annual chargeswill be applied for water supply ($218); wastewaterdisposal ($184); recycling ($205) ($210, $160, $213respectively in 2012/13)• a targeted rate for wastewater disposal will be set onnon-residential properties on the basis of the numberof pans on the rating unit. The charge per pan will be$184 compared with $160 per pan in 2012/13• the examples shown for non-residential,miscellaneous and rural/semi-serviced propertiesdo not include the charges (either fixed or metered)for water, wastewater or recycling as these vary fromproperty to property.5. Components of the RatingSystem - More Detail5.1 General RateThe Council proposes to set a general rate based on theland value of each rating unit in the City.The general rate will be set on a differential basis basedon land use (see description below), with the differentialfactors as shown in the following table:PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 79

The rating system, rates...statement FINANCIAL AND RATING INFORMATION SECTION 2Differential GroupCodeR1R2R3R4R5BriefdescriptionSingle unitresidentialDifferentialfactor(expressed as% of groupcode MS)Rate(centsin $ of LV)EstimatedBalance(approx 74) 0.6573Two unitresidential 120 1.0712Three unitresidential 130 1.1605Four unitresidential 140 1.2498Five unitresidential 150 1.3391R6 Six unit residential 160 1.4283R7R8Seven unitresidential 170 1.5176Eight or more unitresidential 180 1.6069MS Miscellaneous 100 0.8927CI*CRCAFLNon-residential(Commercial/Industrial) 250 2.2318Commercialresearch 250 2.2318Commercialaccommodation 250 2.2318Rural & semiserviced(5ha ormore) 15 0.1339* In respect of multi-storey buildings in group code CI an additional surcharge shallbe applied equivalent to 5% on the basic general rate(i.e. group code MS - miscellaneous) for each storey four and over to a maximum of 25%.Differential GroupCodeFSFMBriefdescriptionDifferentialfactor(expressed as% of groupcode MS)Rate(centsin $ of LV)EstimatedRural &semi-serviced(0.2ha or less) 50 0.4464Rural & semiserviced(between0.2 & 5ha) 35 0.31245.2 Uniform Annual General ChargeThe Council proposes to set a uniform annual generalcharge of $585 ($560 for 2012/13) on each rating unit.5.3 Targeted RatesFor the purposes of the targeted rates proposed below,a ’separately used or inhabited part of a rating unit’ isdefined as:“Any part of the rating unit separately used or inhabited bythe owner or any other person who has the right to use orinhabit that part by virtue of a tenancy, lease, licence or otheragreement. At a minimum, the land or premises intendedto form the separately used or inhabited part of the ratingunit must be capable of actual habitation, or actual use bypersons for purposes of conducting a business.”5.3.1 Water SupplyThe Council proposes to set a targeted rate for watersupply on the basis of a fixed amount per separatelyused or inhabited part of a rating unit which is eitherconnected to the scheme or for which connection isavailable. The charge will be set on a differential basisbased on the availability of the service (either “connected”or “serviceable”). Connected means the rating unit isconnected to a Council operated waterworks whilstserviceable means the rating unit is not connected to aCouncil operated waterworks but is within 100 metres ofsuch waterworks.Rating units which are not connected to the scheme, andwhich are not serviceable will not be liable for this rate.The estimated rates for the 2013/14 year are:Connected:Serviceable:$218 per part$109 per partInstead of the above the Council proposes to set a meteredwater targeted rate for water supply that is based onthe volume of water supplied to all rating units wherethe volume supplied is considered to be ‘extraordinary’as defined in the City’s water supply bylaw. All waterconsumed will be charged at an estimated rate of $0.966per cubic metre with additional charges based on the sizeof the meter connection as follows:80 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION The rating system, rates...statementMeter Size annual Charge $Up to 15mm 40.2519 to 20mm 41.4025mm 69.0032mm 115.0040mm 189.7550mm 232.3075 to 80mm 316.25100mm 411.70150mm 548.55200mm 865.955.3.2 Wastewater DisposalThe Council proposes to set a targeted rate for wastewaterdisposal. For residential rating units it shall be set on thebasis of a fixed charge per separately used or inhabitedpart and for all other properties a fixed charge per ratingunit. The charge will be set on a differential basis basedon the availability of the service (either “connected”or “serviceable”). Connected means the rating unit isconnected to a public wastewater drain whilst serviceablemeans the rating unit is not connected to a publicwastewater drain but is within 30 metres of such a drain.Rating units which are not connected to the scheme, andwhich are not serviceable will not be liable for this rate.The estimated rates for the 2013/14 year are:Connected:$184 per partServiceable:$92 per partIn addition for the 2013/14 year the Council proposes toset a targeted rate for non-residential rating units of $184per pan for each pan in excess of three.5.3.3 RecyclingThe Council proposes to set a targeted rate for recyclingon the basis of a fixed amount per separately used orinhabited part of a rating unit for which the Councilis prepared to provide the collection service. Whereratepayers elect, and the Council agrees, additional levelsof service may be provided. Each additional level of servicewill be charged at a rate of $205 this may include chargesto non-rateable rating units where the service is provided.Rating units for which the Council is not prepared toprovide the service will not be liable for these rates.The estimated rates for the 2013/14 year are:Recycling$205 per part5.3.4 Warm Palmerston NorthThe Council proposes to set a voluntary targeted rate onproperties that have benefited from the installation ofinsulation through the Warm Up Palmy Home InsulationScheme. The rate is calculated as a percentage of theservice amount (the cost of the installation) until theservice amount and the costs of servicing the serviceamount are recovered. For 2013/14 the rate is proposedto be 16%.5.4 Differential Matters and Categories5.4.1 Objectives of Differentialsfor General RateThe Council believes that a uniform general rate basedon land value would not produce a fair and equitableallocation of rates and so operates a system of differentialsbased on land use. Descriptions of the land use categoriesare shown in 5.4.2.The Council describes the relationship between the ratescharged to each group in terms of a factor expressed asa percentage of the rate which would apply were thereno differential rating in place i.e. the group described asMiscellaneous (MS). Each year the Council reviews thedifferential factors applied to each land use category.The factors proposed for 2013/14 are outlined in 5.1 andremain unchanged from 2012/13. The factors have beendeveloped to address the following matters:• rating units containing more than one residentialunit will place an increasing demand on Councilservices as the number of units increase• the land value for non-residential property is oftendriven by different influences than the land value forresidential or rural land and therefore is not directlycomparable as a rating base• the Council’s Revenue and Financing Policy identifiesa number of activities where it believes nonresidentialusers gain a greater benefit than otherusers so should bear a greater share of the cost• for large rural rating units a pure land valuePALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 81

The rating system, rates...statement FINANCIAL AND RATING INFORMATION SECTION 2system would produce rates charges, which wereunsustainable• rural and semi-serviced rating units generally havelimited or in some cases no access to some Councilactivities funded through the general rate• rating units containing multi-storey buildings gainmore benefit from the provision of Council activitiesthan is reflected by the application of a uniform ratein the dollar of land value.5.4.2 Differentials based on Land UseThe Council proposes to differentiate the General Rate onthe basis of land use. Properties which have more than oneuse (or where there is doubt as to the relevant primary use)will be placed in a category with the highest differentialfactor or if, in the Council’s opinion it is fair and reasonableto do so, then the Council may allocate each part to themost appropriate category. Note that, subject to the rightsof objection to the rating information database set out insections 29 and 39 of the Local Government (Rating) Act2002 the Council is the sole determiner of the categories.The following differential categories will be used:Single Unit Residential (R1)Every rating unit not otherwise classified:• Two hectare or less in area having a predominantor exclusive residential use and on which is erectedone residential unit; or• Two hectare or less in area and having no predominantuse, on which no building is erected but upon whichthe erection of residential units is a permitted activityunder the City’s District Plan.Multi-unit residential (R2 - R8)Every rating unit not otherwise classified on which iserected:• two residential units (R2); or• three residential units (R3); or• four residential units (R4); or• five residential units (R5); or• six residential units (R6); or• seven residential units (R7); or• eight or more residential units (R8)Miscellaneous (MS)Every rating unit (or division thereof) of the followingtypes:• non-rateable property as defined in the LocalGovernment (Rating) Act 2002• property that is used for parking that is available forpublic use in accordance with criteria determinedby the Council• where the ratepayer conducts or permits to beconducted a business, being a Home Occupation asdefined in the City’s District Plan, and which wouldotherwise qualify for inclusion in group code R1• serviced property that is more than two hectare inarea, having a predominant or exclusive residentialuse and on which is erected one residential unit• vacant, serviced property not classified in groupcodes R1 or FL or elsewhere as follows:• property where non-residential use is a permittedactivity under the City’s District Plan• property over two hectare in area where residentialuse is a permitted activity under the City’s District Plan.• property which, due to its location, would otherwisequalify for inclusion in group code FL, FS or FM butwhich is not used for predominantly residential,farming, military or not-for-profit communitypurposes. The Council may determine that onlya portion of the property shall be classified as MSand that the remainder is classified as FL, FS or FM,as appropriate.Non-Residential (CI, CR & CA)CI – Every rating unit not otherwise classified which hasnot a predominant or exclusive residential use (exceptproperty used for parking and/or vacant serviced propertyas defined in group code MS). Multi-storey properties, fourstoreys and over will be levied an additional differentialsurcharge.CR – Every rating unit not otherwise classified which ispredominantly used for research purposes in accordancewith criteria determined by the Council.CA – Every rating unit on which is erected a licensedhotel or an apartment building or residential institutionand including a guest house, rooming house, boardinghouse, private hotel, motel, residential club or hostel.(Taverns which have no residential accommodation shallbe included in group code CI).82 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION The rating system, rates...statementRural & Semi-serviced (FL, FS & FM)FL – Every rating unit not otherwise classified which doesnot have access to the City’s sewage disposal system andhas either (a) an area of five hectares or more or (b) an arealess than five hectares but on which there is no residentialdwelling unit or non-residential improvements.In determining whether for rating purposes access isdeemed to be available the Council will have regard tothe following:• whether the Council will allow the rating unit to beconnected to the sewage disposal system• whether the rating unit is capable of subdivision andif so, the ratepayer’s intentions regarding subdivision• the scope of any sub-divisional plan deposited withthe District Land Registrar• the portion of the property with access to services,which in the opinion of the Council, would form areasonable first stage of subdivision• the prevailing economic climate as it affectssubdivision and the supply of serviced land withinthe City.Based on its assessment of the matters outlined abovethe Council will determine one of the following ratingapproaches:• reclassify the full property to the higher rated groupin the year immediately succeeding access to thesystem becoming available• reclassify only a portion of the property to the higherrated group code with the circumstances beingreviewed annually• retain the present classification and review itannually.FS – Every rating unit which would otherwise qualify forinclusion in group code FL but which has an area of 0.2hectares or less and on which there is either a residentialdwelling or non-residential improvements.FM – Every rating unit which would otherwise qualify forinclusion in group code FS but which has an area greaterthan 0.2 hectares and less than five hectares. The Councilmay consider reclassifying only a portion of the propertyinto a higher rated group code once access is available tothe City’s sewage disposal system. In that event the samecriteria as for group code FL will apply.6. Early Payment of RatesSections 55 and 56 of the Local Government (Rating) Act2002 empowers councils to accept early payment of rates.The Council will accept any payment of rates for either thecurrent or future years in advance of the due date.7. Rates Payable by InstalmentThe Council provides for rates to be paid in four equalinstalments but it reserves the right to issue the firstinstalment as an interim one based on 25% of the ratespayable in the previous rating year. For the 2013/14 yearthe due dates (i.e. final dates for payment without incurringpenalty charges) will be:Instalment One: 30 August 2013Instalment Two: 29 November 2013Instalment Three: 28 February 2014Instalment Four: 30 May 2014Ratepayers may elect to pay on a more regular basis if theychoose. They may also elect to pay the full year’s rates inone lump sum prior to the date for Instalment Two withoutincurring penalty charges on Instalment One.Rates may be paid using any one of a number of paymentmethods acceptable to the Council including direct debits,cheques by mail, cheques or cash or EFTPOS at Council’smain office or service centre in Ashhurst, direct credits andother bank transfer methods. Payment by credit card canbe made using the internet, subject to the payment of aconvenience fee. The due date for metered water targetedrates will be the 20th of the month following invoice date.8. Rates PenaltiesTo provide an incentive for rates to be paid by the duedate, penalties will be imposed when rates are not paidon time. A penalty of 10 per cent will be added to anyportion of an instalment remaining unpaid after the duedate for payment.A second ten percent penalty will be added to all rates(including penalties) remaining unpaid as at 1 July 2014with further additional charges of up to 10 percent to beadded at six monthly intervals thereafter to all such rateswhich continue to remain unpaid.Penalties will not be applied to the metered watertargeted rate.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 83

The rating system, rates...statement FINANCIAL AND RATING INFORMATION SECTION 29. Source and Application ofFunds Statements (FundingImpact Statements)The Local Government (Financial Reporting) Regulations2011 prescribe the format for statements showing thesources and application of funds for the whole of Counciland for each group of activities of the Council.These new statements are designed to show whereoperational and capital funding come from, and howthey are used.This information is presented in two ways, firstly at theWhole of Council level, and in a slightly different form atthe “Group of Activities” level. At the Group of Activitieslevel, internal revenue and expenditure are shown asseparate items, while at the Whole of Council level theyare not displayed as the amounts balance each other out.In addition to the statements mentioned the Council is alsoproviding Activity Financial Statements which shows therevenue and expenses for the services provided, as wellas how the rates are calculated (see section 1).Please Note: The totals appear different between thetwo statements due to the different way the figures havebeen categorised. The Funding Impact Statements includerates revenue, whereas the Activity Financial Statementsseparate rates out to clearly show how they’ve beencalculated. In addition, the Activity Financial Statementsinclude depreciation in the expenses to show the full costof the activity, while this is not included in the FundingImpact Statements.Capital Expenditure is grouped into three broad categoriesbased on which one the programme most relates to. Thethree categories are:• to meet additional demand,• to improve the level of service, or• to replace existing assets.The three categories do not clearly represent the factthat some programmes will contribute to more thanone purpose, but the actual splits can be seen on theprogramme pages (see section 1).84 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION The rating system, rates...statementWHOLE OF COUNCILBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding57,174 General Rates, UAGC & Rates Penalties 60,156 59,27016,409 Targeted Rates (excl Water by Meter) 17,226 17,2232,462 Subsidies & Grants for Operating Purposes 2,652 2,5274,680 Fees & Charges (incl Water by Meter) 4,596 4,779894 Interest and Dividends from investments 804 51419,165 Other Operating Funding 19,893 19,685100,784 Total Operating Funding 105,326 103,998applications of Operating Funding73,030 Payments to Staff and Suppliers 75,142 76,56610,795 Finance Costs 11,313 9,724- Other operating funding applications - -83,824 Total Applications of Operating Funding 86,455 86,29016,959 Surplus/(Deficit) of Operating Funding 18,871 17,708Sources of Capital Funding3,363 Subsidies for Capital Expenditure 2,087 3,247995 Development & Financial Contributions 1,045 1,0459,083 Increase/(Decrease) in Debt 5,653 16,110435 Gross proceeds from sale of assets 427 427- Lump sum contributions - -13,876 Total Sources of Capital Funding 9,213 20,830applications of Capital FundingCapital Expenditure:-2,647 - to meet additional demand 1,147 1,28712,117 - to improve the level of service 7,207 14,78918,821 - to replace existing assets 19,730 22,461- Increase/(Decrease) in Reserves - -(2,750) Increase/(Decrease) of Investments - -30,835 Total Applications of Capital Funding 28,084 38,538(16,959) Surplus/(Deficit) of Capital Funding (18,871) (17,708)- Total Funding Surplus/(Deficit) - -Leadership - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding7,913 General Rates, UAGC & Rates Penalties 8,236 8,127- Targeted Rates (excl Water by Meter) - -- Subsidies & Grants for Operating Purposes - -165 Fees & Charges (incl Water by Meter) 170 17031 Internal Charges & Overheads Recovered 32 3212 Other Operating Funding 141 1418,120 Total Operating Funding 8,580 8,470applications of Operating Funding6,316 Payments to Staff and Suppliers 6,718 6,614- Finance Costs - -1,784 Internal Charges & Overheads Applied 1,840 1,854- Other operating funding applications - -8,100 Total Applications of Operating Funding 8,558 8,46820 Surplus/(Deficit) of Operating Funding 22 2Sources of Capital Funding- Subsidies for Capital Expenditure - -- Development & Financial Contributions - -(20) Increase/(Decrease) in Debt (22) (2)- Gross proceeds from sale of assets - -- Lump sum contributions - -(20) Total Sources of Capital Funding (22) (2)applications of Capital FundingCapital Expenditure:-- - to meet additional demand - -- - to improve the level of service - -- - to replace existing assets - -- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -- Total Applications of Capital Funding - -(20) Surplus/(Deficit) of Capital Funding (22) (2)- Total Funding Surplus/(Deficit) - -PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 85

The rating system, rates...statement FINANCIAL AND RATING INFORMATION SECTION 2COMMUNITY SUPPORT - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding3,429 General Rates, UAGC & Rates Penalties 3,811 3,938- Targeted Rates (excl Water by Meter) - -72 Subsidies & Grants for Operating Purposes 74 65- Fees & Charges (incl Water by Meter) - -- Internal Charges & Overheads Recovered - -1,895 Other Operating Funding 1,961 2,0635,397 Total Operating Funding 5,846 6,066applications of Operating Funding3,209 Payments to Staff and Suppliers 3,283 3,561102 Finance Costs 218 1781,329 Internal Charges & Overheads Applied 1,392 1,437- Other operating funding applications - -4,640 Total Applications of Operating Funding 4,893 5,175757 Surplus/(Deficit) of Operating Funding 953 891Sources of Capital Funding- Subsidies for Capital Expenditure - -- Development & Financial Contributions - -552 Increase/(Decrease) in Debt 2,443 3,022- Gross proceeds from sale of assets - -- Lump sum contributions - -552 Total Sources of Capital Funding 2,443 3,022applications of Capital FundingCapital Expenditure:-- - to meet additional demand - -75 - to improve the level of service 15 841,233 - to replace existing assets 3,381 3,829- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -1,308 Total Applications of Capital Funding 3,396 3,913(757) Surplus/(Deficit) of Capital Funding (953) (891)- Total Funding Surplus/(Deficit) - -WORK AND CITY PROMOTION - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding3,065 General Rates, UAGC & Rates Penalties 3,160 2,896- Targeted Rates (excl Water by Meter) - -- Subsidies & Grants for Operating Purposes - -- Fees & Charges (incl Water by Meter) - -156 Internal Charges & Overheads Recovered 162 1621,039 Other Operating Funding 1,070 1,0684,260 Total Operating Funding 4,392 4,125applications of Operating Funding3,855 Payments to Staff and Suppliers 3,970 3,756- Finance Costs - -209 Internal Charges & Overheads Applied 213 166- Other operating funding applications - -4,064 Total Applications of Operating Funding 4,183 3,922196 Surplus/(Deficit) of Operating Funding 209 203Sources of Capital Funding- Subsidies for Capital Expenditure - -- Development & Financial Contributions - -(165) Increase/(Decrease) in Debt 30 35- Gross proceeds from sale of assets - -- Lump sum contributions - -(165) Total Sources of Capital Funding 30 35applications of Capital FundingCapital Expenditure:-- - to meet additional demand - -- - to improve the level of service - -32 - to replace existing assets 238 238- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -32 Total Applications of Capital Funding 238 238(196) Surplus/(Deficit) of Capital Funding (209) (203)- Total Funding Surplus/(Deficit) - -86 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION The rating system, rates...statementLEISURE - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding25,807 General Rates, UAGC & Rates Penalties 26,784 26,154- Targeted Rates (excl Water by Meter) - -50 Subsidies & Grants for Operating Purposes 52 52- Fees & Charges (incl Water by Meter) - -81 Internal Charges & Overheads Recovered 84 842,359 Other Operating Funding 2,427 2,43528,297 Total Operating Funding 29,347 28,725applications of Operating Funding14,106 Payments to Staff and Suppliers 14,326 14,1371,944 Finance Costs 2,048 1,7288,391 Internal Charges & Overheads Applied 8,663 8,669- Other operating funding applications - -24,441 Total Applications of Operating Funding 25,037 24,5343,856 Surplus/(Deficit) of Operating Funding 4,310 4,191Sources of Capital Funding447 Subsidies for Capital Expenditure 91 1,051179 Development & Financial Contributions 188 1881,977 Increase/(Decrease) in Debt 982 2,235- Gross proceeds from sale of assets - -- Lump sum contributions - -2,603 Total Sources of Capital Funding 1,260 3,473applications of Capital FundingCapital Expenditure:-- - to meet additional demand - -3,006 - to improve the level of service 1,846 3,8243,454 - to replace existing assets 3,724 3,841- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -6,459 Total Applications of Capital Funding 5,570 7,664(3,856) Surplus/(Deficit) of Capital Funding (4,310) (4,191)- Total Funding Surplus/(Deficit) - -REGULATORY - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding3,803 General Rates, UAGC & Rates Penalties 4,029 3,653- Targeted Rates (excl Water by Meter) - -- Subsidies & Grants for Operating Purposes - -3,115 Fees & Charges (incl Water by Meter) 2,971 3,154964 Internal Charges & Overheads Recovered 995 98834 Other Operating Funding 36 367,917 Total Operating Funding 8,030 7,830applications of Operating Funding4,514 Payments to Staff and Suppliers 4,519 4,603- Finance Costs - -3,382 Internal Charges & Overheads Applied 3,497 3,214- Other operating funding applications - -7,895 Total Applications of Operating Funding 8,016 7,81722 Surplus/(Deficit) of Operating Funding 14 14Sources of Capital Funding- Subsidies for Capital Expenditure - -- Development & Financial Contributions - -2 Increase/(Decrease) in Debt 28 28- Gross proceeds from sale of assets - -- Lump sum contributions - -2 Total Sources of Capital Funding 28 28applications of Capital FundingCapital Expenditure:-- - to meet additional demand - -- - to improve the level of service - -24 - to replace existing assets 41 41- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -24 Total Applications of Capital Funding 41 41(22) Surplus/(Deficit) of Capital Funding (14) (14)- Total Funding Surplus/(Deficit) - -PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 87

The rating system, rates...statement FINANCIAL AND RATING INFORMATION SECTION 2ROADING and parking - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding11,431 General Rates, UAGC & Rates Penalties 12,070 12,211- Targeted Rates (excl Water by Meter) - -2,229 Subsidies & Grants for Operating Purposes 2,298 2,182- Fees & Charges (incl Water by Meter) - -- Internal Charges & Overheads Recovered - -4,537 Other Operating Funding 4,678 4,11818,197 Total Operating Funding 19,046 18,511applications of Operating Funding8,237 Payments to Staff and Suppliers 8,515 8,5152,831 Finance Costs 2,897 2,4053,537 Internal Charges & Overheads Applied 3,626 3,719- Other operating funding applications - -14,604 Total Applications of Operating Funding 15,038 14,6383,592 Surplus/(Deficit) of Operating Funding 4,008 3,873Sources of Capital Funding2,917 Subsidies for Capital Expenditure 1,996 2,197478 Development & Financial Contributions 502 5023,080 Increase/(Decrease) in Debt (145) 817- Gross proceeds from sale of assets - -- Lump sum contributions - -6,474 Total Sources of Capital Funding 2,353 3,515applications of Capital FundingCapital Expenditure:-2,247 - to meet additional demand 212 3522,965 - to improve the level of service 1,192 1,6334,855 - to replace existing assets 4,956 5,402- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -10,067 Total Applications of Capital Funding 6,360 7,388(3,592) Surplus/(Deficit) of Capital Funding (4,008) (3,873)- Total Funding Surplus/(Deficit) - -RUBBISH & RECYCLING - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding- General Rates, UAGC & Rates Penalties - -5,426 Targeted Rates (excl Water by Meter) 5,477 5,279110 Subsidies & Grants for Operating Purposes 227 227- Fees & Charges (incl Water by Meter) - -- Internal Charges & Overheads Recovered - 6693,018 Other Operating Funding 3,114 2,8858,554 Total Operating Funding 8,818 9,060applications of Operating Funding1,003 Payments to Staff and Suppliers 1,039 1,5271,285 Finance Costs 1,270 1,1005,600 Internal Charges & Overheads Applied 5,786 5,660- Other operating funding applications - -7,888 Total Applications of Operating Funding 8,095 8,288665 Surplus/(Deficit) of Operating Funding 723 773Sources of Capital Funding- Subsidies for Capital Expenditure - -- Development & Financial Contributions - -585 Increase/(Decrease) in Debt (512) (180)- Gross proceeds from sale of assets - -- Lump sum contributions - -585 Total Sources of Capital Funding (512) (180)applications of Capital FundingCapital Expenditure:-- - to meet additional demand - -778 - to improve the level of service - 275472 - to replace existing assets 212 318- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -1,250 Total Applications of Capital Funding 212 593(665) Surplus/(Deficit) of Capital Funding (723) (773)- Total Funding Surplus/(Deficit) - -88 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 2FINANCIAL AND RATING INFORMATION The rating system, rates...statementSTORMWATER - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding2,877 General Rates, UAGC & Rates Penalties 3,083 2,850- Targeted Rates (excl Water by Meter) - -- Subsidies & Grants for Operating Purposes - -- Fees & Charges (incl Water by Meter) - -- Internal Charges & Overheads Recovered - -2 Other Operating Funding 2 22,879 Total Operating Funding 3,085 2,852applications of Operating Funding836 Payments to Staff and Suppliers 858 810640 Finance Costs 706 569567 Internal Charges & Overheads Applied 585 596- Other operating funding applications - -2,043 Total Applications of Operating Funding 2,148 1,976836 Surplus/(Deficit) of Operating Funding 937 876Sources of Capital Funding- Subsidies for Capital Expenditure - -10 Development & Financial Contributions 10 101,940 Increase/(Decrease) in Debt 432 1,463- Gross proceeds from sale of assets - -- Lump sum contributions - -1,950 Total Sources of Capital Funding 442 1,473applications of Capital FundingCapital Expenditure:-100 - to meet additional demand 104 104983 - to improve the level of service 779 1,1291,703 - to replace existing assets 496 1,116- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -2,786 Total Applications of Capital Funding 1,379 2,349(836) Surplus/(Deficit) of Capital Funding (937) (876)- Total Funding Surplus/(Deficit) - -WASTEWATER - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding- General Rates, UAGC & Rates Penalties - -5,435 Targeted Rates (excl Water by Meter) 5,837 6,257- Subsidies & Grants for Operating Purposes - -- Fees & Charges (incl Water by Meter) - -- Internal Charges & Overheads Recovered - -889 Other Operating Funding 924 9246,324 Total Operating Funding 6,760 7,181applications of Operating Funding1,602 Payments to Staff and Suppliers 1,625 2,6451,046 Finance Costs 1,248 1,0772,274 Internal Charges & Overheads Applied 2,358 2,654- Other operating funding applications - -4,922 Total Applications of Operating Funding 5,231 6,3761,401 Surplus/(Deficit) of Operating Funding 1,530 805Sources of Capital Funding- Subsidies for Capital Expenditure - -179 Development & Financial Contributions 188 1883,026 Increase/(Decrease) in Debt 2,948 7,544- Gross proceeds from sale of assets - -- Lump sum contributions - -3,205 Total Sources of Capital Funding 3,136 7,732applications of Capital FundingCapital Expenditure:-100 - to meet additional demand 623 6233,071 - to improve the level of service 2,847 6,7821,435 - to replace existing assets 1,195 1,131- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -4,606 Total Applications of Capital Funding 4,665 8,536(1,401) Surplus/(Deficit) of Capital Funding (1,530) (805)- Total Funding Surplus/(Deficit) - -PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 89

The rating system, rates...statement FINANCIAL AND RATING INFORMATION SECTION 2WATER - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding- General Rates, UAGC & Rates Penalties - -5,549 Targeted Rates (excl Water by Meter) 5,912 5,687- Subsidies & Grants for Operating Purposes - -1,400 Fees & Charges (incl Water by Meter) 1,455 1,455208 Internal Charges & Overheads Recovered 216 2153 Other Operating Funding 3 37,160 Total Operating Funding 7,587 7,360applications of Operating Funding1,291 Payments to Staff and Suppliers 1,357 1,3941,114 Finance Costs 1,131 9772,429 Internal Charges & Overheads Applied 2,490 2,512- Other operating funding applications - -4,834 Total Applications of Operating Funding 4,978 4,8832,325 Surplus/(Deficit) of Operating Funding 2,609 2,477Sources of Capital Funding- Subsidies for Capital Expenditure - -149 Development & Financial Contributions 157 157441 Increase/(Decrease) in Debt (15) 538- Gross proceeds from sale of assets - -- Lump sum contributions - -590 Total Sources of Capital Funding 142 695applications of Capital FundingCapital Expenditure:-200 - to meet additional demand 208 208865 - to improve the level of service 475 7101,850 - to replace existing assets 2,068 2,255- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -2,915 Total Applications of Capital Funding 2,751 3,173(2,325) Surplus/(Deficit) of Capital Funding (2,609) (2,477)- Total Funding Surplus/(Deficit) - -SUPPORT SERVICES - GROUP OF ACTIVITIESBudget 10YP DAP2012/13 2013/14 2013/14$’000s $’000s $’000sSources of Operating Funding(1,146) General Rates, UAGC & Rates Penalties (1,012) (558)- Targeted Rates (excl Water by Meter) - -- Subsidies & Grants for Operating Purposes - -- Fees & Charges (incl Water by Meter) - -39,609 Internal Charges & Overheads Recovered 40,827 39,0426,274 Other Operating Funding 6,553 6,52544,737 Total Operating Funding 46,368 45,009applications of Operating Funding28,872 Payments to Staff and Suppliers 29,997 28,9661,832 Finance Costs 1,796 1,69010,745 Internal Charges & Overheads Applied 11,017 10,749- Other operating funding applications - -41,449 Total Applications of Operating Funding 42,810 41,4063,288 Surplus/(Deficit) of Operating Funding 3,558 3,604Sources of Capital Funding- Subsidies for Capital Expenditure - -- Development & Financial Contributions - -415 Increase/(Decrease) in Debt (514) 612435 Gross proceeds from sale of assets 427 427- Lump sum contributions - -850 Total Sources of Capital Funding (86) 1,039applications of Capital FundingCapital Expenditure:-- - to meet additional demand - -375 - to improve the level of service 52 3523,763 - to replace existing assets 3,419 4,290- Increase/(Decrease) in Reserves - -- Increase/(Decrease) of Investments - -4,138 Total Applications of Capital Funding 3,471 4,643(3,288) Surplus/(Deficit) of Capital Funding (3,558) (3,604)- Total Funding Surplus/(Deficit) - -90 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

additional informationSection3

Section1Council ControlledOrganisationsSupport to ExternalOrganisationsHow to Contact the CouncilGlossarySection2Section Image: Palmerston North City Council Call CentreSection3

SECTION 3ADDITIONAL INFORMATION Council Controlled OrganisationsCouncil Controlled OrganisationsThe Council does some of its work through Council Controlledorganisations (CCOs).They also do this by making the City more attractive bypreserving and promoting its heritage.A CCO is any organisation in which the Council owns orcontrols at least 50 percent of the voting rights or hasthe right to appoint at least 50 percent of the directorsor trustees. CCOs are mostly set up to independentlymanage Council facilities, or deliver specific services anddevelopments on behalf of local residents.The Council has four CCOs:• Caccia Birch Trust Board• Globe Theatre Trust Board• Regent Theatre Trust Board• Te Manawa Museums Trust Board.A Council Controlled Trading Organisation (CCTO) is a CCOthat is set up to make a profit for the Council and hencefor the ratepayers.The Council has one CCTO:• Palmerston North Airport Limited.CCOs and CCTOs operate at arms length from the Council.They are run by their Boards, not by the Council. Eachyear the Council and the Board agree on what services theBoard will provide. This agreement is called the Statementof Intent. The Council then provides funding so that theBoard can implement the Statement of Intent. We do notenvisage this will lead to major changes to what CCOs arecurrently doing.The Council works through CCOs and CCTOs because theybring business and community expertise that the Councilmay not be able to easily access otherwise.They can also attract funding from sources other thanratepayers.All the CCOs (other than the Airport) contribute to theCouncil’s goal of making Palmerston North a sociallysustainable city where people want to live because of itssafe and easy lifestyle and its many social, cultural andleisure opportunities. They do this by providing a range ofleisure opportunities for both performers and audiences.By attracting visitors to Palmerston North they alsocontribute to economic activity in the City. Te Manawa,also adds to the City’s science, education and researchbase.They contribute particularly to the fulfilment of the ArtsStrategy by:• strengthening leadership and bringing peopletogether• increasing participation and involvement in the arts• celebrating diversity of culture and creativity• improving access to the arts.The also contribute to:• building a sense of place and attracting visitors• supporting a strong community sector• optimising use of event resources.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 91

Council Controlled Organisations ADDITIONAL INFORMATION SECTION 3Palmerston North Airport Limited contributes to theCouncil’s goal of being an economically sustainable citywhich attracts, fosters and retains businesses and jobs tocreate a prosperous community. It also contributes to theCouncil’s Economic Well-Being Strategy, in particular by:• maximising connectivity• stimulating investment• supporting priority sectors.The Council can exempt small CCOs from the planningand reporting requirements of the Local Government Act.These are called exempted organisations and the Councilhas three of them: FreightGate Ltd (associated with theairport) the Palmerston North Performing Arts Trust Fund,and the Manawatū-Wanganui Regional Disaster ReliefFund Trust.Through their Statements of Intent, CCOs and theCouncil have reviewed some performance measures for2013/14. The following updates the CCOs actions andkey performance measures/milestones listed on pages226-227 of the 10 Year Plan.Palmerston North Airport92 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 3ADDITIONAL INFORMATION Council Controlled OrganisationsCaccia Birch Trust BoardActionsThe Board will maintain the cycle of internal and external improvements and refurbishmentand the programme of asset management as outlined in the Council’s asset managementplan.To help fund this, the Trust Board will:• continue to develop the conference and function venue• develop the customer base to maximise the heritage value of the facility andcommunity access.What the Trust DoesPreserves and enhances thehistoric nature of Caccia Birch.Operates and maintains a successfulbusiness to fund requirements toensure the historic and heritage aspectsof the property are maintained.Promotes the awareness of CacciaBirch in the community.Seeks and develops otherfunding sources.Performance MeasureMaintain category 1 heritage listing.Investigate the requirements for theseismic strengthening of the buildings.Operates within budget.At least 12 free weekend openafternoons are held.Investigate funding sources forseismic strengthening work.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 93

Council Controlled Organisations ADDITIONAL INFORMATION SECTION 3Globe Theatre Trust BoardActionsThe Board is looking to complete the Theatre’s redevelopment to ensure that the Theatreremains a first class venue for hire.The Board will develop relationships to increase usage of the redeveloped Theatre:• To maintain and develop current usage.• By further examining the marketing needs and business plan along with technologicaldevelopments to attract and assist users to maximise the hireage experience.The Board will seek further organisational and business development by:• Continuing to examine ways to enhance the existing performance and customerfacilities, thereby improving the theatre going experience at the Globe, e.g. leaseof café, auditorium facilities and website, ticketing facilities.• Contributing to the Theatre redevelopment, ensuring that the Theatre remains afirst class Theatre for hire meeting the needs of users and patrons.• Continuing to review and monitor current technical inventory to prioritise furtherdevelopment.• Preparing a Strategic Business Plan.What the Trust DoesAchieves facility usage throughongoing promotion.Fosters a sense of communityby encouraging youth, assistingamateurs and promotingparticipation, while deliveringoutstanding customer service.Delivers all services tothe agreed budget.Launch the “Friends of the GlobeTheatre” to raise funds on an ongoingbasis for the redevelopment project andthe future operation of the theatres.Performance Measure260 usage nights including 141performance nights (pro ratawith three months closure).At least 60% community usage.Services delivered within +10% variance.“Friends of the Globe Theatre” has200 contact names, contributing$12,000 per annum.94 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 3ADDITIONAL INFORMATION Council Controlled OrganisationsThe Regent Theatre TrustActionsTo promote and operate the Regent the Trust will:• Liaise with marketing personnel to identify and source product for the Regent.• Produce an e-news bulletin for the Regent to promote public awareness of upcomingevents.• Develop a database of prospective patrons for Regent events.• Maintain and operate an entrepreneurial fund to enable financial assistance to beprovided where considered appropriate to secure shows and performances for theRegent.• Operate a street-front event ticketing facility for events at the Regent and elsewhere.• Encourage continuing appreciation of the heritage aspects of the Regent and overseethe maintenance and preservation of such aspects to prevent degradation.What the Trust DoesAchieve revenue requirements bycommunicating and liaising ona regular basis, with all national/international, commercial/professionalevent providers to achieve requiredevents at the Regent Theatre.Performance MeasureNot less than 55% annual auditoriumhireage revenue is generated fromcommercial (non-community) use.At least 40 live nights for theyear in respect of the theatre’smain auditorium at the theatre’sfull commercial hireage rate.What the Trust DoesInvests in skilled staff and qualityresources so as to operate anefficient, well managed functionsand performing arts venue asevidenced by customer satisfaction.Identifies and sources product forthe Regent by liaising with marketingand key entrepreneurial personnel.Regularly communicates withall local/regional educationproviders, performing arts groupson the benefits of hosting theirceremonies and concerts at theRegent to achieve required usage.Invests in promotional campaignsas required to promote the valueof the Regent as a functions venueand support the City’s reputationas a conferencing destination.Performance MeasureCommunitrak Survey willconfirm community satisfactionratings over 90%.Total attendance numbers for eventsare at least 100,000 for the year.At least 160 live nights forthe year in respect of thetheatre’s main auditorium.At least 10 days use of the theatre’sauditorium per year for tertiarygraduation ceremonies.At least eight days of use of thetheatre’s auditorium per yearfor school prize-givings.At least 35 functions per year held in theRegency Room and/or Mezzanine area.At least 100 days of use for the yearin respect of the Rehearsal room.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 95

Council Controlled Organisations ADDITIONAL INFORMATION SECTION 3Te Manawa Museums TrustActionsTo enable and improve the ongoing visitor experience the Trust will:• Enhance Te Manawa’s engagement and participation with the community andvisitors.• Ensure that collections in the care of Te Manawa are professionally managed andcontribute to the community’s understanding of Manawatu history, art, creativityand scientific endeavour.• Maintain a sustainable funding base.• Develop a high performing, learning organisation.What the Trust doesBased on community feedback,develop and implement educationand public programmes andevents plan that providescertainty and a series of engagingexperiences for the participants.Improves core business tomaintain and grow visitation.Ensures that the collections areprofessionally managed and caredfor to international standards.Performance MeasureTe Manawa visitor surveystarget 95% satisfaction.A minimum of 18,000 visitorsparticipate in activities during theyear,participation in two eventsattracting at least 3,000 visitors.Visits to Te Manawa 156,500,exhibitions at other venues20,000 and to website 136,350.Quality of care and preservationof collections in Te Manawa’s caredemonstrated by no irreparablelosses or damages cause as aresult of handling by staff.What the Trust doesDevelops strategies and guidelinesfor providing the community withgreater access to the collection,physically and electronically.Improves access to Te Manawa activitiesand collection by introducing outreachand on-line activities and programmes.Develops exhibition and eventactivities at Te Manawa incollaboration with othercollections and collectors in the region.Increases the level of cash and in kindsupport for exhibitions, events, publicprogrammes to fund Te Manawaexhibitions and related activities.Performance MeasureA minimum of two temporaryexhibitions from Te Manawacollection are held to reflect thedistinctive characteristics of ourcommunity and its collections.A minimum of four outreachactivities occur.Two temporary exhibitions featurematerial from regional collections.Four activities developed to includefocus on regional collections.Revenue targets for semi-permanentdevelopments are increased. Target forthird party revenue to exceed $528,000.96 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 3ADDITIONAL INFORMATION Council Controlled OrganisationsPalmerston North Airport LtdActionsThe Airport Company will operate the Airport for both commercial and non-commercialaviation users. It is responsible for all operational and commercial aspects of the Airport.It provides international and domestic terminal facilities.The company will meet Civil Aviation and other statutory runway and safety requirementsby providing physical facilities that preserve or achieve current and planned requirements.A programme of development will be continued to pursue opportunities to increase thevalue of aeronautical and other commercial business revenue and other growth consistentwith the Company’s objectives.What the Company DoesAchieves suitable operatingreturns on assets utilised.Maintains a level of debt capable ofbeing serviced by the Company.Maintains and increases thevalue of the Company.Invests in skilled staff and qualityresources so as to operate anefficient, well managed airport asevidenced by customer satisfaction.Increases the usage of the airport asmeasured by passenger numbers.Performance MeasureA ratio of net surplus before interest/tax/revaluations to total assets inclusiveof revaluations of 2.8% per year.A ratio of net surplus after interest/taxto consolidated shareholders’ fundsinclusive of revaluation reserve of 1.7%.To maintain an interest coverage ratioof net surplus before interest, tax anddepreciation to interest at or above 2.5.To maintain a tangible net worth (totaltangible assets after revaluations lesstotal liabilities) above $35.0 million.To maintain a level of satisfactionof 90% and will periodicallymeasure this by customer survey.Total passenger throughput of467,000 during the 2013/14 year.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 97

Support to external organisations ADDITIONAL INFORMATION SECTION 3Support toExternal OrganisationsPalmerston North City Council recognises the expertise, commitmentand relationships that exist in the community.The Council seeks to build on those existing and potentialareas of excellence in Palmerston North that make it a moresustainable city. Supporting external organisations is oneway to make this happen.The Council funds organisations to help deliver some ofthe actions and communications identified in its strategiesand plans.The relationships with the external organisations vary:• some of them (Te Manawa, Regent on Broadway,Globe Theatre and Caccia Birch) are CouncilControlled Organisations and in these cases theCouncil owns the land and buildings. There are leaseagreements which determine who is responsible foroperations, maintenance and renewals. Each year theorganisations prepare formal Statements of Intentwhich provide information about their activities andfinancial position. These are made publicly available.The total cost to the Council for these activities(including any sums paid to them as operating grants)is included in the Arts and Culture activity.• some have a contractual arrangement either tocontribute to particular Council outcomes or toprovide a coordination role for the arts (PalmerstonNorth Community Arts Council), sports (SportManawatu), social (Palmerston North CommunityServices Council) and environmental (EnvironmentNetwork Manawatu) sectors.• some are supported through rates and rentalassistance.The Council adopted a new Community Funding Policyin June 2012. This policy guides the way the Councilfunds external organisations in the arts, sports, socialand environmental sectors. The total amount of fundingavailable for these sectors is established through the 10Year Plan process.The Council has contractual relationships (with definedoutcomes) with a number of organisations with a focuson the economic sector. Key amongst these organisationsare Vision Manawatu, Destination Manawatu and the BioCommerce Centre.98 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 3ADDITIONAL INFORMATION How to Contact the CouncilHow to Contact the CouncilPostal AddressPrivate Bag 11034Manawatū Mail CentrePalmerston North 4442Customer Services Centre32 The SquarePalmerston NorthOpen Hours:Monday to Friday8am-5pmThe Customer Services Centre has been developed to bethe first point of contact within the Council for all of ourbusiness and is user friendly.Our friendly customer-focused team will assist you inperson at the Customer Services Centre.The Council also operates a 24 hour, seven day a week, 365days a year Customer Services Call Centre which acts as agateway and hub for the Council.The Customer Services staff are always there to talk toyou about any issues you may be having within the City.It also provides a translation service for those who need it.For all enquiries, service requests, or to contact anyonewho works for the Palmerston North City Council:Phone: 06 356 8199Fax: 06 351 4311Email:info@pncc.govt.nzWebsite:www.pncc.govt.nzCity LibraryCentral Library4 The Square, PO Box 1948, Palmerston NorthPhone: 06 351 4100Fax: 06 351 4102Email:webmanager@library.pncc.govt.nzRenewals: Phone 06 351 4101Open Hours:Monday, Tuesday and ThursdayWednesday and FridaySaturdaySundayClosed on public holidays.10am - 6pm10am - 8pm10am - 4pm1pm - 4pmAshhurst Community LibraryCnr Cambridge and Bamfield Streets, AshhurstPhone/Fax: 06 326 8646Awapuni Branch LibraryCnr College Street and Pitama RoadPhone/Fax: 06 356 7634Te Patikitiki (Highbury) Branch Library157 Highbury AvenuePhone: 06 357 2108Roslyn Branch Library8 Kipling StreetPhone/Fax: 06 357 9287Mobile LibraryHas regular stops throughout the City.Service CentreAshhurst Services Delivery CentreC/o Ashhurst Four Square Discounter122 Cambridge Avenue, AshhurstPALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 99

How to Contact the Council ADDITIONAL INFORMATION SECTION 3The Role and Structure of the CouncilThe purpose of the Council is to enable democratic localdecision making and to provide cost-effective and goodquality local infrastructure, local public services andregulatory functions.The Council reviews its committee structure after eachelection. The committee structure for the 2010-2013period is made up of three primary committees, eachmeeting monthly, with the full Council meeting on thelast week of each month.Community meetings are also held at least four times ayear, throughout the wards of the City.Council MeetingsThe Council encourages public participation in itsactivities. Meetings of the Council and its Committees areopen to the public and are held in the Council Chamber.For information on meeting agendas and dates, ringCustomer Services on 06 356 8199, or look in the publicnotices section of the Manawatu Standard, The Tribuneor The Guardian newspapers; or look at our websitewww.pncc.govt.nzThis Annual Plan has been prepared under the LocalGovernment Act 2002. Thank you to all who contributedto the collation and production of this publication.More information about the Council’s meetings,role and structure can be found in the 10 Year Plan(page 231).Palmerston North City Council Recycling Service100 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

SECTION 3ADDITIONAL INFORMATION GlossaryGlossaryThis section explains the key terms in the Annual Plan.10 Year Plan (ltP or Long Term Plan)A 10 Year Plan developed by the Council and describingwhat the Council plans to do to contribute to thecommunity outcomes. It shows why the Council doesthese things, how much they are expected to cost andhow success will be judged. A 10 Year Plan is preparedevery three years.ActivityThe goods or services that the Council provides to thecommunity. The Council has 19 Activities, e.g. Cemeteries,Water, or Parks and Recreation.Annual PlanThis is a budget document that shows how the Council willfund a particular year of the 10 Year Plan. This is to givemore consistency of direction to what the Council doesfor the community. It is produced in years two and threeof the 10 Year Plan.Asset Management Plans (AMPs)These ensure that the Council’s major infrastructural assetsare maintained to ensure high environmental standardsand can meet the future needs of the City, at the lowestpossible cost over the long term. The Council has AMPsfor roading and parking, stormwater, waste management,wastewater, water, and property and recreation facilities.Capital NewThat expenditure which will increase the value of orcreate new Council assets (land, infrastructure, plant andequipment). A household analogy would be expenditureto build a new bedroom.Capital RenewalAsset renewals or replacements e.g. renewing a footpath,or replacing library books.Community OutcomesThe outcomes that a local authority aims to achieve inorder to promote the social, economic, environmental,and cultural well-being of its district or region, in thepresent and for the future. They are the Council’s Visionand Goals.Council ControlledOrganisation (CCO)An organisation which the Council owns or controls atleast 50% of the voting rights or has the right to appoint atleast 50% of the directors or trustees. CCOs are mostly setup to independently manage Council facilities or deliverspecific services on behalf of residents.Council Controlled TradingOrganisation (CCto)As above for CCO but trading with the main purpose/intention being to make a profit.DepreciationSpreading the costs of assets over their useful life.PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14 101

Glossary ADDITIONAL INFORMATION SECTION 3Development ContributionsDevelopment Contributions provide Council with a methodto obtain contributions to fund infrastructure requirementsdue to growth. A Development Contributions Policy isrequired as a component of the Funding and FinancialPolicies in the 10 Year Plan under section 102(4)(d) of theLocal Government Act (LGA) 2002.Draft Annual Plan (daP)A draft of the Annual Plan issued for public consultation,under the Local Government Act.Draft 10 Year PlanA draft of the 10 Year Plan issued for public consultation,under the Local Government Act.Financial YearThe Council’s financial year runs from 1 July to 30 June.The 2013/14 financial year therefore covers the period 1July 2013 to 30 June 2014.Funding Impact StatementA summary of the financial information within a Groupof Activities and the whole of Council, under the LocalGovernment Act.Group of ActivitiesGroups of Activities show how the Council will worktowards the community outcomes. The Council has 11Groups of Activities. Activities that provide similar serviceshave been grouped together. Changes to the LocalGovernment Act mean that infrastructural Activities arealso Groups of Activities.InflationA rise in the general level of prices of goods and servicesover a period of time.Level of serviceA measurable description of what the Council does (or isplanning to do) for residents.LTP (Long Term Plan or 10 Year Plan)A 10 Year Plan developed by the Council and describingwhat the Council plans to do to contribute to thecommunity outcomes. It shows why the Council doesthese things, how much they are expected to cost andhow success will be judged. A 10 Year Plan is preparedevery three yearsMaintenance CostsExpenditure in relation to repairs and maintenance ofCouncil’s assets.NZIFRSNew Zealand International Financial Reporting StandardsOperating ExpenditureExpenditure that is necessary for the normal activities ofCouncil. Using a household analogy, this would be payingfor the electricity or food.Performance MeasuresPerformance measures show how people can judge thesuccess of the Council. The measures in the current 10 YearPlan are part of the Council’s performance framework. TheCouncil has other more technical performance measuresin documents like Asset Management Plans.ProgrammesProgrammes are the detailed financial actions whichinclude capital and non-capital works within a particularfinancial year to achieve particular outcomes of theCouncil.Sub-ActivityThe services provided within the Activity, e.g. the Workand City Promotion Activity contains the Sub-Activities ofBusiness and Job Promotion, City Marketing and Branding,and Convention Centre.Uniform Annual GeneralCharge (uagC)A component of the general rate that is levied as a uniformamount on every property.102 PALMERSTON NORTH CITY COUNCIL Annual Plan 2013/14

Palmerston North City CouncilPrivate Bag 11034, The Square, Palmerston North | Phone: 356 8199 | Website: www.pncc.govt.nz