1 Introduction Significant Activities Financial Statements and Policy Reports Other Information

Transcription

1 Contents Section Page 1 Introduction 3-18 Role of the Annual Report 4 Mayor/Chief Executive s Introduction 5 The Year in Review - Highlights 2003/ Key Council Financial Indicators 9 Strategic Focus 10 The Manawatu District - Profile 11 Statement of Compliance and Responsibility 12 Audit Report 13 Statement of Accounting Policies 16 2 Significant Activities Community Survey Results 22 Community Facilities 23 Democracy 26 District Development 28 Emergency Management 32 Environmental and Regulatory Management 36 Leisure Resources 40 Roading Network 50 Waste 55 Water 61 Capital Projects Summary List 67 3 Financial Statements and Policy Reports Consolidated Statement of Financial Position 70 Consolidated Statement of Financial Performance 71 Consolidated Statement of Movements in Equity 72 Consolidated Statement of Cashflows 73 Consolidated Statement of Commitments 75 Consolidated Statement of Contingent Liabilities 76 Statement of Financial Involvement in CCO S 76 Notes to the Financial Statements 77 Remuneration of Chief Executive 91 Report on the Long Term Financial Strategy 92 Report on the Funding Policy 95 Report on the Borrowing Management and Investment Policies 98 4 Other Information The Manawatu District Council - Directory Mayor and Councillors Organisation Structure Activities and Functions Member Responsibilities and Remuneration Statement of Resources Equal Employment Opportunities Statement Grants 2003/ Glossary 112 1

2 2 Introduction

3 3

4 Introduction Rolle of the Annuall Report This report has been prepared under section 283 of the Local Government Act It compares Council s actual performance against what was forecast in the 2003/2004 Annual Plan. The Annual Report: reports against the Manawatu District Council s key activities, performance indicators and budgets outlined in the 2003/2004 Annual Plan reports against Council policies such as the Long Term Financial Strategy, Funding Policy and Borrowing Management and Investment policies outlines how Council has spent money collected from ratepayers, residents, financial institutions and government agencies The Annual Report includes both financial and non financial information. The following diagram illustrates where the report fits in terms of Council s plans and policies: THE PATH TO TOMORROW (Including Long Term Financial Strategy) Community Vision Council s Goals and Objectives DISTRICT PLAN FINANCIAL PRINCIPLES - Funding Policy - Borrowing Management Policy - Investment Policy OTHER PLANS AND POLICIES - Asset Management Plans - Water Supply Development Plan - Waste Management Plan ANNUAL PLAN & ANNUAL REPORT The report is broken into four sections: Section One: Introduction Section Two: Significant Activities Section Three: Financial Statements and Policy Reports Section Four: Other Information Gives an overview of the 2003/2004 year including key highlights. Summarises what Council has achieved in each significant activity, including performance indicators. Key financial statements and reports against Council policies including the Long Term Financial Strategy, Funding Policy and Borrowing Management and Investment Policies. Other information, including summary information about the Manawatu District Council, elected representatives, staff and grants. 4

5 Introduction Mayor/Chiief Executiive s Introductiion A significant part of any local authority s accountability is the publication of an annual report. Local government legislation provides that each local authority must report on actual activities and performance for the year compared with the intended activities and performance as set out in the annual plan for that year. This report sets out the Manawatu District Council s performance and the overall financial position for the year ended 30 June The following pages in this introductory section set out the highlights of the year s operations and the key financial indicators. The next section is the main body of the report, in that it sets out details of each activity, or group of activities, undertaken by the council. Key financial reports can found in section 3. Although the financial year presented some challenges, particularly the civil defence storm emergency of February 2004, much of an ongoing development programme was able to be achieved notable highlights are referred to over the next few pages. The February Storm As Manawatu readers of this report will be well aware, the most significant impact on the work of the council has been the traumatic storm and flood event of mid-february The following page outlines the effect on council, farmers, businesses, homeowners and residents of our communities. We wish to take this opportunity to express council s heartfelt thanks to all in the community, particularly the civil defence and emergency services, for the way in which dedicated and unstinting commitment was given to help those in need during this time. Particular mention should also be made of the generosity of all New Zealanders in rallying to the need of the district and region. In respect of the direct impact of the storm on council, quite apart from the extraordinary stretching of council resources, the various works programmes scheduled for the year, particularly capital works, were considerably delayed. Part of the reason for this has been the commitment of contractors to get the community back on its feet, and consequent non-availability to carry out scheduled works. We are only now, at the time of preparing this report (September 2004), seeing ourselves being able to return to normal programmed works. Long-term Council Community Plan The past few months has also seen increased activity at the council table, with elected members coming to grips with the new legislative requirements for long-term planning and the development of clear policies to go with that long-term planning need. The council, over the next few months, will be seeking considerable involvement of the community to identify expected community outcomes of the district. We very much appreciate the support of councillors and staff in achieving the results for the year as set out this report. Ian McKelvie MAYOR Rod Titcombe CHIEF EXECUTIVE 5

6 Introduction The Year iin Reviiew 2003/2004 The Storm of February 2004 The evening of Sunday, 15 February and morning of Monday, 16 February 2004 saw one of the most severe storms recorded in New Zealand hit the Manawatu-Wanganui region. The Manawatu district, together with neighbouring Rangitikei, bore the brunt of torrential rain, resulting in significant land erosion in the hill country parts of the district, and flooding and silting in Feilding township and the lowland areas adjoining all rivers and streams. A civil defence emergency was declared. The damage to Council s infrastructure, particularly roads, bridges and water supplies, was significant, with the repair bill in the vicinity of $20 million. Strong winds a few days later resulted in further damage. This event has necessitated Council revising its long-term plans for those infrastructural assets. The effect of the storm on many Manawatu farmers, businesses and homeowners has been great, in some cases catastrophic. Indeed, the damage caused by the storm, both physical and psychological, can never be overestimated. Even now, nearly seven months after the event, it is still fresh in our minds. It is likely to be remembered for many years to come. At the time what made matters worse was the fact that the storm was part of a string of unsettled weather events which hit the country every few days, leaving everyone on tenterhooks. It seemed there was no end of severe weather warnings, which compounded an already grave situation. The storm was a traumatic event for all Manawatu people. The Council recognises and thanks the community for the support and patience of residents while essential services were restored, and for the part played by many volunteers in the response and on-going recovery phases. 6

7 Introduction Local Government Act First Year of Implementation 1 July 2004 marked the first anniversary of the Local Government Act One major implication of this concerns planning requirements, the most significant of which is the Long Term Council Community Plan (LTCCP). Manawatu s LTCCP was adopted in June However, this is only an interim LTCCP; the first full community plan will be adopted in 2006, and will incorporate a full set of community outcomes outcomes which the community would like to be implemented. Council will work toward these in 2004/05. Manchester Square Redevelopment The long-awaited upgrade of Manchester Square was finally completed in August The upgrade involved a total revamp of roading and utility services around the square. Funding of $1.45 million was approved in the 2002/03 Annual Plan. Confirmation of Triennial Agreement The Triennial Agreement, which commits the Local Authorities within the Manawatu-Wanganui region to work collaboratively together, was confirmed in September It is part of the new local government environment and its express purpose is to give effect to the principles of local government (greater participation of communities in Council decision and greater collaborative relationships). Library Programmes During the third term of primary schools received weekly visits from library staff. School holiday programmes were also held during the first week of the September holidays. The Library also held a Summer Reading Programme for 300 children, and 18 primary schools were visited during the second term of Adoption of Local Governance Statement Manawatu District s Local Governance Statement (LGS), along with its Code of Conduct, was adopted in December. The LGS, in accordance with section 40 of the Local Government Act 2002, sets out the primary functions of a local authority, the roles of elected members, processes for meetings and consultation and the governance structure of the Council. Manfeild Park After a considerable period of discussion and negotiation, the three land owners of Manfeild Park Manawatu District Council, Manawatu Car Club and Feilding IA and P Association finalised the Deed documents to form the Manfeild park Trust. This means that Manfeild Park now has one unified ownership and governance structure. Ben Vanderkolk is the Trust Chairman with remaining Trustees being, Paul MacLennan, Errol Harvey, Michael Ford and Christopher Boyle. The new trust provides an opportunity to further progress the Arenas of Manawatu Strategy. 7

8 Introduction V8 Supercars Manawatu District and Palmerston North City Councils jointly bid for the hosting rights to a New Zealand round of the Australian V8 Supercar Company (Avesco) at Manfeild Park. The joint bid was supported by Manawatu Car Club, the Feilding IA and P Association and the Manawatu West Coast Agricultural and Pastoral Association. However, it was announced in May 2004 that, subject to resource consent, Auckland would host a street race event in Meanwhile, the Manawatu bid team s proposal to host the New Zealand round of the race remains open until December Manfeild Park is poised to carry out its multi-million dollar upgrade which will provide a viable alternative should Auckland s bid fall through. Manfeild s bid is strong because of the diligence with which it was prepared. All resource consents, consultation and local government funding has been confirmed. Parks Project Various maintenance projects had to be put on hold following February s storm, after which much effort has been put into repair work in preparation for winter sports. A tree planting project at Kitchener Park was completed with the help of community workers. The broadwalk and viewing platform were also completed, and currently a Task Force Green worker is helping to repair flood damage. 8

9 Introduction Key Counciill Fiinanciiall Indiicators Indicator Assets Council Actual 2004 Council Budget 2004 Council Actual 2003 Capital Expenditure $6.6 M $12.0 M $7.9 M Total Fixed Assets $393 M $405 M $399 M Total Assets $410 M $413 M $408 M Working Capital (Current assets less current liabilities excluding $ 5.9 M $3.2 M $3.3 M current portion of term debt and Properties for Sale) Cash at Bank/(Overdraft) $32,000 $120,000 Short Term Bank Deposits $7.8 M $5.3 M $6.0 M Special Funds $3.7 M $2.5 M $4.0 M Borrowing Requirements Net Borrowing for the Year $1.8 M $3.7 M $2.6 M Total Council Debt $10.0 M $14.7 M $11.0 M Debt Servicing Costs as a Percentage of Council 2.2 % 3.4% 3.5 % Revenue Loan Repayment Funds $0.9 M $0.9 M $1.1 M Debt as a percentage of Assets 2.4 % 3.5% 2.7 % Activity Expenditure by Activity 2003/2004 District Development Community Facilities Emergency Management Environ. and Reg. M'ment Leisure Resources Democracy Roading Storm 04 Roading Waste Water 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Operating Expenditure Capital Expenditure $000's Note: Operating expenditure in the above graph excludes amounts for depreciation, asset write-offs and other non-cash expenditure. 9

10 Introduction Strategiic Focus Council s Strategic Focus during the 2003/04 financial year was driven by The Path to Tomorrow and the longterm financial strategy for which were both reviewed and adopted in The Path to Tomorrow sets out the: o o o o Community Vision Council s Guiding Principles Goals and objectives for each significant activity Long Term Financial strategy for each significant activity During the 2003/04 year Council prepared and adopted its first Long Term Council Community Plan (LTCCP), a requirement under the Local Government Act 2002, and used The Path to Tomorrow as a base. This plan represents an interim document with a complete LTCCP required to be adopted by 1 July Community Vision The community vision identified in The Path to Tomorrow forms the basis of the interim community outcomes for Council s LTCCP and has the same interwoven themes as follows. The community vision focused around maintaining and developing a healthy environment, protecting the well-being of the community and maintaining growth in the district s economy. COMMUNITY WELL-BEING SUSTAINED GROWTH HEALTHY ENVIRONMENT Guiding Principles and Significant Activities To help Council achieve the Community Vision, Council has identified five guiding principles to help it effectively manage and determine its responsibilities. These are: To provide leadership for the community and to advocate on its behalf To consult with the community to identify needs and determine priorities for allocating resources To balance the provision of services with the community s ability to pay To promote sustainable management of the environment To manage effectively the community s facilities and resources The Path to Tomorrow had identified eleven Significant Activities that Council would be involved in with these being reduced to nine for the 2003/04 year. For each Significant Activity, an Overall Goal and Specific Objectives have been identified. Council, through its annual work programmes and future planning is working towards the achievement of these goals and objectives. Section Two summarises the results for 2003/2004 for each of the nine significant activities. 10

11 Introduction The Manawatu Diistriict Profiille The Manawatu District Council was established on 1 November 1989 with the amalgamation of the five former authorities (Oroua, Kiwitea, Pohangina, Manawatu and Feilding). Area The district covers an area of 253,164 hectares. It stretches from the Rangiwahia in the north to Himatangi Beach and Palmerston North in the south. The western boundary is the Rangitikei River and the eastern boundary the Ruahine ranges and Manawatu River. Population The Manawatu District Council serves a population of 27,510 (Department of Statistics, Census 2001), a decline of 2.1% since Towns and Villages Feilding is the major town, with a population of 13,641. A number of smaller villages are dotted around the district. Palmerston North is the closest major city. Natural Features Two major rivers the Rangitikei and the Year Population % Change Manawatu, border the Manawatu district. The Oroua river is heavily utilised by both Feilding and rural users. A range of natural features exist from the peaks of the Ruahine ranges to the beautiful Pohangina Valley to the windswept West coast beaches and dunes. Economy Key industry sectors in the Manawatu include agriculture, forestry, manufacturing, retail trade, health and community services, education and property and business services. The district is home to significant livestock and cropping operations. Ohakea air base is also located within district boundaries. Feilding acts as a service centre to the surrounding rural community, with several rural based businesses, including the Feilding stock saleyards. It is also increasingly an attractive place to live with numerous Palmerston North workers choosing to live in Feilding and commute. Significant manufacturing industries include McCain Foods, Feltex Carpets, Fruehauf Trailers and Rangitikei Foods. It has a thriving central business district, with national retailers such as The Warehouse, McDonalds and Woolworths. Smaller communities around the district act as local service centres, with tourism and visitor industries increasingly prominent such as B & B s, cafes and rural homestays. Manawatu district is centrally located with significant regional operations including Palmerston North airport, Massey University, Linton Army Camp, Palmerston North hospital and the Universal College of Learning (UCOL). Infrastructure Pop'n MANAWATU POPULATION CHANGE The district is well serviced with 1430 kilometres of roads and 369 bridges. State Highway One runs through the south western corner of the district. Most villages are serviced with water supply, wastewater and stormwater disposal. Parks and reserves are dotted throughout the district. A number of rural communities are also connected to water supplies and drainage systems % 0 Change

12 Introduction Statement of Complliiance and Responsiibiilliity Compliance 1. The Council and management of Manawatu District Council confirm that all the statutory requirements of section 283 of the Local Government Act 2002, which includes the requirement to comply with Part VIIA of the Local Government Act 1974 regarding financial management and borrowing, have been complied with. Responsibility 2. The Council and management of Manawatu District Council accept responsibility for the preparation of the annual Financial Statements and the judgements used in them. 3. The Council and management of Manawatu District Council accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. 4. In the opinion of the Council and management of Manawatu District Council, the annual Financial Statements for the year ended 30 June 2004 fairly reflect the financial position and operations of Manawatu District Council. Ian McKelvie Rod Titcombe Graham Teahan Mayor Chief Executive Corporate Services Manager 12 November

13 Introduction Audiit Report AUDIT REPORT TO THE READERS OF MANAWATU DISTRICT COUNCIL AND GROUP S FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2004 The Auditor-General is the auditor of the Manawatu District Council (the District Council) and group. The Auditor-General has appointed me, John O Connell, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements of the District Council and group, on his behalf, for the year ended 30 June Unqualified opinion In our opinion the financial statements of the District Council and group on pages 16 to 91: σ σ comply with generally accepted accounting practice in New Zealand; and fairly reflect: the District Council and group s financial position as at 30 June 2004; the results of operations and cash flows for the year ended on that date; and the service performance achievements measured against the performance targets adopted for the year ended on that date. The audit was completed on 12 November 2004, and is the date at which our opinion is expressed. The basis of the opinion is explained below. In addition, we outline the responsibilities of the Council and the Auditor, and explain our independence. Basis of opinion We carried out the audit in accordance with the Auditor-General s Auditing Standards, which incorporate the New Zealand Auditing Standards. We planned and performed our audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements did not have material misstatements, whether caused by fraud or error. 13

14 Introduction Material misstatements are differences or omissions of amounts and disclosures that would affect a reader s overall understanding of the financial statements. If we had found material misstatements that were not corrected, we would have referred to them in the opinion. Our audit involved performing procedures to test the information presented in the financial statements. We assessed the results of those procedures in forming our opinion. Audit procedures generally include: σ σ σ σ σ σ σ determining whether significant financial and management controls are working and can be relied on to produce complete and accurate data; verifying samples of transactions and account balances; performing analyses to identify anomalies in the reported data; reviewing significant estimates and judgements made by the Council; confirming year-end balances; determining whether accounting policies are appropriate and consistently applied; and determining whether all financial statement disclosures are adequate. We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements. We evaluated the overall adequacy of the presentation of information in the financial statements. We obtained all the information and explanations we required to support the opinion above. Responsibilities of the Council and the Auditor The Council is responsible for preparing financial statements in accordance with generally accepted accounting practice in New Zealand. Those financial statements must fairly reflect the financial position of the District Council and group as at 30 June They must also fairly reflect the results of operations and cash flows and service performance achievements for the year ended on that date. The Council s responsibilities arise from the Local Government Act 2002, which requires the Council to prepare financial statements under the Local Government Act We are responsible for expressing an independent opinion on the financial statements and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act

15 Introduction Independence When carrying out the audit we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand. Other than the audit, we have no relationship with or interests in the District Council or any of its subsidiaries. J O Connell Audit New Zealand On behalf of the Auditor-General Palmerston North, New Zealand 15

16 Introduction Statement of Accountiing Polliiciies 1. Reporting Entity The Manawatu District Council is a Local Authority as defined under the Local Government Act Balance date is 30 June The Council has a 100% shareholding in Heartland Contractors Limited a Council Controlled Organisation as defined in S67 of the Local Government Act Balance date is 30 June The principal activity of the company is investing. The financial statements have been prepared in accordance with the Local Government Act 2002 and are prepared in accordance with the financial reporting standards as issued by the Institute of Chartered Accountants of New Zealand. Section 283 of the Local Government Act 2002 requires the Council to this year comply with part VIIA of the Local Government Act Measurement Base The measurement base adopted is that of historical cost, modified by the revaluation of certain classes of fixed assets. 3. Financial Reporting (A) - Basis of Preparation of the Consolidated Financial Statements The consolidated financial statements include statements of financial performance, cashflows, financial position, movements in equity, contingent liabilities and commitments encompassing all activities of the Council. In order to meet its obligations of public accountability, the Council has also included for each significant activity a cost of service statement. (B) - Overhead Allocation The cost of all overhead areas has been allocated to significant activities, as support costs net of external revenues and transfers received by the overhead area. The allocation is based on cost breakdowns and the analysis of expenses and time sheets. 4. Revenue All income is recognised on an accrual basis. 5. Investments Investments are valued at cost, with the exception of Council s share of the Gordon Kear Forest, and shares held as detailed below. The Gordon Kear Forest is a joint venture between the Council and Palmerston North City Council, with the Council owning a 1/6 share. The forestry assets were valued at estimated market value as at 30 June 2004 by Forme Consultants. Shares were valued as follows: Shares in the New Zealand Local Government Insurance Corporation Ltd have been valued at their original issue price of $1 per share. Council s investment in Powerco Limited has been valued based on a market value of $2.08 per share as at 30 June Council s investment in Heartland Contractors Limited a fully owned CCO has been valued at fair value which at 30 June 2004 was $1,764,613 (2003: $1,684,617). 6. Properties intended for sale Council has a number of properties that it is in the process of selling. These properties have been valued at net realisable value by Quotable Value NZ as at the 30 th June

17 Introduction 7. Fixed Assets Description Infrastructural Assets These are the fixed utility systems that provide a continuing service to the community, and are not generally regarded as tradable. They include roads and bridges, water, wastewater and stormwater systems. Restricted Assets Assets that cannot be disposed of because of legal or Council policy restrictions, and include Housing for the Elderly and Disabled units, halls, and recreational assets. Operational Assets By default any asset not classified in either of the above groupings. This group includes items such as the Council administration building, library buildings, the Civic Centre and the Little Theatre. Valuation Methodology Land and buildings excluding Infrastructural structures These assets have been valued as at the 30 th June 2002 by Quotable Value NZ at fair value. The valuation was undertaken by a registered valuer, Mr Ian Burgess (ANZIV, SNZP). The valuation has been prepared with reference to the New Zealand Institute of Valuers Valuation Standard 3 and meets the requirements of FRS 3: Accounting for Property, Plant and Equipment. The values of the assets have been considered on a Fair Value basis in accordance with FRS-3 under the highest and best use scenario. Fair value as defined under FRS-3 is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arms length transaction. Highest and best use is defined as the most probable use of the asset that is physically possible, appropriately justified, legally permissible, financially feasible and which results in the highest value. All land has been valued on a fair market highest and best use basis determined from marked based evidence and conditions that prevailed as at March Buildings have been valued on either a fair market or depreciated replacement cost basis. Where the fair value of an asset can be determined by reference to the price in an active market for the same asset of a similar asset, the fair value of the asset is determined using this information. Where fair value of the asset is not able to be reliably determined using market-based evidence, depreciated replacement cost is considered to be the most appropriate basis for determination of the fair value. This situation will usually arise with specialised asset types. Council policy is to value land and buildings every three years. Furniture and fittings, equipment, plant and machinery Reported at historical cost less depreciation as at 30 June Subsequent additions are recorded at cost. Assets over $1,000 are usually capitalised. Library books These assets are recorded at the amounts determined at the last valuation (30 June 1999) plus additions at cost less accumulated depreciation since that date. Gardens and Landscaping These assets have now been included under the asset class buildings in accordance with the way they are to be valued and recorded. Motor vehicles Recorded at historical cost less depreciation. Assets Under Construction Recorded at historical cost. Infrastructural Assets (excluding land) Water and wastewater assets were valued internally as at the 1 st July 2001 by Manawatu District Council engineers in accordance with the requirements of FRS-3. These valuations were subsequently reviewed by staff from the Wanganui District Council. 17

18 Introduction The Manawatu District Council valuers were: Claire Jackman, Wastes Manager, Manawatu District Council. Qualifications: Btech (Chem Tech.) Hons Brett Chapman, Water Manager, Manawatu District Council. Qualifications: NZCE (Civil) Richard Kirby, Assets Manager, Manawatu District Council. Qualifications: BE (Civil) MIPENZ Roading assets with the exception of roading structures were revalued by Mark Sneddon (Qualifications: BE MBA BSc MIPENZ MIStructE) of GHD Limited. Only one instance of optimisation was identified in which new technology was considered as a replacement for an existing configuration of pumps. Assets have been valued as at 1 July 2001 on a depreciated replacement cost basis in accordance with currently accepted valuation methodology. New additions have been recorded at cost. Roading structures (bus shelters and a weighbridge) have been recorded at historical cost. Land underneath roads Valued at the average market value of surrounding land as at 1 July 2001 based on values obtained from Quotable Value NZ. Depreciation: Land and assets under construction are not depreciated. All other assets with a few exceptions are depreciated on a straight line basis at rates that will write off their cost or net realisable value less any estimated sales value over their expected useful economic life. Where assets have been revalued the carrying value of the asset as at the date of the last revaluation has been depreciated at a rate determined by the remaining useful life of the asset in question. The expected lives of major classes of fixed assets are as follows: Buildings years % Other improvements on land 5-80 years % Furniture & Equipment 20 months - 10 years 10-60% Plant, Machinery and Motor Vehicles 4-10 years 10-25% Library Books 10 years 10% Computer Hardware and Software 3 5 years 33.3% - 20% Gardens and Landscaping Included under buildings Infrastructural: Depreciation on these assets is calculated on a straight line basis over the modified base life (remaining useful life) of the asset in question. The base lives and depreciation rates of the major utility asset types are as follows. These rates apply only to assets that have been procured since the last valuation date. Utilities Water Pipes & Valves 60 years 1.66% Sewerage Pipes & Manholes years % Reservoirs years 1-2% Treatment Plants (excl. Equipment) 50 years 2% Treatment Plant Equipment 5-25 years 4-25% Stormwater Pipes & Manholes years % Roading Bridges, Retaining Walls 120 years 1% Pavement Surface 2-80 years 1.25% - 50% Pavement Layers 80 years 1.25% Footpaths years 1.4-4% Pavement Formation Not depreciated Culverts, Kerb and Channel years 1-2% and roading drainage structures Street Signs 13 years 7.5% Traffic Islands 80 years 1.25% Street Lighting years 1.4-2% Bus shelters and weighbridges years % The variations in lives reflect the different materials used. 18

19 Introduction 8. Goodwill Where the cost of assets purchased by the group exceeds the fair value of the assets the balance represents goodwill. Goodwill arising on the purchase of assets is reviewed at least annually and where there has been a permanent impairment in the value of the remaining portion of goodwill, it is charged to the Statement of Financial Performance. To the extent that goodwill is not written off due to a permanent impairment in value, it is amortised on a systematic basis over the period during which the benefit represented by the goodwill is expected to accrue to the group. This period is unlikely to exceed 10 years and in no case will exceed 20 years. 9. Equity The net value of the community s interest in the assets and liabilities of the district is reflected in the equity figure disclosed in the Statement of Financial Position. This is broken down into five further components and analysed within the notes to the financial statements. 10. Loan Repayment Funds (Sinking Funds) These are funds set aside each year to meet future loan principal repayments. These funds are administered by the Manawatu District Council Sinking Fund Commissioners, appointed by the Council. These funds are included in the statement of financial position as an investment. The term loan repayment funds has been used in this report instead of the words sinking funds as this explains more clearly the purpose of these funds. 11. Accounts Receivable Accounts receivable are valued at their net realisable value, after providing for doubtful and bad debts. 12. Goods and Services Tax The figures included in the financial statements are exclusive of GST except for accounts receivable and accounts payable, which are inclusive of GST. Where GST is not recoverable as an input tax then it is recognised as part of the related asset or expense. 13. Employee Benefits Provision is made in respect of the Council s liability for annual leave. Annual leave has been calculated on an actual entitlement basis at current rates of pay. 14. Taxation Income tax is charged in the Statement of Financial Performance in respect of current year s earnings after allowing for permanent differences between reported earnings and assessable earnings for income tax purposes. Deferred taxation is determined on a comprehensive basis using the liability method. A debit balance in the deferred taxation account arising from timing differences or income tax benefits from income tax losses, is only recognised where there is virtual certainty of realisation. 15. Basis of Consolidation - Purchase Method The consolidated financial statements includes Council s 100% owned subsidiary Heartland Contractors Ltd accounted for using the purchase method. Corresponding assets, liabilities, revenues and expenses are added together on a line by line basis. All significant inter-entity transactions are eliminated on consolidation. In the Council s financial statements investments in subsidiaries are stated at the lower of cost or fair value. 16. Statement of Cashflows Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid investments in which the Council invests as part of its day-to-day cash management. Operating activities include cash received from all income sources of the Council and records the cash payments made for the supply of goods and services. Investing activities are those activities relating to the acquisition and disposal of non-current assets. Financing activities comprise the change in equity and debt capital structure of the Council. 17. Financial Instruments Revenue and expenditure in relation to all financial instruments are recognised in the Statement of Financial Performance. All financial instruments are recognised in the Statement of Financial Position. Manawatu District Council is risk adverse and seeks to minimise exposure arising from its Treasury activity. 19

20 Introduction 18. Leases Operating lease payments, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are charged as expenses in the periods in which they are incurred. 19. Budget Figures The budget figures shown within this Annual Report are those adopted by Council on 18 June 2003 after a period of public consultation. The budget figures have been prepared in accordance with generally accepted accounting practice and are consistent with the accounting policies adopted by Council for the preparation of the financial statements. 20. Cost of Service Statements The Cost of Service Statements as presented within the Significant Activities section of this report show all revenues and expenditures for each activity including support costs which are allocated in accordance with Council s overhead allocation policy. 21. Landfill Closure and Aftercare Costs As operator of the Feilding landfill, the Council has a legal obligation to provide for the closure and subsequent ongoing maintenance and monitoring services at the landfill site. Council has recognised these costs as well as the aftercare costs attaching to two closed landfill sites in accordance with the requirements contained in accounting standard FRS-15: Provisions in the financial statements for the year ended 30 June Changes in Accounting Policy There have been no changes to the accounting policies adopted in the last audited financial statements. All policies have been applied on a basis consistent with the previous financial year. 20

21 In 2003/04, Council provided various services organised into nine Significant Activities. These are: Community Facilities Democracy District Development Emergency Management Environmental and Regulatory Management Leisure Resources Roading Network Waste Water Format This section summarises results from the 2003/2004 financial year for Council s Significant Activities. Each Significant Activity summary includes the following information: Overall Goal(s) Taken from The Path to Tomorrow (Council s Strategic Plan), the overall aims for each activity. Description The nature and scope of the activity Why is Council involved? Summarises the reasons for Council involvement in each activity, including the key outcomes the activity will contribute towards. What Council has achieved in 2003/2004 Summarises key work programmes, capital developments and special projects during the 2003/04 financial year. How Council has measured its performance Summarises how performance within each activity has been measured, including community opinion, response times, deadlines and compliance with regional standards. Cost of Service Statement Presents the actual costs and sources of funding for the 2003/2004 financial year for each activity. For comparison purposes, the first column contains actual data for 2002/2003 and the last column contains budget information for 2003/

22 Significant Activities Communiity Survey Resullts Background The National Research Bureau (NRB) undertakes an annual community survey for the Manawatu District Council. The survey measures satisfaction with Council services, and asks questions on Council policy and direction, rates issues, contact with Council, information and representation. The survey also compares Council performance against a peer group of Councils and national survey of 1,000 interviews conducted in September Methodology The survey interviewed 401 people throughout the district with respondents randomly selected from the telephone directory. Communitrak surveys are scientifically based on a random probability sample. Weightings were applied to the sample data to reflect the actual ward/gender/age proportions in the area as determined by Statistics New Zealand 2001 Census data. At a 95% level of confidence, the margins of error are ±4.9% based on a 50/50 split on an issue and ±3.9% based on an 80/20 split. Overall results Overall results from the 2004 Communitrak survey were: 58% of residents rated the performance of the Mayor and Councillors as very/fairly good (2003: 66%). 60% of residents rated the performance of Council staff as very/fairly good (2003: 73%). Both these results were on par with the national and peer group average. Manawatu District Council compares very favourably against both the peer group and national averages. Satisfaction with the service received when contacting the Council offices declined slightly to 80% very/fairly satisfied (2003: 88%). 66% (2003: 71%) of ratepayers are very/fairly satisfied with how their rates are being spent The graphs below indicate the five-year trends for overall satisfaction figures for selected Council services*. Please note that the balance is made up of people dissatisfied with the service or unable to comment. *Note: For more detailed information, please refer to the Council services pages in this section. Overall Satisfaction - Selected Services Overall Satisfaction - Selected Services Civil Defence Economic Development Footpaths Rubbish Collection Water Supply Dog Control Library Services Makino Aquatic Centre Parks and Reserves Roads 22

23 Significant Activities Communiity Faciilliitiies Overall Goal To provide and maintain cemeteries, housing and public conveniences to standards that enhances community wellbeing and maintains public health and safety Description Community Facilities includes the activities of Public Conveniences, Cemeteries and Housing for the Elderly and Disabled (HFTE). Currently, Council provides and administers: - Cemeteries in Feilding, Rongotea, Sanson, Halcombe, Kimbolton, Rangiwahia, Waituna West and Pohangina flats for people who are elderly or disabled - Public toilets in Feilding, Sanson, Halcombe and Tangimoana Why is Council involved? Statutory Statutory requirements for cemeteries (Burial and Cremation Act 1964) and public toilets (Health Act 1956) Historical Housing for the Elderly and Disabled involvement stemmed from Central Government funding incentives in the 1950 s to build low-cost housing Community Support Council involvement as a service to the community Cemeteries are important places of remembrance and history Expectation for Council to support elderly in society Community expectation Public expectation for provision of services Community safety Maintain public health and hygiene What Council has achieved in 2003/2004? Operational day to day 1) District cemetery administration and maintenance 2) Housing for the Elderly and Disabled administration and maintenance ($508,706) 3) District public toilets administration and maintenance (not including those on reserves) 4) Annual application of Housing for Elderly and Disabled Rental policy Result Administration and maintenance of district cemeteries completed for 03/04. Expenditure: $158,992. Administration and maintenance of Housing for the Elderly and Disabled completed for 03/04. Expenditure: $518,282. Administration and maintenance of district public toilets completed for 03/04. Expenditure: $45,235. Application of Housing for the Elderly and Disabled rental policy was adopted without change for 03/04. Application of Housing for the Elderly and Disabled rental policy in 04/05 is to be applied immediately within the requirements of the Residential Tenancies Act. 23

24 Significant Activities Capital Renewals, construction and development Result 5) Housing for the Elderly Asset renewals in accordance with Asset Management Plans ($48,000) 6) Continued beautification of the Council-maintained cemeteries in Feilding, Rongotea, Sanson, Halcombe, Kimbolton, Rangiwahia, Waituna West and Pohangina 7) Pohangina cemetery improvement project Stage One ($10,000) Renewal programme to 30 June contained some work undertaken at the landlord s (i.e. Council s) cost as part of the HFTED reinstatement following the February storm. As at end of reporting period $57,466 from renewals total of $48,000 had been expended. Beautification work completed to 2003/04 schedule, including the removal of cracked, lifting paths (Halcombe); building painting (Kimbolton); tree planting (Rangiwahia and Feilding). Meeting held September 2003 with Pohangina representatives to progress Pohangina upgrade. Improvements (stage one) delayed, with funding of $10,000 rolled into 2004/05. Special Projects/Funding 8) Housing for the Elderly and Disabled Service Review Stage Two ($30,000) Result Stage Two of service review (which gives effect to the policies adopted by Council at the end of 2003, including providing Council with financial and management strategies for the continued operation of the units) received by Council on 18 December Further discussion and site visits occurred early In 2004/05, Council will investigate finance options available to assist upgrade of portfolio. Expenditure: $32,853. How Council measured its performance Overall satisfaction with public conveniences (Source: Communitrak) User satisfaction with public conveniences (Source: Communitrak) Overall satisfaction with cemeteries (Source: Communitrak) Visitor satisfaction with cemeteries (Source: Communitrak) Target Result 70% Overall satisfaction results regarding public conveniences were: Very/Fairly satisfied: 55% Not very satisfied: 11% Don t Know: 34% 88% User satisfaction results regarding public conveniences were: Very/Fairly satisfied: 76% Not very satisfied: 15% Don t Know: 9% 70% Overall satisfaction results regarding cemeteries were: Very/Fairly satisfied: 53% Not very satisfied: 3% Don t Know: 44% 95% User satisfaction results regarding cemeteries were: Very/Fairly satisfied: 90% Not very satisfied: 8% Don t Know: 2% 24

25 Significant Activities Target Result HFTE funding (Source: Council records) 100% selffunding Occupancy rate of HFTE units (Source: Council records) Cemetery management and maintenance complies with Burial and Cremation Act 1964 (Source: Council records) Housing for the Elderly and Disabled continues to be self-funding. > 95% Occupancy rate 95.4% for full reporting year July 2003 to June 2004 (please note that February storm event has been treated as a tenanted period as Council received rental reimbursement on damaged units). 100% compliance Management and maintenance of cemeteries provided by Council complies with Burial and Cremation Act Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 553 Housing for the Elderly and Disabled Storm 04 Housing for Elderly Cemeteries Public Conveniences Support Costs Depreciation ,234 Total Operating Expenditure 1,926 1,103 less OPERATING REVENUE 177 District-wide UTR User Fees Storm 04 Funding Total Operating Revenue 1,631 1, NET COST OF SERVICE

26 Significant Activities Democracy Overall Goal To efficiently, effectively and fairly respond to community needs Description Democracy includes one activity Democracy and Policy Development. This covers: - Provision of representative local government - Leadership for the community - Development of appropriate strategies and policies for the delivery of services - Consultation with the community on policy, plans and issues - Liaison with the community, including community committees and Maori - Advocacy to central government on behalf of the community - Strategic and annual planning - Communication of Council s activities and operations Democracy in the community is provided through the Manawatu District Council, which is elected by the First Past the Post (FPP) system. The Local Government Act 2002 is the key piece of legislation associated with this activity. Links have been created with 15 community committees, which assist the Council s planning and consultative processes. Why is Council involved? Statutory Local Authorities are obliged to provide local representation and develop policies by government legislation. Legislations includes the: Local Government Act 2002 Resource Management Act 1991 Dog Control Act 1996 Leadership Leadership to help meet the community vision of community wellbeing, sustained growth and healthy environment Community support and wellbeing Enhance community wellbeing through provision of leadership, responding to community needs, advocacy, policy, decision-making and monitoring the management of Council s business on behalf of the community What Council has achieved in 2003/2004 Operational day to day 1) Implementation of requirements of the Local Government Act 2002, including: - Development of interim Long Term Council Community Plan (LTCCP) - Progressing the development of Community Outcomes - Development of a local governance statement 2) Development of a Triennial Agreement between the regions local authorities Result LTCCP developed and adopted by Council on 25 June Steering Group formed to manage the development of Community Outcomes. The MDC Local Governance Statement prepared and publicly available. A Triennial Agreement for the Manawatu-Wanganui region was completed and signed in December

27 Significant Activities 3) Provide public information to the community through Council newsletters and The Bulletin in the Feilding Herald newspaper Special Projects/Funding Result Council continues to provide a weekly Bulletin in the Feilding Herald. A two monthly Bulletin is also included in the Manawatu district edition of The Guardian. The Annual MDC Ratepayers Newsletter was sent with the first rates assessment in August ) Preparation of assessments of water and sanitary services as required by the Local Government Act 2002 ($40,000) How Council has measured its performance Measure Target Result Performance rating of Mayor and Councillors (Source: Communitrak) Meet financial management statutory responsibilities under the Local Government Act 2002 (Source: Council records) Meet accountability, policy preparation and accounting statutory responsibilities under the Local Government Act 2002 (Source: Council records) A staff working group has been formed to develop this requirement. Expenditure: $6,800. It is expected the work will be complete by June % Communitrak survey results regarding performance of the Mayor and Councillors were: Very/Fairly satisfied: 58% Just Acceptable: 27% Not very satisfied: 8% Don t Know: 7% 100% compliance 100% compliance Financial management statutory responsibilities met Accountability and accounting statutory responsibilities met Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 266 Mayor and Member Costs Other Council Costs Public Relations Strategic Planning Secretariat Election Costs 2 District Wide Assessments / Strategy Support Costs Total Operating Expenditure 1,061 1,087 less OPERATING REVENUES 912 District-wide UTR 1,098 1, Total Operating Revenue 1,098 1, NET COST OF SERVICE (37) (5) 27

28 Significant Activities Diistriict Devellopment Overall Goal To support the economic and social development of Manawatu district communities Description District Development includes three activities: - Community Funding and Development - Economic Development - Feilding Central Business District (CBD) Redevelopment Council s role in this Group is generally one of being a facilitator of activity rather than organising on behalf of the community. Community Funding and Development is concerned with supporting community groups, organisations and initiatives. It involves allocation of funding from Council grants funds (e.g. general grants, heritage improvement fund), Creative Communities and various other funds. Community Development involves projects (e.g. district leisure plan, youth strategy) that enhance community well-being, foster partnerships between community organisations and encourage planning for the future. Some organisations such as Sport Manawatu are contracted to provide services. Economic Development includes: - Funding for promotion of the district - Encouragement of business development - Identification and encouragement of employment initiatives - Facilitation of public information services. In some cases, this involves contracted financial support of projects and key economic development agencies (e.g. Destination Manawatu, Feilding Promotion, Vision Manawatu). Feilding Central Business District Redevelopment is a special project focusing on the redevelopment of Feilding s central business area. Work to date has included the redevelopment of Manchester and Fergusson Streets and Manchester Square. Why is Council involved? District progress - - Help maintain the competitiveness of the district and promote it as a good place to live, work, shop and do business - Attractive, modern and well-serviced CBD essential to promoting the district - Assist in keeping the district competitive with other centres through maintaining the CBD to contemporary standards What Council has achieved in 2003/2004? Operational day to day 1) Fund and administer contracts with Vision Manawatu, Destination Manawatu, Feilding Promotion (includes subcommittee of Grow Feilding - $37,500) and Sport Manawatu funding allocation: VM - $150,000; DM - $170,000; FP - $135,500; SM $55,000 Result Community support and well-being - Social responsibility to assist and support community organisations and individuals Community expectation - Expectation for Council to be involved Three-year contracts (July 2001 to June 2004) are in place with Vision Manawatu, Destination Manawatu and Sport Manawatu. The Feilding Promotion contract period was renewed August 2003 and is for the period July 2003 to June Key Result Areas within all the contracts have been adopted for 2003/04, with funding provided to the above organisations on quarterly invoicing. 28

29 Significant Activities 2) Regional identity/branding (Young Heart, Easy Living) - district involvement (funded from rates) ($50,000) 3) Administer and provide funding through Council s Representative, District and Community Promotion grants ($70,000) 4) Administer the Creative Communities funding scheme ($22,000) 5) Sponsor the Manawatu District Safer Community Council (including contribution towards office administrator) ($35,000) Result Capital Renewals, construction and development Council agreed to a 2003/04 contribution of $50,000 towards the regional identity/brand. Funding is provided to the Manawatu Promotional Trust on quarterly invoicing. Representative, District and Community Promotion grants assessed by Council s Community Funding Subcommittee against approved criteria. Expenditure: $53,596. Creative Communities funding assessed by Council s Community Funding Subcommittee against approved criteria. Expenditure: $22,286. Council s Agreement with the Crime Prevention Unit of the Ministry of Justice was due to expire in July In light of national consultation to discuss the future direction of Safer Community Councils, Council agreed to extend the current Agreement period to 31 October The Agreement period was further extended to 30 June Expenditure: $34,000. 6) Feilding CBD Redevelopment Completion of Manchester Square ($150,000) Special Projects/Funding 7) Camp Rangi Woods contribution towards hall refurbishment ($50,000) 8) Implementation/Monitoring of Leisure Plan - ($5,000) 9) Commitment to Regional Economic Development Strategy 10) Alert community to proposed Community Funding Grants Policy from 04/05 onwards (criteria to be developed during 03/04) 11) Youth Strategy continue development ($10,000) Project completed in August The official opening was held at the end of August. The river feature and remaining seats were installed in December The information board was installed in June Street signage and the upgrade to the Boer Memorial are still to be completed. Minor maintenance to road crossings and irrigation system undertaken. Expenditure: $494,581. Camp Rangi Woods uplifted a grant of $25,000 from the Land Subdivision Reserve in August 2003 to assist with the cost of refurbishing the hall. Camp Rangi Woods have advised the loan will not be required. Expenditure: $25,000. The final District Leisure Plan was circulated September Council has begun to bring aspects of the plan through its existing budgets and planning. Significant investment goes into leisure facilities. Council also appointed a Community Development Officer in late October 2003, a position having some responsibility for implementation of the Leisure Plan. Expenditure: $5. Both the Manawatu District and Palmerston North City Councils adopted the Regional Economic Development Strategy in August Vision Manawatu s Agreement was subsequently amended and adopted by both Councils to measure the performance of Vision Manawatu in facilitating the strategy s implementation. Community Development Funding Policy developed, with draft presented for consideration via the Community Funding Subcommittee early July Council s Strategic Planning and Policy Committee scheduled to receive and adopt policy July Development continuing. Student placement early in 2004 allowed research phase of project to be two-thirds completed. Youth Strategy Working Group scheduled to meet again September Expenditure: $

30 Significant Activities 12) Operational Grant for Feilding and Districts Art Society towards the establishment of a Community Arts Centre in Feilding [reducing to $20,000 (2004/05), $15,000 (2005/06)] (from rates) ($25,000) 13) Provide financial assistance of up to $100,000 for the Manfeild Park Skidpan Project (Community Loan, funded from Special Funds) Result An operational grant of $25,000 for Feilding and Districts Art Society towards the establishment of a Community Arts Centre in Feilding was uplifted in August Operational grant of $20,000 budgeted for 2004/05. No expenditure to date. How Council measured its performance Overall community satisfaction of economic development in the district (Source: Communitrak) Monitoring of contracts between Council and community agencies (Source: Contract Reports) Grants approved meet Council criteria (Source: Community Funding Subcommittee Minutes) Target Result 70% Overall satisfaction results regarding economic development were: Very/Fairly satisfied: 81% Not very satisfied: 8% Don t Know: 11% Six Monthly 100% compliance Feilding Promotion and Sport Manawatu presented six-month reports to 31 December 2003 against 2003/2004 Key Result Areas at Strategic Planning and Policy Committee meeting March Destination Manawatu (DM) and Vision Manawatu (VM) presented six-month reports to 31 December 2003 against 2003/2004 performance targets at Strategic Planning and Policy Committee meeting of March As per the Agreement, the above DM and VM reports were collectively presented to Principle Funders on 9 February All agencies presented six-month reports to 31 December 2003 in March All grants paid in this reporting period have been assessed by the Community Funding Subcommittee and meet criteria. 30

31 Significant Activities Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 292 Community Funding Community Development Economic Development Interest Support Costs Depreciation 3 2 1,018 Total Operating Expenditure 1,114 1,226 less OPERATING REVENUE 20 District-wide UTR User Fees Grants and Subsidies CBD Targeted Rate Total Operating Revenue NET COST OF SERVICE 754 1,090 31

32 Significant Activities Emergency Management Overall Goal To minimise risk to people and property through the provision of effective emergency management services before, during and after an event Description Emergency Management deals with events that place the community at risk. It includes both natural (e.g. earthquakes, floods) and manmade events (e.g. chemical spills) and plans to ensure that Manawatu district communities are prepared to respond and recover from any event. Emergency management comprises three branches: Civil Defence - Civil Defence works through the four Rs of Reduction, Readiness, Response and Recovery. Each phase of Civil Defence provides the planning, training, and public awareness programmes to ensure self-efficacy with-in the Manawatu community to respond and recover from any emergency. There are Community Emergency Centres based in Kimbolton, Pohangina, Longburn, Rongotea, Feilding and Halcombe. Rural Fire - The Manawatu District Council provides a response service to rural fire. Services include: Why is Council involved? Statutory - Council is required to provide these services through the Civil Defence Emergency Management Act 2002, Forest and Rural Fires Act 1977, Resource Management Act 1991, Health Act 1956 and Hazardous Substances and New Organisms Act Issuing fire permits; - Inspection of burn sites; - Determining appropriate fire seasons; - Suppressing and extinguishing rural fires; and - Public education Hazard Response Council is responsible for responding to emergencies involving hazardous substances Community expectation - Public expectation for Council to be the lead agency in the event of a major emergency Community safety - Important to minimise risk to life and property through provision of effective Emergency Management services What Council has achieved in 2003/2004 Operational day to day CIVIL DEFENCE 1) Public awareness programme ($6,000) 2) Maintain school rescue team training programme Result The public awareness programme is ongoing and has piggy-backed the aftermath of the February storm. Beginning July 2004 there will be an awareness programme focusing on personal safety and evacuation. Expenditure: $5,387. The school rescue programme has not been restarted since the storm event of February There will be a re-evaluation of the programme in August Prior to February 2004, the following schools had been involved in the programme during the reporting period: Kiwitea, Bunnythorpe, Taonui, Longburn, Colyton, Awahou, Waituna West, Newbury and Kimbolton. 32

33 Significant Activities 3) Maintain council staff Civil Defence readiness Result Training for council staff re-commenced April 2004 focusing on improving upon lessons learned from the February event. Training includes - use of the updated Civil Defence Emergency Response System; planning for a major earthquake. 4) Participation in Manawatu District Emergency Management Committee (EMC) 5) Ongoing training of volunteers in Civil Defence rescue and rural fire ($4,000) RURAL FIRE 6) Monitor rural fire conditions and keep public informed through the MDC website and media Membership of the Manawatu District Emergency Management Committee (EMC) includes Manawatu District Council, Police, New Zealand Fire Service, St John Ambulance, RNZAF, and Regional Council, a member of the local Tangata Whenua, Work and Income New Zealand. The EMC continues to develop activation procedures and a communications protocol that is consistent with the regional Emergency Management Group (EMG) Plan and since tested by February 2004 events. A total of 13 new volunteers have been recruited and are now part of the Response Team. Expenditure: $4,166. Website has been updated and there has been ongoing rural fire information in the Bulletin. 7) Issue rural fire permits Due to the exceedingly wet summer fire permits have only been necessary in the coastal zone. A total of 11 permits have been issued. 8) Provide rural fire public education Comprehensive rural fire advertising was continued during the reporting period. This consisted of delivering over 2,500 pamphlets including information on how to apply for a permit, when and when not to light fires, what the rural fire terminology means, and what sort of plants to grow near homes. 9) Produce an annual rural fire plan by end of September ) Ongoing training of volunteers in Civil Defence rescue and rural fire The 2003/2004 fire plan was approved by the Chief Executive and signed off by the chair of the Manawatu-Wanganui Rural Fire Committee in October This plan is due for renewal September Up until February 2004, nine training sessions had been conducted in the reporting period for rural fire and Civil Defence volunteers. Training for both groups of volunteers re-started in June Welfare team membership is currently 19, while the rescue and rural fire team consists of 18 volunteers. 11) Implement rural fire plan The fire plan has been implemented (see No. 9 also). Capital Renewals, construction and development CIVIL DEFENCE 12) Replacement of out-of-date VHF radios in Community Emergency Centres ($3,000) 13) Replacement of Civil Defence rescue vehicle ($18,000) Due to a change to the emergency services band in the Very High Frequency (VHF) spectrum there has been no purchase of radios. A new rescue vehicle has been purchased. Expenditure: $15,

34 Significant Activities Special Projects/Funding 14) Civil Defence Emergency Management Group (CDEMG) Lifelines Project ($4,050) Result The Lifelines Project offers the opportunity to centralise hazard data and identify where key vulnerabilities exist throughout the region. Lifelines is a term used to describe the essential services necessary to maintain the infrastructure of the community. Typically they include services such as water, sewage, drainage, gas, power, telecommunications and transportation (road, rail, sea, air). Council s Wastes, Water and Roading Managers are involved in the project. Expenditure: $4, ) Continue Manawatu District Council s involvement in regional Civil Defence Emergency Management Group (CDEMG) 16) Continue Manawatu District Council involvement in Emergency Management Committee (EMC) How Council has measured its performance Council s involvement with the Civil Defence Emergency Management Group (CDEMG) continues via Council representation on the Coordinating Executive Group (CEG) and the EMG Joint Committee. Membership of the Manawatu District Emergency Management Committee (EMC) includes Manawatu District Council, Police, New Zealand Fire Service, St John Ambulance, RNZAF, and Regional Council, a member of the local Tangata Whenua, Work and Income New Zealand. The EMC continues to develop activation procedures and a communications protocol that is consistent with the regional Emergency Management Group (EMG) Plan and since tested by February 2004 events. Target Result Community satisfaction with civil defence organisation (Source: Communitrak) Respond within fifteen minutes to rural fire callouts (Source: Council records) Respond within fifteen minutes to hazard response callouts (Source: Council records) 60% Overall satisfaction results regarding civil defence were: Very/Fairly satisfied: 66% Not very satisfied: 10% Don t Know: 24% 100% compliance 100% compliance Responded within fifteen minutes to rural fire callouts 100% compliance. All hazard response callouts responded to within fifteen minutes. 34

35 Significant Activities Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 107 Civil Defence Civil Defence Storm Rural Fire Hazard Response Support Costs Depreciation Total Operating Expenditure less OPERATING REVENUE 8 Civil Defence 9 8 Civil Defence Storm 04 Funding 469 Rural Fire 5 Hazard Response District-wide UTR Total Operating Revenue NET COST OF SERVICE

36 Significant Activities Enviironmentall and Regullatory Management Overall Goal To meet legislative requirements and community expectations by: Ensuring a healthy environment through appropriate development, sustainable use and protection of environmental resources Helping safeguard public and environmental health and safety through effective regulatory controls, education and other methods Acknowledging and taking cultural issues into account To meet legislative requirements and community expectations for animal control Description Environmental and Regulatory Management includes management and control of activities that have adverse effects on the environment and people. It includes the activities of animal control, building, environmental health, general inspection, liquor licensing and district planning. For budget purposes, each of these areas is split into policy, consents and monitoring and enforcement. Council is required to enforce Council bylaws and central government legislation, including the: - Building Act Dog Control Act Food Act Food Hygiene Regulations Hazardous Substances and New Organisms Act Health Act Housing Improvement Regulations Impounding Act Local Government Act Resource Management Act Sale of Liquor Act 1989 Under many of these Acts, Council has the ability to develop its own policies to suit the needs of the local community. For example, the subdivision and land use controls in the District Plan are determined locally within the guidelines of the Resource Management Act. The main tools in this area are the District Plan, bylaws and government legislation. Animal control involves the control of animals where they pose a danger to people, stock, domestic animals and protected wildlife in the district. Particular emphasis is placed on dog control. A 24-hour service to deal with all complaints and enquiries is provided to the public. Activities include collecting animals for impounding, issuing infringement notices, prosecuting offenders, investigating dog attacks, disposing of unwanted or homeless animals and education programmes. Why is Council involved? Statutory - Council is legislatively required to provide these services by the numerous acts of parliament previously listed. Legal requirement to control animals under the Dog Control Act 1996 and Impounding Act Council bylaws and policy on animal control must be policed. Community expectation - Public expectation to enhance public health through provision of environmental health and safety services and control of animals Community safety - Important to ensure the safety of life and minimisation of property damage - Ensure reduced level of risk to the community through compliance with statutory and Council standards, guidelines and regulations - Encouraging responsible drinking and behaviour Environmental wellbeing - To avoid, remedy or mitigate potential environmental problems and nuisances 36

37 Significant Activities What Council has achieved in 2003/2004 Operational day to day 1) Provide via contract a 24 hour, 7 day a week animal control service, including: - District ranging and monitoring - Respond to complaints about animals, particularly dogs - Impound uncontrolled and wandering animals Result 24 hour, 7 day a week animal control services are provided through contract. Palmerston North City Council is the current contractor. 2) Register new dogs to the district All new dogs known to have arrived in the District are registered. 3) Provide Environmental Health, Building, Sale of Liquor and General Inspection services for the Manawatu District 4) Inspect registered premises/activities and ensure compliance with relevant legislation 5) Respond to environmental complaints/enquiries 6) Issue legislative consents, licences, permits and certificates as required for Environmental and Regulatory Management services 7) Administer and monitor the Manawatu District Council District Plan Special Projects/Funding 8) Feilding Pound upgrade of ablution facilities Environmental and regulatory management services are provided by the Environmental Group, with the assistance of noise control contractors after hours. Inspections ongoing. 285 health/food premises were visited during the year to June Complaints and enquiries were dealt with on a daily basis and tracked through the Council s Huefner system. There were 360 noise complaints received and 103 fly-tipping incidents responded to. 112 abandoned vehicles were removed during the year. Issuing of consents ongoing. During 2003/04 there were 119 land use and 148 subdivision consents issued. 1,271 building consents were issued with the value of work totalling $41,113,756. Code compliance certificates issued totalled 1,488 and 337 Land Information Memorandum were issued. 152 liquor licences were issued. Ongoing. Fourteen changes to the District Plan were made operative in April No action has been taken at this time currently trying to locate suitable building. Expected to complete by July How Council has measured its performance Target Result Community satisfaction with Council s control of dogs (Source: Communitrak) User satisfaction with Council s control of dogs (Source: User Survey) Respond within 15 minutes to verbal notification of an animal attack (Source: Contract Reports) Known dogs registered by 30 August 2003 (Source: Council records) 75% Community satisfaction results regarding control of dogs were: Very/Fairly satisfied: 69% Not very satisfied: 18% Don t Know: 13% 80% All respondents indicated a high level of satisfaction with the service provided. 90% 46 dog attack complaints were received. All were responded to within 15 minutes. 90% 7,043 dogs were registered by the end of September This is 91% of the dogs known to be in the District. Target met. 37

38 Significant Activities Target Result Community satisfaction with the standard of food premises in the District (Source: Communitrak) User satisfaction with resource consent services (Source: User survey) User satisfaction with Council s building services (Source: User survey) User satisfaction with Council s Environmental Health services (Source: User survey) Residential Building consents 10 working day turnaround (where correct application and building standard met) (Source: Council records) Commercial Building consents 20 working day turnaround (where correct application and building standard met) (Source: Council records Environmental Health Licences 20 working day turnaround (where application is complete) (Source: Council records) Liquor Licence Applications determined within 15 working days (where complete file received and Agency is authorised) (Source: Council records) All food premises with a history of poor performance or a poor history of compliance are inspected a minimum of twice yearly (Source: Council records) Liquor Licence Applications referred to Licensing Authority for determination within 10 working days (where external reports received and any other matters satisfied) (Source: Council records) 75% Community satisfaction results regarding food premises were: Very/Fairly satisfied: 58% Not very satisfied: 3% Don t Know: 39% 80% All respondents indicated a high level of satisfaction with the service provided. 80% All respondents indicated a high level of satisfaction with the service provided. 80% No responses have been received to date. 100% 1,110 residential building consents processed, with 9 being outside 10 working day target. (99.2% compliance). 100% 50 commercial building consents processed, with 1 being outside 20 working day target (98% compliance). 100% 218 environmental health licenses processed, all within 20 working days. Target met. 100% 152 liquor licence applications processed, all within 15 working days. Target met. Twice yearly inspection All high risk premises inspected at least twice. 100% No liquor license applications referred for determination. 38

39 Significant Activities Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 123 Animal Control Planning Costs Building Controls Environmental Health General Inspection Liquor Licensing Support Costs Depreciation 4 3 1,283 Total Operating Costs 1,323 1,348 less OPERATING REVENUE 101 Animal Control User Fees District Planning User Fees Building Controls User Fees Environmental Health User Fees General Inspection User Fees Liquor Licensing User Fees District-wide UTR ,239 Total Operating Revenue 1,416 1, NET COST OF SERVICE (93) 87 39

40 Significant Activities Leiisure Resources Overall Goal Council acknowledges that leisure, in all its various forms, is an important component of individual and community life. Council, as its commitment towards leisure will: Actively work towards meeting the vision, outcomes and objectives of the Leisure Plan Maintain, where appropriate, existing leisure resources of the district Help develop new leisure resources where there is a demonstrated need, subject to appropriate resources Work with key partners and other agencies to: Promote and encourage leisure activities and opportunities throughout the district Improve accessibility and opportunities for leisure where barriers exist Advance Maori culture and language in the district s leisure resources where appropriate Consult regularly with the community to ensure needs are being met Monitor and recognise changing leisure trends and plan appropriately Monitor and review progress against the outcomes and objectives of this Leisure Plan Overall - Description The Manawatu district has excellent natural and manmade leisure resources ranging from the surf of Himatangi Beach to the trout fishing of district rivers to tramping through the native bush of the Ruahine Ranges. Council helps provide and maintain a number of leisure facilities in the district. Overall - Why is Council involved? Statutory Council is required to provide some of these services by the: - Local Government Act Reserves Act Resource Management Act 1991 Community expectation Public expectation for provision of services Community support and wellbeing: - Availability of information, books and leisure resources - Libraries and archives are available as a learning resource for district residents - Provision of assets to enhance the social fabric and physical health of district communities - Provision of services and facilities to meet people s leisure and recreation needs Leisure Resources includes the following activities: Libraries and archives Local halls and recreation complexes Parks, reserves and sportsgrounds Makino Aquatic Centre History Guardian of irreplaceable historical material Collective provision Collective provision of services and facilities more viable than individual provision 40

41 Significant Activities LIBRARIES AND ARCHIVES The main library is located in Feilding, with part-time volunteer-staffed libraries in Apiti, Himatangi Beach, Kimbolton, Longburn, Pohangina, Rongotea, Sanson, Taikorea, Tangimoana and Waituna West. The library provides a recreation and information service to district residents, assists community libraries and provides an environment that encourages people to read and seek information What Council has achieved in 2003/2004 Operational day to day 1) Provide a library service to the Manawatu district, including community libraries Result The library was refurbished in 2002 and is situated close to the centre of Feilding. It provides public internet access. Services offered include talking books for the visually impaired, a housebound service and holiday and summer reading programmes for children. 2) Promote library use among the 29 primary schools were visited during the third term of 2003 on a District s children through regular weekly basis; school holiday programme held in first week of September contact with schools and the 2003 holidays; Summer Reading Programme run for 300 children and provision of reading and school 40 young adults. 18 primary school classes visited during the second holiday programmes term of Capital Renewals, construction and development 3) Library book purchases ($115,000) 4) Install new library software (from rates over five years) ($100,000) Special Projects/Funding 5) Promote the Library as a venue for displays, exhibitions, etc. 6) Offer a search database to Library users Expenditure on library book purchases to 30 June 2004: $115,705. Liberty3 software installed. Expenditure: $95,815. This is ongoing, with book reviews in the Feilding Herald, regular news stories and an increasing number of community groups utilising the free community space offered. EPIC databases now available within the Library. Service to be made available on the Internet via new software in 2004/05. How Council has measured its performance Measure Target Result Overall satisfaction with the library service (Source: Communitrak) User satisfaction with the library service (Source: Communitrak) 80% Overall satisfaction results regarding the library were: Very/Fairly satisfied: 69% Not very satisfied: 1% Don t Know: 30% 93% User satisfaction results regarding the library were: Very/Fairly satisfied: 94% Not very satisfied: 1% Don t Know: 5% Total number of issues (Source: Council records) 400, ,947 to 30 June Cost per capita* (not to exceed) (Source: Council records) Stock turnover* (Source: Council records) To exceed 4.5 *Compared against five similar New Zealand libraries $24.26 $

42 Significant Activities Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 426 Operating Costs Support Costs Depreciation Total Operating Expenditure less OPERATING REVENUE 47 User Fees Other Revenue Uniform Targeted rate Total Operating Revenue NET COST OF SERVICE 10 (27) 42

43 Significant Activities LOCAL HALLS AND RECREATION COMPLEXES Council owns a number of halls and helps fund other halls in local communities throughout the district. These include large indoor complexes the Feilding Civic Centre and Te Kawau Memorial Recreation Centre. Council also supports the Feilding Community Centre and Little Theatre. What Council has achieved in 2003/2004 Operational day to day 1) Provide and maintain local halls (under the MDC Hall Management Policy) and other recreation complexes 2) Provide and maintain the Feilding Civic Centre ($72,150) 3) Provide local hall emergency fund ($10,000) Result Expenditure: $2,675. Capital Renewals, construction and development Provision and maintenance of local halls under the MDC Hall Management Policy progressing as scheduled. Annual meeting of Hall Committee representatives was held October Provision and maintenance of the Feilding Civic Centre progressed as scheduled in this reporting period. Operational grant and responsibilities (and Capital budget balance) passed to the Feilding Civic Centre Trust on 1 July Expenditure: $55,317. Total local hall emergency fund for the reporting period is $10,000. Hall committees making application to this short-term maintenance fund (via the Hall Management Policy) need to show: All available resources retained by halls have been used The hall fees structure can be justified There is community justification for a hall to remain on the site The level of volunteer support for their hall 4) Civic Centre Upgrade (funded from special funds, carried over from 2002/03) ($170,000) 5) Continue the long-term maintenance programme of district halls (projects will be drawn from list below) ($38,000) Final Capital expenditure for replacement of theatre curtains/tracking/frame; basketball backboards/hoops. Expenditure: $12,030. Expenditure: $34,547. Actual ($) Budget ($) Awahuri Re-metal carpark 1,500 1,500 Update: Carpark re-metalling completed December 2003 Colyton Exterior repaint 8,365 8,300 Update: Exterior repainting completed April 2004 Halcombe Pre-paint repairs 972 1,200 Update: Repairs completed April 2004 Himatangi Beach Rewire stage hotpoints 376 1,000 Update: Roof tiles replaced instead June 2004 Kairanga Replace windows 1,909 2,500 Update: Windows replaced November 2003 Kimbolton Repaint public toilet 1,781 2,000 Update: Public toilet repainting completed June 2004 Kiwitea Line ladies toilet 923 1,000 Update: Spouting and drainpipes instead June 2004 Kopane Paint ceiling 500 Update: Project not started hall badly damaged in flood Mt Biggs Painting maintenance Update: Painting maintenance funded July 2003 Pohangina Water blast roof

44 Significant Activities Update: Roof water blasted June 2004 Rangiwahia New roof 5,408 5,600 Update: New roof completed June 2004 Rangiotu Repaint windows 1,019 1,200 Update: Window painting completed June 2004 Sanson Replace acoustic filters 2,100 2,000 Update: Acoustic filters replaced September 2003 Taikorea Re-roof porch Update: Re-roof of porch completed June 2004 Tangimoana Replace rotten floorboards 300 Update: Project not started hall damaged in flooding Te Arakura/Taonui Stage upgrade/paint interior 656 1,500 Update: Steps instead completed January 2004 Waituna West Exterior repaint 8,417 8,500 Update: Exterior repainting completed December 2003 $34,547 $38,230 How Council has measured its performance Measure Target Result Overall community satisfaction with community halls and recreation complexes (Source: Communitrak) User satisfaction with community halls and recreation complexes (Source: Communitrak) Cost of Service Statement for the year ended 30 June % Overall satisfaction results regarding community halls and recreation complexes were: Very/Fairly satisfied: 74% Not very satisfied: 10% Don t Know: 16% 85% User satisfaction results regarding community halls and recreation complexes were: Very/Fairly satisfied: 83% Not very satisfied: 13% Don t Know: 4% Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 174 Operating Costs Storm 04 operating Costs Support Costs Depreciation Total Operating Expenditure less OPERATING REVENUES 17 User Fees Storm 04 Funding District-wide UTR Total Operating Revenue NET COST OF SERVICE

45 Significant Activities MAKINO AQUATIC CENTRE Council provides the Makino Aquatic Centre (MAC) situated in Feilding. The outdoor complex includes a 50 metre Olympic Pool, dive pool, learner s pool and toddler s pool. The indoor complex includes a 25- metre pool and a learner s pool. What Council has achieved in 2003/2004 Operational day to day 1) Provide and maintain the Makino Aquatic Centre to Manawatu district residents. 2) Provide swimming lessons and programmes (e.g. babies, preschool, Nifty 50s, Aqua aerobics). 3) Annual review of MAC Operations Manual Result Provision and maintenance of Makino Aquatic Centre provided to schedule acknowledging there was some interruption to maintenance programmes and public accessibility in the aftermath of the February storm event. Front entranceway exterior painting completed. Provision of swimming lessons and new school programmes progressed as scheduled, with some interruption to activities in the aftermath of the February storm event. Updated May Capital Renewals, construction and development 4) Continue MAC Asset Renewal Programme ($70,000) Special Projects/Funding 5) Implement a marketing strategy for the Makino Aquatic Centre 6) Continue customer surveys for all Makino Aquatic Centre programmes and general usage There were some alterations to renewal programme priorities following February s storm event: Replaced reception printer, lane ropes and roller (Indoor Pool) Foot valve renewed (Learners Pool) Replaced vacuum cleaner pump Renewed pipes (Outdoor Pool) Covered BBQ area completed and new BBQ installed Replaced balance tank valve MAC security system renewed (including alarms and smoke detectors) Installed new phone system Replaced shade area structure Expenditure: $71,573. The Makino marketing strategy is built around a four-pronged publicity campaign: Further signage, which has been erected on Aquatic Centre s Grey Street perimeter fence. New signage has been installed above main entranceway to complex in January 2004 following completion of stage one of exterior painting. Promotional talks in local schools Surveys are used for continual improvement to the pool Use of promotional brochures Together these aim to promote wider usage of the Makino Aquatic Centre. Customer surveys on all MAC programmes and to gauge general usage satisfaction are ongoing. 45

46 Significant Activities How Council has measured its performance Measure Target Result Overall community satisfaction with the Makino Aquatic Centre (Source: Communitrak) 82% Overall satisfaction results regarding the Makino Aquatic Centre were: Very/Fairly satisfied: 67% Not very satisfied: 1% Don t Know: 32% Measure Target Result User satisfaction with the Makino Aquatic Centre (Source: Communitrak) Total admissions revenue (Source: Council records) Meet New Zealand Water Quality Standard NZ 5826: % User satisfaction results regarding the Makino Aquatic Centre were: Very/Fairly satisfied: 93% Not very satisfied: 2% Don t Know: 5% $110,000 $96,170 (87%) 100% Qualified staff undertake regular water testing. Monthly Bio Lab testing confirms 100% compliance with New Zealand Water Quality Standard NZ 5826:2000 in reporting period. Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 668 Operating Costs Storm 04 Operating Costs Support Costs Depreciation Asset Write-offs Total Operating Expenditure 1, less OPERATING REVENUE 232 User Fees Storm 04 Funding Uniform Targeted Rate Total Operating Revenue 1, NET COST OF SERVICE (113) (2) 46

47 Significant Activities PARKS, RESERVES AND SPORTSGROUNDS Council provides and maintains recreation facilities, sportsgrounds and open spaces for the benefit and welfare of individual citizens and sports groups. Specific activities include operation and maintenance of parks and reserves, four small Community pools, urban and rural beautification, playgrounds and sportsgrounds. What Council has achieved in 2003/2004 Operational day to day 1) Provision and maintenance of district parks, reserves and sportsgrounds 2) Manfeild Park (ex-racecourse) operational budget Result Maintenance of district parks, reserves and sportsgrounds was on schedule prior to the February 2004 storm. Following February s event work concentrated on repairs to prepare for Winter sports and to open up access to damaged reserves. Restoration work is ongoing. Operational aspects of Manfeild Park (ex-racecourse) progressed to budget. Expenditure: $103,486 (95%). Capital Renewals, construction and development 3) Kitchener Park Development ($11,000) 4) Manfeild Park - Implement priority capital works (funded from loan)($2,000,000) 5) Parks and Reserves Capital projects (these will be selected from the following list): ($50,000) Kitchener Park 2003/04 tree planting was completed with the assistance of community workers. Boardwalk and the viewing platform also completed. Task Force Green (TFG) worker now helping with storm damage repairs. Expenditure: $7,160. Planned infrastructural works and 2003/04 timeline: October 2003 Aerial photography and detailed site survey completed. November 2003 Detailed design and estimates completed. December 2003 Contract documentation completed. January 2004 Tenders advertised late January February to June 2004 Planned construction period. July 2004 Construction works scheduled to be completed. Due largely to the February 2004 storm, construction is now scheduled to be finished mid-september. In addition to the contract work, old fences have been removed from South Street, Kawakawa Road and the centre of the Racecourse. A low rail fence has been erected along South Street to prevent cars etc. accessing the grounds. A car park has been formed by the children s playground and new tree planting carried out in the vicinity of the play area. Expenditure: $298,685. Total Capital projects budget for the reporting year is $50,000. Expenditure: $67,339. Budget Actual ($) ($) Kaikokopu Stream construction of log barrier 3,000 Update: Work completed (cost of $3,028 recorded against Himatangi sand dune budget) Rimu Park drainage work 20,000 Update: Not progressed in reporting period 47

48 Significant Activities Mt Lees possum control work 4,900 5,000 Update: Ongoing assistance from Horizons Regional Council with programme Rural pools - upgrade pumps and automate dosing systems 10,000 Update: Scheduled as part of renewal work for 2005/06 Kowhai Park - seal walkway along Camellia walk 20,000 Update: Not progressed in reporting period storm damage Tennis courts - resurface (Halcombe, Rewa, Himatangi) 35,000 Update: Halcombe courts resurfaced (as part of maintenance contract) Timona /Johnston Park - seal riverside drive way 30,000 Update: Not progressed in reporting period storm damage District play ground development 12,676 30,000 Update: Safety surfaces placed under equipment at Timona and Kowhai Parks Other Projects CBD Irrigation System installation of irrigation system in Manchester 25,000 Square (had been budgeted for 2002/03) Totara Reserve new plantings (before February storm) 3,522 Kitchener Park boardwalks, viewing platform (before February storm) 5,096 Kowhai Park footpath at back of Kowhai Park, seating (before 15,950 February storm) Tangimoana general 195 $67,339 $153,000 Special Projects/Funding 6) Manfeild Park - Future Development (funded from a loan) ($2,000,000) Result See No. 4 above for details. 7) Annual community investment contribution towards the operation of Manfeild Park (funded from special funds) ($140,000) Funding carried over to current financial year: money was put aside for the Manfeild Trust, which was formed in August. How Council has measured its performance Measure Target Result User/visitor satisfaction with parks and reserves (Source: Communitrak) Overall satisfaction with parks and reserves (Source: Communitrak) User satisfaction with sportsgrounds and playgrounds (Source: Communitrak) 95% User/visitor satisfaction results regarding parks and reserves were: Very/Fairly satisfied: 91% Not very satisfied: 6% Don t Know: 3% 92% Overall satisfaction results regarding parks and reserves were: Very/Fairly satisfied: 84% Not very satisfied: 5% Don t Know: 11% 90% User satisfaction results regarding sports grounds and playgrounds were: Very/Fairly satisfied: 80% Not very satisfied: 11% Don t Know: 9% 48

49 Measure Target Result Overall satisfaction with sportsgrounds and playgrounds (Source: Communitrak) Response to emergency maintenance requests within specified contract times (Source: Council records) 85% Overall satisfaction results regarding sportsgrounds and playgrounds were: Very/Fairly satisfied: 69% Not very satisfied: 8% Don t Know: 23% 95% Response to emergency maintenance requests achieved within specified contract times during reporting period. Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 1,251 Operating Costs 1,132 1,239 Storm 04 Operating Costs Interest Paid Asset Management Support Costs Depreciation Asset Write-offs 1,950 Total Operating Expenditure 1,757 1,708 less OPERATING REVENUE 81 User Fees Storm 04 Funding 32 1,369 Parks and Reserves Rate 1,483 1,483 1,450 Total Operating Revenue 1,586 1, NET COST OF SERVICE

50 Significant Activities Roadiing Network Overall Goal To develop and maintain a roading network appropriate to community usage, demand and ability to fund Description Historically, roading has been a major focus of local authorities. Council manages a roading and footpaths network in the Manawatu district comprising: - 1,291.7 km of rural roads km of urban roads bridges km of footpaths - 1,552 streetlights and 807 poles Approximately half of district roading work is subsidised by central government through Transfund. Transit New Zealand is wholly responsible for upkeep of district state highways. The management and pricing structure of the roading activity has been the subject of central government review over the last few years. The roading activity includes: - Repairs and maintenance of current roading and bridges - Sealing and resealing - Drainage, kerb, channelling and culverts - Signage, cycleways, lighting and road safety - Footpath construction and maintenance Council has an agreement with Transfund New Zealand for the implementation of Manawatu District Council s component of the 2003/2004 National Roading Programme. Why is Council involved? Statutory - Meet requirements of the Local Government Act 2002 and the Transit New Zealand Act 1984 as the Road Controlling Authority for Manawatu district roads. Community expectation - Public expectation for provision of services Community support and wellbeing - Safe roading network provided to meet district needs District progress - Essential for economic development of the district Collective provision - Collective provision of services and facilities more viable than individual provision What Council has achieved in 2003/2004 Operational day to day 1) Urban roading network maintenance. ($230,750) 2) Rural roading network maintenance. ($1,580,250) Approve Emergency Works ($7,765,000) Result Contract 01/04 - Road Maintenance. Majority of Urban maintenance being carried out by Fulton Hogan. Expenditure to date: $166,862 Contract 01/04 - Road Maintenance. Majority of Rural maintenance being carried out by Fulton Hogan. Expenditure to date: $1,917,033 (includes $66,661 of preventative Mtce) Expenditure on Storm Damage Repairs. $8.178,511 50

51 3) Bridge, culvert and structures maintenance. ($245,000) 4) Traffic signage, road markings and lighting maintenance ($345,000) 5) Operation and management of the roading network ($618,202) Result Contract 01/04 - Road Maintenance. Majority of Bridge maintenance carried out by Fulton Hogan. Expenditure to date: $317,921 Contract 00/36 Specialist Concrete Repairs at 11 sites. Contract awarded to Riverside Construction Ltd of Levin for $98, plus GST. Expenditure to date: $91,032. Contract 01/02 Raumai Bridge Protection Work. Contract awarded to Tararua Roading Ltd of Woodville for $140, plus GST. Expenditure to date: $73,480 Contract 01/04 - Road Maintenance. Majority of Traffic services being carried out by Fulton Hogan. Contract 02/26 - Pavement Marking being carried out by Pavement Marking Services Ltd. Contract 00/18 Streetlight Maintenance carried out by Alf Downs Streetlighting Ltd. Contract expenditure $100,472 Expenditure to date: $364,294 Contract 03/12 Professional Services for Roading being carried out by Council s Contracts Management Unit. Expenditure: $1,003,226 (includes storm damage professional services) Contract 04/09 RAMM Road Rating Survey. Tender awarded to Bri- Ken & Associates Ltd from Palmerston North for $21, plus GST. Expenditure to date: $12,356 Contract 04/10 RAMM Road Roughness Survey. Tender awarded to ARRB Ltd from New Plymouth for $12, plus GST. Expenditure to date: $10,431 Expenditure to date: $500,704 6) Strategy Study ($50,000) Contract 03/19 - Route Strategy Study. Work carried out by GHD (consultants). Expenditure to date: $42,000 Total Maintenance Budget Total Expenditure to date: $11,488,882 ($3,069,202) Capital Renewals, construction and development 7) Urban roading network renewals ($64,000) 8) Rural roading network renewals ($320,000) 9) Bridge, culvert and structures renewals ($228,000) Contract 01/04 - Road Maintenance. Majority of Urban Renewal Work being carried out by Fulton Hogan. Expenditure to date: $21,013 Contract 01/04 - Road Maintenance. Majority of Rural Renewal Work being carried out by Fulton Hogan. Expenditure to date: $379,651 Contract 01/04 - Road Maintenance. Some of the Bridge Renewal Work being carried out by Fulton Hogan. Contract 03/20 Jacks Bridge Strengthening on Kairanga-Bunnythorpe Road. Tender documents being prepared. Contract 03/27 Cawood Road Bridge Strengthening. Completed by Fulton Hogan under emergency works. Contract 03/28 Campbell Road Bridge. Investigation being carried out. Expenditure to date: $80,815 51

52 Significant Activities Result 10) Traffic signage, road markings and lighting renewals ($238,000) 11) Resealing of 100km of roadway surface ($1,600,000) 12) Area Wide Pavement Treatment of 14km of roadway surface ($1,950,000) 13) Reconstruction of carriageway, kerb and footpaths ($250,000) Contract 01/04 - Road Maintenance. Majority of Traffic services renewals being carried out by Fulton Hogan. Contract 02/26 - Pavement Marking renewals being carried out by Pavement Marking Services Ltd. Contract 00/18 Streetlight Maintenance renewals carried out by Alf Downs Streetlighting Ltd. Expenditure to date: $151,252 Contract 03/14 Reseals 2003/04. Contract awarded to Higgins Contractors of Palmerston North. (Contract value amended to $1, plus GST. Contract expenditure to date: $507,125 for km (22400 sq metres) Expenditure to date: $499,316 Contract 03/15 AWPT Bunnythorpe Area. (4.419km) Contract awarded to Higgins Contractors of Palmerston North for $1,049, plus GST Newbury Line (758 m) complete Stoney Creek Road (787 m) complete Ashhurst Road. Preparation (2874 m) complete but only (1000 m) 35% of surface sealed. Expenditure to date: $925,662. Contract 03/16 AWPT Halcombe Area (1.830km) Contract awarded to Fulton Hogan from Feilding for $476, plus GST. Contract completed. Expenditure to date: $450,822 Contract 03/17 AWPT Ohakea Area. Contract being prepared. Contract 03/18 AWPT Feilding Area. Contract being prepared. Contract 03/25 AWPT Kimbolton Area. (1.170km) Contract awarded to JB Ware & Sons Ltd from Palmerston North for $222, plus GST. Contract currently on hold. Contract 03/26 AWPT MacKays Line (1.576km) & Reu Reu Road (0.550km) Contract awarded to Stringfellow Contracts Ltd from Eketahuna for $436, plus GST. Contract completed. Expenditure to date: $414,890 Total AWPT expenditure to date: $1,749,736 Contract 02/03 Manchester Street Urban Reconstruction (310 metres). Tendered but contract now on hold. Expenditure to date: $0 52

53 Result 14) Minor Safety Works ($290,000) Various projects being investigated. Some work identified in-conjunction with AWPT contracts. Also stock underpasses and intersection improvements. 15) District Footpath upgrading programme ($135,000) Expenditure to date: $114,284 Contract 03/02 - Concrete Footpath Construction in Feilding. Contract let to Fulton Hogan for $36, Expenditure to date: $37,325 Contract 04/01 Footpath Construction (Feilding). Contract awarded to Fulton Hogan of Feilding for $93, plus GST. Poole Street completed South Street West completed Monckton Street nearing completion Sherwill Street nearing completion Expenditure to date: $61,506 Contract 04/03 Footpath Construction (Himatangi & Sanson). Awarded to Keegan Contractors for $39, plus GST. Himatangi Street completed Farmer Street, Sanson nearing completion Expenditure to date: $18,617 Total expenditure to date: $87,534 16) Effluent Dump Site ($50,000) Design being finalised. Land negotiations continuing. Expenditure to date: $0 17) Rural Walkway construction. ($5,000) To be considered together with footpath construction programme. Expenditure to date: $0 18) Contribution towards the To be considered together with Minor Safety Projects. installation of private stock Expenditure to date: $0 underpasses in accordance with Council policy ($5,000) Total Capital Budget ($5,140,000) Total Expenditure to date: $3,099,459 How Council has measured its performance Measure Target Result Community satisfaction with district roads (Source: Communitrak) Community satisfaction with district footpaths (Source: Communitrak) 80% Community satisfaction results regarding district roads were: Very/Fairly satisfied: 69% Not very satisfied: 31% Don t Know: 0% 65% Community satisfaction results regarding district footpaths were: Very/Fairly satisfied: 63% Not very satisfied: 26% Don t Know: 11% 53

54 Significant Activities Measure Target Result The average roughness of the sealed roads to be less than 100 NAASRA counts per kilometre (Source: RAMM report) The number of reported injury crashes occurring on the roading network shall continue to decline (Source: LTSA Database) Less Than 100 < previous year Level of service (roughness) sealed roads. 1 July 1999 to 30 U=95.0 R=75.0 June 2000 Total= July 2000 to 30 U=96.0 R=75.0 June 2001 Total= July 2001 to 30 U=97.2 R=75.9 June 2002 Total= July 2002 to 30 U=94.5 R=71.7 June 2003 Total=74.3 (1 July 2003 to 30 U=97.1 R=73.6 June 2004 Total=76.2 Injury crashes on local roads within Manawatu District 1 July 1999 to 30 June July 2000 to 30 June July 2001 to 30 June July 2002 to 30 June July 2003 to 30 June Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 4,072 Subsidised Maintenance 3,181 2,866 Storm 04 Subsidised Maintenance 8, Non-Subsidised Maintenance Interest Paid Asset Management Support Costs Write-offs 271 1,052 3,254 Depreciation 3,153 3,232 8,579 Total Operating Expenditure 15,382 7,921 less OPERATING REVENUE 4,608 Transfund Subsidy 3,526 3,863 Storm 04 Transfund Subsidy 7, Other Roading Revenues District-wide UAC ,146 Roading and Footpaths Rate 4,011 4,011 9,274 Total Operating Revenue 15,829 8,687 (695) NET COST OF SERVICE (447) (766) 54

55 Waste Overall Goal Waste Management Acknowledging and taking cultural issues into account, to safeguard public health by managing the district s waste materials in an efficient, environmentally friendly and cost effective manner Waste Minimisation Acknowledging and taking cultural issues into account, to promote waste reduction towards zero waste through education, development and implementation of recycling, reuse and recovery methods Overall - Description Waste includes the activities of Solid Waste (including collection, disposal and recycling) and Wastewater. While waste volumes have increased in recent years, so has awareness of the effects of waste on the environment. An average of 2.5kg of residential solid waste is generated per person per day in New Zealand. Community feedback consistently indicates Overall - Why is Council involved? Statutory - Council is required to provide some of these services through the Local Government Act 2002, Health Act 1956 and Resource Management Act 1991 Community expectation - Public expectation for provision of services Collective provision - Collective provision of services and facilities more viable than individual provision that minimising waste volumes, encouraging recycling and managing waste well is important. Higher levels of wastewater treatment are expected by national and regional Council standards. Many of the district s wastewater schemes are or have been upgraded in the last few years to meet these standards. Community safety - Vital to prevent disease and maintain a healthy community District progress - Important to encourage business development/ expansion Environmental wellbeing - Important to maintain and develop a clean, green environment Towards zero waste and a sustainable New Zealand the New Zealand Waste Strategy was published in March This strategy aims to cut down the waste we generate and discard. It includes six core principles that will guide central and local government in implementing the strategy: Global citizenship Our responsibility to protect the environment extends beyond New Zealand s borders Kaitiakitanga/stewardship All members of society are responsible for looking after the environment, and for the impact of products and wastes they make, use and discard Extended producer responsibility Producers have a degree of responsibility for their products throughout the product s lifecycle, from production through to final disposal Full-cost pricing The environmental effects of production, distribution, consumption and disposal of goods and services should be consistently costed, and charged as closely as possible to the point they occur Life-cycle principle Products and substances should be designed, produced and managed so all environmental effects are accounted for and minimised during generation, use, recovery and disposal Precautionary principle Where there is a threat of serious or irreversible damage, lack of full scientific certainty should not be a reason for postponing cost-effective measures to prevent environmental degradation or potential adverse health effects The New Zealand Waste Strategy contains voluntary national targets for priority waste areas, many of which impact on Council s activities. These targets will be considered for inclusion in Council s Long Term Financial Strategy and Waste Management Plan when these plans are next reviewed. 55

56 Significant Activities SOLID WASTE Solid Waste management in the Manawatu district has been developed through implementation of the Waste Management Plan. Solid Waste refers to items such as garden waste, old washing machines, commercial waste and normal household rubbish. Refuse disposal services provided by Council include the Feilding Landfill and refuse transfer stations at Feilding, Bunnythorpe, Kimbolton and Kaimatarau Road (near Rongotea). Litterbins are provided in towns throughout the district. Bulk collections and coin-operated skip bins are provided in some communities. Weekly refuse collection services in townships and along rural routes are provided under contract in the district. The main recycling centre is in Feilding with satellite services in some townships and the refuse transfer stations. A weekly kerbside recycling service is provided in Feilding. What Council has achieved in 2003/2004 Operational day to day 1) Review Waste Management Plan ($5,000) 2) Key Operational Contracts - listed below: - Collection of household/business refuse bags - Provision of facilities for depositing recyclable materials and kerbside collection of recyclables in Feilding. - Provision of waste handling facilities and services where appropriate (e.g. refuse transfer stations, coinoperated skip bins, bulk collections, litter bins) - Disposal of solid waste through operation of the Feilding Landfill 3) Education about Waste Minimisation ($10,000) 4) Measurement programme for organic and construction/ demolition waste streams ($5,000) Result This review has commenced and a discussion paper has been prepared. The review will continue in 2004/05. Expenditure: $5,609 All contracts operated according to specifications, weights for the 2003/04 year were: Refuse bag collection 1725 tonnes Recycling centres 421 tonnes Kerbside recycling Feilding 449 tonnes Rural Transfer Stations 417 tonnes Feilding Landfill refuse 9735 tonnes Scrap steel 116 tonnes plus 463 car bodies. Waste audits for 3 businesses were identified however not completed due to our offers being not accepted. Advertising on recycling and rural waste disposal options. Expenditure: $Nil A Solid Waste Analysis Protocol survey was undertaken in June 2004 to measure the composition of the whole waste stream. Expenditure: $5,660 How Council has measured its performance Measure Target Result User satisfaction with refuse disposal services (Source: Communitrak) 60% User satisfaction results regarding refuse disposal services were: Very/Fairly satisfied: 73 % Not very satisfied: 21% Don t Know: 6% 56

57 Measure Target Result User satisfaction with refuse bag collection services (Source: Communitrak) Greenwaste diverted from Feilding landfill (Source: Council records) 80% User satisfaction results regarding refuse bag collection services were: Very/Fairly satisfied:81% Not very satisfied: 8% Don t Know: 11% 1600 tonnes/ year Full Year: 2172 tonnes diverted from Feilding landfill. Recyclables diverted from Feilding landfill (Source: Council records) 800 tonnes/year 870 tonnes Compliance with Resource Consent conditions (Source: Council records) Compliance with Ministry of Health requirements (Source: Council records) 100% No non-compliances noted by Horizons Regional Council. 100% No issues reported. Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 880 Operating Costs 995 1, Interest Asset Management Support Costs Depreciation 9 4 1,010 Total Operating Expenditure 1,167 1,173 less OPERATING REVENUE 461 User Fees Interest Received District-wide UTR Total Operating Revenue 1,144 1, NET COST OF SERVICE

58 Significant Activities WASTEWATER Wastewater in most townships within the Manawatu district is managed through a number of schemes. Sewage is collected, treated and disposed of in Bunnythorpe, Feilding, Halcombe, Longburn, Rongotea and Sanson. Septic tank effluent is collected, treated and disposed of in Awahuri, Cheltenham and Kimbolton. The largest wastewater scheme is in Feilding, serving over 5000 properties. What Council has achieved in 2003/2004 Operational day to day Result 1) Collection, treatment and disposal of sewage (including trade wastes) through wastewater schemes in Awahuri, Bunnythorpe, Cheltenham, Feilding, Halcombe, Kimbolton, Longburn, Rongotea and Sanson All schemes operating well. Halcombe The irrigation system was out of service from 16 February to 17 May due to damage caused by the Storm event. Sanson Tree planting was carried out in October 2003 but some replanting will be required. The irrigation system started to operate in January Rongotea - The new maturation pond, wetlands, rock filter, aerator, and chemical dosing system are operational. Some problems have been experience with the screen and are being investigated. Bunnythorpe The rising main which takes the pond effluent to Feilding was damaged where it crosses the Oroua River in the Flood event. The rising main will be repaired at the same time as the watermain from the bores. 2) Asset Management Identify Asset Management Plan is being revised (about 90% complete). condition and performance of assets, optimise operation of assets, investigate requirements for replacing and providing new assets Capital Renewals, construction and development 3) Wastewater Asset renewals ($373,000) 4) Continue Feilding Wastewater Treatment Plant upgrade ($500,000) 5) Kimbolton Wastewater improvements to discharge from oxidation pond (carried over from 2002/03) ($30,000) Manchester Street sewer renewal project was completed in August Denbigh Street (eastern side) sewer renewal project commenced construction in June The renewal of the digester electrical equipment, influent pump VSDs and an air blower at Feilding STP have been completed. Expenditure: $ 165,724 UV disinfection system Stage 2 equipment has been installed and is operational. Investigations have commenced into suitable land for irrigation of treated effluent. Expenditure: $ 230,941 This discharge has been in compliance with the current resource consent requirements so no improvements have been required. Expenditure: $ Nil How Council has measured its performance Measure Target Result User satisfaction with sewage disposal services (Source: Communitrak) 90% User satisfaction results regarding sewage disposal services were: Very/Fairly satisfied: 96% Not very satisfied: 3% Don t Know: 1% 58

59 Measure Target Result Response to incidents (e.g. sewer main blockage) within specified contract times (Source: Council records) Unauthorised discharges from wastewater reticulation systems (Source: Council records) Compliance with Resource Consent conditions (Source: Council records) 95% 93% of high priority callouts responded to within specified contract times. Nil No unauthorised discharges were recorded as non-compliances by Horizons Regional Council. During the February 2004 flood event some sewage overflows occurred in Feilding and Bunnythorpe which are permitted under the emergency provisions of the RMA. 100% Non-Compliances recorded by Horizons Regional Council were: Feilding: STP effluent discharge consent conditions: Flow 80% compliance Suspended Solids 92% compliance Ammonia 96% compliance Compliance was adversely affected by high flows due to stormwater infiltration/inflow. Several minor exceedences of the STP sludge discharge consent conditions occurred and a sludge sample was missed. Compliance with Ministry of Health requirements (Source: Council records) Other schemes: No non-compliances recorded. 100% No health issues associated with wastewater sites have been identified. 59

60 Significant Activities Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 819 Operating Costs Storm Operating Costs Interest Paid Asset Management Support Costs Depreciation & Asset Write-offs ,710 Total Operating Expenditure 1,790 1,738 less OPERATING REVENUE 472 User Fees Storm 04 Funding 17 1,131 Separate Targeted Rates 1,375 1,392 1,603 Total Operating Revenue 1,952 1, NET COST OF SERVICE (162) (169) 60

61 Water Overall Goal Water Supply - Acknowledging and taking cultural issues into account, to develop, provide and maintain an affordable, reliable water supply of appropriate quality and sufficient quantity to meet the current and future needs of the district Drainage - To provide and maintain an effective drainage system that minimises risk to life and property and meets the present and future needs of the community Description Water includes the activities of Water Supply, Urban Stormwater and Land Drainage. The Manawatu district depends on district water supplies to sustain its population, industry and agriculture. The district s main water supply source, the Oroua River has become heavily utilised as the district has developed. Groundwater resources have also been placed under stress from agricultural uses in some areas. Community feedback consistently indicates water supply is the number one priority for Manawatu district residents. This is expressed on two levels. Why is Council involved? Collective benefits - Collective benefits to the community received from control of water flow in rural and urban areas Community safety - Protection of people and property from flooding Statutory - Council is required to provide some of these services through the Local Government Act 1974, Health Act 1956 and Resource Management Act 1991 Community expectation - Water supply, urban stormwater and land drainage are seen as core services - Public expectation for provision of services Firstly, there is an expectation for a safe, reliable and plentiful water supply. Secondly, water is viewed as vital to the continuity and future development of Manawatu agriculture and horticultural industry and the potential attraction of new business. Too much water can at times also be a problem. Several stormwater and land drainage schemes are administered throughout the district. Collective provision - Collective provision of services and facilities more viable than individual provision Community support and wellbeing - Basic requirement for life and vital to maintain a healthy community District progress - Important to encourage business development and cater for future expansion 61

62 Significant Activities URBAN STORMWATER AND LAND DRAINAGE Council currently administers stormwater schemes in Bunnythorpe, Feilding, Longburn, Rongotea and Sanson and four rural drainage schemes Bainesse, Maire, Makowhai and Oroua Downs. Feilding has the most extensive piped stormwater network. Smaller schemes consist of a mixture of open drains, channels and piped areas What Council has achieved in 2003/2004 Operational day to day Result 1) Stormwater network maintenance Feilding $40,771 (70% of budget). Bunnythorpe $2,033 (110% of budget) Rongotea $5,519 (223% of budget). Costs were incurred in an attempt to remove a blockage from a pipe in Medway St which turned out to be a collapsed pipe. Longburn $3,098 (119% of budget). Costs resulting from camera investigations and tree root removal from the trunkmain. Sanson $1,829 (42% of budget) 2) Land Drainage network maintenance 3) Urban Development infrastructure planning Capital Renewals, construction and development Bainesse $3,161 (83% of budget). Makowhai $6,335 (125% of budget). Oroua Downs $24,428 (94% of budget) Maire $110 (5% of budget) for annual cleaning and spraying. Investigation of urban growth and impact on urban reticulation almost completed to draft report stage. 4) Feilding - stormwater upgrades, planning, unplanned renewals and new connections ($105,000) 5) Bunnythorpe stormwater upgrades, unplanned renewals and new connections ($23,245) 6) Longburn stormwater upgrades ($1,000) Unplanned maintenance of $11,064 (74% of budget) involving lowering the road on the Cooper Rapley corner, improvements to stormwater in Kimbolton Rd and new connections. (Budget is $15,000) Harding Place upgrade completed at a cost of $46,101 ($32,901 and CMU costs of $13,200). Capex budget is $90,000. The stormwater upgrade planned for Kairanga Bunnythorpe Rd has been deferred until surveys of public/private systems is completed to confirm an appropriate design. Expenditure: $4,177. No expenditure from a budget of $1,000. How Council has measured its performance Measure Target Result User satisfaction with reticulated stormwater systems (Source: Communitrak) 65% User satisfaction results regarding reticulated stormwater systems were: Very/Fairly satisfied: 84% Not very satisfied: 15% Don t Know: 1% Respond to emergency situations in stormwater systems within one hour of notification (Source: Council records) 100% compliance Works Infrastructure staff were involved in the emergency evacuation during the February Storm Event. Council staff ensured that Works Infrastructure was notified of all situations within 1 hour of receiving them from the residents of the District. No other emergency situations have been experienced to date. 62

63 Measure Target Result Comply with resource consent 100% No notices of non compliance issued. compliance conditions under the with control/jurisdiction of Council horizons.mw (Source: Council requirements records/horizons.mw reports) Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 71 Urban Schemes Land Drainage Schemes Interest Asset Management Support Costs Depreciation & Asset Write-offs Total Operating Expenditure less OPERATING REVENUES 9 User Fees Separate Targeted Rates Total Operating Revenue NET COST OF SERVICE

64 Significant Activities WATER SUPPLY Council provides and maintains water supply schemes on behalf of communities who require these services and are prepared to pay the associated costs. Currently, five urban water schemes are administered. The largest is Feilding, with water sourced from the Oroua River at Barrows Road and augmented from bores located on Newbury Line and Campbell Rd. Other urban schemes include Bunnythorpe, Himatangi Beach, Longburn and Sanson. There are four rural water schemes in the district. (Kiwitea, Stanway/ Halcombe, Waituna West and Oroua No. 1). The Kiwitea and Oroua No.1 schemes are community operated and administered. All other schemes involve abstraction, treatment, storage and reticulation of drinking quality water. What Council has achieved in 2003/2004 Operational day to day 1) Operation and maintenance of water supply schemes in Bunnythorpe, Feilding, Himatangi Beach, Longburn, Sanson, Stanway/Halcombe and Waituna West 2) Continue development of Water Supply Asset Management Plans 3) Feilding Reticulation Swabbing of water mains 4) Comply with the revised monitoring requirements of the NZ Drinking Water Standards 2000 for all water supply schemes with full compliance by Result Bunnythorpe - $22,833 (73% of budget) Feilding - $526,817 (90% of budget) Himatangi Beach - $42,297 (95% of budget) Longburn - $11,947 (61% of budget) Sanson - $17,685 (69% of budget) Stanway Halcombe - $68,358 (103% of budget) Waituna West $38,352 (93% of budget) AMP s approx 80% complete $3,492 (23% of budget) No expenditure. This activity will not proceed until completion of the Almadale water treatment plant upgrade. Routine mains flushing and scouring to waste after repair is proving effective and may negate any need for swabbing. $19,901 for e-coli monitoring. (107% of $18,500 budget) Additional costs relate to testing bore supplies to determine security of supply. 64

65 Capital Renewals, construction and development Result 5) Asset Renewals and upgrades undertaken to maintain existing levels of service and provide for new developments, including: - Bunnythorpe - Asset Renewals and upgrades - Feilding - Asset Renewals and upgrades, development of network model - Himatangi Beach - Asset Renewals and upgrades - Longburn - Asset Renewals and upgrades - Sanson - Asset Renewals and upgrades - Stanway/Halcombe - Asset Renewals and upgrades, further modelling enhancements - Waituna West Asset Renewals and upgrades, further modelling enhancements 6) Feilding Water Treatment Plant and Intake Upgrade ($2,175,200) Bunnythorpe - $2,620 (15% of budget) Feilding - $239,256 (59% of budget) Himatangi Beach - $2,384 (25% of budget) Longburn $1,166 (58% of budget). $15,000 earmarked for possible chlorine plant not to be expended. Sanson - No expenditure to date. Stanway Halcombe - $583 (4% of budget). Waituna West - $3,443 (14% of budget) The physical works were not undertaken during the Year. Consultancy Costs of $154,049 were incurred for the Design and Development of the Contract Documentation, which included tender evaluations. Special Projects/Funding 7) Development of the District Water Strategy including further examination of an alternative water source for Feilding and the surrounding rural areas, sourced from the Rangitikei River Result Not commenced. We are planning to commence in the 2004/05 year. How Council has measured its performance Measure Target Result User satisfaction with water supplies (Source: Communitrak) 65% User satisfaction results regarding water supplies were: Very/Fairly satisfied: 90% Not very satisfied: 9% Don t Know: 1% Response to emergency situations in water supply systems within one hour of notification to Council (Source: Council records) 95% Response to urgent requests has been adequate. 96% compliance from CMU report. No complaints received. 65

66 Measure Target Result Water samples taken from distribution zones comply with E.coli criteria of the Drinkingwater standards for New Zealand 2000 (Source: Council records/testing by Registered Laboratory) 100% E-coli samples from all distribution zones have complied. Waituna West sampling discontinued after February flood event, on temporary supply with Boil Water Notice. Cost of Service Statement for the year ended 30 June 2004 Actual Actual Budget ($ 000) ($ 000) ($ 000) OPERATING EXPENDITURE 833 Operating Costs Storm 04 Operating Costs Interest Paid Asset Management Support Costs Depreciation Asset Write-offs ,991 Total Operating Expenditure 2,171 1,946 less OPERATING REVENUES 246 User Fees Storm 04 Funding 326 1,678 Separate Targeted Rates 1,642 1,659 1,924 Total Operating Revenue 2,238 1, NET COST OF SERVICE (67) 72 66

67 Capiitall Projjects Summary Liist Included below is a summary of expenditure on capital projects (renewals and new additions) for all of Council s Activities for 2003/04. Actual Budget 2003/ /04 $ 000 $ 000 Significant Activities: Community Facilities District Development Emergency Management Environmental & Regulatory Management - - Leisure Resources 895 2,554 Leisure Resources Storm Roading Network 3,099 5,140 Waste Waste Storm Drainage 68 Water Supply 425 2,794 Water Supply Storm Other Activities Information Services Property 80 Vehicle Total 6,577 12,053 67

68 This section: details the annual consolidated financial statements of Council provides notes regarding specific accounting disclosures summarises progress against the Manawatu District Council Long Term Financial Strategy, Funding Policy and Borrowing Management and Investment Policy. The section includes the following financial statements: 1) Consolidated Statement of Financial Position This is also known as Council s Balance Sheet. It summarises what Council owns (assets) and what Council owes (liabilities). The remainder (or equity) represents the net community ownership. 2) Consolidated Statement of Financial Performance Shows the operating transactions of Council for the financial year. 3) Consolidated Statement of Movement in Equity Shows the change in Council equity due to the net operating surplus or deficit and any changes to the asset revaluation reserves. 4) Consolidated Statement of Cashflows Shows the movement of cash in and out of Council s accounts during the year. 5) Consolidated Statement of Commitments Shows future expenditure Council has committed to as at balance date and the time-span these commitments cover. 6) Consolidated Statement of Contingent Liabilities Shows any event, which may incur future liability if a number of conditions occur. They are not included within the operating statement as they are unable to be quantified. Council discloses a best estimate of the likely magnitude of the event as well as a brief explanation. 7) Statements of Financial Involvement in CCOS Shows the level of investment in any Council Controlled Organisation (CCO) in which Council may have an interest. 69

69 Financial Statements and Policy Reports Consolliidated Statement of Fiinanciiall Posiitiion as at 30 June 2004 Consolidated Council Consolidated Council Council Actual Actual Actual Actual Budget Notes Current Assets Cash at Bank ,002 6,002 1,8 Deposits - General & Special Funds 7,861 7,861 5,300 2,327 2,324 2,26 Receivables, Prepayments And Accruals 7,508 7,505 2,450 6 Properties Intended For Sale 1,708 1, GST Receivable ,775 8,760 Total Current Assets 17,196 17,192 7,944 Non-Current Assets 3,850 3,850 1,8 Local Government Stock and Bonds 3,044 3,044 2, Term Advances ,940 5 Shares & Debentures 296 2,061 2,141 1,088 1,088 1,13 Loan Repayment Fund Investments Future Tax Benefit Joint Forestry Venture Other Investments Properties Intended for Sale , ,253 7 Fixed Assets 384, , , , ,745 Total Non-Current Assets 390, , , , ,505 Total Assets 408, , ,934 Current Liabilities 3,332 3,326 9,26 Payables and Accruals 7,108 7,105 2, , Bonds & Deposits 662 2,426 2,000 2,778 2,778 8,10 Current Portion of Term Debt 1,386 1,386 1,374 6,607 8,277 Total Current Liabilities 9,156 10,917 6,074 Non-Current Liabilities 8,179 8,179 8,10 Term Debt 8,613 8,613 13, Deferred Taxation Provisions ,920 8,920 Total Non-Current Liabilities 9,394 9,394 14,092 Equity Trust Funds ,977 3, Special Funds 3,710 3,710 2,526 1,088 1, Loan Repayment Funds , , Ratepayers Equity 229, , , , , Asset Revaluation Reserve 155, , , , ,308 Total Equity 389, , , , ,505 Total Liabilities & Equity 408, , ,934 Note: The accompanying accounting policies and notes form part of these financial statements. 70

70 Financial Statements and Policy Reports Consolliidated Statement of Fiinanciiall Performance for the year ended 30 June 2004 Consolidated Council Consolidated Council Council Actual Actual Actual Actual Budget Notes 23,954 23, Operating Revenue 35,054 35,044 23,460 23,362 23, Operating Expenditure 32,849 32,839 22, Net Operating Surplus/(Deficit) from 2,205 2, Continuing Activities Write off Buildings - Feilding RaceCourse (827) (827) 2 16 (Tax Expense)/Tax Benefit Net Surplus/(Deficit) After Taxation 1,378 1, Note: The accompanying accounting policies and notes form part of these financial statements. 71

71 Financial Statements and Policy Reports Consolliidated Statement of Movements iin Equiity for the year ended 30 June 2004 Consolidated Council Consolidated Council Council Actual Actual Actual Actual Budget Notes 389, ,714 Equity at the start of the year 390, , , Net Surplus/(Deficit) for the year After Taxation 1,378 1, Inc/(Dec) in Asset Revaluation Reserves (2,082) (2,082) Total Recognised Revenues and Expenses for the year (704) (704) , ,308 Equity at the end of the year 389, , ,768 Note: The accompanying accounting policies and notes form part of these financial statements. 72

72 Financial Statements and Policy Reports Consolliidated Statement of Cashfllows for the year ended 30 June 2004 Consolidated Council Consolidated Council Council Actual Actual Actual Actual Budget CASHFLOWS FROM OPERATING ACTIVITIES Cash was provided from: 14,420 14,420 Rates - MDC 15,581 15,581 15,630 1,782 1,782 Rates - Other Local Authorities ,936 4,936 Subsidies and Grants 7,747 7,747 3, Interest Tax Refund Dividends Deposits from Heartland Contractors Ltd 3,917 3,906 Other Receipts 7,890 7,890 3,544 25,855 26,413 31,922 31,919 23,460 Cash was applied to: 11,768 11,737 Payments to Suppliers 19,978 19,964 11,303 3,449 3,449 Payments to Employees 4,042 4,042 3,638 Income Tax Payments of GST (Net) (105) (105) Interest on Loans ,780 1,780 Rates paid to Other Local Authorities ,767 17,736 24,721 24,707 15,814 8,088 8,677 Net cash inflow/(outflow) from 7,201 7,212 7,646 Operating Activities CASHFLOWS FROM INVESTING ACTIVITIES Cash was provided from: Sale of Assets Net Decrease in Investments 1,039 1, ,184 1, Cash was applied to: 7,893 7,893 Purchase of Fixed Assets 5,649 5,649 12,053 Net Increase in Investments 7,893 7,893 5,649 5,649 12,053 (7,449) (7,449) Net cash inflow/(outflow) from (4,465) (4,465) (11,185) Investing Activities Note: The accompanying accounting policies and notes form part of these financial statements. 73

73 Financial Statements and Policy Reports Consolidated Statement of Cashflows cont. Consolidated Council Consolidated Council Council Actual Actual Actual Actual Budget CASHFLOWS FROM FINANCING ACTIVITIES Cash was provided from: 2,551 2,551 Loans Raised 1,807 1,807 6,499 2,551 2,551 1,807 1,807 6,499 Cash was applied to: 2,403 2,403 Repayment of Loans 2,783 2,783 2,764 2,403 2,403 2,783 2,783 2, Net cash inflow/(outflow) from (976) (976) 3,735 Financing Activities 787 1,376 Net Increase/(Decrease) in Cash Held 1,760 1, ,347 4,746 Cash and Deposits at beginning of year 6,134 6,122 5,104 6,134 6,122 Closing Cash Resources 7,894 7,893 5,300 Reconciliation of Net Surplus/(Deficit) After Taxation to Net Cashflow from Operating Activities Net Surplus/(Deficit) After Taxation 1,378 1, Add/(Deduct) Non-Cash Operational Items 6,061 6,061 Depreciation Costs 6,077 6,077 5, Increase/(Decrease) in Provisions Amortisation of Bond Premium Debts Written Off Add/(Deduct) Items included under Investing Activities 7 7 Loss/(Gain) on Disposal of Fixed Assets (71) (71) 1, Loss/(Gain) in Valuation of Powerco Shares (40) (40) (32) (32) Loss/(Gain) in Valuation of Forestry JV (30) Loss/(Gain) in Valuation of Other Investments (80) Loss/(Gain) on Write-off of Fixed Assets 1,579 1,579 (25) (25) Assets Vested in Council (247) (247) Add/(Deduct) Movements in Working Capital Items (Increase)/Decrease in Receivables & Accruals 3,502 3, ,062 Increase/(Decrease) in Payables & Accruals (5,074) (4,985) (2) Increase/(Decrease) in Deferred Tax 8,088 8,677 Net cash inflow/(outflow) from Operating Activities 7,201 7,212 7,646 Note: The accompanying accounting policies and notes form part of these financial statements. 74

74 Financial Statements and Policy Reports Consolliidated Statement of Commiitments as at 30 June 2004 Consolidated Council Consolidated Council Actual Actual Actual Actual Notes Capital Commitments approved and contracted 2,326 2,326 Non-cancellable operating lease commitments Property and Equipment Not later than one year Later than one year and not later than two years Later than two years and not later than five years 6 6 Later than five years Other contracts The Council has contracts for the maintenance of and provision of services for roads, utilities, solid waste, parks and cemeteries. Details of the commitments under these contracts are as follows: 4,600 4,600 Not later than one year 4,941 4, Later than one year and not later than two years 2,309 2, Later than two years and not later than five years 2,049 2,049 Later than five years ,877 5,877 9,799 9,799 6,881 6,881 Total Commitments 12,223 12,223 Note: The accompanying accounting policies and notes form part of these financial statements. 75

75 Financial Statements and Policy Reports Consolliidated Statement of Contiingent Liiabiilliitiies as at 30 June 2004 Manawatu District Council The Council had no contingent liabilities as at 30 June 2004 (2003: none). Heartland Contractors Limited Heartland Contractors Limited had no contingent liabilities as at 30 June 2004 (2003: $6,675). Statement of Fiinanciiall Invollvement iin CCOS The Manawatu District Council has control over the following entity: Heartland Contractors Limited The Council has a 100% shareholding in Heartland Contractors Limited, a Council Controlled Organisation as defined in the Local Government Act Balance date is 30 June 2004 in line with Council s end of year balance date. The accounts of Heartland Contractors Limited have been consolidated into Council s financial statements using the purchase method for preparing group accounts. This means that the account balances in the financial statements of Heartland Contractors Limited have been added line by line to those of Council, and furthermore that transactions between the two entities have been reversed out. The net effect is that the consolidated figures in the attached financial statements in effect report the results of transactions between Council and its fully owned CCO with external parties. The value of Council s investment in Heartland Contractors Limited as at 30 th June 2004 was $ 1,764,612 (2003: $1,684,617). Note: The accompanying accounting policies and notes form part of these financial statements. 76

76 Financial Statements and Policy Reports Notes to the Fiinanciiall Statements for the year ended 30 June 2004 Note 1: Deposits - General & Special Funds The following deposits representative of General, Special and Trust funds are used to manage short term cash requirements. Consolidated 2003 Council 2003 Consolidated 2004 Council ,321 1,321 Bank Deposits on Call 1,217 1,217 4,681 4,681 Bank Term Deposits invested for less than one year 6,644 6,644 6,002 6,002 7,861 7,861 Representative of: 5,984 5,984 General Funds 7,786 7, Trust Funds Special Funds 6,002 6,002 7,861 7,861 The weighted average effective interest rates on investments (current and non-current) and the associated repricing maturities were: Short-term Deposits Weighted Average Effective Interest Rate 5.31% 5.31% Short-term Deposits 5.00% 5.00% 6.77% 6.77% Loan Repayment Funds 6.40% 6.40% 7.15% 7.15% Long-term Investments 7.10% 7.10% Repricing Maturities Council 2003 Council 2004 Loan Long-term Loan Short-term Repayment Investments Repayment Deposits Funds Funds Long-term Investments 6, Within one year 7, , ,244 One to two years Two to three years 1,209 1,209 Three to four years Four to five years Five years and over 0 6,002 1,088 3,850 7, ,044 Note 2: Receivables Prepayments and Accruals Consolidated 2003 Council 2003 Consolidated 2004 Council Accrued Revenue Trade Debtors Rate Monies Outstanding ,054 1,054 Transfund NZ Subsidy 5,204 5,204 2,383 2,380 7,508 7,505 (56) (56) Less: Provision For Doubtful Debts 2,327 2,324 7,508 7,505 77

77 Financial Statements and Policy Reports Note 3: Term Advances Consolidated 2003 Council 2003 Consolidated 2004 Council Rural Housing Mortgages Trust Investments Community Loans Note 4: Goodwill There is no goodwill recorded in Council s consolidated accounts. Note 5: Shares and Debentures Consolidated 2003 Council 2003 Consolidated 2004 Council 2004 Council has the following fully paid ordinary share holdings: NZ Local Government Insurance Corp Ltd (62,219 $1) Power Company Shares (112,400 Shares valued at market price) 1,685 Heartland Contractors Ltd. 1,765 (Valued at the lower of purchase price or equity) 255 1, ,061 Note 6: Properties Intended for Sale In addition to the fixed assets in Note 7, Council has identified some assets which are deemed to be surplus to requirements and consequently it is the intention of Council to sell these properties at the best realisable price. These properties have been valued on the basis of anticipated market returns net of disposal costs or known realisable values. Consolidated 2003 Council 2003 Consolidated 2004 Council 2004 At Valuation Land Buildings 1,664 1, Total Properties Intended for Sale 2,478 2,478 Current Portion 1,708 1, Term Portion On the 30 th September 2004 Council sold all the land and buildings associated with the Feilding Racecourse to the Manfeild Park Trust for the sum of $1,650,000. In return for this sale Council will hold in 2004/05 a Community Investment in this Trust to the same value. 78

78 Financial Statements and Policy Reports Note 7: Fixed Assets Cost/ Valuation 30 June 2003 Acc Depn 30 June 2003 Book Value 30 June 2003 Cost/ Valuation 30 June 2004 Acc Depn 30 June 2004 Book Value 30 June 2004 (a) COUNCIL Infrastructure Fixed Assets At valuation: 1,264 1,264 Land 1,264 1, ,454 6, ,256 Roading 298,299 9, ,114 43,854 2,283 41,571 Utility Services 43,488 3,301 40,187 At cost: Land ,271 8,271 Roading 13, , Roading Structures ,302 4,302 Utility Services 5, ,410 1,318 1,318 Under Construction ,573 8, ,082 Total Infrastructure Fixed Assets 362,208 12, ,509 Restricted Fixed Assets At valuation: 8,247 8,247 Land 8,166 8,166 21, ,290 Buildings 21,279 2,001 19,278 1, Library Books 1, At cost: Land Buildings Library Books , Plant and Equipment 1, ,214 1,830 30,384 Total Restricted Fixed Assets 32,512 2,989 29,523 Operational Fixed Assets At valuation: 2,424 2,424 Land 1,280 1,280 6, ,258 Buildings 3, ,492 Plant, Equipment & Motor Vehicles Office Equipment & Furniture At cost: Land Buildings , Plant, Equipment & Motor Vehicles 1, Office Equipment & Furniture 1, ,003 1,216 9,787 Total Operational Fixed Assets 7,298 1,350 5, ,790 11, ,253 Total Council Fixed Assets 402,018 17, ,980 79

79 Financial Statements and Policy Reports Cost/ Valuation 30 June 2003 Acc Depn 30 June 2003 Book Value 30 June 2003 Cost/ Valuation 30 June 2004 Acc Depn 30 June 2004 Book Value 30 June 2004 (b) CONSOLIDATED Infrastructure Fixed Assets At valuation: 344,572 8, ,091 Council 343,051 12, ,565 At cost: 14, ,991 Council 19, , ,573 8, ,082 Total Infrastructure Fixed Assets 362,208 12, ,509 Restricted Fixed Assets At valuation: 30,590 1,334 29,256 Council 30,501 2,453 28,048 At cost: 1, ,128 Council 2, ,475 32,214 1,830 30,384 Total Restricted Fixed Assets 32,512 2,989 29,523 Operational Fixed Assets At Valuation 2,424 2,424 Land 1,280 1,280 6, ,258 Buildings 3, ,492 At Cost: Buildings , Plant, Equipment & Motor Vehicles 1, Office Equipment & Furniture 1, ,003 1,216 9,787 Total Operational Fixed Assets 7,298 1,350 5, ,790 11, ,253 Total Consolidated Fixed Assets 402,018 17, ,980 Consolidated fixed assets include the fixed assets of Heartland Contractors Ltd a fully owned Council CCO. 80

80 Financial Statements and Policy Reports Note 8: Financial Instruments (i) Credit Risk Financial instruments, which potentially subject the Council to credit risk principally, consist of bank balances and accounts receivable. Generally the Council does not require collateral. Maximum exposures to credit risk is the amount stated in the financial statements and are net of any recognised provision for losses on these financial instruments. No collateral is held on these amounts. (ii) Concentrations of Credit Risk The Council is not exposed to any concentrations of credit risk. (iii) Credit Facilities The Council has an arranged bank overdraft facility which is used on rare occasions to manage cash resources and to ensure maximum utilisation of cash balances. (iv) Term Debt The Council utilises term debt to fund projects with a long-term community benefit. In accordance with the borrowing requirements of the Local Government Act 1974 as amended in 1996, all loans are registered with the Companies Office. Council has adopted a Borrowing Management Policy (BMP). An outline of the BMP is included in the Annual Plan and a report concerning Council s compliance with the BMP is included in this Annual Report. (v) Investments Council is a prudent and conservative investor. Council has adopted an Investment Management Policy (IMP). An outline of the IMP is included in the Annual Plan and a report concerning Council s compliance with the IMP is included in this Annual Report. (vi) Fair Values The methods and assumptions used is that the carrying amount in the financial statement reflects the estimated fair value of the financial instruments including receivables, bank and investments and accounts payable. Note 9: Payables Consolidated 2003 Council 2003 Consolidated 2004 Council ,248 2,242 Trade Creditors 4,957 4, Accrued Expenses Employees Entitlements Income Received In Advance 1,305 1,305 3,332 3,326 7,108 7,105 Included in the Income Received in Advance is an amount of $920, received from the Department of Internal Affairs in June 2004 for Storm Related Financial Assistance. This has been allocated to the individual rates accounts in the 2004/05 financial year. 81

81 Financial Statements and Policy Reports Note 10: Term Debt Consolidated 2003 Council 2003 Consolidated 2004 Council ,791 10,791 Balance of Term Debt 1 July ,957 10,957 2,569 2,569 Loans Raised during year 1,825 1,825 13,360 13,360 12,782 12,782 (2,403) (2,403) Loans Repaid during year (2,783) (2,783) 10,957 10,957 Balance of Term Debt 30 June ,999 9,999 2,778 2,778 Current Portion of Term Debt 1,386 1,386 8,179 8,179 Non-Current Portion of Term Debt 8,613 8,613 10,957 10,957 Total Term Debt 9,999 9,999 Repayment Terms The following is a maturity analysis of total public debt 2,778 2,778 Payable no later than one year 1,386 1,386 1,381 1,381 Later than one year, not later than two years ,401 5,401 Later than two years, not later than five years 6,136 6,136 1,397 1,397 Later than five years 1,549 1,549 10,957 10,957 Total 9,999 9,999 Interest Rates The weighted average effective interest rates on borrowings (current and non-current) were: 7.2% 7.2% Secured Debt 7.6% 7.6% Term Debt analysed by Activity Housing for the Elderly & Disabled Rural Housing Leisure Activities 0 0 2,121 2,121 Roading 2,058 2,058 6,067 6,067 Utility Services 5,572 5, Property 8 8 1,626 1,626 Investments 1,584 1,584 10,957 10,957 Total Term Debt 9,999 9,999 Type of Debt and Security Debentures over Housing for Elderly and Disabled Properties Secured by Rates Rural Housing Mortgages Secured by Rates 7 7 1,370 1,370 Local Authority Stock Secured by Rates 1,370 1, Mortgage over Racecourse Assets 0 0 5,084 5,084 Registered Bonds Secured by Rates 4,436 4,436 3,416 3,416 Bank Loans Secured by Rates 3,416 3,416 10,957 10,957 9,999 9,999 1,088 1,088 Loan Repayment Fund Investments Refer Note In terms of S223E, (3) (j), of the Local Government Act 1974, there have been no variations from, or changes to, the borrowing management policy in effect during the year. 82

82 Financial Statements and Policy Reports Note 11: Trust Funds Trust Funds are those funds, which have been received, over time, by the Council usually by way of donation or bequest, the terms of which restricts the use of the funds. Each amount has been set up as a trust fund to maintain a degree of independence from Council funds. All such funds are separately invested and are not available for any other purposes. Fund Balance 1/07/03 $ Transfers To Trust Funds $ Transfers From Trust Funds $ Fund Balance 30/06/04 $ Hook Bequest 15, ,515 15,307 Trewin Bequest Wakerill Trust Robert Dickson Library Trust 2, ,139 P.A.Broad Memorial Trust 3, ,689 Historical Trust 1, ,978 Children s Welfare Trust Robert Dickson Educational Trust 46,703 2,825 1,965 47,563 Museum Trust ,040 Feilding and District Relief Trust 2,051 1,113, , ,353 74,126 1,118, , ,308 Transfers To/From Significant Activities 3,480 Transfers To/From Other Activities 1,118, ,465 1,118, ,945 Note 12: Special Funds Special Funds are those funds, or reserves, which Council has established by resolution, the terms of which restricts the use of the funds. Each fund has been set up as a separate account to maintain a degree of independence from Council's general funds. Fund Balance 1/07/03 $ Transfers To Special Funds $ Transfers From Special Funds $ Fund Balance 30/06/04 $ Land Subdivision 122, ,161 92, ,778 General Purpose 1,903, , ,705 1,440,121 Longburn Sewerage 38,756 2,438 41,194 Waituna West Water Supply 109,887 6, ,801 Kimbolton Sewerage 50,353 3,169 53,522 Vehicle Replacement 219, , , ,534 Emergency 736,716 96, ,073 Council Community Loans 193,975 16,853 24, ,548 Internal Loans 30,828 85, ,587 (28,509) Landfill Closure and Aftercare 544,365 70, ,808 Heritage Incentive 25,966 1,634 27,600 3,977, ,642 1,223,442 3,710,470 Transfers To/From Significant Activities 501,976 1,004,972 Transfers To/From Other Activities 454, , ,642 1,223,442 83

83 Financial Statements and Policy Reports Note 13: Loan Repayment Funds Loan Repayment Funds (Sinking Funds) are those funds which are set aside for future repayments of Council Debt. Funds are invested over the term of the debt to ensure that at maturity sufficient funds are held to repay the principal outstanding. Activity Loans Outstanding 30/6/04 Loan Repayment Fund Balance 1/07/03 Transfers To Loan Repayment Fund Transfers From Loan Repayment Fund Loan Fund Balance 30/06/04 Roading Network 2, Waste 2, Water Supply 2, Drainage Property CCO Investment Loans 1, ,219 1, Transfers To/From Significant Activities Transfers To/From Other Activities Note 14: Reconciliation of Ratepayer s Equity - Council Council Actual 2003 Council Actual 2004 Council Budget ,066 Opening Balance of Ratepayers Equity 227, ,967 Adjustment to Opening Ratepayers Equity 594 Plus Net Surplus/(Deficit) after Tax 1, , , ,965 Plus Transfers In 2,254 Transfers from Special Funds per Significant Activities 1,005 1, Other Transfers from Special Funds Transfers from Loan Repayment Funds per Significant Activities Other Transfers from Loan Repayment Funds Transfers from Revaluation Reserves 56 1 Transfers from Trust Funds per Significant Activities 787 2,722 Total Transfers In 2,739 2,071 Less Transfers Out 389 Transfers to Special Funds per Significant Activities Other Transfers to Special Funds Transfers to Loan Repayment Funds per Significant Activities Other Transfers to Loan Repayment Funds Transfers to Trust Accounts per Significant Activities 5 Other Transfers to Trust Accounts 1, Transfer to Asset Revaluation Reserve 1,578 Total Transfers Out 2,564 1, ,804 Closing Balance of Ratepayer s Equity 229, ,933 84

84 Financial Statements and Policy Reports Note 15: Fixed Asset Revaluation Reserves Council Actual 2003 Increase/ (Decrease) during the year Council Actual 2004 Fixed Asset Revaluation Reserve 1,231 Operational Land (658) Operational Buildings (630) 0 51 Library Books ,157 Restricted Land (32) 4,125 8,032 Restricted Buildings 0 8, Infrastructural Land ,562 Infrastructural Roading (819) 141, ,365 (2,139) 155,226 The movement in the revaluation reserve arises from the disposal or write-off of a number of assets and the transfer to ratepayer s equity of the revaluation reserve associated with these items. Note 16: Income Tax Consolidated Actual 2003 Council Actual 2003 Consolidated Actual 2004 Council Actual Net Surplus/(Deficit) Before Taxation 1,378 1, Prima Facie Tax 33% Plus effect of Permanent Differences (180) (188) Non-Assessable Income/(Loss) (429) (455) (8) (8) Imputation Adjustment (9) Tax Losses Utilised (26) (2) 0 Tax Charge/(Credit) for the Year 0 0 Represented by: Taxation Payable/(Receivable) (2) Increase/(Decrease) in Deferred Taxation (2) (Deferred Tax)/Future Tax Benefit Account (2) Opening Balance 2 Current Year s Change 0 0 Closing Balance 0 0 Comment: The Council s subsidiary has imputation credits of $346,307 (2003: $346,307) which can be used to impute dividend payments to Council. Heartland Contractors Limited has unrecognised tax losses of $669,293 (2003: $839,679) with a tax effect of $220,867 (2003: $277,094) which are available for carry forward in offsetting assessable income in future income years. 85

85 Financial Statements and Policy Reports Note 17: Operating Revenues and Expenditure in Detail Council Actual 2003 Council Actual 2004 Council Budget 2004 Operating Revenue 1,580 General Rates and Separate Rates 1,612 1,814 12,794 Uniform Annual Charges and Separate Service Charges 14,011 13,816 4,752 Subsidies 11,239 3,892 3,147 User Fees and Charges 3,475 3, Interest Received Vested Assets Received Other Revenue Note 21 3, ,884 Total Operating Revenue 35,044 23,460 Operating Expenditure On Significant Activities 1,018 District Development 1,114 1,226 1,234 Community Services 1,926 1, Emergency Management ,283 Environmental & Regulatory Management 1,323 1,348 4,046 Leisure Resources 4,029 3, Democracy 1,061 1,087 8,579 Roading Network 15,382 7,921 2,720 Waste 2,957 2,911 2,300 Water 2,480 2, Other Expenditure Note 20 1, ,290 Total Operating Expenditure 32,839 22, Net Operating Surplus/(Deficit) Before Taxation 2, Note 18: Cost of Severance Agreements The Council has no cost of severance agreements as under Section 223E of the Local Government Act Note 19: Statutory Disclosures Council Actual 2003 Council Actual 2004 Section 223J of the Local Government Act (a) Insurance 189 (b) Ex Gratia Payments (c) Ceremonies for the Public (d) Civic Insignia (e) Entertainment 64 (f) Subscriptions 73 Section 223K of the Local Government Act 1974 Unauthorised Expenditure 86

86 Financial Statements and Policy Reports Note 20: Expenditure on Other Items Council Actual 2003 Council Actual 2004 Council Budget Support Costs (Not Allocated to Significant Activities) Write-down Of Forestry Investment Write-down of Shareholdings 0 1 Interest Paid Rural Housing Loans Interest and CCO Costs (74) Cost of Asset Disposals Property Activities (21) Other costs including Storm 04 1, , Comment: As part of Council s Overhead allocation policy some revenue including petrol tax allocations and interest on general funds is netted off against support costs prior to the allocation of these costs to the various cost centres. Note 21: Other Revenue Council Actual 2003 Council Actual 2004 Council Budget Asset Sales Revaluation of Forestry Investment 0 30 Revaluation of Shareholdings Support Areas Revenue Rates Penalties Petrol Tax Dividends Other Revenue Storm 04 3, , Note 22: Extraordinary Items There were no extraordinary items for the year ended 30 th June

87 Financial Statements and Policy Reports Note 23: Specific Operating Disclosure Consolidated Actual 2003 Council Actual 2003 Consolidated Actual 2004 Council Actual (Gain)/Loss On Asset Disposals (71) (71) Write Down of Assets 1,579 1, Interest Received Audit Fees Council Other payments made to Council Auditor s for services provided 1 Audit Fees Heartland Contractors Limited Councillor s Remuneration Director s Fees Depreciation 3,250 3,250 Infrastructural Assets - roading network 3,150 3, roading other 3 3 1,173 1,173 - utilities 1,159 1, Restricted Assets - buildings 1,011 1, library books plant and equipment Operational Assets - buildings plant, equipment, vehicles furniture and office equipment ,061 6,061 Total Depreciation for the year 6,077 6,077 (16) (16) Increase/(Decrease) in Provision for Doubtful Debts (56) (56) Rental and Lease costs Debts written off Interest Paid We have remitted rates to the value of $287,007 for the year ended 30 June 2004 Note 24: Statement of CCO Performance Manawatu District Council has 100% ownership of Heartland Contractors Limited, a Council Controlled Organisation (CCO). The company recorded a surplus of $79,996 for the period ended 30 th June 2004 and a return of 4.3 % on contributed capital of $1,850,000. (2003: 1.6%) Note 25: Post Balance Date Events No post balance date events have occurred requiring disclosure under this heading. 88

88 Financial Statements and Policy Reports Note 26: Related Party Transactions 2003 Council engaged its fully owned subsidiary, Heartland Contractors Limited, to provide various maintenance services as provided for under section 247D of the Local Government Act Charges made to Council by Heartland Contractors Limited during the year (GST Excl) Amounts owed to Heartland Contractors Limited by Council at year end (GST Incl) Charges made to Heartland Contractors Limited by Council during the year (GST Excl) Amounts owed to Council by Heartland Contractors Limited at year end (GST Incl) Other Items 1,676 Amounts held on deposit by Heartland Contractors Limited with Council 1,765 Key Management and Members of Council During the year Councillors and key management, as part of a normal customer relationship, were involved in minor transactions with the Council (such as payment of rates, purchase of rubbish bags). During the Year the Council contracted with Z-One Motoring Limited in relation to the purchase of Council Fleet Vehicles for which the Mayor holds a significant shareholding in. Approval was given by the Office of the Auditor General under section 3(3)(a) of the Local Authorities (Members Interests) Act 1968 for purchases to the value of $127,207. Note 27: Provisions Manawatu District Council has recognised a provision in its financial statements for the year ending 30 th June 2004 for the anticipated closure costs of the Feilding landfill and the aftercare costs of this landfill and two smaller landfills which are no longer operational. i) Feilding Landfill The current resource consent to operate the Feilding landfill expires in February The Council has a responsibility under the resource consent to rehabilitate and restore the landfill site upon closure and to provide on-going maintenance and monitoring of the site for at least thirty years after closure. Closure responsibilities include providing for: additional soil cover contouring and shaping of the site grassing drainage structures including berms, chutes and drains fencing Post-closure responsibilities include providing for: monitoring and treatment of leachate ground water and surface water monitoring on-going site management including maintenance of the grass cover, drainage systems and fencing The landfill post closure costs are expected to start in 2007 and continue for a period of thirty years. Council has in accordance with the requirements of FRS-15 made allowance for both closure and aftercare costs by recognising in its financial statements for the year ended 30 th June 2004 a liability of $697,849. (2003: $658,348). The long term nature of the liability or provision means that there are inherent uncertainties in estimating the expense in providing for the aforementioned remedial work. 89

89 Financial Statements and Policy Reports The amount of the liability has been estimated by projecting forward engineering cost estimates for both closure and aftercare activities obtained in 2001 and then discounting these to the current financial year ie 2004 using a discount rate of 6.0%. Each year part of the discounted amount will be unwound and recognised as an interest expense in the statement of operating performance while at the same time adding to the amount included in the provision. The following major assumptions have been made in the calculation of the provision: annual price index of 2.5% a discount rate of 6% aftercare period to last thirty years ii) Other Landfills Provision has also been made for the on going aftercare of two smaller landfills that are no longer in use. A combined amount of $5,000 (today s dollars) has been allowed for annual ongoing monitoring and maintenance expenditure on these two sites. The discounted amount of the resulting provision as at 30 th June 2004 was $83,161. (2003: $83,042). Landfill Closure and Aftercare Provision Council Actual 2003 Council Actual Opening balance 741 Add Additional provisions Adjustment for adoption of FRS Discounting changes 44 Less Unused provision reversed 5 Amounts used Closing Balance 781 Note 28: Major Budget Variations Explanations for major budget variations from the Council estimate figure in the 2003/2004 annual plan are as follows: Statement of financial performance The major variances were due to higher than budgeted depreciation on buildings, write-offs of the residual value of roading and other assets disposed of during the financial year or written off as a result of the storm (unbudgeted) and higher than budgeted maintenance on roads as a result of storm damage. Statement of financial position Fixed assets are higher than budgeted as a result of the valuation undertaken during 2001/02 which resulted in significant increases in the value of Council s fixed assets. This is also reflected in the level of the Asset Revaluation Reserve. 90

90 Financial Statements and Policy Reports Remuneratiion of Chiief Executiive The Chief Executive of the Manawatu District Council, appointed under section 42(a) of the Local Government Act 2002, receives a salary of $150,000 per annum. In terms of his employment agreement, the Chief Executive also receives the following additional benefit: Additional benefit; Cost during financial year; Employer's contribution to approved superannuation scheme. $5,000 For the year ended 30 June 2004, the total cost to the Manawatu District Council of the remuneration package being received by the Chief Executive is calculated at $155,000. (2003 $ 147,493) Note: This information has been provided to meet the requirements of section 223E(11) of the Local Government Act 1974, and is in a form determined by the Minister of Local Government under the Local Government (Information on Remuneration of Chief/Senior Executive Officers) Determination Calculations have been made in accordance with guidelines prepared by the Department of Internal Affairs. 91

91 Financial Statements and Policy Reports Report on the Long Term Fiinanciiall Strategy Introduction Council adopted its current Long Term Financial Strategy in June The strategy is included as part of Council s Strategic Plan, The Path to Tomorrow. The strategy includes: Estimated expenditure for each activity Why Council is involved with each activity Proposed sources of funds for each activity to cover expenditure Estimated cashflow projections Estimates of creation and realisation of reserves, investments and assets Estimated changes in the level of equity Estimated long term borrowing requirements Estimates of commitments and contingencies for future events Section 122V of the Local Government Act specifies that every local authority must provide in its annual report sufficient information about the Long Term Financial Strategy to enable an informed assessment of the extent to which the objectives and provisions of the strategy have been met during the year. In 2003/2004 the Council was in year four of the LTFS. This report summarises progress against the Strategy to the year ended 30 June

92 Financial Statements and Policy Reports Comparison with the Long Term Financial Strategy Statement of Financial Position as at 30 June 2004 Council Council Actual LTFS Change Current Assets Cash at Bank (68) Deposits - General & Special Funds 7,861 2,140 5,721 Receivables, Prepayments, Accruals and Inventories 7,591 1,660 5,931 Properties Intended for Sale 1,708 1,708 Total Current Assets 17,192 3,900 13,292 Non-Current Assets Local Authority & Government Stock and Bonds 3,044 4,136 (1,092) Term Advances (202) Shares & Debentures 2,061 2,549 (488) Sinking Funds Invested 906 2,455 (1,549) Joint Forestry with Palmerston North City Fixed Assets 385, ,810 52,940 Total Non-Current Assets 392, ,899 49,824 Total Assets 409, ,799 63,116 Current Liabilities Payables and Accruals 7,105 2,000 5,105 Bonds & Deposits 2, ,126 Current Portion of Term Debt 1,386 6,216 (4,830) Total Current Liabilities 10,917 8,516 2,401 Non-Current Liabilities Term Debt 8,613 15,176 (6,563) Provisions Total Non-Current Liabilities 9,394 15,176 (5,782) Equity Trust Funds Special Funds 3,710 4,136 (426) Loan Repayment Funds 906 2,455 (1,549) Ratepayers Equity 229, ,520 4,837 Asset Revaluation Reserve 155,226 91,924 63,302 Total Equity 389, ,107 66,497 Total Liabilities & Equity 409, ,799 63,116 93

93 Financial Statements and Policy Reports Comparison with the Long Term Financial Strategy Statement of Operating Performance for the year ended 30 June 2004 Council Council Actual LTFS Change Operating Revenue General Rates and Separate Rates 1,612 1, Uniform Annual Charges and Separate Service Charges 14,011 13, Subsidies 11,239 3,159 8,080 User Fees and Charges 3,475 2, Interest Received Revenue from Vested Assets Other Revenue 3, ,509 Total Operating Revenue 35,044 21,531 13,513 Operating Expenditure on Significant Activities Community Development 1, Community Services 1, ,033 Drainage Emergency Management Environmental & Regulatory Management 1,323 1, Leisure Resources 4,029 2,884 1,145 Policy Development 1, Roading 15,382 6,835 8,547 Waste 2,957 3,274 (317) Water 2,171 2,327 (156) Other Expenditure 1, ,062 Total Operating Expenditure 32,839 20,437 12,402 Net Operating Surplus/(Deficit) Before Taxation 2,205 1,094 1,111 94

94 Financial Statements and Policy Reports Report on Fundiing Polliicy Introduction Council s current Funding Policy was adopted in June The Funding Policy sets out who will pay and how for Council s functions. Section 122V of the Local Government Act 1974 specifies that every local authority must provide in its annual report sufficient information about the Funding Policy to enable an informed assessment of the extent to which the objectives and provisions of the strategy have been met during the year. This report summarises progress against the policy for the year ended 30 June 2004 and includes: Overall performance Summary table, including notes on key variations Overall mix of funding mechanisms for the district Overall Performance Overall, with some exceptions the funding mix proposed by the Funding Policy was achieved. The notes on page 96 explain major deviations from the adopted Funding Policy and other relevant information. Funding policies were identified for 33 functions within Council s 11 Significant Activities. The results below present the proportion of costs funded by public and private funding mechanisms. For example, in Urban Stormwater, the Funding Policy identifies a 20:80 public:private split with the public component to be funded by the General Rate and the private component to be funded by a Uniform Annual Charge levied on the user area. The result indicates a 19:81 public:private split in 2003/2004 funding for Urban Stormwater. 95

95 Financial Statements and Policy Reports Summary Table ACTUAL FUNDING POLICY Significant No. Function Public Private Public Private Note Activity % % Community 1 Public Conveniences Facilities 2 Housing for the Elderly and Disabled Cemeteries Democracy 4 Democracy and Policy Development District 5 Community Funding and Development Development 6 Economic Development Feilding CBD Redevelopment Emergency 8 Civil Defence Management 9 Rural Fire Hazard Response Environmental 11 Environmental Policy & Regulatory 12 Animal Control Policy Management 13 Animal Control Consents Animal Control Monitoring and Enforcement Building Consents Environmental Health Consents General Inspection Consents Liquor Licensing Consents Planning Consents Environmental Monitoring and Enforcement Leisure 21 Libraries and Archives Resources 22 Local Halls and Recreation Complexes Parks and Reserves Makino Aquatic Centre Roading Network 25 Roading Network Waste 26 Wastewater Solid Waste Collection Solid Waste Disposal Recycling Water Supply 30 Rural Land Drainage Urban Stormwater Water Supply Notes 96

96 Financial Statements and Policy Reports Overall Mix of Funding Mechanisms for the District The table below illustrates the mix of funding for the year ended 30 June 2004 for both operating and nonoperating items. Actual 2004 Budget 2004 Source of Operating Revenues General Rates 1,612 1,612 Targeted Rates 14,011 14,018 Total Rates Revenue 15,623 15,630 Grants & Subsidies 11,239 3,892 User Fees 3,475 3,308 Investment and Other Revenue 4, Total Other Revenues 19,421 7,830 Total Operating Revenues Provided 35,044 23,460 Cash Outflow on Capital Expenditure Items 5,649 12,053 Cash provided from Net Cash Inflow from Operating Activities 7,212 7,646 Increase in External Debt (976) 3,735 Investments Realised and Asset Sales 1, (Increase)/Decrease in Cash Reserves (1,771) (196) 5,649 12,053 97

97 Financial Statements and Policy Reports Report on Borrowiing Management and Investment Polliiciies Borrowing Management Policy (refer also Public Debt Notes) Commentary During the course of the financial year Council raised $1.825 million of loans and repaid $2.783 million resulting in a decrease in term debt from $ million at the start of the financial year to $9.999 million at the 30 th June Most of the debt raised during the year was therefore for the purpose of refinancing existing debt, with only a small amount of new debt raised to finance capital expenditure projects. Key Statistics Actual Actual Budget % Gross Interest Expense compared to Revenue (not to exceed 10%) 2.2% 3.4% 5.8% 1.6 Gross Interest Expense compared to Rates Revenue (not to exceed 20%) Net Working Capital Ratio (Current assets compared to current liabilities excluding current portion of debt and Properties for Sale Target is 1 or greater.) 4.8% 5.4% % Total Debt compared to Total Assets 2.4% 3.5% Council has complied with all aspects of its Borrowing Management policy. For further information refer to Note 10. Investment Policy Council is a prudent and conservative investor and while seeking to maximise the return from its investments, it realises that its level of short-term investments is comparatively small and not of great significance in the corporate money market. Council s long-term investments are predominantly in nil risk assets such as government or local authority stock and bank bonds. Council investment money includes funds accumulated with respect to general funds, special funds, loan repayment funds and trust monies. Interest Received Interest received on investments at $554,000 was down on last year s $722,000 due mainly to a decrease in the interest rates. Other Equity Investments Council has maintained its investment in Powerco Ltd and the joint forestry investment with Palmerston North City Council along with its historical investment in LGIC. Council complied with its Investment Management policy during the year. For further information refer Note 1. 98

98 Other Information 99

99 Other Information Manawatu Diistriict Counciill ~ Diirectory The logo for the Manawatu District Council has a flowing style of M endeavoring to give the feeling of the hills that are prominent around this area. The tail of the M becomes smoother to indicate the relatively flat plains within the hills. The Manawatu River through the hills is also indicated by the flowing M. The M moves over 5 diagonal bars representing the 5 former Councils which make up the new district (Feilding Borough Council, Kiwitea County Council, Manawatu District Council, Oroua County Council and Pohangina County Council). The feeling of movement also indicates that the council will be seen as a lively, progressive and forward thinking local authority. Council Office: 135 Manchester Street, Feilding Postal Address: Private Bag , Feilding Telephone: (06) Fax: (06) public@mdc.govt.nz Web: Auditors: Audit New Zealand, 292 Featherston Street, Palmerston North (on behalf of the Office of the Controller and Auditor General) 100

100 Other Information Manawatu Diistriict Counciill ~ Mayor and Counciillllors Mayor: Ian McKelvie Phone; (Cl) (Home) Feilding Ward Cr Matt Bell Phone : Cr Barbara Bramwell Phone : Cr Adele Gibb Phone : Cr John Gregory Phone: Cr David Stroud Phone: Kairanga Ward Cr Mervyn Craw Phone : (Deputy Mayor) Cr Graeme Smith Phone: Kiwitea - Pohangina Ward Cr John Baxter Phone: Cr Eric Linklater Phone : Cr Prue McBeth Phone:

101 Other Information Manawatu Diistriict Counciill ~ Organiisatiion Structure Functional Staff Organisation Chart at 1 June 2004 CHIEF EXECUTIVE MANAGEMENT SUPPORT ASSETS GROUP (Infrastructural Asset Management) COMMUNITY SERVICES GROUP (Community Services and Facilities) ENVIRONMENTAL GROUP (Planning and Regulatory Services) CORPORATE SERVICES GROUP (Support Services) ROADING WATER COMMUNITY DEVELOPMENT DISTRICT LIBRARY SERVICES ENVIRONMENTAL HEALTH PLANNING BUILDING CONTROL COUNCIL SECRETARIAT STRATEGIC PLANNING WASTES DRAINAGE EMERGENCY MANAGEMENT Civil Defence Rural Fire RESERVES Environmental Health Liquor Licensing General Inspection Animal Control District Planning Policy Planning Consents Monitoring/ Enforcement Building Consents Building Act Enforcement INFORMATION SERVICES PROPERTY MANAGEMENT CONTRACT MANAGEMENT MAKINO AQUATIC CENTRE ECONOMIC DEVELOPMENT Feilding Promotion Vision Manawatu Destination Manawatu CUSTOMER SERVICES (Treasury) CUSTOMER SERVICES (Call Centre) Creditor Services Debtor Services Payroll Services Reception Telephones Word Processing Record Mgmt RATES AND REVENUE COLLECTION SERVICES Chief Executive Rod Titcombe Community Services Manager Lorraine Vincent Assets Manager Richard Kirby Environmental Manager Patrick McHardy Corporate Services Manager Graham Teahan 102