Three yearly, at the time of preparation of LTP, or more frequently if required

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2 Revenue d Fincing Policy Responsibility Deputy Chief Executive First adopted 10 July 2003 (265/03) Historic revision dates 31 Juary 2006 (026/06 028/06), 10 July 2006 (347/06); 2009 (137/09); 28 June 2012 (236/12), 18 June 2015 (15/165), 16 June 2016 (16/144), 1 Feb 2017, 29 March 2018 (18/80) Next review date 2021 Review frequency Approval authority Consultation required Three yearly, at the time of preparation of LTP, or more frequently if required Special Consultative Procedure Record number Docset ID Associated documents The Long Term Pl, Annual Pl d fincial policies Policy Objectives This policy explains how will fund operating d in order to meet the current d future needs of the. Principles The following principles guide the decisions that has made in relation to funding sources 1. Where there is a private benefit to a service, options such as targeted rates d user charges will be preferred methods of funding, providing that it is efficient to collect revenue. 2. Each generation of ratepayers should pay for the they receive. Where, borrowing c assist to achieve this outcome. 3. Rates systems should be equitable, simple d easily understood. 4. Rates are not a charge for the use of a service. 3. Policy Statement 3.1 Rating Section Objectives The objectives are: To ensure that the adopted rating system spreads the cost of rates as fairly d equitably as practical. Provides sufficient revenue to cover operating d not covered by other sources of revenue. To ensure that rating policy complies with the relevt legislation. 3.3 Considerations In selecting a rate for each service funded wholly or partially by rates revenue, the following s will be taken into account: Who receives the primary benefit/s of the activity or service being delivered? What is the extent of wider public benefit compared to benefit/s being received by individual, household or business?

3 3.4 Rating System The legislation provides for different ways in which to levy a general rate. The options available are: The Annual Value System - requires valuations based on the rental value of property to be updated nually. The Ld Value System - the cost of rates is based on the value of ld without taking into account the value of y improvements. The Value System - the total value placed on each property (ld d improvements) should approximate a market value. In s view the Value System provides equitable outcome for ratepayers because it considers the total value of the property. 3.6 Uniform Annual General Charge / Additional Unit Rate Section 21 of the Local Government (Rating) Act 2002 restricts the revenue raised in y one year from the Uniform Annual General Charge (UAGC) d certain targeted rates on a uniform basis (excluding water d sewerage charges) to 30% of the total rates revenue of. The UAGC d/or the Additional Unit Rate (AUR) will be used as a rating mechism across the full rge of activities for which it is determined that a generally based rate is. will levy the UAGC on each separate rating unit d AUR on each separately used or inhabited part of a rating unit beyond the first. 3.7 Targeted Rates These c be levied as a rate in the dollar of value or ld value of every separate rateable property within the district, or in only a part of the district (where the function, work or service will benefit only a part of the district). has used targeted rates for where there is a high level of public good d/or where it is difficult to identify benefiting individuals within the district. will use targeted rates when it is to collect revenue from one or more groups of ratepayers who receive a specific localised benefit. The to be funded by a targeted rate include: On a Value Basis: Stormwater Putāruru business promotion. On a Uniform Basis: Additional unit rate (as described above) Hall rates (within each hall rating area) support - Pride in Putāruru (PIP) Refuse collection Tīrau Board (Ward) support Tokoroa promotion Sewage disposal Water supply (including Athol) District recycling 3.8 Differential Rates is able to introduce differential rating using classifications relating to the following factors: Ld use Zoning Property size

4 Property location All such matters provided for in Schedule 2 of the Local Government (Rating) Act believes that it is able to operate a rating system that meet the requirements of the revenue d fincing principles, without differential rating 3.9 Early Payment does not apply early payment discount to ratepayers. believes that the early payment discount favours those ratepayers who could pay all their nual rates at once d unfairly disadvtaged ratepayers who were not in a fincial position to do this Penalty Policy will charge penalties for unpaid rates in accordce with Sections 57 d 58 of the Local Government Rating Act Our penalty policy d the dates on which penalties are to be applied are provided in the Impact Statement which is included in every Long Term Pl d Annual Pl. 4. Other Sources of 4.1 Fees d Charges Fees d charges are charges imposed on some offered by. 4.2 Fincial Contributions will seek fincial contributions under the provisions of the Resource Magement Act. The Fincial Contributions Policy is provided in the Long Term Pl 4.3 Subsidies d Grts Where available, subsidies d grts will be sought to the maximum level permitted, consistent with s ability to meet y local share requirement. 4.4 Lo Fince Lo fince is used for projects where there is a funding shortfall d potentially where there are issues involved. Refer to the Liability Magement Policy 4.5 Investment Income d may resolve, as part of its Annual Pl or Long Term Pl, to make distributions nually from investment income d/or to reduce the cost of rates d charges. Refer to the Investment Policy 4.6 Investment Income Reserves Income received from reserve investments is applied in accordce with the purpose of the reserve. 4.7 Created d Restricted Reserves These are savings retained for specific projects, purchase of items, or where legislation restricts the use of the funds to a defined purpose(s). 4.8 Miscelleous Income Miscelleous income received is used for the general purposes of that are not funded from special rates d charges.

5 4.9 Utilising Cash Surpluses Cash surpluses derived from targeted rates, fees d charges may, at s discretion, be used to offset the cost of future years. These are maged through targeted rate reserves Expenditure is funded from reserve funds set aside for this purpose, lo fince, investment income, d rates revenue. The specific source of funding for projects is determined within each year s adopted fincial forecast. 5. Summary of Revenue d Fincing Decisions as from 1 July 2018 In adopting the percentages in the table below, is happy with the budgeted revenue being within +/- 5% of the target. For some activities, adopted the budgeted revenue outside of these limits, d the reasons why have been included below the table. Activity General rating mechisms (General Rate/UAGC/ Additional Unit Rate) % Targeted Rates % User Fees LTP Revenue assumptions within +/- 5% Animal Control Yes Building Consents d Inspections No Business d CBD Promotion Tokoroa d Putāruru 100 Yes Cemeteries Yes Advocacy, Grts d Support (including Visitor Centres) Governce (Tīrau Board) 100 Yes 100 Yes Halls 95 5 Yes Complice 95 5 Yes District Governce 100 Yes District Promotion 100 Yes District Recreation 100 Yes Economic Development 100 Yes Emergency Magement 100 Yes Health Yes Libraries 92 8 Yes Parks d Reserves (including Sportsgrounds) 95 5 Yes Pensioner Housing 100 Yes Property Magement Yes Public Toilets 100 Yes Resource Magement (consent processing) Yes Resource Magement (policy d monitoring, including environmental protection d monitoring) Roading (general roading activities) 100 Yes 100 (after subsidies) Yes

6 Activity General rating mechisms (General Rate/UAGC/ Additional Unit Rate) % Targeted Rates % User Fees LTP Revenue assumptions within +/- 5% Roading (CBD upgrade lo) 100 Yes South Waikato Performing Arts Centre (The Plaza), d Tīrau Hall 100 (after hireage income) South Waikato Sport d Events Centre Yes Stormwater 100 Yes Swimming Pools - Indoor (Tokoroa) Yes Swimming Pools - Seasonal (Putāruru d Tīrau) Yes Talking Poles 100 Yes Te Waihou Walkway* 100 Yes Tokoroa Airfield Yes Tokoroa of Social Services** Yes Waste - Ldfills d Refuse Disposal Yes Waste Litter Collection 100 Yes Waste - Refuse Collection Yes Waste - Recycling 100 Yes Wastewater (Sewerage) 100 Yes Water Supply 100*** Yes Yes UAGC = Uniform Annual General Charge. User charges are inclusive of general fees, administration fees, rentals, fines d license fees. by adopting the percentages in the table above is happy with a +/- 5% bding being applied. * Included in parks d reserves activity ** Included in advocacy, grts d support activity *** Targeted rates includes water-by-meter charges as relevt Activity GR target GR in year 1 of LTP Building Consents d Inspections Reason for adopting with a varice 50% 41% Currently is contributing more back to General rate th intended. As this might be a cyclical effect due to the volume of consents received rather th the pricing, has decided to leave the target at 50%. Tokoroa Airfield 50% 73.2% The expenses for the Airfield have increased ly in 18/19. There may be some opportunity to increase fees over time as other /facilities are developed, but it is unlikely to cover the cost of the additional expenses. This general rate target is to be reviewed during the airport strategy review. Tokoroa of social Services 85% 91% Currently the projected rental revenue is not sufficient to meet this target. Work to be done to increase revenue opportunities.

7 Ldfills d Refuse Disposal 20% 5% Revenue has increased partly due to increased volumes, but also due to the fee increase. Target is to remain at 20% until the review is completed of both the Waste Minimisation Pl d the Solid Waste Disposal. Refuse Collection 50% 42% Revenue has increased due to the increased cost of bags. The target has been revised from 55% to 50%.

8 Animal Control Building Control A quality regulatory service Grow our economy A quality regulatory service Efficient operations. The Owner The are in the knowledge that if a dog is lost, once found; it c be identified d the owner c be notified. If the dog misbehaves it c be identified d dealt with accordingly d there is a register of the owners who have responsibilities in owning a dog. The whole through dog control d registration, local d national education d stock control, d, more especially, through public safety. The holder of the consent receives by being assured that the building work has been completed in complice with the building code. This ensures that the building is safe d built to the stdard. Members of the general public receive by being able to receive advice about the requirements of This activity is focused on the current. There is This activity is about service delivery to current ratepayers d residents. There is The level of responsibility of dog d stock owner s impacts on the cost of d the level of complaints received for this The actions of most individuals or groups have a minor impact on this of This activity is distinct from y other has systems in to this Identifying separate funding assists in the accountability d trsparency of s on this The imal control service relates to dog ownership which is individual s choice. For this reason considers that dog owners should, in addition to registration fees, contribute to the cost of both dog d stock public safety d nuisce avoidce. Offenders should, through a scale of fees, contribute towards the cost of investigations, impounding d prosecution. A combination of fees, charges d fines is the most efficient, effective d way to fund the private benefit. The most efficient, effective d method of funding the private benefit is a cost recovery basis using a rge of fees d charges The public good element is to be funded from rates revenue.

9 Business d CBD Promotion Tokoroa d Putāruru Cemeteries Advocacy, Grts d Support (including Visitor Centres) Grow our economy Improved external image pride. Well maged infrastructur e d facilities Sustainable operations. Improved external image d facilities pride. relevt legislation. The from this service are both to the business people in the Putāruru d Tokoroa Central Business Districts, with the residents of the ward benefiting from economic development. There is no benefit to residents d businesses in the Tīrau Ward. There is little development work required for cemeteries. is from current mechisms. There are no intergeneration al s. The beneficiaries of are those who receive the grt d other support. There is a wider public benefit as the grts d support help support our groups, The benefit is for current communities, specifically the business orgisations in the commercial areas of Putāruru d Tokoroa. There is The service primarily provides a private benefit for the family d friends of the deceased who are buried in the district. Records of interment have a clear relationship to the history of the d are public information. There is Actions by business orgisations in the commercial area will cost of this The number of plots required impacts on the level of service provided. The impact of others should be minimal. of This activity has a clear focus on growing the local economy. The nature of this activity indicates that it should be accounted for separately. There is place for the allocation of costs to this The nature of indicates that it should be accounted for separately. has a structure that c allocate costs to this As this is a key leadership role for, it is that the results d associated costs are separately disclosed. has noted that business promotion orgisations assist with advocacy, liaison d the promotion of the district. The most method to fund this service is from rates revenue. The most method for funding the private benefit (the recovery of cost of burial ) should continue to be user charges. The cost of maintaining cemetery grounds generates public benefit, this part of the service is to be funded from rates revenue. method for funding this public good service was general rating mechisms.

10 Governce (Tīrau Board) Halls Cultural leadership. d facilities pride. contributing to a vibrt. The on this service is for the public good, but are restricted to the ratepayers d residents within each ward served by the respective Boards. The hall users are the direct beneficiaries of halls. Users include education groups, recreation groups, sports groups, social groups d people hiring halls for other activities, including private functions. On a districtwide basis, halls provide options for the at large. There is s involvement in halls is largely historical. There is no plned replacement programme. Intergenerational has been considered, but has resolved to fund projects as they arise. Direct users c have stdard d quality of facilities. of to this The level of public interest within this necessitates the separate disclosure. has systems in to this The level of interest in this activity warrts separate disclosure. has allocate the costs to this The most funding source is a targeted ward rate. The most efficient, effective d way to raise the cost of the public good (district d allocation) element was a targeted rate on a uniform basis on each separate rating unit within a hall rating area. The funds raised for each hall should be used to meet the nual operating cost d make provision for covering the cost of plned major maintence d in the years ahead. the private benefit should be recovered from rental income d that each hall committee should be responsible for

11 Complice District Governce District Promotion Grow our economy A quality regulatory service Efficient operations. All of the are applicable. Grow our economy Improved external image pride. There is a greater element of public good in the enforcement area. The principal purpose is to represent the interests of all residents d ratepayers., its Committees d the office of the Mayor benefit the district in that members are elected to provide a governce service including representation, policy setting, monitoring d review. The of district promotion extend to the wider. Everyone through increased economic growth when the district is positively promoted d tourists are This activity is about service delivery to current ratepayers d residents. There is There is The are for current d future communities. However, there is Stakeholders must maintain high stdards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the Action or inaction by others does not impact on the need to undertake this The involvement of the c impact on the success or otherwise of this of The regulatory nature of the relevt Acts makes it to combine the various requirements of these Acts together into a separate has systems in separately to this This activity is distinct from other activities because it is the basis of local government representatio n in decision making. has systems in to this The benefit received from is not always tgible. For this reason, it is importt that keeps track of its contribution to, which is distinct from other activities. setting the rge of rentals applicable to its hall. It is sometimes difficult to recover costs in the enforcement area, in particular when complaints are received. Income from the exacerbator is unpredictable t. The most, method of Governce d promoting wellbeing was to charge for this service through general rating mechisms. method of funding the public good allocation was general rating revenue.

12 District Recreation Economic Development Emergency Magement pride. Grow our economy Improve external image A quality regulatory service. spending time d money within the district. The members of our who use this service benefit from improved health d fitness. Economic growth d development results in improved job opportunities for our residents, helping to improve prosperity. The operation of the Civil Defence service involves maintaining a state of readiness so that the district is equipped to cope, should a civil emergency occur This activity is primarily about benefiting current communities. There is The are for current d future communities. However, there is This activity is about being prepared to respond in emergency. There is The involvement of the in c impact on the success or otherwise of this The involvement of the c impact on the success or otherwise of this There is minimal impact from others through natural disasters, although fires may result from hum intervention. of has to this has a to this The benefit received from is not always tgible. For this reason, it is importt that keeps track of its contribution to, which is distinct from other activities. has to this Given the high benefit it is that the activity is separately disclosed. The nature of indicates that it should be accounted for method available for funding this public good service was general rating revenue. The most method of funding the public good allocation is general rating revenue. method for funding these was general rating revenues.

13 Health Grow our economy A quality regulatory service Efficient operations. Licenses d inspection Where provide independent certification that adequate stdards have been met in the operation of activity, eg hairdressers, food premises, liquor outlets, the of the service are predomintly received from the holder of the certificate or licence. Another importt part of regulatory inspection work is providing information d advice to the developer as well as the general public about potential effects d/or relevt legislative requirements. This activity is about service delivery to current ratepayers d residents. There is Stakeholders must maintain high stdards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the of separately. has systems in to this The regulatory nature of the relevt Acts makes it to combine the various requirements of these Acts together into a separate has systems in separately to this Legislative limitations on fees, eg liquor licensing, places a restriction on s ability to recover user charges. will to the extent possible fund the private benefit on a cost recovery basis using a rge of fees d charges designed to generate approximately 20% of revenue required to operate the service. The public good element is to be funded from general rating revenues. Libraries d facilities pride Cultural leadership Efficient operations. The library service provides a mix of, district d private. The direct beneficiaries are the users of provided by the district libraries. There is a public good in terms of learning d utilises depreciation d lo funding as a source of funding, recognising that a relevt d accessible collection, d facilities that are fit for purpose are the keys to providing a library service Charges are levied to reflect misuse of library books d materials. The Library activity is distinct from other core activities. With no alternative providers, it is considered to separate this has wishes to ensure equitable access to the library d because of this, method available within the limitations of statute for funding the wellbeing generated by

14 Parks d Reserves (including Sportsgroun ds) d facilities pride. support that is provided by the library service. The of sportsgrounds d parks d reserves include the encouragement of health d fitness, enhcement of amenities d contributes to public pride d general wellbeing. for future generations. There are both current d future. development will benefit future generations. should be from depreciation reserves d lo funding. Misuse of the facilities will costs of providing these. The Tokoroa Memorial Sportsground is maged under a contract with the South Waikato Sports d Leisure Board. The operation of this contract will impact on the cost of providing these. of to this The activity collectively represents a substtial cost d provides a key component of the infrastructure. There is no logical grouping into which the activity could be added. has to this providing a library service was user fees d general rating revenue. Sportsgrounds: the encouragement of sport d recreation within the district d the improvement of its image are importt objectives, which has recognised in setting its user charges. The funding source is rates revenue d user charges. method available for funding the sports grounds was general rating mechisms d a small amount of admission fees d user charges. Parks d reserves: the collection of parks d reserves represent a substtial cost of s activities d a key component of environmental infrastructure. There is no other logical grouping for d, therefore, it is to

15 Pensioner Housing Property Magement Well maged infrastructur e pride. d facilities. The direct beneficiaries are the occupts who are housed in quality, affordable housing.. It was private use of property conveyed private. However, some of the properties in this group are held for the public good d their strategic importce. believes that it has a social responsibility to continue to provide this service. involvement is being maintained development is proposed in the foreseeable future. The focus is on ensuring that the housing units are maintained to a good stdard. There are no There are no issues with this Actions of tents may cost of providing these facilities if misuse occurs. Tents d lessees have the ability to quality d stdard of the facilities. of The Local Government Act 2002 defines pensioner housing as a strategic asset. For this reason has elected to treat pensioner housing as a separate has allocate cost to this 's direct magement of these properties necessitates separate division of this The nature of this activity indicates that it should be accounted for separately. has systems in to this separate this does not seek a return on its investment in housing stock, but the cost of operations d on-going maintence should be fully funded from rental income. The most, method of funding this service is rental income. noted that there were no issues of fairness d which would alter the allocation of cost. This activity is, wherever possible, supported by rental income. In some cases encumbrces on the properties or market rentals limit income, resulting in a shortfall between income d. There will always be a

16 Public Toilets Regulatory Services (Health, Liquor, Noise d Parking) Improved external image d facilities. Grow our economy A quality regulatory service Efficient operations. There are considerable public relating to maintaining public health d eliminating nuisce issues d attracting visitors. Private good c be indirectly attributed to business ratepayers in recognition of retail trade. Facilities for the travelling public meet the criteria of public good. The balce of the service is a private benefit. Licenses d inspection Where provide independent certification that adequate stdards have been met in the operation of activity, eg hairdressers, There is a degree of activity as a major programme of investment occurs to upgrade existing d build new toilets. This activity is about service delivery to current ratepayers d residents. There is Users have the ability to quality d stdard of the facilities. Stakeholders must maintain high stdards for the activity objectives to be achieved. The impact of this not occurring will result in increased of The special nature of public toilets other logical grouping necessitates separate disclosure of this has to this The regulatory nature of the relevt Acts makes it to combine the various requirements of these Acts together into a separate need for rating support. The value of the support required from rates varies from year to year as properties are sold, d varies from property to property according to individual circumstces. While the toilets remain free of charge, it is impossible to either identify or exclude people from using this service during open hours. Currently there is no mes of charging for the private good that businesses may get from travellers stopping to use public toilets. method of funding the service was general rating revenue but has not excluded developing new user pays toilets in the future. It is sometimes difficult to recover costs in the enforcement area, in particular when complaints are received. Income from the exacerbator is unpredictable

17 Resource Magement (Plning) Grow our economy Improved external image A quality regulatory service Efficient operations. food premises, liquor outlets, the of the service are predomintly received from the holder of the certificate or licence. Another importt part of regulatory inspection work is providing information d advice to the developer as well as the general public about potential effects d/or relevt legislative requirements. Enforcement There is a greater element of public good in the enforcement area. Consents d inspection Where provide resource consents to individuals or developers, the of the service are predomintly received from the holder of the consent. Another importt part of consent work is providing information d advice to the public about the requirements of relevt legislation. Enforcement There is a greater element of public good in the This activity is about service delivery to current ratepayers d residents. There is costs for the Stakeholders must maintain high stdards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the of has systems in separately to this The nature of makes it to separate it from other activities that carries out. has systems in separately to this t. Legislative limitations on fees, eg liquor licensing, also places a restriction on s ability to recover user charges. will to the extent possible fund the private benefit on a cost recovery basis using a rge of fees d charges designed to generate approximately 20% of revenue required to operate the service. The public good element is to be funded from general rating revenues., with the exception of policy d monitoring work, efficient, effective d method of funding the private benefit (the applict allocation) is a cost recovery basis using a rge of fees d charges designed to generate approximately 35% of revenue required to operate the service. The public good element of consenting work, d the

18 enforcement area. At present, most enforcement work is undertaken in response to a complaint from the public about Where possible, the costs of enforcement work are recovered from the exacerbator. There is also a monitoring fee on all resource consents to help cover the costs of inspection. Where people are not meeting the conditions of the consent, further action may be taken d costs recovered. Policy The main purpose is to prepare pls which set stdards or guidelines for the sustainable magement of the environment d for the as a whole. The District Pl sets the stdards to ensure the resources in the district will be available for future generations. It is that the as a whole meets the costs of plning. of policy d monitoring work, is to be funded from general rating revenue.

19 Roading South Waikato Performing Arts Centre (The Plaza) d Tīrau Hall Grow our economy Well maged infrastructur e Sustainable operations Efficient operations. Improved external image d facilities pride Cultural leadership Central Government collects user charges from the motorist via petrol excise tax, road user charges d registration fees. The balce of the cost is raised from local ratepayers. contends that this should be treated as a public good element as it has no authority to levy user charges. The local public good element is predomintly about providing access d opportunity for use. considered the issues d, on both economic d public wellbeing basis, determined that the allocation of the ratepayer contribution was considered to be 100% public good. The South Waikato Performing Arts Centre represents a portion of s contribution to the cultural d leisure infrastructure of the district. The most direct beneficiaries are the regular users d those who attend or will attend Roading is a long-term asset. has identified long-term of developing new roads d funds this through depreciation reserves, los d NZTA subsidies. The theatre d hall will benefit the d users, currently d in the future. proposes to fund development through builtup reserves, depreciation reserves d lo funding. Heavy vehicle d high volume users quality of the roading network. This exacerbator situation is covered to a certain extent by the NZTA subsidy being partly sourced from road user charges d excise tax which are weighted towards heavier d higher users. Misuse by users c quality of these facilities. of The size d nature of this activity is unique to. The practical magement of is such that it operates as one has to this It is necessary to keep these facilities separate from other activities to clearly identify the cost to the. has established a structure which caters for easy allocation of costs to these activities. method available for funding the public good service was general rating mechisms, after gaining as much revenue as possible from Central Government subsidies. has considered its allocation of district d benefit in relation to these two facilities d the South Waikato Sport d Events Centre to the other cultural/leisure facilities provided throughout the

20 events held in these venues. The from having multiple cultural/leisure opportunities to enjoy d the district s reputation is enhced by the provision of a broad spectrum of cultural/leisure choices. The Tīrau Hall provides a facility able to be used for social d cultural purposes. Again, while the most direct beneficiaries are the regular users d those who will attend meetings d events held in the hall, the wider from having a facility such as this. of district. has determined that these three facilities will be funded from general rating mechisms across the wider district. This will me that one key facility will be funded districtwide in each of the three major urb areas. The other halls, located in rural areas, will not be funded district-wide see the separate funding policy for these. considers that method available for funding the public good allocation of the South Waikato Performing Arts Centre d the Tīrau Hall is general rating mechisms. There will be some hireage revenue generated from these facilities however the net costs after recognition of that revenue will be met by rates. Fees collected from using the SWSEC will be used to generate as much revenue as possible. However, it is pricing is South Waikato Sport d Events Centre Improved external image d facilities pride Cultural leadership. The most direct beneficiaries are the regular users d those who will play sport or attend events held in the centre. The from The South Waikato Sport d Events Centre, will benefit the d users, currently d in the future. Misuse by users c quality of these facilities. It is necessary to keep these facilities separate from other activities to clearly identify the cost to the.

21 Stormwater Well maged infrastructur e Sustainable operations having contemporary facility to enjoy d the district s reputation is enhced by having the facility. is of the view that publicly owned stormwater control provide both d district. The (including private) benefit is high as it reduces the risk of flooding d associated problems, including disruption to trsport, property damage d risk to personal safety. Stormwater provide similar to the district, albeit on a smaller scale. These include maintaining high stdards of public health, keeping roadways clear of flood water d minimising inconvenience proposes to fund development through builtup reserves, depreciation reserves d lo funding. There are s especially within the urb environment related to public safety. work will be funded by depreciation reserves d lo. Users of the scheme c impact on this of has established a structure which caters for easy allocation of costs to these activities. Stormwater is activity closely monitored by the. Given the high benefit, considers it to separate this has systems in to this sensitive. Prices that are considered by users as being too high could have adverse effect on usage d, in particular, for people in the lower socioeconomic areas of the. in the interests of fairness d the proportion of user benefit should not exceed 20%. method for funding urb stormwater is to charge a targeted rate in the dollar of rateable value within each urb stormwater drainage area. The choice of a value targeted rate in part recognises that larger properties have the potential to discharge more water into the stormwater system.

22 Swimming Pools Improved external image d facilities pride Sustainable operations for the public at large. This is particularly importt because of the close settlement within urb areas. Stormwater on a private property that are for the benefit of that property or are to mitigate the effects of stormwater runoff from that property on downstream properties are the responsibility of the property owner. The most direct beneficiaries are pool users. They include individuals, both children d adults, senior adults, clubs d schools. These groups are identifiable d therefore excludable. benefit is based on option values in that residents have additional leisure activity choice. leisure facilities enhce the reputation of the district (district image) d assist in promoting the South Waikato as a place in which to invest, live d work. The South Waikato Indoor Pools complex is primarily for current d future users of the facility. Any developments d renewals will be funded from the depreciation reserves or lo. Swimmers cost of this activity d, to a lesser extent, the swimming club, schools d user groups of There is sufficient interest to separate out this It is considered necessary to keep these facilities separate from other facilities to clearly demonstrate the d costs to the. There is no alternative grouping into which this activity could be added. There is place for the allocation of costs to this Ticket sales will be used to generate as much revenue as possible. However, it is pricing is sensitive. An increase in prices could have adverse effect on pools usage d, in particular, for people in the lower socioeconomic areas of the. This was felt to be, way of funding the public good. admission fees (ticket sales) were, efficient,

23 of effective d method of funding the private benefit. Talking Poles d Waikato River Trails Tokoroa Airfield Tokoroa of Social Services Improved external image pride Cultural leadership. Improved external image d facilities pride. pride Cultural leadership. support of these projects conveyed positive public. They are importt for both district promotion purposes, d for the on-going recreational d arts d cultural enjoyment of residents. It is recognised that these projects primarily provide public. It was private use of property conveyed private. However, there is public good in maintaining a local airport. The beneficiaries of are to those who use the Tokoroa of Social Services. this service, closely related to the The are for current d future communities. However, there is There are issues with this spending is funded from reserves d lo. There are no s. There is The involvement of the c impact on the success or otherwise of this Users, tents d lessees have the ability to quality d stdard of the facilities. The impact of others should be minimal. The benefit received from is not always tgible. For this reason, it is importt that keeps track of its contribution to these activities, which are distinct from other activities. has to this The nature of indicates that it should be accounted for separately. has systems in to this It is that the results d associated costs are separately disclosed. has method of funding the public good allocation was general rating revenue. noted that there were no issues of fairness d which would alter the allocation of cost. This activity is, wherever possible, supported by rental income however rates funding is also justified due to the public good element. method for funding this public good service was general rating mechisms. Private benefit is recognised in

24 Urb Connector Waste - Ldfills d Refuse Disposal d facilities pride Well maged infrastructur e Sustainable operations support d grts function, was primarily engaged in providing a public benefit for the d district as a whole. did recognise that in providing this service the flow-on effect could generate private. However, the public benefit was domint d came first. The extend to those who use the service as they have greater trsport options to access the d facilities that they need. The wider because members have greater trsport options to available to access employment, education etc. The disposal of solid waste conveys private to ratepayers d residents, however the operation of environmentally sound ldfill d trsfer station sites also assists in maintaining local public health stdards. It There are no s. There is There are s with this The ldfills will require monitoring after closure. spending will be met from reserves d los, d Government grts when The impact of others should be minimal. Users of ldfill sites impact on this service. The level of recycling also impacts on this of to this It is that the results d associated costs are separately disclosed. has to this has decided to separate this activity due to its nature (disposal) being different from collection d recycling. has system in separately allocate the a funding allocation from user fee rentals. This activity will be funded 35% by General Rates, 35% by User Fees d 30% from New Zeald Trsport Agency subsidy. will retain a 70% private benefit, 30% public good split.

25 Waste Litter Collection Improved external image d facilities Sustainable operations. also reduces the incidence d impact of illegal dumping of solid waste, d the consequent reduction of district aesthetic values. A high stdard of ldfill site magement also assists in reducing environmental damage at the local d national level. Appropriate disposal methods d aftercare (including monitoring of closed ldfill sites) assists in reducing the possibility of future environmental damage. These matters are public good. Users of ldfill sites are the direct d largest group of beneficiaries of this service. On the basis of the exacerbator pays, the largest portion of economic benefit accrued to this group. While the service provides private, particularly to property owners in the central business districts, there they are approved. There are no s with this The are for the current communities. Those who litter will cost of this of costs to this considered that removing litter from public places d improving the image of the district is essential service d therefore it is, method for providing funding for this activity is

26 Waste - Refuse Collection Waste Recycling d facilities Sustainable operations. d facilities pride Sustainable operations. are huge public in ensuring that litter is not left on the streets, roadsides d public places. There is also a requirement to maintain public health stdards in the interests of the at large. Individual property owners benefit from the collection of rubbish but there is also a public benefit in relation to protection of public health, as required by the Health Act The collection activity is primarily private. Individual property owners benefit from the collection of recyclable waste materials There are no works. The are immediate, with no There would be if provides a building for the recyclables activity which would introduce some inter- The urb properties within the collection area will cost of this service. However, there are very different demds on the service depending on factors such as the number of people residing in a home, the level of waste generated, the use or non-use of commercial refuse collection alternatives, the use of composting initiatives within the property, the level of recycling, etc. The number of properties within the collection area will cost of this service. However, there are very different demds on of necessary to separate this has system in to this has decided to separate this activity due to its nature (collection) being different from the ultimate ldfill disposal magement. has system in separately allocate the costs to this has decided to separate this activity due to its nature (recycling) being different from refuse collection d ldfill disposal magement. through general rating mechisms. The refuse collection service should be funded on a user pays basis has practical mes of funding this activity is through targeted rate mechisms. This will assist in encouraging people to

27 Wastewater Well maged infrastructur e Sustainable operations Efficient operations. decided that the direct beneficiaries of a sewage collection d treatment service are the users of that service. This applies whether the user is a club, charitable orgisation, commercial or industrial enterprise, or a private residence. In addition, a benefit accrues whether the property is connected to the system or could be connected to the system. While the service provides predomintly private, the at large from the elimination of public health risks arising from open generational This activity has s. Depreciation funding or los are used for renewal work. the service depending on factors such as the number of people residing in a home, the level of waste generated, the use or non-use of commercial refuse collection alternatives, the use of composting initiatives within the property, the level of recycling, etc. Users of the sewerage schemes provision of this service. The size of the network capacity relative to current population minimise the impact that growth in the near future may have on provision of this service. of has system in separately to this The empowerment by the Local Government Act 2002 d the safety requirements necessitate separate disclosure of the has to this recycle rather th dispose to ldfill. Of all the funding tools available, efficient, effective d method available was a targeted rate on a uniform basis on each serviced rating unit.

28 Water Supply Well maged infrastructur e Sustainable operations Efficient operations. sewers d inadequate septic tk facilities. Environmentally sound treatment reduce the adverse impact on receiving waterways. This improves the environment downstream from the treatment plts d property owners in the adjacent rural areas within d beyond the district boundaries. with the major exceptions of health d safety, firefighting, street cleing, public toilets, parks, reserves d swimming pools; the accruing from this service were primarily private d that this decision applied to both commercial d domestic customers connected to the supply. The greater requirements of newly enhced national drinking water stdards will necessitate the need for development. There is intergeneratio nal component for this Depreciation funds, targeted water rate reserves, los d where possible, government funding are funding sources for work. The users of the schemes provision of these. of The public expectation of s provision of this service necessitates the separate disclosure of this has systems in to this Consideration has been given to the introduction of a domestic metered water supply. However, the high cost of installing d maintaining a metered service currently makes the proposal uneconomic.

29 Relevt Delegations Any chges to this Policy require approval. References d Relevt Legislation Local Government Act Local Government (Rating) Act Annotations Res No Date Subject/Description 265/03 10/07/03 Policy adopted 235/04 24/06/06 Policy amended/confirmed as part of Long Term Pl process 291/05 23/06/05 Policy amended/confirmed as part of Annual Pl process 026/06 to 028/06 31/06/06 Refuse Collection, Economic Development d Governce activity 347/06 10/07/06 Policy amended/confirmed as part of Long Term Pl process 358/07 28/06/07 Policy amended/confirmed as amendment to LTCCP. Chge to rate:fee ratio, Business Promotion Activity d The Plaza Activity. Defining Separately Used or Inhabited Parts of a Rating Unit 134/09 28/05/09 Policy amended/confirmed as part of Long Term Pl process 236/12 28/06/12 Policy amended/confirmed as part of Long Term Pl process 165/15 18/06/15 Policy amended/confirmed as part of Long Term Pl process 16/144 16/06/16 Policy amended/confirmed as part of Annual Pl process 18/80 29/03/18 Policy amended/confirmed for consultation as part of LTP process