Contents. Te Anau Airport Manapouri 108 Water Supply 110 Work Schemes 117

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2 Contents OVERVIEW Overview 1 From the Mayor and Chief Executive 2 What is the Annual Plan? 3 Vision, Mission and Guiding Principle 4 Our Way Southland Community Outcomes 5 Our Way Southland 6 Key Issues and Projects 8 Financial Overview 12 Overview of Submissions 15 ACTIVITIES Guide to Activities 21 Building Control 22 Cemeteries 26 Civil Defence Emergency Management 29 Community Centres 32 Community Housing 35 Council Facilities 38 District Development Services 42 District Support 46 Dog Control 49 Environmental Health 52 Forestry 55 Grants and Donations 58 Library Service 62 Parks and Reserves 65 Public Conveniences 69 Representation and Advocacy 72 Resource Management 75 Roading and Transport 78 Sewerage 88 SIESA (Stewart Island Electricity Supply Authority) 94 Solid Waste Management 97 Stormwater 101 Strategy and Communication 105 Te Anau Airport Manapouri 108 Water Supply 110 Work Schemes 117 COUNCIL CONTROLLED ORGANISATIONS Milford Community Trust 121 STRATEGIES AND POLICIES Development and Financial Contributions Policy 125 Investment Policy and Liability Management Policy 143 FINANCIAL INFORMATION Key Assumption Changes 160 Prospective Statement of Comprehensive Income 161 Prospective Statement of Changes in Equity 162 Prospective Statement of Financial Position 163 Prospective Statement of Cash Flows 164 Reconciliation between the Net Surplus and Net Cash from Operating Activities 165 Reconciliation between Prospective Funding Impact Statements and the Prospective Statement of Comprehensive Income 166 Depreciation by Activity 167 Accounting Policies 168 Funding Impact Statement (Consolidated) 180 Rates Section of Funding Impact Statement 181 Financial Reserves 194 New Rating Boundaries 204 Fees and Charges Variations 205 Balancing the Budget 210 OTHER INFORMATION About the Council 212 Opportunities for Māori Contribution to Decision-Making 217 Glossary 219 Contents i

3 Overview The overview explains what the Annual Plan is and describes the key issues being considered by Southland District Council (SDC or the Council) that the public may be interested in as well as information about the overall financial effect. Calculating the GST inclusive amount from a GST exclusive amount and vice versa Many monetary amounts in this document are reported as GST exclusive. When a GST exclusive number is multiplied by 1.15 it gives the GST inclusive amount. Where a number is reported as GST inclusive divide it 1.15 and it will give the GST exclusive amount. ISSN (Print), ISSN (Online) Overview 1

4 From the Mayor and Chief Executive ANNUAL PLAN 2013/2014 Thank you for taking the time to read Southland District Council s 2013/2014 Annual Plan. This is a key consultation document for the Council as it sets out what the Council is intending to do during the next 12 months. This Annual Plan should be read in conjunction with the Council s 10 Year Plan which was published last year. Both documents have been challenging to put together due to the current economic uncertainty and the need to balance long term infrastructural needs of the District against community affordability. The Council fully recognises that times are economically tough for some sectors of our community and it has tried to balance need against the ability to pay. In December 2012 central government brought into law a new purpose for local government. The previous purpose definedd the role of local government in terms of the well being of the communities. The new purpose changes the role of local government to provision of infrastructure, performance of regulatory functions and delivery of public services. Council will continue to ensure we have strong and vibrant communities while meeting the new purpose of local government. Working together for a better Southland will continue to be our mission. What we propose to do over the next financial year is governed by a range of factors, whichh include affordability, what needs to be done, central government legislative changes and what you tell us is important for your communities. The Council is being bombarded with changes and it is almost a fulltime job for the organisation to respond. A lot of these changes are based on hearsay rather than fact and have a strong urban big business focus. It is therefore very important that a southern rural perspectivee is at least voiced even if it is not always listened to. One of the major infrastructural projects which will be started this year is the upgrade of Te Anau s seweragee treatment and disposal system. This project, which is an investment of approximately $13M, is being undertaken to comply with resource consent conditions and meet future demand. The project will be completed in the next two to three years dependent on the consent conditions issued by Environment Southland. Venture Southland has now been in existence for 10 years and the Council is pleased with the community and economic development opportunities it delivers to the region. As part p of the drive to see this not only continue but also improve, the Council, along with its partner councils, undertook as part of the consultation process a review of Venture Southland s governance arrangements. The outcome of this after considering submissions is that for the time being Venture Southland will remain as a joint subcommittee of the councils. The commencement of the Stewart Island/Rakiura Visitor Levy will begin on 1 October The levy is $5.00 (GST inclusive) per visitor and the money collected will be used to help build and maintainn tourist infrastructure and services while ensuring the beauty of this wonderful part of our District is maintained. Another exciting tourism initiative is the Around the Mountain Cycle Trail. The Council has just received confirmation of central government funding of $4M and will be underwriting the rest of the proposed cost. The trail will be completed in two stages with construction of stage one expected to be completed by the end of October Stafff will spend much of the year working through submissions to the proposed Southland District Plan, which is the blueprint for the future in Southland. Counter and supporting submissions were called for in May 2013 and hearings are likely to be held in March We want to thank all those who submitted on this vital document. As you y may be aware, local body elections are held every three years and 12 October O 2013 is the date for this year s elections. This will be an interesting time for Southland S District Council with new representation arrangements in place. We hope h the new arrangements will stimulate interest in our local elections and this will translate into a greater turnout at voting time. In conclusion we would like to again thank all those who have taken the time to read this document. d Frana Cardno, QSO JP MAYOR David Adamson CHIEF EXECUTIVE From the Mayor and Chief Executive 2

5 What is the Annual Plan? The Annual Plan provides an update of what the Council is proposing to do in the coming year compared to what was proposed for that period in its 10 Year Plan (10 Year Plan or LTP). The Annual Plan includes information on how much it is going to cost to deliver the Council s proposed activities, how it proposes to pay for these, as well as outlines how the Council s performance will be measured. Minor changes in the timing or cost of projects that were described in the 10 Year Plan are also explained. The Annual Plan does not focus on the role, scope, service levels and priority of the Council activities. These wider strategic matters are intended to be dealt with through the preparation and adoption of the 10 Year Plan. Note that an Annual Plan is produced every year that the 10 Year Plan is not. 10 Year or Long Term Plan How Council will contribute to community outcomes through its activities, what it will do, how it will do it, how it will be paid for, how it will assess whether it has been successful (sets rates - Year 1). Council s Vision, Strategy and Council Outcomes Reviewed every three years Reviewed every six years Our Way Southland Outcomes Describes the sort of District that people want Annual Plan The budget and rates required for the year. Explains any differences from what was planned in the 10 Year Plan (sets rates-years 2 and 3). Annual Report Whether the Council did what it said it would do. What is the Annual Plan? 3

6 Vision, Mission and Guiding Principle ANNUAL PLAN 2013/2014 Vision, Mission and Guiding Principle 4

7 Our Way Southland Community Outcomes Since 2003, Southland s regional community outcomes have been identified and monitored by Our Way Southland. This project is now supported by Southland District Council, Environment Southland, and Gore District Council; and is a vehicle for local government to work together with government agencies, organisations and groups to improve community social, economic, environmental and cultural wellbeing. Our Way Southland reports to the Shared Services Forum, the collaborative arm of Southland s local authorities. Seven broad Our Way Southland community outcomes were identified in August 2005 as a result of extensive community consultation. The following seven major outcomes and associated intermediate outcomes are incorporated into the 10 Year Plans and Annual Plans as guiding principles to ensure that Southland s councils take the communities identified priorities and desired outcomes into account when setting programmes and activities. Outcome One: Southland is a great place to live 1.1 We value our history and heritage. 1.2 We have a choice of quality places to go and things to do. 1.3 We embrace and respect a diverse community. 1.4 We are proud to be Southlanders. 1.5 We live in a creative place. Outcome Two: A diverse economy built from our strengths for growth and prosperity 2.1 We have a quality infrastructure with potential for growth. 2.2 We have an innovative and vibrant culture that supports business. 2.3 We have a business friendly environment in which to operate. 2.4 We have an economy built on our competitive advantage. 2.5 We have full employment and rewarding careers. 2.6 We retain and build on our skills base. 2.7 We keep the things about living here that we value. Outcome Three: Safe places in a caring society that is free from crime 3.1 We have safe roads. 3.2 We have safe homes. 3.3 We have public places safe for children and families. 3.4 We apprehend and hold law breakers appropriately accountable. 3.5 We support the victims of crime. Outcome Four: We are healthy people 4.1 We are able to live healthy lifestyles. 4.2 We have good quality affordable housing. 4.3 We live in a compassionate caring community. 4.4 We have equity of access to health services. Outcome Five: Strong, effective leadership taking us into the future 5.1 Citizens and communities are inspired, motivated and empowered. 5.2 Decisions are progressive, forward looking and robust. 5.3 The community has confidence in its leaders. Outcome Six: A treasured environment which we care for and which supports us now and into the future 6.1 We have an informed community caring for the environment. 6.2 We have a healthy, safe and accessible built environment. 6.3 We have an environment protected from the negative effects of human activities. Outcome Seven: A well-educated and skilled community continually seeking further opportunities to learn 7.1 We have accessible learning opportunities. 7.2 We have high quality learning opportunities available to meet community needs and demands. 7.3 We deliver innovative, integrated and effective learning programmes. 7.4 We have a culture of continuous learning. Our Way Southland Community Outcomes 5

8 Our Way Southland ANNUAL PLAN 2013/2014 Our Way Southland is now a shared initiative between Southland District Council, Environment Southland and Gore District Council to facilitate community decision- report and regional quality of life survey, while key regional community issues are identifiedd by the triennial Our Way Southland Leaders Forum. making and action across the region. The current and future needs of Southland s communities are canvassed triennially by way of a regional outcome monitoring Our and Way Southland provides local government interfacee between communities and the central government, business and community sectors, promoting the efficient cost-effective delivery of good-quality local community infrastructure and local public services. At the 2012 Our Way Southland Leaders Forum, four themes were identified as being key issues for Southland communities: Economy, Employment and Youth - training and opportunities. Education and Parenting - especially the first 1,000 days (0-3 years). Leadership - particularly amongst those who stay in Southland. Support for Families - especially for those under stress. Our Way Southland will be drawing on these themes as it undertakes the following work programme: Monitoring The monitoring work for 2013/2014 includes the second Southland Quality of Life Survey which will ask Southlanders about their perceptions of their quality of life, their communities and their wellbeing. The findings of this survey will be compared to the base data collected for the 2010 Southland Quality of Life Report, to track changes in Southlanders perceptions of living in Southland between 2010 and Leadership The Leadership project enables communities to identify, promote and mentor current and future leaders, while enhancing community infrastructure and community resilience. From February 2013, leadership incubator courses will be held in Eastern Southland, Invercargill and Western Southland. The incubator short course enables participants to learn about the basics of leadership and develop confidencee in dealing with leadership challenges including governance and conflict management. Youth Youth and their parents/caregivers remains a separate work stream in the Strengthening Parenting in Southland project, while Our Way Southland works with existing youth-related initiatives across Southland to promote positive career and life outcomes for Southland s young adults through community involvement and action. Our Way Southland 6

9 4. Strengthening Parenting The Strengthening Parenting project is a collaboration with central and local government and the business and community sectors to produce a regional parenting strategy. At the heart of this strategy are the findings of consultation conducted in 2011 and 2012 with 24 agencies and 890 parents, children and young adults across Southland. Work in 2013/2014 involves co-ordinating workshops to enable the different sectors within Southland to explore how they can work together to strengthen parenting. A separate work stream from February 2013 is the compilation of a database of parent-support services within Southland, suitable for use by both the general public and agency users. 5. Community Liaison Our Way Southland will also continue to liaise with a number of regional community projects, including the Invercargill Multi-Agency Collaborative (IMAC); South Alive (South Invercargill Urban Rejuvenation Project); Volunteer South; the Gore Multi-Sector Youth Trials Project and Kindergartens South. Further information on Our Way Southland, including copies of the Outcomes Monitoring reports for 2009 and 2012, the Quality of Life report for 2010 and the Strengthening Parenting research for 2012, are all available on the Our Way Southland website: Our Way Southland 7

10 Key Issues and Projects Ongoing Support for Heritage Council will be increasing the Heritage rate by $4.00 (GST exclusive) per separately used or inhabited part of a rating unit (SUIP) to help with funding local museums and heritage centres throughout the District. While local museums and heritage centres can currently apply to the Southland Regional Heritage Committee for support for development and preservation projects, the extra funding would be available, upon application to the Council, to cover operational expenses. The new rate will be called a District Heritage rate. Te Hikoi will receive $12,000 rounded (GST exclusive) from the District Heritage rate for the 2013/2014 financial year. This is in addition to the $13,000 rounded (GST exclusive) annual grant that Te Hikoi receives from the Southland Regional Heritage Committee as it is considered to be a facility of regional significance. Council had initially planned, as set out in the 10 Year Plan , to increase the rate by $10.62 (GST exclusive) per property to allow some funding for the Southland Museum and Art Gallery redevelopment. However this was on the proviso that Invercargill City Council and Gore District Council were also participating. As this has not occurred Council will not proceed with the proposed increase in the Regional Heritage rate of $ Our Way Southland Our Way Southland is a regional initiative that aims to facilitate cross-sectoral community decision-making and action. The programme has been going since 2003 and there are a number of work streams including monitoring regional community outcomes, leadership, youth, parenting and community liaison. Further details are set out on page 5. Over the next year Council will continue to fund Our Way Southland and during that time a review will be carried out to consider the programme s future. Around the Mountain Cycle Trail The Around the Mountain Cycle Trail is planned to go from Walter Peak to Kingston (approximately 180 km in total). The project was the subject of a resource consent hearing in 2012 before an Independent Hearing Commissioner. The outcome was that a section of the preferred route was declined; however the project can still go ahead with an alternative route. A new funding agreement has been signed between the Ministry of Business Innovation and Employment and Council, clearing the way for construction of the trail to begin. Under the agreement, central government will contribute $4M with the remainder (up to a maximum of $4M) being funded by external funding and/or Council. The Council has the ability to terminate the project and according to the funding agreement prior to making the first claim from the Ministry if tenders received are higher than budgeted. The main objectives of the New Zealand Cycle Trail project are to: Generate short and long term economic benefits (including employment). Provide a high quality asset that offers a world class cycling experience and enhances New Zealand s competitiveness as a visitor destination. Maximise complementary benefits eg for health, the environment, commuters, the events sector; and Engage local communities. The trail is expected to offer considerable long term economic benefits to communities. The trail will be completed in two stages with construction of stage one expected to be completed by the end of October 2013 and stage two expected to be completed by the end of Water and Waste The Council will continue to work towards upgrading its treatment schemes to improve compliance with standards for schemes. In reviewing its Capital Renewal Programme, the Council is however faced with the issue of affordability of water and sewerage scheme improvements (particularly for the smaller schemes). Key Issues and Projects 8

11 Given that the Ministry of Health financial subsidies are no longer available, the Council will continue to carry out appropriate condition assessments to facilitate optimum timing of renewals. A new sewerage treatment and disposal system in Te Anau will be built to comply with resource consent conditions and meet future demand. This will be undertaken in a number of stages over 10 years. The design and some construction will be undertaken before the current consent expires in 2014 and then further work undertaken in 2021/2022, following expected population growth in Te Anau. The capital works will be funded via the district sewerage rate, and also funded by development contributions where population growth creates extra demand on the system. Venture Southland Venture Southland undertakes economic development, destinational marketing, community development and events for the Southland region. The Council provides an annual grant to Venture Southland for these activities. As Venture Southland has been in existence for 10 years, the Council recently undertook a review of its governance arrangements and consulted along with Invercargill City Council and Gore District Council on the option of restructuring Venture Southland as a Council Controlled Organisation (CCO). Having considered the submissions received, the Council, along with the other councils, has decided to continue with the current structure for the 2013/2014 year. Venture Southland s grant will not be inflation adjusted for 2013/2014 and therefore the amount set out in this plan differs from the amount in the 10 Year Plan. Stewart Island/Rakiura Visitor Levy The Stewart Island/Rakiura Visitor Levy is to help pay for infrastructure, services and amenities that are used by visitors. Due to an increasing number of visitors coming to the Island, including from cruise ships, significant pressure has been put on the Island s infrastructure. A visitor levy is seen as a fair and efficient way of ensuring the cost of visitors is not unfairly borne by residents and ratepayers alone. Parliament enacted legislation in 2012 that enables the Council to make a bylaw and collect a levy. The Council has passed a bylaw and is now in the process of implementing the levy and will start collecting the levy from 1 October The levy is $5.00 (GST inclusive). All visitors as defined under the legislation must pay. The levy scheme includes approved contractors who provide regular transport to the Island, collecting the levy on the Council s behalf. The Council will publish information explaining how the new levy system works in Representation Review In 2012 the Council consulted on its representation arrangements as part of a six yearly review. The Council released its final proposal in October The proposal consisted of a five ward option with multiple councillors for four of the wards, eight community boards and 19 community development area subcommittees (CDAs). Six appeals were received and in accordance with legislative requirements the Local Government Commission had to decide the District s representation arrangements. The Commission released its final decision on Southland s representation arrangements in April 2013 and upheld Council s proposal. Southland District will be divided into five Wards (Mararoa Waimea, Waiau Aparima, Winton Wallacetown, Waihopai Toetoes and Stewart Island/ Rakiura). Communities will still be represented by 12 Councillors and the Mayor; however there will be multiple Councillors in all wards except Stewart Island/Rakiura. Local communities will continue to be represented by community boards and the CDA subcommittees however the number of community boards has decreased from 12 to 8 (Stewart Island/Rakiura, Te Anau, Tuatapere, Riverton/Aparima, Otautau, Winton, Edendale- Wyndham and Wallacetown) and there will be 19 CDA subcommittees (Athol, Balfour, Browns, Centre Bush-Limehills, Colac Bay, Dipton, Garston, Gorge Road, Lumsden, Manapouri, Mossburn, Nightcaps, Ohai, Orepuki, Riversdale, Thornbury, Tokanui, Waikaia and Woodlands.) Key Issues and Projects 9

12 Local Government Reforms At the beginning of 2012, the government announced a plan for local government reform which will result in significant changes over the next few years. The Local Government Act 2002 Amendment Bill 2012 was passed and took effect from December One of the key changes is a new purpose statement for local government. Local government s new purpose is now to meet the current and future needs of communities for good-quality local infrastructure, local public services and performance of regulatory functions in a way that is most costeffective for households and businesses. Further changes to the framework for local government are expected in 2013/ The Council will continue to keep abreast of the further proposed changes and proactively participate to ensure Council s residents and ratepayers interests are represented. Local Body Elections Local Body Elections are held every three years, with the next election to be held on 12 October The election is for city and district councils, regional councils, district health boards and liquor licensing trusts. In the Southland District the elections will also include election of the Council s community board members. All elections are currently held by postal voting. The Council s new representations will be in place for the 2013 elections. The elections for the Council s CDA subcommittees will happen in the first half of District Plan Update Council s District Plan was open for public submissions in the early Further submissions were called for in May It is expected that the Council s Resource Management Committee will commence hearing submissions and finalise the District Plan in early Changes to Fees and Charges Some fees and charges have been revised for 2013/2014 as shown on page 206. Library The interloan charge will increase from $3.00 to $5.00 (GST inclusive) to reflect increased postage/courier costs. Stewart Island Electrical Supply Authority (SIESA) The pricing structure for SIESA electricity and line charges will increase from 1 July 2013 due to the increased costs of operating the scheme; predominantly fuel costs and the need to fund replacement of capital plant and equipment. Uniform Targeted Rate (UTR) The Uniform Targeted Rates are the rates that are charged as a fixed dollar amount per rating unit or SUIP. The Council intends to maintain the level of UTRs at a level that is similar to previous years. This year it will be 25.5% of the total rates charged. In order to maintain this level of UTRs, the Council has changed the fixed rate portion of the following three rates types: The Strategy Policy & Planning UTR will be increased from $14.13 to $19.63 (GST exclusive) per rating unit. The Waste Management UTR will be increased from $67.53 to $78.26 (GST exclusive) per rating unit. A UTR of $43.48 (GST exclusive) per rating unit will be introduced for Council Offices and District Support. Council has made savings in other UTRs and so the new District wide UTR is $ (GST exclusive), which is an increase of $24.05 (GST exclusive), from the 2012/2013 UTR of $ Roading The New Zealand Transport Agency (NZTA) has set a flat line cap to funding for meaning there is minimum allowance for inflation or growth regardless of cost increases or roading maintenance or renewal needs. In addition, the New Zealand Transport Agency has reduced the Financial Assistance Rate to the Council by 1%. In response to these fiscal constraints, this plan follows on from the approach set out in Council s 10 Year Plan which is to be proactive and strategic in its approach with a focus on improving value for money, increasing efficiency in service delivery and improving long term outcomes for the network. In 2013/2014 Council will continue to consult with residents and ratepayers about the challenges the District faces in sustaining the Council s roading network. Key Issues and Projects 10

13 Paying for Roads - Roading Rate Model Updated Sector Rating Unit Equivalents 2012 Share of Costs 2013 Share of Costs % Difference (2012 to 2013) % $ % $ Mining % 230, % 245, % Non-Dairy % 4,325, % 4,352, % Dairy % 3,921, % 4,413, % Forestry % 692, % 735, % Industrial 326.5* 4.00% 461, % 490, % Commercial % 288, % 306, % Lifestyle * 4.00% 461, % 490, % Residential * 9.00% 1,038, % 1,103, % Other % 115, % 122, % Total 15,518 11,533,931 12,259,455 *This data includes remissions and partial remissions which has resulted in half unit equivalents in the Residential and Other sectors. The mining and dairy sectors have experienced an increase in tonnage. Although tonnage for the forestry sector has remained the same for this update, large blocks of forestry across the District will reach maturity and become available for harvest in the near future. The table outlines the share of costs for 2013/2014. The 'other' sector continues to pay a 1.0% cost share because it includes a number of not-for-profit organisations. The 'residential' share is to pay a 9.0% cost share allowing for unquantified heavy vehicle movement and reflecting the overall benefit this sector gains from the roading network. The 'non-dairy sector' has been rounded to pay a 35.5% share of costs. The forestry sector share of costs has been adjusted to 6.0%. This is because of the harvesting activity in the near future which will have a high impact on the roading network. The 'dairy' sector has been allocated a 36.0% share of costs due the increase in tonnage. This adjustment means that the dairy sector is more closely aligned to model outcomes. The 'commercial', 'industrial' and lifestyle sectors are to pay cost shares as derived from the model. Costs shares are rounded to half percents rather than whole percents because some cost share changes are quite small, but could result in significant variation in individual rates from one year to the next. Key Issues and Projects 11

14 Financial Overview The purpose of the Financial Overview is to provide a summary of how Council deals with its finances. It highlights the key financial issues and also informs readers of where Council receives its money from and how that money is spent and applied. What income does Council receive? Sources of Revenue for 2013/2014 Rates Revenue 61% Grants and Subsidies 4% NZ Transport Agency 21% Other Revenue 13% Other Gains/(Losses) 1% Sources of Revenue Council receives its revenue from a variety of sources. Council expects to receive total revenue of $64.5M for the 2013/2014 financial year. As the graph to the left shows, rates makes up $39.5M (61% of total revenue), New Zealand Transport Agency Roading Assistance $13.4M (21% of total revenue) and other revenue $8.0M (13% of total revenue). Included in other revenue are fees and charges received for services, such as consent fees, development and financial contributions, forestry income as well as interest and dividends Council receives from its investments. Grants and donations include $1.5M for the Around the Mountain Cycle Trail, a project which is anticipated to be complete in 2015/2016 year. Where Council spends its money Council undertakes a number of activities. Each activity has a budget detailing how much can be spent. The main activities and the amounts spent are set out below. Council s finances often refer to capital and operating expenditure. Capital expenditure is the expenditure which occurs to build long life infrastructure and assets, such as roads, water and sewerage treatment plants. It also includes major expenditure to upgrade or improve these assets. Operating expenditure refers to day-to-day expenditure Council incurs as part of providing its services and maintaining its assets. Examples of operating expenditure include wages and salaries paid to employees, payments for electricity, telephone accounts, insurance, stationery and repairs and maintenance to the Council s assets. The Council has updated the budgets associated with its activities based on the levels of service it believes the community want to be provided with, as well as a number of assumptions about the future. The result is a forecast of projected expenditure to carry out its activities along with the capital expenditure required to invest in either new infrastructure or major upgrades of existing infrastructure. Much of what the Council proposes to do was set out in its 10 Year Plan. While there are some changes from what was set out in the 10 Year Plan, these are not significant and there is no proposed reduction in the Council s intended level of service across its various activities. The changes are principally in regard to deferring infrastructural work on the basis that it is not required to be undertaken as soon as originally thought. This deferral is consistent with Council s Just in Time approach to infrastructure upgrades as set out in its Financial Strategy. Financial Overview 12

15 Financially, this plan continues the theme of investment in infrastructure with capital expenditure for the 2013/2014 year forecast to be $25M. This plan will see the renewal of key infrastructure assets, many of which are ageing as well as improvements to infrastructure to provide a better level of service. In considering affordability, Council has been mindful that capital works and the borrowing required as a result, will increase costs, but this infrastructure is important for the continued operation of the District. Given that these assets last for a long time and require ongoing maintenance and renewal, Council needs to ensure that it is managing this appropriately now so that these do not end up costing more in the future because of any deferred maintenance. After considering the most cost effective means of delivering its infrastructure Council has reviewed the capital works programme with some costs originally planned being either deleted or deferred to a time when more information on the asset condition are known. Roading and Transport (including footpaths, street lighting and street works) Roading and Transport is the activity which takes up the majority of Council s spending - estimated to be 71% of overall capital expenditure and 44% of operating expenditure in 2013/2014 (see the graphs below). The Roading and Transport Activity Statement on page 78 sets out the programme of maintenance and renewal of the existing infrastructure. Over the last five years the roading activity has used internal reserves to help keep rates at an affordable level. In addition to this, Council has also faced external pressure from the government cutting its funding contribution by 1%. The effect is that the funding assistance is not keeping up with the cost increases Council is experiencing in maintaining its roading network. Council s focus is to keep rates at an affordable level as well as reduce the level of debt required to fund the roading services. Therefore Council intends, as set out in its LTP, to hold expenditure for the current year at a level consistent with last year to minimise rate increases and reliance on debt. As set out in its Roading activity, this will mean levels of service will need to be reviewed. Council expects there to be future financial pressure on its roading budget associated with increased petroleum costs, shortage of skilled resources and plant demand due to the Christchurch rebuild and increased commercial activity, all of which will continue to place pressure on the levels of service it delivers in roading. Water, Sewerage and Stormwater Capital Expenditure by Activity for 2013/2014 Water, Sewerage & Stormwater 21% Other District 5% Roading & Transport 71% Other Local 2% Regulatory Services 1% Representation & Advocacy 0% Operating Expenditure (incl depn) by Activity for 2013/2014 Water, Sewerage & Stormwater 12% Roading & Transport 44% Grants & Donations 6% Other District 21% Other Local 5% Regulatory Services 6% Representation & Advocacy 6% Water, sewerage and stormwater is the second largest activity of Council and estimated to consume 21% of overall capital expenditure and 12% of operating expenditure in the 2013/2014 financial year. The sewerage, stormwater and water supply activity statements on pages 88, 101 and, 110 respectively set out the planned maintenance of all infrastructure, as well as planned renewals and increases in levels of service for existing infrastructure. This expenditure is considered necessary to ensure a healthy community. In accordance with the 10 Year Plan, Council rates for this expenditure by way of a consistent charge for water and sewerage for ratepayers across the District connected or able to be connected to a Council scheme. Financial Overview 13

16 Other Local Expenditure Local expenditure represents costs associated with running local communities, including cemeteries, community centres and parks and reserves. The programme of operating and capital expenditure for local communities reflects each area s local priority whether it be playgrounds, cemetery maintenance and upgrades, or parks and reserves projects. Each activity section contains details of the projects planned for the various areas in the next 10 years. The graphs on the previous page show the amount of operational and capital expenditure planned for the 2013/2014 year. These local costs are generally funded from rates paid by ratepayers within the community rating boundary. Other District Expenditure Other District expenditure includes activities associated with the District such as Community Housing, District Support, Library Services, Solid Waste Management, Public Conveniences and Corporate Services. Generally, expenditure in these areas remains relatively constant with inflation allowances causing a change over the 10 year period. Rates Collection by Activity for 2013/2014 Water, Sewerage & Stormwater 16% Roading & Transport 33% Grants & Donations 9% Other District 22% Other Local 6% Regulatory Services Representation 5% & Advocacy 9% $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Rates Increases 2010/11 Actual 2011/12 Actual 2012/13 Actual 2013/14 LTP budget District Rates Local Rates Service Rates 2013/14 Annual Plan budget Rates Increase In its 10 Year Plan, Council indicated the annual rates increase for the 2013/2014 year would be 5.11%. In light of the current economic environment and Council s concern around affordability, this Annual Plan proposes a total District rate increase of 4.25% for the 2013/2014 financial year. This rate increase is in accordance with Council s financial strategy of rates not being more than the Local Government Cost Index (LGCI) plus 2.5%. The LGCI for 2013/2014 is projected to be 3.07%, therefore Council s self-imposed rates increase limit would be 5.57% (2.5% %). The key contributors to the increase in rates in this Annual Plan are: Increases in the LGCI that is the cost of goods and services Council purchases to undertake its activities. A contribution of $160,000 (GST exclusive) towards the initial costs associated with the Around the Mountain Cycle Trail. Inclusion of $4.00 per SUIP (GST exclusive) to fund District heritage activities. The key contributors to the decrease in rates for 2013/2014 year from the 10 Year Plan are: Cost savings identified in Council s operating activities. Removal of $10.62 (GST exclusive) per rates assessment increase in the Regional Heritage Rate. The increase in District and local rates, at a total level, over the period of the plan can be seen in the rates increases graph above. Rates on your own property will vary depending on where you live, the local projects being funded and the services you receive. Further details on the annual rates increase can be found in the Funding Impact Statement on page Financial Overview 14

17 Overview of Submissions The community must be consulted when developing and adopting an Annual Plan. A Statement of Proposal (incorporating Southland District Council s Draft Annual Plan 2013/2014) was considered and approved by Council at an extraordinary meeting on 27 March It was then made available for public consultation during the period from 27 March to 1 May The Draft Annual Plan was advertised by newspaper and radio, posters were put up in all the Council area offices/libraries and a summary of the Draft Plan was distributed to all households in the District and posted to non-residential ratepayers. In addition, just over 200 copies of the full Draft Annual Plan were distributed to other local authorities, public libraries, and interested organisations and individuals who requested these. Both the summary and full draft document contained a freepost submission form. Some consultation was undertaken prior and after the adoption of the Draft Annual Plan including consultation with community boards and community development area subcommittees. Te Ao Mārama Incorporated has participated in the development of the Annual Plan in partnership with the Council by attending key meetings. Responses to the Draft Annual Plan A total of 93 submissions were received on the Draft Annual Plan. The topics/proposals which were submitted on are listed below (note: These do not add up to 93 as submitters can submit on more than on topic). Submissions received were on the following topics: Around the Mountain Cycle Trail (6) Attendance at Events (1) Biodiversity Co-ordinator Role (1) Change of Street Name (2) Code of Compliance (1) Council Facilities (2) Dairying (1) Dangerous Intersections (1) Development Contributions (1) Enviroschools Programme (1) Financial Information (1) Grants and Donations (5) Gravel Extraction (1) Heritage Funding (10) High Value Area Programme (1) Joint Promotion and Marketing (1) Management of Sport and Recreational Assets (1) Manapouri Commemorative Rock (1) Milford Community Trust (1) Our Way Southland (14) Parks and Reserves (1) Pest Traps (1) Port William Jetty (1) Public Toilets (5) Resource Management (1) Roading Rate Model (1) Roading Financial Assistance Rate (1) Rates Increase (8) Regional Sport and Recreation Advisory Group (1) Roading (8) School Holiday Programmes (1) Sewerage (6) SIESA Charge Increase (29) Skin Piercing (1) Smokefree (1) Solid Waste (1) Southern Coastal Heritage Project (1) Stewart Island Coastal Clean Up (1) Stewart Island Visitor Levy (1) Stormwater Consents (2) Summary Document (1) Te Anau Airport (4) Te Anau Pool (6) Traffic Management (1) Tree Heights (1) Tuatapere Main Street Clean up (1) Tuatapere Swimming Pool Rate (11) Uniform Targeted Rate, Green Waste in Te Anau (1) Venture Southland Restructuring (9) Water Supply (2) Water Tanks (1) Overview of Submissions 15

18 Register and Acknowledgement of Submitters K G Davidson Wayne Dawson Real Journeys Riverton Heritage & Tourism Centre Trust Awarua Communications Museum Enviroschools Foundation Sport Southland Te Anau Community Board Stewart Fleck David North Landcare Trust Alan Petrie Waikawa and Districts Museum Inc Dean Karauria Anthony Turner Derek Angus Diana Zadravec Gillian Brock Southern REAP Louise Faithful Southern Primary Health Organisation Southland District Health Board Te Anau Golden Age Lex and Shirley Mouat Manapouri Community Development Subcommittee Iris Everett Shirley Paterson Christopher T Shaw Federated Farmers of New Zealand Charles Robinson New Zealand Farm Forestry Association Patsy and Bill Gordon Colin and Anne Brown Bryan Barnes Neil Fox SDC Staff Vicki Coats Helen Bissland Jo and Andy Riksem Elaine and Bill Hamilton Alan Magee Mrs B M Cowie William Francis Doherty William J Watt D R Dunckley Stewart Island Community Board Bryan Cronin Loraine and Herbie Hansen G C Bunce W G Todd Beverley Osborn Ian Munro Keith Bartlett Philip and Jocelyn Sanford Cr Bruce Ford Susan Ford Lynn McPherson Sue Bennett Jim Andrews G Okey Ian Harrison Margaret Fairhall Anita Geeson G J and Z G Burgess Garry E Neave Environment Southland Joyce Kolk - (Wairaurahiri Jet - Owner/Operator South West Endangered Species Trust and Fiordland Coastal Clean Up) Brendan Meffan Dr Elizabeth Scott Fiordland Community Swimming Pool Association Fiordland Swimming Club Janice Templeton Isobel Green Waiau Area School Waiau Swimming Club Tuatapere District Lions Club Inc. Peter Ashcroft Justin Lewis Richard Bennett Tuatapere Community Swimming Baths Society Diana Zadravec Tuatapere & District Promotion Inc. Simon Pearce Patrick Killeen Physicians & Scientists for Global Responsibility Charitable Trust Rob Turner Andrew M Sellars E G and A D King Overview of Submissions 16

19 Submission hearings were held in the Invercargill office on 27 May 2013 with submitters speaking to 20 separate submissions. On 28 May Council considered and deliberated on all the submissions. At this meeting Council made some key decisions and suggested amendments as a direct result of submissions, in addition to minor wording and number changes in the document. All amendments to the Annual Plan were confirmed at a meeting of Council on 26 June 2013, where the Annual Plan was adopted. Each submitter receives a letter outlining any changes made to the Plan as a result of their submission. An overview of submissions and amendments are set out below. MAIN TOPICS SIESA Electricity Price Increase Twenty nine submissions were received on this topic with all 29 against the proposed price increase. The main reasons given by submitters were that it cost too much, especially for the elderly and young families. Some submitters suggested a more staged approach and questioned the process for deciding the level of the increase. Submitters also questioned the split between the commercial and residential consumers. Some suggested an option of a low usage residential rate for holiday home owners. There was also a concern that the price increase could potentially lead to many customers going back to home generators. After considering the submissions, Council decided to amend and reduce the initially proposed price increase in the SIESA uniform annual charge (which is the monthly tariff) to $85.00 per month (including GST) for residential and commercial non domestic consumers, the unit charge to cents and the night rate to cents. For commercial consumers the uniform annual charge (monthly tariff) would be $ per month, the unit charge would be cents and the night rate cents. Council s decision to increase the uniform annual charge recognised the need to fund the replacement of capital plant and equipment and ensure sufficient funding of its operations to breakeven financially. Our Way Southland 14 submissions were received on this topic. Six supported the continuing of the Our Way Southland initiative, seven were opposed and one submitter made a comment on it. Those in support said that the initiative aided regional community collaboration and one submitter supported with a condition that surveys are done only every five years. Seven submissions opposed the continuation of Our Way Southland because they did not think the benefits outweighed the costs or that other organisations are doing or could do the work. After considering the submissions, Council agreed to fund the initiative for a further 12 months, with a review to occur in the first six months. Fiordland Pool Rate Of the six submissions received on this topic, five supported the increase in the pool rate and one submission was in regards to a correction to the Summary Document. After considering the submissions, Council agreed to increase the Fiordland pool rate to $15.00 (excluding GST) per separately used or inhabited part (SUIP). Tuatapere Pool Rate Eleven submissions were received on the topic, and all submissions supported the introduction of the proposed pool rate for Tuatapere. A variety of reasons were provided including; benefits from using the pool as a sporting venue, for health and fitness needs, that teaching children to swim is an important skill and the pool is a valued community asset. Overview of Submissions 17

20 After considering the submissions, Council resolved to create a Tuatapere Ward Pool rate of $13.04 (excluding GST) to fund the three pools in the Ward boundary. Heritage Funding A total of 10 submissions were received on this topic and all supported the Heritage rate increase to fund smaller museums within the District. Additionally, six specifically mentioned Te Hikoi. Waikawa & Districts Museum submitted a request to consider allocating an annual grant for operational funding in the future but figures were not available at the time of submission. After considering the submissions, District Heritage Rate - Council decided to create a District Heritage rate of $4.00 (GST exclusive) to be administered by the Allocations Committee with the criteria for applications to be confirmed. Te Hikoi - Council agreed to grant Te Hikoi (Riverton Heritage and Tourist Centre Trust) operational funding of $12, rounded (GST exclusive) from the District Heritage Fund. Venture Southland Restructuring Proposal Nine submissions were received on the topic; six were opposed to the restructure. Those in opposition commented on the lack of transparency, accountability and control. There were also concerns about the levels of service and financial implications. One submitter supported the proposal and two commented but did not state a view. After considering the submissions, Council agreed that the governance structure of Venture Southland remain as a joint committee of Council. Council also agreed to remove the inflation adjustment to its funding of Venture Southland. ROADING The topics can be broken down into maintenance issues, the roading rate model, Around the Mountain Cycle Trail, traffic management, changing of a street name and funding. One submitter requested that more money be spent on upgrading gravel roads. One submitter commented adversely on the quality of road contractors, one submitter commented on Tuatapere Main Street needing an upgrade, one submitter commented with concern on roading maintenance safety, one submitter commented that they want the Council to be responsible for dust suppression on Roslyn Road. Two submitters wanted changes to the roading rate model with one suggesting further lobbying to government on further funding and one submitter wanted to change gravel extraction from rivers to land. Of the six submissions on the Around the Mountain Cycle Trail received on this topic, three were in support of the trail and three were opposed. Those who were opposed were concerned about the cost and maintenance. After considering the submissions, Council decided to retain the percentage share of costs that were proposed in the Draft Annual Plan, as it believed it is a fair representation of each sector s use and impact on the District s roading network. GRANTS AND DONATIONS Five submitters commented on grants and donations with three supporting one opposing and one commenting. Several grants that were budgeted for in the draft plan were approved including: Enviroschools Programme - After considering submissions, a Council grant of $10,000 will go to the Enviroschools Programme as budgeted for in the Draft Annual Plan. High Value Area Programme - After considering submissions it was decided that Council grant $15,000 to the high value areas programme as budgeted for in the Draft Annual Plan. Council indicated that ongoing future funding is not guaranteed and would be subject to appropriate reporting back on progress and key outcomes achieved. Biodiversity Co-ordinator Role - One submitter commented in support on the Southland District Council funding for the Landcare Trust Biodiversity Co-ordinator role which is co-ordinated through Environment Southland. After considering submissions it was decided that Council grant $10,000 funding support for the Biodiversity Southland Co-ordinator role as budgeted for in the Draft Annual Plan. Overview of Submissions 18

21 Council indicated that ongoing future funding is not guaranteed and would be subject to appropriate reporting back on progress and key outcomes achieved. Other requests were made that were not budgeted for included: Awarua Communications - Council decided that a letter should be sent to the Awarua Communications advising it that funding may be available through the Allocations Committee. PARKS AND RESERVES One submitter commented that Council should implement a Smokefree Outdoor Spaces Policy. One submitter supported Southland District Council s parks and reserves as they are providing a supportive environment for healthy lifestyle changes. One submitter suggested Southland District Council provide pest traps to properties within the Southland region. Sport Southland suggested: A more joint marketing and promotion with Southland District Council. A more joint approach to the management to Sports and Recreation assets. Creating a regional Sport and Recreation Advisory Group. The creation of a regional Sport and Recreation Organisation Forum. Council considered the submissions and commented that in relation to the Smokefree Policy request that a draft is expected to be completed in 2014 which would then go out for public consultation. RESOURCE MANAGEMENT Resource Management - one submitter commented on the potential environmental effects of genetic modification, the spreading of wilding pines and nanotechnology. Dairying - one submitter opposed dairying in the Te Anau Basin. Council noted all submitters comments and commented in relation to dairying that any land use changes would go through Environment Southland s resource consent processes. LOCAL ISSUES Tuatapere Main Street Clean Up - One submitter suggested a clean up of the main street of Tuatapere. Manapouri Commemorative Rock - One submitter commented in support of funding an upgrade of the Manapouri Commemorative Rock. Milford Community Trust - One submitter commented about concerns relating to Milford Community Trust overheads. Port William Jetty - One submitter supported the revised timetable for the upgrade of the Port William Jetty. Public Toilets - Five submitters commented on proposed upgrades to public toilets, three supported the upgrades to the toilets, one opposed on the basis of cost and one commented on the toilets. Stewart Island Coastal Clean Up - One submitter requested support for their coastal clean up project of the west coast of Stewart Island. The submitter clarified during her verbal submission that she did not require funding from Council (she would ask Environment Southland or alternative organisations for funding) but would appreciate similar assistance from Council as to when the Fiordland coastal clean up occurred. Southern Coastal Heritage Project (SCHIP) - One submitter supported the Coastal Heritage Project and requests that Council continue to contribute to the project until the completion of the SCHIP action plan and strategic overview (2016/2017) year. Stewart Island Visitor Levy - Staff requested an addition to the plan to advise a potential implementation budget of $17,000 from the expected annual income of $160,000 for set up costs of the levy. Te Anau Airport - Four submissions were received on this topic. One submitter opposed the airport rate, one commented that the rate should drop and suggested selling land surrounding airport to reduce the rate, one submitter supported maintaining the rate, and one submitter commented on the cost of upgrading the airport. Attendance at Events - One submitter thanked Southland District Council Councillors for attending and supporting events such as the Sports New Zealand Roadshow. Development Contributions - One submitter questioned why development contributions were only in Te Anau. Council explained that only areas with projected population growth were subject to development contributions. Te Anau is the only urban area identified with estimated population growth and that is why it was charged for development contributions in relation to water and sewerage. Overview of Submissions 19

22 Council asked that all the submitters comments be passed on to the appropriate community board for future consideration. WATER AND WASTE Water Supply - Two submitters commented on the water supply with one submitter commenting on the cost and service level and the other submitter supporting Southland District Council s approach to funding upgrades to community water supply schemes and supporting Southland District Council and Environment Southland and other organisations collaborative approach to strategic consideration for sustainable water resources. They went on to comment that they support community water fluoridation and encouraged Council to consider providing this in the larger communities in the Southland District. Green Waste - One submitter commented on the cost of the greenwaste charges in Te Anau. Water Tanks - One submitter commented on water tanks and suggested that all building permits have a requirement that tanks are provided to collect rainwater from roofs. Dangerous T Intersections - One submitter commented on dangerous intersections within the District. Stormwater Consents - One submitter supported Council s plans to obtain resource consents for its urban stormwater systems to ensure compliance. One submitter commented on not having 100% compliance. Solid Waste - One submitter supported Council s approach to managing closed landfills. Sewerage - Six submitters commented about sewerage schemes. Four mentioned Te Anau specifically; one talked about Winton and one was a general comment. Council considered the submissions and noted the submitters comments. In relation to the intersections, Council commented that it constantly monitors any high risk areas. OTHER TOPICS Other topics that were commented on in submissions included: Code of Compliance regulations. One submitter commented on Code of Compliance regulations. One submitter suggested on having tree heights in line with building height restrictions. One submitter was in support of Council considering introducing a Skin Piercing Bylaw in partnership with Invercargill City Council. Two submissions were received in support of Council facilities. One submitter suggested promoting the removal of gravel from rivers rather than land based gravel extraction. Sport Southland suggested more joint approach to school holiday programmes within the District. RATES Rates Increases - Of the eight submissions received on this topic all submitters opposed an increase in rates. After considering the submissions, Council confirmed that the District rate increase of 4.25%. Overview of Submissions 20

23 Guide to Activities ANNUAL PLAN 2013/2014 This section sets out the 26 activities that the Council undertakes and looks in more detail at what services it provides and why. It details what level of service will be provided and how this will be measured as well as some of the key issues related to the activity. It also includes details of projects (operational or capital) which are planned and explains any variations from what was planned for the 2013/2014 year in the 10 Year Plan. Lastly it details how much the activities will cost and how it will be funded. Guide to Activities 21

24 Building Control Aim - To provide a safe built environment for the community through the effective implementation of the Building Act. What we do The Building Control activity involves the regulation of building work through processing and issuing consents, carrying out inspections and certifying work to ensure that buildings are safe and sanitary. The activity also involves inspections of amusement devices to ensure they have appropriate barriers and are sited safely. In 2007 Council became an accredited Building Consent Authority and, to remain accredited, the Council is regularly externally audited in terms of its processes and competencies. Why we do it Building Control primarily contributes to the Council s outcome of supporting our communities. Building consents and inspections ensure new buildings and building work is in accordance with the Building Code so that they are safe, do not endanger public health and have appropriate facilities for their intended use. The activity also contributes to this outcome by ensuring appropriate provisions are made to enable people to escape in the event of fire. What are the key issues for the activity? Legislative Changes - The Building Control activity is influenced by changes in legislation. Currently there are legislative changes proposed under the Building Act review which could reduce Council s input into building consent processing and inspections for low risk buildings such as farm buildings and garages. This would reduce the work required and income from building consents, given that 20-25% of the building consent activity relates to lower risk farm buildings. This has not been reflected in the budget at this stage due to the exact timing and cost is unknown. Funding of the Building Control Activity - Currently the Building Control activity is funded 80% from users and 20% from ratepayers recognising that a significant amount of work undertaken by the department has a public good element and is not related to new building work, such as addressing dangerous and insanitary buildings. The Council may consider a staged reduction in public good funding from rates in the future. Southland District Council Earthquake-prone Building Policy - This policy was reviewed and adopted during May This revised policy established timeframes for earthquake strengthening for buildings identified as potentially earthquake-prone or where engineering assessment has confirmed the building does not meet 34% of the current Building Code structural requirements. The timeframes for strengthening buildings identified as potentially earthquake-prone was introduced from 1 July The Council s register has approximately 105 buildings (nine of which are Council owned) within the District classified as potentially earthquake-prone (and these will need to be strengthened within a 15 to 30 year timeframe depending on their use). The cost of upgrading these buildings will be borne by their owners. The Royal Commission has reported to government with their recommendation. Submissions on the recommendations closed with the Ministry of Business Innovation and Employment on 8 March The Ministry is to report back to government with its recommendations which will be considered to bring about legislative change regarding earthquake-prone buildings. This is not expected to happen until late Building Control 22

25 Contributions to Riskpool - Riskpool is a mutual liability fund created by New Zealand local authorities to provide professional indemnity and public liability protection for councils and CCO. The Southland District Council, along with other councils throughout New Zealand, has had requests from Riskpool to cover the overall costs of the leaky building issue nationally. Indications from Riskpool are that these types of requests will continue for at least for the next few years of around $50,000 (GST exclusive) per annum. The Council currently has no active leaky building claims; although the situation could potentially occur at any time. The Riskpool initiative shares the numerous potential risks that apply across the local government environment, thereby limiting exposure of individual councils. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are two changes to the level of service for this activity for 2013/2014. The Key Performance Indicator (KPI) percentage of final inspections completed or alternate inspection date agreed upon within 20 working days target changed from 95% in 2012/2013 to 98% in 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Responsiveness. Process applications lodged under the Building Act within the timeframes specified within the Act. Responsiveness. Undertake inspections in a timely manner. Responsiveness. Appropriate and timely guidance is provided regarding Building Control matters as requested by customers. Quality Ensure that building work complies with the Building Code to ensure communities are safe. Quality Workplaces and public buildings having life safety compliance schedule features maintained in safe work condition. Note: That the targets above are the same for the next 10 years. Percentage of building consents, Project Information Memoranda (PIMs), Land Information Memoranda (LIMs) and Certificate of Acceptance (COA) applications processed within statutory timeframes. 1&2 Percentage of final inspections completed or alternate inspection date agreed upon within 20 working days of Form 6 entered. 2 Target 13/14 99% 98% Pathway. Measurement Source 96% 98% Form 232 Applications for CCC. Percentage of applicants satisfied with the service provided. Not measured. 80% Two yearly user survey. Number of proven liability claims against Council. New measure. 0 Form Insurance Notification Claim Register. Number of buildings having a compliance schedule. (Undertake a 10% audit). New measure. 10% Form 228 CS Audit Register. Building Control 23

26 Who benefits from the activity and how is it funded? These benefits are distributed between individual building owners, potential purchasers and all members of the community (who are assured that buildings are constructed to a recognised standard). Those involved in construction and renovation create the need for this activity. Council estimates that 80% of the benefit from this activity accrues to private individuals and businesses, the majority of which is funded through user charges. Unfortunately, not all activities with private benefit are recoverable under the Building Act Therefore 20% - 25% of the cost of this activity is funded through the Building Regulation rate levied district-wide. Capital costs for this activity are limited to the usual overheads - office buildings, vehicles and equipment - and are funded through accumulated depreciation (vehicles only). What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Building Control 24

27 What does it cost? - Funding Impact Statement Building Control LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply 1,055 1,089 1,073 Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 1,511 1,556 1,552 Applications of operating funding Payments to staff and suppliers 1,179 1,217 1,232 Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 1,471 1,513 1,514 Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt (9) (9) (10) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding (1) (3) (4) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (40) (43) (38) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Building Control 25

28 Cemeteries Aim: To provide burial facilities that meet the needs of the community. What we do The Cemeteries activity involves providing burial and interment facilities for the 21 cemeteries administered by the Council. The activity also involves ensuring interments are carried out to an acceptable standard and that the cemetery grounds are maintained and accurate records of interments are kept. Why we do it Cemeteries primarily contribute to the Council s outcome of supporting our communities. The activity contributes to this outcome by providing appropriate facilities where family and friends can remember others, as well as providing a record of a community s history and heritage for people interested in their ancestry. The activity also protects public health by providing suitable facilities for interments. What are the key issues for the activity? In the 10 Year Plan there are projected population increases in Winton and Te Anau which will increase demand on these cemeteries, however overall all cemeteries have sufficient space for long term needs. Council is exploring options for an electronic management system for the activity. It is anticipated that this will improve efficiencies and make information more readily available to the public and interested parties such as genealogists. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: We are healthy people (4) Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality Cemeteries are maintained to a standard acceptable to the public Quality Cemeteries are maintained to a standard acceptable to the public Percentage of community satisfied with the appearance of cemeteries. Percentage of cemeteries where lawns are mown as specified in maintenance contracts. 90% - not measured as survey undertaken every three years. Target 13/14 Measurement Source 90% Three Yearly Residents Survey. 100%. 100% Annual inspections. Cemeteries 26

29 Who benefits from the activity and how is it funded? The estate and family of deceased persons, residents and the public at large benefit from the provision of cemeteries. Council s funding policy is that the direct costs of burial, including plot preparation and staff administration are recovered through interment fees while the maintenance of cemeteries, such as mowing, is funded from local rates. Capital costs (largely limited to land acquisitions) may be funded from reserves, or loans that are, in turn, funded from local rates. The reason for this is because the benefits of individual burials largely accrue to the deceased s estate, therefore it is appropriate that these direct costs are funded by that estate. However, there is benefit to the local area in a well maintained cemetery, both in terms of maintaining its historical value and amenity values. Therefore the maintenance costs are funded by the local community. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Cemeteries 27

30 What does it cost? - Funding Impact Statement Cemeteries LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding - (2) (4) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Cemeteries 28

31 Civil Defence Emergency Management Aim - To enhance Southland s ability to reduce risk, respond to and quickly recover from an emergency event. What we do Civil Defence Emergency Management focuses on ensuring that communities are prepared for emergencies and that they are able to respond to and recover from these when they do happen. Specific actions include public education and ensuring a pool of trained personnel. The activity also involves reducing the potential risks which may occur to people and property through lifelines planning and monitoring and planning for the uncertainty of climate change. The activity is delivered through Emergency Management Southland (EMS), which is a shared service between Southland District Council, Environment Southland, Invercargill City Council and Gore District Council. Why we do it Civil Defence Emergency Management primarily contributes to the Council s outcome of supporting our communities. The activity contributes to this outcome by helping people to prepare for emergencies and building their capacity to effectively respond to and recover quickly from these events. Council also has systems and processes in place to help co-ordinate and restore a safe, healthy and accessible built environment. What are the key issues for the activity? There has been an increase in the number of residents prepared for an emergency in the last year; the impact of the Canterbury earthquakes may possibly be the catalyst for this. However there is still room for improvement. In the event of a major emergency, it is highly likely that people will need to be able to cope independently for at least three days before help arrives. It has also been identified that tsunamis are a potential risk to Southland which is a new challenge and ongoing public education is underway to improve public knowledge on Southland s major hazards. The activity also relies on volunteers and these resources are becoming more difficult to find. EMS is looking at ways to improve retention of staff for civil defence by tapping into existing structures such as Lions Clubs, Rural Fire and through support to organisations such as the Southland Rural Support Trust. Climate change continues to be a topical issue and Council needs to be prepared for the impacts that it may bring. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. The KPI Percentage of residents who have a plan for coping with a civil defence emergency target changed from 50% in 2012/2013 to 55% in 2013/2014. Civil Defence Emergency Management 29

32 Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Responsiveness Enhancing the community s capability to respond to and recover from Civil Defence emergencies. Readiness Increasing community awareness, understanding and preparedness and participation in Civil Defence Emergency Management. Note: That the targets above are the same for the next 10 years. Number of Council staff who undertake annual Civil Defence training. Target 13/14 Measurement Source Training register. Number of sectors who have completed bi-annual exercise Training register. Number of public education activities delivered to residents, schools and interest groups. Percentage of residents who have a plan for coping with a Civil Defence emergency Reports to Executive Group. 41% 55% EMS survey resident. Who benefits from the activity and how is it funded? Benefits are distributed between those affected by the emergency, ratepayers and the public in general whose assets may be protected or reinstated. The activity should be 100% funded through the Civil Defence and Rural Fire rate levied on land value, district-wide, with input from government funding where applicable and cost recoveries if feasible. Capital costs for this activity are limited to the usual overheads - office buildings, vehicles and equipment - and are funded through accumulated depreciation (vehicles only). What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Civil Defence Emergency Management 30

33 What does it cost? - Funding Impact Statement Civil Defence and Emergency Management LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt (20) (21) (21) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding (20) (21) (21) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (20) (21) (21) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Civil Defence Emergency Management 31

34 Community Centres Aim - To provide accessible facilities for communities, clubs, organisations and individuals to enjoy for sporting, social, cultural, educational and recreational pursuits. What we do The Council provides 32 individual community centres in the District for use by community groups and individuals. The operation of these halls is generally carried out by individual hall committees, community boards or community development area (CDA) subcommittees. These groups manage bookings and use of the halls and work with Southland District Council Property staff regarding maintenance of the buildings involved. Why we do it The Community Centres activity primarily contributes to the Council s outcome of supporting our communities. The activity contributes to this outcome by providing accessible facilities for clubs, organisations and individuals to enjoy sporting, social, cultural, educational and recreational pursuits. Community centres also provide safe public places for children and families and contribute to community pride as they form a physical heart of a community. This activity is limited to the Council owned and provided facilities, however there are also numerous non-council trusts or incorporated societies undertaking the same activity within the District. What are the key issues for the activity? Over the past few years Council has carried out detailed condition assessments of all its Community Centres to better identify ongoing maintenance and renewal requirements. This information has helped inform the programme of projects and budgets over the next 10 years. The Council is aware that the inclusion of capital or maintenance projects in the financial forecasts may put pressure on the sustainability of some of these facilities, particularly those which are not frequently used and income is only enough to cover the operations of the hall. The Council is consulting with its community boards and committees to discuss the future cost implications of the condition assessment results and the future viability of each centre with the intent that the larger projects which are likely to have an effect on rates and which are agreed with the community boards and committees will be included in the next 10 Year Plan. There are two centres which have been identified to be in a poor condition - Otautau which is currently closed and actions are underway to allow for the possible disposal of this facility. Edendale is an old hall with limited use and some seismic issues. The community is still considering options for either a new facility, an upgrade of the existing one or to remove/have no facility. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Community Centres 32

35 Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality The community centres are appropriate to the community needs. Access The community centres are available for public use. Percentage of residents satisfied with the standard of their local hall/community centre for public use (Residents Survey). Percentage of residents satisfied with the availability of their local hall/community centre for public use (Survey - Resident). Target 13/14 Measurement Source Not measured 90% Three Yearly Residents Survey. Not measured 90% Three Yearly Residents Survey. Safety Community centres are safe to use for their intended purpose. Note: That the targets above are the same for the next 10 years. Percentage of community centres (that require them) hold current warrants of fitness. 100% 100% Annual inspections. Who benefits from the activity and how is it funded? The whole community benefits, as the halls are a place to meet and interact. In particular, clubs and individuals who hire the halls benefit. Approximately 90% of operating costs are sourced from community centre levies; additional funding is through user pays, fundraising and grants. Capital expenditure is funded in a similar manner, but may also include the use of loans for significant projects, to be repaid by rates. What are the projects and variances from the 10 Year Plan? Operating and Maintenance Projects Project Description Long Term Plan 2013/2014 Annual Plan 2013/2014 Funding Explanation of Variance * Ryal Bush - Paint roof and exterior $3,078 $3,078 Reserves - hall.0016.a. * Tuatapere - Paint exterior - $6,464 $6,464 Reserves hall.0012.a. * Winton - Upgrade to Memorial Hall - $300,000 Reserves New project requested by Winton Community Board. - hall031. * Athol - Paint main hall roof - Ath02. - $10,000 Loan New project. * subject to change/negotiation with the individual hall committees Community Centres 33

36 What does it cost? - Funding Impact Statement Community Centres LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (395) 56 (262) Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (2) (44) (25) Funding balance Funding Impact Statement Variances A new project for the scheduled upgrade to the Winton Memorial Hall of $300,000 (as mentioned above) has resulted in capital expenditure to replace existing assets and movement in reserves increasing. Community Centres 34

37 Community Housing Aim: Provide affordable community housing where needed. What we do Council has 69 individual housing units available for rental in Edendale, Lumsden, Nightcaps, Ohai, Otautau, Riversdale, Riverton, Tuatapere, Winton and Wyndham. These units are let primarily to those persons who receive National Superannuation. The units are inexpensive and the small size suits those that are unable to maintain large properties. Rents from tenants are used to maintain and upgrade the units as required. Why we do it Community Housing primarily contributes to the Council s outcome of supporting our communities. The activity contributes to this outcome by providing good quality affordable housing to a group with specific needs and by allowing people, where possible, to remain living in their local community if their family home becomes inappropriate for their individual circumstances. What are the key issues for the activity? Council does not intend to increase the total number of units if demand increases. The strategy is not to renew any of the community houses but to maintain the current housing portfolio until they meet the end of their asset life. Any increased demand due to an ageing population is expected to be met by alternative providers eg retirement villages, retirement homes or other non-council providers. Council is conscious that many tenants have limited incomes and as such, there is a need to keep rents affordable. As a result, many of the units, while fit for purpose and comfortable, are relatively basic. In order to remain affordable the Council must balance the maintenance and any improvements with the income received. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality Suitable housing is provided for tenants who have pleasant surroundings. Safety A safe environment is provided. Percentage of tenants who believe that the housing facilities are maintained satisfactorily and are suitable for use. Percentage of residents who feel safe and secure when living in the Community Housing building. Target 13/14 Measurement Source 80% 80% Two yearly Tenant Survey 98% 100% Two yearly Tenant Survey Community Housing 35

38 Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Responsiveness Tenants receive prompt response to identified problems. Target 13/14 Percentage of requests for maintenance actioned within agreed 100% 100% Pathways timeframes Agreed Timeframes means matters are responded to and a course of action agreed on the same day (within 24 hours) for urgent requests and other matters within five days. Note: That the targets above are the same for the next 10 years. Measurement Source Who benefits from the activity and how is it funded? These benefits are distributed between the tenants, the families of tenants (as the units allow them more freedom) and the community who benefit from having a range of age-groups in the town. Direct operating costs are met from user charges (tenant rents); the Council meets the associated overhead costs and other indirect costs, approximately 15% of activity costs. There is little capital expenditure associated with this activity planned however what is planned and much of the operational maintenance extends the life of the structure. Government subsidy is sought where modifications are required to meet the physical needs of tenants and will be utilised, where applicable, for other projects. Proceeds from sales of housing no longer required may be applied to the remaining housing stock. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Community Housing 36

39 What does it cost? - Funding Impact Statement Community Housing LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (28) (30) (24) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Community Housing 37

40 Council Facilities (Council Offices, Buildings and Water Structures) Aim - To provide facilities that support Council s activities, including Council offices, buildings and water structures. What we do Council facilities covers Council offices, buildings and water structures. Buildings include depots, offices, libraries and other miscellaneous buildings. Water structures include Riverton Harbour wharves, boat ramps, navigation aids and five wharves at Stewart Island. Why we do it Council facilities primarily contributes to the Council s outcome supporting our communities. The activity contributes to this outcome by providing buildings to support Council and community activities. Harbours, jetties, boat ramps and associated structures all provide access to the water for recreational use and support the operation of businesses such as scenic and charter boats, as well as commercial fishing/harvesting. Navigation aids also help to provide safe navigation in the water to avoid underwater hazards. What are the key issues for the activity? Earthquake-prone Buildings - Council has a number of potentially earthquake-prone buildings which will need to be considered and addressed in the future. Apart from the Invercargill Office, nothing has been included in the 2013/2014 year. Upgrades as detailed assessments and costings will need to be undertaken for the relevant buildings in the future and included in the 10 Year Plan as appropriate. Riverton Harbour - For some years, the Riverton Harbour Subcommittee has not been able to pay for expenditure solely from the income being generated every year. In the 10 Year Plan, as a result, the licence fee charged each year changed from $10 to $13.70 per metre to ensure operational expenditure is being covered. At this time no capital projects are planned for the Riverton Harbour for the period of the plan. As part of dealing with limited income being received, staff are working with the subcommittee to identify assets and liabilities of the harbour and to identify where the income streams should come from and what if any operational changes need to be made. Stewart Island Jetties - There is a major project planned for the Stewart Island jetties - Port William has been moved from 2016/2017 in the 10 Year Plan to the 2013/2014 year. This project aims to bring the structure up to a satisfactory standard that meets regulatory and user requirements. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Council Facilities (Council Offices, Buildings and Water Structures) 38

41 Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Safety Facilities meet their statutory requirements. Quality Buildings are appropriate to the needs of the occupier. Safety Harbour facilities and jetties are safe for users. Note: That the targets above are the same for the next 10 years. Percentages of Council buildings (that require them) hold current warrants of fitness. Percentage of building occupants satisfied with the standard of their building. Target 13/14 Measurement Source 96%. 100% Council records. New measure. 80% Tenant Survey. Number of safety issues reported. 0 0 Reported issues by users. Who benefits from the activity and how is it funded? The community where the facilities are provided benefit from this activity. The District also benefits from having an effective network of Council buildings to support Council activities. With regard to harbour and jetty facilities, individuals or businesses benefit the most. Office and library buildings - funding for maintenance and any capital works is funded through rates, reserves and loans (usually internal). These costs are recovered through the relevant activity rates. Water structures and other buildings and property - overall, Council aims to recover as much funding from sources other than rates as possible. Stewart Island Jetties Subcommittee is funded through a $5,000 grant from Council, funds from Environment Southland and user charges. The Riverton Harbour is funded from user charges, including endowment land rentals and wharf leases. Other water structures, buildings and properties are funded through user charges, to the extent possible. What are the projects and variances from the 10 Year Plan? Operating and Maintenance Projects Project Description Long Term Plan 2013/2014 Annual Plan 2013/2014 Funding Te Anau - New helipad on sportsground/boating reserve A. $5,145 $5,145 Reserves Explanation of Variance Project Description Long Term Plan 2013/2014 Annual Plan 2013/2014 Funding Explanation of Variance Council Offices and Depots - Seismic upgrade - original portion A. $300,000 Reserves New project. Council Facilities (Council Offices, Buildings and Water Structures) 39

42 Maintenance, Renewal and Replacement Projects Project Description Long Term Plan 2013/2014 Annual Plan 2013/2014 Funding Explanation of Variance Stewart Island - Fred s camp A. $20,640 Reserves Already completed in 2012/2013 Stewart Island Jetties - Port William A. $32,000 Loan Additional cost of design and purchase of materials. Construction cost of $45,591 already scheduled for 2016/2017. Wallace (Otautau) - Holt Park - replace roof A. $3,602 $3,602 Reserves Wallace (Otautau) - Purchase and install AA. $20,000 Reserves New project. Council Facilities (Council Offices, Buildings and Water Structures) 40

43 What does it cost? - Funding Impact Statement Council Facilities LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 1,169 1,082 1,544 Applications of operating funding Payments to staff and suppliers ,073 Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 1,264 1,229 1,441 Surplus (deficit) of operating funding (96) (147) 103 Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt (4) (5) (5) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding (4) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (110) (229) (292) Increase (decrease) in investments Total applications of capital funding (100) (136) 114 Surplus (deficit) of capital funding (103) Funding balance Funding Impact Statement Variances A new project for the seismic strengthening of the Invercargill Office of $300,000 (as mentioned above) has resulted in capital expenditure to improve the level of service and movement in reserves increasing. The introduction of the Tuatapere Ward Pool rate and also the Fiordland Pool rate have resulted in the targeted rate income increasing from the 10 Year Plan. The sale of the Waiau Airport has resulted in a reduction in the interest being charged on the associated overdrawn internal reserve and therefore internal charges recovered have increased from what was forecast in the 10 Year Plan. A grant to the Fiordland Pool totalling $60,630 has resulted in other operating funding increasing, half of which is being funded from reserves and the other half rated for (as noted above). The introduction of the Stewart Island Visitor Levy has resulted in other receipts increasing from the 10 Year Plan by $160,000. Council Facilities (Council Offices, Buildings and Water Structures) 41

44 District Development Services Aim - Work with groups and organisations to identify opportunities and facilitate the development of projects and initiatives that will enhance the prosperity and quality of life of Southland communities. What we do Venture Southland undertakes Economic Development; Destinational Marketing; and Community Development and Events for the Southland region as a whole. A region-wide approach enables economies of scale and a stronger voice for Southland. The Council has a Level of Service Agreement with Venture Southland that emphasises particular services for the District. The Council purchases additional community development capacity to work with our diverse communities and ensure local priorities are identified and addressed. The Council makes an annual grant to Venture Southland for these activities. Why we do it District Development Services primarily contributes to the Council s outcome of supporting our communities. The activity contributes to this outcome by assisting groups and organisations with community projects, promoting Southland's image to visitors and migrants and providing settlement support, creating and assisting with a diverse range of events and recreation activities and identifying and developing business opportunities. What are the key issues for the activity? Restructure - The proposal to restructure Venture Southland from a joint committee of councils to a Council Controlled Organisation. Inflation Adjustment - The Council plans to not inflation adjust the grant provided to Venture Southland in 2013/2014. The budgets have been prepared on this basis. Economic Wellbeing - There are a number of continuing trends which are affecting the economic wellbeing of the region s small communities and which necessitate an enterprise focused response. These include residents experiencing quicker travel due to better roads and vehicles and a greater use of the web to buy and sell goods and services and interact with one another. Work that focuses on infrastructure that supports economic development initiatives will continue to be important. Changes in land use are likely to impact on the region at an economic, social and environmental level. Venture Southland will continue to work with business and communities to identify the issues and opportunities that arise out of these changes. Community Development and Events - The effects of the recent economic changes have had an impact on communities, local groups and institutions, with issues such as volunteer capacity and the withdrawal of services having a particular effect. Community Events (and the facilities that support them) provide economic benefits and develop pride. Approaches to events and arts and the funding for these activities are under review by various agencies and Venture Southland will assist in developing strategies for the region. District Development Services 42

45 Promotion - The international tourism sector is influenced by factors such as the exchange rate and the consumer economic outlook. While international visitors will remain a key focus, domestic markets will be given impetus though a variety of promotions. Venture Southland will continue to respond to the way people are using the internet as part of their consumer experience. It will also continue to be involved in product development such as cycle trails and Milford Sound access issues, including via advocacy work. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Promote the positive aspects of Southland and identify and facilitate the development of projects of regional significance in association with local organisations. Promote Southland as a quality destination for visitors, skilled migrants, investors, students, conferences and events; to assist destination management and visitor industry development. Support and assist groups and organisations to identify and develop opportunities and provide advocacy. Proactively identify and promote opportunities for diversification, employment and business growth in Southland. Strategies (Energy, Tourism, Arts etc) produced according to timeframes set out in Strategy for Development Number of Investment Opportunity Proposals facilitated (Economic Development). Number of people attending Venture Southland Events (Regional and Community Development). Target 13/14 Measurement Source New measure 100% Annual Report. New measure 12 Activity Reporting Records. 10,000 8,000 Event Reports Percentage of programmed promotional activities delivered 100% 100% Activity Reporting (Destination Promotion) 5. Records. Number of Strategic Projects Facilitated (Economic Development (ED), Regional and Community Development (RCD). Number of Advocacy Issues addressed (Regional and Community Development). Number of Community groups engaged with (Regional and Community Development). Number of Sector Groups engaged with (Economic Development). New measure 5 (ED) 5 (RCD) Activity Reporting Records. New measure 10 Activity Reporting Records. New measure 80 Activity Reporting Records. 9 5 Activity Reporting Records. District Development Services 43

46 1. Stewart Island Energy Strategy and implement Venture Southland actions arising from the Arts Southland Strategy. 2. Southland Workforce Strategy, Southland Digital Strategy, Southland Tourism Strategy, Southland Leisure Strategy and implement Venture Southland actions arising from the Arts Southland Strategy. 3. Fiordland Tourism Strategy, Youth Retention and Development Strategy and implement Venture Southland s actions arising from the Arts Southland Strategy. 4. Southland Energy Strategy, Catlins Tourism Strategy, Stewart Island Tourism Strategy, Southland Leisure Strategy, Regional Heritage Strategy, Events Strategy and implement Venture Southland actions arising from the Arts Southland Strategy. 5. Percentage of total number of programmed promotional activities set out in Venture Southland s 2012/2013 Action Plan. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? Individual businesses, business networks, community groups, individual residents and the community as a whole benefit from Venture Southland s activities. Many of Venture Southland s activities will have a lasting benefit, particularly facilitating infrastructure development. The Council believes that the costs should be recovered from a regionally based funding formula, adjusted for specific service provision to any territorial authority. The Council s portion is funded through uniform annual charge (UAC) per rateable unit. In addition Venture Southland actively pursues external sources of funding for specific projects. Any capital expenditure is covered by the Council s grants and external funding. Some projects do have benefits for individuals, or defined groups. However as a whole, Venture Southland activities directly benefit a wide range of individuals and groups and there are strong spillover benefits from economic development and stronger communities for the District as a whole. A full user pays system would not be affordable for vulnerable groups in our community and would be inconsistent with the purpose of Venture Southland (development and promotion of the region). This activity is rated for jointly with Grants and Donations via the Development and Promotions rate, as the outcomes for these activities are similar. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. District Development Services 44

47 What does it cost? - Funding Impact Statement District Development Services LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 1,743 1,787 1,742 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 1,974 2,022 1,971 Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications 1,769 1,813 1,769 Total applications of operating funding 1,974 2,022 1,971 Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding Funding balance Funding Impact Statement Variances Rates revenue and operating costs have reduced from what was included in the 10 Year Plan as a result of Council s decision to hold the annual grant at the 2012/2013 level (ie, no inflation adjustment included). District Development Services 45

48 District Support Aim - Provide convenient access to Council information and services and support for local communities. What we do District support covers the operation of eight offices as a first point of contact for residents and ratepayers. The main office is located in Invercargill and Area Offices are located in Winton, Te Anau, Otautau, Lumsden, Wyndham, Stewart Island/Rakiura and Riverton. Many of Council s services are provided through the office staff, including general enquiries, rate rebate applications, dog registrations, fire permits, interments, requests for service and licensing. Staff also provide secretarial support for community boards, community development area subcommittees, committees of Council and other CCOs. All Area Offices, except the Invercargill, Te Anau and Stewart Island/Rakiura offices are co-located with local libraries, in line with Council s one stop shop concept. Why we do it District Support primarily contributes to the Council outcome of being an effective Council. The activity contributes to this outcome by providing local offices throughout the District so Council s services and information are more accessible and prevent residents and ratepayers from having to travel large distances to one main office. The activity also strengthens Council s links with the numerous communities in Southland by having local staff situated in local offices in or near these communities. It also provides efficiencies by having Area Offices and Libraries jointly located in most cases. Secretarial and administrative support is provided to local elected members (Councillors, community boards and community development area subcommittees) who help to empower and motivate these communities. What are the key issues for the activity? Over the next 10 years Council is planning to retain its philosophy of decentralisation and ensure the community has local services available. However, Council is considering possible alterations to its Area Office network, due in part to the suitability of some buildings from an earthquake risk perspective. In addition, plans are occurring for the Stewart Island/Rakiura office to be relocated to a proposed new building on the Island which will also house the museum. The Rakiura Information and Heritage Centre Trust will own the lease of the land on which the proposed new building is to be constructed. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. The key performance indicator Percentage of customers who are satisfied with response times, staff helpfulness and outcome of enquiries target changed from 85% in 2012/2013 to 90% in 2013/2014. District Support 46

49 Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Access Access to services during normal business hours. Responsiveness All requests, issues, queries and faults dealt with in a timely fashion. Percentage of residents satisfied with the hours of operation (Residents Survey). Percentage of customers who are satisfied with response times, staff helpfulness and outcome of enquiries (Survey - Customer). 2 Not measured Target was 90% 95% helpfulness 81% response time 85% outcome Target 13/14 Measurement Source 90% Three Yearly Residents Survey 85% (Survey - Customer). 2 Percentage of response times kept within defined limits 86% 85% Quarterly report (Quarterly Report). 1 Percentage of correspondence responded to within defined New measure 85% TRIM limits The defined limit for correspondence is 20 working days if an official information request, 10 working days if action required (but not an OIA request) and five working days if just for the staff member s information. 2. The survey is conducted by telephone and undertaken by the Customer Services Interdepartmental Support Officers six times a year. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? These benefits accrue to ratepayers and residents who live in the areas around each office. Benefits are also received by the organisations that Council acts as an agent for, or provide accommodation for. Operating costs for this activity are funded by both district and local rates. The district rate, which is the council offices and district support rate, is levied district wide based on capital value. Capital costs for this activity are limited to the usual overheads (office buildings, vehicles and equipment) and are funded through accumulated depreciation (vehicles only), and loans for large projects (usually internal), all of which are recovered through rates. What are the projects and variances from the 10 Year Plan? Project Description Finance and Administration - Ongoing Customer Service Improvements - CS00001.CS00001A. Long Term Plan Annual Plan Funding 2013/ /2014 $6,000 $6,000 Rates Explanation of Variance District Support 47

50 What does it cost? - Funding Impact Statement District Support LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 2,180 3,147 3,193 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 3,342 4,338 4,253 Applications of operating funding Payments to staff and suppliers 1,441 1,484 1,443 Finance costs Internal charges and overheads applied 3,267 3,274 3,303 Other operating funding applications Total applications of operating funding 4,796 4,947 4,756 Surplus (deficit) of operating funding (1,454) (609) (504) Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt 2, Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding 2, Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments 1, Total applications of capital funding 1, Surplus (deficit) of capital funding 1, Funding balance Funding Impact Statement Variances Targeted rates revenue is lower than forecast in the 10 Year Plan as a result of interest on the expected loans for 2012/2013 and therefore associated repayments being less than forecast as well as various savings identified. Finance costs have reduced as a result of Council forecasting not to require external debt to fund District support activities. This decrease has been offset by an increase in internal charges expense as a result of District support debt being provided from internal sources rather than external sources; therefore internal interest on internal debt has also increased. Reserve movements have increased predominantly as a result of transfers made to repay negative reserves. District Support 48

51 Dog Control Aim: To protect public safety and reduce nuisances. What we do The Dog and Animal Control service involves registering dogs, investigating complaints about dogs and wandering stock, formulating and enforcing animal control policy on issues relating to animal welfare, other statutory responsibilities such as dealing with nuisance dogs, as well as promoting responsible dog ownership. There are around 13,000 dogs registered in Southland. Why we do it Dog and Animal Control primarily contributes to the Council s outcome of supporting our communities. The activity contributes to this outcome by reducing risks to public safety (at home, in public places and on roads) through effective response and management of instances of nuisance dogs and stock wandering on roads. In addition, penalties are applied if necessary when requirements are breached, such as infringement notices or prosecution. What are the key issues for the activity? Combined Pound Facilities - The new combined pound facility between Southland District Council and Invercargill City Council is in use and working well, with the new facilities that meet the requirements of the animal welfare minimum standards for kennels. Southland District Council has access to five of the 28 bays in the pound. The ongoing operating costs of this facility are shared along with Invercargill City Council and have been factored into the 10 Year Plan budget. Attack Pack - Following a dog control seminar attended by other southern councils, staff are implementing the attack pack, which is a resource for the investigation, assessment and response to dog rushing and attack incidents. This will result in greater consistency not only among the rangers but also neighbouring councils, some of which are also adopting the attack pack. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality. Actively control the actual and potential nuisance from dogs and animals. Responsiveness. All complaints are addressed in a timely manner. Target 13/14 Percentage of residents satisfied with the service provided. Not measured Dog - 75%. Stock - 80%. Percentage of complaints investigated within set timeframes. 1 67% 85% Pathway. Measurement Source Three Yearly Residents Survey. Dog Control 49

52 Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Responsiveness. Facilitate and provide appropriate guidance and advice on Animal Control matters. Target 13/14 Measurement Source Number of public education initiatives carried out per year. 2 New measure 72 Timesheets, receipts and Council newsletter. 1. The timeframe for investigation varies according to the type of requests ie - a dog attack will be investigated more urgently (4 hours) than for example a lost dog (24 hours). 2. The education target is based on 64 free microchipping clinics per year, two radio slots, four articles in the First Edition and two school visits each year. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? The benefits are distributed to users of public grounds and reserves/parks, the farming, general community and dog owners. Animal owners who do not restrain/contain their animals appropriately create the need for this activity. Dog registration fees should be set at a level that will allow the recovery of costs of retaining and updating dog registration records, the process of undertaking the registration and the cost of employing a part-time Dog Control Officer. The remainder of costs including the cost of rangers and other animal control activities should be funded by the Development and Promotions rate, which is a Uniform Targeted Rate (approximately 10% of the cost of Dog and Animal Control). Capital costs for this activity include the usual overheads - office buildings, vehicles and equipment, as well as capital works for animal control facilities - and are funded through accumulated depreciation (vehicles only) and loans for large projects (usually internal), all of which are recovered through rates. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Dog Control 50

53 What does it cost? - Funding Impact Statement Dog and Animal Control LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding (41) Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (41) (4) (9) Increase (decrease) in investments Total applications of capital funding (41) Surplus (deficit) of capital funding 41 (33) (28) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Dog Control 51

54 Environmental Health Aim - To promote the health, safety and wellbeing of the community, through the effective implementation of a range of public health related legislation. ANNUAL PLAN 2013/2014 What we do Environmental Health is concerned with all aspects of the natural and built environment that may affect human health. Key activities include registration and inspection of licensed premises, noise control, liquor licensing, insanitary conditions, hazardous substances, freedom camping and litter and the regulation of the bylaws relating to the keeping of animals and trading in public places. The activity also undertakes school water and pool testing and provides advice on environmental health, particularly during the resource consent and building consent process. The Council also carries out a range of education and information activities. Why we do it The Environmental Health activity primarily contributes to the Council outcome supporting our communities. The activity contributes to this outcome by protecting public health through registration and inspection of premises that prepare or sell food, licensing and monitoring premises that sell alcohol to ensure that they conduct their business to required standards. The investigation of nuisance such as noise, smoke, odours, pests and insanitary buildings also supports our communities by minimising the effect of such nuisances on people or the receiving environment. What are the key issues for the activity? Food Control Plans and Food Premises Grading - The Food Bill will require retail food premises to adopt Food Control Plans, which is a very different approach to regulating food premises than the current Food Hygiene Regulations. Southland District Council s Environmental Health Officers have been promoting Food Control Plans during the current volunteer implementation phase and find these to be very effective in improving food safety procedures. The Council will consider introducing a food grading bylaw in partnership with the Invercargill City Council, where food premises are graded according to criteria set out in the bylaw. Sale and Supply of Alcohol Act - The Sale and Supply of Alcohol Act 2012 will be implemented in stages and will result in changes both for industry and Southland District Council. Implications for Council include a new decision-making entity and the production of a new Local Alcohol Policy that can regulate, for example, the location of licensed premises, or whether new licences should be issued at all. Skin Piercing - The Council may consider introducing a skin piercing bylaw in partnership with Invercargill City Council that would regulate tattooists and other skin piercing activities. At present the only tattooing services in the District are via a mobile bus. Other activities that may be affected include chemists that offer ear piercing services. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. The KPI Percentage of customers satisfied with how their nuisance complaints have been dealt with target changed from 85% in 2012/2013 to 90% in 2013/2014. Environmental Health 52

55 Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality Implement actions and measures that provide for the health, safety and wellbeing of the community. Quality Ensure that all premises operating under the requirements of the Health Act, Food Act, Sale of Liquor Act and associated regulations operate in accordance with the requirements of the legislation. Responsiveness Process all applications lodged under the Sale of Liquor Act administered by Health Regulation within the timeframes specified within the relevant Act. Responsiveness All complaints are assessed in a timely manner. Percentage of customers satisfied with how their nuisance complaints have been dealt with. 83% helpfulness 64% time taken Target 13/14 Measurement Source 90% Survey - Customer Percentage of registered premises inspected annually. 99% 100% Pathway Percentage of applications for liquor licensing and managers certificates are processed within 35 working days. 96% 95% Pathway Percentage of complaints investigated within two working days 95% 95% Pathway from the date of receipt Investigated means to enquire into the complaint and determine the appropriate response required, whether by phone or site visit. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? Food and Beverage Premise Regulation benefits are distributed to consumers who benefit from the knowledge that the food purchased is being processed and stored in accordance with current standards. In addition, regular inspections of Sale of Liquor premises ensure that the premises have a certified manager in charge and that the requirements of the Act are being complied with, with benefits to patrons and the wider public. Suppliers of food and alcohol create the need for this activity, as their businesses must be monitored. The control of nuisances including noise, hazardous substances, infectious disease and pests benefits the wider public. Those responsible for creating nuisances and those dealing with hazardous materials create the need for this activity. Nuisance control is funded mainly from the environmental health monitoring rate levied district-wide via a UAC. Inspection of food premises, investigation of food complaints and liquor licensing is funded from user charges. Capital costs for this activity are limited to the usual overheads - office buildings, vehicles and equipment - and are funded through accumulated depreciation (vehicles only) and loans for large projects (usually internal), all of which are recovered through rates. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Environmental Health 53

56 What does it cost? - Funding Impact Statement Environmental Health LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves 15 (10) (10) Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (15) (15) (15) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Environmental Health 54

57 Forestry Aim - To ensure sustainable management of Council forests to provide the best possible return. What we do The Council owns around 1,390 hectares of plantation forest. These are located in four blocks but are administered and managed as if one entity. Why we do it The Forestry activity primarily contributes to the Council outcome making the most of our resources. The activity contributes to this outcome by ensuring that the forestry assets are managed in a sustainable manner, minimise negative effects on the environment; and that the practices are managed to contribute to an acceptable landscape. The activity also contributes to the Council outcome being an effective Council because forestry operations provide alternative income to offset rates. What are the key issues for the activity? Forestry operates in the commodity market and therefore the Council has little control over the prices obtained for its timber. This has an effect on the income that the Council receives from its Forestry activity, the operational surpluses from which are generally used to offset rates. While fluctuations in prices for timber can be expected, it is projected that Forestry will be able to maintain a steady programme of operational surpluses for the Council over the 10 year period. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Sustainability To achieve an appropriate balance between harvesting and restocking Council and Community forests. Sustainability All operations compliant with environmental and Health and Safety requirements/objectives. Target 13/14 Measurement Source Percentage of objectives met of the management and business plans % 100% Management objectives and physical programmes summaries. Number of environmental or Health and Safety issues notified/reported. 0 0 Management Reports. Retain (environmental) certification ISO New measure Yes Audit. 1. There are 13 objectives in the Forestry Business Plan which each has their own performance indicators. These objectives cover a range of topics such as the size of the forest estate, quality management, improving profitability and revenue and the Emissions Trading Scheme. Note: That the targets above are the same for the next 10 years. Forestry 55

58 Who benefits from the activity and how is it funded? The District as a whole benefits from this activity, as it generates income for Council which is used to offset general rates. The benefits of this activity are long term, as it generates ongoing revenue streams. Revenue generated from sale of wood covers the expenses of the forestry activity. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Forestry 56

59 What does it cost? - Funding Impact Statement Forestry LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts ,901 Total operating funding ,926 Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (28) Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (207) (316) (946) Funding balance Funding Impact Statement Variances Forestry revenue and expenditure has increased from the 10 Year Plan as a result of implementing an accelerated harvest plan, whereby Council is opting to make the most of the current market prices and demand by harvesting trees earlier than their prime age. The surplus generated from this accelerated harvest plan has increased reserves and has enabled Council to increase the allocation to reduce the development and promotions and representation rates by an additional $200,000. Forestry 57

60 Grants and Donations Aim: Provide assistance to a range of organisations for projects and activities which provide good quality public services that meet current and future needs of communities What we do Council provides funding for scholarships, grants and donations so that District residents have access to community funding and to help finance cultural, social and recreational services. An annual grant is also provided to the Southland Regional Heritage Committee (SRHC) who is a strong supporter of museums in Southland and supports specific heritage projects that preserve or promote the Story of Southland. An annual contribution is also made to the Southern Rural Fire Authority to manage rural fire responsibilities at a regional level, including training firefighters and public education. Why we do it The Grants and Donations activity contributes to supporting our communities. Through providing financial assistance the activity contributes to this outcome by empowering community groups and individuals to undertake their activities. Scholarships also promote a well-educated and skilled community. The Regional Heritage grant supports our communities by valuing our history and heritage, supporting a range of quality places to go and things to do and providing learning opportunities. Rural Fire supports our communities by controlling fires in Southland and responding to incidences of rural fire. What are the key issues for the activity? In principle, the Council is keen to maintain its grant and donations activity as it believes Southland should look to secure its position through economic development opportunities and support agencies which provide necessary social services to Southlanders. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Access and Equity Enhance the quality of life through grants/donations to community and regional organisations. Percentage of residents that are aware of the availability of grants. Not measured. Target was 60%. Target Measurement Source 13/14 60% Three Yearly Residents Survey. Grants and Donations 58

61 Who benefits from the activity and how is it funded? Grants - These benefits are distributed between the community at large; sports, recreational and other groups; and individuals (sponsorship recipients). There is also benefit to the wider community, as grants generally support activities where there is a broader interest (grants/policies generally require applicants to have raised a local share to demonstrate this). There are no capital costs for this activity. This operation costs are funded from a range of sources: Development and Promotions rate levied district-wide, which is a Uniform Annual Charge; Specific rates for one-off projects, where appropriate, such as the Regional Initiative rate 2013/2014; Council Reserves where appropriate; and Investment income from specific funds (such as the Ohai Railway Fund). Regional Heritage - The District as a whole benefits from the preservation of our heritage and the provision of the cultural and recreational opportunities associated with it. Further, the benefit extends to all residents in and visitors to the Southland region. There are no capital costs for the Council in this activity. Any capital expenditure the SRHC may choose to undertake is funded from grants it receives (including the Southland District Council grant). The Council believes that the costs should be recovered from a regionally based funding formula with the Council s portion being funded through a UAC per separately used or inhabited part of a rating unit (the Regional Heritage rate). Rural Fire - The benefits are distributed between the public, who are protected from fire hazards; asset owners, as risks and insurance costs are reduced; and the environment, as damage from fire is minimised. The grant to Southern Rural Fire is funded 100% by the Civil Defence and Rural Fire rate levied district-wide based on land value. The grant contributes to both capital and operating expenditure. Venture Southland - Individual businesses, business networks, community groups, individual residents and the community as a whole benefit from Venture Southland s activities. The Council believes that the costs should be recovered from a regionally based funding formula, adjusted for specific service provision to any territorial authority. The Council s portion is funded through a Uniform Annual Charge per rateable unit. In addition Venture Southland actively pursues external sources of funding for specific projects. Any capital expenditure is covered by the Council s grants and external funding. Grants and Donations 59

62 What are the projects and variances from the 10 Year Plan? Description 2013/2014 LTP $ 2013/2014 Annual Plan $ Change $ Explanation of Variance GRANTS Citizens Advice Bureau 2,200 2,200 - Friendship Committee 9,753 9,524 (229) Change due to variance in interest on reserves received. Gore Counselling Service 1,000 1,000 - IWI Funding 39,278 38,816 (462) Changes in anticipated operating costs as provided by Te Ao Mārama. Life Education Trust 5,000 5,000 - Miscellaneous Grant 7,000 2,000 (5,000) Removal of annual $5,000 to Stewart Island Jetties as their five year agreed term has expired. Southland Indoor Leisure Centre (Stadium maintenance) 50,000 50,000 - St Johns' Ambulance 1,400 1,400 - Southland Regional Heritage Committee 606, ,450 (183,213) Exclusion of additional rate of $10.62 (GST excl) per household proposed in LTP from 2013/2014 year. Swim Safe 17,400 17, /2014 is the final year of a three year grant. Te Hikoi - 12,000 12,000 Request from Te Hikoi to fund operational deficit for 2013/2014 (GST excl). Enviroschools Programmes 10,000 10,000 - Around the Mountain Cycle Trail - 160, ,000 Contribution towards initial costs not recoverable from the Ministry of Economic Development. SCHOLARSHIPS Bursaries 4,500 4,500 - Community Service Award 1,000 1,000 - Debating Competition Outward Bound 8,000 8,000 - FUNDING ASSISTANCE Contribution - Toilets 518, ,116 16,997 Changes in operating costs, predominantly as a result of reduced anticipated user fee income for Lions Park toilet. Contribution - Dog & Animal Control 34,919 34,919 - Contribution - Parks & Reserves 16,007 15,376 (631) Minor changes in forecasted operating costs. Santa Parade 2,400 2,400 - Holiday Programs 20,000 20,000 - Destination Fiordland 26,464 26,464 - ALLOCATION GRANTS Community Initiative 108, ,800 - Contributions and levies 15,000 15,000 - Creative Communities 21,030 21,030 - Ohai Railway Fund 80,058 80,058 - Northern Southland Development Fund 15,000 15,000 - OTHER Southern Rural Fire Authority 229, ,503 - Venture Southland 1,799,200 1,754,800 (44,400) Decrease is due to Southland District Council s decision to remove inflation from grant. TOTAL 3,650,294 3,605,356 (44,938) Grants and Donations 60

63 What does it cost? - Funding Impact Statement Grants and Donations LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 1,740 1,306 1,364 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 2,122 1,867 1,828 Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications 1,293 1,239 1,270 Total applications of operating funding 2,258 2,060 2,112 Surplus (deficit) of operating funding (136) (193) (283) Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt (4) (5) (6) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding (4) (5) (6) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets (38) (45) (37) Increase (decrease) in reserves (103) (153) (253) Increase (decrease) in investments Total applications of capital funding (140) (198) (289) Surplus (deficit) of capital funding Funding balance Funding Impact Statement Variances Rates revenue and operating costs have increased as a result of the $160,000 grant for the Around the Mountain Cycle Trail, offset by the partial removal of the additional rate for Southland Regional Heritage of $123,000. Internal charges revenue has decreased as a result of less internal interest being available to allocate to this activity. Grants and Donations 61

64 Library Service Aim: To connect residents to local, national and global communities, information and ideas. What we do The library service includes 12 local community libraries, spread across the District, a mobile library service, educational programmes and activities and access to a range of library and information resources via the Internet. A reciprocal membership agreement known as the SouthLib consortia gives all residents reciprocal membership to any library in the lower South Island. Why we do it The Library Service activity primarily contributes to the Council outcome Supporting our Communities. The activity contributes to this outcome by providing people with quality places to enjoy reading, listening, viewing and interacting. As a free community recreation facility, libraries are accessible and have a range of resources and information which encourages learning. Libraries act as community hubs, providing social spaces where people can meet and relax in a warm, comfortable, safe and neutral environment. Individuals can engage with library services and with other people in their communities; they can participate in community life and decision-making. Libraries assist communities to value their heritage and to embrace diversity and creativity and to value the Treaty of Waitangi. Library spaces foster a sense of connection and belonging and support strong local engagement. What are the key issues for the activity? Bookbus - Council will make changes to the Council s mobile library Bookbus service by leasing a smaller vehicle and providing a target selection, using the Bookbus as a mobile office. Partnership Agreements - Strategic and operational partnerships enable public libraries to make a stronger contribution to the development of social capital in their communities. For this reason Southland District Council residents will continue to have free membership to any library south of the Waitaki River. This includes those in the Waitaki, Clutha, Queenstown Lakes/Central Otago, Dunedin, Gore District Council and Invercargill City Council areas. This agreement is part of the shared services arrangement known as the SouthLib consortium which also shares collections, e-book content and a library management system. The intent is to investigate the sharing of services whenever new/enhanced technology is available and to keep more isolated Districts abreast with the services that metropolitan areas provide and ensure the provision of an equitable level of service regardless of geographic location. In addition to the local and regional partnerships, commitment continues to further develop alliances and partnering in a whole-of-country approach - as highlighted in the provision of internet services, Aotearoa People s Network Kahoroa (APNK) and also an e-book consortia, called Overdrive. Public libraries, including Council, has a commitment to collaborate with National Library of New Zealand to deliver a national Year of Reading Programme to celebrate the joy of reading and to improve literacy levels in New Zealand. E-Technology - Libraries have access to new technologies to deliver content and services anywhere, anytime. The staff are well qualified to assist users, to demonstrate best practice and assist with decision-making/recommendations for purchase. There is a steadily increasing demand for electronic access to information such as electronic books, internet and online magazines and newspapers. Council s libraries are now able to loan out e-books which can be accessed from wherever the library member is situated and downloaded to their e-reader: Be this a smart phone, laptop, PC, e-book or device of choice. This service does not attract charges and all that is needed is for the user to be a registered library member and to have the technology. In the long term, this may decrease the demand for hard copy books, however this is uncertain at this stage. Library Service 62

65 Changing Demographic - Changing trends in the ethnic mix of communities is increasing demand for a variety of language resources. This has seen books provided in a range of languages other than English including Māori, Tagalog, Dutch and Japanese. New migrants often have additional needs such as access to government/council information, copying services, information on local services, internet services and a meeting space. The activity will continue to provide books in a range of other languages. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Access Library services are available at convenient times and locations. Quality Library facilities look good and are comfortable. Quality A wide range of books and materials, In a variety of formats, are able to be accessed by users. Quantity Library services are being increasingly used. Note: That the targets above are the same for the next 10 years. Percentage of residents who identify opening hours as a barrier to using libraries. Percentage of residents satisfied with the location of libraries in Southland and/or the ability to access the Mobile Library. Not measured Target 13/14 Less than 10% Measurement Source Three Yearly Residents Survey. Not measured 95% Three Yearly Residents Survey. Percentage of users satisfied with look and comfort of libraries. Not measured 95% Survey - User (Two Yearly). Percentage of users satisfied with the choice of books and other resources available. Percentage increase in the number of people who visit the library (compared to the previous year). Not measured 95% Survey - User (Two Yearly) New Measure 5% Door count. Who benefits from the activity and how is it funded? Individuals who use the library benefit from this service, as does the community as a whole, through spill over benefits. Operating costs for this activity is funded 90%-95% from rates, levied through a combination of a district-wide Uniform Annual Charge (the Library Services Rate) and local rates depending on local community preferences. The remaining 5-10% is funded from user charges and overdue fines. Council aims to move to 90% rates funding over time. In addition, internet services are funded by central government. The usual overheads also apply - office buildings, vehicles and equipment - and are funded through accumulated depreciation (vehicles only) and loans for large projects (usually internal), all of which are recovered through rates. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Library Service 63

66 What does it cost? - Funding Impact Statement Library Service LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 1,129 1,148 1,147 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 1,625 1,653 1,652 Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 1,379 1,404 1,401 Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt 40 (26) (26) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding 61 (25) (25) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (245) (249) (251) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Library Service 64

67 Parks and Reserves Aim - To provide a blend of urban and rural reserves and open spaces which reflect Southland s commitment to township beautification, quality recreation and conservation. What we do The Parks and Reserves activity involves providing and maintaining areas of beautification and parks and reserves. Beautification includes plantings, garden plots and hanging baskets, mowing of grassed areas and trees and hedges. Parks and reserves also include areas such as walking tracks, green spaces, playgrounds and sportsfields. Why we do it Parks and Reserves primarily contributes to the Council s outcome supporting our communities. The activity contributes to this outcome by enhancing the visual appeal of townships and providing safe well maintained areas for people to relax, socialise or participate in recreation and sporting activities. What are the key issues for the activity? Orepuki Viewing Platform - A viewing platform is expected to be built and completed in Orepuki in 2013/2014. The platform will be situated along the coastline at the Grandview Terrace, looking out to sea. It is anticipated to cost around $9,000. Projects at Otautau Holt Park - The Wallace Community Board have budgeted $35,000 to repair the surface of the netball courts at Holt Park. This is expected to be completed in 2013/2014. An outdoor stage at Holt Park is expected to be built in 2013/2014 at a cost of $19,000. There is currently no stage in Otautau and the project is hoped to encourage more use and events at the park. The Board agreed this could be funded $10,000 from financial reserves already held by the Board, $2,500 from Wallace Ward rates, with the balance of $6,500 to come from other sources such as grants. Curio Bay - A shared vision for Curio Bay is currently being developed between Southland District Council, Department of Conservation and the South Catlins Development and Environmental Charitable Trust so that the groups can work together to provide the required infrastructure for the area. Current infrastructure and the sensitive natural environment is struggling to cope with the numbers of visitors and their impacts, particularly the provision of public conveniences and drinking water, treatment of sewerage, parking and use of roads. The Council agreed to contribute around $300,000 towards Curio Bay with the funding to come from existing financial reserves. The project is expected to commence in the 2013/2014 year. Parks and Reserves 65

68 What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance Measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality Appropriate and acceptable quality parks, reserves, playgrounds and sportsfields. Percentage of residents satisfied with the beautification, reserves, parks, sportsfields and playgrounds. Percentage of beautification areas, parks, reserves, playgrounds and sportsfields that are maintained in accordance with contractual standards Contractual standards cover lawn mowing, weed removal and equipment inspection and maintenance. 2. Timeframes means urgent repairs (those affecting safety) are fixed within two days; and non urgent repairs fixed within 10 days. Note: That the targets above are the same for the next 10 years. Not measured. 85% target. Target 13/14 Measurement Source 90% Three Yearly Residents Survey. 89%. 100% Annual Inspections. Who benefits from the activity and how is it funded? The community as a whole benefits from recreational opportunities. There are also benefits to businesses, such as tourism. The majority of operating costs are funded from rates (a mix of local and District, depending on who holds responsibility). Rates may be offset by revenue from reserve users and occupiers, such as sports groups or events. These vary between grounds and over time. Capital works are also funded this way, though loans may also be used. Capital works related to expansion of facilities may be funded through financial or development contributions. The local community is the primary beneficiary of beautification activity, though it also enhances visitor experiences. Beautification projects have long term benefits, but require annual maintenance to retain their value. Operating expenses are funded from local rates, with recoveries where appropriate for specific projects. Capital costs for this activity are limited to the usual overheads - office buildings, vehicles and equipment - and are funded through accumulated depreciation (vehicles only) and loans for large projects (usually internal), all of which are recovered through rates. Parks and Reserves 66

69 What are the projects and variances from the 10 Year Plan? Asset Acquisition Projects - Caused by changes to levels of service Project Description Long Term Plan 2013/2014 Annual Plan 2013/2014 Funding Orepuki - Viewing Platform s $5,567 $5,567 Rates Explanation of Variance Wallace (Otautau) - Township Walking Tracks Project A $5,145 $5,145 Reserves Asset Acquisition Projects - Caused by changes in demand Project Description Te Anau - Upuk walkway improvements b. Te Anau - Lions Park Playground Improvements A. Te Anau - Upgrade entry into Park off Dusky Street A. Long Term Plan Annual Plan Funding 2013/ /2014 $11,102 $11,135 Dev Cont $20,520 $20,580 Dev Cont $27,783 $27,783 Dev Cont Explanation of Variance Parks and Reserves 67

70 What does it cost? - Funding Impact Statement Parks and Reserves LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) 1,196 1,237 1,209 Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 1,612 1,661 1,576 Applications of operating funding Payments to staff and suppliers 1,512 1,489 1,392 Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 1,597 1,578 1,500 Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt 33 (5) (3) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (373) Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (16) (84) (75) Funding balance Funding Impact Statement Variances Decreases in internal charges revenue and operating expenditure are as a result of the management of the District reserves being merged into Southland District Council s Property Team rather than by a separate Reserves Manager. Parks and Reserves 68

71 Public Conveniences Aim - To provide sufficient public conveniences within the District as a way to provide a healthy safe environment for residents and visitors. What we do The Council provides and maintains 70 public conveniences and six dump stations across the District. These facilities are located along key travel routes and at strategic locations such as reserves, beaches, playgrounds and other public gather spots. Most toilets are stand alone, however some are provided in conjunction with other locally owned buildings like garages. Why we do it Public conveniences primarily contribute to the Council s outcome making the most of our resources. The activity contributes to this outcome by providing facilities to appropriately deal with human waste from visitors and residents. In addition, by providing the facilities in convenient locations throughout Southland, it prevents contamination caused by indiscriminate fouling, which could otherwise pollute waterways, roadsides and recreational areas throughout the District. What are the key issues for the activity? Public conveniences are now District funded which means that every ratepayer throughout the District will pay the same amount for the network of public conveniences. The Council believes this is a fairer approach as it believes residents and ratepayers benefit equally from the network of public conveniences and dump stations. In upgrading the public conveniences, the Council will ensure the facilities are brought up to present day community expectations. To achieve this, the Council has decided that: There needs to be a greater consistency in the type of toilet used throughout the District. The toilets need to be constructed in a way that is easy to clean and made of materials that are difficult to vandalise ie stainless steel bowls and hand basins. Signage and access need to be appropriate, including providing at least one fully accessible cubicle. The appearance of the toilet block needs to be appealing so people use them. Under used facilities need to reduced at the next replacement. Higher quality facilities need to be provided at high use locations. Exeloo type toilets are installed on the main travel routes in the larger towns of Lumsden, Riverton and Tuatapere when upgrades are due. Council has increased the levels of service and capital expenditure on the District s toilets over the next 10 years as set out in the 10 Year Plan The Garston and Mossburn toilet upgrades are now planned for 2014/2015 as part of an overall strategy to upgrade the District's toilets over the next 10 years. These toilets are used frequently, particularly by those on buses coming to and from Queenstown. As mentioned above there has been a review of the public conveniences right across the District and the Council wishes to move to make public conveniences more appropriate and appealing for users. The Garston toilet upgrade is projected to cost around $194,000 and the Mossburn upgrade around $424,000. In considering what level of facility should be provided at these two locations, consideration will need to be given as to whether they will funded by rates or user pays. Public Conveniences 69

72 What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality Maintain public conveniences in a good and clean condition. Quantity Provide sufficient toilets at appropriate locations. Note: That the targets above are the same for the next 10 years. Percentage of toilets that are cleaned in accordance with contractual standards. Percentage of residents satisfied with the availability of public conveniences for residents and tourists. Target 13/14 Measurement Source 97% 100% Annual inspections. New measure. 85% Three Yearly Residents Survey. Who benefits from the activity and how is it funded? Public conveniences benefit all residents and visitors through the provision of facilities, as well as the broader public through public health benefits. Visitors and users of recreational spaces also create the need for these facilities. As a result of this Council has changed its funding of this activity in the 2012/2013 financial year to 100% District funded. What are the projects and variances from the 10 Year Plan? Renewals Project Project Description Long Term Plan Annual Plan Funding 2013/ /2014 Stewart Island - Toilet upgrade - Bathing Bath z. $15,390 District Contribution and Rates Stewart Island - Removal of Toilet - Bathing Beach - $5,000 District 585.A. Contribution and Rates Explanation of Variance It is not possible to upgrade this toilet. Project changed to 585.A (removal of toilet). New project to remove toilet. Public Conveniences 70

73 What does it cost? - Funding Impact Statement Public Conveniences LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt (42) (45) (45) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding (42) (45) (45) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (192) (60) (50) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Public Conveniences 71

74 Representation and Advocacy Aim: Represent communities and provide leadership and advocacy on their behalf. Provide for local decision-making and encourage local involvement to ensure decision-makers are aware of and understand local views. Provide opportunities for young people to participate and develop leadership skills. What we do The Council encourages decision-making at a range of levels - centrally by the Council and at local levels, through community boards, community development area subcommittees and other committees. This is to assist, as far as practicable, that those paying for and receiving services are also making the decisions about those services. The Council also seeks input from young people in the District through the Youth Council and supports other representative groups such as the Milford Community Trust. The Council also plays a strong advocacy role in representing local interest by way of submissions, deputations and lobbying to regional and central government and other relevant agencies. The Council is proactive in ensuring there is appropriate representation on national working parties and organisations so that a southern and/or rural voice is heard. Key aspects of the activity include three yearly elections for the Mayor, Councillors, community boards and community development area subcommittees and six yearly representation reviews to determine the representation structure. Why we do it Representation and Advocacy primarily contributes to the Council s outcome being an effective Council. The activity contributes to this outcome by empowering and enabling local people (via community boards, community development area subcommittees, water supply committees and hall committees) to make decisions regarding the facilities and services where they live. The Council also advocates to central government on behalf of the community to ensure that its funding and governance role in the region supports and empowers local communities. What are the key issues for the activity? Representation Review - The Council is required under the Local Electoral Act 2001 to review its representation arrangements every six years and the Council has undertaken a review of these arrangements. The review is about providing fair and effective representation of individuals and communities within the District. The review impacts on how the community is represented and the number of Councillors and community boards that provide representation throughout the District. The Local Government Commission issued its decision for arrangements in April The upcoming election in October 2013 will be the first elections where the changes to representation will apply. Advocating for Southlanders - The Council also does its best to advocate for Southlanders nationally even though overall it is a relatively small provincial council with limited resources. This does affect what the Council can achieve on its own. As a result, the Council does work together with other councils in the region through the Shared Services Forum, (pooling resources together to provide activities such as Civil Defence, WasteNet and Venture Southland) in order to minimise duplication and increase the strength of leadership and advocacy for Southland. Council represents local interests by way of submissions, deputations and lobbying to regional and central government Council makes submission on changes to government bills and will continue to make submissions on the local government reforms. Representation and Advocacy 72

75 What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Access. Maintain a structure that allows for local decision-making. Percentage of resident satisfaction with the performance of community boards and local committees (local decision-making and planning). Target 13/14 Measurement Source Not measured. 85% Three Yearly Residents Survey. Leadership. Council to provide leadership and advocacy on major issues affecting residents. Note: That the targets above are the same for the next 10 years. Percentage of resident satisfaction with Council decisionmaking, planning and leadership. Not measured. 85% Three Yearly Residents Survey. Who benefits from the activity and how is it funded? The whole community benefits from this activity, including residents and ratepayers. It ensures people can have input to establishing the policies of the Council and there is representation from communities of interest. This activity is funded by a mix of local rates and the Representation rate, which is a UAC per rateable unit district-wide. Capital costs for this activity are limited to the usual overheads - office buildings, vehicles and equipment - and are funded through accumulated depreciation (vehicles only), rate smoothing for small projects and loans for large projects (usually internal), all of which are recovered through rates. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Representation and Advocacy 73

76 What does it cost? - Funding Impact Statement Representation and Advocacy LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 1,959 1,755 1,690 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 2,834 2,919 2,762 Applications of operating funding Payments to staff and suppliers 1,286 1,478 1,441 Finance costs Internal charges and overheads applied 1,443 1,462 1,432 Other operating funding applications Total applications of operating funding 2,778 2,989 2,921 Surplus (deficit) of operating funding 56 (71) (159) Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt (23) (24) (25) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding (23) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves 136 (2) 8 Increase (decrease) in investments (103) (153) (253) Total applications of capital funding 34 (60) (150) Surplus (deficit) of capital funding (56) Funding balance Funding Impact Statement Variances General rates revenue has decreased from the 10 Year Plan as a result of no Riskpool premium being required for the 2013/2014 year and various cost savings identified. Internal charges revenue has decreased as a result of less internal interest being available to allocate to this activity. Representation and Advocacy 74

77 Resource Management Aim: To ensure the development of the District and use of its resources is carried out in a sustainable manner that is compatible with community values. ANNUAL PLAN 2013/2014 What we do The Resource Management activity involves the development and review of the District Plan (which sets out the objectives, policies and rules and methods for land use and development in the District), monitoring compliance with the District Plan and the processing of resource consent applications. Why we do it Resource Management primarily contributes to the Council s outcome making the most of our resources. The activity contributes to this outcome by ensuring the sustainable management of natural and physical resources in a way that retains the unique values and character of the District. This is managed through the District Plan and resource consents both of which help to ensure that land use is appropriate, any potential negative environmental effects are minimised or mitigated and that any effects on the environment are monitored. What are the key issues for the activity? District Plan Review - The Council is continuing to review its District Plan, in collaboration with Environment Southland and its Regional Policy Statement. A draft of the new District Plan was completed in and went out for public consultation in This may influence which activities will require a consent in the future. As part of the District Plan review, the Council needs to provide appropriately zoned and located land for new activities to facilitate economic development in the District and also to suitably recognise more accurate hazard information obtained since the current District Plan was prepared. In 2013/2014 submissions will be received and hearings conducted. The proposed District Plan is expected to be adopted in late Legislation Changes - Changes by central government to the Resource Management Act and related legislation are anticipated to be ongoing over the 10 year period. The National Policy Statements (NPS) and National Environmental Standards (NES) can change the way the District Plan policy framework functions as all councils are required to give effect to them, including amending their plans. It is not possible to predict what the changes might be related to or what they will look like. Number of Consents - Although experiencing the effects of the economic downturn of the last couple of years development continues to occur in the Southland District with the number of consents being processed each year remaining relatively constant (310 consents were processed in 2012 compared to 280 in 2011, 225 in 2010 and 358 in 2009). The Council is planning for a similar level of activity to that experienced on average over the last four years - approximately 300. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Resource Management 75

78 Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality Provide assistance and information to help applicants understand the District Plan rules and consent process. Efficiency Ensure consents are processed efficiently. Sustainability Provide and maintain an operative District Plan that appropriately addresses the environmental issues of the District. Responsiveness All public complaints about effects on the environment are investigated and reported on, in a timely and professional manner. Quality Monitor resource consents to ensure that they comply with conditions. Percentage of users satisfied with the service provided (staff assistance and the information provided). Target 13/14 Measurement Source Not measured 80% Two yearly User Survey. Percentage of applications processed within required timeframes. 1 98% 90% Pathway. District Plan reviewed for efficiency and effectiveness of policy New measure See and rules not less than every five years. 2 footnote 2 Percentage of complaints where investigation commenced within five working days. Percentage of consents that require monitoring that are monitored. Report to Council. 97% 100% Pathway. 100% 100% Access Database. 1. Timeframes for processing non-notified resource consent applications is 20 working days. "Receipt" means all the required information has been supplied. 2. Section 35A report five year timeframe is based on the date the plan is made operative. Until such time as the plan is finished going through the RMA 1 st Schedule process the review date cannot be determined. This will be revisited in 2015/16 or in preceding annual plans as appropriate. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? These benefits are distributed between the applicant (who has the legal certainty to proceed with their activity) and the general public (who are assured that environment is managed). Both rural and urban development create the need for this activity, as they use resources including land and this use needs to be managed in a sustainable manner for the District as a whole. At least 85% of costs associated with resource consent applications (processing and scheduled monitoring) are to be funded through user pays (resource consent fees, PIM and LIM fees). Development and review of the District Plan; investigation of complaints (where not recoverable); any unrecovered costs associated with consents; and provision of general information are funded by the Strategy Policy and Planning rate, which is made up of a UAC per rateable unit and a capital value rate. Capital costs for this activity are limited to the usual overheads - office buildings and equipment - and are funded through accumulated depreciation (vehicles only) and loans for large projects (usually internal), all of which are recovered through rates. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Resource Management 76

79 What does it cost? - Funding Impact Statement Resource Management LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 1,359 1,448 1,380 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 1,674 1,773 1,686 Applications of operating funding Payments to staff and suppliers 1,377 1,471 1,508 Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 2,017 2,134 2,091 Surplus (deficit) of operating funding (343) (361) (405) Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves 4 (18) (18) Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding Funding balance Funding Impact Statement Variances General rates revenue and internal charges expenses have decreased as a result of cost savings identified. Resource Management 77

80 Roading and Transport Aim - To provide an interconnected and integrated transport network which allows individuals and communities to access their business and private destinations in a safe, responsive and sustainable manner. What we do Council administers and maintains the District s roading and bridging network (some 5,000 km of network), excluding State Highways and National Park roads [maintained by the New Zealand Transport Agency (NZTA) and the Department of Conservation (DOC)]. Council also provides footpaths, streetlights, carparks and noxious plant control. In addition Council contributes to the Total Mobility Scheme. Why we do it Roading and Transport primarily contributes to the Council outcome supporting our communities. The activity contributes to this outcome by providing a corridor for the efficient movement of goods and services and providing people with access to their land, homes, schools, social centres and recreational areas. The roads are also maintained so that they are safe to use and through the total mobility scheme and disabled parking, there is assistance with transport for those who are less mobile. Provision and maintenance of walkways, footpaths and cycleways also assist people to be active and healthy. Active aspects of the network (walkways, footpaths, cycleways) also assist people to be active and healthy. The activity also contributes to making Southland a great place to live by providing people with access to their land, homes, schools, social centres and recreational centres. What are the key issues for the Activity Challenges facing our roading network - Looking ahead, there are a number of key challenges facing Southland District s roading network. These include: Cost pressure due to escalating of oil based products (ie diesel and bitumen). There had been a funding loss of 1% in the NZTA Funding Assistance Rate. Contractor availability may be restricted due to the Christchurch rebuild which would impact on price and capacity to complete the work. NZTA has indicated a flat lined approach to subsidies for the next three years. The impact of a flat lined approach is that there is no inflation or growth adjustment to budgets. As the roading programme becomes more expensive Council will still have the same funding level from NZTA. The District has an ageing network of sealed roads, many of which were built during the 1960s and 1970s and are coming to the end of their economic lives, including a significant portion just outside the 10 year framework of the 10 Year Plan. To retain the same levels of service currently offered would require significant financial investment. The Council may be required to change the levels of service, for example convert sealed road to gravel road in order to reduce costs. The increasing amount of heavy traffic using the network, due to the growth in dairy and forestry, is accelerating the deterioration of the roads. Council is looking at new ways of becoming more efficient in its expenditure and management of the roading network. This includes exploring the use of contracting and shared services opportunities. Looking at how to extend the life of the roads (pavement). There is a need to allocate more funds annually for drainage in order to help prolong pavement life. A proactive approach to drainage has been taken. The success of this will be monitored. Innovative network modelling (Economic Network Programme) to help in making investment decisions. It looks at such issues as which roads require better service? Which require less? - This results in providing a network and services that are fit for purpose and far more cost efficient. Roading and Transport 78

81 Maintain a focus on delivering a safe roading network. Providing a proactive safety approach by utilising the eyes and ears of our network users, feedback information from large commercial freight and transport operators, from police and ambulance services and from ratepayers and school bus operators. All have excellent lines of direct communication to council to provide where and when a safety or risk service issue requires attention. All of this helps create a safer network for all users, commercial operators, construction contractors, service providers and emergency services. Servicing debt (internal). Sustainability of long term gravel resources continues to be an issue as well as negotiating the best pricing therefore resolving this is a high priority in the 2013/2014 programme of work. Roading model - The Council operates a differential rating system for funding roads. The model s formula provides a way to allocate the costs of roading to those sectors that create the costs through the use of the network. The model is reviewed yearly to ensure an equitable distribution. For this Annual Plan, the variables in the formula have been updated including the number of properties in each sector, the volumes (tonnes) produced by each sector (Table 1), the total roading budget and where that budget is spent. Table 1: Tonnage by Sector Sector Mining 386, , , ,286 Aggregates 433, , , ,521 Non-Dairy Farming 422, , , ,510 Dairy 1,874,026 2,081,210 2,154,920 2,326,131 Forestry 520, , , ,639 Industrial 222, , , ,424 Total 3,860,025 4,220,539 3,794,829 4,029,510 Roading and Transport 79

82 Paying for Roads - Roading Rate Model Updated Sector Rating Unit Equivalents 2012 Share of Costs 2013 Share of Costs % Difference (2012 to 2013) % $ % $ Mining % 230, % 245, % Non-Dairy % 4,325, % 4,352, % Dairy % 3,921, % 4,413, % Forestry % 692, % 735, % Industrial 326.5* 4.00% 461, % 490, % Commercial % 288, % 306, % Lifestyle * 4.00% 461, % 490, % Residential * 9.00% 1,038, % 1,103, % Other % 115, % 122, % Total 15,518 11,533,931 12,259,455 *This data includes remissions and partial remissions which has resulted in half unit equivalents in the Residential and Other sectors. The mining and dairy sectors have experienced an increase in tonnage. Although tonnage for the forestry sector has remained the same for this update, large blocks of forestry across the District will reach maturity and become available for harvest in the near future. The table outlines the share of costs for 2013/2014. The 'other' sector continues to pay a 1.0% cost share because it includes a number of not-for-profit organisations. The 'residential' share is to pay a 9.0% cost share allowing for unquantified heavy vehicle movement and reflecting the overall benefit this sector gains from the roading network. The 'non-dairy sector' has been rounded to pay a 35.5% share of costs. The forestry sector share of costs has been adjusted to 6.0%. This is because of the harvesting activity in the near future which will have a high impact on the roading network. The 'dairy' sector has been allocated a 36.0% share of costs due the increase in tonnage. This adjustment means that the dairy sector is more closely aligned to model outcomes. The 'commercial', 'industrial' and lifestyle sectors are to pay cost shares as derived from the model. Costs shares are rounded to half percents rather than whole percents because some cost share changes are quite small, but could result in significant variation in individual rates from one year to the next. Roading and Transport 80

83 Around the Mountain Cycle Trail - The Around the Mountain Cycle Trail is planned to go from Walter Peak to Kingston (approximately 180 km in total). The project was the subject of a resource consent hearing before an Independent Hearing Commissioner. The outcome was that a section of the preferred route was declined; however the project can still go ahead with an alternative route. A new funding agreement has been signed between the Ministry of Business Innovation and Employment (Ngā Haerenga, The New Zealand Cycle Trail) and Council, clearing the way for construction of the trail to begin. Under the agreement, central government will contribute $4M with the remainder being underwritten by the Council. The main objectives of the New Zealand Cycle Trail project is to: Generate short and long term economic benefits (including employment). Provide a high quality asset that offers a world class cycling experience and enhances New Zealand s competitiveness as a visitor destination. Maximise complementary benefits eg for health, the environment, commuters, the events sector. Engage local communities. The trail is expected to offer considerable long term economic benefits to communities. The trail will be completed in two stages with construction of stage one expected to be completed by the end of October 2013 and the stage two expected to be completed by the end of What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. In the 10 Year Plan the measure was Reducing trend in the five year average of number of total injury crashes due to road factors or where accident severity is significantly exacerbated by the roadside environment has changed to Reducing trend in the five year average of number of total injury crashes on local roads due to road factors. This change is because data on injury crashes exacerbated by roadside environment cannot be obtained objectively and also data is now obtained on local roads only not on state highways. Roading and Transport 81

84 Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Responsiveness All requests/complaints to be answered promptly. Accessibility Roads to provide a smooth and comfortable ride quality. Safety Footpaths are safe for users - free of overhanging obstructions and free of trip hazards. Accessibility To provide an adequate level of streetlighting for safe and efficient movement of vehicles, cyclists and pedestrians. Quality Roads to be maintained to an appropriate standard. Accessibility Assistance is provided for people with impairments to get around. Road Safety Roads and bridges to provide a safe roading network for all road users. Target 13/14 Measurement Source Percentage of requests to fix roading surface faults are 100% 90% Pathway. completed within the timeframe specified in contracts. 1 Percentage of sealed roads providing a smooth and comfortable ride. 2 88% 85% Roughness Survey - Rating RAMM Database. Percentage of gravel road tests where the surface condition meets acceptable standards. 3 85% Winter 85% Summer 90% RCAMES. Number of footpath complaints. New measure. Less than previous year Pathway. Percentage of residents satisfied with level of streetlighting. Not measured. 80% Three Yearly Residents Survey. Length (or percentage) of the roading network rehabilitated this year compared with targets. Area (or percentage) of the roading network resealed this year compared with targets. Funding assistance provided for transport within Southland via the Total Mobility initiative. Reducing trend in the five year average of number of total injury crashes on local roads due to road factors. 4 70% 90% RAMM. 99% 100% RAMM. Yes Yes Financial Reports. New measure. Reducing trend 1. Response times vary from two working days to three weeks depending on the type of fault and the type of road. 2. Smooth and comfortable" for sealed roads means roads that meet the NZTA National Standards. 3. The acceptable standard for gravel roads for gravel roads is an unsealed road which scores between 0 and 2 for all conditions surveyed (potholes, corrugations, soft spots, shape, loose gravel). 4. Data on injury crashes exacerbated by roadside environment data (component of this performance indicator in the 10 Year Plan ) cannot be obtained objectively. Note: That the targets above are the same for the next 10 years. CAS. Roading and Transport 82

85 Who benefits from the activity and how is it funded? These benefits are distributed between the community as a whole, utility companies, commercial enterprises and individuals. The damage to the roads places a significant demand on the roading activity, particularly the maintenance and upgrade of the roads, as trucks do most of the damage. Roading is funded from a mix of rates and central government financial assistance. Roading costs are funded from central government financial assistance; UAC set at 10% of roading costs funded by rates; and targeted roading rate for each of the following sectors - commercial, dairy, farming, forestry, industrial, lifestyle, mining, residential and other. The targeted rate is calculated as follows and covers both capital and operating expenditure: General roading costs are allocated between sectors by capital value. Structural/pavement costs, which are generated by heavy traffic, are allocated by tonnage in the case of rural sectors and apportioned between the commercial and industrial sectors by the number of properties. A percentage share of costs is then established for each sector. A targeted rate is set for each sector based on their share of costs and levied on the capital value of each rateable unit. Local amenities are funded through local rates (streetworks and noxious plant control), with some capital projects and emergency repairs (such as slips) funded through loans (recovered from rates subsequently). The Council may require subdividers and developers to pay a financial contribution under the Resource Management Act 1991 towards the capital cost of upgrade works required to cater for the increased demand generated by the development, the lending costs associated with capital works may also be recovered through financial contributions. The amount of the contribution is assessed on a case-by-case basis, (refer to the District Plan, Financial and Development Contributions Policy). There are also some services provided on a user pays basis and these charges are described in the Fees and Charges section of the Annual Plan. What are the projects and variances from the 10 Year Plan? The tables below summarise Council s Land Transport Programme: Project Description Roading Operating and Maintenance Projects Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Sealed Pavement Maintenance 2,415,000 2,415,000 Unsealed Pavement Maintenance 2,194,600 2,194,600 Routine Drainage Maintenance 913, ,886 Structures Maintenance 274, ,935 Environmental Maintenance 1,199,487 1,199,487 Traffic Services Maintenance 458, ,054 Cycle Path Maintenance - - Level Crossing Warning Devices 25,825 25,825 Network and Asset Maintenance 2,072,825 2,072,825 Total Mobility Costs 11,611 11,611 Studies and Strategies 15,000 15,000 Bus Services - PT Operations Maintenance - Funding Rates and Subsidies Explanation of Variance Roading and Transport 83

86 Project Description Roading Operating and Maintenance Projects Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance Total Operational Maintenance 9,581,223 9,581,223 Roading - Renewal and Capital Expenditure Projects Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Bridges - Acquisitions LOS 41,700 41,700 Bridges - Renewal 375, ,300 Sealed Roads - Acq LOS - - Unsealed Road Metal - Acq LOS 217, ,775 Unsealed Road Metal - Renewal 1,959,977 1,959,977 Sealed Road Resurface - Renewal 5,350,890 5,350,890 Drainage Renewals - Acq LOS 96,125 96,125 Drainage Renewals - Renewal 96,125 96,125 Structure Component - Renewal 250, ,000 Rates and Traffic Services - Acq LOS 32,000 32,000 Subsidies Traffic Services - Renewal 610, ,000 Assoc Improvements - Acq LOS 414, ,791 Pedestrian Facility - Acq LOS - - Cycle Facilities - Acq LOS - - Pavement Rehab - Renewal 3,681,099 3,681,099 Minor Improvements - Acq LOS 862, ,879 Minor change Minor Improvements Renewals 441, ,919 Road Reconstruction - Total Capital Expenditure 14,430,295 14,430,580 TOTAL 24,011,518 24,011,803 Roading and Transport 84

87 Maintenance, Renewal and Replacement Projects Project Description Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Edendale - Footpath upgrade s. 11,331 11,331 Rates Manapouri - Street lighting renewal - 5,160 5,160 Reserves 763.A. Riverton - Footpaths A. 45,328 45,328 Rates Te Anau - Street lighting A. 34,056 34,056 Rates Explanation of Variance Te Anau - Misc patch renewals A. - 39,892 Rates & Reserves Moved forward from 2016/2017 Tuatapere - Footpath upgrade s. 50,000 50,000 Reserves Wallace (Otautau) - Footpaths upgrade 11,331 11,331 Rates & Reserves A. Winton - Street works 785.A. - 10,000 Rates Asset Acquisition Projects - Caused by changes to levels of service Project Description Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance Around the Mountain Cycle Trail - 1,902,587 Govt Grant & Amended project, as a result of funding agreement with the Ministry of Stage 1. Loan Business Innovation and Employment. Around the Mountain Cycle Trail 1,052,055 Govt Grant & Amended project, as a result of funding agreement with the Ministry of Stage 2. Loan Business Innovation and Employment. Colac Bay - New footpath s. 5, Rates & Reserves Nightcaps - New concrete kerbing - 11,332 11,332 Rates 638.s. Riverton - Streetlight renewal A. 2,124 2,124 Rates Riverton - Widening road and kerbing ,884 Loan 781.A. Moved forward from 2014/2015. Te Anau - Street lighting A. 11,352 11,352 Rates Tuatapere - Concrete kerbs s. 10,000 10,000 Reserves Wallacetown - Footpath upgrade - 45,328 45,328 Loan 668.s. Winton - Concrete kerbs A. 5,666 5,666 Rates Roading and Transport 85

88 What does it cost? - Funding Impact Statement Roading and Transport LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 11,568 12,339 12,294 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes 5,638 5,281 5,281 Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 18,950 19,483 19,361 Applications of operating funding Payments to staff and suppliers 10,693 10,081 10,048 Finance costs Internal charges and overheads applied 1,244 1,286 1,716 Other operating funding applications Total applications of operating funding 12,409 11,823 11,766 Surplus (deficit) of operating funding 6,541 7,660 7,595 Sources of capital funding Subsidies and grants for capital purposes 11,047 9,376 9,488 Development and financial contributions Increase (decrease) in debt 5,707 (431) (381) Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding 16,756 8,950 9,112 Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service 4,382 3,125 4,817 - to replace existing assets 13,935 12,945 12,945 Increase (decrease) in reserves 4, (1,054) Increase (decrease) in investments Total applications of capital funding 23,296 16,610 16,708 Surplus (deficit) of capital funding (6,541) (7,660) (7,595) Funding balance Roading and Transport 86

89 Funding Impact Statement Variances Internal charges revenue has decreased as a result of interest payable on the overdrawn Around the Mountain Cycle Trail reserve not budgeted for in the 10 Year Plan. Finance costs have reduced as a result of Council forecasting not to require external debt to fund roading activities. This decrease has been offset by an increase in internal charges expense as a result of Roading s debt being provided from internal sources rather than external sources; therefore internal interest on internal debt has increased. Capital grants revenue, level of service capital expenditure and decrease in reserves have all increased as a result of the amended funding agreement for the Around the Mountain Cycle Trail (for further details see page 8). Roading and Transport 87

90 Sewerage Aim - To protect public health and the environment through the provision of an effective, environmentally friendly sewage disposal. What we do The sewerage activity involves collecting, treating and disposing of sewage from residential properties, business properties and public sanitary facilities. The sewerage system also deals with non-domestic liquid wastes (often known as trade wastes). Eighteen towns within the District are reticulated with Council owned and maintained infrastructure. Why we do it Sewerage primarily contributes to the Council s outcome supporting our communities. The activity contributes to this outcome by protecting public health from the spread of disease and reducing the effects of sewerage discharges into the environment. What are the key issues for the activity? There are a number of sewerage schemes throughout the District that are ageing and require replacement work to be carried out over the coming 10 years and beyond. The Council is concerned about the ongoing affordability of these schemes and as a result moved to District funding for Water and Sewerage Services as a means of addressing these concerns. District funding includes pooling costs for operating expenditure, planned and future renewals and other capital expenditure. It does not include costs relating to the construction of new schemes. Local Issues: Wallace Ward - The Nightcaps Sewerage Scheme may require improvements to its treatment and disposal of sewage in 2015 to meet new consent conditions. This has been budgeted to cost around $115,000. A major issue for the Ohai sewerage is that the majority of the reticulation and many components of the treatment plant begin to meet the end of the projected design life in A large project at an expected cost of around $4M to renew ageing pipes is planned for 2021/2022 and is subject to condition assessments. Toetoes Ward - Council is working with DOC and the South Catlins Development and Environmental Charity Trust to develop a long term wastewater solution for the area. Council approved $300,000 as part of the 10 Year Plan approval process. Initial estimates indicate that a solution could cost up to $500K to deliver required improvements. All parties are currently exploring options for funding the remaining balance. The shortfall will not be funded through rates increases. Te Anau Ward - A new sewerage treatment and disposal system is planned for Te Anau to comply with resource consent conditions and meet future demand. This will be undertaken in a number of stages over the 10 years with the design and some construction undertaken before the current consent expires in 2014 and then further work undertaken in 2021/2022 after growth is expected to occur in Te Anau. The cost of this will be met by existing ratepayers for the improved level of service they will receive and development contributions (related to the additional capacity which is being provided to allow for increased demand). Waikaia Ward - In Riversdale there are projects planned to address infiltration into the sewerage pipe network. Also the discharge consent is to be renewed in 2014 and it is expected that some upgrading of the soakage basins and treatment plant will be required in the future. Winton Ward - A project is also underway to upgrade the Winton Oxidation Pond. It is expected that construction will start in the 2013/2014 year. Sewerage 88

91 What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. The Council will now only be measuring the number of overflow incidents affecting private property rather than the number of blockages. Blockages will not necessarily stop a system working, for example it may only restrict the use of the system until the blockage is cleared. Customers may only notice that it takes longer for their toilet to flush, or their water to drain away. In addition blockages can occur within a customer s property boundary in which case it is the property owner s responsibility to clear. Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Safety Sewerage is managed to reduce the risk to public health. Reliability Provide a reliable sewerage service. Responsiveness Prompt response and resolution to complaints. Quality and Safety Minimise effects on the environment. Number of overflow incidents effecting private property caused by Council's networks. Target 13/14 10 Less than 15 Measurement Source Hansen IMS. Percentage of customers satisfied with the service. Not measured >90% Three Yearly Residents Survey. Resolve customer requests within time set for type of problem. 1 New measure >90% Hansen IMS. Percentage of effluent tests which comply with relevant 89% 100% Council records. resource consent conditions Response will be within one hour and then resolution within six hours following that. 2. The target is an average for all sewerage schemes where the quality of effluent is monitored. The requirements for schemes differ throughout the District, with schemes having varying consent requirements including testing regimes and acceptable limits. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? Residents, businesses and visitors benefit from the provision of sewerage treatment services. The need for this activity is driven by high density communities, where on-site sewerage systems are not effective disposal methods for public health and/or environmental reasons. From 1 July 2012, sewerage will be funded by a single rate targeted to those receiving services (or able to be connected) with the rate calculated based on the cost of the entire network of the sewerage scheme. The rate includes operating and capital costs with the exception of new scheme capital. Sewerage 89

92 What are the projects and variances from the 10 Year Plan? Capital Expenditure, Maintenance, Renewal and Replacement Projects LTP Annual Plan Project Description Balfour - Reticulation renewal programme - plw10.a. Gorge Road - Reticulation renewal - plw25.a. Manapouri - Rising main replace tressles - ww2205.a. Manapouri - Cathedral, Glade and Waiau pumps and ultrasonics sensors - ww2206.a. Explanation of Variance $ $ Funding 6,035 6,035 Reserves Scheduled. 35,451 Reserves Moved to 2014/2015 year following condition assessment - (school to country club). 31,170 31,170 Loan Scheduled. 11,429 11,429 Loan Scheduled. Ohai - Laterals - ww2207.a. 14,546 14,546 Reserves Scheduled. Ohai - Sewerage plant water line feed - ww2209.a. 9,351 9,351 Reserves Scheduled. Ohai - New sludge pump - 6,754 6,754 Reserves Scheduled. ww2211.a. Riverton - Reticulation renewal - 6,939 6,939 Rates Scheduled. plw134.a. Riverton - Condition assessment - 6,939 6,939 Rates Scheduled. plw134.b. Riverton - Valves - ww2217.a. 9,351 Rates Moved to 2014/2015. Riverton - Riverton Rocks pump - ww2218.a. Stewart Island - Miro Cres line replace / investigate - ww2222.a. Stewart Island - Pond pumps - ww2223.a. Te Anau - Replace valves - ww2226.a. Winton - Pump replacement - plw235.a. Winton - Condition assessment - plw235.b. Winton - Equipment upgrade - plw237.a. 17,144 Rates In 2013/2014 year but carried out in Dec 2012 due to urgent need. 10,390 Reserves Carried out ahead of 2013/2014 FY due to condition. 3,637 3,637 Reserves Scheduled. 3,117 Reserves $3,594 - Moved to 2017/2018 with major system work. 62,619 62,619 Loan Scheduled. 6,939 6,939 Loan Scheduled. 26,689 26,689 Loan Scheduled. Sewerage 90

93 Asset Acquisition Projects - Caused by Changes in Demand Project Description Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance Te Anau - Equipment upgrade - plw178.a. Te Anau - Te Anau/Manapouri treatment and disposal project - plw206.b. Te Anau - Te Anau/Manapouri treatment and disposal project - plw207.b. 97,425 Loan $112,338 - Moved to 2017/2018 with major system work. 88,170 Loan $101,666 - Moved to 2017/2018 with major system work. 4,510,707 Loan $5,201,175 - Moved to 2017/2018 with major system work. Asset Acquisition Projects - Caused by changes in levels of service Project Description Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Manapouri - Scheme Management 6,939 6,939 Rates Scheduled. Plan - plw52.a. Nightcaps - Scheme Management 4,164 4,164 Reserves Scheduled. Plan - plw76.a. Ohai - Resource Consent Project - 20,817 20,817 Reserves Scheduled. plw91.a. Ohai - Flowmeter - ww2208.a. 6,234 6,204 Reserves Scheduled. Ohai - Larger pump - ww2210.a. 2,078 2,078 Reserves Scheduled. Explanation of Variance Riversdale - Scheme Management Plan - plw123.a. Riversdale - Resource consent project - plw124.a. Riversdale - Oxidation pond -expand wetlands infiltration basin - ww2214.a. 4,163 4,163 Rates Scheduled. 20,817 20,817 Rates Scheduled. 20,780 24,797 Rates Moved to 2018/2019 Carry forward project plus inflation. Sewerage 91

94 Project Description Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance Stewart Island - Soakage fields 25,975 25,975 Reserves Scheduled. improvements / extensions - ww2220.a. Stewart Island - Pump shed at ponds - ww2224.a. 7,793 7,793 Reserves Scheduled. Te Anau - Te Anau/Manapouri 66,515 76,697 Reserves Moved to 2017/2018. treatment and disposal project - plw206.a. Te Anau - Te Anau/Manapouri 3,402,814 3,923,693 Loan Moved to 2017/2018. treatment and disposal project - plw207.a. Te Anau - Dusky Street - Upgrade 5,195 5,990 Reserves Moved to 2017/2018. pump - ww2227.a. Te Anau - Aparima Drive - Connect to 15,585 17,971 Reserves Moved to 2017/ mm main and upgrade pumps - ww2225.a. Wallace (Otautau) - Oxidation pond - 6,754 6,754 Rates Scheduled. ww2212.a. Wallace (Otautau) - River protection 88,959 Rates This item has been deleted as it is considered unplanned maintenance. works - plw104.a. Winton - Oxidation pond - ww2229.a. 467, ,550 Loan Scheduled with upgrade over two years. Winton - Treatment upgrade D. 1,029, ,000 Loan LTP programmed over two years. Sewerage 92

95 What does it cost? - Funding Impact Statement Sewerage LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) 3,239 3,283 3,269 Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered 2,503 10,167 3,009 Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 5,742 13,450 6,278 Applications of operating funding Payments to staff and suppliers 1,562 1,624 1,616 Finance costs Internal charges and overheads applied 3,032 10,773 3,447 Other operating funding applications Total applications of operating funding 4,595 12,397 5,062 Surplus (deficit) of operating funding 1,147 1,053 1,215 Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt 1,205 9,115 1,795 Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding 1,358 9,115 1,795 Applications of capital funding Capital expenditure - to meet additional demand 159 4, to improve the level of service 1,548 5,202 2,758 - to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 2,505 10,169 3,011 Surplus (deficit) of capital funding (1,147) (1,053) (1,215) Funding balance Funding Impact Statement Variances Internal charges income and expense, debt and capital works budgets have all reduced from the 10 Year Plan as a result of reprioritising a number of significant capital projects, including Te Anau sewerage scheme and Winton treatment upgrade. Sewerage 93

96 SIESA (Stewart Island Electrical Supply Authority) Aim - To provide a reliable electricity supply at the lowest sustainable cost which improves the environment and aesthetic values within the supply area whilst supporting the local economy. What we do SIESA is responsible for the generation and supply of electricity to consumers on Stewart Island/Rakiura, the development of renewable power generation and promotion of energy efficiency on Stewart Island/Rakiura. SIESA also undertakes waste collection and operation of the Rakiura Resource Recovery Centre. Why we do it SIESA primarily contributes to the Council s outcome supporting our communities. The activity contributes to this outcome by generating and supplying electricity which is essential for business, industry and residential needs. A single supply also makes it easier to proactively plan the electricity network to meet future demand and provides economies of scale with electricity provided at a lower cost than residents would be able to provide individually if they had to generate their own electricity from diesel generators. Energy efficient initiatives being carried out by SIESA also contribute to making homes warmer and healthier. What are the key issues for the activity? Renewable Energy Investigations - SIESA s operations continue to faces many challenges due to the remote location of Stewart Island/Rakiura and reliance on diesel for electricity generation. Increased costs in transport and oil continue to put pressure on the cost of electricity. Council has been investigating alternative methods of electricity generation. A feasibility study of alternative energy sources is underway and results are expected to be available in the 2013/2014 year. If and when, a viable option is identified, the Council will develop an energy strategy for the Island. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Financial Sustainability SIESA is able to operate in a cost effective manner. Responsiveness SIESA is responsive to customers needs. Target 13/14 Measurement Source SIESA is managed within +1% and -3% of annual budget. New measure 100% Financial Reports. Percentage of complaints/requests responded to within agreed Not measured 90% Monthly Reports. timeframes. 1 SIESA (Stewart Island Electrical Supply Authority) 94

97 Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Reliability All SIESA consumers connected are provided with reliable and continuous service. Target 13/14 Measurement Source Number of unplanned interruptions. 5 <6 Monthly Reports. 1. The timeframe for responding to a system fault is 30 minutes, for restoration of a system fault is 8 hours and for processing an approved new connection is 15 days. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? Residents, businesses and visitors on Stewart Island/Rakiura both create the need for and benefit from this activity. Electricity generation, distribution, general operations and maintenance are recovered through user pays fees applicable to consumers. Capital expenditure is funded from reserves, asset sales and though loans. Improvements to SIESA s assets identified in the Asset Management plan, to include the development of alternative energy sources (ie renewable energy) will be funded from a range of sources including user fees, externally sourced subsidies/grants, reserves and loans. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. SIESA (Stewart Island Electrical Supply Authority) 95

98 What does it cost? - Funding Impact Statement SIESA LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts 1,275 1,344 1,436 Total operating funding 1,275 1,344 1,436 Applications of operating funding Payments to staff and suppliers 1,221 1,248 1,238 Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 1,295 1,325 1,318 Surplus (deficit) of operating funding (20) Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (20) Increase (decrease) in investments Total applications of capital funding (20) Surplus (deficit) of capital funding 20 (20) (118) Funding balance Funding Impact Statement Variances SIESA revenue has increased as a result of a revised fee structure to assist with funding significant future capital works. SIESA (Stewart Island Electrical Supply Authority) 96

99 Solid Waste Management Aim - To maintain public health and reduce environmental harm through waste minimisation and recycling. What we do Solid Waste Management is focused on the controlled disposal of waste (kerbside collections and transfer stations), reducing litter and illegal dumping and promotion and advocacy of waste minimisation. Council provides kerbside collection service for rubbish and recyclables picked up on alternative weeks to all townships within the District and voluntary collection to properties on collection routes in rural areas. Stewart Island/Rakiura is serviced by a weekly kerbside refuse bag, recycling and food scrap collection. There are also seven waste transfer stations for disposal of rubbish, greenwaste, hazardous waste and collection of recyclables, 11 recycling drop-off centres and two greenwaste only sites located around the District. Regional waste is transported to the regional landfill operated by AB Lime at Kings Bend (near Winton) for disposal. Southland District Council is also a member of WasteNet Southland (joint committee of the Southland District Council, Invercargill City Council and Gore District Council) which provides the mechanism for councils in the region to work together collectively on waste issues, including delivering solid waste services and waste minimisation activities. Why we do it Solid Waste Management primarily contributes to the Council outcome making the most of our resources. The activity contributes to this outcome by providing controlled and convenient waste disposal options therefore reducing littering and illegal dumping which have a negative impact on the environment. In addition, the provision of kerbside recycling services, operation of recycling drop-off centres and other initiatives around waste minimisation help to reduce, re-use and recycle material reducing the amount disposed of to the landfill. What are the key issues for the activity? Closed Refuse Sites - The Council is aware of over 60 closed refuse sites across the District, some of which are on Council land and were historically owned and operated by Council as well as a number of others that were operated on private land with no Council involvement. These sites have been assessed in terms of the likely discharge and land use risks and are managed accordingly. The sites are mainly leased to the neighbouring property for use as grazing, planted for forestry production or are unused vacant land. Environment Southland is currently implementing a change around the management of discharges from closed landfill sites. This could have a financial impact on the Council however the timing of when this will be implemented and the details on its effects are not yet known and therefore has not been budgeted for in the 10 Year Plan. Review of Southland Waste Management and Minimisation Plan - Under the Local Government Act all territorial authorities are required to adopt a Waste Management Plan. Southland District Council through WasteNet formally adopted the Plan in December 2004 and this is now currently being reviewed to take into account new national legislation; the Waste Minimisation Act The new plan was adopted in June Solid Waste Management 97

100 Waste Minimisation Levy - Under the Waste Minimisation Act 2008, a $10 per tonne (excluding GST) levy on all waste sent to landfill has been imposed from 1 July The purpose of the levy is to create funding opportunities for waste minimisation initiatives and provide an economic incentive to polluters to change their behaviour. The levy will be charged at facilities where waste (including household waste) is disposed of and which operate, at least in part, as businesses which dispose of waste. Territorial authorities receive 50% of the total levy money collected and these payments are paid out on a population basis. Payments are made quarterly and must be spent on promoting or achieving waste minimisation and in accordance with waste management and minimisation plans. A waste minimisation fund has been set up with the remaining levy money, minus administration costs, to fund waste minimisation projects. Projects will be assessed according to a set of criteria established in consultation with the Waste Advisory Board. The Minister for the Environment has final approval on project funding. Based on current figures Council budgets to receive an annual income of $80,000 from the Waste Minimisation Levy, which is being used to pay for the purchase of the new wheelie bins following the introduction of the kerbside recycling service. Emissions Trading Scheme - The New Zealand Emissions Trading Scheme requires landfill operators to monitor and report on their level of carbon dioxide (CO 2 ) emissions from 2012 and to acquire one New Zealand Unit (NZU or unit) for each tonne of CO 2 emitted from This will result in an increase in costs for landfill operators and therefore this cost will be passed on to those using the landfill (such as Council) by increasing the charge for dumping waste. This anticipated increase has been factored into the Council s budgets from January The Emissions Trading Scheme does not include closed landfills. Price per tonne = $14 additional as at January What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. The KPI Percentage of waste (by weight) diverted from landfill target changed from 20% in to 25% for Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Access and Reliability Provide convenient solid waste management facilities and solutions throughout the District. Percentage of resident satisfaction with the services provided (refuse and recycling). Not measured in 2011/2012 as the survey is undertaken three yearly Target 13/14 W Bins - 90% TStn Lcn - 80% TStn Hrs - 80% Recy Lcn - 80% Measurement Source Three Yearly Residents Survey. Solid Waste Management 98

101 Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Sustainability Provide for the sustainable minimisation and management of solid waste quantity being generated within the District. Advice and support Provide guidance to the public about quality solid waste management practices. Percentage of waste (by weight) diverted from landfill. 1 20% not measured. Separate information was not obtained following the introduction of kerbside recycling. However, overall 29% of waste was recovered from landfill. Number of public education initiatives completed schools visited One information brochure 1. Weight calculations are estimated based on the number of collection containers processed multiplied by an average weight for different material types. 2. Public education initiatives include at least one additional information brochure every two years and at least 10 school visits per year. Note: That the targets above are the same for the next 10 years. Target Measurement Source 13/14 25% Operational records from contract and landfill reports. 10 school visits One information brochure Quarterly Report (WasteNet). Who benefits from the activity and how is it funded? All residents and visitors to Southland create the need for this activity. There is also a need for and education about waste minimisation. The benefits are distributed between residents of the area and the District as a whole where the environment is kept clean and waste is minimised. Litter collection from street bins is funded from local rates. Wheelie bin collection services (kerbside rubbish and recycling collections) are funded from targeted rates. Other operating expenditure under this activity should be funded: 40-75% funded through the Waste Management rate levied district-wide based on a targeted Uniform Annual Charge per rateable unit and a capital value rate; and 25-60% user charges via transfer station charges, these charges are standardised across the District. The Stewart Island Waste Management rate (including recycling) is funded through an uniform annual charge per separately used or inhabited part of a rating unit. Capital expenditure (such as land acquisition) is funded from reserves or rates, as appropriate. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Solid Waste Management 99

102 What does it cost? - Funding Impact Statement Solid Waste Management LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 2,057 2,102 1,875 Targeted rates (other than a targeted rate for water supply) 2,160 2,290 2,274 Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 4,865 5,045 4,633 Applications of operating funding Payments to staff and suppliers 3,621 3,790 3,464 Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding 4,583 4,774 4,383 Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes (243) (266) (245) Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding (243) (266) (245) Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (85) 5 5 Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (282) (272) (250) Funding balance Funding Impact Statement Variances Rates revenue, fee revenue and operating costs have decreased as a result of the reduced refuse being taken to transfer stations since the implementation of the wheelie bin collection service. Solid Waste Management 100

103 Stormwater Aim - To provide a reliable stormwater system to protect people and property from flooding. What we do There are 28 towns in the District that have reticulated stormwater infrastructure that is owned and maintained by the Council. These public stormwater systems manage the disposal of surface water and ground water flows, to protect property, public safety, accessways and public health. A number of other smaller towns have partial services such as open ditches and drains and soakholes and the Council manages open water courses in several rural catchments. Why we do it Stormwater primarily contributes to the Council s outcome making the most of our resources. The activity contributes to this outcome by preventing rainfall from causing flooding, hence protecting land and property. It also protects the environment and public health by controlling the level of pollutants and sediments in stormwater discharged to waterways or coastal areas used for recreation and food gathering. What are the key issues for the activity? Stormwater Consents - Environment Southland s Regional Water Plan requires the Council to more actively manage and monitor its stormwater discharges to minimise contamination of water ways from urban areas. Southland District Council is focused on ensuring the continued protection of the environment and has applied for resource consents for stormwater discharges in 17 townships. It will work towards achieving 100% compliance over the long term however, due to unknown consent requirements and potential issues with affordability, Southland District Council will have to prioritise the improvement work over the next 10 years. Southland District Council will work with Environment Southland over the timing and prioritisation of the improvement works. The Council is still in the process of obtaining resource consents for its stormwater systems. As the Council does not currently know the extent or range of issues which may arise from these consents Council has set a flat target of 50% compliance with resource consent conditions as a best estimate based on current monitoring done during the consent application process. There has not been any money allowed for in the budget during the period for significant improvement because of this unknown. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Stormwater 101

104 Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Target 13/14 Reliability Number of complaints about flooding in urban areas. 55 Less Maintain the drainage system to protect public and than 50 property during periodic rainfall events. 1 Quality Minimise effects on the environment by complying with discharge permits and resource consents. Percentage of monitoring results that show compliance with resource consent conditions.2 1. Periodic rainfall refers to a rainfall event which is expected to occur once every 50 years. 2. The target is yet to be determined as Council is awaiting Environment Southland consent requirements. Note: That the targets above are the same for the next 10 years. Not measured see footnote 2 Measurement Source Pathway 50% Council records Who benefits from the activity and how is it funded? Property owners benefit from flood protection and the community as a whole benefits from environmental, health and economic outcomes. Increasingly, spillage of chemicals (including detergents) into stormwater systems is creating a need to treat stormwater discharges. Local stormwater systems are funded through local rates. Roading stormwater systems (not in townships) are funded through the Roading rate (refer to the Roading and Transport section). Rates are used for both capital and operating expenditure. Loans and reserves may also be used. New developments may also contribute to capital works, or financing costs, through financial or development contributions where applicable. What are the projects and variances from the 10 Year Plan? Operating and Maintenance Projects Project Description Wallace (Otautau) - Maintenance to stormwater drains - pls87.a, pls87.b Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance 5,308 5,308 Rates Transferred to Area Engineer budget. Renewals Projects Project Description Te Anau - Replace stormwater sump laterals - pls81.c Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance 5,310 Rates Transferred to Area Engineer budget. Stormwater 102

105 Project Description Stewart Island/Rakiura - Reticulation B Woodlands - Reticulation condition assessment - pls104.a Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance 122,587 Rates New project. 1,173 1,173 Reserves Transferred to Area Engineer budget. Asset Acquisition Projects - Caused by changes in levels of service Project Description Colac Bay - Strategic assessment - pls4.b Long Term Plan 2013/2014 $ Annual Plan 2013/2014 $ Funding Explanation of Variance 10,970 10,970 Reserves Postponed to 2016/2017 pending outcomes of Environment Southland review of their costal plan. Winton - Reticulation upgrade Albert Street - pls100.a 283,696 Loan Moved to 2015/2016 to align with PLS.99A ($302,729 in 15/16) Stormwater 103

106 What does it cost? - Funding Impact Statement Stormwater LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service 1, to replace existing assets Increase (decrease) in reserves (996) (12) 310 Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (39) (41) (95) Funding balance Funding Impact Statement Variances Rates revenue, debt and reserves have increased as a result of a negative stormwater reserve being repaid by way of loan. Rates revenue has increased as a result of the repayments required on the Te Anau stormwater loan. Level of service capital works has decreased as a result of the deferral of a significant project in Winton, as detailed above. Renewal capital expenditure has increased due to the inclusion of a stormwater project for Stewart Island/Rakiura, not previously budgeted for in 2013/2014. Stormwater 104

107 Strategy and Communication Aim - To ensure Council's direction is in line with community expectations by keeping communities informed and giving them the opportunity to contribute to decisions which affect or interest them. What we do Council s planning processes, along with the development of policy, are the main ways that Council, community boards and community development area subcommittees have to ensure community requirements and priorities are identified and appropriate actions undertaken. The Council s 10 Year Plan which is produced every three years (as required under the Local Government Act 2002) sets out the Council s outcomes and how its activities will achieve these, including associated 10 year financial forecasts and targets. In other years, an Annual Plan is prepared which contains the proposed annual budget and performance targets, noting any variation from the 10 Year Plan in particular. An Annual Report is prepared that details achievement against targets for the previous year. Why we do it Strategy and Communication primarily contributes to the Council outcome being an effective Council. The activity contributes to this outcome by ensuring decisions are forward looking and in line with the communities expectations. As this activity enables the communities to engage with decision-making, it also empowers citizens. Robust strategy and communication in particular also enhance the communities confidence in their leaders by ensuring that people are informed of Council s decisions and have the opportunity to participate. What are the key issues for the activity? Consultation - Finding the right balance between over and under consulting and planning can be difficult for Council. Council has many planning and reporting responsibilities under the legislation and it takes considerable resources and time to fulfil these requirements while doing them in a way that is understandable for the community. This is complicated further by the fact that there are many different communities in the District, with diverse views and opinions. Keeping them informed of issues which may affect or interest them is a challenge. As a result, Council relies on these communities to let it know their views, whether informally or formally. Council invests in regular newsletters and advertising to make sure people are aware of what is going on and provides them with opportunities to become involved if they choose. Council is aware of the push to provide e-services, but is also very conscious of the number of District residents who do not use the internet either because they do not choose to use online services or due to affordability or coverage issues. Council will continue to monitor its website for usage and demand. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Strategy and Communication 105

108 Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quantity The community is regularly kept informed of Council issues and matters of interest. Quality Council encourages input into its planning. Note: That the targets above are the same for the next 10 years. Percentage of residents who have read at least one issue of the Council s newsletter First Edition. Number of positive stories published in the Southland Times and Otago Daily Times. Percentage of residents satisfied with the level of consultation with the community, undertaken by Council, over important issues. Target 13/14 Measurement Source Not measured 85% Three Yearly Residents Survey New measure 40 Newspaper records Not measured 80% Three Yearly Residents Survey Who benefits from the activity and how is it funded? The whole District benefits from long term and robust plans and activities that meet the needs of the community. Council believes that the activity should be largely funded by the Strategy, Policy and Planning rate which is made up of a Uniform Annual Charge per rateable unit and a capital value rate. Additional funding may come from projects for external organisations that Council has connections with and may provide support to, from time to time. Capital costs for this activity are limited to the usual overheads - office buildings, vehicles and equipment - and are funded through accumulated depreciation (vehicles only) and loans for large projects (usually internal), all of which are recovered through rates. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Strategy and Communication 106

109 What does it cost? - Funding Impact Statement Strategy and Communication LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties 1,398 1,441 1,477 Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 1,443 1,488 1,522 Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied 1,398 1,441 1,477 Other operating funding applications Total applications of operating funding 1,443 1,488 1,522 Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Strategy and Communication 107

110 Te Anau Airport Manapouri Aim: To provide a safe and reliable airport in the Te Anau Basin. What we do The Council owns and manages the Te Anau Airport Manapouri site. The Te Anau Airport Manapouri functions for all aircraft including, heavy aircraft and includes a function centre as part of the airport for hire. Why we do it Te Anau Airport Manapouri primarily contributes to the Council outcome supporting our communities. The activity contributes to this outcome by providing the infrastructure to support aviation related transportation service to local tourism operators, industries and residents. The airport also provides for air-based emergency access which can act as an alternative to road transport in an emergency. What are the key issues for the activity? Airport Rate, Use and Performance Measures - The Te Anau Airport Manapouri rate will remain the same as the 2012/2013 rate of $130. Council will continue focussing on marketing the airport to increase use. The airport has recently undergone an extensive upgrade to the runway to cater for large aircraft. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Target 13/14 Measurement Source Reliability and Safety Provide accessible, reliable and safe air facilities and operations for the Te Anau Basin. Financial Sustainability Managing the Asset in a business-like way, with a long term focus. Note: That the targets above are the same for the next 10 years. Percentage of Civil Aviation Authority guidelines complied with. 100% 100% Audit - Civil Aviation Authority. Percentage of revenue achieved against target. New measure. 100% Statement of Financial Performance. Who benefits from the activity and how is it funded? The Te Anau Ward gains economic benefit from moving goods and people in and out of the Te Anau Basin. Council aims to fund operating costs through user charges, with contributions from local rates by Uniform Annual Charge on all rateable units in the Te Anau Ward (Airport Rate) to make up any shortfall. Te Anau Airport Manapouri 108

111 What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. What does it cost? - Funding Impact Statement Te Anau Airport Manapouri LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (192) (193) (186) Funding balance Funding Impact Statement Variances Other revenue has decreased due to lease income no longer being generated from this site since the sale of the old airport at Waiau in October Payments to suppliers has decreased as a result of cost savings identified. Te Anau Airport Manapouri 109

112 Water Supply Aim -To provide a reliable and adequate supply of water, which in urban areas is safe to drink and capable of meeting firefighting requirements. What we do The Council operates 12 drinking water supplies (10 urban and two rural) and nine untreated water supplies for rural use (stock and irrigation). This includes capital works and maintenance of systems. Why we do it The Water Supply activity primarily contributes to the Council s outcome supporting our communities. It contributes to this outcome by providing people with safe drinking water as well as water to clean with. The firefighting capability of the water supply also helps improve the safety of people in their homes. What are the key issues for the activity? District Funding of Water Supply Schemes - There are a number of water supply schemes throughout the District that are ageing and require replacement work to be carried out over the coming 10 year period and beyond. Council is concerned about the ongoing affordability of these schemes and as a result moved to District funding for Water and Sewerage services as a means of addressing these concerns. District funding includes pooling costs for operating expenditure, planned and future renewals and other capital expenditure. It does not include costs relating to the construction of new schemes. Water Quality - The Ministry of Health has conducted a review of the eligibility criteria for drinking water subsidies. The outcome was the criteria remain largely unchanged but will be restricted to those communities with a deprivation index or score (DI) of 7 and above (based on geographical meshblock areas). This means Southland District communities that require upgrades are not eligible for the subsidies. Water Quantity - In the future there may be a scarcity of good quality water for drinking in Southland. This is because in some parts of Southland, water resources are nearly fully allocated and communities are beginning to face competition for water with agriculture and industry. The quality of water is also an issue in some areas with this plan including a number of projects to improve water treatment processes. This is a longer term issue around sustainable use of natural resources and Council will continue to work with Environment Southland and other organisations in an effort to protect community drinking water resources for the future. Local Issues: Riverton Ward - Council is continuing work to improve the quality of drinking water in Riverton with a possible new source of water found north east of the township and is currently upgrading the water treatment plant in 2013/2014. There have been delays on this project due to a subsidy application from the Ministry of Health for the treatment upgrade being declined. This will now be funded by a loan paid back through rates. Council has undertaken further consultation with the community including tasting of the new supply. Tuatapere Ward - The Tuatapere water scheme needs to be upgraded to meet central government s new Drinking-water Standards and to renew old infrastructure. These projects have been planned for the last few years however were deferred in 2012/2013 due to the outcome of the Ministry of Health subsidy funding review. The upgrades are largely complete. Water Supply 110

113 Projects are underway to upgrade water treatment plants at Te Anau, Winton, Otautau and Mossburn. It is expected that all work will be completed during 2013/2014. None of the upgrades qualify for a subsidy. Currently there are issues with the Eastern Bush/ Otahu Flat water source becoming contaminated when river levels rise. The current treatment processes are inadequate in these circumstances and become ineffective due to greater amounts of organic matter in the water. This has resulted in the scheme being on a permanent boil water notice. Projects to improve the water intake and treatment facility are planned to meet Drinking-water Standards. This is expected to cost around $600,000. Design and investigation work will be undertaken during 2013/2014. Te Anau Ward - The Te Anau water supply needs additional treatment processes installed to meet central government s new Drinking-water Standards. As a result, treatment projects have been planned in 2012/2013 and 2013/2014 at a cost of around $560,000. Te Anau is not eligible for a Ministry of Health subsidy therefore will be paid for primarily by a loan repaid over time through rates. Winton Ward - The Winton water supply needs additional treatment processes installed to meet central government s new Drinking-water Standards. As a result, treatment projects have been planned in 2012/2013 and 2013/2014 at a cost of around $1M. Winton is not eligible for a Ministry of Health subsidy therefore will be paid for primarily by a loan repaid over time through rates. Five Rivers Ward - A project to improve the quality of drinking water in Mossburn is planned for 2013/2014 at a cost of around $350,000. The project is no longer eligible for Ministry of Health funding and therefore will be primarily funded by financial reserves and a loan which is paid back through rates. Rural Water Supplies - Rural water supplies are for stock use and not of drinking water quality. Rural water supply schemes that are excluded from District rate include: Matuku, Te Anau Rural Water Supply (Duncraigen, Takitimu, Mt York, Princhester, Ramparts, Kakapo and Homestead), Five Rivers. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. Water Supply 111

114 Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Quality Provide urban water supplies that are safe and promote public health. Quantity Provide a water supply adequate for firefighting in urban areas. Responsiveness Prompt response and resolution to requests for service. Percentage of urban water supply tests that meet the bacteriological requirements of the New Zealand Drinking-water Standards 2005 reticulation. Percentage of customers satisfied with the quality of Council supplied water. Target 13/14 100% 100% WINZ 1 Measurement Source Not measured >90% Three Yearly Residents Survey All hydrants annually checked for operational availability and 100% 100% Hansen IMS comply with functionality tests. 2 Resolve customer requests for services within time set for type New measure >90% Hansen IMS of problem Water Information New Zealand (WINZ) is a national database of all community drinking water supplies used to determine the public health grading. 2. Functionality tests check whether the hydrant is unobstructed, can open and close easily and whether water flows at a rate that could reasonably be used to suppress a fire. 3. Response will be within one hour and then resolution within six hours following that. Note: That the targets above are the same for the next 10 years. Who benefits from the activity and how is it funded? Benefits are distributed to the community as a whole. Residents have access to a safe water supply that they do not have to maintain themselves. The local economy benefits through tourism (safe water supply encourages tourists), industry and agriculture (water supply certainty). From 1 July 2012 water supply is funded by a single rate targeted to those receiving services (or able to be connected) with the rate calculated based on the cost of the entire network of the water scheme. The rate includes operating and capital costs with the exception of new scheme capital. District funding will apply only to urban water schemes that is potable water, and not rural water supply. Rural water supply is purely for private economic benefit, and therefore user-pays is the most appropriate cost recovery method for the following schemes: Matuku; Te Anau Rural Water Supply (Duncraigen, Takitimu, Mt York, Princhester, Ramparts, Kakapo and Homestead); Five Rivers. Council also has three mixed schemes (Lumsden/Balfour, Eastern Bush/Otahu Flat and Orawia) where these are used for both drinking and stock water. These will be District funded. Water Supply 112

115 What are the projects and variances from the 10 Year Plan? Renewal Projects Project Description Long Term Plan 2013/2014 Annual Plan 2013/2014 Funding Explanation of Variance Eastern Bush - Reticulation renewal - $250,243 Loan $268,585 moved to 2015/2016 along with shared projects from Otahu Flat. pl37.b. Eastern Bush - Replace rising main - wa3201.a. $187,020 Loan $200,728 moved to 2015/2016 along with shared projects from Otahu Flat. Eastern Bush - Replace pump - $5,715 Loan $6,134 moved to 2015/2016 along with shared projects from Otahu Flat. wa3202.a. Lumsden - Water main - wa3034.a. $71,691 Loan Project moved to 2014/ note this project is actually Lumsden/Balfour. Lumsden/Balfour RWS - Reticulation renewal -pl84.a. $24,136 $24,136 Rates Scheduled. Manapouri - Electrical upgrade - $59,754 Reserves Moved to 2014/2015. pl105.a. Matuku RWS - Electrical upgrade - $18,102 Loan Moved to 2014/2015. pl16.a. Mossburn - Pipe renewal - wa3207.a. $52,470 Rates Moved to 2014/2015 as condition is not critical at this stage. Ohai/Nightcaps/Wairio - Condition $6,939 $6,939 Reserves Scheduled. assessment - pl132.a. Ohai/Nightcaps/Wairio - Lateral $83,120 Reserves Moved to 2014/2015 to align with WA3208B. replacements - wa3208.a. Otahu - Reticulation Renewal - pl37.a. $333,658 Loan $358,113 moved to 2015/2016. Otahu - Replace rising main - $187,020 Loan $200,728 moved to 2015/2016. wa3210.a. Otahu - Replace pump and meter - wa3211.a. $9,351 Loan $9,678 moved to 2014/2015. Riverton - Reticulation renewal - $6,906 $6,939 Rates Scheduled. pl171.a. Riverton - Replace pipe - wa3215.a. $15,585 $15,585 Rates Scheduled. Te Anau RWS (Duncraigen) - Reticulation renewal - pl36.a. Te Anau RWS (Duncraigen) - Pump replacement - pl36.b. $6,939 $6,030 Loan Scheduled. $15,266 $15,266 Loan Scheduled. Water Supply 113

116 Project Description Te Anau Rural Water Supply (Homestead) - Rising main renewal - pl63.a. Te Anau Rural Water Supply (Kakapo) - Rising main renewal - pl69.a. Te Anau Rural Water Supply (Kakapo) - Storage improvements - pl70.a. Te Anau Rural Water Supply (Kakapo) - Reticulation renewal - pl71.a. Te Anau Rural Water Supply (Princhester) - Pump replacement - pl227.a. Te Anau Rural Water Supply (Ramparts) - Reticulation renewal - pl228.a. Te Anau Rural Water Supply (Takitimu) - Rising main renewal - wa3216.a. Te Anau Rural Water Supply (Takitimu) - Replace line - wa3217.a. Te Anau Rural Water Supply (Princhester) - Reline interior of pump station - wa3213.a. Long Term Plan Annual Plan Funding Explanation of Variance 2013/ /2014 $233,638 Loan $249,151 moved to 2016/2017. $91,597 Loan $102,046 moved to 2016/2017. $83,270 Loan $92,769 moved to 2016/2017. $35,528 Loan $11,102 Loan $11,491 moved to 2014/2015. $21,450 $21,450 Loan Scheduled. $124,680 Loan $124,044 moved to 2014/2015. $12,468 $12,468 Loan Scheduled. $5,195 Loan $5,377 moved to 2014/2015. Te Anau - Pump replacement - pl190.a. $13,082 $13,082 Reserves Scheduled. Te Anau - Pipe connection - wa3218.a. $15,585 $15,585 Reserves Scheduled. Tuatapere - Reservoir link - wa3222.a. $15,585 Loan Work completed due to urgency. Winton - Reticulation renewal - pl222.a. $852,966 Loan $915,484 moved to 2015/2016. Winton - Pump replacement - pl232.a. $159,600 $159,600 Loan Scheduled. Water Supply 114

117 Asset Acquisition Projects - Caused by changes in levels of service Project Description Long Term Plan Annual Plan Funding Explanation of Variance 2013/ /2014 Eastern Bush - Treatment upgrade - $110,838 Loan $118,962 moved to 2015/2016. pl32.b Eastern Bush - Intake upgrade - pl39.b $160,111 Loan $171,846 moved to 2015/2016. Otahu - Intake upgrade - pl39.a $160,111 Loan $171,846 moved to 2015/2016. Otahu - Treatment upgrade - pl32.a $154,501 Loan $165,825 moved to 2015/2016. Matuku - Pump - wa3205.a $5,195 Loan Deleted. Matuku - Pump - wa3206 $3,117 Loan Delete - replaced under Operation & Maintenance Contract. Riverton - Public Health Risk $5,687 $5,687 Rates Scheduled. Management Plan - pl241.a Te Anau - Telemetry Sandy Brown $15,585 $15,585 Reserves Scheduled. Road booster - wa3220.a Te Anau - Treatment Upgrade - pl29b - $530,000 Loan Two year project Tuatapere - Public Health Risk $5,687 $5,687 Reserves Scheduled. Management Plan - pl214.a Tuatapere - Dosing pump - wa3221.a $7,273 $7,273 Rates & Reserves Scheduled. Water Supply 115

118 What does it cost? - Funding Impact Statement Water Supply LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) 2,705 2,841 2,749 Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered 5,378 2,984 2,134 Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding 8,299 6,009 5,144 Applications of operating funding Payments to staff and suppliers 1,825 1,901 2,002 Finance costs Internal charges and overheads applied 5,783 3,635 2,536 Other operating funding applications Total applications of operating funding 7,608 5,535 4,538 Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt 4,600 3,219 1,634 Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding 5,301 3,219 1,634 Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service 3, ,827 - to replace existing assets 2,006 3, Increase (decrease) in reserves Increase (decrease) in investments Total applications of capital funding 5,992 3,693 2,240 Surplus (deficit) of capital funding (691) (474) (606) Funding balance Funding Impact Statement Variances Changes to the timing of projects predominantly deferred from 2013/2014 to later years as outlined above, has resulted in a decrease in rates revenue, internal charges income and expense, capital costs, fees and charges revenue has increased as a result of changes proposed to water meter rates. Supplier payments have increased as a result of more accurate financial information being available under the new District funding methodology. Water Supply 116

119 Work Schemes Aim - To co-ordinate community based projects which provide opportunities for individuals to fulfil community service commitments. What we do The Council runs work schemes, which involves community service participants with the opportunity to work on various projects throughout the Southland District. In particular, the scheme provides community service participants with a way of completing their court directed community services sentences. Why we do it The Work Schemes activity primarily contributes to the Council s outcome supporting our communities. It contributes to this outcome by making it possible for small communities to undertake projects such as township maintenance and beautification where they otherwise would not be able to due to costs or lack of resources. It also promotes safe places by providing accountability for crimes. What are the key issues for the activity? Cost Recovery - In the past, Work Scheme user survey results have shown that customers are either satisfied or very satisfied with the cost and work undertaken by the Work Scheme. Communities also benefit from the cost effectiveness of the Scheme as work can be undertaken in a cost effective manner due to the number of participants able to work on one job. Although the activity aims to recover all of its costs for the running of the scheme it has struggled to achieve this in the past. Council has looked at how it can run the scheme more efficiently, its future direction and options for the future. These changes will not influence participants access to the scheme and will ensure that communities will still be able to undertake projects at a low cost. What level of service will Council provide? The intended level of service for 2013/2014 is set out in the 10 Year Plan. There are no changes to the level of service for this activity for 2013/2014. In the 10 Year Plan the focus of the Work Scheme activity has changed. Rather than aiming to develop the skills of participants and helping them to gain employment the focus has now shifted to completing community projects and providing opportunities for individuals to fulfil their community service commitments. This is because the majority of participants are now those serving community service sentences, referred on from Probation, rather than participants referred on from Work and Income New Zealand. The Department of Corrections also gives the Work Scheme the opportunity to apply for funding. This change has been reflected in the levels of service and performance measures below with previous measures relating to skill development and employment removed. Work Schemes 117

120 Performance measures Community Outcome: A treasured environment which we care for and which supports us now and into the future (6). Council Outcome: Supporting our communities - to be a desirable place to live, grow up, work, run a business, raise a family and enjoy a safe and satisfying life. Level of Service Key Performance Indicator Actual 11/12 Access Provide a workforce to carry out a range of community projects. Access The scheme provides opportunities for community service sentences to be served. Target 13/14 Measurement Source Number of community service hours completed each year. New measure 9,000 Participant records Percentage of community service participants who gain entry to the work scheme on probations specified start date. 100% 100% Participant records Quality Work completed through the Work Scheme is 'fit-forpurpose'. Note: That the targets above are the same for the next 10 years. Percentage of clients satisfied that the work is completed according to the specifications. 75% 100% Survey - User Who benefits from the activity and how is it funded? These benefits are distributed to communities in which projects are carried out. The majority of funding is sourced from the users of the service, with some contributions from central government and the Council Offices and District Support rates. What are the projects and variances from the 10 Year Plan? There are no projects scheduled for this activity in 2013/2014. Work Schemes 118

121 What does it cost? - Funding Impact Statement Work Schemes LTP LTP Annual Plan $ $ $ Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates (other than a targeted rate for water supply) Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus (deficit) of operating funding Sources of capital funding Subsidies and grants for capital purposes Development and financial contributions Increase (decrease) in debt Gross proceeds from sale of assets Lump sum contributions Total sources of capital funding Applications of capital funding Capital expenditure - to meet additional demand to improve the level of service to replace existing assets Increase (decrease) in reserves (12) Increase (decrease) in investments Total applications of capital funding Surplus (deficit) of capital funding (17) (17) (17) Funding balance Funding Impact Statement Variances There are no significant variances from the 10 Year Plan for the 2013/2014 year. Work Schemes 119

122 Council Controlled Organisations This section provides an overview of CCOs and their activities. Council Controlled Organisations 120

123 Milford Community Trust Background The Milford Community Trust was established in 2007 to provide leadership, governance and supply infrastructure services for the Milford Sound community. The Trust allows local people to determine their priorities and provides appropriate consultation and open public meetings, similar to one of Council s community boards. Ownership and Control of the Organisation The Milford Community Trust was established following a process of consultation with residents, agencies and businesses with interests in Milford Sound in accordance with the special consultation process set out in the Local Government Act In terms of the Local Government Act, the Trust is defined as a CCO reporting to the Southland District Council. The Trust was incorporated under the Charitable Trusts Act 1957 on 18 May The Charities Commission has approved the Trust as being exempt for tax purposes. The Trust is governed by a board of seven trustees. Current representatives from stakeholder groups are shown in Table 1. Table 1: Milford Community Trust Representatives Designation Name Term Expires Independent Chair Michael Schuck 30 June 2014 Te Anau Ward Councillor* Diane Ridley 12 October 2013 Milford Community Association Lou Huia 30 June 2014 elected representative Milford community appointee Andrew Welsh 30 June 2016 Milford community appointee Paul Phelan 30 June 2016 Milford community appointee Rob Burnell 30 June 2015 Milford community appointee Natalie Shanks 30 June 2015 * The term will expire at the time of the October 2013 Elections Significant Policies The Trust has developed a comprehensive Communications Policy of its own in relation to its activities. It is expected that a full set of relevant policies will be developed within the period covered by its current Statement of Intent, The Council itself does not have any significant policies in relation to the ownership and control of the organisation except for the Trust Deed which sets out the way in which business of the Trust is to be conducted. Nature and Scope of Activities This extract is from the Statement of Intent and is subject to change after consultation with stakeholders. Milford Community Trust s vision is the long term sustainability of Milford Sound/Piopiotahi. Outputs from the Milford Community Trust activity primarily contribute to the achievement of the Our Way Southland Community Outcome Six - A treasured environment which we care for and which supports us now and into the future. The planned activities of the Trust in 2013/2014 are: Facilitate housing of emergency response equipment and vehicle. Facilitate with other organisations for improvements in the public facilities at Deepwater Basin through the Concept Plan for this area. Working with other organisations to advocate for public toilets and a shelter at the airport and completion of the walking track to the Lodge. Work with other organisations and seek external funding for proposed improvements to Deepwater Basin. Assist the Milford Community Association in the development of a village green. Promote development of a community centre. Milford Community Trust 121

124 Prioritise the emergency response building during this 12 month period. Facilitate camping ground facilities with affected organisations. Facilitate development of the Milford Emergency Response Team station including medical support and services. What are the Issues? (as per the 10 Year Plan) In February 2008 government approved $13.1M in funding to DOC to undertake flood protection measures in Milford Sound/Piopiotahi alongside the Cleddau River and on the Cleddau Delta. The area is being upgraded to protect the area against a one in 100 year flood event as well as allowing for sea level rise and climate change. Key Performance Measures and Targets Community Outcome: A treasured environment which we care for and which supports us now and into the future (6) What will be provided How we will measure the service provided Level of Service Key Performance Indicator Actual 11/12 Maintain a structure that facilitates local decisionmaking. Keep the Milford Sound community informed about Community newsletters (Feb, June, Oct, Dec each year), inserted in Trust plans and outcomes. local paper Fiordland Advocate. Target 13/14 Measurement Source Hold public forums in Milford Sound each year. 1 1 Agenda/minute records on file. 3 4 Agenda/minute records on file. Provide leadership and advocacy on major issues. Number of Milford Community Trust meetings held annually. 4 4 Agenda/minute records on file. Response to issues raised by the community. Percentage of issues raised at Milford Community Association meetings responded to prior to next meeting. 100% 85% Action Sheets. Budgeted Operational and Project Costs (excl GST) Activity Description 2013/ / /2016 Operational Costs: Management/Administration 1 $32,112 $31,383 $30,944 Operations & maintenance $15,000 $15,000 $15,000 Projects: Project Development (Planning) $5,000 $5,000 $5,000 Emergency Response Building $79, Emergency Service Provider $30,000 $30,000 $30,000 Sources of Funding Southland District Council - The Council will provide administration and technical advice to support the Trust and contribute to the costs of the independent chairperson. This administrative portion of the operations will be funded by Council the same as in any other community in the District with community boards and community development area subcommittees. Total (funded from Milford Sound Community) $161,405 $81,383 $80,944 1 Management/Administration costs include Chairperson s fees, Trustees fees, mileage allowances, insurance, accommodation costs and general meeting costs. Milford Community Trust 122

125 Milford Sound - The operational and project costs detailed in Table 2 are those which the Milford Community Trust considers will provide benefit for the concessionaires at Milford Sound and should be recovered from the Milford Sound concessionaires through the implied concessionaire fee, apportioned as per the Department of Conservation apportionment of cost schedule. The annual concession charged will cover the forecast total expenditure (operational and projects) for the three year period to June Given the level of projects forecast in this period, the annual concession has been staged in $20,000 increments. The existing cash reserve of $20,000 will be utilised in 2013/2014 to assist in funding the Emergency Response Team building project (totalling $85,000). Utilisation of this cash reserve will reduce the level of short-term borrowing required by the Trust to fund this project. The forecast level of concessions charged over the three year period will ensure that the $20,000 cash reserve is reinstated from 2014/2015 and will assist with building further reserves to assist in funding future projects. For 2013/2014 the total amount being sought from concessionaires is $85,000 excluding GST. Other - There are a number of projects that will be funded via grants from funding agencies. The main project is the construction of the Emergency Response building. The Trust has accepted a quotation of $200,077 conditional to the Southern Rural Fire Authority securing funding from funding agencies. In regards to the latter, funds have been secured from Central Lakes Trust, the Community Trust of Otago and the New Zealand Rural Fire Authority. The Trust has committed to a grant of $85,000. The majority of which will be paid in 2013/2014 to fund the projected shortfall of the construction of the Emergency Response Team building. Milford Community Trust 123

126 Strategy and Policy ANNUAL PLAN 2013/2014 This section details any changes that have been made to Council s key strategies and policies since 2012/2013. Strategy and Policy 124

127 Development and Financial Contributions Policy PART 1 - THE POLICY KEY CHANGES TO THE POLICY A comprehensive review of the Development and Financial Contributions Policy occurred during the development of the 10 Year Plan Amendments to the policy are minor and the scope of the review was limited to checking the validity of calculation methodology. Council considers that this methodology provides an accurate reflection of demand, having cross checked outcomes against other data and found there to be a high degree of consistency. Key changes to the policy are: An update of the capital expenditure costs for water and sewage demand projects. An update of household unit equivalent based on the most recent available data. The removal of the 8% maximum peak population from calculations. This was previously included as a contingency measure to allow for un-predicted growth. It has been removed to take into account external factors which are likely to have influenced visitor and resident numbers since the time projections were undertaken. These include the Christchurch earthquake, the global financial crisis and the negative impacts of petrol prices. To enhance the clarity of the policy, some minor wording changes have also been made, however these are of an explanatory nature and do not change the meaning of the policy. 1.1 Objectives To ensure that all new developments contribute fair and reasonable funding towards the costs of avoiding, remedying or mitigating adverse social, economic, environmental and cultural effects on the District, or parts of the District, arising from developments. To make provision for the long term sustainable development of infrastructure within a framework of fair and prudent stewardship. To provide certainty to developers and to Council as to the assignment of infrastructural costs related to developments and the reasons for this assignment. Development and Financial Contributions Policy 125

128 1.2 Background and Scope of Application This policy represents a significant change from the previous Development and Financial Contribution Policy, as contained in the LTCCP, with this new policy applying in significantly fewer instances. Previously, the policy applied to all Southland District communities where developments proposed to connect to reticulated services. However, the application of the previous policy resulted in persons undertaking new developments in the District often being subject to a contributions regime which was often quite punitive in relation to the value of the development itself. Southland District Councillors have been conscious of this and the fact that development levies and financial contributions have previously often been a significant impediment or barrier to new economic development proceeding; which is contrary to the Council s aspirations of a diverse economy built from our strengths for growth and prosperity as articulated in the Our Way Southland document. The Council also recognises that when new developments occur, these often contribute significantly to ongoing community wellbeing and also contribute financially on an ongoing basis via the Rates System. In recognition of this, the Council has removed most contributions from all parts of the District, with the exception of Te Anau, as specified in the policy below. The reason for this is that Te Anau has significant growth-related expenditure projects for water and sewerage in the period of this LTP; but other communities do not have such growthrelated expenditure forecasted and often already have existing excess capacity in their reticulated systems. The only other area where the Council will charge financial contributions in terms of this policy is in the area of roading contributions, as per Section 1.8. The Council considers that it is fair and reasonable that new developments which impose significant additional demand on the Council s roading network pay for the cost of this demand, rather than the general ratepayer paying such costs. The Council is conscious that new growth pressures can arise quite quickly and can hence quite rapidly impose additional costs on communities. Therefore, during the life of the LTP the Council will monitor the appropriateness of this new policy and change it if necessary, following the relevant statutory processes. 1.3 Principles New development is to contribute to the expected share of capital expenditure on network and community infrastructure required for that development based on the average cost allocation method. Development contributions and financial contributions are to be based on the likely and foreseeable public capital expenditure that Council expects to incur from growth in the District. Development contributions and financial contributions are to be applied in a fair and equitable manner that is financially transparent while having due regard to Council s other financial management policies. The value of development contributions collected and the usage of these contributions each year are to be reported in Council s Annual Report. The quantum of development contributions and financial contributions are to be reviewed through the LTP or on an annual basis having regard to changes in population projections, project programming, construction costs and design estimates. 1.4 Definitions A schedule of defined terms is attached in Appendix Legislative Framework Section 102(4) of the Local Government Act 2002 (LGA) requires Council to adopt a policy on development contributions as authorised by the LGA or financial contributions as authorised by the Resource Management Act 1991 (RMA). Development and Financial Contributions Policy 126

129 Section 106 of the LGA set out the requirements of the policy. Sections and Schedule 13 cover the application and calculation methodology related to contributions. Development contributions imposed under the LGA may be in addition to and separate from financial contributions imposed under the RMA. Council s financial contribution regime is set out in the District Plan, Section 3.7 (Financial Contributions and Reserve Requirements). This information is summarised in Section 7 of this policy. 1.6 Rules Activities Funded by Development Contributions Contributions collected shall be used to assist the funding of new and additional: Reserves, sports facilities and town beautification. Water, sewerage networks and treatment. The reason why Council requires contributions towards the above facilities is that it has identified a close linkage between the need for additional facilities and the impact demands created by new development. Council is of the opinion that new developments should contribute equitably toward the provision of additional facilities, rather than imposing the full burden on other District ratepayers who may not gain any benefit from the development. Amount The development contribution amount for each activity is related to the portion of the capital works identified in the LTP as being required by growth demand. The calculation methods are as set out in Section 3 of this policy and the dollar amounts for the period 2012/2013 are set out in Appendix 2. No payment of contributions will be required under this policy if payment has already been collected for the same purpose under powers granted to Council by other legislation. The stated amounts for contributions are the maximum amounts. GST will be applied during the calculation of all contributions. Collection Timing Contributions shall be collected prior to the issue of one the following by Council: A resource consent under the RMA. A Section 224 completion certificate under the RMA. A building consent under the Building Act Authorisation for a connection for water, sewerage or stormwater. The applicant may pay the contribution required on issue of their choice of resource consent, completion certificate, building consent or connection to utilities. The same contribution may not be charged during the issue of subsequent consents for the same work but Council may charge additional development contributions where additional impacts are identified subsequent to the issue of an earlier consent. The amount of contribution for a staged development over an extended period shall be commensurate with the extent of the issued consent. Non Payment of Contributions In the event of non-payment of contributions Council may, pursuant to Section 208 of the LGA: Prevent the commencement of a resource consent. Withhold a Section 224(c) certificate under the RMA. Withhold a Code Compliance Certificate under the Building Act. Withhold an approval for service connection. In each case, register the contribution due under the Statutory Land Charges Registration Act as a charge on the title of the land in respect of which the development contribution was required. Adjustments, Objections and Remissions No adjustment of contribution amounts will be made having regard to the specific impacts of any one site unless the developer can demonstrate to Council that specific measures are being undertaken to address the impact and consequent demand on infrastructure. Development and Financial Contributions Policy 127

130 Any objection to a determination of an adjustment amount will be referred to Council s Resource Management Committee for review. The Committee s decision regarding adjustment will be final. Council, or the Council community board having jurisdiction over the assets for which contributions are being collected, may exercise a discretionary right to make grants towards the remission of development contribution levies as follows: Non-profit clubs and sport associations with a membership up to 75 full time equivalents may be entitled to a remission of 25%. Non-profit clubs and sport associations with a membership over 75 and up to 100 full time equivalents may be entitled to a remission of 12.5%. Such grants shall be paid from other (non asset) Council reserve accounts to the respective asset accounts. Refund of Unused Contributions Council will refund unused contributions, less the value of administration and legal costs incurred in relation to the development where: A consent lapses. Council does not utilise the contribution for the specified reserves purposes within 10 years. Council does not provide the reserve, network infrastructure, or community infrastructure for which the contribution was required. No interest will be paid on the principal value of unused contributions. Reporting Council shall report each year in its Annual Report: The amount and purpose of contributions collected per year for the last 10 years (from commencement of policy). Expenditure against the contributions. 1.7 Contribution Methods Development contributions calculated in accordance with Section 8 of this policy shall apply for: (a) All reserve contributions. (b) Water and sewerage contributions for Te Anau Financial contributions calculated in accordance with Section 3.7 of the District Plan shall apply for all resource consents, except in respect of: (a) (b) All reserve contributions. Water and sewerage contributions for Te Anau. 1.8 Financial Contributions under the Resource Management Act The amount of each financial contribution imposed under the RMA shall be calculated in accordance with Section 3.7 of the District Plan. In summary, the contributions payable are as follows: (a) (b) (c) Esplanade Reserves and Access Strips An esplanade reserve or strip 20 m wide where any land adjoins any river or lake. Roading Contribution Financial contributions shall be up to 50% of the costs of: (i) Offsetting the adverse effects of subdivision, development or land use on transport infrastructure; and/or (ii) Ensuring safe and adequate access (including but not limited to, roads, bridges, cycleways, pedestrian accessways, service lanes, private access, street lighting, signage, stormwater from roads) to sites and activities; and/or (iii) Providing for the needs of road users and those affected by activity on the road where there is a need to mitigate adverse effects of roading usage; and may comprise money, land or a combination thereof. Extraordinary Costs Full reimbursement to Council of actual extraordinary legal, survey or other administrative costs in excess of normal processing requirements. Development and Financial Contributions Policy 128

131 Please Note: Council s proposed District Plan has recently closed for public submissions and these provisions may change as a result of that process. 1.9 Development Contributions Reserve Contributions Reserve contributions shall be required as follows: (a) 7.5% of the value of additional allotments, at the time of subdivision consent (either in cash or land equivalent, at Council s option) except that in the case of rural residential and rural lifestyle subdivisions, the value of the rural allotment for this purpose shall be the proportional value of a house site of 1,000 m 2 within each allotment. Where an agreed current market value cannot be established by mutual agreement between Council and the developer, then the value will be that established by a registered valuer agreed by both parties and jointly retained, with the cost of the valuation fees being shared equally by Council and the developer. Network Infrastructure Contributions Each new development that generates additional demand shall pay network infrastructure contributions for water, sewerage and stormwater to address the effects of the development in proportion to a standard equivalent household, where a household equivalent is as defined in Appendix 1. Where a commercial development, for example, has an assessed impact equivalent to six households, it will be required to pay a contribution equal to six houses. (b) Cash equivalent of the value of 20 m 2 of land for each additional residential unit created, at the time of building consent, less any contribution made at the time of previous subdivision within the preceding five years. The assessments of contributions for one equivalent household are detailed in Part 3. The basis of calculation is set out in Part 2. (c) (d) (e) Cash equivalent of the value of 4 m 2 of land for each additional 100 m 2 of new, net, non-residential, building floor area created, at the time of building consent, less any contribution made at the time of previous subdivision within the preceding five years. Where the contribution is given as land, the location shall be suitable for the reserve purposes of the area and shall be no less than 1,000 m 2 in each separate title. Acceptance of land is at the discretion of Council. No reserve contribution shall be required for any allotment exceeding 4 ha in area. For the purposes of this policy, the land value used is to be the current market value, inclusive of GST, at the time of the application for consent or approval to connect to utility services. Community Infrastructure Contributions No community infrastructure contributions (such as contributions towards provision or upgrading of libraries) will be required until projects have been identified in the LTP and the amount of contribution approved through public consultation. PART 2 - CALCULATION METHODOLOGY 2.1 Development Contributions Schedule 13 of the LGA sets out the matters that must be identified in establishing a methodology for calculating development contributions. Council s are also required to demonstrate that the attribution of units of demand to developments are on a consistent and equitable basis. This includes the total cost of capital expenditure for the activity to meet increased demand resulting from growth as set out in the LTP and the share of that expenditure attributable to each unit of demand, using the units of demand by which the impact of growth has been assessed. Development and Financial Contributions Policy 129

132 Development (and Financial) Contributions are in addition to the costs of all necessary infrastructure within a development including the costs of service connections, the costs of extending/joining the development to the service and other consent fees. 2.2 Assumptions It has been assumed that development contributions will be required from all types of development that would result in an increase in demand on services and infrastructure. This includes greenfield development, infill development and changes of land use (eg, from office to restaurant). A number of assumptions are made in determining the development contributions. These include demand growth and population growth models, assessment of inflation, establishment of units of demand (UoD), number of equivalent households and assessments of demand driven capital expenditure expected over the next 10 years. These are discussed below and details of specific assumptions for each particular service/activity and locality are presented in the relevant Activity Management Plans which are based on Asset Management principles and professional judgement Overview The unit of demand is based on the equivalent household. The demand on services of any activity is generally calculated based on an assessment of the potential demand when the activity is established and operational, not on the actual demand created that may vary from time to time or between different owners/occupiers. It is also recognised that household units vary throughout the District and that the demands they generate also cover a broad range. However, given the relatively large range of development contribution areas and the implied averaging of household equivalents, the approach is considered appropriate as well as being consistent with the level of detail recognised by the growth predictions Residential Applications Every residential unit, whether a separate dwelling or part of an apartment complex equals one Household Unit. This is the same as one Unit of Demand (UoD). Each lot is taken as being intended for (a minimum) of one Household Unit. If additional dwellings are permitted on a single lot then the UoDs per lot will increase correspondingly Commercial Accommodation Commercial accommodation is usually made up of a number of beds catering for a maximum number of people rather than Household Units. The number of UoDs is calculated by using a Household Conversion Factor. For the purposes of accommodation facilities an equivalent household of four persons is used. Refer Part 3, Section as the basis for determining the unit of demand (UoD). This takes into account the additional impacts that visitors generate (eg, domestic purposes, laundry, washing facilities, etc). Given that each person staying in commercial accommodation is equivalent to 25 percent of a Household Unit, the conversion factor for commercial accommodation is For example, the UoDs arising from commercial accommodation catering for a maximum of 200 people is 50 units Non-Residential Applications For non-residential applications UoDs may be calculated for each activity using the following three methodologies: If demand is known (eg, traffic movements, volume of water usage) then use these to calculate the UoD; or Use generic demand figures for activity type (eg, Te Anau figures). If demand is unknown, use floor area conversions (generic for activity type) to estimate the UoD. Development and Financial Contributions Policy 130

133 2.2.5 Special Applications Where developments are not covered by the above or there are specific circumstances related to the applications these may be considered on a case-by-case basis. It should be noted as in Section 1.2 Assumptions, that the Units of Demand are based on potential demand not actual demand at any one time. Accordingly specific circumstances do not include those where the users do not utilise the full potential demand (eg, a hotel with a 50% occupancy rate will still be assessed at a 100% of the unit of demand relating to hotels; a house with one occupant will be assessed at the unit of demand for a household). 2.3 Population Growth The population growth models used to assess demand are detailed in the relevant Activity Management Plans and in Council assumptions for the LTP. 2.4 Levels of Service Development contributions will not be used to fund increased levels of service for existing users. 2.5 Capital Expenditure and Funding The total capital expenditure (CAPEX) required over the next 10 year period for each service/activity is outlined in the relevant Activity Management Plans. Only CAPEX generated by the growth demand will be considered in the assessment of development contributions. All operational costs, maintenance and overheads are excluded. Expenditure related to increased levels of service, renewals, resource consents, legal requirements are not included in the assessment unless there is surplus capacity provided to meet demand created by future development. A figure of 5.30 persons per equivalent household has been determined as the peak occupancy rate to assess the number of equivalent households or units of demand (UoD) contributing to the growth in demand. Using the difference in peak population of 13,024 predicted for 2039 and the peak population of 8,550 in Calculation of Development Contribution The amount of development contributions payable by a developer is calculated by multiplying the development contribution per equivalent household unit - Unit of Demand (UoD) - by the number of equivalent household units created by the development. The developer will receive credit(s) for any existing entitlements held prior to the proposed development. For the purposes of establishing credits, where an accommodation (eg, Bed and Breakfast) operation caters for no more than four persons (including the owners/occupiers residing there) then the operation will be treated as an equivalent household - ie, there will be no additional development contribution charged. For accommodation catering for more than four persons then there will be an additional quarter charge for each additional person that may use the accommodation. PART 3 - ASSESSMENT OF CONTRIBUTIONS 3.1 Introduction This section describes how the development and financial contributions are assessed using the methodology presented in Section 2. The development and financial contributions are outlined for the respective activities and the areas to which they apply within the District. Assumptions for Te Anau - An average equivalent household occupancy rate corresponding to the peak population of 8,804 is 5.30 persons. Not all rateable properties will provide accommodation (eg, commercial), the dwellings will not provide all the accommodation (eg, motels) and the occupancy rate for the accommodation sector will vary from site to site. Development and Financial Contributions Policy 131

134 3.2 Assumptions It has been assumed that development contributions will be required from all types of development that would result in an increase in demand on services and infrastructure. This includes greenfield development, infill development and changes of land use (eg, from office to restaurant). The assessment of development and financial contributions is based on the assumptions outlined in Part Contribution Boundaries (where required) A development contribution towards water and wastewater applies to all developments within the Te Anau area that are considered to create additional demand. The contribution boundaries are defined on the map below. Development and Financial Contributions Policy 132

135 Development and Financial Contributions Policy 133