THE COUNCIL STRATEGY...

Transcription

1

2

3 Table of Contents TABLE OF CONTENTS 1. INTRODUCTION THE COUNCIL STRATEGY FUNDING AND RATES CONCEPT PLANS TRANSPORT AND ROADING WATER SUPPLY WASTEWATER STORMWATER SOLID WASTE AND RECYCLING PARKS AND RESERVES PROPERTY COMMUNITY FACILITIES ECONOMIC AND COMMUNITY DEVELOPMENT REGULATORY GOVERNANCE AND CORPORATE REVENUE AND FINANCING POLICY SIGNIFICANCE AND ENGAGEMENT POLICY THE FORECAST FINANCIAL STATEMENTS AND RESERVES STATEMENT OF ACCOUNTING POLICIES THE ASSUMPTIONS

4 Introduction 1. INTRODUCTION He hupu whakataki Council's Long Term Plan (LTP) is our ten year strategic plan detailing activities and services, the issues facing our district and how we intend to address those issues. This document highlights the key projects, major issues and important financial information Message from the Mayor and Chief Executive The South Waikato District is at a major crossroads. After many years of declining population and a rates burden falling on fewer residents, we have seen over the past three years the district's population growing and businesses considering moving to set up in our towns. In the face of required investment in our infrastructure and increasing regulatory and compliance costs; Council faced the very tough decision of not supporting this growth and keeping rates at a low level, or alternatively investing in our district with initiatives that will allow growth to occur and stimulate the economy. Council had to ask itself "what is the right thing to do for the good of the district in the long term?" Council has chosen to be positive and grab the opportunity in front of us while considering affordability as much as possible. Council believes that the increasing rate payer base, the jobs and money that will come into the district and the investment into our facilities and infrastructure will make our district more resilient and sustainable with better long term services and opportunities for our residents. Through comprehensive workshops and meetings, many people in our community have already been involved in shaping this LTP. Council is aware of the financial pressures facing many within our community and we have tried to balance keeping rates affordable with delivering essential services, addressing the issues we are facing and funding what we have to do. This has still resulted in higher rate increases than we've had in previous years. The proposed average rates revenue increase for next year ( ) is 7.7% and for it is 8.9%. The proposed average rates increase over the ten years of the LTP is 4.8% per year. The plan gives Council the ability to provide and maintain existing levels of service and meet additional demands for services within financial limits of the budget. The big issues The big issues facing our community over the next ten years are: Growth in residential housing demand and the resulting need to make more residential sections available Our environment and healthy rivers District image and job creation Solid waste management and minimisation Other Council infrastructure, buildings and operations. Unfortunately, there are no simple solutions. We need to work together as a community to address the big issues as Council cannot do it on its own. Significant funding has been budgeted to help work on the opportunities and challenges of growth and to complete the infrastructure upgrades that now face our district. Historically we have spent a long time just maintaining our district and minimising rates but now we are faced with the opportunities and challenges that growth brings as people want to come to live in our district. We need to embrace development but it costs money. Page 4 of 206

5 Introduction Council has developed three new outcomes to help achieve our vision of 'Healthy people thriving in a safe, vibrant and sustainable community'. Growth - Activities and strategies that facilitate sustainable economic growth and lift community pride. Resilience - A resilient district with good infrastructure, services, a sound financial position, rates affordability and a healthy environment that has the ability to anticipate, resist, respond to and recover from significant change or events. Relationships - Strong relationships with Iwi and Māori, Pacific Peoples and community and business groups that can achieve growth and a resilient community. District Revaluations As a result of the demand on property from a growing population, property values are rising significantly. District property revaluations completed as at June 2018 will impact rates occurring in The forecast estimate for valuation increases since the 2015 valuation is 67% for residential properties and 35% for lifestyle, with minimal changes for rural. This will have a large impact on how rates are spread between urban and other ratepayers. For example the rates on a residential property with 2015 valuation of $136,000 will have a 6.3% increase in rates as a result of district valuation changes. The effect of this has been reduced by the change in the UAGC percentage from 29.9% to 25%. This is in addition to an average increase in rates revenue for of 8.9% so it has a major impact especially on higher value properties What is the Long Term Plan? The Long Term Plan is a ten year strategic document which describes the activities and services Council intends to deliver from 2018 to 2028 and how Council plans to fund them. This is where you can find out how much it costs to run the district and how your rates will be spent for the next ten years. The plan highlights what Council is going to do to make our district a better place to live and work. The plan also describes our levels of service, financial strategy, infrastructure strategy, the supporting financial information, capital projects and operational activities and how we will measure our performance Auditors Opinion Page 5 of 206

6 Introduction Page 6 of 206

7 Introduction Page 7 of 206

8 Introduction 1.4. Your Council Councillors from left to right back row: Jeff Gash (Deputy Mayor), William (Bill) Machen, Marin Glucina, Peter Schulte, Gray Baldwin and Herman Van Rooijen Left to right front row: Wendy Cook, Adrienne Bell, Jenny Shattock (Mayor) and Arama Ngapo-Lipscombe Councillor contact details: Councillor Name Phone number Address Ward Jenny Shattock Mayor Jeff Gash Tokoroa Gray Baldwin Putāruru Adrienne Bell Putāruru Wendy Cook Tokoroa Marin Glucina Tokoroa Thomas Lee Tokoroa William (Bill) Machen Tokoroa Arama Ngapo- Lipscombe Tokoroa Peter Schulte Tīrau Herman Van Rooijen Putāruru Tīrau Community Board contact details: Name Phone Number Address Cassandra Robinson (Chair) Clive Collingwood Derek Keesing Sharon Burling-Claridge Page 8 of 206

9 2. THE COUNCIL STRATEGY Te rautaki kaunihera Draft Long Term Plan The Council Strategy The Council Strategy presents what Council is going to do for the next ten years to make our district a better place to live and work. At the core of our strategy is our vision (how Council envisages our community in 30 years' time), our outcomes (what Council would like achieve to make the vision a reality) and our strategies (what Council will actually do to achieve the outcomes). To put it simply, everything that Council does should align with our strategies, outcomes and vision Council's vision Our vision over the next 30 years is 'Healthy people thriving in a safe, vibrant and sustainable community' Council's outcomes Community Engagement Following the elections in 2016, newly Elected Members wanted to improve community engagement to gain a better understanding of what the community wants Council to do. This has occurred through: Extended timeframes for the communication of requests, thoughts and submissions A large number of aspirations and projects collected from the community Engagement sessions with community and business groups to get a feel for the issues facing us and exploring opportunities where we can work together for the benefit of all Engagement with the community around Māori Seats on Council for the 2019 election The half hour open public forum sessions at the beginning of each Council meeting Significant exposure through media and Council's website on topics that are important to the community Outcomes Council's community engagement has helped shape our new outcomes, mentioned earlier in this document - Growth, Resilience and Relationships. These are the driving forces behind our decision making for the future. In terms of GROWTH Council aims to increase population and jobs, reduce unemployment, increase average earnings and improve the deprivation index. In terms of RESILIENCE, we all, Council and the community, need to anticipate, resist, respond to and recover from significant change or events. This includes community, cultural, economic and environmental resilience as well as Council's infrastructure. This will help us to be prepared, lessen the effects of change and recover quickly. Resilience covers a wide range of topics such as civil defence and storm events, how we manage our financial position, the affordability of rates and asset replacement, and environmental sustainability and our ability to recover from difficult situations. In terms of RELATIONSHIPS, we will build stronger relationships with Iwi and Māori, along with community and business groups to ensure that by working together we can achieve growth and a resilient community. Relationships with Iwi and Māori will be developed through strong governance models, building management/operational relationships, the development of cultural understanding among staff and elected members and undertaking joint projects. Page 9 of 206

10 The Council Strategy Council recognises the important contribution our Pacific Peoples make towards the economic, environmental, social and cultural strength of our district. They make up 12% of our population and add significant cultural diversity to our community. Council will continue to work collaboratively with our Pacific Peoples to achieve mutual benefits and enhance relationships. We will be talking to businesses and the community through improved engagement models so that we can better understand each other and share knowledge. Council wants to do more joint community projects and even provide on-going operations of facilities and services together. However, Council also needs to work towards helping community groups that rely heavily on Council funding to be more self-sufficient and encourage independence. Partnership models with business will focus on economic development and, more directly, job creation and training Council Strategies How does the Council outcome and strategy link to everything else Council does? Over the years Council has prepared and adopted a number of strategies, policies and bylaws. As the Council Strategy provides the overarching direction, every strategy, plan, policy and bylaw that Council adopts should directly link to the Council Strategy. The diagram below shows how Council's documents fit together. Vision Outcomes Strategies Policies Bylaws Procedure Job descriptions Council's aspiration for how Council would like to see the community in 30 years Council's 10 year goals to help achieve the vision What Council will do to achieve the outcomes Sets boundaries for what Council can and cannot do Gives Council the ability to undertake enforcement, where necessary Tells staff how things are done Describes what tasks individual staff members are required to do to achieve the vision 2.4. Key Issues for the Long Term Plan Growth in residential housing demand After a long period of population decline, particularly in urban Tokoroa, the district is being rediscovered as a place offering both great lifestyle and business opportunities. There has been a increase in demand for residential properties to rent and purchase. This is reflected in the estimated population growth of 1.3% in the 2016 year and 1.7% in the 2017 year. House prices in 2017 increased by 28% and indications are that residential property values have increased by 67% since June Increased demand means that it is now much harder to rent or buy a home here. The impact of this growth is on the need to plan for more residential development and increase processing of building and resource consents. The implication of this is detailed in the sections below and in the section on Increase in Council Staff Positions. Page 10 of 206

11 The Council Strategy Council initiatives have contributed to this growth but the major change has come from rising house prices in Auckland which encourage people to move to towns like Tokoroa, Putāruru, Tīrau and Arapuni. Our district's challenge is to benefit from the positive aspects of this growth while lessening the negative impacts that could come from a rapidly increasing housing demand, such as unaffordable housing options, and change to the character of the district. Council's role is to: Ensure land is available for development, through our growth planning and appropriate District Plan land zoning and rules Re-energise town centres to make our towns more attractive for the development of new houses Work with developers to support residential and industrial land development Ensure adequate infrastructure and services are available to support extra development Safeguard the environment. Growth Planning for the District is likely to result in changes to the District Plan (see Section District Plan Changes) to allow for more residential and commercial land development. Council's planning for additional development in Putāruru has indicated that more "three waters" (water, wastewater and stormwater) infrastructure modelling and design is required. Council has budgeted to include $320,000 for continued data collection and modelling to inform design in and $250,000, in , for the design of critical network improvements to enable the infrastructure upgrades required for growth to occur. This funding does not include the actual upgrade of infrastructure. The cost of this is uncertain until the modelling and design work is complete. Council will engage with the community further when more information is known. Some of the specific work Council is doing is: Putāruru Growth Plan The initial focus of this growth planning is on Putāruru due to its popularity as a destination for new residents and the support from our community, through Putāruru Moving Forward, to work with Council on a future plan for their community. To read more about the Putāruru Growth Plan visit our website - Our Council - Major Projects - Putāruru Growth Planning. Improved Service: The Putāruru Growth Plan has identified parcels of land that could be rezoned for future residential development. This will lead to proposals for changes in the District Plan zoning. These District Plan changes will be consulted on in the future District Plan Changes From 2018 onward Council will carry out growth planning for Tīrau, Tokoroa and Arapuni as a result of increased pressure to make more residential sections available. Growth planning for Putāruru has been carried out already. District Plan changes will include the potential for more residential development in Tīrau, Tokoroa, Putāruru and Arapuni through the rezoning of land and the planning of infrastructure during the Long Term Plan period. Significant resources are required to undertake this growth planning, District Plan changes and associated infrastructure planning. $100,000 ( ), $102,000 ( ) and $105,000 ( ) has been applied for growth planning in to to determine our need for changes to services and pipes and $65,000 for district plan change work in Page 11 of 206

12 The Council Strategy To read more about the District Plan Change visit our website - Our Council - Major Projects - Putāruru Growth Planning Council Involvement in Land Development Council will continue to purchase and/or develop commercial and residential land where appropriate. To date, Council has had some initial involvement purchasing industrial land on Maraetai Road and some residential land to foster development. We have included $300,000 for This increases each year up to $336,000 in Council would only get involved in this activity when we see we can create a development opportunity which would not have occurred without our involvement. Situations such as when pieces of industrial land are identified where future opportunities tie in with other developments Council is doing. An example is the purchase of 5.5ha on Maraetai Road because of its close proximity to the road/rail terminal. This offered opportunities for development in the future so it was important for Council to control this development. Similar opportunities exist for residential land purchase. Improved Service: This work is done to allow residential and industrial land development to occur that may not have otherwise happened Our Environment and Healthy Rivers Wai Ora Healthy Rivers Wai Ora is a Waikato Regional Council plan and is the first step in an 80-year journey to achieve rivers that are swimmable and safe for food gathering and achieve the requirements of Te Ture Whaimana o Te Awa o Waikato (Vision and Strategy for the Waikato River). Waikato Regional Council will work with stakeholders to develop a regional plan to help restore and protect the health of the Waikato and Waipa rivers. The intention is to reduce sediment, bacteria and nutrients (nitrogen and phosphorus) from entering the water bodies (including groundwater) in the Waikato and Waipa catchments. The Healthy Rivers Wai Ora nutrient removal targets are 10% after 10 years, 25% after 20 years, 50% after 60 years and 100% after 80 years. While it is accepted that there is an absolute need to improve the water quality of the Waikato River, our Council is conscious of the impact Healthy Rivers will have on our communities and infrastructure. Council supports the vision for the Waikato River but has serious concerns about the impacts. We will work through the concerns that we have with stakeholders, including: The potential adverse social and economic effects on the community The lack of certainty and clarity of interpretation with the administration of its provisions and rules The affordability of implementation to our community/landowners The rules proposed in order to achieve the vision are not strictly effects based and are not fair and equitable We need to get the best result for ratepayers and the district, ensuring our environmental, economic, social and cultural wellbeings are taken into account. To read more about Council's view on Healthy Rivers Wai Ora visit our website - Our Council - Major Projects - Healthy Rivers. Or you could go to for more information. Council sees two significant impacts on our district from the Healthy Rivers Wai Ora which are outlined in the sections below. Page 12 of 206

13 Economic and Social Impacts Draft Long Term Plan The Council Strategy Healthy Rivers Wai Ora will have implications for the development of new and existing farm land and businesses that want access to groundwater, springs and waterways, and that discharge into waterways. We fully support the vision and will continue to work with all parties to establish a collaborative solution. It has been estimated in reports that the economic impacts on the Upper Waikato Fresh Water Management unit (of which our District is a part) could be up to $35 million and a loss of 370 job equivalents. Needless to say, we have to respond to this to get the best possible outcomes for our community and for our waterways. This impact of Healthy Rivers will become clearer over time so Council's involvement will need to carry on for several years Wastewater Plant Upgrades / Resource Consent Council also has a legal obligation to upgrade wastewater treatment. We also have a very strong desire to improve the environment. Council needs resource consents from the Waikato Regional Council to allow us to discharge wastewater to water and/or land. Planning and engagement with Iwi is underway but Council is not at the point yet to ask the community's views on detailed options. Separate consultation will occur in the future once we have better defined the short-listed options. While the Tokoroa consent expired in 2011 and the Putāruru consent expired in 2014, both continue to operate legally by agreement with Waikato Regional Council. This is approved under section 124 of the RMA. The Arapuni consent expires in 2020 and Tīrau in Council is looking at the four consents together to achieve a better total solution. The plant upgrades will occur over a number of years. Council is investigating a wide range of options for the disposal of treated wastewater, whether it be to land, to land and waterways or just to waterways. Consultants are providing engineering and technical assessment of options to help get the best option for each of the four wastewater plants. The disposal of residual sludge solids from the treatment process is currently to the Tokoroa landfill disposal. The disposal of wastewater residual solids does not have an impact of the options for disposing of wastewater itself. Disposal to worm farms is being considered, particularly if the Tokoroa landfill closes. These upgrades will come at significant cost so it is important that Council is financially prudent when making these decisions with its partners and the community. Council needs to maintain acceptable rates increase while creating a long term solution that has a positive impact on our waterways. The capital cost of these solutions ranges from $11million to in excess of $100million with annual operating costs ranging from $200,000 to in excess of $1million. Council is engaging with Raukawa and other Iwi in the district. We are developing criteria to help assess the level of outcomes and costs for each of the options. The criteria currently being considered are likely to include things such as: Water bodies are accessible, safe to swim in, and take food from, all year round - this will look at the amount of improvement in bacteriological levels and water clarity Nutrient removal - measures the percentage of Nitrogen and Phosphorous removed. These nutrients are problems because they help algae and plants grow, which significantly reduces water quality by removing oxygen from the water and clogging flow Acknowledgement and protection of cultural values Iwi involvement Page 13 of 206

14 Draft Long Term Plan The Council Strategy Caters for growth and staging - the ability of the solution to cope with future population growth and the need to remove more effluent and stagger implementation Cost to the average urban ratepayer for each solution. It is proposed that only ratepayers connected to the wastewater system will be affected by this rate. It is proposed that the increased cost will be spread equally to each property as it is now. In the meantime, we have made a number of budget assumptions in the current Long Term Plan. Capital investment for plant upgrades of $22.8 million, spread over eight years from to Annual operating expenditure of $535,000 starting from and increasing to $621,000 in (excluding interest, depreciation and loan repayments). We believe that this level of capital and operating expenditure will give plant upgrades that will allow a reduction in nutrient levels in the wastewater discharge and reduce bacteria levels to amounts required by legislation and cater for other Healthy Rivers requirements. This does not however, allow enough funding for the discharge of wastewater to land via irrigation. Improved Service: The range of new plant options in this category have an average percentage nutrient removal of 47% for Total Nitrogen and 38% for Total Phosphorus. Other options allow for the potential for land disposal of wastewater for some or all four plants. The average additional capital cost of these options is $78m with annual operating expenditure of $1.25m starting in and increasing to $1.49 million in (excluding interest, depreciation and loan repayments). We have assumed the capital cost is spread over eight years from to and the extra annual operating expenditure starting from Improved Service: The range of new plant options in this category have an average percentage nutrient removal of 59% for Total Nitrogen and 50% for Total Phosphorus. In addition, this option will allow the spreading of wastewater onto land rather than direct discharge into waterways. These options include significant costs for the purchase of land for irrigation, to set up pipes and pumping equipment and for irrigation. Considerations for future iwi and community engagement We are extremely conscious that there is a strong Māori cultural preference to have wastewater discharged to land rather than directly to water. It is very important to Council to continue to work towards achieving Māori cultural values and restoring the mauri, mana, and wairua of water bodies affected by wastewater. Council does not have any fixed option in mind but has used the plant upgrade option (as opposed to full land disposal) for budgeting assumptions for the LTP. Because the rates and loan increases are very significant we have set limits on rates increases and the maximum value of capital expenditure to: the maximum increase in rates for an average urban resident, as a result of the wastewater upgrades, would not be more than 20% over the 10 year LTP period. the total capital cost of these upgrades is no more than $22.8 million. These proposed limits could eliminate a large number of the potential solutions initially, particularly those including the land irrigation disposal options. Discharge to a wetland is being considered as an alternative to directly discharging treated wastewater to water bodies. The final options may still be more or less than these limits suggest. Council will continue to work with Iwi, and our consultant to get more information and clarify options. Once firm options are refined, we will consult further in detail with the community about specific options before any final decisions are made. Information will be available and will be well publicised on options. Page 14 of 206

15 The Council Strategy District Image and Job Creation The need to attract businesses and create jobs has never been stronger. Outcomes from Council's community consultation indicate that more jobs, especially for younger people, are required. More jobs may well tackle some social issues raised during this community engagement such as affordable housing, misuse of drugs, a marketing and economic development plan, and more opportunities for youth and integration of health and social services information and networking. The need to improve the external perception of our towns and district also remains unchanged. An improved image will also allow the district to capitalise on the growth that is occurring while improving community vibrancy and pride. The projects outlined below will improve our district's image and assist with job creation Town Concept Planning Concept Plans help define each town's point of difference and prioritises how Council can work with the community to help create vibrancy in each town. Maintaining each community's special character is a key element of these plans. Concept Plans are an integral part of developing the LTP. They consider the key projects and maintenance of facilities and services Council provides to support the infrastructure and the community aspects of towns Tokoroa Concept Plan (includes the Leith Place / CBD Upgrade) Concept Planning for Tokoroa Over the next two years a Concept Plan will be developed for Tokoroa. As a result of community consultation over the last few years Council has approved the upgrade of Leith Place and the CBD. A Town Centre Manager will be engaged at the beginning of Leith Place / CBD Upgrade A decision to develop Leith Place / CBD Upgrade has already been made. A new iconic building housing the i-site and public toilet complex and providing a town centre hub is underway to attract visitors, provide a central space for residents to use, help change the perception of Tokoroa and increase retail spend. The CBD upgrade is a cornerstone project for Tokoroa. Council engaged consultants, Urbanism Plus, to lead a consultative urban design process, to define the scope of the project, including how the area will be designed, used and managed. DCA Architects were engaged to provide full designs for a new i-site and toilet complex, and associated landscape design. Following receipt of preliminary designs and revised estimates, the total budget for the project is $3,972,000. Visit our website - Our Council - Major Projects - Tokoroa CBD Upgrade. $2.4 million has been funded in previous annual plans so an additional $1.572 million requires loan funding in Construction is planned to start in 2018, with completion in Tree removal was completed in May There are a number of related projects which will enhance the success of this project: Change State Highway One to allow a safer flow to and from Leith Place Bridge Street and Swanston Street entrances and roundabouts redesign Dreghorn Place car park improvements to provide more safe parking options Engagement of a Town Centre Manager. This is explained in the section below. Page 15 of 206

16 The Council Strategy Improved Service: Leith Place - New Iconic i-site and toilets, vibrant town centre and community space, better traffic flow from State Highway One into Leith Place, better display and promotion of Talking Poles and improved parking at Dreghorn Place. Tokoroa Town Centre Manager Engagement of a Town Centre Manager to help manage and promote the wider town centre, improve perceptions of Tokoroa and support economic and community development for Tokoroa in general is planned for January $50,000 has been included for half a year in year and $100,000 in increasing to $124,000 in paid through rates by Tokoroa Ward ratepayers. This budget not only includes the cost of the manager but operating costs for activating Tokoroa town. There are three components to this role: Relationship with Council and businesses - acting as a conduit between the business community and council, marketing and positive communications about Tokoroa and ensuring maintenance and services match expectations Coordinating land owners and education - business mentoring, coordinating tidy-up of shop frontages throughout the CBD Activation - organising events, markets, physical installations, activities around the talking poles Improved Service: The Tokoroa Town Centre Manager will improve relationship between Council and businesses which will provide marketing and positive communications about Tokoroa. It is help ensure maintenance and services match expectations and improve education of and coordination between land owners. Overall it will improve the activation of the Tokoroa CBD area and redevelopment Putāruru Concept Plan The basis for the Putāruru Concept Plan has been completed in partnership with Pride in Putāruru and Putāruru Moving Forward. Remaining work required for the concept plan is to develop detailed actions and plans. The plan is to be finalised in A significant amount of work was completed in the 2017 year to develop a residential growth plan for the Putāruru community. The implementation of this plan, including incorporating its inclusion in a District Plan change, is a key component of the LTP actions for Putāruru. New projects in the LTP are for the Putāruru Waterpark design and refurbishment which will cost $400,000 in Improved Service: The completion of the Putāruru Concept plan will provide the framework for Council's economic and community development efforts in partnership with the community. The upgrade of the waterpark is a key component to improve the image of Putāruru Putāruru Business Promotions Rate and Putāruru Promotions Rate During December 2017 engagement on the funding model changes for Pride in Putāruru was undertaken. Results were positive for an increase in funding of $52,000 per year increasing to $81,000 in This was to cover an increase in costs over the last 10 years during which time the Pride in Putāruru grant had not increased and also the employment of a full time (rather than part-time) manager. More properties will be included in the business promotions rated area. The rate is now rated half on capital value and half on a set amount per property. More information on this is available on Council's website. Page 16 of 206

17 Tīrau and Arapuni Concept Plans Draft Long Term Plan The Council Strategy The concept plans for Tīrau and Arapuni will be redeveloped over the two years starting in working closely with the communities. The Tīrau Community Board has considered the current Tīrau Concept Plan (Tīrau 2020) and decided that the plan is largely sound and provides a solid basis for an update to reflect current priorities. Detailed actions will be developed with the community over the next year. Work is underway to develop a walkway from the town centre to the Tīrau Domain. A rail crossing has been built and design/layout of an access ramp and connecting walkways is in progress. Construction of a bridge across the Oraka Stream to link to the Tīrau Domain has been included in the LTP, as well as a substantial upgrade to the Tīrau Domain itself. The Tīrau community will continue to be engaged with concerning development options for the Domain. Arapuni is developing a Residents' Association which will have clear views on important issues that require discussion as this community continues to develop into an attractive lifestyle destination. Council is working with the community to update previous plans and help define future actions for Arapuni while protecting its special character. Improved Service: The completion of the Putāruru Concept plan will provide the framework for Council's economic and community development efforts in partnership with the community. Presentation of our towns Council will improve the maintenance service levels of Council infrastructure and services; such as footpath maintenance, weed control, garden maintenance, signs and town entry statements. This, in conjunction with the marketing of towns and the development of Concept Plans, new facilities and promotion, will help improve the image of our towns to visitors and residents Solid Waste Management and Waste Minimisation Every six years Council has to update its Waste Minimisation Plan which considers the most effective way to manage the collection, processing and disposal of solid waste and recycling in our district. Separate community consultation will occur on the Waste Minimisation Plan which is due by 30 June Council's solid waste and recycling collection contracts and the recycling processing contract are due for renewal, and the resource consent for the Tokoroa landfill expires in October Our current landfill in Tokoroa is expected to be full by Three options are being considered: Option A - develop a new landfill cell at the current site Option B - transport waste to a commercial landfill out of the district Option C - partnering with other councils to develop a new regional landfill A new transfer station at Newell Road, and the transport of waste from the transfer station to a landfill tip face, is necessary for all three disposal options because of the health and safety concerns relating to the public having direct access to a landfill tip site. Option A has been included in the LTP for budgeting purposes. However, the decision to develop a new landfill, transport solid waste out of the district or develop a regional landfill with other Councils, needs more analysis and when more detailed information is available, the community will be engaged again before a final decision is made. Some of the issues to consider include: Fluctuations in waste volumes - volumes have varied from 6,000 tonnes in 2015 to 12,000 tonnes in Building another landfill cell becomes less viable if volumes fall because costs Page 17 of 206

18 The Council Strategy don't change with lower volumes. Transporting waste to another landfill largely depends on volumes so total costs rise more quickly if volumes increase and waste is transported. Business and society's view of waste and recycling in 5, 10 or 20 years' time Local Government requirements, under the Waste Minimisation Act, to reduce waste Effect and potential changes from the Emission Trading Scheme (ETS). Carbon credit cost have been insignificant but are now budgeted at $130,000 ($18 per carbon unit) for This is forecast to increase to the maximum legislated value of $25 per carbon unit over the coming years and could increase to $70 in 20 years. Fluctuating transportation and landfill costs for transporting waste outside the district The health and safety risk around a landfill operation - particularly restricted public access to landfill tip face The potential to look at this as a business opportunity in terms of doing things differently (eg, a regional landfill or new business model). Financial impact of the three options Option A - Develop a new landfill cell at the current site Develop a new landfill cell at current site on Newell Road, at an estimated capital cost of $4million in , $550,000 for a new Transfer Station in and $150,000 for design of the landfill and transfer station in Additional operational costs of $210,000 each year from allows for a transfer station to operate from Newell Road. Option B - Transport waste to a commercial landfill out of the district Assuming current landfill volumes, the cost of transporting waste outside the district is estimated to be $1.3million. The total current cost for operating the landfill per year is $580,000. Capital cost of $550,000 for a new Transfer Station in with additional operational costs of $210,000 each year from Option C - Partnering with other councils to develop a new regional landfill Further work will be undertaken to assess the potential for a Regional Landfill with other Councils in the region. The same costs are assumed for Option B and C until more information is collected Other Council Infrastructure, Buildings and Operations There are a number of significant works and some increase in operations that Council must undertake, but they don t neatly fit under the umbrella of a single key issue. Council needs to do work on its own buildings and services to ensure they are fit for purpose and that our buildings, asset management and operating systems meet Council and community needs, are compliant and provide for the health and safety of our staff and the community. Specific work is required on the Tokoroa Library, Tokoroa Indoor Pool Complex and Tokoroa Council Office. Investigations have revealed elements of these facilities that need major maintenance and upgrade. The library roof is no longer watertight, the Tokoroa Indoor Pool complex has potentially water ingress problems due to faulty cladding, and the Tokoroa Council Office air conditioning system is failing. Unfortunately, this work cannot be deferred any longer, which increases our loan requirements in the short term. We must also look at increasing maintenance on existing assets, to avoid costly capital expenditure in future Tokoroa Council Office The Tokoroa Council Office building is now 30 years old and much of its internal infrastructure and fittings date back to the time it was built. The current air conditioning system no longer circulates air Page 18 of 206

19 The Council Strategy adequately so requires upgrade. The internal building layout will be reconfigured to create more efficient use of space Tokoroa Library Roof The Tokoroa library roof has leaks. The situation is worsening and the measures put in place to cope with the leaks will cost ratepayers more in the long run than replacing the roof. Council needs to replace the roof and water proof the building as a matter of urgency. $400,000 has been included in the budget to achieve this. An opportunity has arisen, through the generous gift of the old Tokoroa Countdown building by a ratepayer, to consider whether this building would be suitable for a library. $50,000 has been included in the budget to investigate this opportunity. It is funded by loan District Pools An Asset Management Plan prepared in 2017 has identified a number of maintenance and upgrade works for our pool facilities. Our three pool facilities are South Waikato Indoor Pools, Putāruru War Memorial Pools and Tīrau Pools. A summary of the key works we are proposing over the next ten years are: South Waikato Indoor Pools - Leisure Pool usage design, Spa redesign, timber framework of the facility, updating plant, new pool covers, retiling the main pool and general improvements to the aesthetics of the facility. Putāruru War Memorial Pools - Putāruru War Memorial Pools enjoyed an upgrade in 2008/09 and is generally in good condition. Minor works are required to maintain the current level of service. Areas to focus on will be the boundary fence, changing rooms and office/staff building. Tīrau Pools - Pool plant replacement, main pool surface work, toddlers pool resurface and kiosk upgrade have been identified in need of improvement. Further investigations are to be carried out prior to work commencing to consider usage, the needs of the community and to more closely scope and cost the proposals Change in New Zealand Transport Agency Financial Assistance Rate The New Zealand Transport Agency (NZTA) has recently revised its Financial Assistance Rate (FAR) for our Council. It has accelerated from the 1% per annum increase for five years originally discussed in the Consultation Document to an increase to 62% starting in The new accelerated FAR changes the subsidy rate for from 56% in the Consultation Document to 62% in the LTP for It will remain at 62% for the next three years of the NZTA funding. This means that the Council's rates contribution will reduce from 44% to 38% for the NZTA funded roading programme. In addition to this Council will receive the FAR subsidy for footpath and cycleway work. This has provided Council with general rate savings and will allow funding to become available to allow the full three year roading programme agreed with the NZTA to be achieved Increase in Council Staff Positions Staff numbers are to be increased to cope with: Planning for growth in relation to district plan changes and infrastructure development The increased need to plan for changes in our wastewater, drinking water and stormwater systems as a result of Healthy Rivers Wai Ora changes and drinking water standards The increased volume of building and planning consents associated with intensified residential development Page 19 of 206

20 The Council Strategy Increased requirement for community engagement and communication Internal pressures to improve our systems, processes and policies to comply with legislation; to operate more effectively and provide a better service to our community Maintaining and upgrading Council's properties and buildings Increased requirements around Civil Defence planning Additional projects The council is planning for a significant amount of work over the next 10 years. There will be pressure placed on Council to achieve these projects, and that is why there is an increase in staffing, use of consultants, and project budgets.the programme of work has been reviewed, and the level of resources budgeted should be sufficient to implement the programme Responses to the Consultation Document questions The summary of results and the deliberation outcomes of the Consultation questions from the Consultation Document follows: Question Feedback Outcome Buying and reselling Generally positive feedback. This Budget of $300,000 to $337,000 residential and industrial feedback focused on the need to support per year for purchase of land for land development. development is retained. This has not changed from the consultation document. Early engagement on wastewater options Tokoroa Town Centre Manager Funding a full time Manager for Pride in Putāruru Changes to the Proposed Putāruru Business Rate Model A range of comments provided from: wastewater upgrades needed if more housing areas rezoned; investing in vertical farming systems and pine forest irrigation; need to protect against natural disasters; using local contractors to do work and the need for planning and to comply with national policies. A split response to this. Council believed that the position was necessary to activate the town centre. Positive comments talked about the need to activate the town. The negative comments talked about the cost effectiveness and need of the position. Little feedback received because significant engagement had occurred earlier in Previous engagement was generally very positive. Little feedback received because significant engagement had occurred earlier in Previous engagement was generally very positive. Capital budget of $22.8million and additional operating costs ranging from $535,000 to $621,000 per year for plant and disposal upgrades remains. Once the list of possible options is shortlisted Council will engage with the community again. This has not changed from the consultation document. Budget maintained at $50,000 for increasing to $124,000 in to fund a Town Centre Manager for Tokoroa. This has not changed from the consultation document. Budget for Pride in Putāruru increased by $52,000 in to $81,000 in This has not changed from the consultation document. Rating model to fund Pride in Putāruru changed so that 50% is funded by Putāruru ward as a uniform charge to each rating unit. 50% in charged to the Putāruru CBD businesses and this is rated 50% on uniform charge and 50% Page 20 of 206

21 Solid Waste options UAGC to 25% in Year 2 of LTP to alleviate changes in rates for change in Capital Value. Significance and Engagement Policy Revenue and Financing Policy Fees and Charges Mostly respondents were in favour of developing a new landfill cell at Tokoroa Landfill and none for shipping out waste. A number of comments focused on picking the option which was least expensive but commented that more research was required. Split feedback on this topic. Some comments indicated that the move to 25% UAGC was not equitable. A number of comments wanted Tīrau pools to be included as a strategic asset. Other comments regarding the need for more engagement with Māori and Iwi. There was a mixture of wanting to increase and reduce user fees and a comment on impact of high level of rates. Comments were to reduce pool fees to increase use and access and to limit building consent fees to encourage building. Another wanted to increase user fees to reduce rates. Draft Long Term Plan on capital value. This has not changed from the consultation document. The Council Strategy More investigation on the three options (new landfill cell, shipping to a commercial landfill and collaboration with other Councils) is required. After these are analysed Council will engage with the community again. This has not changed from the consultation document. Council plan to reduce the UAGC percentage from 29.9% in Year 1 to 25% in Year 2. This has not changed from the consultation document. Tīrau Pool is now included on the list of Strategic Assets in the Significance and Engagement Policy. No changes to the policy were made. No changes to the Fees and Charges were made Financial Strategy Council's overarching approach to its financial position is that we are a community focused service provider so need to act conservatively and prudently and in the interest of the community at large while recognising and taking advantage of economic and community development opportunities that fit within our Long Term Plan. Significant funding has been budgeted to help work on the opportunities and challenges of growth and to complete the infrastructure upgrades that now face our district. Historically our priority was maintaining our district, looking for growth and minimising rates but now we are faced with the opportunities and challenges that growth brings as people want to come to live in our district. We need to embrace development but it costs money. The increase in rates is particularly high for the first two years (7.7% and 8.9% respectively) to cope with these challenges and opportunities. Loans are predicted to grow from $13.3 million to $35.3million during the period of this plan. Council is proposing to limit loans to be no more than 100% of revenue. Council is very concerned about the affordability of rates for our community and loan interest and repayments add significantly to rates Summary Financial Statements Below is a table of the key financial levels included in the financial statements: Page 21 of 206

22 The Council Strategy 17/18 AP $m 18/19 LTP $m 19/20 LTP $m 20/21 LTP $m 21/22 LTP $m 22/23 LTP $m 23/24 LTP $m 24/25 LTP $m 25/26 LTP $m 26/27 LTP $m 27/28 LTP $m Rates levied Total revenue Operational expenditure Capital expenditure Total Borrowings A draft Prospective Statement of Comprehensive Revenue and Expenses; Prospective Statement of Changes in Net Equity; Prospective Statement of Cashflows and a Prospective Statement of Financial Position is detailed in Chapter 18 of this document Rates Because our community cannot afford significant rates increases, Council has proposed limits for rates revenue: Rates revenue increases will not be larger than 9% for any year. Rates revenue will not increase by more than a 6% average for the ten years. Council recognises that these are large increases but spending money on growth, wastewater, water, solid waste upgrades and other Council infrastructure and legislative compliance has meant we have little choice. Council will continue to look for savings over the coming years to reduce these rates increases. The LTP budget proposes an increase of 48.6% in rates revenue over the next 10 years. Total revenue received from rates is forecasted to rise from $26.5m in to $39.4m in The Funding Impact Statement showing forecast rating values and rating methods is detailed in Chapter 2 Funding and Rates. The rate increase is shown in the graph below. Rates increases 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 8.9% 7.7% 7.0% 6.0% 4.1% 2.9% 3.3% 3.3% 3.4% 1.8% Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Rates increases Rates limit Page 22 of 206

23 The Council Strategy Rates levied $m Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Rates levied $m Rates limit District Valuation and Impact on Rates Every three years councils must get an independent valuer to value all the properties in its district. Councils use these valuations to set rates. These new rating valuations will be based on the property market as at July 2018 and will have an impact on rates for the year. Based on sales indications there will be little change for rural properties, but significant increases for residential properties (possible increases of up to 67%) and lifestyle properties (possible increases of up to 35%) when compared to the previous (2015) rating valuations. Changes in rating valuations does not mean Council collects more rates, but it can mean a shift in who pays the rates. General Rates are charged on rating valuations. Because urban and lifestyle properties are expected to increase by more than other properties (such as rural and business) they will pay a larger share of the General Rate. Rural ratepayers will pay a lesser share than they did before. At this stage, these changes in rating valuations are only estimates, but they are so large it is important ratepayers are aware of the possible impact. The revaluation notices will be mailed to ratepayers later in 2018 and there will be an opportunity to challenge the values if you think they are not accurate Changing the Uniform Annual General Charge percentage The amount of rates property owners pay includes a portion that is a Uniform Annual General Charge (UAGC) - a charge that is the same for every property regardless of property value - and a portion based on the capital value determined by the District Valuation process (General Rate). Higher value properties pay a higher proportion of the General Rate. For , Council plans to reduce the impact of the change in rating valuations by adjusting the percentage of rates collected from UAGC. This will reduce the impact of rates increases resulting from district valuation changes. Even with this, the change in district valuation will still significantly increase rates in for residential and lifestyle ratepayers - the higher the value of the property the more impact it will have. Council will change the total rates funded from UAGC to 25% in (Option2), to reduce the impact of district valuation changes on residential and lifestyle property owner's rates. Page 23 of 206

24 The Council Strategy Loans A limit has been for total loans at 100% of total revenue. At this limit the total amount Council can borrow is $37.1m in to a maximum of $54.8m in The loan limit in the LTP was $17m so this is a significant increase in the borrowing limit. As a result of proposed expenditure on assets such as the wastewater plants and landfill and the need to prepare for growth in the LTP we will increase loans from $17m in to $35.3m by the end of % 100% 80% 60% 40% 20% Loan/revenue ratio 0% Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Revenue/Loan Limit Water, Wastewater and Stormwater Rates Harmonisation Council's philosophy is to use targeted rates for those services that can clearly be identified as benefiting only a proportion of the population and then recovering these costs only from the ratepayers - these are called targeted rates. There are targeted rates for the following activities: water supply, wastewater disposal, stormwater, waste collection, district recycling, Putāruru CBD charge, Tīrau Community Board charge, Putāruru promotion rate, Tokoroa promotion rate, clean heat charges and individual hall charges. Other, more generally used, Council activities are rate funded by user charges wherever possible with the residual being recovered through general rates. Examples of these are libraries, swimming pools, roads, parks and reserves and so on. A maximum of 30% of these is charged as Uniform Annual General Charges ie an equal amount charged to each property with the remaining General Rate being charged to ratepayers on the capital value of the property ie the higher the capital value of the property the higher the general rates levied. This percentage will vary between years to help moderate the rating balance between the general rate (based on the rateable value of a property) and the UAGC (rated on a per rateable property basis). Council has historically maximised the percentage at 30% but from year onward will reduce this to 25% to minimise some of the impact that the change in district valuations will have on urban properties. The other aspect to the rating system that is useful to explain is that water, wastewater, stormwater, solid waste collection and recycling rates are harmonised. These are targeted rates as explained above but they relate to multiple different geographic areas in the district. The total cost of all these activities is added together and applied to all the ratepayers receiving these services. For example, the total cost of the four wastewater plants (Tokoroa, Putāruru, Tīrau and Arapuni) is added together and the rates averaged out across all the wastewater connections for the four towns. The alternative approach is that each town's ratepayers pay the cost of just their wastewater plant. This approach is not adopted because it would make the cost to ratepayers in small towns very high - instead the costs are spread over all the towns' ratepayers Page 24 of 206

25 The Council Strategy Funding of Asset Replacement Asset replacement reserves are maintained for the following activities. Depreciation, funded from rates, is transferred into these reserves, while capital expenditure and loan repayments, if any, are funded from these reserves. Bridges Cemeteries District recycling Council properties and buildings Information Services - major enterprise wide replacement only. Parks and Reserves Putāruru town centre CCTV network Refuse Disposal - rehabilitation and monitoring after landfill closure only South Waikato Sport and Events Centre Sportsgrounds Stormwater Swimming Pools (Tokoroa, Putāruru and Tīrau) The Plaza theatre Toilets Tokoroa town centre CCTV network Trade Training Centre Water Wastewater Vehicles Council does not plan to have all the assets in the activities in the table above fully funded using asset replacement reserves. The table below details those that are only partly funded from rates. Activity % Funded Reason why not 100% Waikato Sport and Events Centre Tokoroa indoor Swimming Pools 50% 50% Plaza Theatre 50% Wastewater Stormwater Assumed that when this is replaced it would be funded 50% by contributions from external funders and the Community Assumed that when this is replaced it would be funded 50% by contributions from external funders and the Community. Tīrau and Putāruru pool replacements are fully rate funded Assumed that when this is replaced it would be funded 50% by contributions from external funders and the Community Depreciation is funded - 85% in year 1, 90% in year 2, 95% in year 3, then fully funded from year 4. This is to address the historic issue in the reserve balance. Depreciation is funded - 85% in year 1, 90% in year 2, 95% in year 3, then fully funded from year 4. This is to address the historic issue in the reserve balance. There is no asset replacement reserve for the following activities so there is no fund for their replacement. Page 25 of 206

26 The Council Strategy Activity Talking poles Libraries Roading (except bridges) Community halls Pensioner Housing Airport Information services Furniture CCTV cameras Reason why These will be funded by rates if new ones are required Capital expenditure is at a similar level across the years, so is funded directly by rates, and depreciation is not rate funded A roading programme for the ongoing maintenance of the roading network is in place. Capital expenditure is at a similar level across the years, so is funded directly by rates, and depreciation is not rate funded Any capital expenditure is funded through rates. Council does not plan to replace these halls at the end of their life so no funding has been accumulated for this. Capital expenditure is part of an ongoing upgrade programme so similar each year. The purchase or build of new houses will be funded from other sources. As the income and expense is already ring fenced in a dedicated reserve, there is little value in retaining another reserve for this activity. The replacement of the runway is funded from adjacent land and tree sales, so there is no separate fund for asset replacement funded from depreciation The capital expenditure for Information Services is regular over the years, so this is funded through rates, and the depreciation is not rate funded. There is an existing asset replacement reserve which is being retained until a replacement of our enterprise system is required. Capital expenditure is at a similar level across the years, so is funded directly by rates, and depreciation is not funded Capital expenditure on Council property CCTV (as opposed to public town centre CCCTV systems, is at a similar level across the years, so is funded directly by rates, and depreciation is not rate funded Policy on the giving of securities for its borrowing It is important that Council borrows at the lowest interest rate practical while balancing this with not having to provide large security to achieve it. Council s preference is for unsecured financial facilities. Where there is a borrowing cost advantage in giving security, Council will first assign rates revenue to secure the loan. However, if Council considers that security should be given by mortgaging (or otherwise charging a physical asset instead of rates) it may do so. Independent advice will be sought if it is considered necessary. Council s current approach is to secure loans against rates revenue so Council has not needed to provide physical assets as security Financial Investment and Equities Objectives for holding and managing financial investments and equity securities and its quantified targets for returns on those investments and equity securities. Council's objectives for holding and managing financial investments and equity securities are: To prudently manage Council s investment assets in the interests of the district's residents and to safeguard the investments from making a loss To ensure that the investments are only for lawful purposes Page 26 of 206

27 The Council Strategy To maximise investment income within a prudent level of investment risk To comply with all relevant statutes and their amendments To ensure Council is able to meet its future financial commitments as they fall due, in both the short term and the long term, through active liquidity management To manage interest rate risk and to maintain Council s exposure to interest rate risk within acceptable levels To safeguard Council's investments by only investing in approved financial institutions and undertaking ongoing monitoring of their credit ratings To actively manage adequate internal controls to ensure that funds are invested in accordance with Council policy To avoid all financial arrangements that could be described as speculative To maintain a risk averse stance at all times Collaboration efforts in the Waikato and BOP Changes to the Local Government Act 2002 now require Councils to work together collaboratively to reduce costs and to improve efficiency. Council is working with other councils in the Waikato and Bay of Plenty on projects that will save money. Projects include: The Waikato Spatial Plan The Bay of Plenty Spatial Plan Waikato Local Authority Shared Services (LASS) - Planning and Governance - this includes collaboration on developing policies, such as the Significance and Engagement Policy Waikato Region - Economic Development The Road Asset Technical Accord (RATA) which involves projects such as joint procurement for LED streetlighting and developing a consistent approach for roading maintenance Shared recruitment services with other Waikato Councils Waikato LASS - procurement for insurance Shared Valuation Database Services for rating (which have resulted in changes to valuation services that will save up to $10,000 per annum) Waikato Regional Sports Infrastructure Plan Waikato Aerial Photography Syndicate Enlarged Rural Fire District Working with other parties (including Raukawa) to deliver a Cultural Landscape Study Lakes Coast Cluster - building consent authority group Healthy Rivers Plan Change - several TAs jointly funding representative on collaborative stakeholder forum Shared website and online services platform with other Waikato Councils Combined contracting of election services with other Waikato Councils. The Waikato Plan (Waikato: he reo kotahi) Page 27 of 206

28 The Council Strategy Infrastructure Strategy Background Infrastructure accounts for 68% of Council s operating expenditure and 91% of Council s capital expenditure. This expenditure is fundamental to building our communities - it is essential for health, safety, transportation and has a significant effect on the physical environment. Infrastructure enables our businesses and communities to grow and prosper. Without it, people who live in urban areas would have to provide their own drinking water, would have to dispose of their own wastewater and stormwater, and there would be no roads. Getting our infrastructure spending right is a prerequisite to determining how much the Council can spend on services that enhance the quality of life and attract people to live in the South Waikato. This infrastructure strategy outlines: The key infrastructural issues that the South Waikato community will need to address over the next 30 years The main options available for dealing with those issues The costs of the options, and the wider implications for residents and businesses Council's current preferred options for provision of future infrastructure. This infrastructure strategy will help Council and the community make informed decisions in the next three and 10 years, that will prepare the Council to deal with major infrastructure decisions occurring in the next 10 to 30 years What is infrastructure? This strategy will focus on our 'core' infrastructure: Provision of roads and footpaths Water supplies Wastewater treatment and disposal Stormwater Assets associated with solid waste management are not included in this strategy Assumptions and Capital Expenditure drivers Council's fundamental decision focuses on the amount of capital expenditure required for infrastructure. Capital investment decisions are driven by three considerations: When should the existing infrastructure be replaced When should Council invest in improving the existing levels of service How much needs to be invested to provide infrastructure for our future communities When should infrastructure be replaced? Our infrastructure replacement program is developed using the optimised decision-making process (ODM) which is outlined in our Asset Management Plans. The ODM process takes into consideration: The costs of the asset over the life of the asset The benefits and costs of the available options for replacement The trade-off between planned and unplanned maintenance. Generally, an asset is replaced when there is a problem relating to the asset such as: Page 28 of 206

29 Deteriorating condition of the asset Insufficient capacity of the asset The asset is not performing to expectations Changes in technology and / or environmental requirements. Draft Long Term Plan The Council Strategy The expected lives of Council s assets are set out in detail in the Statement of Accounting policies in the Long Term Plan (LTP). Our program for replacement is based on asset replacement using today's technology to meet current regulatory and consent requirements The "Three Waters" The actual renewal program for water reticulation carried out over the next 30 years will be based on results of testing, risk assessment and criticality assessments on each specific pipe. While a theoretical programme of wastewater reticulation renewal would be based on asset installation dates and standard asset lives, this does not mean that assets are automatically replaced when their useful life is reached. Reliability, contribution to water quality, maintenance cost and other factors are monitored and used to determine which pipes are actually replaced. Pipe sizes are also reconsidered during renewal design. Network modelling provides information on which size is required so that it addresses any existing problems and is adequate for known future demands over the life of the new asset. Economies of scale are achieved by deferring or bringing forward elements of the renewal programme where possible, so that a more viable quantity of pipe can be scheduled in one project. The potential is recognised for extending the investment period of the asset replacement reserves, so that cost to the community can be reduced in the long term due to growth in funds. Council has financially modelled the risks around not having adequate asset replacement reserves to meet future funding needs for replacing infrastructure in the "three waters" (water, wastewater and stormwater). We looked at current reserve levels, the funding requirements of replacing assets, and the projected rates revenue we will receive to establish the funding position over the next 30 years. Figures 1-3 show this. The black line shows the level of renewals required based on the current lives. The red line shows the level of renewals required based on current lives less 10%, and the blue line shows current lives plus 10%. The green shaded portion represents the renewals requirement with a +/- 10% variation in lives. The blue dotted line shows the expected depreciation expense, while the red dotted line shows the amount of depreciation that is funded. For water these 2 lines are the same. For wastewater and stormwater, depreciation is funded 85% in year 1, 90% in year 2, 95% in year 3, and then fully funded after that so there is a small deviation in the red and blue dotted lines Page 29 of 206

30 Million $ Draft Long Term Plan The Council Strategy Water For water, the level of depreciation funding collected from ratepayers is enough to pay for the future replacement of assets. Figure 1 Projected water reticulation replacement 70 Comparative CUMULATIVE Renewals Envelope to CUMULATIVE Depreciation Expense Envelope EXT RED STD DEP_EXP DEP_FND The 30-year capital and operating cost of water is detailed in the graph below: 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Cost of providing Water Opex Capex Page 30 of 206

31 Million $ Draft Long Term Plan The Council Strategy Wastewater For wastewater, in the later years of the LTP the forecasted depreciation collected is less than the expected costs for asset replacement. Council is comfortable with this because the expected upgrades in the wastewater plant are very likely to reduce asset replacement required in the later years. Figure 2 Projected wastewater reticulation replacement Comparative CUMULATIVE Renewals Envelope to CUMULATIVE Depreciation Expense Envelope EXT RED STD DEP_EXP DEP_FND The 30-year capital and operating cost of wastewater is detailed in the graph below: 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Cost of providing Wastewater Opex Capex Page 31 of 206

32 Million $ Draft Long Term Plan The Council Strategy Stormwater For stormwater, the level of depreciation funding collected from ratepayers is enough to pay for the future replacement of assets. Figure 3 Projected stormwater reticulation replacement Comparative CUMULATIVE Renewals Envelope to CUMULATIVE Depreciation Expense Envelope EXT RED STD DEP_EXP DEP_FND The 30-year capital and operating cost of stormwater is detailed in the graph below: 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Cost of providing Stormwater Opex Capex Page 32 of 206

33 Roading Draft Long Term Plan The Council Strategy Council does not put aside funding in an asset replacement reserve for the future replacement of our roads like it does for other core assets. Paying for upgrades, replacements, and maintenance to our roading network is paid for from rates that are collected in the same year that expenditure occurs. This is because: Council does not usually undertake significant improvements or additions to our roading network (i.e. we don't build new roads or significantly upgrade our roading system). If Council did build a new road, then it would be loan funded so that the cost of building the new road is borne by those who benefit from it. The pattern of expenditure on roading that we term as capital (for accounting purposes) is very similar from year to year. It is largely determined by the level of funding from NZTA and our historical spend to maintain our level of service. Our roading services team smooth the roading programme so that the projects are balanced between the years, and therefore the budgets do not vary greatly so there is no need to build a financial reserve for future capital expenditure. Bridge replacement is the exception to this as the cost of building new bridges is significant but is only required every few years. Most of our bridges do not need replacement for years. Estimates have indicated that putting aside $170,000 in an asset replacement reserve will provide adequate funding for bridge replacement. The One Network Road Classification (ONRC) involves the national classification of the roading network into six categories. A customer focused, business case approach associated with ONRC allows Council to bid for budget from the National Land Transport Programme so funding is targeted to where it is needed the most. Council has progressively been working on the classification impacts, particularly for road maintenance now and in future contracts. Table 1 contains the recommended average annual levels of renewal quantities over the next 20 years. Page 33 of 206

34 Table 1 Recommended Annual Renewal Quantities for Roading Infrastructure Draft Long Term Plan The Council Strategy Average Annual Quantity (cl.km/yr) Annual % Network / Year Rehabilitation % Chip Resurfacing % Thin AC Resurfacing % The 30-year capital and operating cost of Roading is detailed in the graph below: 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Cost of providing Roading Opex Capex Why Council improves existing infrastructure There are five reasons why Council would improve existing infrastructure services. These are responding to; increasing environmental expectations climate change natural hazards future population changes changes in economic activity Environmental expectations Over time Council has become more aware of how our activities impact the environment and this has resulted in an increased focus on reducing these impacts. As developments in science and technology occur, new ways of reducing the impact on the environment are implemented. An example of this is that the discharge of our wastewater treatment plants today is of a much higher quality (ie. discharges significantly lower levels of E coli, nitrogen and phosphorous into the waterways) than the wastewater that was discharged when the treatment plants were first constructed. The main areas in which this is likely to affect Council are as follows: Page 34 of 206

35 The Council Strategy Wastewater discharge standards in response to Healthy Rivers Plan Change 1. Councils four Wastewater Treatment Plants (WWTP) all operate under Resource Consents from Waikato Regional Council. Those resource consents are currently being renewed and we recognise that new wastewater discharge standards will be imposed. In anticipation of this, Council is currently reviewing options for upgrades at treatment plants and alternative disposal methods. Water drinking standards. Recent events within other districts have highlighted the need for increased quality control over drinking water standard. Council has been undertaking upgrades in its water treatment systems and is confident that we will be able to meet the new drinking water standards when they are introduced. Stormwater discharge quality. Future Plan Changes associated with Healthy Rivers Wai Ora will impact on the acceptable quality of our stormwater discharge into waterways. Council's stormwater discharge consents are due for renewal in 2025 and provision will be made in the next LTP for the impact of Healthy Rivers on our stormwater systems. Waihou River Catchment. Likely to have a similar regime to the Waikato River Catchment in terms of Plan Changes from Waikato Regional Council. This will impact "three waters" management for a part of Putāruru and Tīrau Climate change Climate change is likely to result in more extreme storm and drought events brought about by changes in rainfall, wind and temperature. This will require Council to assess the effects and impacts of key climate influences on water, wastewater, stormwater and roading infrastructure. The main areas in which this is likely to affect Councils infrastructure are: Increased rainfall intensity may affect the level of flood protection and the capacity of the stormwater drainage systems More frequent droughts may affect security of water supply, both the surface water intakes and the groundwater bores. Council already addresses extreme weather events and climate variations as we develop plans and provide services, and climate change effects will be considered as part of these existing regulatory and planning activities. It is vital that we integrate climate change into standard considerations to ensure that Council s current and future decisions about asset renewal and new capital expenditure will not be undermined by changes to the climate over the practical lifespan of those assets Natural hazards Natural hazards such as earthquakes and volcanic eruptions have the potential to cause damage to our infrastructure, and our proximity to the North Island volcanic plateau increases our risk. Council has well-developed systems to cope with natural disasters and staff who have been trained to operate an Emergency Operation Centre. In terms of resilience in the event of a natural disaster, Council has three standby generators on trailers that can be taken from site to site servicing the six water treatment plants, three water pump stations, four wastewater treatment plants and 18 wastewater pump stations as required. Council has a total volume of water stored in water supply reservoirs in an average 24-hour period of approximately 70% of full capacity. This provides just under two days storage of treated water at any one time. To mitigate against the possibility of flooding, Council has introduced an additional measure to indicate the design capacity of stormwater infrastructure to cope with flooding events. SWDC's Code of Practice requires an annual exceedance probability (AEP) design standard for primary stormwater network capacity of 10%, and 1% for secondary stormwater network capacity. Page 35 of 206

36 The Council Strategy Council has recently increased its insurance cover to ensure we have a higher level of cover for any replacements or repairs to above-ground and below-ground infrastructure in the event of a natural disaster, making us less reliant on central government funding Future population After a long period of population decline, the district s population now shows some growth, up by 1.7% in This increase was comprised of 50% natural growth and 50% net migration. The major driver for migration has come from rising house prices in Auckland which has resulted in population movement to the regions. It is anticipated that the population will continue to experience an increase over the next 30 years, providing an additional pool of ratepayers contributing to the cost of running and maintaining our infrastructure. However the proportion of people aged 65 years or older is also expected to increase which means more people on fixed incomes who may have a limited ability to pay for rate increases. Growth Planning for the District is likely to result in changes to the District Plan (see Section Growth in residential housing demand) to allow for more residential and commercial land development. Council's planning for additional development in Putāruru has indicated that more "three waters" infrastructure modelling and design is required. Council has budgeted to include $320,000 for continued data collection and modelling to inform design in and $250,000, in , for the design of critical network improvements to enable the infrastructure upgrades required for growth to occur. This funding does not include the actual upgrade of infrastructure. The cost of this is uncertain until the modelling and design work is complete. Council will engage with the community further when more information is known. In terms of demand for infrastructure, some needs of our community will change, for example, ensuring our footpaths are mobility scooter friendly will become more important. Growth in the number of households will determine the demand for increased water and wastewater reticulation Economic Activity Trends There are a number of economic activity trends that have been recognised as having the potential to impose high and/or seasonal demands on the infrastructure network. These demand drivers include: changes in land use from forestry to dairy increased input and output from dairy, meat and timber processes (as matured forestry becomes available for use) impact of future four-laning of SH1 from Auckland to Tīrau the heavy vehicle bypass of Taupo economic development in the region change in use of rail transport possible increases in water use by the bottling industry Major Infrastructure Projects - Cost Implications Wastewater Treatment Plant Upgrades / Resource Consent The resource consents for the Tokoroa WWTP and the Putāruru WWTP are currently being renewed. The resource consent for Arapuni WWTP expires in 2020 and for Tīrau WWTP in To operate in compliance with the new consents Council needs to decide what upgrades and disposal methods will provide the best long term solution for the community and the environment. These upgrades will come at a significant cost so it is important that Council is financially prudent when making these decisions with its partners and the community. Council needs to maintain an acceptable rate increase while creating a long term solution that has a positive impact on our waterways. Page 36 of 206

37 The Council Strategy Council, in conjunction with consultants, Raukawa and other iwi, are developing criteria to assess the benefits and costs of various solutions. The assessment criteria being considered are: Water bodies are accessible and safe to swim in, and take food from, all year round - this will look at the amount of improvement in bacteriological levels and water clarity. Nutrient removal - measures the amount of Nitrogen and Phosphorous removed. These nutrients are problems because they encourage the growth of plants and algae, reducing water quality by removing oxygen from the water and clogging flow. Acknowledges wahi tapu by recognising Māori beliefs and values. Caters for growth and staging - the ability of the solution to cope with future population growth, the need to remove more effluent and stagger the implementation of upgrades. The combined scores of the four criteria will be assessed against a fifth criteria, being 'cost to the average urban ratepayer (connected to the wastewater system)' for each possible solution. The potential increase in rates that could result from the possible solutions is significant. Council therefore proposes to set limits on any rate increase and the maximum value of loans that would need to be raised to fund the upgrades. The maximum increase in rates for an average urban resident, as a result of wastewater upgrades, would not be more than 20% over the 10-year LTP period. The total capital cost of these upgrades will be borrowed. To be prudent, Council have set a limit of $22.8 million for this which is included in this LTP. These costs have been based on plant upgrades occuring at all or some of the four WWTPs with little or no discharge to land. A capital cost of $22.8 million with annual operating costs starting at $500,000 in year 1 have been budgeted. Council believes that a limit of $22.8 million for capital is achievable so this has been used for estimating the rates impact. The $22.8 million capital expenditure is spread over eight years from 2020/21 and the additional annual operating expenditure would commence from 2021/22. This project will be treated as a single project as the total cost of the four WWTPs is added together and the rates averaged out across all wastewater connections for the four towns. This is in line with Council s rating system which 'harmonises' rates for the "three waters" and solid waste. These costs equate to an 18% increase in rates spread over the ten-year period to 2027/28 for an urban ratepayer with an average value property Other Council infrastructure to keep a watching brief on Roading - One Network Road Classification The One Network Road Classification (ONRC) is a classification system which divides New Zealand s roads into six categories based on how busy they are, whether they connect to important destinations, or are the only route available. The six categories are: National Arterial Regional Primary Collector Secondary Collector Access ONRC is a joint initiative between NZTA and Local Government NZ to establish nationally consistent priorities to inform asset management planning, investment decisions, and operational and maintenance decisions, and to ensure national funding is targeted to where it is needed the most. Page 37 of 206

38 The Council Strategy Council has developed a Transition Plan to progress the implementation of the ONRC. The Transition Plan identifies the approach to be taken to ensure that the ONRC will be fully embedded into Council s systems and processes by the time of the National Land Transport Plan. Council has completed initial ONRC requirements and the next phase is to assess our roading information against this classification and determine the financial impacts. This will require significant work associated with data collection, analysis and undertaking the Business Case approach to obtain NZTA funding for future projects. Work is currently being undertaken by staff and contractors on RAMM data collection and analysis. The financial and operational implications resulting from the ONRC will be identified for the next LTP Water - Drinking Water Standards The Government inquiry into Havelock North Drinking Water is expected to impact all drinking water suppliers with new reporting requirements to be implemented through Drinking Water Standards New Zealand within the next few years. The additional monitoring and reporting that will be required is manageable. The more significant scenario that Council may face as a result of the inquiry is if Government legislates to task Councils with monitoring of private suppliers within their districts. Although this is an unknown at this stage, Council should be aware of this possibility, as the impact would be considerable. The number, location, capacity and condition of the hundreds of private suppliers in the district is unknown. If this legislation is introduced, additional capital and operating costs can be identified at that time. After recent E-coli contamination of the water supply at the Pinedale Reservoir in Putāruru, Council is investigating options for new reservoirs and other methods to manage this risk. They are 28 years old. $80,000 has been included in the budget in to do this investigation and design. This expenditure is loan funded. The work will tie in closely with the investigation of the chlorination of the water supply for Putāruru from Te Waihou River. Page 38 of 206

39 3. FUNDING AND RATES Nga Tāke Kaunihera me Te Pūtea Whakahaere Draft Long Term Plan Funding and Rates This chapter looks at where Council sources its funds and where it spends the money it collects. It also includes information on the rating policy, rates examples and the proposed individual rates charges for the ten years of the LTP. It concludes with a high-level explanation of the reasons rates have proposed to increase between and Where will Council receive funding from in ? Where will Council's funding come from in ? Other Revenue 6% Fees & Charges 10% Subsidies & Grants 11% Rates 73% Source Subsidies and Grants Fees and Charges Other Income Rates Examples Council collects from government agencies like the New Zealand Transport Agency for roading projects and maintenance. Council collects from things like pool entry, library charges, dog registrations, building consent fees etc. Council receives income from investments as well as a small amount of other income from a number of sources, such as rate penalties. Council collects from you via your rates bill. Page 39 of 206

40 Funding and Rates 3.2. Where will Council spend money in ? Where will Council spend its rate money in Water Supply 10% Regulatory 9% Economic & community development 9% Governance & Corporate 4% Solid Waste & Recycling 6% Stormwater 3% Wastewater 16% Community Facilities 11% Transport & Roading 17% Property 3% Parks and Reserves 12% Service Regulatory Solid Waste & Recycling Wastewater Roads Stormwater Water Supply Parks and Reserves Community Facilities Economic and Community Development Property Governance & Corporate Examples Animal control, building control, environmental health, liquor licensing, parking, planning, emergency management Landfills, refuse and recycling collections, planned maintenance, new recycling centre in Tokoroa Reticulation and treatment of sewage, improvements to wastewater treatment plants Road resurfacing, road rehabilitation, signage renewal and replacement, lighting, street fixtures, road safety education, culverts and footpath renewal Monitoring and maintenance of existing networks Water treatment and supply, pipe replacement, planned maintenance of existing system, system upgrades, reticulation replacements, commercial water meter upgrade, compliance with Drinking-water Standards for New Zealand Parks and reserves, cemeteries, sportsgrounds and playgrounds South Waikato Indoor Pools, seasonal pools at Putāruru and Tīrau, pool programmes like 'Woggles', 'Learn to Swim and 'Swim Academy'. Three district libraries, library programmes like 'Summer Reading' and 'School Holiday Programmes', internet access, toy library collection, puzzles, DVDs and magazines. Talking poles. South Waikato Sport and Events Centre. Events, community advocacy, grants, economic development and community contracts Council buildings including urban toilets Council meetings, elections, Tīrau Community Board, long term planning and managing Council business Page 40 of 206

41 Funding and Rates 3.3. The Rating Funding Impact Statement Te tuhinga pūtea whakatipu Please note that the Funding Impact Statement is presented for compliance with Local Government (Financial reporting) Regulations The information presented is not presented in compliance with New Zealand generally accepted accounting practice (GAAP) and does not include depreciation and other items of a non-cash nature. The funding impact statement policy This is a summary of where money will come from, for the year commencing 1 July The following rates have been set by the South Waikato District Council under the Local Government (Rating) Act 2002, on rating units in the district, for the financial year commencing 1 July 2018 and ending on 30 June Note: All per unit rates are quoted inclusive of GST and rate revenue to be collected is GST exclusive. The rating system used for the general rate and some of the targeted rates is capital value, and the property valuations produced by Opteon Technologies Ltd effective 1 July 2015 are used for the rating year. It should be noted that a separately used or inhabited part of a rating unit includes any portion inhabited or used by the owner/a person other than the owner, and who has the right to use or inhabit that portion by virtue of a tenancy, lease, license or other agreement. This definition includes separately used parts, whether or not actually occupied at any particular time, which are provided by the owner for rental (or other form of occupation) on an occasional or long-term basis by someone other than the owner. Examples of separately used or inhabited parts include: a property contains two or more separately occupiable units, flats or houses a residential, lifestyle or rural property contains separately occupiable areas with a separate business operating in that area or areas a commercial or otherwise non-residential property contains separate residential accommodation commercial premises or office blocks containing separate shops, office areas, workshops, warehouses or other areas, each operated as a separate business in those premises. For the avoidance of doubt, a rating unit that has a single use or occupation is treated as having one separately used or inhabited part. Limitation on uniform rates Section 21 of the Local Government (Rating) Act 2002 puts a legislative limit on the amount of rates that can be collected from certain uniformly charged rating mechanisms. In relation to the requirements of that section, the forecast for the year is 29.9% and for the years is 25%. The maximum limit is 30% General rate A general rate of $ per dollar of the rateable capital value of every separate rating unit in the district. The rate is expected to produce $11,559,892 (excluding GST). (Pursuant to Section 13 of the Local Government (Rating) Act 2002) Uniform annual general charge A uniform annual general charge of $ on every separate rating unit in the district. The rate is expected to produce $5,915,252 (excluding GST). (Pursuant to Section 15 of the Local Government (Rating) Act 2002) Page 41 of 206

42 Additional unit rate Draft Long Term Plan An Additional unit rate is charged to any rating unit that has more than one separately used or inhabited part as follows: Funding and Rates For each residential part of a rating unit: A targeted rate on a uniform basis of $ on each separately used or inhabited part of a rating unit beyond the first dwelling or non-residential part. The rate is expected to produce $799,248 (excluding GST). For each non-residential part of a rating unit: A targeted rate on a uniform basis of $ on each separately used or inhabited part of a rating unit beyond the first dwelling or non-residential part. The rate is expected to produce $120,546 (excluding GST). For clarification, a residential part means a self-contained house, unit, flat or similar, designed for or used primarily for residential purposes. A non-residential part means a shop, offices, workshop, warehouse, separate yard or similar, designed for or used primarily for non-residential purposes. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Water supply charge Water supply - metered For Rating units that are solely and exclusively supplied via a metered water supply: A targeted rate on a uniform basis of $ Plus, water used in excess of 320m3 per annum shall be charged at $1.10 m3, or where water is used in excess of 200m3 per day this shall be charged at $1.30 m3. Water supply - partly metered or sharing a metered supply: For Rating units that have a mixture of metered and non-metered water supply, or that share a metered water supply with another rating unit: A targeted rate on a uniform basis of $ for each separately used or inhabited part of a rating unit connected to the Council water supply Plus, water used in excess of 320m3 per annum per separately used or inhabited part of a rating unit connected to the Council water supply shall be charged at $1.10 m3, or where water is used in excess of 200m3 per day this shall be charged at $1.30 m3. Water supply - other For rating units located within any area shown on the rating maps 2592, 2595, 2589, 2591, 2587 or 2594 that have a non-metered water supply: A targeted rate on a uniform basis of $ for each separately used or inhabited part of a rating unit connected to the Council water supply. A targeted rate on a uniform basis of $ for each separately used or inhabited part of a rating unit that is not connected to Council's water supply being 50% of the total charge. For rating units located outside any area shown on the rating maps described above that are serviceable but not connected to a Council water supply: A targeted rate on a uniform basis of $ for each rating unit being 50% of the total charge. Rates expected to produce $2,819,768 GST exclusive from uniform targeted rates and $302,200 GST exclusive from charges for water used in excess of allowances. (Pursuant to Section 16 and Section 19 of the Local Government (Rating) Act 2002) Wastewater disposal charge For all rating units located within any area shown on the rating maps 2593, 2588, 2590 or 2586: Residential use: Page 42 of 206

43 Funding and Rates A targeted rate on a uniform basis of $ on each separately used or inhabited part of a rating unit with a residential use that has a water closet or urinal connected either directly or through a private drain to a Council waste water network. Not connected: A targeted rate on a uniform basis of $ on each separately used or inhabited part of a rating unit with a residential use that is not connected to a Council waste water network. This is 50% of the total charge Schools: For land used as a school: A targeted rate on a uniform basis of $ on each water closet or urinal connected either directly or through a private drain to a Council waste water network. School has the same meaning as contained in Clause 6 of Schedule 1 of the Local Government (Rating) Act 2002 with the exception that residential accommodation used by a school employee is not included. This is 67% of the total charge All other non-residential use: A targeted rate on a uniform basis on each water closet or urinal connected either directly or through a private drain to a Council waste water network, as shown below. In respect of the first five pans and/or urinals within the rating unit, a targeted rate on a uniform basis of $ per pan. In respect of each pan and/or urinal within the rating unit in excess of five a targeted rate on a uniform basis of $ per pan. This is 80% of the total charge. Not connected: A targeted rate on a uniform basis of $ on each separately used or inhabited part of a rating unit that is not connected to a Council waste water network. This is 50% of the total charge. The rate is expected to produce $3,520,523 GST exclusive. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Stormwater rate For all rating units located within any area shown on the rating maps 321, 319, 320 or 318: A targeted rate for stormwater disposal of $ per $ of the Rateable Capital Value. The rate is expected to produce $702,630 GST exclusive. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Waste collection charge A targeted rate for waste collection to be charged on a uniform basis at $36.62 for each separately used or inhabited part of a rating unit provided with a waste collection service. The rate is expected to produce $255,760 (excluding GST). (Pursuant to Section 16 of the Local Government (Rating) Act 2002) District recycling charge A targeted rate for district recycling to be charged on a uniform basis at $56.73 on each separately used or inhabited part of a rating unit in the district. Rating units that are located in a rural area and used as a school as described in clause 6 of schedule 1 part 1 of the Local Government (Rating) Act 2002 or used as a Marae or meeting house as described in clause 12 or 13 of schedule 1 part 1 of the Local Government (Rating) Act 2002 will have targeted rates of $0.00. Rating units with an Improvements Value of $10,000 or less will have a targeted rate of $0.00. Improvements value is calculated as the capital value of the rating unit minus the land value of the rating unit. The rate is expected to produce $528,487 (excluding GST). (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Page 43 of 206

44 Putāruru Business Promotions charges Draft Long Term Plan Funding and Rates Council proposed to rate for the Putāruru business promotions charge in two ways; on capital value and on a uniform charge. Each would collect half the funds required for this activity. In previous years this rate was charged on a capital value basis only. Targeted Rate on Capital Value: A targeted rate of $ per dollar of the capital value of land on every separate rating unit located within the area shown in the Putāruru business rate area rating map. The targeted rate on capital value is expected to produce $32,195 (excluding GST) for the promotion of the Putāruru business area. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Targeted Rate on a Uniform Basis: A targeted rate charged on a uniform basis of $ on every separate rating unit located within the area shown on the Putāruru business rate area rating map. Rating units with an improvements value of $10,000 or less will have a uniform targeted rate of $0.00. Improvements value is calculated as the capital value of the rating unit minus the land value of the rating unit. The targeted rate on a uniform basis is expected to produce $32,195 (excluding GST) for the promotion of the Putāruru business area. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Tīrau Ward community board charge A targeted rate charged on a uniform basis at $24.83 on every separate rating unit within the Tīrau ward as defined on SWDC plan The rate is expected to produce $20,122 (excluding GST) for the activity of the Tīrau Community Board. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Putāruru promotion charge A targeted rate charged on a uniform basis at $34.40 on every separate rating unit within the Putāruru ward as defined on SWDC plan The rate is expected to produce $77,394 (excluding GST) for Putāruru promotion activities. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Tokoroa promotion charge A targeted rate charged on a uniform basis at $15.82 on every separate rating unit within the Tokoroa ward as defined on SWDC plan The rate is expected to produce $81,187 (excluding GST) for Tokoroa promotion activities. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Hall charges A targeted rate on a uniform basis on every separate rating unit within the hall area as defined on the SWDC plan stated. The rates will be used for providing a hall in the respective area. (Pursuant to Section 16 of the Local Government (Rating) Act 2002) Page 44 of 206

45 Funding and Rates Hall Rating Area Uniform Annual Charge $GST Incl Rate Expected to Produce $GST Excl SWDC Plan Arapuni , Lichfield , Puketurua , Piarere Tapapa-Okoroire , Upper Atiamuri , Waotu , Hall rating Note that the Plaza in Putāruru and the Tīrau Hall are funded through General Rates and the Uniform Annual General Charge Clean Heat A targeted rate charged on a uniform basis at %, based on the extent of service provided. The rate is expected to produce $160,970 (excluding GST). (Pursuant to Section 16 of the Local Government (Rating) Act 2002) The Clean Heat targeted rate applies to services that have been provided under Councils 'Heat Swap', 'Buy Now Pay Later' and 'Split the Bill' schemes Due dates for payment of rates Instalment No Period Invoice Date Date for last day of payment (before penalties apply) 1 Jul Sept August September Oct Dec November December Jan Mar February March Apr June May June Additional charges (penalties) An additional charge of 10% is to be added to all rates levied in respect of the financial year and which, although due, remain unpaid on the following dates: Instalment No 1 7 September 2018 Instalment No 2 7 December 2018 Instalment No 3 7 March 2019 Instalment No 4 7 June 2019 A further additional charge of 8% is to be added to all rates levied in any financial year prior to the financial year and which remain unpaid on 7 December Page 45 of 206

46 Funding and Rates A further additional charge of 8% is to be added to all rates levied in any financial year prior to the financial year and which remain unpaid on 7 June (Pursuant to Sections 57 and 58 of the Local Government (Rating) Act 2002) Due dates for payment of invoices for metered water rates Invoices for rates relating to water consumed in excess of allowances as detailed in section Water Supply will be issued separately on 31 August 2018, 30 November 2018, 28 February 2019 and 31 May 2019, with due dates for payment of 20 September 2018, 20 December 2018, 20 March 2019 and 20 June 2019 respectively Payment of rates Rates shall be payable at any of the following locations: Tokoroa Office, Torphin Crescent, Tokoroa, between the hours of 8.00am and 5.00pm, Monday to Friday. Putāruru Office, Overdale Street, Putāruru, between the hours of 8.00am and 5.00pm, Monday to Friday. Tīrau Information Centre (The Dog), Main Road, Tīrau, between the hours of 9.00am and 5.00pm, Monday to Friday. Payment may also be made electronically via: Direct credit via the ratepayer's banks Bill Payments system (we are pre-registered with all major banks), or by direct credit to Council's bank: BNZ (ensuring property valuation number or water account number is referenced), or by credit card (Visa or Mastercard) via Council's website ( Rates examples Detailed below are rate calculation examples for Tokoroa, Putāruru and Tīrau residential, lifestyle and rural properties. Please note that these are examples only using an average property value. The change in average property values between and represents the forecasted increase in district property values that will occur as part of the district revaluation as described in section District Valuation and Impact on Rates. Page 46 of 206

47 Funding and Rates Page 47 of 206

48 Funding and Rates Targeted Rating Maps Page 48 of 206

49 Funding and Rates Page 49 of 206

50 Funding and Rates Page 50 of 206

51 Funding and Rates Page 51 of 206

52 Funding and Rates Page 52 of 206

53 Funding and Rates Page 53 of 206

54 Funding and Rates Page 54 of 206

55 Funding and Rates Page 55 of 206

56 Funding and Rates Page 56 of 206

57 Funding and Rates Page 57 of 206

58 Funding and Rates Page 58 of 206

59 Funding and Rates Page 59 of 206

60 Funding and Rates Page 60 of 206

61 Funding and Rates Page 61 of 206

62 Funding and Rates Page 62 of 206

63 Funding and Rates Page 63 of 206

64 Funding and Rates Page 64 of 206

65 Funding and Rates 3.4. Proposed rates table Proposed Rates Table Includes GST 2017/ / / / / / / / / / /28 General Rate UAGC Additional Dwelling Rate Putaruru Business Promotion Rate (cap value Putaruru Business Promotion Rate (rate unit) Waste Collection Rate District Recycling Rate Urban Sewerage Disposal Rate Urban Stormwater Rate Urban Water Supply Rate Piarere Hall Rate Upper Atiamuri Hall Rate Puketurua Hall Rate Waotu Hall Rate Lichfield Hall Rate Arapuni Hall Rate Tapapa Hall Rate Tirau Ward Community Board Rate Tokoroa Promotions Rate Putaruru Promotions Rate Note 1 Dollar per $100 of rateable value Note 2 Rate per rateable property unit All rates are inclusive of GST Page 65 of 206

66 Funding and Rates 3.5. Major Variances in Rates Year 1 of the Long Term Plan (LTP) indicates an increase in rates of 7.7% over the previous year's rates. Council has been very conscious of the impact on our community of a large rates increase has and have worked hard to keep this rates increase down but the significant issues detailed in Chapter 1 of this LTP has made this hard to achieve. The most significant variances in rates from Annual Plan to the LTP budget are as follows: 1. Rates funding for asset replacement. Council's capital expenditure on infrastructural and other asset in recent times has meant that there is a need to increase rates to cater for increased asset replacement funding. Some of these purchases have been funded by loans so loan interest has increased also. 2. Increased costs in Council operations. Additional funding for the operations and upgrades for roading, water, wastewater, solid waste and information technology to cope with the increasing demands on services has been budgeted. This is required for Council to remain financially and operationally resilient in the future. Additional staff will need to be employed to cope with increased operational demands and the pressures of growth and customer demand. 3. Coping with Growth. Funding has been required to plan for changes in infrastructure and the District Plans to cope with growth in our towns Financial Prudence benchmark disclosure for years What is the purpose of this statement? The purpose of this statement is to disclose the Council's planned financial performance in relation to various benchmarks to enable the assessment of whether the Council is prudently managing its revenues, expenses, assets, liabilities, and general financial dealings. The Council is required to include this statement in its long term plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 2014 (the regulations). Refer to the regulations for more information, including definitions of some of the terms used in this statement Rates affordability benchmark The Council meets the rates affordability benchmark if - its planned rates income equals or is less than each quantified limit on rates; and its planned rates increases equal or are less than each quantified limit on rates increases. Page 66 of 206

67 Funding and Rates Page 67 of 206

68 Funding and Rates Debt affordability benchmark Balanced budget benchmark Page 68 of 206

69 Funding and Rates Essential service benchmark Debt servicing benchmark Page 69 of 206

70 4. CONCEPT PLANS Ngā Mahere o te Āpōpō Draft Long Term Plan Concept Plans Concept plans help define each town's point of difference, its priorities and how Council can work with the community to help create vibrancy within and direction for each town. Maintaining each community's individuality and special character is another key element of these plans. Concept plans are an integral part of informing Council's LTP. They consider the key facilities and services Council provides while supporting the social fabric of towns. Moving forward into the next ten years the concept plans for Tokoroa, Tīrau and Arapuni will be redeveloped over the two years starting working closely with the communities. Tokoroa is currently implementing the plan for the redevelopment of the town centre focussing on Leith Place. Council is proposing the employment of a Town Centre Manager function to help activate and support economic and community development in Tokoroa. The concept plan for Tokoroa will include identifying and prioritising both short and long term actions for the community. One of the key objectives of this plan is to consider ways of building community sustainability. The basis for the revised Putāruru Concept plan has been completed in partnership with Pride in Putāruru and Putāruru Moving Forward. The remaining work required for the concept plan is the development of the detailed content and specific actions with the plan to be finalised by mid As part of the concept plan process a significant amount of work was completed in the 2017 year to develop a growth plan for the Putāruru community. The implementation of this plan, including its inclusion in the District Plan, is a key component of the LTP actions for Putāruru. The concept plans for Tīrau and Arapuni will be redeveloped over the two years starting in working closely with the communities. The Tīrau Community Board has considered the current Tīrau Concept plan (Tīrau 2020) and decided that the Plan is largely sound and provides a solid basis for an update to reflect current priorities. Detailed actions will be developed with the community over the next year. Arapuni is developing a Residents' Association which will have clear views on important issues that require discussion as this community continues to develop into an attractive lifestyle destination. Council is working with the community to update previous plans and help define future actions for Arapuni while protecting its special character. The Long Term Plan provides an opportunity to update our concept plans by incorporating them formally into the Long Term Plan process and document. The advantage of this is that it allows the concept plans to link to our Council outcomes and strategies and it also means that the future actions recommended by the concept plans have money and resourcing allocated to them Status of the existing concept plans These plans were reviewed and considered as part of the District Plan Review which became operative in Many of the concepts were incorporated into the Zone Statements, Anticipated Environmental Results, performance standards and other methods. Each concept plan had principles and an action plan which described what activities were going to be undertaken and what agency (or agencies) were going to be responsible for undertaking the actions. The tables below present the actions, whether they have been done and if not, why not. Page 70 of 206

71 Concept Plans Tokoroa Principles: Celebrating diversity (cultural well-being) Attractive, thriving town (urban beautification) A prosperous community (economic development) Keeping it green (environmental enhancement) Healthy, happy and safe (social well-being) Action Plan Leader Current LTP Status Consider options for redesigning Leith Place to make it more appealing to visitors and residents Council Construction for Leith Place began in April 2018 with the removal of street trees. The completion of the new information centre, landscaping and paving is scheduled to be completed in early The project is being led by DCA Architects and includes an iconic building housing the i-site and toilet facilities, and the creation of a wider plaza area and relocation of a number of talking poles. Increased promotion of adopta-street initiatives and CBD beautification, including tidy-up of derelict and run-down commercial buildings Council (lead only), residents and businesses $20,000 has been put into the budget to support the tidy-up or demolition of derelict buildings. This project is ongoing. Funds to date have been used for court enforcement and offered to landowners for landfill fees if buildings demolished. In future, this fund may be used to subsidise purchase of unkempt land and buildings to enhance the neighbourhood. Additional funding has been added to the LTP to improve the maintenance of our towns. Complete and implement the Transport Corridor (SH1) Strategy to attract increased numbers of travellers into Tokoroa s CBD Council and NZTA Funds have been allocated by NZTA for the redevelopment of SH1 through Tokoroa as part of the Leith Place/CBD upgrade to improve the traffic movement between SH1 and Leith Place. This is due to be completed in 2018/19. Council will continue to work with NZTA on the SH1 corridor strategy with particular reference to how SH1 integrates and impacts on our towns. Construct and establish the Council, Sports and South Waikato Sport and Leisure Board Events Centre as the key facility for community recreation events in Tokoroa and surrounding areas The South Waikato Sport and Events Centre is now firmly established as a key facility for sport and events here in the South Waikato. In this LTP there is to be further development of the Centre with the addition of an emergency generator Establish a prominent What s Council, mainstreet On In Tokoroa sign for the organisation, service benefit of visitors and residents clubs, Sports and Leisure Board Currently being effectively utilised and providing information to visitors and resident on the Northern and Southern entrances into Tokoroa. Page 71 of 206

72 Action Plan Leader Current LTP Status Draft Long Term Plan Concept Plans Future Talking Poles events and development of Talking Poles Trail Council With the redevelopment of Leith Place/CBD led by DCA Architects this includes the creation of a Talking Pole 'forest' in the south-east corner (opposite McDonalds), incorporating existing talking poles moved to the site and potentially some new poles, conversing with each other and with visitors to tell the story of Tokoroa. On top of the cultural and heritage significance of the new forest, a mighty stand of pou will be a strong visual reference for passers-by on SH1. Work together as a community Raukawa Trust Board, Council has and will continue to put significant effort to fulfil the aspirations of hapū schools, wider community into the development of our relationship with Iwi. The and whānau (eg, Raukawa Reo development of an engagement strategy and the Strategy) practical engagement such as joint Hui with Raukawa on the Wastewater plant upgrades and the Te Waihou development all support this closer relationship. Economic development Council, industry projects (eg, Dairy Push, trades training, tourism and investment promotion) With the employment of an Economic Development Manager and initiatives from the SWIF Trust it is expected that business in the South Waikato will steadily increase. Develop walkways and cycleways, particularly along streams and close to bush areas (eg, following Whakauru Stream) Reduce the amount of litter around town entranceways, parks and reserves Maintain and further develop anti-graffiti initiatives Council Council and Contractors Council Ongoing. Council is continuing to fund Waikato River Trails. Council is continuing to fund a litter collection contract and a staff member is partially employed to support this cause. Council continues to employ a staff member to undertake graffiti removal. Replant CBD gardens Council This is considered to be a part of the Leith Place/CBD redevelopment. As such this is due to be completed by early Implement Tokoroa Airport Strategic Plan Council Council considers the airport to be of economic importance to the district. Council plans to consider the potential options for future development of the airport moving forward. Improve student engagement and achievement Schools, communities, Council continues to support the Trades Training Ministry of Education, Centre. Youth Council, Toi Ohomai (Waiariki), Raukawa Trust Board, Te Wananga O Aotearoa Ensure local organisations that address community safety are sufficiently supported to address domestic violence, youth offending and other concerns Police, Council, South Council has purchased and manages a network of Waikato Safer Community CCTV cameras in the Tokoroa CBD Council, local communities Page 72 of 206

73 Action Plan Leader Current LTP Status Draft Long Term Plan Concept Plans Investigate the potential to Council establish a South Waikato Community Foundation, to encourage local giving for local purposes Concept not developed CBD market days, competitions, awards, events and street entertainment Tokoroa mainstreet organisation and retailers This work will be undertaken as a function of the Town Centre Manager role which is proposed to be advertised after the completion of the CBD/Leith Place redevelopment. Implement South Waikato Local Council, industry and Action Plan for Climate other stakeholders Protection Council is currently considering the best strategic direction to undertake in terms of climate change. Council is aware of the new goals set at the Paris Agreement and the new policy direction of the Labour government will require Council to invest time and effort into addressing this important issue. Urban tree beautification programme Investigate options for a more co-ordinated approach and incentives toward community environmental initiatives (eg, Adopt-a-Gully ) Develop and enhance Lake Moananui Maintain and develop Youth Council and implement other aspects of the South Waikato Youth Strategy Council Council Council Council, Raukawa Trust Board, schools, others Council recently adopted the street trees policy with the aim of improving the quality of trees in our towns. Ongoing. Council continues to facilitate a number of environmental initiatives such as EnviroSchools. Council undertook dam repairs, silt removal and silt trap projects and have been completed plantings. Council is looking at further options that could be consider to enhance this asset. The LTP includes a task to develop a Youth Strategy. Investigate establishment of an Events Manager role for the district Council Council has chosen not to establish this position. Instead the proposed function of this position has been undertaken internally by members of the community team. Pacific Arts Tourism Initiative Local Pacific Islands stakeholders This is not a Council-led initiative. Page 73 of 206

74 Concept Plans Putāruru Pride in Putāruru and Putāruru Moving Forward are currently working with Council on the development of a new Concept plan. The new concept plan for Putāruru has been out for public consultation and is to be endorsed by Council in July A summary from the draft concept plan follows: Putāruru is a great place to live. We enjoy wonderful natural surroundings and resources, we have a central location and we have an engaged and caring community. The Blue Springs/Te Waihou Walkway is at our doorstep and we have a number of unique, local businesses leveraging the purity of our surroundings and inspiring a growing interest in artisan food and beverages. Putāruru is affordable relative to other parts of New Zealand making it attractive not only for people to live in, but for business development. Our town is growing, and this concept plan is our blueprint for how we intend to direct that growth; activate business development and activity in our town; leverage opportunities arising from our natural assets as well as the increasing visitor and tourism trade. For our town centre areas, this concept plan paints a vision for three distinct precincts, and how we see each of these developing. We want to celebrate the unique properties and purpose of each precinct, whether it be services to support our rural businesses, services to attract visitors to stop, or the essential services that our community need day-to-day In order to manage our growth well, this concept plan identifies a number of challenges and opportunities that we are going to focus our attention on. These include: Managing the growth in a planned and staged manner Creating a more vibrant and appealing town centre to encourage people to stop in Putāruru Developing our existing businesses and attracting new businesses Managing vehicular traffic and ensuring that upgrades to the State Highway don t compromise the amenity and operation of our town, but instead enhance it Ensuring our young people feel a sense of connectedness; that they have a voice in decisions which affect them and that they have employment pathways locally Making good use of our recreation spaces, and ensuring their ongoing viability, and Ensuring that Te Waihou is protected, but that we also obtain positive economic benefits from the tourism associated with it. We have all the elements in place to make our town more vibrant, to have successful businesses and be a welcoming and interesting place to visit. Our business community and local council have a good working relationship, and there is a desire to work together. The Concept plan contains a detailed action plan and whilst the plan doesn t commit each agency to these particular tasks, it provides a solid basis from which we can work together to help us achieve more for our people and our businesses, rather than leave it to chance. Page 74 of 206

75 Concept Plans Tīrau Principles: Thriving retail village Beautiful and unique Planning for the future Excellent services, facilities and infrastructure Leisure for life Friendly, engaged community TCB = Tīrau Community Board Action Plan Leader Current LTP Status Infrastructure planning Council Council continues to prepare Asset Management Plans regularly. Voluntary design guide - non binding document for new businesses about how to achieve the Tīrau look and feel TCB/TBA TCB initiative. Review off-street parking signage Council Council has recently engaged Traffic Design Group to prepare a plan of parking, signage, the gateway into Tīrau, and how to address safety Develop a visitor survey as input to Tīrau Marketing Plan Complete the new access road to Tīrau Dairy Factory Reserve Management Plan for Tīrau Domain TBA/Council Council Council Council has employed a Marketing Officer to facilitate the marketing of the district to outside visitors. This project was completed by the last LTP. The Transport and Roading team indicate that the project is functioning well. A Concept plan was developed by Boffa-Miskall in 2017, detailed costings for items/facilities were completed in August 2017 for TCB and Council consideration. The plan went out for public consultation at the same time as the Draft LTP Toilet block at Aniwaniwa Reserve and Council general upgrade including access and signage Council has decided that developing Aniwaniwa Reserve is not a priority at this stage because of the cost. Negotiate development of new walkways: Walkway linking Church Street to Hillcrest Street Walkway and lookout above Bexhill Terrace walkway and lookout Fairview Street Reservoir walkways along Oraka Stream Other walkways, including rural walkways Council/TCB Council and the TCB consider the development of the Tīrau Domain to be the priority at this time. Page 75 of 206

76 Action Plan Leader Current LTP Status Draft Long Term Plan Concept Plans Investigate additional off-street parking, and better lighting for the Station Road carpark Negotiate with specific land owners around potential location of a Village Green Negotiate with businesses regarding potential toilets for the public at top of the hill Enhance existing walkway through Matamata County Reserve Council TCB/Council Council Council Completed Completed. Iconic corrugated iron public toilets were installed on Hillcrest Street. Platform constructed by railway crossing for access from Bridge Street to the Domain. Ramp now costed and to be constructed 2017/18, once completed the next stage is to construct a metalled path from ramp to sealed road and install a pedestrian gate to allow access into ex- landfill area. Existing Matamata County metalled track needs upgrading and clearance of poor specimen trees within the reserve. Youth employment initiatives TCB TCB initiative. Enhance Prospect Reserve for residents and visitors Promote cultural awareness (eg. ethnic events) Council TCB Ongoing maintenance ensures that the Prospect Reserve looks attractive. TCB initiative. Page 76 of 206

77 Concept Plans Arapuni Principles: A pristine environment with abundant native flora and fauna, little pollution or waste, and attention to recycling Providing for visitors including access, open space, seating and public conveniences Maintaining and recognising historic buildings and sits, parks, reserves and walkways Encouraging local food, arts and crafts A village that is an outstanding example of community involvement and commitment A village that provides employment opportunities for its residents. MRP = Mighty River Power ARA = Arapuni Residents Association WRTT = Waikato River Trails Trust Action Leader Status Visitor café, visitor information, public toilets, and visitor transport Private Investor To date a café has opened in Arapuni. Council has built public toilets next to the swing bridge on Arapuni Road. The remaining and future projects will be considered as part of the concept plan development process for Arapuni. Visitor parking Council Completed - carparking has been constructed outside the swing bridge. Billboards Council/ARA Completed Streetscape plan and landscaping of entranceways MRP/Council/ARA Trees were planted in road reserves Additionally, planted traffic Islands installed Visitor marketing signage, tourism maps and brochures Council/ARA Council has developed signage and brochures. Feature map for the village ARA/Council Completed Arapuni website Council/ARA Council has continued to maintain a section on Arapuni on the Council website. Tourism cluster development Council Ongoing. The District Plan review will start during the first three years of the LTP Waikato River Trails development WRT Council will continue to support and further the development of WRT. Graffiti busting ARA/Council Ongoing. Staff member employed to undertake this. Upgrade Jones Landing boat ramp Aniwaniwa Reserve public access and signage Council Council Completed Council has since decided not to develop Aniwaniwa Reserve. Aniwaniwa Reserve landscaping Rural Reserves Management Plan Apply for Slow Town accreditation Council Council ARA/Council Council has since decided not to develop Aniwaniwa Reserve The current Rural Reserves Management Plan is due for review in the 2018/19 financial year. New concepts and initiatives will be developed in the new concept plan for Arapuni to see whether this is still a focus. Page 77 of 206

78 Concept Plans Action Leader Status Arapuni Village Market ARA/Council This initiative will be reassessed as part of the development of a new concept plan for Arapuni. Better linkages with Pride in Putāruru (PIP) and Putāruru Visitor Information Centre ARA/PIP ARA/PIP initiative Rubbish bins Council Two additional litter bins provided in 2017/18 Capex programme within Village Green/walkway to Swing bridge area. District Plan review Council This project was completed on 1 July 2015 when the new District Plan provisions establishing the Arapuni Village zone became operative. Sewerage upgrade to connect café and toilets and residents south of Coates Road Council Residents in the area still remain unconnected to a sewerage scheme. Traffic safety measures Council/ARA Ongoing. Extend kerbside refuse Council collection south of Coates Road Completed. Trial of kerbside refuse and recycling service Council Completed. Coates Road intersection Council Completed. Tidy up existing recycling depot ARA Removed. Increase water pressure in the village Investigate sewage treatment capacity Arapuni Road deviation to correct dangerous S bend Rural road construction and maintenance Tidy up walkways, parks and playgrounds Council Council Council Council Council Completed. Community consultation in 2017 indicated that there are no capacity issues with sewage in the area and that there is still room to grow. Completed Ongoing. This work is an ongoing project. It is part of the Northern Open Space Maintenance Contract work. Address issues important to youth, including youth development programmes and recreational facilities Ongoing This LTP work plan has commitment to the development of a Youth Strategy. Preserve and maintain Village Green, including Reserve Management Plan Under investigation The current Rural Reserves Management Plan is due for review in the 2018/19 financial year. Tree maintenance works within Village Green are to be undertaken in 2018/19 financial year. The instalment of replacement goalposts on rugby field is a part of this project. Community events calendar ARA/Council In general, for the whole district there are two community event calendars maintained by Council. The first is a general calendar maintained by the Community team and is shared with the community via the work that the Communications team does through social media and the In Touch newsletter. Page 78 of 206

79 Concept Plans 4.2. What are our plans going forward? To update and incorporate the concept plans into the Long Term Plan so that we have one strategic document that identifies what our priorities and plans are for each community. We have also decided to do a 'concept plan' covering our rural area Tokoroa The major projects planned for Tokoroa over the next ten years are shown below in two tables - the first, with an associated map showing where the projects are, details the Community and Councillor aspirations while the second table details council's more operational and replacement capital expenditure. Community and Councillor aspirations Year/s Cost $000 1 Tokoroa CBD / Leith Place Upgrade ,572 2 Events Centre generator Review our customer service offering to provide a more effective experience Tokoroa Office utilisation 2019 & Lake Moananui toilet Memorial Sportsground field lighting renewal Stanley St Reserve new playground equipment Strathmore Park fence replacement Tokoroa skatepark basketball 1/2 court Tokoroa Indoor pool upgrade , Memorial Sportsground building rationalisation Tokoroa Library reroofing and water tightness Solid Waste disposable - landfill future ,805 Page 79 of 206

80 Concept Plans Page 80 of 206

81 Concept Plans Operational and Replacement Capital Activity Project Year Cost $000 Water - Tokoroa Programmed maintenance Water - Tokoroa Water plant and equipment replacement Water - Tokoroa Reticulation replacements ,802 Sewerage - Tokoroa Ultraviolet lamps Sewerage - Tokoroa Wastewater plant and equipment replacement ,236 Stormwater - Tokoroa Minor new works projects Stormwater - Tokoroa SH1 Stormwater Waste Disposal - District Landfill Waste Disposal - District Landfill Landfill capital programme Landfill aftercare Cemeteries - Tokoroa Cemeteries - expansion and facilities Tokoroa Airport Reseal runway Events Centre Plant replacement Pools - Tokoroa Capital programme Libraries - Tokoroa Capital programme Talking Poles Pole installation Mainstreet Tokoroa Community security camera replacement 2021 & Putāruru The major projects planned for Putāruru over the next ten years are shown below in two tables - the first, with an associated map showing where the projects are, details the Community and Councillor aspirations while the second table details Council's more operational and replacement capital expenditure. Community and Councillor aspirations Project Year/s Cost 1 Bent St skatepark ,880 2 Glenshea Park netball court artificial surfacing ,680 3 Putāruru Water park design and refurbishment ,000 4 Putāruru Pool upgrade ,000 5 Putāruru water - Te Waihou screen ,000 6 Putāruru drinking water disinfection ,000 Page 81 of 206

82 Concept Plans Page 82 of 206

83 Concept Plans Operational and Replacement Capital Activity Project Year Cost $000 Water - Putāruru Minor improvements Water - Putāruru Water plant and equipment replacement Water - Putāruru Reticulation replacements Sewerage - Putāruru Wastewater plant and equipment replacement Stormwater - Putāruru Minor new works projects Reserves Bent St skate park Pokaiwhenua stream Walkway development Putāruru CBD CCTV camera replacement 2022 & Tīrau The major projects planned for Tīrau over the next ten years are shown below in two tables - the first, with an associated map showing where the projects are, details the Community and Councillor aspirations while the second table details Council's more operational and replacement capital expenditure. Community and Councillor aspirations Project Year/s Cost $000 1 Tīrau Domain upgrade Tīrau walkway, bridge and rail crossing Tīrau Pool upgrade Page 83 of 206

84 Concept Plans Page 84 of 206

85 Concept Plans Operational and Replacement Capital Activity Project Year Cost $000 Water - Tīrau Minor improvements Water - Tīrau Water plant and equipment replacement Water - Tīrau Reticulation replacements Sewerage - Tīrau Wastewater plant and equipment replacement Sewerage - Tīrau Tīrau WWTP membranes Arapuni The major capital projects planned for Arapuni over the next ten years are shown on the next page. Community and Councillor aspirations Project Year/s Cost $000 1 Arapuni bore replacement Page 85 of 206

86 Concept Plans Operational and Replacement Capital Activity Project Year Cost $000 Water - Arapuni Arapuni reticulation renewal Page 86 of 206

87 Transport and Roading 5. TRANSPORT AND ROADING 5.1. What is transport and roading? Council needs to provide strategic corridors and network connectivity that supports economic and social productivity. As a rural district it is also important to review options regarding appropriate transport choices that allows users to travel efficiently to their desired destinations. Council manage: Maintenance of local roads (state highways are managed by the New Zealand Transport Agency) Road safety education Footpaths and mobility crossings Road and cycleway resealing Pavement rehabilitation (renewing the base of a road) Seal extensions (sealing gravel roads) Road signs and street lights Drainage culverts and bridge maintenance Safety improvements to the network (such as road realignments and improvements to intersections to improve visibility 5.2. Why do we do transport and roading? An efficient and safe transport and roading network play an important role in the daily lives of our residents. It allows people to travel to work, school or play by car, bicycle, foot or mobility scooter. It also allows for the efficient, reliable and safe transportation of goods, which is important for our businesses. Council must demonstrate responsible management and operation of roading assets and ensure our network is compliant with regulatory requirements. Transport and Roading contributes primarily to the following Council outcomes and strategies: Council Outcome Growth Resilience Relationships Council Strategy Economic growth: Roading and transport needs to support economic growth and productivity through provision of better access to markets, employment and business areas. Population growth: Through provision of better access to social, health and educational opportunities, particularly for people with limited access to a private vehicle. Network resilience: Improved resilience at critical points. Network resilience: The availability and restoration of each road when there is a weather or emergency event, whether there is an alternative route available and road user information provided. Network sustainability: Our infrastructure is financially and operationally sustainable and contributes to our district, it is effective for household and business users. Customer centricity: Provide ease of access to reach key destinations and the transport networks available to them, including land use access and network connectivity. Provide a safe and reliable transport system. Page 87 of 206

88 Transport and Roading The LTP provides extensive information on the strategic direction for Council s transportation network. The overarching strategy is to provide a network that enhances economic growth, social and environmental well-being, while promoting safety, resilience and flexibility. The strategic context provides a framework for the implementation of the LTP Network Overview Land Transport is the largest single activity of Council. Council manage around 427.6km of rural road (of which 30.2km is maintained by forestry organisations) and 112.2km of urban roading. The roading activity includes 2,158 street lights, 45 bridges and large culverts, 170.6km footpaths, 3,030 signs, 38 stock underpasses. The network is managed internally by Council's transportation team. The subsidy funding for NZTA funded transport activities has increased to 62% for the onward for the next three years. The other change in the funding system is that NZTA will now fund footpaths and cycle ways 62% from onward. Page 88 of 206

89 Transport and Roading 5.4. What is planned for transport and roading Over the next 10 years, Council has the following major projects (over $100,000) outside the business as usual planned for transport and roading: Activity Major Project Year/s delivered Cost $000 Type of work Tokoroa CBD Upgrade Tokoroa CBD / Leith Place Upgrade ,572 Level of Service Sealed Roading maintenance Sealed road resurfacing Formation Widening - Rehabilitation Asphalt Surfacing/ Resurfacing in CBD ,623 Renewal ,402 Renewal Sealed road resurfacing Maintenance Chip Seal ,507 Renewal Roading Drainage renewals Drainage Renewals (Culverts and Kerbs) ,845 Renewal Pavement rehabilitation Pavement Rehabilitation ,191 Renewal Bridges Traffic services renewals Traffic services renewals Associated Improvements Roading - Bridge Strengthening Traffic services renewals: Signs Traffic services renewals: Streetlighting Associated Improvements (with rehab works) ,044 Renewal ,066 Renewal ,315 Renewal ,140 Renewal Minor improvements Minor Improvements ,672 Renewal Non Subsidised Roading Christmas/ Feature Lighting Level of Service Non Subsidised Roading Footpath Renewals Renewal Non Subsidised Roading Kerb and Channel Renewals Renewal Non Subsidised Roading Non Subsidised Roading Non Subsidised Roading Reseal Projects Renewal Seal Extensions Level of Service Seal Widening ,082 Level of Service Page 89 of 206

90 Transport and Roading 5.5. How is roading and transport funded? Rates 69% Subsidies & Grants 28% User Charges 1% Reserves 2% 5.6. Significant negative effects The transport and roading group of activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect Effects on the environment including emissions, run-off, dust and noise Accidents may result in death or serious injury How it will be mitigated Ensure that Council applies for any resource consents that may be required. Manage contracts to ensure that any effect on the environment is minimised. Design stormwater infrastructure to ensure that effects of runoff are minimised. Council has a seal extension programme in place in order to reduce the length of unsealed roads in the district, which in turn reduces the dust nuisance experienced by some of our residents. Operates a road safety programme and work closely with partners (including the Police, New Zealand Transport Agency and ACC) to raise awareness of road safety issues. Makes improvements to the roading network to improve safety e.g. realigning dangerous intersections. Speed restrictions are imposed to help ensure that motorists travel at speeds that are appropriate for the road What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Road and cycleway resealing Level of service Council maintains its sealed road surface as part of its renewal targets set by the Asset Management Plan Pavement (road) rehabilitation Level of service That Council's roading network allows its users to travel efficiently to their desired destinations General maintenance Page 90 of 206

91 Transport and Roading Level of service That users of our roading network can expect their enquiries and service requests relating to the roading network to be responded to in a timely manner Road safety programme Level of service That Council continues to provide a safer roading network Footpaths Level of service That Council has a footpath network that allows its users to travel safely and easily to their desired destination How you can measure our performance The Following Key Performance Indicators (KPIs) relate to the Transport and Roading Group and are applicable for the 10 years of this LTP: Reseal: No more than 15% of the district's sealed transport network will exceed its useful life. Rehab: The smooth travel exposure shall be at least 70% of NZTA target for roughness. Road Safety: There are no fatalities or serious injury crashes on the local transport network that are directly contributable to road conditions. Capital Footpath Renewals: An annual audit of 10% of the footpath network will be undertaken. 90% of the footpath network should have a displacement of less than 15mm. Maintenance: That Council will respond to 90% of all Urgent service requests within 2 working days of notice. Maintenance: That Council will respond to 90% of all Non-Urgent service requests within 10 working days of notice. Page 91 of 206

92 5.9. The financials Draft Long Term Plan Transport and Roading Funding Impact Statement - Transport and roading For the year commencing 1 July Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 4,792 4,380 5,025 5,099 5,530 5,605 5,759 5,970 6,161 6,414 6,624 Other Revenue: Subsidies & grants for operating purposes 1,327 1,768 1,873 1,875 1,777 1,863 1,913 2,019 2,065 2,168 2,267 Fees, charges & targeted rates for w ater supply Internal charges & overheads recovered 1,172 1,040 1,072 1,084 1,106 1,117 1,146 1,170 1,201 1,232 1,264 Local authorities fuel tax, fines, infringement fees, and other receipts TOTAL OPERATING FUNDING (A) 7,529 7,426 8,213 8,307 8,667 8,846 9,085 9,433 9,707 10,101 10,451 APPLICATION OF OPERATING FUNDING Payments of staff & suppliers 3,174 3,468 3,732 3,864 3,944 4,110 4,222 4,429 4,534 4,751 4,998 Finance Costs Internal charges & overheads applied 2,338 2,217 2,307 2,383 2,424 2,435 2,521 2,550 2,606 2,695 2,736 TOTAL APPLICATIONS OF OPERATING FUNDING (B) 5,644 5,865 6,243 6,438 6,549 6,712 6,896 7,120 7,268 7,560 7,836 SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) 1,885 1,561 1,970 1,869 2,118 2,134 2,189 2,313 2,439 2,541 2,615 SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure 1,725 2,257 2,299 2,440 2,403 2,581 2,690 2,813 2,916 3,048 3,188 Increase (decrease) in debt (246) 1,230 (388) (284) (294) (296) (297) (310) (323) (336) (277) TOTAL SOURCES OF CAPITAL FUNDING (C) 1,479 3,487 1,911 2,156 2,109 2,285 2,393 2,503 2,593 2,712 2,911 APPLICATION OF CAPITAL FUNDING Capital expenditure: - to improve the level of services to replace existing assets 3,236 4,903 3,502 3,820 4,628 3,968 4,122 4,340 4,545 4,756 5,015 Increase (decrease) in reserves 132 (85) 79 (102) (727) Increase (decrease) in investments (4) TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 3,364 5,048 3,881 4,025 4,227 4,419 4,582 4,816 5,032 5,253 5,526 SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (1,885) (1,561) (1,970) (1,869) (2,118) (2,134) (2,189) (2,313) (2,439) (2,541) (2,615) FUNDING BALANCE ((A-B)+(C-D)) Page 92 of 206

93 Water Supply 6. WATER SUPPLY 6.1. What is water supply Council provides potable (drinkable) water to homes and businesses in our urban areas (Tokoroa, Putāruru, Tīrau and Arapuni) and to the rural communities of Athol and Lichfield. The water is treated to ensure that it is safe for drinking Why do we do water supply? Safe drinking water is essential for the health of our residents. It is also important for many businesses. Generally it is more cost efficient for our rural residents to provide their own water supply, rather than for Council to provide it. A stable supply of water is essential in supporting our existing businesses and encouraging new businesses to our district. The water supply activity contributes to the following outcomes and strategies: Council Outcome Growth Resilience Relationships Council Strategy Service provision: Water supply is an essential contribution to economic growth and increased quality of life. Growth: An inevitable consequence of urban growth is an increased demand for water supply. Council will continue to assess the need for service extensions to areas of growth. Financial sustainability: Council will ensure adequate revenue is available to provide the required capacity or service level improvements in advance of development demand. Significant purchases will maintain a level that is viable for the current economic and population climate. Engagement: Council will maintain relationships with Iwi regarding water supply activities, such as Te Waihou What is planned for water supply? Over the next 10 years, Council has the following major projects (over $100,000) planned for water supply: Activity Major Project Year/s delivered Cost $000 Type of work Water - Tokoroa Capital Component of Maintenance Renewal Water - Tokoroa Water Plant & Equipment Replacement Renewal Water - Tokoroa Reticulation Replacements ,802 Renewal Water - Putāruru Minor Improvements Renewal Water - Putāruru Water Plant & Equipment Replacement Renewal Water - Putāruru Reticulation Replacements Renewal Water - Putāruru Putāruru drinking water disinfection Level of Service Water - Putāruru Putāruru Water - Te Waihou Screen Renewal Water - Tirau Minor Improvements Renewal Water Tīrau Water Plant & Equipment Replacement Renewal Page 93 of 206

94 Water Supply Activity Major Project Year/s delivered Cost $000 Type of work Water Tīrau Reticulation Replacements Renewal Water - Arapuni Arapuni Reticulation Renewal Renewal Water - Arapuni Arapuni Bore Replacement Renewal Water - District Health & Safety improvements Level of Service For more in-depth discussion on the topics above please refer to the following sections of the LTP Chapter 1: Section 2.4 Key Issues for the Long Term Plan and Section Major Infrastructure Projects Significant negative effects The water supply activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect If treatment systems fail then it may cause illness The taking of water may result in adverse effects on aquifers and/or surface water Some users may waste water How it will be mitigated Water is regularly tested for microorganisms, chemical imbalances or contamination to ensure that it meets Council and the New Zealand Drinking Water Standards. Council is required to obtain resource consents from the Waikato Regional Council for the water that it takes for water supplies. The Waikato Regional Council imposes conditions on the resource consents which include: limits on the amount of water that Council can take and the requirement for Council to undertake regular monitoring. High users of water (such as some industrial users) are charged for the volume of water that they take which is an incentive to reduce unnecessary use. When water use across the district's water supply networks is higher than normal, Council introduces water restrictions. Negative environmental impact from water extraction activities Council will analyse potential environmental impacts and consider options that are economically viable and environmentally prudent Differences in worldviews can challenge relationships with Iwi Relationships with Iwi are a key priority for Council. Councillors and staff will endeavour to maintain successful coproduction and co-governance partnerships with Iwi How is water supply funded? Rates 69% Subsidies & Grants 0% User Charges 7% Reserves 24% Page 94 of 206

95 Water Supply 6.6. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Drinking water treatment and distribution Level of service Council operates and maintains four urban and two rural water supplies. This includes 10 reservoirs, 10 bore water pumps and 228 km of pipes. We ensure that residents who are serviced by Council's water supply have high-quality water available at all times for drinking and to meet other household and business needs. Council is responsible for looking after the network and making sure all statutory requirements and environmental standards are met How you can measure our performance The Following Key Performance Indicators (KPIs) relate to the Water supply team and are applicable for the 10 years of this LTP: Water supply: the average amount of water consumed per resident per day is 500 litres. Water supply: drinking water treatment and distribution At least 97% of tests for E.coli carried out on treated reticulated water will indicate a level of E.coli of less than one per 100ml. Water supply: drinking water treatment and distribution Council will treat unsecure water sources as prescribed in Part 5 of the Drinking Water Standards to treat protozoa and/or comply with section 69 V of the Health Amendment Act Water supply: drinking water treatment and distribution Council will ensure the water loss from Council's reticulation network will be no more than 20%. Water supply: drinking water treatment and distribution The median response times for call-outs in response to a fault or interruption to Council's water reticulation system does not exceed one hour of notice. Water supply: drinking water treatment and distribution Total complaints received by Council regarding water supply for the following issues: clarity, taste, odour, pressure or flow, continuity of supply and response times to any of the above issues with its water supply system, does not exceed one complaint per 1,000 connections. From Year 2 onwards, we will introduce a resolution KPI: this will capture when service requests were completed and closed. Water supply: Water (Network reliability) 90% of disruptions to Council s urban water supply network will be remedied within twelve hours of notice. Page 95 of 206

96 Water Supply 6.8. The financials Page 96 of 206

97 Wastewater 7. WASTEWATER 7.1. What is wastewater Council operates wastewater networks in Tokoroa, Putāruru, Tīrau and Arapuni Provide facilities for businesses who generate a high amount of waste (known as trade waste). Council collects wastewater from homes and businesses via sewerage pipes and sends it to the treatment plants, either by gravity or pumping With the implementation of the Healthy Rivers Plan, Regional and District Councils in the Waikato are required to review and mitigate nutrients runoff from wastewater There are expectations of higher quality wastewater treatment and discharge systems required in alignment with the Health Rivers Plan changes In accord with the Healthy Rivers Plan a new Wastewater Treatment Plant will be established in this Long Term Plan The new Wastewater Treatment Plant is anticipated to be the greatest cost Council have endured for twenty or so years, resulting in a significant rate increase this Long Term Plan 7.2. Why do we do wastewater? Because of the high volume of wastewater that is generated in urban areas it can be unsafe to human health and the environment if effluent is disposed of via septic tank systems. Council operates a wastewater network, which means that households, businesses and community facilities such as schools can dispose of their wastewater in a manner that is safe for both human health and the environment. Wastewater contributes primarily to the following Council outcomes and strategies. Council Outcomes Growth Resilience Relationships Council Strategy Infrastructure: It is imperative that our wastewater plant is fit for purpose in terms of a growing population and the associated demand Environmental resilience: In alignment with the proposed Healthy Rivers Plan changes, Council is obliged to undertake wastewater management that has reduced impact on waterways such as the Waikato River Engagement: Council and Raukawa have undergone a significant engagement process regarding options for the new wastewater plant What is planned for wastewater? Over the next 10 years, Council has the following major projects (over $100,000) planned for water supply: Activity Major Project Year/s delivered Cost $000 Type of work Sewerage - Tokoroa Ultraviolet Lamps Renewal Sewerage - Tokoroa Sewerage - Putāruru Sewerage - Tīrau Wastewater plant and equipment replacement Wastewater plant and equipment replacement wastewater plant and equipment replacement ,236 Renewal Renewal Renewal Sewerage - Tīrau Tīrau WWTP membranes Renewal Page 97 of 206

98 Activity Major Project Year/s delivered Sewerage - District Sewerage - District Wide Health and Safety improvements wastewater upgrades for Resource Consent and Healthy Rivers Draft Long Term Plan Cost $000 Type of work Wastewater Level of Service ,282 Level of Service For more in-depth discussion on the topics above please refer to the following sections of the LTP Chapter 1: Section 2.4 Key Issues for the Long Term Plan and Section Major Infrastructure Projects Significant negative effects The water supply activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect Blockages, leakages and overflows cause harm to our environment. How it will be mitigated Council is required to undertake monitoring to ensure that harm is not being caused to our environment. Waikato Regional Council audits the monitoring that we do. The wastewater systems are routinely inspected and Council conducts ongoing maintenance to ensure that the network is of an appropriate standard. The significant financial costs (rate Currently wastewater is funded by an equal rates charge to all increase) associated with developing a users of the wastewater system. new wastewater treatment plant 7.5. How is wastewater funded? Rates 88% Subsidies & Grants 0% User Charges 0% Reserves 12% 7.6. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Wastewater collection and treatment Levels of Service Council maintains about 167km of sewer pipes and 18 pumping stations that make up the district s wastewater network. Each year the wastewater network carries about 55,430 cubic Page 98 of 206

99 Wastewater metres of sewage effluent to the Council s treatment plants, ensuring that sewage is treated and disposed of to comply with environmental standards. Residents can expect timely responses to interruptions to the wastewater reticulation system. Residents can expect a reticulated wastewater treatment system that is reliable and does not fail unnecessarily. Council will operate its wastewater treatment systems in an environmentally responsible manner and ensure that it complies with the conditions of the resource consents it holds with the Waikato Regional Council How you can measure our performance The Following Key Performance Indicators (KPIs) relate to the Wastewater team and are applicable for the 10 years of this LTP: The total number of dry weather overflows from the sewerage system shall not exceed three per 1,000 sewerage connections from the sewerage system. A dry weather overflow is when a blockage causes wastewater in the reticulated system to spill to the environment. There will be no "Formal Enforcement Actions" from the consenting authority (Waikato Regional Council) in regard to Council's compliance with resource consent conditions relating to wastewater per financial year. The median response times for call-outs in response to a fault or interruption to Council's wastewater reticulation system does not exceed one hour of notice. The median time to clear blockages or faults to Council's wastewater reticulation network will not exceed 24 hours from notification. The total number of complaints received by Council about wastewater issues (including sewage odour, sewerage system faults, sewerage system blockages and response times to issues with its sewerage system) does not exceed one complaint per 1,000 connections. Page 99 of 206

100 Wastewater 7.8. The financials Page 100 of 206

101 Stormwater 8. STORMWATER 8.1. What is stormwater Council manages the stormwater networks that collect run-off from our roads and land in our urban areas. We also make sure that when development occurs, the development has sufficient drainage to adequately dispose of run-off Why do we do stormwater? Without an appropriate stormwater network we would have problems with our roads, homes and businesses being flooded. It would also result in damage to our roading network. The stormwater activity contributes to the following outcomes and strategies: Council Outcome Growth Council Strategy Stormwater infrastructure will be established for the growing developments in the district. Resilience Relationships The effects of climate change are progressive and apparent through increased rain fall leading to greater maintenance and service requests. Council recognise the need for improved stormwater ways and plan to undertake a number of stormwater way enhancements this LTP period. Engagement: Council will maintain relationships with Iwi regarding Stormwater activities, such as Wai Ora What is planned for stormwater? Over the next 10 years, Council has the following major projects (over $100,000) planned for stormwater: Activity Major Project Year/s delivered Stormwater - Tokoroa Minor new works projects Cost $000 Type of work Renewal Stormwater - Tokoroa SH1 Stormwater Renewal Stormwater - Putaruru Minor new works projects Renewal 8.4. Significant negative effects The stormwater activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect The stormwater network is not maintained properly which results in system failure. How it will be mitigated Council is required to obtain resource consents for its stormwater networks from the Waikato Regional Council. The resource consents have conditions imposed. Regular maintenance and inspections are undertaken. Page 101 of 206

102 Stormwater 8.5. How is stormwater funded? Rates 73% Subsidies & Grants 0% User Charges 0% Reserves 27% 8.6. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Stormwater Levels of service Council effectively manages stormwater and maintains116 km of pipes that make up the stormwater networks so that there are no flooding events. The network complies with all statutory requirements and that public health and safety risks are minimised. This work includes maintaining the network and monitoring stormwater for contaminants to ensure harmful contaminants do not enter waterways. Residents who experience flooding can expect to have the flooding issues investigated by Council in a timely manner. The stormwater network is reliable How you can measure our performance The Following Key Performance Indicators (KPIs) relate to the Stormwater team and are applicable for the 10 years of this LTP: Council will have no more than one per 1,000 habitable dwellings flooded during a storm event*. Stormwater: There will be no "Formal Enforcement Actions" from the consenting authority (Waikato Regional Council) in regard to Council's compliance with resource consent conditions relating to stormwater. Stormwater: The median response times for call-outs in response to a fault or interruption to Council's stormwater reticulation system does not exceed four hours of notice during a flood event. A flood event is defined as an occasion where buildings that are compliant with the Building Code and are serviced by Council's reticulated stormwater system experience flooding. Stormwater: The total number of complaints received does not exceed one complaint per 1,000 connections to Council's stormwater system. The total number of rateable properties within the stormwater area is 7686 which allows for a maximum of seven properties to be flooded before the KPI is exceeded. (KPI stormwater connections will be amended per year to account for changes in property numbers in the district) *A storm event causes flooding to compliant rateable habitable dwellings due to exceeding the design capacity of the stormwater system. Page 102 of 206

103 Stormwater 8.8. The financials Page 103 of 206

104 Solid Waste and Recycling 9. SOLID WASTE AND RECYCLING 9.1. What is solid waste and recycling? Council makes sure that our waste and recycling is disposed of responsibly. We operate the Tokoroa Landfill and the transfer station in Putāruru. We undertake household refuse and recycling collections in our urban areas and we have recycling stations in our towns as well as at Waotu. We provide rubbish bins in public places, pick up litter that is dropped in our town centres and issue litter infringements to those who dump rubbish in inappropriate places Why do we do solid waste? If waste is disposed of irresponsibly, it can be very harmful to our health and to our environment. Disposing of rubbish responsibly helps to make our district look tidy. The solid waste and recycling activity contributes to the following outcomes: Council Outcome Growth Resilience Relationships Council Strategy Council will plan for increasing levels of solid waste and impacts from growth in the district. Engagement: Council will maintain relationships with Iwi regarding Stormwater activities. Engagement: Council will maintain relationships with various cultural regarding solid waste activities What is planned for solid waste? Over the next 10 years, Council has the following major projects (over $100,000) planned for solid waste: Major Project Solid Waste disposable - landfill future and transfer station Landfill capital programme Year/s delivered Cost $000 Funding source ,805 Renewal Renewal Landfill Aftercare Renewal For more in-depth discussion on the topics above please refer to the following sections of the LTP Chapter 1: Section 2.4 Key Issues for the Long Term Plan and Section Major Infrastructure Projects. Page 104 of 206

105 Solid Waste and Recycling 9.4. Significant negative effects The solid waste and recycling activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect How it will be mitigated Inappropriate disposal of waste results in adverse effects on the environment. Unanticipated growth rates and/or demolition leading to increased rubbish disposal and greater dumping into the landfill How is solid waste and recycling funded? Landfill users are encouraged to separate chemicals, batteries and used oil from waste so it can be treated appropriately. The landfill is lined to collect leachate which is then pumped into the Tokoroa wastewater system. Discharges from the Tokoroa Landfill, Putāruru Transfer Station and the former Tīrau Landfill are monitored and the results are reported to the Waikato Regional Council. A reduction of total waste is encouraged through realistic charges and the promotion of recycling. Green waste is diverted from the landfill and is mulched so that it can be reused. Council will persistently monitor for acceptable levels of solid waste disposed into the landfill. Council's service team will enable efficient planning for consent processes and options for growth and new development. Rates 36% Subsidies & Grants 6% User Charges 51% Reserves 7% 9.6. What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Landfills Level of service Council has only one operational landfill site, located just outside Tokoroa which services the district. The closed landfills in Putaruru and Tirau are subject to aftercare. A transfer station with greenwaste mulching is located in Putaruru serving the northern part of the district. There is also a recycling facility in Tokoroa which was constructed in order to encourage the volume of recycling in the district to increase. All sites are managed in accordance with Council's Solid Waste Site Management Plans. The Tokoroa landfill is planned to close by 2022 when it is full. At that stage Council will either build a new landfill cell, partner with other territorial authorities to build a regional facility or transport to a commercial landfill out of the district. It is feasible that the current recycling facility in Tokoroa will be upgraded and used as a transfer station. Page 105 of 206

106 Solid Waste and Recycling Household refuse and recycling collection Level of service Council provides a weekly kerbside refuse and fortnightly kerbside recyclable collection service for defined areas (mostly urban) in Arapuni, Putaruru, Tirau and Tokoroa How you can measure our performance The Following Key Performance Indicators (KPIs) relate to Solid Waste and are applicable for the 10 years of this LTP: There will be no 'Formal Enforcement Actions' from the consenting authority in regard to Council's compliance with resource consent conditions. The amount of waste that is recycled must not be less than 10% of the residual waste* sent to landfill. 90% of enquiries and service requests relating to refuse collection are responded to within 2 working days of notice. 90% of enquiries and service requests relating to recycling collection are responded to within 2 working days of notice. From Year 2 onwards, we will introduce a resolution KPI: this will capture when service requests were completed and closed. 100% of enquiries and service requests relating to refuse collection are resolved within 3 working days of notice. 100% of enquiries and service requests relating to recycling collection are resolved within 3 working days of notice. *Residual Waste is the gross tonnages over the weighbridge less cover material sewage sludge greenwaste and metal/timber factions. Page 106 of 206

107 Solid Waste and Recycling 9.8. The financials Page 107 of 206

108 Parks and Reserves 10. PARKS AND RESERVES What is parks and reserves? Council manages and maintains a number of sportsgrounds, parks and reserves across the district, both rurally and in our towns. Council are responsible for maintaining sportsgrounds that service the abundance of proud sportsmen and women in our district. Council plans to increase the maintenance levels of these community assets to allow for safe and manageable use by sports clubs and groups. Similarly, many parks and reserves will be enhanced to increase utilisation Why do we do parks and reserves? So that our residents have access to parks, reserves and sportsgrounds for recreational and sporting activities. It is important that these assets are maintained appropriately to prevent disrepair costs. The parks and reserves activity contributes to the following outcomes and strategies: Council Outcome Growth Resilience Relationships Council Strategy Sustainable growth: Council will assess the nature of the growth we undertake and evaluate the quality and risks of our decisions. Growth and preservation: Council will ensure that ongoing district landscaping is mindful of the historical characteristics of our district. Town development: It is critical that Council are able to influence the projected growth and development of our district, in order to ensure that it aligns with the needs of the communities we serve. Progressive development: Developments will allow for a level of flexibility that encourages the community to evolve and adapt during the districts peaks and ebbs. Community culture: Council understands the unique culture of our district and the importance of maintaining the strong community relationships and culture that exists. Relationship with environment: Council will enable mindful growth of the community fabric that considers the significant cultural diversity and character of our towns What is planned for parks and reserves Over the next 10 years, Council has the following major projects (over $100,000) planned for parks and reserves: Activity Major Project Year/s delivered Tokoroa Sportsgrounds and Courts Memorial Park Sportsground Cemeteries - Tokoroa Glenshea Park Sportsground Reserves Reserves Tokoroa Skatepark Basketball 1/2 court Memorial Sports Ground Field Lighting Renewal Cemeteries - expansion and facilities Glenshea Park netball court artificial surfacing Bent Street skate park, upgrade of skate park Putaruru Water park design and refurbishment Cost $000 Type of work Level of service Renewal Level of service Renewal Renewal Level of service Page 108 of 206

109 Activity Major Project Year/s delivered Draft Long Term Plan Cost $000 Parks and Reserves Type of work Reserves Bent St skate park Renewal Pokaiwhenua stream Walkway development New Reserves Tīrau walkway, bridge and rail crossing New Reserves Tīrau Domain upgrade New Reserves Reserves Reserves Reserves Reserves Reserves Reserves signage, furniture, bins and fences Renewal Reserves, walkways development Bridge and boardwalk refurbishment Te Waihou Jim Barnett Reserve, bridge replacements Renewal and upgrades of internal reserve roads Improve maintenance of towns Renewal Renewal Renewal Renewal Renewal Renewal For more in-depth discussion on the topics above please refer to the following sections of the LTP Chapter 1: Section 2.4 Key Issues for the Long Term Plan and Section Major Infrastructure Projects Significant negative effects The Parks and Property activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect Staff and the public may experience accidents when using the facilities. How it will be mitigated Regular inspections of playground equipment are conducted to make sure that they are safe. Respond quickly when members of the public advise that there is a safety concern at our facilities How is parks and reserves funded? Rates 87% Subsidies & Grants 0% User Charges 5% Reserves 8% What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans. Page 109 of 206

110 Cemeteries Level of service Draft Long Term Plan Parks and Reserves To ensure that all interment processes within the cemeteries located in Tokoroa, Putāruru and Tīrau are managed to legal requirements, all cemeteries are accessible and maintained to appropriate levels as the final resting place for our communities' loved ones Public toilets Level of service Council provides conventional public toilet facilities that are clean and well maintained throughout the district, in town centres, along the major travelling routes and in recreational locations Playgrounds and parks and reserves Level of service Council owns and/or manages approximately 285 hectares of parks, sportsgrounds, reserves, cemeteries and gardens. This service includes enhancing the appearance of urban streets with trees, flower beds and other landscaping. Council maintains the parks and reserves at a level that is acceptable to its users How you can measure our performance The Following Key Performance Indicators (KPIs) relate to the Parks and Reserves team and are applicable for the 10 years of this LTP: Parks - 90% of urgent* enquiries and service requests relating to parks and reserves are responded to within two working days of notice. Parks - 90% of non-urgent** enquiries and service requests relating to parks and reserves are responded to within ten working days of notice. Page 110 of 206

111 Parks and Reserves The financials Funding Impact Statement - Parks and Reserves For the year commencing 1 July Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF OPERATING FUNDING Rates Revenue: General Rates, Uniform Annual General Charges, rates penalties 2,624 3,479 3,645 3,826 3,978 4,115 4,308 4,580 4,685 4,701 4,876 Other Revenue: Fees, charges & targeted rates for w ater supply TOTAL OPERATING FUNDING (A) 2,796 3,657 3,827 4,012 4,169 4,310 4,507 4,785 4,895 4,917 5,097 APPLICATION OF OPERATING FUNDING Payments of staff & suppliers 1,688 2,310 2,367 2,447 2,466 2,556 2,631 2,710 2,870 2,859 2,960 Finance Costs Internal charges & overheads applied ,014 Other operating funding applications TOTAL APPLICATIONS OF OPERATING FUNDING (B) 2,450 3,255 3,369 3,500 3,561 3,646 3,770 3,874 4,049 4,061 4,174 SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure Development & financial contributions Increase (decrease) in debt (77) (178) (182) (185) (185) TOTAL SOURCES OF CAPITAL FUNDING (C) (53) (152) (155) (158) (157) APPLICATION OF CAPITAL FUNDING Capital expenditure: - to replace existing assets , , Increase (decrease) in reserves (499) (327) (345) (597) (1,217) (507) (689) (549) (348) (448) (365) Increase (decrease) in investments TOTAL APPLICATIONS OF CAPITAL FUNDING (D) , , SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (346) (402) (458) (512) (608) (664) (737) (911) (846) (856) (923) FUNDING BALANCE ((A-B)+(C-D)) Page 111 of 206

112 Property 11. PROPERTY What is property? The property portfolio involves maintaining Council owned buildings to an appropriate standard and also strategic management of land. Council owned buildings include our pensioner housing portfolio, libraries and halls. There are enhancements planned for many of our buildings, and others will be reviewed for demolition. There is also a number of Council owned land properties that will be utilised over the coming years to support outcomes aligned with Council s strategic direction. Planning for the use of strategic land will be undertaken during the LTP process and community engagement will be undertaken where appropriate Why do we do property? So that our properties are maintained appropriately to prevent unreasonable repair costs. We provide community housing so that there are affordable housing options for our older people. Ownership of strategic land is important especially now we are in a time of growth, it helps Council enable growth and development in key locations when and where required. The property activity contributes to the following outcomes and strategies: Council Outcome Growth Resilience Relationships Council Strategy Sustainable growth: Council will assess the nature of the growth we undertake and evaluate the quality and risks of our decisions. Growth and preservation: Council will ensure that ongoing district landscaping is mindful of the historical characteristics of our district. Town development: It is critical that Council is able to influence the projected growth and development of our district, in order to ensure that it aligns with the needs of the communities we serve. Progressive development: Developments will allow for a level of flexibility that encourages the community to evolve and adapt during the district s peaks and ebbs. Community culture: Council understands the unique culture of our district and the importance of maintaining the strong community relationships and culture that exists. Relationship with environment: Council will enable mindful growth of the community fabric that considers the significant cultural diversity and character of our towns What is planned for property? Over the next 10 years, Council has the following major projects (over $100,000) planned for property: Activity Major Project Year/s delivered Cost $000 Type of work Tokoroa Airport Reseal runway Renewal Pensioner Housing Property Management Interior redecoration including floor coverings CCTV replacement for Council properties Renewal Renewal Tokoroa Office Renovation Level of service Page 112 of 206

113 Activity Major Project Year/s delivered Tokoroa Office Tokoroa Office utilisation improvement Draft Long Term Plan Cost $000 Type of work 2019 and Renewal Property Property Administration Property Administration Full condition assessment of all Council owned buildings Council buildings - water tightness, compliance and HVAC Renewal Renewal For more in-depth discussion on the topics above please refer to the following sections of the LTP Chapter 1: Section 2.4 Key Issues for the Long Term Plan Significant negative effects The Property activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect Staff and the public may experience accidents when using the facilities. How it will be mitigated Regular inspections of buildings are conducted to make sure that they are safe. Respond quickly when members of the public advise that there is a safety concern at our facilities. Buildings are regularly inspected to ensure compliance with the Building Code How is property funded? Rates 60% Subsidies & Grants 0% User Charges 33% Reserves 7% What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Public toilets Level of service Council provides conventional public toilet facilities that are clean and well maintained throughout the district, in town centres, along the major travelling routes and in recreational locations. Page 113 of 206

114 Property Pensioner housing Level of service Council's pensioner flats located in Putaruru, Tirau and Tokoroa are maintained at an average to good standard, with rentals set to recover the cost of operation How you can measure our performance. The Following Key Performance Indicators (KPIs) relate to the Property team and are applicable for the 10 years of this LTP: Public toilets: Property - 90% of enquiries and service requests relating to public toilets are responded to within two working days of notice. Pensioner housing: Property - The occupancy of Council's pensioner housing units is at least 95% on an annual basis. From Year 2 onwards, we will introduce a new KPI: this will capture when service requests were completed and closed. Public toilets: Property - 90% of enquiries and service requests relating to public toilets are fully resolved within three working days of notice. Page 114 of 206

115 Property The financials Funding Impact Statement - Property For the year commencing 1 July SOURCES OF OPERATING FUNDING Rates Revenue: Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's General Rates, Uniform Annual General Charges, rates penalties Targeted Rates Other Revenue: Fees, charges & targeted rates for w ater supply TOTAL OPERATING FUNDING (A) 1,098 1,342 1,391 1,340 1,369 1,370 1,407 1,429 1,456 1,489 1,511 APPLICATION OF OPERATING FUNDING Payments of staff & suppliers Finance Costs Internal charges & overheads applied Other operating funding applications TOTAL APPLICATIONS OF OPERATING FUNDING (B) 961 1,053 1,074 1,104 1,115 1,096 1,117 1,131 1,146 1,169 1,168 SURPLUS (DEFICIT) OF OPERATING FUNDING (A-B) SOURCES OF CAPITAL FUNDING Increase (decrease) in debt (106) (106) (113) (119) (125) (131) (138) (136) (144) (151) (157) TOTAL SOURCES OF CAPITAL FUNDING (C) (106) (106) (113) (119) (125) (131) (138) (136) (144) (151) (157) APPLICATION OF CAPITAL FUNDING Capital expenditure: - to replace existing assets 163 1, Increase (decrease) in reserves (223) (108) (76) (79) (66) (25) (21) (6) (26) (5) 1 Increase (decrease) in investments 91 (724) (26) (405) (38) TOTAL APPLICATIONS OF CAPITAL FUNDING (D) SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (137) (289) (317) (236) (254) (274) (290) (298) (310) (320) (343) FUNDING BALANCE ((A-B)+(C-D)) Page 115 of 206

116 Community Facilities 12. COMMUNITY FACILITIES What are community facilities Council manages a number of facilities on the behalf of our community. This includes: the outdoor pools in Putāruru and Tīrau, the South Waikato Indoor Pools in Tokoroa, libraries in Tokoroa and Putāruru and an outreach service in Tirau, the South Waikato Sport and Events Centre and the talking poles Why do we do community facilities? To provide our residents with access to facilities which contribute to their health, social and cultural well-being. Council regularly assess access and utility of facilities to ensure that they align with the needs of our community. There are changing needs in areas of library services, and in 2017 Council implemented Kotui software to improve service provision and accommodate today's technological requirements. Alongside this system there are growing requests for technical support and our staff do their best to facilitate our community in their technological activities. Pools offer the community the opportunity to participate in active recreation and develop necessary lifesaving skills in and around water. The South Waikato Sport and Events Centre opened in 2012 and complements the sporting hub created at the Tokoroa Memorial Sports Ground. It has provision for indoor sports leagues, gymnastics, social functions and meetings. Council has seen the value of the multi-use facility continue to grow. Bringing forth the history between Tokoroa and the Talking Poles is important for maintaining the unique cultural experiences of the township. Council plans to cast futuristic designs into the town's redevelopment in a clear vision of how Tokoroa has evolved and plans to move into the future. The community facilities activity contributes to the following outcomes and strategies: Council Outcome Growth Resilience Relationships Council Strategy Council understands that it is important for our district facilities to evolve to stay relevant to our community. In recognition that growth must align with community aspirations and values, Council will engage and involve residents at appropriate steps along the growth journey. A growing population may necessitate a review of facility space, where potential expansions or redesigning may be required. With increased district growth, it is important to manage the ongoing maintenance of our facilities as they depreciate in order to keep them up to standard and withstand the test of time. Council plans to upgrade a number of facility features this LTP period (see projects below). In the centre of the public eye, our facilities staff are at the face of Council services. With the changing demands of customer service, our facilities staff enable our service users to access the resource they need and desire in the most efficient and user-friendly way. Page 116 of 206

117 Community Facilities What is planned for community facilities Over the next 10 years, Council has the following major projects (over $100,000) planned for community facilities: Activity Major Project Year/s delivered Cost $000 Type of work Events Centre Plant Replacement Renewal Pools - Tokoroa Capital Programme Renewal Pools - Tokoroa Pool upgrades ,878 Renewal Pools - Putāruru Pool upgrades Renewal Pools - Tīrau Pool upgrades Renewal Libraries - Tokoroa Tokoroa Library Reroofing and water tightness Renewal Libraries - District Library Collection and information resources ,394 Renewal Libraries - Tokoroa Capital Programme Renewal For more in-depth discussion on the topics above please refer to the following sections of the LTP Chapter 1: Section 2.4 Key Issues for the Long Term Plan Significant negative effects The community facilities activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect How it will be mitigated Vandalism, litter and petty crime may result in the facilities looking untidy and cause people to feel unsafe The perceptions that derive from Council's levels of service, such as poor town maintenance and asset management. (Low levels of service are associated with low rate charges) Heightened service expectations. While our staff endeavour to support our community with their growing technical needs, increased service demands may prevent them from providing technical advice. Conflicting priorities: This could occur between residents, and/or between Council and residents How are community facilities funded? Graffiti and vandalism are removed and repaired as quickly as possible. The layout and design of the facilities are considered (especially aspects such as rubbish bins and lighting) to ensure that the potential for crime and littering are reduced. Council have planned to increase the levels of Council services including facilities maintenance and infrastructural management. (Increased levels of service associate with increased costs and will therefore induce an increase in rates for residents) Library staff will provide residents with learning and professional development options that help residents gain skills such as the use of Microsoft Office, s and printing. Library staff will also offer instruction sheets to residents to enable skill development. Council will analyse the suggestions put forth from the community and will consider and prioritise options based on the Council's strategic direction and outcomes. Rates 86% Subsidies & Grants 0% User Charges 10% Page 117 of 206

118 Community Facilities Reserves 4% What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Libraries Level of service That Council provides libraries which are civic spaces that provide users with access to lifelong learning, social interaction and the ability to access educational and cultural organisations and material Pools Level of service Council owns and operates the district's indoor heated pool complex (South Waikato Indoor Pools) in Tokoroa and, during the summer months, outdoor pools in Putāruru and Tīrau. These facilities provide a range of aquatic recreational opportunities that cater for the needs of a wide range of people - from young children and their parents, youth, swimming clubs and school groups to retired people and individuals wanting exercise South Waikato Sport and Events Centre Level of service Council owns and operates the Sport and Events Centre in Tokoroa. This facility provides indoor recreational opportunities for our residents and also caters for those holding meetings or functions How you can measure our performance. The Following Key Performance Indicators (KPIs) relate to the Community Facilities team and are applicable for the 10 years of this LTP: South Waikato Sport and Events Centre: South Waikato Sport and Events Centre users rate their overall satisfaction level at an average of 90% or above annually South Waikato Sport and Events Centre: Annual usage of the South Waikato Sport and Events Centre will equate to an average of at least twice the district's population. Swimming Pools: South Waikato pool facility users (Tokoroa, Putāruru, Tīrau) rate their overall satisfaction level at an average of at least 90% or above annually. Swimming Pools: Annual usage of the South Waikato pool facilities will equate to an average of at least four times the district's population. Swimming Pools: At least 90% of South Waikato pool water tests (Tokoroa, Putāruru and Tīrau) comply with the New Zealand Standard Pool Water Quality annually. Libraries: South Waikato Library services customers (Tokoroa, Putāruru and Tīrau) rate their overall satisfaction level at an average of 95% or above annually. Libraries: Customers who used the South Waikato library services (Tokoroa, Putāruru and Tīrau) rate their satisfaction level with library services at 95% or above. Page 118 of 206

119 Community Facilities Libraries: Ten or more community groups engage with the district libraries each month. Libraries: Customer engagement with online library services and library promotional activities on Council's social media site(s), receive a minimum of 1,000 visits/hits per month or 12,000 visits/hits annually. Libraries: Annual visits to the South Waikato library facilities will equate to an average of at least 6.5 times the district's population Page 119 of 206

120 Community Facilities The financials Page 120 of 206

121 13. ECONOMIC AND COMMUNITY DEVELOPMENT What is Economic and Community Development? Draft Long Term Plan Economic and Community Development Facilitate the economic development of the District Promote our District and communities Partner with the South Waikato Investment Fund Trust for the economic benefit of the District Carry out economic development planning and actions Provide community grants Support youth initiatives Organise community events to help foster community pride Undertake joint ventures with government agencies Support skills training and business development Advocate for (and with) South Waikato communities Why do we do economic and community development? Growth, resilience and relationships have been identified as core outcomes for the Council over the next ten years. The economic and community development activities of Council are key to the successful delivery of these outcomes in partnership with our communities. Economic development activities are important so that we can create employment opportunities, attract people to live in the district and move from a declining to a growing population. The development of a new district Economic Development Strategy is planned to occur in the 2019 year after the Southern Waikato Economic Action Plan (SWEAP) has been completed. The SWEAP is a plan that includes the Waitomo, Otorohanga and South Waikato Districts and has been initiated as part of the region wide Waikato Plan. Waikato Means Business and the Waikato Regional Council are leading the SWEAP in close partnership with the three Councils. We intend to work through the SWEAP process to develop a subregional economic development plan that then aligns to our local district focussed plan. The aim of this approach is to achieve some co-ordination from the Waikato plan through to the SWEAP and then to our local Economic Development Plan. The SWEAP is a key opportunity for the three districts as the plan will form the basis allowing the districts to apply for and the Government to then potentially channel significant funding into the three areas via its Regional Growth Programme. An ongoing component of our economic development work is maintaining a strong working relationship with the South Waikato Investment Fund Trust (SWIF). SWIF hold approximately $24m of funding sourced from funds previously held by Council. These funds are to be used for the benefit of the district to achieve economic development. We will continue to advocate for the installation of fast fibre to enable improved broadband across our communities. The Tokoroa upgrade has been completed, Putāruru is due in the 2018 and Tīrau is due in year one or two of the LTP. Community development is important because it helps build community sustainability by encouraging community pride and supporting our community groups. An emphasis on increased participation and engagement is aligned with our planned outcome to increase the value of our relationships with the community and in particular with Māori. As identified in the Council Outcomes we are in a period of growth for the first time in over twenty years. A key focus for this Long Term Plan is facilitating and supporting growth given that long term population decline has previously been identified as a significant risk to the district. It is essential that our future planning and new housing, community infrastructure and increases in population are Page 121 of 206

122 Economic and Community Development sustainable and in alignment with the environmental, social and cultural aspirations of existing residents. Significant community engagement will be undertaken to ensure that our residents codevelop the district's growth plan. The current District Plan change, which commenced in 2017, is planned to enable business and residential housing growth in Putāruru. Collaboration around the growth planning process started in Upon the completion of growth planning for the remainder of the district further District Plan changes for the remaining settlements are proposed. To drive economic growth and development an ongoing focus is on the implementation of a marketing strategy that helps to showcase the benefits and value of living in our district. During this Long Term Plan period Council will focus on enabling positive internal and external perceptions of our district, to support the growth period we are currently experiencing. In relation to community development we intend to continue our programme of community grants, partnering with and funding our community contract holders, funding clean heating upgrades to improve air quality and to continue as a partner in the district's trade training programme. Economic and community development contribute primarily to the following Council outcomes and strategies: Council Outcome Growth Resilience Relationships Council Strategy Population growth: Council planning for future growth in our settlements with appropriately zoned land will support new housing and business developments to occur when demand is present. This activity provides a method of addressing the previously identified risk to the district of long term population decline. It also responds to the recent increase in demand for the district as a place to live and work. Business and Job growth: The economic development programme will promote the district as a location to carry out business activities. The Trade Training programme will continue to develop skills relevant to the needs of the district. Sustainable growth: Council will consider the infrastructural requirements to support growth and the affordability implications. Concept Planning in collaboration with communities provides for a joint vision to be developed for our various communities. Skill development: Continued collaboration between Council, industry and training providers to develop people with relevant industry skills will increase community resilience through decreasing unemployment. Funding Community Organisations: The Community Grants and Community Contract programmes provide funding for community organisations that carry out positive community and economic development activities. In some cases these activities would not occur without Council support. Clean Air: Our continued involvement in the Warm Homes Clean Air programme contributes to improved air quality and living conditions for our residents. Community relationships: Collaborating with and facilitating connections between community organisations helps develop stronger community relationships and support the rich culture(s) within the communities. Relationship with environment: Growth and concept planning will consider the importance of environmental sustainability in the future development of communities. Page 122 of 206

123 13.3. What is planned for economic and community development? Draft Long Term Plan Economic and Community Development Over the next 10 years, Council has the following major projects (over $100,000) planned for economic and community development: (a number of these projects sit in other activities of Council eg airport future plan, district infrastructure plan in support of the growth plan and Development Contributions Policy) Activity Major Project Year/s delivered Cost $000 Funding source Talking Poles Pole installation Level of service Mainstreet Tokoroa Community Security Cameras 2021 & Renewal Putāruru CBD CCTV camera replacement 2022 & Renewal Economic Development Council's involvement in residential property development ,907 New Significant negative effects The economic and community development group of activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect How it will be mitigated Particular residents may feel deprived of certain opportunities when Council community and economic development policy is implemented in the interest of the general public. Council will ensure that there are clear policies, systems and processes in place that permit the wellbeing and consensus of the general public How is economic and community development funded? Rates 98% Subsidies & Grants 0% User Charges 1% Reserves 1% What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans. Level of service Council is involved in community and economic development to improve social and economic outcomes for the district. This includes mechanisms such as the Warm Homes Clean Air programme, facilitating community events, funding community contract partners, various economic development projects and supporting the Tokoroa Trade Training Centre. Page 123 of 206

124 Economic and Community Development How you can measure our performance? The Following Key Performance Indicators (KPIs) relate to the Economic and Community development team and are applicable for the 10 years of this LTP: Community Development: Facilitate ten or more events per year, with no less than two key stakeholders supporting or partnering with Council to hold each event. Community Development: Engage with, support or facilitate 10 interagency collaboration meetings in the social, education, health, youth and aged care areas annually. Community Development: Community Development: 90% of the key performance indicators within community contracts are satisfactorily met by individual contract holders annually. Customer Services: At least 80% of the customers who engaged with our frontline customer services team, indicated that they received courteous and respectful service. Page 124 of 206

125 Economic and Community Development The financials Page 125 of 206

126 Regulatory 14. REGULATORY What is regulatory? The regulatory group involves: planning guidance and compliance, building guidance and compliance, civil defence, animal control, sale and supply of alcohol licensing, auditing food premises, noise control, parking and bylaw enforcement and business case management (a programme for businesses wishing to locate in or expand in our district to help navigate them through regulatory processes). The peak in district and population growth has prompted an increased demand for building consent and subdivision requests that will require greater service delivery from Council. Council is aware of the growing demands and has plans to ensure high levels of customer service Why do we do regulatory? The focus of our regulatory group is to make sure that our residents and the environment are safe. The regulatory group of activities contributes to the following outcomes and strategies: Council Outcome Growth Council Strategy Customer centricity: Council will continue to implement tools to streamline and simplify our regulatory processes. Resilience Relationships Environmental stewardship: It is the Council's role to assure the community that we have lessened environmental impacts as much as possible. This is essential for the preservation of our natural environment and living standards of future generations. Customer centricity: Understanding the complex circumstances experienced by our customers is an essential element of managing our relationships. Relationships with Māori: Our Regulatory Group work alongside our Iwi partners in respect of their significant status as Tangata whenua (people of the land). These relationships enable us to fulfil our regulatory obligations under the Treaty of Waitangi and also co-produce projects that are applicable to Māori What is planned for regulatory - check PIFs Over the next 10 years, Council has the following major projects (over $100,000) planned for the regulatory group: Activity Major Project Year/s delivered Emergency Management Cost $000 Type of work Generator purchase New Page 126 of 206

127 Regulatory Significant negative effects Regulatory activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect How it will be mitigated There is a perception that red tape and bureaucracy are holding up new developments. Council operates the Business Case Management programme which helps businesses navigate through any regulatory processes in order to minimise delays. Council has obligations under various Acts to ensure developments are sustainable and no future liability on ratepayers occurs. Costs of regulatory processes When developing the Revenue and Financing Policy Council decides how may cause financial hardship much of each activity should be funded by general rates, targeted rates for households and businesses. and/or user fees. For each of the activities in the regulatory group of activities, Council has agreed to an appropriate split between general rates and user fees to ensure than neither ratepayers nor users are unfairly burdened. If you would like to read the Revenue and Financing Policy, please see Chapter How is regulatory funded? Rates 66% Subsidies & Grants 0% User Charges 34% Reserves 0% What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Building control Level of service To maintain Building Consent Authority accreditation and to ensure that building work that is completed is safe and complies with the requirements of the legislation Environmental health Level of service Provide health and licensing services and provide general protection to public health and safety Liquor licensing Level of service Provide liquor licensing services and provide general protection to public health and safety Animal control Level of service Ensure that animals, predominantly dogs, do not become a nuisance to the community. Page 127 of 206

128 Business case management Level of service Draft Long Term Plan Regulatory That potential business development projects that require involvement with one or more departments within Council's regulatory group are given the appropriate advice to make navigating through the regulatory processes seamless, while still ensuring that legislated requirements are met Resource management Level of service To promote the sustainable management of the district's natural and physical resources and process resource consents and provide environmental services in accordance with the Resource Management Act Civil defence Level of service Be prepared for natural hazards and emergencies How you can measure our performance The Following Key Performance Indicators (KPIs) relate to the Regulatory team and are applicable for the 10 years of this LTP: Animal Control: That the *door-to-door programme be completed by the end of November every calendar year. Animal Control: 100% of urgent requests are attended to within one hour on 24/7 basis. Resource management policy and monitoring, including environmental protection and monitoring: Not less than 80 hours per year is spent on monitoring land uses e.g. resource consents, certificates of compliance and existing situations. Planning: Planning input into Building Consent applications is completed within five working days of online registration. Building Control: Council will retain accreditation as a Building Consent Authority. Building Control: The building team will meet with builders and designers at least twice per year. Civil Defence: At least one South Waikato District Emergency Operations Centre or Managers exercise is held on an annual basis. Civil Defence: More than three training sessions/exercises are attended within the Waikato Civil Defence Emergency Management Group. Civil Defence: Council staff will conduct 20 or more visits to local organisations to raise awareness of civil defence issues. Environmental Health: 95% of premises registered pursuant to the Health Act 1956 will be inspected annually. Environmental Health: 90% of premises registered under the Food Act 2014 will be verified in accordance with legislative requirement. Please note the Food Act will be revoked in 2019 and a new measure will be determined at this time. Liquor Licencing: 100% of premises that hold either on, off or club licences will be inspected annually. Liquor Licencing: Three or more meetings per calendar year will be held with the South Waikato Liquor Accord group. Resource management policy and monitoring, including environmental protection and monitoring: At least 95% of non-notified consents are processed within statutory timelines (10, 20 or 40 working days). Page 128 of 206

129 Regulatory Building Control: At least 95% of building consents are processed within statutory timelines (20 working days). Business case management: 90% of all potential business development projects that require an integrated regulatory approach (i.e. Business Case Management) are contacted within two working days. * The door-to-door programme is defined as follows: -dog registration fees are due annually by the 31st of July, dog owners are given a further one month to pay the registration fee without incurring a penalty fee. Animal Compliance Officers are then required under the Dog Control Act to sight the dog to confirm it is with the owner at the same property before enforcing compliance either by seizing the dog for being unregistered or issuing a fine for failing to register. Page 129 of 206

130 Regulatory The financials Page 130 of 206

131 Governance and Corporate 15. GOVERNANCE AND CORPORATE What is governance and corporate? The governance and corporate group involves: managing Council's corporate business (which includes information systems, legal services, human resources, revenue, finance, communications and strategic planning) organising local government elections, supporting the elected members, supporting Council and Tīrau Community Board meetings and communicating with our communities Why do we do governance and corporate? The governance and corporate group of activities support all the other activities carried out by Council to ensure that they run smoothly by providing the necessary information systems and financial support. The governance and corporate group of activities contributes to the following outcomes and strategies: Council Outcome Growth Resilience Relationships Council Strategy Council staff and elected members strategically plan for sustainable growth. Council's plans will enable growth in the district that enhances the district's economic and social fabric, while ensuring that the special character is maintained. Concept planning is an essential factor for town growth and design. Community participation is key to efficient growth and alignment with community values, spirit and character. Council will endeavour to engage community in the journey of concept planning. Overall Council resilience will be enhanced through upgraded information systems and network security, having strong finance, human resource, health and safety, operating and communication systems. Co-management and co-governance initiatives will be sourced when appropriate in collaboration with other community stakeholders and groups What is planned for governance and corporate Over the next 10 years, Council has the following major projects (over $100,000) planned for governance and corporate: Activity Major Project Year/s delivered LIDR aerial land mapping Cost $000 Funding source Aerial land mapping Renewal Information Systems Core infrastructure hardware Renewal Information Systems Information Systems Information Systems Information Systems Desktops hardware Renewal Peripherals hardware Renewal Servers hardware Renewal Storage hardware Renewal Page 131 of 206

132 Activity Major Project Year/s delivered Information Systems Draft Long Term Plan Cost $000 Governance and Corporate Funding source UPS hardware Renewal Information Systems Information Systems Information Systems Enterprise wide software solution replacement Technology Innovation to support development Customer service experience improvement Level of service Level of service Level of service Corporate Finance Corporate Finance Furniture renewals Renewal Vehicle Replacement ,784 Renewal Significant negative effects The governance and corporate group of activities have the potential to impact negatively on our community and environment. These potential effects, and how Council mitigates them are described below. Potential negative effect Limited resources mean that Council is unable to achieve all of the objectives that the community would like to see achieved. Conflicting priorities regarding social and economic development. Relationships with Māori can be perceived as racial favouritism by other ethnic groups. Difficulty adapting to network system changes. How it will be mitigated Council carefully prioritises spending and budgets. The community is consulted on significant policy and expenditures to ensure that these changes are aligned with what the community is prepared to pay Council makes decisions based on the social good of our community as well as the economic sustainability of our district. This can sometimes be difficult and require lengthy decisionmaking processes by Council. Nonetheless Council staff will provide the required information in a timely fashion and Councillors will make decisions as per their sworn right, for the moral good of the residents in our district. Council will partner with Māori and increase knowledge and awareness of our staff by promoting the Treaty of Waitangi and the special status that Māori have here in Aotearoa/New Zealand as tangata whenua. Council will support residents to adopt new systems by increasing community literacy when changes are made to our network system. For example, user support is available at reception for the new Alpha1 building consent program How is government and corporate funded? Rates 84% Subsidies & Grants 0% User Charges 6% Reserves 10% Page 132 of 206

133 Governance and Corporate What you can expect from us This section describes what level of service you can expect Council to deliver and how we are going to measure our performance. Unfortunately no baseline data for our performance measures is included in this Long Term Plan because most of our performance measures have been updated and we do not hold any baseline data. We will report on our performance towards achieving these standards in upcoming Annual Reports and Annual Plans Elections Level of service That local government elections are conducted in an error free manner. How we will measure our performance Target: Council will conduct error-free local government elections (the election process is defined in the Local Electoral Act 2001) Finance Level of service That Council collects only enough rates to meet it operational and capital replacement requirements. How we will measure our performance Target: to ensure that Council only collects enough rates to meet its funding requirements, the operating level of Council's average annual general fund will not be more than $500,000 in surplus or less than $500,000 in deficit Democratic support Level of service The democratic process ensures ultimate oversight of the affairs of Council. It must ensure that procedures meet all statutory requirements and provide opportunities for participation by residents, stakeholders and community groups within the district. How we will measure our performance Target: that Council complies with all sections of the Local Government Act 2002 governing the functions of elected officials and consultation with our community on documents (including strategies, policies and bylaws) Communications Levels of service That parties requesting information from Council can expect to receive the information in a timely manner. How we will measure our performance Target: all official information requests are responded to within the statutory timeframe (20 or 40 working days). Target: That 90% of media requests are responded to within five working days. Page 133 of 206

134 Governance and Corporate Rates Level of service That the amount of rates arrears owed to Council does not unfairly burden other ratepayers. How we will measure our performance Target: the total amount of rate arrears is less than 10% of the current year's total rates paid to Council Information Services Level of service A wide variety of Council's services are now provided by Information Services eg online. Both ratepayers and staff can expect to access the information that they need easily, when they need it. How we will measure our performance Target: Council's information systems are available at least 99% of the time. System availability is defined as reliable access during business hours to supported applications. Availability is measured from offices over 24 hours, 365 days of the year, excluding planned and agreed maintenance downtime Strategic Policy Level of service That the public can expect Annual Plans and Long Term Plans to meet statutory requirements so that they can access information about the Council business in a timely manner. How we will measure our performance Target: Annual Plans and Long Term Plans will be adopted in compliance with the requirements and deadlines of the Local Government Act Governance Level of service That the public can be satisfied with the level of participation in decision making. How we will measure our performance Target: The quarterly residents survey indicates a satisfaction level of over 70% for level of participaton in decision making How you can measure our performance The Following Key Performance Indicators (KPIs) relate to the Governance and Corporate team and are applicable for the 10 years of this LTP: Communications: That 90% of media queries are responded to within 2 working days Communications: That 90% of media queries are resolved within 5 working days Page 134 of 206

135 Governance and Corporate Communications: That at least 60% of media statements submitted, feature in local media within 28 days of release Communications: The level of community satisfaction with overall communication from Council is at least 75% satisfied Communications: All official information requests are responded to within the statutory timeframe (20 or 40 working days) Governance: The level of community satisfaction with participation in decision making is at least 70%. Revenue/Rates: The total amount of rate arrears is less than 7.5% of the current year's rates charged by Council. Strategic Planning and Projects: Annual Plans and Long Term Plans will be adopted in compliance with the requirements and deadlines of the Local Government Act Finance: To ensure Council only collects enough rates to meet funding requirements, the total amount of general and targeted rates revenue budgeted will not be more than $500,000 more or $500,000 less than the rateable expenditure on those general and targeted activities for that year. Elections: Council will conduct error-free local government elections (the election process is defined in the Local Electoral Act 2001). Democracy: Council complies with all sections of the Local Government Act 2002 governing the functions of elected officials and consultation with our community on documents (including strategies, policies and bylaws). Information Services: Council's information systems are available at least 99% of the time. System availability is defined as reliable access during business hours for supported applications. Availability is measured from offices over 24 hours 365 days of the year, excluding planned and agreed maintenance downtime Page 135 of 206

136 Governance and Corporate The financials Page 136 of 206

137 Revenue and Financing Policy 16. REVENUE AND FINANCING POLICY Revenue and Financing Policy Responsibility Deputy Chief Executive First adopted 10 July 2003 (265/03) Historic revision dates 31 January 2006 (026/06 028/06), 10 July 2006 (347/06); 2009 (137/09); 28 June 2012 (236/12), 18 June 2015 (15/165), 16 June 2016 (16/144), 1 Feb 2017, 29 March 2018 (18/80) Next review date 2021 Review frequency Approval authority Consultation required Three yearly, at the time of preparation of LTP, or more frequently if required Council Special Consultative Procedure Record number Docset ID Associated documents The Long Term Plan, Annual Plan and financial policies 1. Policy Objectives This policy explains how Council will fund operating and capital expenditure in order to meet the current and future needs of the community. 2. Principles The following principles guide the decisions that Council has made in relation to appropriate funding sources 1. Where there is a private benefit to a service, options such as targeted rates and user charges will be preferred methods of funding, providing that it is efficient to collect revenue. 2. Each generation of ratepayers should pay for the services they receive. Where appropriate, borrowing can assist to achieve this outcome. 3. Rates systems should be equitable, simple and easily understood. 4. Rates are not a charge for the use of a service. 3. Policy Statement 3.1 Rating Section Objectives The objectives are: To ensure that the adopted rating system spreads the cost of rates as fairly and equitably as practical. Provides sufficient revenue to cover operating and capital expenditure not covered by other sources of revenue. To ensure that rating policy complies with the relevant legislation. 3.2 Relationship to Revenue and Financing Policy In developing the Revenue and Financing Policy, Council made an assessment of the public good and private benefit generated by each service provided. Arising from this assessment, Council identified the portion of cost for each service to be funded from rates revenue. Page 137 of 206

138 3.3 Considerations Draft Long Term Plan Revenue and Financing Policy In selecting a rate for each service funded wholly or partially by rates revenue, the following considerations will be taken into account: Who receives the primary benefit/s of the activity or service being delivered? What is the extent of wider public benefit compared to benefit/s being received by an individual, household or business? 3.4 Rating System The legislation provides for different ways in which to levy a general rate. The options available are: The Annual Value System - requires valuations based on the rental value of property to be updated annually. The Land Value System - the cost of rates is based on the value of land without taking into account the value of any improvements. The Capital Value System - the total value placed on each property (land and improvements) should approximate a market value. In Council s view the Capital Value System provides the most equitable outcome for ratepayers because it considers the total value of the property. 3.5 Summary of Rating System Anomalies will always be present, whether the choice is the Land or the Capital Value System. However, in Council's view the Capital Value System (the system in current use) suits a mixed urban/rural district with a significant range of land values better than the land value system. Ratepayers understand it easily. The Local Government (Rating) Act 2002 provides for different ways in which to set rates on property. However the Act does not direct Council to favour one method over another. Council has determined that: There will be one rating system for all properties within the district; and Capital value rating will be used as the basis for rating. 3.6 Uniform Annual General Charge / Additional Unit Rate Section 21 of the Local Government (Rating) Act 2002 restricts the revenue raised in any one year from the Uniform Annual General Charge (UAGC) and certain targeted rates on a uniform basis (excluding water and sewerage charges) to 30% of the total rates revenue of Council. The UAGC and/or the Additional Unit Rate (AUR) will be used as a rating mechanism across the full range of Council activities for which it is determined that a generally based rate is appropriate. Council will levy the UAGC on each separate rating unit and an AUR on each separately used or inhabited part of a rating unit beyond the first. 3.7 Targeted Rates These can be levied as a rate in the dollar of capital value or land value of every separate rateable property within the district, or in only a part of the district (where the function, work or service will benefit only a part of the district). Council has used targeted rates for services where there is a high level of public good and/or where it is difficult to identify benefiting individuals within the district. Council will use targeted rates when it is appropriate to collect revenue from one or more groups of ratepayers who receive a specific localised benefit. The services to be funded by a targeted rate include: On a Capital Value Basis: Stormwater services Putāruru business promotion. On a Uniform Basis: Additional unit rate (as described above) Page 138 of 206

139 Revenue and Financing Policy Hall rates (within each hall rating area) Community support - Pride in Putāruru (PIP) Refuse collection Tīrau Community Board (Ward) Community support Tokoroa promotion Sewage disposal Water supply (including Athol) District recycling 3.8 Differential Rates Council is able to introduce differential rating using classifications relating to the following factors: Land use Zoning Property size Property location All such matters provided for in Schedule 2 of the Local Government (Rating) Act Council believes that it is able to operate a rating system that meet the requirements of the revenue and financing principles, without differential rating 3.9 Early Payment Council does not apply an early payment discount to ratepayers. Council believes that the early payment discount favours those ratepayers who could pay all their annual rates at once and unfairly disadvantaged ratepayers who were not in a financial position to do this Penalty Policy Council will charge penalties for unpaid rates in accordance with Sections 57 and 58 of the Local Government Rating Act Our penalty policy and the dates on which penalties are to be applied are provided in the Funding Impact Statement which is included in every Long Term Plan and Annual Plan. 4. Other Sources of Funding 4.1 Fees and Charges Fees and charges are charges imposed on some services offered by Council. 4.2 Financial Contributions Council will seek financial contributions under the provisions of the Resource Management Act. The Financial Contributions Policy is provided in the Long Term Plan 4.3 Subsidies and Grants Where available, subsidies and grants will be sought to the maximum level permitted, consistent with Council s ability to meet any local share requirement. 4.4 Loan Finance Loan finance is used for projects where there is a funding shortfall and potentially where there are intergenerational equity issues involved. Refer to the Liability Management Policy Page 139 of 206

140 4.5 Investment Income and Capital Draft Long Term Plan Revenue and Financing Policy Council may resolve, as part of its Annual Plan or Long Term Plan, to make distributions annually from investment income and/or capital to reduce the cost of rates and charges. Refer to the Investment Policy 4.6 Investment Income Reserves Income received from reserve investments is applied in accordance with the purpose of the reserve. 4.7 Council Created and Restricted Reserves These are savings retained for specific projects, purchase of capital items, or where legislation restricts the use of the funds to a defined purpose(s). 4.8 Miscellaneous Income Miscellaneous income received is used for the general purposes of Council that are not funded from special rates and charges. 4.9 Utilising Cash Surpluses Cash surpluses derived from targeted rates, fees and charges may, at Council s discretion, be used to offset the cost of future years expenditure. These are managed through targeted rate reserves Capital Expenditure Capital expenditure is funded from reserve funds set aside for this purpose, loan finance, investment income, and rates revenue. The specific source of funding for capital projects is determined within each year s adopted financial forecast. 5. Summary of Revenue and Financing Decisions as from 1 July 2018 In adopting the percentages in the table below, Council is happy with the budgeted revenue being within +/- 5% of the target. For some activities, Council adopted the budgeted revenue outside of these limits, and the reasons why have been included below the table. Activity General rating mechanisms (General Rate/UAGC/ Additional Unit Rate) % Targeted Rates % User Fees LTP Revenue assumptions within +/- 5% Animal Control Yes Building Consents and Inspections No Business and CBD Promotion Tokoroa and Putāruru 100 Yes Cemeteries Yes Community Advocacy, Grants and Support (including Visitor Centres) Community Governance (Tīrau Community Board) 100 Yes 100 Yes Community Halls 95 5 Yes Compliance 95 5 Yes District Governance 100 Yes Page 140 of 206

141 Activity General rating mechanisms (General Rate/UAGC/ Additional Unit Rate) % Draft Long Term Plan Targeted Rates % Revenue and Financing Policy User Fees LTP Revenue assumptions within +/- 5% District Promotion 100 Yes District Recreation 100 Yes Economic Development 100 Yes Emergency Management 100 Yes Health Yes Libraries 92 8 Yes Parks and Reserves (including Sportsgrounds) 95 5 Yes Pensioner Housing 100 Yes Property Management Yes Public Toilets 100 Yes Resource Management (consent processing) Yes Resource Management (policy and monitoring, including environmental protection and monitoring) Roading (general roading activities) 100 Yes 100 (after subsidies) Roading (CBD upgrade loan) 100 Yes South Waikato Performing Arts Centre (The Plaza), and Tīrau Hall 100 (after hireage income) South Waikato Sport and Events Centre Yes Stormwater 100 Yes Swimming Pools - Indoor (Tokoroa) Yes Swimming Pools - Seasonal (Putāruru and Tīrau) Yes Talking Poles 100 Yes Te Waihou Walkway* 100 Yes Tokoroa Airfield No Tokoroa Council of Social Services** No Waste - Landfills and Refuse Disposal No Waste Litter Collection 100 Yes Waste - Refuse Collection No Waste - Recycling 100 Yes Wastewater (Sewerage) 100 Yes Water Supply 100*** Yes Yes Yes UAGC = Uniform Annual General Charge. User charges are inclusive of general fees, administration fees, rentals, fines and license fees. Council by adopting the percentages in the table above is happy with a +/- 5% banding being applied. * Included in parks and reserves activity ** Included in community advocacy, grants and support activity *** Targeted rates includes water-by-meter charges as relevant Page 141 of 206

142 Revenue and Financing Policy Activities that are more than 5% outside the policy Activity GR target GR in year 1 of LTP Building Consents and Inspections Reason for adopting with a variance 50% 41% Currently this activity is contributing more back to General rate than intended. As this might be a cyclical effect due to the volume of consents received rather than the pricing, Council has decided to leave the target at 50%. Tokoroa Airfield 50% 73.2% The expenses for the Airfield have increased significantly in 18/19. There may be some opportunity to increase fees over time as other services/facilities are developed, but it is unlikely to cover the cost of the additional expenses. This general rate target is to be reviewed during the airport strategy review. Tokoroa Council of social Services Waste - Landfills and Refuse Disposal 85% 91% Currently the projected rental revenue is not sufficient to meet this target. Work to be done to increase revenue opportunities. 20% 5% Revenue has increased partly due to increased volumes, but also due to the fee increase. Target is to remain at 20% until the review is completed of both the Waste Minimisation Plan and the Solid Waste Disposal. Waste - Refuse Collection 50% 42% Revenue has increased due to the increased cost of bags. The target has been revised from 55% to 50%. Waste - Recycling 100% 93% The level of rental for the recycling centre has been increased to bring it in line with commercial returns. Page 142 of 206

143 Revenue and Financing Policy Animal Control Building Control Community outcomes A quality regulatory service Grow our economy A quality regulatory service Efficient Council operations. Distribution of benefits Capital expenditure - period of benefits The Owner The benefits are in the knowledge that if a dog is lost, once found; it can be identified and the owner can be notified. If the dog misbehaves it can be identified and dealt with accordingly and there is a register of the owners who have responsibilities in owning a dog. The whole community benefits through dog control and registration, local and national education and stock control, and, more especially, through public safety. The holder of the consent receives benefits by being assured that the building work has been completed in compliance with the appropriate building code. This ensures that the building is safe and built to the appropriate standard. Members of the general public receive benefits by being able to receive advice about the This activity is focused on the current community. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. This activity is about service delivery to current ratepayers and residents. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Action/inaction by others The level of responsibility of dog and stock owner s impacts on the cost of this activity and the level of complaints received for this activity. The actions of most individuals or groups have a minor impact on this activity. Costs and benefits of separating this activity This activity is distinct from any other Council activity. Council has appropriate systems in place to allocate costs to this activity. Identifying separate funding assists in the accountability and transparency of Council s expenditure on this activity. Funding conclusion The animal control service relates to dog ownership which is an individual s choice. For this reason Council considers that dog owners should, in addition to registration fees, contribute to the cost of both dog and stock public safety and nuisance avoidance. Offenders should, through a scale of fees, contribute towards the cost of investigations, impounding and prosecution. A combination of fees, charges and fines is the most efficient, effective and transparent way to fund the private benefit. The most efficient, effective and transparent method of funding the private benefit is a cost recovery basis using a range of fees and charges The public good element is to be funded from rates revenue. Page 143 of 206

144 Revenue and Financing Policy Business and CBD Promotion Tokoroa and Putāruru Cemeteries Community Advocacy, Grants and Support (including Visitor Centres) Community outcomes Grow our economy Improved external image Community pride. Well managed infrastructure Quality services and facilities Sustainable Council operations. Improved external image Quality services and facilities Community pride. Distribution of benefits Capital expenditure - period of benefits requirements of relevant legislation. The benefits from this service are both to the business people in the Putāruru and Tokoroa Central Business Districts, with the residents of the ward benefiting from economic development. There is no benefit to residents and businesses in the Tīrau Ward. There is little capital development work required for cemeteries. Funding is from current mechanisms. There are no significant intergenerational equity considerations. The beneficiaries of this activity are those who receive the grant and other support. There is a wider public benefit as the grants and support help support our community groups, contributing to a vibrant community. The benefit is for current communities, specifically the business organisations in the commercial areas of Putāruru and Tokoroa. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. The service primarily provides a private benefit for the family and friends of the deceased who are buried in the district. Records of interment have a clear relationship to the history of the community and are public information. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Action/inaction by others Actions by business organisations in the commercial area will impact on the cost of this activity. The number of plots required impacts on the level of service provided. The impact of others should be minimal. Costs and benefits of separating this activity This activity has a clear focus on growing the local economy. The nature of this activity indicates that it should be accounted for separately. There is an appropriate structure in place for the allocation of costs to this activity. The nature of this activity indicates that it should be accounted for separately. Council has a structure that can allocate costs to this activity. As this is a key leadership role for Council, it is appropriate that the results and associated costs are separately disclosed. Council has an appropriate structure in place to allocate costs to this activity. Funding conclusion Council noted that business promotion organisations assist Council with community advocacy, liaison and the promotion of the district. The most effective, efficient and transparent method to fund this service is from rates revenue. The most effective, efficient and transparent method for funding the private benefit (the recovery of cost of burial services) should continue to be user charges. The cost of maintaining cemetery grounds generates public benefit, this part of the service is to be funded from rates revenue. Council considered that the most effective, efficient and transparent method for funding this public good service was general rating mechanisms. Page 144 of 206

145 Revenue and Financing Policy Community Governance (Tīrau Community Board) Community Halls Community outcomes Cultural leadership. Quality services and facilities Community pride. Distribution of benefits Capital expenditure - period of benefits The expenditure on this service is for the public good, but benefits are restricted to the ratepayers and residents within each ward served by the respective Boards. The hall users are the direct beneficiaries of community halls. Users include education groups, recreation groups, sports groups, social groups and people hiring halls for other activities, including private functions. On a district-wide basis, halls provide options for the community at large. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Council s involvement in halls is largely historical. There is no planned replacement programme. Inter-generational equity has been considered, but Council has resolved to fund projects as they arise. Action/inaction by others Direct users can have an impact on the standard and quality of facilities. Costs and benefits of separating this activity The level of public interest within this community necessitates the separate disclosure. Council has appropriate systems in place to allocate costs to this activity. The level of interest in this activity warrants separate disclosure. Council has an appropriate structure in place to allocate the costs to this activity. Funding conclusion The most appropriate funding source is a targeted ward rate. The most efficient, effective and transparent way to raise the cost of the public good (district and community allocation) element was a targeted rate on a uniform basis on each separate rating unit within a hall rating area. The funds raised for each hall should be used to meet the annual operating cost and make provision for covering the cost of planned major maintenance and capital expenditure in the years ahead. Council considered that the private benefit should be recovered from rental income and that each community hall committee should be responsible for setting the range of rentals applicable to its hall. Page 145 of 206

146 Revenue and Financing Policy Compliance District Governance District Promotion Community outcomes Grow our economy A quality regulatory service Efficient Council operations. All of the outcomes are applicable. Grow our economy Improved external image Community pride. Distribution of benefits Capital expenditure - period of benefits There is a greater element of public good in the enforcement area. The principal purpose is to represent the interests of all residents and ratepayers. Council, its Committees and the office of the Mayor benefit the district in that members are elected to provide a governance service including representation, policy setting, monitoring and review. The benefits of district promotion extend to the wider community. Everyone benefits through increased economic growth when the district is positively promoted and tourists are spending time and money within the district. This activity is about service delivery to current ratepayers and residents. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. The benefits are for current and future communities. However, there is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Action/inaction by others Stakeholders must maintain high standards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the activity. Action or inaction by others does not impact on the need to undertake this activity. The involvement of the community can impact on the success or otherwise of this activity. Costs and benefits of separating this activity The regulatory nature of the relevant Acts makes it appropriate to combine the various requirements of these Acts together into a separate activity. Council has appropriate systems in place to separately allocate costs to this activity. This activity is distinct from other activities because it is the basis of local government appropriate representation in decision making. Council has appropriate systems in place to allocate costs to this activity. The benefit received from this activity is not always tangible. For this reason, it is important that Council keeps track of its contribution to this activity, which is distinct from other activities. Council has an appropriate structure in place to allocate costs to this activity. Funding conclusion It is sometimes difficult to recover costs in the enforcement area, in particular when complaints are received. Income from the exacerbator is unpredictable and not significant. The most appropriate, effective, efficient and transparent method of Governance and promoting community wellbeing was to charge for this service through general rating mechanisms. Council considered that the most appropriate effective, efficient and transparent method of funding the public good allocation was general rating revenue. Page 146 of 206

147 Revenue and Financing Policy District Recreation Economic Development Emergency Management Health Community outcomes Community pride. Grow our economy Improve external image A quality regulatory service. Grow our economy Distribution of benefits Capital expenditure - period of benefits The members of our community who use this service benefit from improved health and fitness. Economic growth and development results in improved job opportunities for our residents, helping to improve prosperity. The operation of the Civil Defence service involves maintaining a state of readiness so that the district is equipped to cope, should a civil emergency occur Licenses and inspection This activity is primarily about benefiting current communities. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. The benefits are for current and future communities. However, there is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. This activity is about being prepared to respond in an emergency. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. This activity is about service delivery to current ratepayers and Action/inaction by others The involvement of the community in this activity can impact on the success or otherwise of this activity. The involvement of the community can impact on the success or otherwise of this activity. There is minimal impact from others through natural disasters, although fires may result from human intervention. Stakeholders must maintain high standards for the activity objectives Costs and benefits of separating this activity Council has a structure in place to allocate costs to this activity. The benefit received from this activity is not always tangible. For this reason, it is important that Council keeps track of its contribution to this activity, which is distinct from other activities. Council has an appropriate structure in place to allocate costs to this activity. Given the high community benefit it is appropriate that the activity is separately disclosed. The nature of this activity indicates that it should be accounted for separately. Council has appropriate systems in place to allocate costs to this activity. The regulatory nature of the relevant Acts makes it appropriate Funding conclusion Council considered that the most effective, efficient and transparent method available for funding this public good service was general rating revenue. The most appropriate effective, efficient and transparent method of funding the public good allocation is general rating revenue. Council considered that the most effective, efficient and transparent method for funding these services was general rating revenues. Legislative limitations on fees, eg liquor licensing, places a restriction on Page 147 of 206

148 Revenue and Financing Policy Community outcomes A quality regulatory service Efficient Council operations. Distribution of benefits Capital expenditure - period of benefits Where services provide independent certification that adequate standards have been met in the operation of an activity, eg hairdressers, food premises, liquor outlets, the benefits of the service are predominantly received from the holder of the certificate or licence. Another important part of regulatory inspection work is providing information and advice to the developer as well as the general public about potential effects and/or relevant legislative requirements. residents. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Action/inaction by others to be achieved. The impact of this not occurring will result in increased costs for the activity. Costs and benefits of separating this activity to combine the various requirements of these Acts together into a separate activity. Council has appropriate systems in place to separately allocate costs to this activity. Funding conclusion Council s ability to recover user charges. Council will to the extent possible fund the private benefit on a cost recovery basis using a range of fees and charges designed to generate approximately 20% of revenue required to operate the service. The public good element is to be funded from general rating revenues. Libraries Quality services and facilities Community pride Cultural leadership Efficient Council operations. The library service provides a mix of community, district and private benefits. The direct beneficiaries are the users of services provided by the district libraries. There is a public good in terms of community learning and support that is provided by the library service. Council utilises depreciation and loan funding as a source of funding, recognising that a relevant and accessible collection, and facilities that are fit for purpose are the keys to providing a library service for future generations. There are both current and future benefits. Charges are levied to reflect misuse of library books and materials. The Library activity is distinct from other core activities. With no alternative providers, it is considered appropriate to separate this activity. Council has an appropriate structure in place to allocate costs to this activity. Council wishes to ensure equitable access to the library and because of this, the most effective, efficient and transparent method available within the limitations of statute for funding the community wellbeing generated by providing a library service was user fees and general rating revenue. Page 148 of 206

149 Revenue and Financing Policy Parks and Reserves (including Sportsgrounds) Pensioner Housing Community outcomes Quality services and facilities Community pride. Well managed infrastructure Distribution of benefits Capital expenditure - period of benefits The benefits of sportsgrounds and parks and reserves include the encouragement of health and fitness, enhancement of community amenities and contributes to public pride and general wellbeing. The direct beneficiaries are the occupants who are housed in quality, affordable housing.. Capital development will benefit future generations. Funding should be from depreciation reserves and loan funding. Council believes that it has a social responsibility to continue to provide this service. Action/inaction by others Misuse of the facilities will impact on the costs of providing these services. The Tokoroa Memorial Sportsground is managed under a contract with the South Waikato Sports and Leisure Board. The operation of this contract will impact on the cost of providing these services. Actions of tenants may impact on the cost of providing these facilities if misuse occurs. Costs and benefits of separating this activity The activity collectively represents a substantial cost and provides a key component of the infrastructure. There is no logical grouping into which the activity could be added. Council has an appropriate structure in place to allocate costs to this activity. The Local Government Act 2002 defines pensioner housing as a strategic Funding conclusion Sportsgrounds: the encouragement of sport and recreation within the district and the improvement of its image are important objectives, which Council has recognised in setting its user charges. The funding source is rates revenue and user charges. Council considered that the most effective, efficient and transparent method available for funding the sports grounds was general rating mechanisms and a small amount of admission fees and user charges. Parks and reserves: the collection of parks and reserves represent a substantial cost of Council s activities and a key component of environmental infrastructure. There is no other logical grouping for this activity and, therefore, it is appropriate to separate this activity. Council does not seek a return on its investment in housing stock, but the cost of operations and Page 149 of 206

150 Revenue and Financing Policy Property Management Community outcomes Community pride. Quality services and facilities. Distribution of benefits Capital expenditure - period of benefits It was considered that private use of Council property conveyed private benefits. However, some of the properties in this group are held for the public good and their strategic importance. Council involvement is being maintained and no significant capital development is proposed in the foreseeable future. The focus is on ensuring that the housing units are maintained to a good standard. There are no significant intergenerational equity considerations for this activity. There are no significant inter-generational equity issues with this activity. Action/inaction by others Tenants and lessees have the ability to impact on the quality and standard of the facilities. Costs and benefits of separating this activity asset. For this reason Council has elected to treat pensioner housing as a separate activity. Council has an appropriate structure in place to allocate cost to this activity. Council's direct management of these properties necessitates separate division of this activity. The nature of this activity indicates that it should be accounted for separately. Council has appropriate systems in place to allocate costs to this activity. Funding conclusion on-going maintenance should be fully funded from rental income. The most appropriate, effective, efficient and transparent method of funding this service is rental income. Council noted that there were no issues of fairness and equity which would alter the allocation of cost. This activity is, wherever possible, supported by rental income. In some cases encumbrances on the properties or market rentals limit income, resulting in a shortfall between income and expenditure. There will always be a need for rating support. The value of the support required from rates varies from year to year as properties are sold, and varies from property to property according to individual circumstances. Page 150 of 206

151 Revenue and Financing Policy Public Toilets Regulatory Services (Health, Liquor, Noise and Parking) Community outcomes Improved external image Quality services and facilities. Grow our economy A quality regulatory service Efficient Council operations. Distribution of benefits Capital expenditure - period of benefits There are considerable public benefits relating to maintaining public health and eliminating nuisance issues and attracting visitors. Private good can be indirectly attributed to business ratepayers in recognition of retail trade. Facilities for the travelling public meet the criteria of public good. The balance of the service is a private benefit. Licenses and inspection Where services provide independent certification that adequate standards have been met in the operation of an activity, eg hairdressers, food premises, liquor outlets, the benefits of the service are predominantly received from the holder of the certificate or licence. Another important part of regulatory inspection work is providing information and advice to the developer as well as There is a degree of inter-generational equity considerations for this activity as a major programme of investment occurs to upgrade existing and build new toilets. This activity is about service delivery to current ratepayers and residents. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Action/inaction by others Users have the ability to impact on the quality and standard of the facilities. Stakeholders must maintain high standards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the activity. Costs and benefits of separating this activity The special nature of public toilets and no other logical grouping necessitates separate disclosure of this activity. Council has an appropriate structure in place to allocate costs to this activity. The regulatory nature of the relevant Acts makes it appropriate to combine the various requirements of these Acts together into a separate activity. Council has appropriate systems in place to separately allocate costs to this activity. Funding conclusion While the toilets remain free of charge, it is impossible to either identify or exclude people from using this service during open hours. Currently there is no means of charging for the private good that businesses may get from travellers stopping to use public toilets. Council considered that the most effective, efficient and transparent method of funding the service was general rating revenue but has not excluded developing new user pays toilets in the future. It is sometimes difficult to recover costs in the enforcement area, in particular when complaints are received. Income from the exacerbator is unpredictable and not significant. Legislative limitations on fees, eg liquor licensing, also places a restriction on Council s ability to recover user charges. Council will to the extent possible fund the private benefit on a cost recovery basis using a Page 151 of 206

152 Revenue and Financing Policy Resource Management (Planning) Community outcomes Grow our economy Improved external image A quality regulatory service Efficient Council operations. Distribution of benefits Capital expenditure - period of benefits the general public about potential effects and/or relevant legislative requirements. Enforcement There is a greater element of public good in the enforcement area. Consents and inspection Where services provide resource consents to individuals or developers, the benefits of the service are predominantly received from the holder of the consent. Another important part of consent work is providing information and advice to the public about the requirements of relevant legislation. Enforcement There is a greater element of public good in the enforcement area. At present, most enforcement work is undertaken in response to a complaint from the public about an activity. Where possible, the costs of enforcement work are recovered from the exacerbator. There is also a monitoring fee on all resource consents to This activity is about service delivery to current ratepayers and residents. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Action/inaction by others Stakeholders must maintain high standards for the activity objectives to be achieved. The impact of this not occurring will result in increased costs for the activity. Costs and benefits of separating this activity The nature of this activity makes it appropriate to separate it from other activities that Council carries out. Council has appropriate systems in place to separately allocate costs to this activity. Funding conclusion range of fees and charges designed to generate approximately 20% of revenue required to operate the service. The public good element is to be funded from general rating revenues. Council considered that, with the exception of policy and monitoring work, the most efficient, effective and transparent method of funding the private benefit (the applicant allocation) is a cost recovery basis using a range of fees and charges designed to generate approximately 35% of revenue required to operate the service. The public good element of consenting work, and the policy and monitoring work, is to be funded from general rating revenue. Page 152 of 206

153 Revenue and Financing Policy Roading Community outcomes Grow our economy Well managed infrastructure Sustainable Council operations Efficient Council operations. Distribution of benefits Capital expenditure - period of benefits help cover the costs of inspection. Where people are not meeting the conditions of the consent, further action may be taken and costs recovered. Policy The main purpose is to prepare plans which set standards or guidelines for the sustainable management of the environment and benefits for the community as a whole. The District Plan sets the standards to ensure the resources in the district will be available for future generations. It is appropriate that the community as a whole meets the costs of planning. Central Government collects user charges from the motorist via petrol excise tax, road user charges and registration fees. The balance of the cost is raised from local ratepayers. Council contends that this should be treated as a public good element as it has no authority to levy user charges. The local public Roading is a long-term asset. Council has identified long-term benefits of developing new roads and funds this through depreciation reserves, loans and NZTA subsidies. Action/inaction by others Heavy vehicle and high volume users impact on the quality of the roading network. This exacerbator situation is covered to a certain extent by the NZTA subsidy being partly sourced from road user charges and excise tax which are weighted towards heavier and higher users. Costs and benefits of separating this activity The size and nature of this activity is unique to Council. The practical management of this activity is such that it operates as one activity. Council has an appropriate structure in place to allocate costs to this activity. Funding conclusion Council considered that the most effective, efficient and transparent method available for funding the public good service was general rating mechanisms, after gaining as much revenue as possible from Central Government subsidies. Page 153 of 206

154 Revenue and Financing Policy South Waikato Performing Arts Centre (The Plaza) and Tīrau Hall Community outcomes Improved external image Quality services and facilities Community pride Cultural leadership Distribution of benefits Capital expenditure - period of benefits good element is predominantly about providing access and opportunity for use. Council considered the issues and, on both an economic and public wellbeing basis, determined that the allocation of the ratepayer contribution was considered to be 100% public good. The South Waikato Performing Arts Centre represents a portion of Council s contribution to the cultural and leisure infrastructure of the district. The most direct beneficiaries are the regular users and those who attend or will attend events held in these venues. The community benefits from having multiple cultural/leisure opportunities to enjoy and the district s reputation is enhanced by the provision of a broad spectrum of cultural/leisure choices. The Tīrau Hall provides a community facility able to be used for social and cultural purposes. Again, while the most direct beneficiaries are the The theatre and hall will benefit the community and users, currently and in the future. Council proposes to fund significant development through built-up reserves, depreciation reserves and loan funding. Action/inaction by others Misuse by users can impact on the quality of these facilities. Costs and benefits of separating this activity It is necessary to keep these facilities separate from other activities to clearly identify the cost to the community. Council has established a structure which caters for easy allocation of costs to these activities. Funding conclusion Council has considered its allocation of district and community benefit in relation to these two facilities and the South Waikato Sport and Events Centre to the other community cultural/leisure facilities provided throughout the district. Council has determined that these three facilities will be funded from general rating mechanisms across the wider district. This will mean that one key facility will be funded district-wide in each of the three major urban areas. The other halls, located in rural areas, will not be funded district-wide see the separate funding policy for these. Council Page 154 of 206

155 Revenue and Financing Policy South Waikato Sport and Events Centre Stormwater Community outcomes Improved external image Quality services and facilities Community pride Cultural leadership. Well managed infrastructure Distribution of benefits Capital expenditure - period of benefits regular users and those who will attend meetings and events held in the hall, the wider community benefits from having a facility such as this. The most direct beneficiaries are the regular users and those who will play sport or attend events held in the centre. The community benefits from having contemporary facility to enjoy and the district s reputation is enhanced by having the facility. Council is of the view that publicly owned stormwater control The South Waikato Sport and Events Centre, will benefit the community and users, currently and in the future. Council proposes to fund significant development through built-up reserves, depreciation reserves and loan funding. There are intergenerational equity considerations especially Action/inaction by others Misuse by users can impact on the quality of these facilities. Users of the scheme can impact on this activity. Costs and benefits of separating this activity It is necessary to keep these facilities separate from other activities to clearly identify the cost to the community. Council has established a structure which caters for easy allocation of costs to these activities. Stormwater is an activity closely monitored by the Funding conclusion considers that the most efficient and transparent method available for funding the public good allocation of the South Waikato Performing Arts Centre and the Tīrau Hall is general rating mechanisms. There will be some hireage revenue generated from these facilities however the net costs after recognition of that revenue will be met by rates. Fees collected from using the SWSEC will be used to generate as much revenue as possible. However, it is considered that pricing is sensitive. Prices that are considered by users as being too high could have an adverse effect on usage and, in particular, for people in the lower socioeconomic areas of the community. Council considered that in the interests of fairness and equity the proportion of user benefit should not exceed 20%. Council considered that the most effective, efficient and transparent Page 155 of 206

156 Revenue and Financing Policy Swimming Pools Community outcomes Sustainable Council operations Improved external image Distribution of benefits Capital expenditure - period of benefits services provide both community and district benefits. The community (including private) benefit is high as it reduces the risk of flooding and associated problems, including disruption to transport, property damage and risk to personal safety. Stormwater services provide similar benefits to the district, albeit on a smaller scale. These benefits include maintaining high standards of public health, keeping roadways clear of flood water and minimising inconvenience for the public at large. This is particularly important because of the close settlement within urban areas. Stormwater services on a private property that are for the benefit of that property or are to mitigate the effects of stormwater runoff from that property on downstream properties are the responsibility of the property owner. The most direct beneficiaries are pool users. They include within the urban environment related to public safety. Capital work will be funded by depreciation reserves and loan. The South Waikato Indoor Pools complex is primarily for current and Action/inaction by others Swimmers impact on the cost of this activity and, to a lesser extent, the Costs and benefits of separating this activity community. Given the high community benefit, Council considers it appropriate to separate this activity. Council has appropriate systems in place to allocate costs to this activity. There is sufficient interest to separate out this activity. It is Funding conclusion method for funding urban stormwater services is to charge a targeted rate in the dollar of rateable value within each urban stormwater drainage area. The choice of a capital value targeted rate in part recognises that larger properties have the potential to discharge more water into the stormwater system. Ticket sales will be used to generate as much revenue as possible. Page 156 of 206

157 Revenue and Financing Policy Community outcomes Quality services and facilities Community pride Sustainable Council operations Distribution of benefits Capital expenditure - period of benefits individuals, both children and adults, senior adults, clubs and schools. These groups are identifiable and therefore excludable. Community benefit is based on option values in that residents have an additional leisure activity choice. Quality leisure facilities enhance the reputation of the district (district image) and assist in promoting the South Waikato as a place in which to invest, live and work. future users of the facility. Any significant capital developments and renewals will be funded from the depreciation reserves or loan. Action/inaction by others swimming club, schools and user groups Costs and benefits of separating this activity considered necessary to keep these facilities separate from other facilities to clearly demonstrate the benefits and costs to the community. There is no alternative grouping into which this activity could be added. There is an appropriate structure in place for the allocation of costs to this activity. Funding conclusion However, it is considered that pricing is sensitive. An increase in prices could have an adverse effect on pools usage and, in particular, for people in the lower socio-economic areas of the community. This was felt to be an appropriate, effective, efficient and transparent way of funding the public good. Council considered that admission fees (ticket sales) were the most appropriate, efficient, effective and transparent method of funding the private benefit. Talking Poles and Waikato River Trails Tokoroa Airfield Improved external image Community pride Cultural leadership. Improved external image Council considered that support of these projects conveyed positive public benefits. They are important for both district promotion purposes, and for the on-going recreational and arts and cultural enjoyment of residents. It is recognised that these projects primarily provide public benefits. It was considered that private use of Council property conveyed private The benefits are for current and future communities. However, there is minimal or no capital expenditure and no significant intergenerational equity consideration for this activity. There are intergenerational equity issues with this activity. The involvement of the community can impact on the success or otherwise of this activity. Users, tenants and lessees have the ability to impact on the quality The benefit received from this activity is not always tangible. For this reason, it is important that Council keeps track of its contribution to these activities, which are distinct from other activities. Council has an appropriate structure in place to allocate costs to this activity. The nature of this activity indicates that it should be accounted Council considered that the most appropriate effective, efficient and transparent method of funding the public good allocation was general rating revenue. Council noted that there were no issues of fairness and equity Page 157 of 206

158 Revenue and Financing Policy Tokoroa Council of Social Services Urban Connector Community outcomes Quality services and facilities Community pride. Community pride Cultural leadership. Quality services and facilities Community pride Distribution of benefits Capital expenditure - period of benefits benefits. However, there is public good in maintaining a local airport. The beneficiaries of this activity are to those who use the Tokoroa Council of Social Services. Council considered that this service, closely related to the community support and grants function, was primarily engaged in providing a public benefit for the community and district as a whole. Council did recognise that in providing this service the flow-on effect could generate private benefits. However, the public benefit was dominant and came first. The benefits extend to those who use the service as they have greater number of transport options available to access the services and facilities that they need. The wider community benefits because community members Capital spending is funded from reserves and loan. There are no intergenerational equity consideration. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. There are no intergenerational equity considerations. There is minimal or no capital expenditure and no significant intergenerational equity considerations for this activity. Action/inaction by others and standard of the facilities. The impact of others should be minimal. The impact of others should be minimal. Costs and benefits of separating this activity for separately. Council has appropriate systems in place to allocate costs to this activity. It is appropriate that the results and associated costs are separately disclosed. Council has an appropriate structure in place to allocate costs to this activity. It is appropriate that the results and associated costs are separately disclosed. Council has an appropriate structure in place to allocate costs to this activity. Funding conclusion which would alter the allocation of cost. This activity is, wherever possible, supported by rental income however rates funding is also justified due to the public good element. Council considered that the most effective, efficient and transparent method for funding this public good service was general rating mechanisms. Private benefit is recognised in a funding allocation from user fee rentals. This activity will be funded 35% by General Rates, 35% by User Fees and 30% from New Zealand Transport Agency subsidy. Page 158 of 206

159 Revenue and Financing Policy Waste - Landfills and Refuse Disposal Community outcomes Well managed infrastructure Sustainable Council operations Distribution of benefits Capital expenditure - period of benefits have greater transport options to available to access employment, education etc. The disposal of solid waste conveys significant private benefits to ratepayers and residents, however the operation of environmentally sound landfill and transfer station sites also assists in maintaining local public health standards. It also reduces the incidence and impact of illegal dumping of solid waste, and the consequent reduction of district aesthetic values. A high standard of landfill site management also assists in reducing environmental damage at the local and national level. Appropriate disposal methods and aftercare (including monitoring of closed landfill sites) assists in reducing the possibility of future environmental damage. These matters are public good benefits. Users of landfill sites are the direct and largest group of beneficiaries of this service. On the basis of the exacerbator pays, There are intergenerational equity considerations with this activity. The landfills will require monitoring after closure. Capital spending will be met from reserves and loans, and Government grants when they are approved. Action/inaction by others Users of landfill sites impact on this service. The level of recycling also impacts on this activity. Costs and benefits of separating this activity Council has decided to separate this activity due to its nature (disposal) being different from collection and recycling. Council has an appropriate system in place to separately allocate the costs to this activity. Funding conclusion Council will retain a 70% private benefit, 30% public good split. Page 159 of 206

160 Revenue and Financing Policy Waste Litter Collection Waste - Refuse Collection Waste Recycling Community outcomes Improved external image Quality services and facilities Sustainable Council operations. Quality services and facilities Sustainable Council operations. Quality services and facilities Distribution of benefits Capital expenditure - period of benefits Council considered that the largest portion of economic benefit accrued to this group. While the service provides significant private benefits, particularly to property owners in the central business districts, there are huge public benefits in ensuring that litter is not left on the streets, roadsides and public places. There is also a requirement to maintain public health standards in the interests of the community at large. Individual property owners benefit from the collection of rubbish but there is also a public benefit in relation to protection of public health, as required by the Health Act The collection activity is primarily private. Individual property owners benefit from the There are no intergenerational equity considerations with this activity. The benefits are for the current communities. There are no capital works. The benefits are immediate, with no intergenerational equity There would be capital expenditure if Council provides a building for Action/inaction by others Those who litter will impact on the cost of this activity. The urban properties within the collection area will impact on the cost of this service. However, there are very different demands on the service depending on factors such as the number of people residing in a home, the level of waste generated, the use or non-use of commercial refuse collection alternatives, the use of composting initiatives within the property, the level of recycling, etc. The number of properties within the collection area will impact on the cost of Costs and benefits of separating this activity Council considered that removing litter from public places and improving the image of the district is an essential service and therefore it is necessary to separate this activity. Council has an appropriate system in place to allocate costs to this activity. Council has decided to separate this activity due to its nature (collection) being different from the ultimate landfill disposal management. Council has an appropriate system in place to separately allocate the costs to this activity. Council has decided to separate this activity due to its Funding conclusion Council considered that the most appropriate, effective, efficient and transparent method for providing funding for this activity is through general rating mechanisms. The refuse collection service should be funded on a user pays basis Council has considered that the most practical means of funding this Page 160 of 206

161 Revenue and Financing Policy Wastewater Community outcomes Community pride Sustainable Council operations. Well managed infrastructure Sustainable Council operations Efficient Council operations. Distribution of benefits Capital expenditure - period of benefits collection of recyclable waste materials Council decided that the direct beneficiaries of a sewage collection and treatment service are the users of that service. This applies whether the user is a club, charitable organisation, commercial or industrial enterprise, or a private residence. In addition, a benefit accrues whether the property is connected to the system or could be connected to the system. While the service provides predominantly private benefits, the community at large benefits from the elimination of public health risks arising from open sewers and inadequate septic tank facilities. Environmentally the recyclables activity which would introduce some inter-generational equity considerations for this activity. This activity has intergenerational equity considerations. Depreciation funding or loans are used for capital renewal work. Action/inaction by others this service. However, there are very different demands on the service depending on factors such as the number of people residing in a home, the level of waste generated, the use or non-use of commercial refuse collection alternatives, the use of composting initiatives within the property, the level of recycling, etc. Users of the sewerage schemes impact on the provision of this service. The size of the network capacity relative to current population minimise the impact that growth in the near future may have on provision of this service. Costs and benefits of separating this activity nature (recycling) being different from refuse collection and landfill disposal management. Council has an appropriate system in place to separately allocate costs to this activity. The empowerment by the Local Government Act 2002 and the safety requirements necessitate separate disclosure of the activity. Council has an appropriate structure in place to allocate costs to this activity. Funding conclusion activity is through targeted rate mechanisms. This will assist in encouraging people to recycle rather than dispose to landfill. Of all the funding tools available, Council considered that the most efficient, effective and transparent method available was a targeted rate on a uniform basis on each serviced rating unit. Page 161 of 206

162 Revenue and Financing Policy Water Supply Community outcomes Well managed infrastructure Sustainable Council operations Efficient Council operations. Distribution of benefits Capital expenditure - period of benefits sound treatment services reduce the adverse impact on receiving waterways. This improves the environment downstream from the treatment plants and benefits property owners in the adjacent rural areas within and beyond the district boundaries. Council considered that with the major exceptions of community health and safety, firefighting, street cleaning, public toilets, parks, reserves and swimming pools; the benefits accruing from this service were primarily private and that this decision applied to both commercial and domestic customers connected to the supply. The greater requirements of newly enhanced national drinking water standards will necessitate the need for significant capital development. There is an intergenerational equity component for this activity. Depreciation funds, targeted water rate reserves, loans and where possible, government funding are appropriate funding sources for capital work. Action/inaction by others The users of the schemes impact on the provision of these services. Costs and benefits of separating this activity The public expectation of Council s provision of this service necessitates the separate disclosure of this activity. Council has appropriate systems in place to allocate costs to this activity. Funding conclusion Consideration has been given to the introduction of a domestic metered water supply. However, the high cost of installing and maintaining a metered service currently makes the proposal uneconomic. Page 162 of 206

163 Revenue and Financing Policy Relevant Delegations Any changes to this Policy require Council approval. References and Relevant Legislation Local Government Act Local Government (Rating) Act Annotations Res No Date Subject/Description 265/03 10/07/03 Policy adopted 235/04 24/06/06 Policy amended/confirmed as part of Long Term Council Community Plan process 291/05 23/06/05 Policy amended/confirmed as part of Annual Plan process 026/06 to 028/06 31/06/06 Refuse Collection, Economic Development and Governance activity 347/06 10/07/06 Policy amended/confirmed as part of Long Term Council Community Plan process 358/07 28/06/07 Policy amended/confirmed as amendment to LTCCP. Change to rate:fee ratio, Business Promotion Activity Funding and The Plaza Activity Funding. Defining Separately Used or Inhabited Parts of a Rating Unit 134/09 28/05/09 Policy amended/confirmed as part of Long Term Council Community Plan process 236/12 28/06/12 Policy amended/confirmed as part of Long Term Plan process 165/15 18/06/15 Policy amended/confirmed as part of Long Term Plan process 16/144 16/06/16 Policy amended/confirmed as part of Annual Plan process 18/80 29/03/18 Policy amended/confirmed for consultation as part of LTP process Page 163 of 206

164 Significance and Engagement Policy 17. SIGNIFICANCE AND ENGAGEMENT POLICY Significance and Engagement Policy Kaupapa Here Whai Pūtake me te Tūhonohono Responsibility: Deputy Chief Executive First adopted: November 2014, Res: 14/257, Res: 18/80 Historic revision dates: October 2014, September 2017 Next review date: Before 2022 Review frequency: Approval authority: Consultation required: (3 yearly if required as part of the Long Term Plan; up to 5 years) Council (Special Consultative Procedure - if required as part of the LTP) Record number: DocSet ID number Associated documents: MOU Raukawa DocSet ID JMA Raukawa DocSet ID JMA Te Arawa DocSet ID Policy Objectives - Ngā Whāinga Kaupapa Here To clarify the degree of significance for proposals and decisions. To clarify when and how communities can expect to be engaged. Principles - Ngā Whanonga Pono The Council will be consistent and transparent in how it engages the public. The Council will ensure Māori views are considered when engaging. The Council will consider language, accessibility and cultural needs in any engagement. The Council will act honestly and openly when analysing and presenting any engagement results. The Council will provide appropriate information to help people understand what is being proposed. The Council will prominently outline a proposals or decisions cost in any engagement. Definitions - Ngā Whakamāramatanga Asset class Community Consultation Council operational assets and council infrastructure assets, as disclosed in the council's Annual Report - property, plant and equipment table A group of people living in the same place or having a particular characteristic in common. Includes interested parties, affected people and key stakeholders. A subset of engagement; a formal process where the community can present their views to the Council on a specific decision that is proposed and made public. Page 164 of 206

165 Significance and Engagement Policy Decisions Engagement Refers to all the decisions made by or on behalf of the council including those made by officers under delegation. (Management decisions made by officers under delegation during the implementation of council decisions will not be deemed to be significant). Is a term used to describe the process of seeking information from the community to inform and assist decision making. There is a continuum of community involvement. LGA Local Government Act 2002 Māori SCP Significance Significant Significant Activity Significant project or asset purchase Strategic asset Includes Māori who have tribal links to the South Waikato District (i.e. Mana Whenua also known as iwi and hapū) and Māori with tribal affiliations outside of the district, but reside or own property within the district (i.e. mataawaka). The Special Consultative Procedure, as outlined in Section 83 of the LGA 2002, which sets out minimum requirements for engagement including (but not limited to): Making available a Statement of Proposal. Allowing a minimum of 1 month to receive written views. Allowing persons to present views in a spoken manner. As defined in Section 5 of the LGA2002 in relation to any issue, proposal, decision, or other matter that concerns or is before a local authority, means the degree of importance of the issue, proposal, decision, or matter, as assessed by the local authority, in terms of its likely impact on, and likely consequences for, the district or region: a) any persons who are likely to be particularly affected by, or interested in, the issue, proposal, decision, or matter b) the capacity of the local authority to perform its role, and the financial and other costs of doing so Defined in Section 5 of the LGA 2002, in relation to any proposal or decision means that the proposal has a high degree of significance. Decisions made by Chief Executive or officers under delegated authority will not be deemed to be significant. Is an activity the council deems to be significant as per section 5 of the Local Government Act 2002, defined above. Any project or asset purchase where the total expenditure was in excess of 5% budgeted expenditure in accordance with Councils Annual Plan and Long Term plans. Budgeted expenditure includes external interest expenditure, accounting depreciation and excluding interest on internal loans, rates on council property, other internal expenditure, losses and gains of asset sales and transfers on equity. As defined in Section 5 of the LGA2002 in relation to the assets held by a local authority, means an asset or group of assets that the local authority needs to retain if the local authority is to maintain the local authority's capacity to achieve or promote any outcome that the local authority determines to be important to the current or future well-being of the community; and includes a) any asset or group of assets listed in accordance with section 76AA(3) by the local authority; and Page 165 of 206

166 Significance and Engagement Policy b) any land or building owned by the local authority and required to maintain the local authority's capacity to provide affordable housing as part of its social policy; and c) any equity securities held by the local authority in I. a port company within the meaning of the Port Companies Act 1988: II. an airport company within the meaning of the Airport Authorities Act 1966 The Council South Waikato District Council Background - Kupu Tuarongo South Waikato District Council s Significance and Engagement Policy was adopted in 2014 to meet our legislative requirements under the Local Government Act 2002 (the LGA). The policy: Enables the council and our communities to understand the significance council places on certain issues, proposals, assets, decisions and activities Identifies how and when communities can expect to be engaged or specifically consulted on these items. The Significance and Engagement policy applies across our council. When assessing the degree of significance and deciding on appropriate engagement or consultation processes, the policy requires us to take into consideration other legislative requirements, as well as any other agreements that might already be in place. To ensure council engages as effectively as possible with the South Waikato Districts diverse communities, we gather information on people s views and preferences in a variety of ways. Sometimes that might be via formal statutory consultation, or it might be via a more informal engagement process. Either way, the overall intent is to ensure that, wherever possible, anyone who wishes to contribute ideas or information to important council processes and decisions has the opportunity to do so. Policy Statement declaration of activities, plans intentions relating to the cause Purpose and Scope ǀ Te aronga me te korahi 1) To enable the council and its communities to identify the degree of significance attached to particular issues, proposals, assets, decisions and activities. 2) To provide clarity about how and when communities can expect to be engaged in decisions made by the council. 3) To inform the council from the beginning of a decision-making process about the extent, form and type of engagement required. 4) This policy does not apply to decision making under the Resource Management Act 1991 and or other legislation that includes a prescribed consultative/engagement process. Policy ǀ Kaupapa here 5) Engaging with the community is needed to understand the views and preferences of people likely to be affected by or interested in a proposal or decision. 6) An assessment of the degree of significance of proposals and decisions, and the appropriate level of engagement, will therefore be considered in the early stages of a proposal before decision making occurs and, if necessary, reconsidered as a proposal develops. Assessment of significance ǀ He aromatawai I te pūtake 7) The council will take into account the following matters when assessing the degree of significance of proposals and decisions, and the appropriate level of engagement: There is a legal requirement to engage with the community The level of financial consequences of the proposal or decision Page 166 of 206

167 Whether the proposal or decision will affect a large portion of the community The likely impact on present and future interests of the community Draft Long Term Plan Significance and Engagement Policy The likely impact on Māori cultural values and their relationship to land and water (also refer section 15) Whether the proposal affects the level of service of a significant activity Whether community interest is high Whether the likely consequences are controversial and has a likely impact on the reputation of Council Whether community views are already known, including the community s preferences about the form of engagement The form of engagement used in the past for similar proposals and decisions. 8) The council will take into account the degree to which the issue has a financial impact on the council or the rating levels of its communities, using the following thresholds: The unbudgeted operating expenditure greater than 5 per cent of total operating expenditure in that year, excluding amortisation and depreciation. 9) If a proposal or decision is affected by the above considerations, it is more likely to have a high degree of significance. 10) In general, the more significant an issue, the greater the need for community engagement. Engagement and consultation Tūhonohono me te whakawhiti korero 11) The council will apply a consistent and transparent approach to engagement. 12) The council is required to undertake a special consultative procedure as set out in Section 83 of the Local Government Act 2002, or to carry out consultation in accordance with or giving effect to Section 82 of the Local Government Act 2002 on certain matters (regardless of whether they are considered significant as part of this policy). 13) For all other issues requiring a decision, the council may determine the appropriate level of engagement (section 82 of the Local Government Act 2002) on a case by case basis. 14) The Community Engagement Guide (schedule two, attached) identifies the form of engagement the council will use to respond to some specific issues. It also provides examples of types of issues and how and when communities could expect to be engaged in the decision making process. 15) Where Joint Management Agreements, Memorandum of Understanding or any other similar high level agreements exist, these will be considered as a starting point when engaging with Māori. 16) For mana whenua groups without a formal agreement a separate engagement plan will be developed as appropriate. 17) When the council makes a decision that is significantly inconsistent with this policy, the steps identified in Section 80 of the Local Government Act 2002 will be undertaken. Relevant Delegations - Ngā Apatono Council sign-off required References and Relevant Legislation - Kohikohinga Pukapuka Rāhui me Whakatureture SCHEDULE 1 STRATEGIC ASSETS WAHANGA 1 RAWA RAUTAKI Section 5 of the Local Government Act requires the following to be listed in this Policy: a) any asset or group of assets listed in accordance with section 76AA(3) by the local authority; and Page 167 of 206

168 Significance and Engagement Policy b) any land or building owned by the local authority and required to maintain the local authority's capacity to provide affordable housing as part of its social policy; and c) any equity securities held by the local authority in I. a port company within the meaning of the Port Companies Act 1988: II. an airport company within the meaning of the Airport Authorities Act The following is a list of assets or group of assets that the council needs to retain if it is to maintain its capacity to achieve or promote any outcome that it determines to be important to the current or future well-being of the community. Strategic assets: Cemeteries Landfill Pensioner housing units Putāruru Plaza South Waikato Events Centre South Waikato Indoor, Tirau and Putāruru Swimming Pools Tokoroa and Putāruru Libraries Wastewater reticulation and treatment network Reservoirs and water reticulation and treatment network Stormwater reticulation network Transportation Network The Councils investment fund SCHEDULE 2 COMMUNITY ENGAGEMENT GUIDE WAHANGA 2- ARATAKINGA TŪHONOHONO HAPORI Community engagement - Tūhonohono Hapori is a process involves all or some of the public is focussed on decision-making or problem-solving The International Association for Public Participation (IAP2) has developed a Public Participation Spectrum to demonstrate the possible types of engagement with the community. This model also shows the increasing level of public impact as you progress through the spectrum from left to right - inform through to empower. In simply informing stakeholders there is no expectation of receiving feedback, and consequently there is a low level of public impact. At the other end of the spectrum, empowering stakeholders to make decisions implies an increase in expectations and therefore an increased level of public impact. Differing levels of engagement may be required during the varying phases of decision- making on an issue, and for different stakeholders. It will not always be appropriate or practicable to conduct processes at the collaborate or empower end of the spectrum. Many minor issues will not warrant such an involved approach. Time and money may also limit what is possible on some occasions. In general, the more significant an issue, the greater the need for community engagement. Page 168 of 206

169 Significance and Engagement Policy When engaging with the community, the council will: Seek out and encourage contributions from people who may be affected by or interested in a decision, Provide reasonable access to relevant, timely and balanced information so people can contribute in a meaningful way, Provide a variety of appropriate ways and opportunities for people to have their say and Tell the community what the council s decision is and the reasons for that decision Provide a clear record or description of the relevant decisions made by council and explanatory material relating to the decision. Forms of engagement - Ngā Tāera Tūhonohono The council will use the Special Consultative Procedure (as set out in section 83 of the LGA 2002) where required to do so by law, including the following issues requiring decisions: Adoption or amendment of the long term plan (sections 93(2) and 93A). Making, amending or revoking a bylaw that the council identifies using this policy as having significant interest to, or significant impact on, the public (section 156(1)(a)) The adoption, amendment or revocation of a Local Alcohol Policy The adoption or review of a Local Approved Products (Psychoactive Substances) Policy The adoption or review of a class 4 venue policy under the Gambling Act 2003 The preparation, amendment or revocation of a waste management and minimisation plan Unless already explicitly provided for in the Long Term Plan, the Council will seek to amend its Long Term Plan, and therefore use the Special Consultative Procedure, when it proposes to: alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of Council, including commencing or ceasing such an activity; or transfer the ownership or control of strategic assets, as listed in Schedule 1. The council will consult in accordance with, or using a process or a manner that gives effect to the requirements of, section 82 of the LGA 2002 where required to do so by law, including for the following specific issues requiring decisions: Adopting or amendment the annual plan if required under section 95 of the LGA Transferring responsibilities to another local authority under section 17 of the LGA Page 169 of 206

170 Significance and Engagement Policy Establishing or becoming a shareholder in a council-controlled organisation. Policy changes - Adopting or amending a revenue and financing policy, development contributions policy, financial contributions policy, rates remission policy, rates postponement policy, or a policy on the remission or postponement of rate on Māori freehold land. For such consultation, Council will develop information fulfilling the requirements of Section 82A of the LGA For all other issues, the following table provides an example of the differing levels of engagement that might be considered appropriate, the types of tools associated with each level and the timing generally associated with these types of decisions/levels of engagement. Level Inform Consult Involve Collaborate Empower What does it involve One-way communication providing balanced and objective information to assist understanding about something that is going to happen or has happened. Two-way communications designed to obtain public feedback about ideas on rationale, alternatives and proposals to inform decision making. Participatory process designed to help identify issues and views to ensure that concerns and aspirations are understood and considered prior to decision-making. Working together to develop understanding of all issues and interests to work out alternatives and identify preferred solutions. The final decision making is in the hands of the public. Under the LGA 2002, the Mayor and Councillors are elected to make decisions on behalf of their constituents. Types of issues that we might use this for Water restrictions Rates review Local Alcohol Policy South Waikato District Plan The District Transport project Election voting systems (MMP, STV or first past the post) Tools Council might use Websites Information flyer Public notices Formal submissions and hearings, public meetings Workshops Focus groups External working groups (involving community experts) Binding referendum Local body elections When the community can expect to be involved Council would generally advise the community once a decision is made Council would advise the community once a draft decision is made Council and would generally provide the community with up to 4 weeks to participate and respond. Council would generally provide the community with a greater lead in time to allow them time to be involved in the process. Council would generally involve the community at the start to scope the issue, again after information has been collected and again when options are being considered. Council would generally provide the community with a greater lead in time to allow them time to be involved in the process. e.g. typically a month or more. Page 170 of 206

171 Significance and Engagement Policy Engagement tools and techniques - Ngā Keteparaha Mo Ngā Tūhonohono Over the time of decision making, the council may use a variety of engagement techniques on any issue or proposal and the tools may be adapted based on a range of other factors, including history and public awareness of the issue, stakeholder involvement, and timing related to other events and budgets. The council will also take into consideration other engagements underway, and combined initiatives will be utilised where appropriate to maximise efficiencies and to alleviate consultation/engagement fatigue. Each situation will be assessed on a case-by-case basis. Annotations - Tākupu Res No Date Subject/Description 14/257 October 2014 Policy adopted 18/80 29 March 2018 Policy adopted Page 171 of 206

172 18. THE FORECAST FINANCIAL STATEMENTS AND RESERVES Prospective financial information The Accounting Policies The financial information contained within this document is prospective financial information in terms of Financial Reporting Standard (FRS) 42: Prospective Financial Statements. The purpose for which it has been prepared is to enable the public to participate in the decision-making processes as to the services to be provided by Council over the next 10 financial years to 30 June 2028, and to provide a broad accountability mechanism for Council to the community. The information contained within these prospective financial statements may not be suitable for use in another capacity. The information in the prospective financial statements is based on estimates and the preparation requires the exercise of judgement. The actual financial results that will be achieved for the period covered are likely to vary from the information presented, and the variations may be material. Events and circumstances may not occur as expected, or may not have been predicted, or Council may subsequently take actions that differ from the courses of action on which the prospective financial statements are based. Council authorised the prospective financial statements on 28 June Council believes that the assumptions underlying these prospective financial statements are appropriate, and has approved the long term plan for distribution. Council and management of Council accept responsibility for the preparation of the prospective financial statements, including the appropriateness of the assumptions underlying the prospective financial statements and all other required disclosures. No actual financial results have been incorporated within the prospective financial statements. Minor rounding may exist in the numbers included in the financial statements. The information presented in the financial statements are shown on the next page onwards. Page 172 of 206

173 The Accounting Policies Page 173 of 206

174 The Accounting Policies Prospective Statement of Changes in Net Assets/Equity As at 30 June Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's Equity at beginning of year 388, , , , , , , , , , ,013 Net surplus/(deficit) for the year 7,534 22,102 9,997 5,867 7,731 20,675 6,810 8,664 23,975 8,169 10,315 Total equity at end of year 396, , , , , , , , , , ,328 Components of equity Accumulated surplus/(deficit) at beginning of year 145, , , , , , , , , , ,483 Net Surplus/(deficits) for the year ,700 1,901 2,398 2,068 2,326 2,635 2,640 2,958 3,311 Net other movements 1,117 2,503 (2,560) (1,572) (1,780) (3,681) (3,471) (4,893) (5,387) (5,335) (6,369) Accumulated surplus/(deficits) at end of year 146, , , , , , , , , , ,425 Council created reserves at beginning of year 3,392 3, Movements for year 64 (2,495) 7 (434) (324) Council created reserves at end of year 3, Restricted reserves at beginning of year 15,402 14,220 14,212 16,765 18,771 20,875 24,544 27,987 32,842 38,187 43,473 Movements for year (1,182) (8) 2,553 2,006 2,104 3,669 3,443 4,855 5,345 5,286 6,315 Restricted reserves at end of year 14,220 14,212 16,765 18,771 20,875 24,544 27,987 32,842 38,187 43,473 49,788 Revaluation reserves at beginning of year 224, , , , , , , , , , ,678 Revaluation surplus/(deficit) 7,276 21,135 8,297 3,966 5,333 18,607 4,484 6,029 21,335 5,211 7,004 Revaluation reserves at end of year 231, , , , , , , , , , ,682 Total equity at end of year 396, , , , , , , , , , ,328 Page 174 of 206

175 The Accounting Policies Prospective Statement of Cash Flows For year ending 30 June CASH FLOWS FROM OPERATING ACTIVITIES Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's Rates 24,630 26,520 28,890 30,904 32,771 33,368 34,730 35,725 36,895 38,110 39,397 Subsidies and grants 3,257 4,259 4,412 4,559 4,431 4,689 4,854 5,089 5,245 5,488 5,732 Development and financial contributions Finance revenue ,006 1,153 1,316 1,478 1,672 Fees, charges and other revenue 3,632 5,269 5,276 5,400 5,516 5,665 5,791 5,925 6,072 6,246 6,408 Finance expenses (736) (854) (1,062) (1,408) (1,552) (1,694) (1,845) (1,985) (2,110) (2,247) (2,415) Cash disbursed to suppliers and employees (24,502) (27,355) (28,476) (29,625) (30,557) (31,386) (32,173) (32,835) (33,843) (34,633) (35,582) NET CASH FLOWS FROM OPERATING ACTIVITIES 7,072 8,444 9,725 10,580 11,423 11,568 12,388 13,098 13,602 14,469 15,240 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from investments ,032 1,196 1,358 1,552 Investments purchased/appropriations 0 (620) (2,546) (1,954) (2,005) (3,531) (3,318) (4,715) (5,263) (5,207) (6,251) Property, plant & equipment acquired (8,137) (11,344) (14,452) (10,939) (12,183) (10,413) (11,831) (10,090) (10,245) (11,480) (12,364) NET CASH FLOWS FROM INVESTING ACTIVITIES (7,337) (11,502) (16,456) (12,287) (13,518) (13,163) (14,263) (13,773) (14,312) (15,329) (17,063) CASH FLOWS FROM FINANCING ACTIVITIES Loans raised 248 5,024 8,217 3,845 3,633 3,509 3,790 2,890 3,025 3,068 4,202 Loans repaid (935) (1,179) (1,495) (1,732) (1,914) (1,822) (1,953) (2,100) (2,251) (2,326) (2,423) NET CASH FLOWS FROM FINANCING ACTIVITIES (687) 3,845 6,722 2,113 1,719 1,687 1, ,779 NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS (952) 787 (9) 406 (376) 92 (38) (118) (44) Cash and cash equivalents at 1 July 5,743 4,791 5,578 5,569 5,975 5,599 5,691 5,653 5,768 5,832 5,714 CASH AND CASH EQUIVALENTS at end of year 4,791 5,578 5,569 5,975 5,599 5,691 5,653 5,768 5,832 5,714 5,670 Page 175 of 206

176 The Accounting Policies Page 176 of 206

177 The Accounting Policies Page 177 of 206

178 The Accounting Policies Page 178 of 206

179 The Accounting Policies Funding Impact Statement - Whole of Council For the year commencing 1 July Annual Plan LTP LTP LTP LTP LTP LTP LTP LTP LTP LTP $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's $000's SOURCES OF CAPITAL FUNDING Subsidies & grants for capital expenditure 1,729 2,257 2,299 2,439 2,403 2,581 2,690 2,813 2,916 3,049 3,188 Development & financial contributions Increase (decrease) in debt (687) 3,845 6,722 2,113 1,719 1,688 1, ,779 TOTAL SOURCES OF CAPITAL FUNDING (C) 1,063 6,124 9,045 4,576 4,147 4,293 4,552 3,630 3,717 3,819 4,994 APPLICATION OF CAPITAL FUNDING Capital expenditure: - to improve the level of services to replace existing assets 8,241 11,145 14,240 10,685 11,947 10,197 11,607 9,852 9,997 11,225 12,097 Increase (decrease) in reserves (4,094) (1,985) (1,220) (2,124) (3,197) (1,472) (2,227) (982) (707) (1,391) (679) Increase (decrease) in investments 2,525 2,641 3,167 3,874 4,212 4,446 4,851 5,152 5,358 5,774 6,167 TOTAL APPLICATIONS OF CAPITAL FUNDING (D) 6,672 12,000 16,400 12,689 13,198 13,388 14,455 14,260 14,897 15,863 17,852 SURPLUS (DEFICIT) OF CAPITAL FUNDING (C-D) (5,609) (5,876) (7,355) (8,113) (9,051) (9,095) (9,903) (10,630) (11,180) (12,044) (12,858) FUNDING BALANCE ((A-B)+(C-D)) Page 179 of 206

180 Significance and Engagement Policy Forecast reserve movements during Note Forec asted balanc e as at 1 July 2018 Transfers in Transfers out Forec asted balanc e as at 30 June 2028 Council created reserves Pensioner Housing Account A 61 - (167) (106) Swdc Asset Purchase B (224) - (35) (259) Sw Development Fund C 1,207 - (1,091) 116 Sw Economic Develop Trust Fund D 53 - (26) 27 Riverside Access Reserve E (412) (1) Financial contributions - stormwater F Financial contributions - roading F National Waste Levy Reserve G 37 1,247 (875) 409 Forestry / Airport Reserve H (305) 73 T otal Council created reserves 2,073 1,247 (2,887) 433 Asset Replacement Reserves General ARR I (733) 203 District Water ARR I 1,985 14,329 (7,712) 8,602 District Wastewater ARR I 2,813 19,206 (5,012) 17,007 District Stormwater ARR I 4,741 10,209 (627) 14,323 Waste Disposal ARR I 872 2,275 (2,253) 894 Plaza Theatre ARR I (21) 29-8 Vehicle ARR I 572 1,667 (1,601) 638 Toilets ARR I Sport & Events Centre ARR I 441 1,445 (165) 1,721 Sportsgrounds ARR I (316) 2,035 (927) 792 Reserves ARR I 102 5,097 (4,118) 1,081 Cemeteries ARR I (226) 142 Libraries ARR I (61) - (65) (126) Swimming Pools ARR I (202) 2,370 (2,054) 114 Bridges ARR I 672 2,334 (781) 2,225 General Properties ARR I 6 3,130 (1,899) 1,237 Trade Training Centre ARR I Putaruru CCTV ARR I (120) 11 Tokoroa CCTV ARR I (100) (9) Information Services ARR reserve I (700) 304 District Recycling ARR I (277) 12 T otal Asset Replacement Reserves 12,720 66,240 (29,370) 49,590 T argeted Rate Reserves District Water Supply J District Wastewater J District Stormwater J (82) Waste Collection J Upper Atiamuri Hall J (6) - 5 (1) Puketurua Hall J 8 - (10) (2) Waotu Hall J 7 (7) - - Lichfield Hall J (6) - 5 (1) Arapuni Hall J 10 (7) - 3 Tapapa Hall J 30 - (33) (3) Tirau Community Board J (4) - (1) (5) Tokoroa Promotions J Pride In Putaruru J Pride in Putaruru - Business rate J District Recyling J (205) T otal T argeted Rate Reserves (151) 383 (34) 198 The opening reserve balances shown above have been re-forecasted and therefore do not match the reserve balances shown in the 17/18 Annual Plan. Page 180 of 206

181 The Accounting Policies Purpose of reserve A. Pensioner housing: Manage the surpluses and deficits from the pensioner housing activity, when more or less rental is collected than is required to fund the annual expenditure of the pensioner houses. B. SWDC asset purchase: Hold the proceeds from the sale of assets until they are applied to purchase other assets. C. South Waikato Economic Development Fund: Council expressed in its Long Term Plan that Council would take a leadership decision to establish a South Waikato Development Fund of $4.5 million. The fund would support developments that the community considered are needed across the district. It was specifically established to develop facilities and amenities of strategic value to the district that would otherwise require financing through rate funding; enhance local employment opportunities and economic growth; and attract and retain residents by making the district a more desirable place to live. D. South Waikato Economic Development Trust Fund: The balance of this fund is to be used for funding Trade training initiatives, and a Chinese exchange student. E. Riverside access: Manage sale of proceeds from certain stopped roads. This is to be used for opening up areas to public access in the South Waikato district. F. Financial contributions: To manage financial contributions levied from the development of subdivisions until this funding is used for the development of related activities. G. National waste levy: Manage the funds received from government relating to the national waste levy levied. H. Forestry/Airport: This reserve is used to manage the funds received from the sale of the Amisfield trees, and future expenditure required for the airport. I. Asset replacement reserves: These accumulate funds from rates and are used for the future capital funding for the replacement of assets. Each major activity group e.g. water, roading, waste water, storm water, solid waste, has their own asset replacement reserve so that the funds from each can be applied to the appropriate activity s capital expenditure. J. Targeted rate reserves: These reserves are used to manage the surpluses and deficits of specific targeted activities such as water, stormwater, wastewater and halls that arise when more or less rates revenue is collected to fund the annual expenditure of that activity. This ensures that rates collected from a certain group of targeted rate payers can only be used for the benefit of that group. Page 181 of 206

182 Significance and Engagement Policy Page 182 of 206