Part A: LTP , Page A-1

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1 Part A: LTP 21525, Page A1

2 Table of contents Part A: LTP 21525, Page A2 Council priorities and services... A3 Māori Participation Policy... A73 1year Financial Strategy A77 3year Infrastructure Strategy... A95 Forecast financial information... A112 Significance and Engagement Policy (summary)... A194

3 Part A: LTP 21525, Page A3 Council priorities and services

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5 Part A: LTP 21525, Page A5 Council priorities and services LTP Contents Foreword 3 LongTerm Plan purpose and direction 5 What we will deliver 9 Canterbury Water Management Strategy 1 Transport, greater Christchurch rebuild and urban development 18 Regional leadership 26 Air quality 33 Biodiversity and biosecurity 39 Hazards, risks and safety 47 Planning, consents and compliance 56 What we jointly deliver 63 Civil Defence Emergency Management Group 63 How we deliver 65 2

6 Part A: LTP 21525, Page A6 Council priorities and services LTP Foreword By the Chair, Dame Margaret Bazley ONZ, DNZM, and Chief Executive Bill Bayfield An informed debate Welcome to our LongTerm Plan for which also constitutes our Annual Plan for 215/16. Our thanks to everyone who took the time to consider the Consultation Document outlining our proposed plans for , and who conveyed their thoughts in an informed and intelligent manner during the formal submission period. We were very pleased to receive a total of 375 submissions from the public on all aspects of the Plan the greatest number of submitters since the 21/11 earthquakes. Public hearings were held in Christchurch and Timaru in midmay 215, giving people the opportunity to speak to their submissions. All the submissions were compiled as a report to (the Council), and the Commissioners and staff carefully considered them when making their final recommendations and decisions. The final version of the LongTerm Plan now contains the Council s decisions from consultation. As a result, some changes have been made to our draft Plan. Importantly, these changes have not resulted in a significant change to the rate increases originally proposed. General rates that apply to all properties across Canterbury have increased by.51%. Targeted rates that focus on individual activities and specific communities have increased by an average of 7.38%. The Regional Council is responsible for a range of management activities that affect different communities in different ways within New Zealand s largest region. Increasingly, through the collaborative process that the Council is now promoting, communities are determining the work of the Council in the areas of resource management, which most affect them. As a result, it is appropriate that targeted rates, rather than general rates, be used to fund such activities. These new targeted rates include Christchurch, Timaru, Ashburton, Rangiora, Kaiapoi, Waimate and Geraldine as they endeavour to improve their air quality. Following submissions from Little River residents, the Commissioners agreed to set up a targeted rate for activities that will benefit that local area. The Canterbury Water Management Strategy, now widely implemented by zone committees throughout Canterbury, requires a 11.84% increase in targeted rates across the region in order to press on with better water management. Public transport in Christchurch is another example, with the targeted rate increasing by 3.37% as steps are taken to increase usage by improving the service. Existing reserves will be employed to meet some of the activities and services people sought in their submissions, such as putting more funding into pest control to supplement work already underway, and reducing the debt level on the completed Wainono Box infrastructure work. One change has seen the Council continuing to contribute to the funding of OSPRI s programme to eliminate bovine TB, but halving its contribution to $462,5 and indicating that this is the final year it would collect OSPRI s revenue for this purpose. In postearthquake Canterbury, the priorities influencing our seven portfolios of work remain: the Canterbury Water Management Strategy supporting the earthquake recovery and rebuild our Tuia relationship with Ngāi Tahu. 3

7 Part A: LTP 21525, Page A7 Council priorities and services LTP Under our portfolios of work are detailed priorities, programmes, levels of service and targets. These comprise our blueprint of work and result in measurable outcomes. The new Plan is effective from 1 July 215. As a LongTerm Plan it covers the next ten years, with more focus on the first three years. We intend that it provide a robust framework to allow significant progress in sustainable resource management for many years to come. The Commissioners and the Council s staff look forward to working constructively with the territorial authorities and health boards, with urban and rural industries, with Ngāi Tahu and the communities of Canterbury, to ensure the best possible outcomes for our very special region and its people. Thank you once again for helping to set s priorities over the next ten years. Dame Margaret Bazley ONZ, DNZM, Hon DLit Chair of the Commissioners Bill Bayfield Chief Executive 4

8 Part A: LTP 21525, Page A8 Council priorities and services LTP LongTerm Plan purpose and direction A regional perspective is the regional council for the Canterbury region, which extends from north of Kaikōura to the Waitaki, south of Timaru, and from Banks Peninsula to Aoraki Mount Cook. Canterbury is New Zealand s largest region, with over 45,km 2 of diverse landscapes and ecosystems, including alpine and high country tussock lands, major lakes and river systems, and some of New Zealand s most productive farmlands. The population of Canterbury is 56, (213 census, subnational population projection), with the majority living in greater Christchurch. Our role and activities The purposes of New Zealand s regional and local authorities are determined by legislation and central government policy, and also by the needs, preferences, priorities and expectations of the communities we serve. The Council works closely with communities, mana whenua, businesses, industry sectors and groups throughout Canterbury, taking a regional perspective on the management of natural resources air, water, land and our region s unique biodiversity. We also have responsibility for a diverse range of other functions. Some of these roles are focused on communities practical needs, including providing public transport and regional land transport planning, and our work supporting the earthquake recovery and rebuild in greater Christchurch. Other areas of work are focused on the safety for our communities, including risk management (flooding, coastal erosion and other natural hazards), ensuring safety on our waterways and in our ports and harbours, and limiting the negative impacts of pest species (such as Chilean needle grass or wilding conifers). s work and activities are organised into seven portfolios: 1. Air quality 2. Biodiversity and biosecurity 3. Canterbury Water Management Strategy 4. Transport, greater Christchurch rebuild and urban development 5. Hazards, risks and safety 6. Planning, consents and compliance 7. Regional leadership. Within these portfolios is a range of programmes of work, as outlined in this document. Importantly s Commissioners have given particular emphasis to three overarching priorities, which are signalled in our Strategic Directions documents and other organisational frameworks. These priorities influence activities under all of the seven portfolios: 1. Canterbury Water Management Strategy 2. Supporting the earthquake recovery and rebuild 3. Our Tuia relationship with Ngāi Tahu (see below). A number of roles and functions are closely interconnected across the portfolio and programme structures. For example, policy and planning work cuts across all our activities and includes: Meeting statutory obligations and the requirements of formal plans and policies established under the Resource Management Act 1991 (RMA) and the Local Government Act 22 these include meeting the requirements of National Policy Statements and National Environmental Standards, and preparing plans for Canterbury such as the Air Plan, the Land and Water Regional Plan and the Regional Land Transport Strategy. Working to achieve the priorities established by our Commissioners notably the Canterbury Water Management Strategy, our Tuia relationship with Ngāi Tahu, and our support for the earthquake recovery process. 5

9 Part A: LTP 21525, Page A9 Council priorities and services LTP Responding to central government initiatives for example, the Ministerial requests to prepare the Land Use Recovery Plan and Lyttelton Port Recovery Plan, and the requirements to provide information to the Ministry for the Environment for the National Monitoring System for the RMA. Working with communities, Ngāi Tahu, sectors and groups to achieve broadlevel environmental and economic development outcomes. We also conduct a range of operational work flowing from or related to our policy and planning roles, which includes: resource consenting compliance monitoring hazard management and flood protection works information and systems for navigation safety managing our regional parks environmental monitoring and reporting. We work closely with a number of agencies and organisations including the district councils and city council within our region, the New Zealand Transport Agency, the district health boards, Canterbury Civil Defence Emergency Management Group, Maritime New Zealand and other government agencies. Our focus on the Canterbury region makes our practical links with other councils an ongoing priority. Achieving many of the desired results for the sustainability of Canterbury s natural resources is linked to the services delivered by local councils (such as roads, potable water supply, and waste collection and treatment). Working closely with others is critical to ensure we have a regional perspective and to align policy and activities for maximum efficiency and consistency. Guiding our work and decisionmaking the LongTerm Plan The LongTerm Plan is a requirement under the Local Government Act 22. The process of developing the LongTerm Plan included consultation with communities around a Consultation Document and associated information, consideration of the feedback from the community on the Council's proposals, and the approval of this final document in June 215. This LongTerm Plan outlines what Environment Canterbury will do for the region and its communities, and ensures that our work and programmes reflect and support Canterbury s priorities. It provides a statement of our commitment, and clarity as to what we will deliver and how we will work with and for the region. s approach to developing and considering the LongTerm Plan has been determined within the formal frameworks established by legislation. The (Temporary Commissioners and Improved Water Management) Act 21 sets out our current governance arrangements and associated direction. The Local Government Act 22 (section 93(6)) defines the purpose of a council s longterm plan as to: describe the activities of the local authority describe the community outcomes of the local authority s district or region provide integrated decisionmaking and coordination of the resources of the local authority provide a longterm focus for the decisions and activities of the local authority provide a basis for accountability of the local authority to the community. In preparing the LongTerm Plan, has: taken a longterm perspective ensured our planning and decisions around our proposals have occurred in a structured way reflected on the needs of the region s communities exercised prudence in meeting requirements and community needs via sustainable financial management continued to improve the effectiveness and efficiency of our service delivered to the community met our legal and contractual requirements. The process of developing the priorities and proposed services in the LongTerm Plan embodies the relationships that the Commissioners and Council staff have with many organisations and groups, and our understanding of the views, concerns and priorities of our communities. 6

10 Part A: LTP 21525, Page A1 Council priorities and services LTP Working with our communities Over the last four years, has, with the leadership and support of our Commissioners, made every effort where possible to work in collaborative partnerships with our communities, Ngāi Tahu and sector groups. The Canterbury Water Management Strategy, driven by the communitybased zone committees, is the primary example of how much more can be achieved by working together. Outcomes include stronger relationships and trust, robust and stimulating debates, informationsharing, and agreement on priorities and targets for water management in each zone. Another example is the focus in our resource consenting processes on providing preapplication advice to help applicants avoid confusion and delays. will continue to seek and maximise opportunities to work collaboratively for shared goals and outcomes. Strategic contexts To support a strategic longterm approach to the development of the LongTerm Plan, has followed a process where our activities and functions were assessed against three significant emerging trends that will influence the region s future. The proposed priorities and activities in the LongTerm Plan reflect our assessment of the implications of these drivers of change over the tenyear timeframe to 225: population change and the shifting demographic spread across Canterbury s centres and rural areas the region s economy, including urban rural interconnections, transport and infrastructure changing weather patterns and climate, and the need to be prepared for more volatile and extreme conditions. Assumptions and uncertainty s exploration of the drivers of change and their potential influence on our work and our region has highlighted a number of assumptions that underpin this kind of strategic forecasting and evaluation. Often these assumptions reflect a level of uncertainty regarding the future over the term of the LongTerm Plan, and what may result given various scenarios. Among the key assumptions that has made in the development of the LongTerm Plan are: Tuia no further major disaster events impact on Canterbury (earthquake, flood, biosecurity incursion) known trends (population change, variable weather and climate, technological innovation) have increasingly significant impacts New Zealand and the Canterbury region enjoy continuity of government systems that provide consistent legislative and policy frameworks the national and regional economies are relatively stable, with exports of our primary products marketed as sustainable through increased efficiencies and improved production methods. The Local Government Act provides principles and requirements for local authorities that are intended to facilitate participation by Māori in local authority decisionmaking processes. While the Act sets out provisions relating to all Māori (as reflected in the Environment Canterbury Māori Participation Policy), it is recognised that, within the Canterbury region, Ngāi Tahu are the tangata whenua. Above and beyond the statutory obligations (Local Government Act, Resource Management Act, and Ngāi Tahu Claims Settlement Act 1998), has committed with Ngāi Tahu leadership to engage together in a constructive and progressive relationship. This commitment is based on the recognition that the relationship of Ngāi Tahu with their ancestral land within Canterbury is inextricably affected by the powers and functions of. 's relationship with Ngāi Tahu is supported by a joint work programme called Tuia, which translates as working together shoulder to shoulder. It has been affirmed as a top priority for. Tuia is a practical relationship between, the ten Ngāi Tahu Papatipu Rūnanga in Canterbury and the tribal authority Te Rūnanga o Ngāi Tahu. The aims of Tuia include achieving sustainable environmental outcomes, perpetuating and supporting customary practices, being responsive to mana whenua needs and providing for effective iwi participation. In progressing Tuia, 7

11 Part A: LTP 21525, Page A11 Council priorities and services LTP and Ngāi Tahu are committed to working together in a way that promotes mutual respect, transparency, trust and good faith for the benefit of Ngāi Tahu, other Māori and the wider community. is committed to a multitiered framework of ongoing engagement with Ngāi Tahu to support the Tuia relationship, as well as work programmes to support staff capability and rūnanga capacity. is also a partner with Ngāi Tahu, along with Selwyn District Council, in the 214 Te Waihora CoGovernance Agreement for the catchment of Te Waihora/Lake Ellesmere. This establishes a shared stewardship commitment to sustainable management and the rejuvenation of the lake and catchment. The Whakaora Te Waihora restoration project is a key pillar of this agreement. The Canterbury Water Management Strategy also recognises the mana whenua of Ngāi Tahu throughout the region and therefore involves them in all aspects of strategy implementation. Other strategies A number of supporting strategies and policies are associated with the LongTerm Plan, and are briefly described below. They can be accessed at A tenyear Financial Strategy has been completed to assist the Council to deliver the priorities and services proposed in this draft LongTerm Plan. The Financial Strategy will help ensure the expenditure associated with the proposed services can be funded over the tenyear term of the LongTerm Plan, and provides transparency about how this will be achieved. Other policies, such as the Revenue and Financing Policy, give further detail on who pays and how across the regional community. A 3year Infrastructure Strategy has been completed to provide a concise view of: the infrastructure managed by present levels of service and important issues for this infrastructure future service needs, the associated work and financial requirements. The Significance and Engagement Policy 214 was adopted by the Council on 27 November 214, as required under the revised Local Government Act 22. It sets out s general approach to determining the significance of an issue or proposal, the criteria and procedures to be followed in assessing significance, and the processes and methods for engagement with communities and interested and affected groups on matters of significance to them. 8

12 Part A: LTP 21525, Page A12 Council priorities and services LTP What we will deliver 9

13 Part A: LTP 21525, Page A13 Council priorities and services LTP Canterbury Water Management Strategy Portfolio statement There is agreement across Canterbury that having communities working collaboratively is the best way to address the water management issues facing the region. We are committed to making parallel progress on each of ten target areas: ecosystem health/biodiversity, natural character of braided rivers, kaitiakitanga, drinking water, recreational and amenity opportunities, wateruse efficiency, irrigated land area, energy security and efficiency, regional and national economies and environmental limits. The programmes associated with this portfolio are: 1. Canterbury Water Management Strategy (CWMS) committee facilitation 2. Environmental monitoring and progress reporting 3. Resource Management Act water framework 4. Zone Implementation Programme delivery 5. Regional water infrastructure. The 'Levels of service and targets' section describes how contributes to the target areas of the CWMS and the headline measures the Council will use to help determine progress. 1

14 Part A: LTP 21525, Page A14 Council priorities and services LTP Factors influencing direction Strategic factors have been considered in the process of determining direction and priorities of work under this portfolio. There is agreement among the region s mayors, Ngāi Tahu, and many other stakeholders that an approach in which communities work collaboratively is the only way to meet the: aspiration for a resilient and growing economy through irrigated agriculture commitment to improved environmental outcomes. and the ten district and city councils have established ten zone committees which look at how to achieve the ten CWMS targets in their respective zones, and one regional committee. The zone committee recommendations inform 's work programmes and the regulatory framework (primarily through Resource Management Act plans) for water and land management. The zone committees prepare Zone Implementation Programmes a set of recommended actions they would like to see progressed in their zone. There are over 9 recommendations across the ten zones that seek action from more than 5 parties; is one of those parties. wants to take a more active role, at least over the next three years, in getting the actions moving faster, and to take a greater leadership role in galvanising action through joint work programmes with others. We see an increasing set of expectations for actions to improve water quality and water use efficiency placed on ourselves, district and city councils, the primary sector, particularly irrigation schemes, and all industries. Growing awareness of and community discussions about water Communities across the region who have participated in CWMS discussions now have ownership of the solutions and want to influence Council priorities. There is increased public attention to delivery of Zone Implementation Programme outcomes and CWMS targets. We need to be able to demonstrate what is actually changing, particularly in relation to improved water quality. There is more public interest in plantings, environmental infrastructure, and citizen science. Local councils are continuing to upgrade and invest in drinking water supply and treatment, stormwater treatment, reduction in inputs to the stormwater system, and wastewater treatment. Direction from central government Central government has indicated support for a collaborative approach to water management an approach that was endorsed by the Land and Water Forum, a New Zealandwide forum of stakeholder, industry, community and iwi representatives. In 211, Government issued the National Policy Statement on Freshwater Management and required councils to set and then meet outcomes for water quality and quantity (environmental limits) and to involve iwi. A revised National Policy Statement on Freshwater Management was issued in 214. The overall intent of the National Policy Statement remains unchanged from 211. It supports and affirms the collaborative community processes of the CWMS and requires the overall freshwater quality within a region to be maintained or improved. There is a new overarching statement about the importance of fresh water and Te Mana o te Wai. The amendments introduced two compulsory national values ecosystem health and human health and numeric measures for these, including national bottom lines. The introduction of environmental limits The CWMS has always required the introduction of environmental limits for river flows and for water quality. The requirement to set limits is now echoed in the National Policy Statement on Freshwater Management a nationwide change. The introduction of environmental limits will mean changes particularly for farmers, and will restrict the ability to intensify land use. Land use change must now be accompanied by a reduction in discharges of nutrients and sediment from a catchment. The investment made by farmers in responding to the challenge is an important part of delivering the CWMS, and we want to ensure farmers have access to the best advice. As farming within environmental limits becomes a reality, we need to build capacity and capability in Canterbury for advice on catchment and farm systems solutions that improve water quality. Similarly investment in improved stormwater management is critical to achieving the CWMS targets in our urban streams. 11

15 Part A: LTP 21525, Page A15 Council priorities and services LTP Increased investment in water use efficiency and environmental management by the agricultural sector There is increased investment by the private sector in water infrastructure. This investment in water storage and in efficiency improvements in the irrigation sector is likely to continue over the ten years of this LongTerm Plan. There is increased use of and access to technology onfarm, enabling more precision control of farm practices, easier access to management information, and more potential to communicate progress on environmental responses by the agricultural sectors. 12

16 Part A: LTP 21525, Page A16 Council priorities and services LTP Work priorities and direction The proposed direction and priorities for the Council's work in this portfolio include the following: We will have continued emphasis on: Facilitating the CWMS zone and regional committees. Water quality, water quantity and ecosystem health monitoring and reporting on water use and CWMS targets. Working through the zone committees to determine environmental limits and progressively revising the Land and Water Regional Plan to include these limits. In 215/16 we will have formal planning processes underway for Hinds, south coastal Canterbury, Waitaki catchment, Wairewa catchment and the introduction of quantified good management practice for farming activities. Supporting actions by communities to reduce inputs to stormwater systems and encouraging improved stormwater infrastructure. Facilitating regional water infrastructure that delivers on multiple CWMS targets and is integrated across Canterbury, including scoping and costing proposals for environmental infrastructure such as the proposed wetland/retention basin at the head of Wairewa. Now that the zone committees have prepared their Zone Implementation Programmes, and the process of setting environmental limits is well underway, wants to ensure that there is increased effort on actions such as plantings, improved farm management practices and improved stormwater management. Over the first two years of the LongTerm Plan, we will strengthen the ability to deliver on the CWMS targets by: Accelerating the response to delivering the Zone Implementation Programmes by: Increasing resources that raise awareness of the expectations on individuals for improved performance. Increasing support for delivery of farm plans and nutrient budgets these are the delivery mechanism in rural Canterbury for the environmental limits set through the RMA plans. Developing joint work programmes that will result in greater clarity, commitment and actions from ourselves and other parties. Priority work programmes are with Canterbury District Health Board, the Canterbury dairy sector, Fish & Game North Canterbury, Fish & Game Central South Island, and Irrigation New Zealand. Carrying out pilot work on managed aquifer recharge trials in the Hinds and Selwyn Waihora area. In subsequent annual plans, we will consider supporting other environmental infrastructure projects recommended by the CWMS zone and regional committees. We are proposing that the recharge trials are funded by a targeted rate on the district in which they occur Ashburton District for the Hinds pilot and Selwyn District for the Selwyn Waihora pilot. Increasing our ability to track progress on farm plans and improved land practice (both urban and rural). 13

17 Part A: LTP 21525, Page A17 Council priorities and services LTP Who we work with works with a range of key partners to achieve results across the programmes in this portfolio. Programme CWMS facilitation Environmental monitoring and progress reporting Resource Management Act water framework Zone Implementation Programme delivery* Regional water infrastructure Key partners we work with Committee members, district and city councils, Ngāi Tahu, and all stakeholder and interest groups Central government, Crown Research Institutes, and regional councils Zone committees, communities, district and city councils, Ngāi Tahu and all stakeholder and interest groups Over 15 agencies are listed in Zone Implementation Programmes; of particular importance are district and city councils, Ngāi Tahu, landowners, community/catchment groups, stakeholder representative groups (primary sector and environmental sectors), developers and consultants Ministry for Primary Industries, energy companies irrigation schemes, development interests, district and city councils, Ngāi Tahu * Combines existing programmes of land use and water quality, water use efficiency and urban waterways, and has strong links to ecosystem health and biodiversity programmes. Levels of service and targets There are five programmes (or result areas) that contribute to this portfolio. The tables below describe the work streams for each programme via levels of service statements, measures of success and associated targets. This information reflects the strategic direction and resource allocation outlined earlier in this Plan. The measures and targets set the basis for Council annual reporting of performance to the community for the next three years. Programme 1 CWMS committee facilitation Collaborate with communities, through the CWMS regional and zone committees, to find solutions that provide for environmental restoration, improved water quality, improved water use efficiency and land management practices (urban and rural), and infrastructure for reliable water supply. Levels of service In partnership with Canterbury s district and city councils and Ngāi Tahu, facilitate the CWMS zone and regional committees to provide ongoing and improved community input to water management decisions. Measures Report received from each committee on its progress with implementation of its Zone Implementation Programme and the ten target areas. Annual update from the CWMS regional committee. Targets 11 reports that demonstrate progress on: environmental restoration improved water quality improved water use efficiency and land management infrastructure for reliable water supply. Direction Continued local say on water and land management. Programme 2 Environmental monitoring and progress reporting Provide data and information that track progress, enable communities to set priorities, and measure how they are making a difference. 14

18 Part A: LTP 21525, Page A18 Council priorities and services LTP Levels of service Gather and make available information on water quantity, water quality, ecosystem health, soils and progress towards the CWMS targets. Measures Targets Direction Number of sites Frequency of measurement Availability of information Rainfall River flows Continuous 15 minutes Hourly information available twice daily on website Twice daily on the website To make more information available electronically in real time. River/stream water quality Monthly Quarterly Annual summary available on website Lake water quality 24 (high country) 11 (low land) Monthly over summer Monthly all year Annual summary available on website Marine water quality 44 Quarterly Annual summary available on website Estuary water quality 18 Monthly Annual summary available on website Ecosystem health 24 Annual survey Annual summary available on website Groundwater levels Monthly 15 minutes Quarterly data updates on the website Groundwater quality Annually Quarterly Monthly Annual report available on website Monthly data update on the website Land Soil quality 35 sites Soil quantity 25 paddocks High country land cover 8 9 years ten years Report every two years available on website Recreational swimming monitoring 52 rivers and lakes 45 beaches Weekly over summer Annual report on website by June each year Water use All consents over 5l/s Recorded daily by consent holders Annual water use report on website by September each year Measures Targets Direction Report on progress towards CWMS targets is complete Targets report published every second year (215/216). To make more information available electronically in real time. Programme 3 Resource Management Act water framework Enable solutions by providing an innovative/robust statutory framework that also prevents undermining of solutions and supports the approach of the CWMS. 15

19 Part A: LTP 21525, Page A19 Council priorities and services LTP Levels of service Work with the zone committees to lead a community process to collaboratively establish environmental limits for water quality and water quantity in Canterbury. Measures Targets Direction Zone/catchment Date A schedule of Resource Management Act plans or variations is notified that reflects the community recommendations for environmental limits. Waitaki Lake Forsyth/Wairewa Orari Opihi Pareora Waimakariri 214/ /216 Continued implementation of the National Policy Statement on Freshwater Management (214) and its progressive implementation by 225. Hurunui Waiau 218/219 Kaikōura Rakaia/Ashburton groundwater 219/22 Christchurch West Melton 22/221 Programme 4 Zone Implementation Programme delivery Partner on actions for environmental restoration, improved water quality, improved water use efficiency and land management practices, and infrastructure for reliable water supply. Levels of service In partnership with other parties, implement the recommendations in the Zone Implementation and Regional Programmes. Measures Annual zone work programmes agreed by zone committees, made available and completed. Joint work programmes in place with other agencies/sectors. Programme 5 Regional water infrastructure Targets Four zone work programmes available with progress reporting on the website by June 216. Ten zone work programmes available with progress reporting on the website by June 217. Joint work programmes in 215/216 with Canterbury District Health Board, the dairy sector, Fish & Game New Zealand, and Irrigation New Zealand. Direction Increased ownership by land users, industry groups, community groups and agencies of actions in response to the Zone Implementation Programmes. Partner on actions for environmental restoration, improved water quality, improved water use efficiency and land management practices, and infrastructure for reliable water supply. Levels of service Facilitate an integrated approach to development of water infrastructure in Canterbury that delivers on all the CWMS targets. Measures An annual schedule of work that influences irrigation development in the region is agreed with the CWMS Regional Committee. Targets A regional infrastructure work programme is available with quarterly progress reporting on the website. Direction Ongoing ownership by the irrigation development sector of all CWMS targets. 16

20 Part A: LTP 21525, Page A2 Council priorities and services LTP Financial summary Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 122 Targeted rates 21,187 23,695 24,281 25,775 26,293 26,997 28,46 28,211 28,944 29,772 3,7 Grants User pays/other Total income 22,21 23,937 24,298 25,79 26,312 27,16 28,67 28,233 28,976 29,84 3,732 Operating expenditure 22,551 23,967 24,281 25,775 26,293 26,997 28,46 28,211 28,944 29,772 3,7 Operating surplus/(deficit) (35) (3)

21 Part A: LTP 21525, Page A21 Council priorities and services LTP Transport, greater Christchurch rebuild and urban development Portfolio statement will deliver an efficient and effective public transport system throughout the region, and a regional land transport programme. This portfolio will also facilitate earthquake recovery in greater Christchurch through a range of recovery plans and programmes. The programmes associated with this portfolio include: 1. Public transport 2. Regional land transport 3. Greater Christchurch rebuild and urban development. The 'Levels of service and targets' section describes the objectives sought for each of these work streams and the headline measures the Council will use to help determine progress. 18

22 Part A: LTP 21525, Page A22 Council priorities and services LTP Factors influencing direction Strategic factors have been considered in the process of determining direction and priorities of work under this portfolio. The following are some of the key factors that have influenced the services provided to date: Public transport Public transport plays an important role in the operation of our urban centres, particularly greater Christchurch and Timaru. For the life of this plan we will be focused on improving our Metro service in these centres, specifically through the implementation of the new Metro service in greater Christchurch, known as 'hubs and spokes'. We will also advocate for improvements to and further delivery of infrastructure (bus stops, shelters and priority lanes) to support the Metro network. (City and district councils are responsible for the provision of public transport infrastructure.) It is likely that during the course of this LongTerm Plan that we will review our Metro Strategy again, as a result of the transition from recovery into existing strategic frameworks. We are committed to supporting the establishment and continued operation of the various Community Vehicle Trusts where the provision of public transport is not a viable option. Finally we are committed to the continued provision of a Total Mobility service in urban centres for members of our community who are mobility impaired. Regional land transport We will continue to prepare the Regional Land Transport and Regional Public Transport Plans every three years. The Regional Land Transport Plan sets out the proposed roading projects for the region, and forms the basis on which the New Zealand Transport Agency provides funding for transport in our region. The Regional Public Transport Plan sets out how we propose to operate our public transport network in greater Christchurch and Timaru. The development and delivery of these plans is required by the Land Transport Act 23. We also administer, on behalf of the region, the Regional Transport Committee and its various working groups. This is the basis of our core business in land transport. The plans mentioned above direct and will help to shape the transport network, influencing the movement of freight and people in our region. Greater Christchurch rebuild and urban development Recovery has been a major focus of this portfolio. Various ministerial directions have required us to prepare recovery plans to assist with the rebuild of greater Christchurch and these plans will continue to shape the work of this portfolio for at least the first three years of this LongTerm Plan. Specifically, we expect the continued implementation of the Land Use Recovery Plan, the Natural Environment Recovery Programme, the Central Christchurch Recovery Plan and An Accessible City to all play a part in our daytoday business. As we make progress in this work, we will move to transitional planning processes that will reestablish preearthquake approaches to our planning and delivery documents. For example, we will be facilitating the implementation of the Natural Environment Recovery Programme in relation to stormwater and water quality as part of the CWMS portfolio. We also anticipate that the Lyttelton Port Recovery Plan will be completed and adopted in due course. This will facilitate a more streamlined consenting process for the Port rebuild and enhancement. Once the plan changes have occurred, 's consents processing team will take the main lead on this work, as and when the Port undertakes its rebuild and enhancement works. Within the Lyttelton Port Recovery Plan there is reference to the development of an integrated management plan for Whakaraupō/Lyttelton Harbour. There is a strong commitment to this approach, with the parties presently exploring, and yet to agree, funding arrangements. 19

23 Part A: LTP 21525, Page A23 Council priorities and services LTP As we transition the various recovery plans and strategies back into existing strategic frameworks, we will need to review, in conjunction with our strategic partners, the Urban Development Strategy. Information to support this portfolio's work As part of our work to support the programmes in this portfolio and throughout the life of this LongTerm Plan, we will be looking closely at the impacts of continued land use change across our region, both urban and rural. This will ensure that our land use and transport planning meets the needs of our everchanging region, supports growth and supports Canterbury's territorial authorities in the development and delivery of their district and city plans. We will also look at the impact that the changing demographics of our rural and urban populations have and will have on land use infrastructure planning and our transport and public transport networks. Looking out towards the end of the life of this LongTerm Plan, we will begin to undertake work in understanding the economic impacts of an increase in fuel prices and efficient/alternative technology both for freight movement and for Canterbury's public transport operations. 2

24 Part A: LTP 21525, Page A24 Council priorities and services LTP Work priorities and direction The proposed direction and priorities for the Council's work in this portfolio include the following: We will have a continued emphasis on: the development of and support for the implementation of the Regional Land Transport Plan and Regional Public Transport Plan collaboration with key statutory partners in greater Christchurch on rebuild and urban development matters giving effect to the Natural Environment Recovery Programme, Land Use Recovery Plan, Lyttelton Port Recovery Plan, Central Christchurch Recovery Plan and An Accessible City supporting the region's Mayoral Forum and its work programme relating to integrated regional transport planning and infrastructure (roads, inland and coastal ports, airports, rail), along with a review of public transport governance in Canterbury. 's role in the rebuild of greater Christchurch will start to reduce over the next three years. We will increase our visibility at a strategic leadership level in this portfolio through: promoting alternative transport modes to the car advocating for research into innovative and new technologies for public transport and urban growth management using uptodate data advocating for resilience improvements to the regional land transport network crossagency and industry solutions to regional transport matters. 21

25 Part A: LTP 21525, Page A25 Council priorities and services LTP Who we work with works with a range of key partners to achieve results across the programmes in this portfolio. Programmes Public transport Regional land transport Greater Christchurch rebuild and urban development Key partners we work with Canterbury Earthquake Recovery Authority New Zealand Transport Agency central government agencies territorial authorities Ngāi Tahu transport and development industry 22

26 Part A: LTP 21525, Page A26 Council priorities and services LTP Levels of service and targets There are three programmes (or result areas) that contribute to this portfolio. The tables below describe the work streams for each programme via levels of service statements, measures of success and associated targets. This information reflects the strategic direction and resource allocation outlined earlier in this Plan. The measures and targets set the basis for Council annual reporting of performance to the community for the next three years. Programme 1 Public transport Levels of service Deliver quality public transport services that meet the needs of the community and result in increased patronage. Measures Provide quality public transport services that take people where they want to go. The number of passenger boardings per year in greater Christchurch and Timaru. Proportion of total trips made by public transport in greater Christchurch. Proportion of costs covered by passenger fares. Provide Total Mobility scheme for transportdisadvantaged people. Number of communities who receive support from Environment Canterbury to establish Community Vehicle Trusts where conventional public transport services are not feasible. Targets 95% of passengers are satisfied or better with the overall service. 2 million trips by 22 and 35 million trips by 23. 3% of total trips by 22 and 5% of total trips by 23. 5% cost recovery in Canterbury in 22. Less than 5% of registered Total Mobility passengers make a complaint to about the service they received. 1% all communities who approach regarding Vehicle Trusts are offered support. Programme 2 Regional land transport Levels of service Through the Regional Transport Committee: produce, implement and review a Regional Land Transport Plan provide strategic leadership for integrated transport planning across the region. Measures Regional Land Transport Plans are produced every three years. Provision of administrative support to the Regional Transport Committee and associated working groups. Advocate for integrated transport solutions regionally. Targets Deliver the Regional Land Transport Plans within set timeframes. The Regional Transport Committee and associated working groups receive support at regular meetings. Lead the development and implementation of a joint work programme for integrated regional transport. Programme 3 Greater Christchurch rebuild and urban development Support earthquake recovery and rebuild in greater Christchurch through the effective development, implementation and transitioning of recovery plans and programmes. Levels of service Implementation of the Natural Environment Recovery Programme Facilitate the implementation of the Natural Environment Recovery Programme by: 23

27 Part A: LTP 21525, Page A27 Council priorities and services LTP supporting our strategic partners in the facilitation of the Programme transitioning (post216) into existing strategic frameworks as relevant implementing Natural Environment Recovery Programme projects where is the lead agency, and supporting partners to implement other actions in the Programme. Measures Commissioners and Urban Development Strategy Implementation Committee are regularly updated. Facilitate the implementation of the Natural Environment Recovery Programme. Participate in future use of residential red zone processes. Targets Quarterly reports are submitted to Commissioners and Urban Development Strategy Implementation Committee on Natural Environment Recovery Programme implementation. Identify Natural Environment Recovery Programme projects that require overview in greater Christchurch post216. Timely contribution to the future use of the red zone technical, working and steering groups as and when required. Implementation of the Land Use Recovery Plan Implement the Land Use Recovery Plan by: implementing s actions and supporting partners to implement their actions transitioning (post216) into existing strategic frameworks as relevant. Measures Complete relevant Land Use Recovery Plan actions. Monitoring data collated and presented to Canterbury Earthquake Recovery Authority as required by the Land Use Recovery Plan monitoring plan and linking to Regional Policy Statement monitoring. Review the Land Use Recovery Plan. Targets Relevant Land Use Recovery Plan actions are completed. Land Use Recovery Plan monitoring report is completed and published by 3 September 215. By 3 September 215. Lyttelton Port recovery complete a draft Lyttelton Port Recovery Plan and, once approved by the Minister for Canterbury Earthquake Recovery, monitor the Plan and associated resource consents post216, transition the Plan into existing strategic frameworks as relevant. Measures The draft Lyttelton Port Recovery Plan is completed and presented to the Minister. Implement the relevant actions arising from the Lyttelton Port Recovery Plan. Targets Timelines for the Lyttelton Port Recovery Plan process are met. An integrated management plan for Whakaraupō/Lyttelton Harbour is under development with key stakeholders and partners. 24

28 Part A: LTP 21525, Page A28 Council priorities and services LTP Financial summary Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 893 1, , ,21 Targeted rates 18,566 18,79 19,654 2,225 2,861 2,527 21,673 22,242 21,841 22,411 22,79 Grants 23,193 25,474 26,952 25,931 26,693 26,942 31,386 28,79 28,861 29,83 3,783 User pays/other 21,274 22,417 24,546 25,742 27,39 29,766 31,243 32,795 36,182 37,965 39,836 Total income 63,926 67,774 72,129 72,98 75,464 78,128 85,219 84,685 87,847 91,17 94,43 Operating expenditure 64,824 68,747 7,98 73,649 75,91 78,364 82,331 85,366 88,528 91,851 94,875 Operating surplus/(deficit) (898) (973) 1,148 (741) (437) (235) 2,888 (682) (681) (681) (446) 25

29 Part A: LTP 21525, Page A29 Council priorities and services LTP Regional leadership Portfolio statement Regional leadership is grounded in enduring relationships with Ngāi Tahu, district and city councils, industry and community organisations. Interorganisational agreements and organisational expectations for the delivery of these agreements are focused around supporting sustainable development and building the Canterbury region. The programmes associated with this portfolio include: 1. Governance services 2. Regional policy, data, strategy and community engagement 3. Ngāi Tahu engagement. The 'Levels of service and targets' section describes the objectives sought for each of these work streams and the headline measures the Council will use to help determine progress. 26

30 Part A: LTP 21525, Page A3 Council priorities and services LTP Factors influencing direction Strategic factors have been considered in the process of determining the directions and priorities of work under this portfolio. The following are key factors that have influenced the services provided to date: The Local Government Act 22 provides the powers, duties and functions that enable to lead on those matters mandated in law and by the regional community. has agreements with key agencies (Ministers), Ngāi Tahu, territorial authorities and other key groups. To provide security for our partners and the region, all collective governance decisions and subsequent agreements are honoured, and our actions match our words. has a strong commitment to and focus on continuing to develop and grow an enduring relationship with Ngāi Tahu. Effective governance relationships are developed, maintained and strengthened with farmers, industry, environmental nongovernment organisations and communitybased organisations across the Canterbury region. Looking ahead (over the next three years), additional factors that have been considered include: Providing leadership for sustainable regional economic growth and continuing to do this in collaboration with key partners, sectors and groups to provide benefit for the Canterbury region as a whole. Continuing to work with territorial authorities in building their local Ngāi Tahu relationship so we have stronger understanding among all partners of values and expectations. Participating in the leadership of Canterbury and local government by collaboratively working with partners on key issues for the region and ensuring that the region speaks with one voice. In doing so, we recognise the importance of our capacity to assist in supporting leadership forums. Sustaining the contract delivery for Chatham Islands Council. Ensuring this portfolio is clearly seen as the home for organisational direction and strategies, and that it helps set the values and delivery we want in all our programmes and activities. Ensuring that this portfolio is recognised as a more strategic and regionally focused portfolio. We will continue to place importance on supporting leadership in decisionmaking through our organisational structure and capacity. Over the longer term (ten years), factors considered include the following: Regional opportunities continue to be identified, shaped and driven by the key governance arrangements within the region and ongoing relationships with both public and private sectors, environmental nongovernment organisations and communitybased organisations. will continue to facilitate regional economic development by ensuring that we continue to understand the impact our strategic thinking and policy direction have on the regional and local communities and private and public sectors. We will explore opportunities to work smarter, such as collective 3year infrastructure strategies that match public sector to private sector infrastructure objectives. This portfolio will work to ingrain our role of regional leadership internally, to ensure that as an organisation we understand the key role we play with our partners in the region and that we apply fullpicture thinking in all that we do. 27

31 Part A: LTP 21525, Page A31 Council priorities and services LTP Work priorities and direction The proposed direction and priorities for the Council's work in this portfolio include the following: Continuing at the same level, we will: set governance to governance agreements Mayoral Forum, Chief Executives Forum, Canterbury Regional Strategy and Policy Forum build the Ngāi Tahu relationship continue to integrate the Tuia programme across our organisation maintain interorganisational relationships relationships are strong and agreements in place and bedded in. We will focus on achieving productive conversations and strong and enduring relationships so no issue becomes an impediment to the work we do. Continuing at an increased level, we will: Seek crossagency and industry solutions to regional issues to continue to build on and also understand the wider benefits from CWMS (land management practices through to secondary support industry growth). Enable communities so that they have ownership of the option creation and the solutions put in place, and an ongoing ability to shape and influence our priorities and strategic direction on key regional issues. We will achieve this through improving the ways in which communities can engage with the decisionmaking process, planning and implementation of the region's plans. Provide leadership across Canterbury to provide a regional Canterbury voice and role in greater Christchurch. We will continue to support a collaborative governance approach on all regional issues so that all agencies speak with one voice on issues for Canterbury and greater Christchurch. Facilitate parallel progress on economic viability and environmental responsibility by increasing our ability to enable communities and businesses, including farms, to thrive without compromising the region's water, natural habitat or air quality. We seek to match our level of technical capability and capacity to our priorities. Transition to a new governance arrangement based on the central government decision. Starting new work, we will: Reach interorganisational agreements for efficient and effective projects and outcomes delivery (public agency focus and also private sector). To do more, we need to be smarter in how we do things and, rather than tackle issues on our own, work out with our partners, including industry, how we can do it collectively. Improve our systems to make our information about our responsibilities more accessible and useful for the community. We gather, manage, analyse and make available a vast range of data and information. It relates to water flows and quality, air quality, population changes, land use, soils, public transport, pests, pollution and hazards (floods, earthquakes, sea level rise, etc.). Develop 3year infrastructure strategies, as all councils are required to do. Whether these provide for river stopbanks, water supplies or stormwater systems, rather than tackle these issues as individual councils we need to learn from one another, and explore better and costeffective ways to manage key infrastructure in the region and locally (public sector service efficiencies). 28

32 Part A: LTP 21525, Page A32 Council priorities and services LTP Who we work with works with a range of key organisations to achieve results across the programmes in this portfolio. Programmes Governance services Ngāi Tahu engagement LongTerm and Annual Plans Regional policy, data, strategy and community engagement Key partners we work with Ministers of the Crown central government agencies Ngāi Tahu: Te Rūnanga o Ngāi Tahu and the ten Papatipu Rūnanga national and regional industry bodies and organisations. health boards district councils of the region and Christchurch City Council communitybased and nongovernment organisations media 29

33 Part A: LTP 21525, Page A33 Council priorities and services LTP Levels of service and targets There are three programmes, or result areas, that contribute to this portfolio. The tables below describe the work streams for each programme via levels of service statements, measures of success and associated targets. This information reflects the strategic direction and resource allocation outlined earlier in this Plan. The measures and targets set the basis for Council annual reporting of performance to the community for the next three years. Programme 1 Governance services s work and regional leadership are grounded in enduring relationships and collaborative agreements. Levels of service Enduring relationships and collaborative agreements A programme of relationship and engagement agreements is developed and maintained with councils, government agencies, key industry groups and nongovernment organisations. Measures Relationships and agreements are maintained with the Canterbury District Health Board, and at least two formal industry or nongovernment organisation agreements, and members of these organisations are satisfied with the relationship and outcomes achieved with. commits to and supports the Mayoral Forum, Chief Executives Forum and Canterbury Regional Strategy and Policy Forum. Targets A total of 7% of survey respondents rate the relationship as good or very good (on a scale of very poor, poor, fair, good and very good). By %. By 217 8%. supports or is asked to lead at least one regionally significant policy or strategic matter each year. Direction Annual staff survey undertaken, assessed and analysed. Performance of Service Level Agreement is monitored. Quarterly attendance at forums by Environment Canterbury. Programme 2 Regional policy, data, strategy and community engagement s work and regional leadership are underpinned and supported by high quality data and strategic and technical information (environmental, economic, social and cultural). Levels of service Information management collects, maintains and shares quality assured data and information, and uses this to inform policy development and implementation and to support regional sustainable development. Measures State of the Environment reporting information is published annually on four environmental domains: air, coastal, biodiversity/ecosystem health, and water. 's strategic longterm planning, policy, decisionmaking, implementation and reporting are improved via integrated information and data management systems to bring together environmental, consents, organisational and other information to support outcomesfocused reporting. Targets State of the Environment reporting data and information are readily accessible through the website for CWMS zones and Canterbury airsheds. State of the Environment reporting is published each year in accordance with Ministry for the Environment frameworks. Integrated information and data management project plan is in place by September 215. First integrated information and data management outcomesfocused reporting by end June 216. Direction State of the Environment reports are approved one month prior to publication. Integrated information and data management project milestone is reported. 3

34 Part A: LTP 21525, Page A34 Council priorities and services LTP Legislation and compliance obligations meets legislative reporting and compliance obligations through the LongTerm Plan, Annual Plans and Annual Reports, and provides accessible, easily understood reports to the community on our activities, plans and management of resources (environmental, financial and other resources) maintains a strategic longterm policy focus to ensure that planning, policy and decisionmaking, and advice and submissions on central government policy and legislative changes, are wellinformed, purposefully directed and outcomesfocused. Measures The LongTerm Plan, Annual Plans and Annual Reports are completed within statutory timeframes, with effective engagement with the community, 's partners and relevant groups and agencies. 's policy advice is independently assessed each year by New Zealand Institute of Economic Research (NZIER). Targets All statutory requirements completed on time. Integrated information and data management outcomes focus is demonstrated in the 216 and 217 Annual Plans and the LongTerm Plan, maximising the value of integrating information across the organisation. 's policy advice meets NZIER's good practice standards with scores of 6.75 or better on average. Programme 3 Ngāi Tahu engagement s relationship with Ngāi Tahu is strong and effective. Levels of service governance, cogovernance and working relationship arrangements are in place with ngā Rūnanga and Te Rūnanga o Ngāi Tahu supports Ngāi Tahu to fulfil their roles and responsibilities as tangata whenua and kaitiaki the Tuia programme and ethic are integrated and fostered through all activities and work programmes. Measures At least quarterly governance meetings are held with Rūnanga chairs and Te Rūnanga, with an agreed work plan in place. A regular working group forum is held with mandated ngā Rūnanga members to improve engagement at an operational level, including recommendations to the governance group. Cogovernance protocols are established, monitored and evaluated. Ngāi Tahu members working with on behalf of their Papatipu Rūnanga and/or Te Rūnanga are satisfied with the Tuia programme. Service Level Agreements are in place with each Rūnanga through their advisory service business. Targets Governance agreements and work plans are in place and reviewed annually. All required meetings have been held and issues arising have been responded to. Each year, two new work programmes have cogovernance protocols in operation. A total of 7% of survey respondents rate the relationship as good or very good (on a scale of very poor, poor, fair, good and very good). By %. By 217 8%. Each year at least two new sections of are contracting advice from Rūnanga advisory services. Staff feel confident and capable in their dealings and relationships with Ngāi Tahu. Work programmes explicitly provide for the Tuia relationship. A total of 7% of staff respondents are confident in their relationship with Ngāi Tahu. By %. By 217 8%. Service Level Agreements and/or Tuia staff are providing necessary advice to work programmes. 31

35 Part A: LTP 21525, Page A35 Council priorities and services LTP Financial summary Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 8,984 1,327 1,725 11,92 11,484 11,782 12,174 12,321 12,647 13,18 13,44 Targeted rates 38 Grants User pays/other 1,542 1,367 1,333 1,368 1,396 1,433 1,472 1,511 1,587 1,631 1,68 Total income 1,629 11,76 12,125 12,529 12,951 13,288 13,721 13,91 14,314 14,822 15,24 Operating expenditure 1,783 12,425 12,145 12,499 13,268 13,11 13,543 14,41 14,14 14,611 15,554 Operating surplus/(deficit) (154) (665) (2) 3 (317) (491) (35) 32

36 Part A: LTP 21525, Page A36 Council priorities and services LTP Air quality Portfolio statement Nobody wants to breathe polluted air. Canterbury s air quality is generally good, but many towns and cities exceed national healthbased guidelines during winter. The main contributor to this pollution is smoke from home heating. works with communities, territorial authorities, health boards, industry and woodburning households to help achieve air quality that supports healthy communities and meets national requirements. There is one programme in this portfolio which has the following work streams: monitoring and investigating air quality issues reducing household PM 1 emissions in polluted airsheds managing air discharges and issues from odour, nuisance and dust encouraging new technology development reviewing and implementing a new Air plan supporting warm homes and clean air through working with other organisations to provide heating help and assistance programmes. The 'Levels of service and targets' section describes the objectives sought for air quality and the headline measures the Council will use to help determine progress. 33

37 Part A: LTP 21525, Page A37 Council priorities and services LTP Factors influencing direction Strategic factors have been considered in the process of determining direction and priorities of work under this portfolio. The health impacts of air pollution: The health impacts of a range of contaminants to air are well established. Two key contaminants of concern in Canterbury are PM 1 and PM 2.5. National standards for air quality and compliance targets for polluted airsheds: The National Environmental Standard for Air Quality has established split PM 1 compliance targets for polluted airsheds to achieve by 216 and 22. Currently Canterbury has seven polluted airsheds. Review of the Canterbury Air Plan 22: Significant improvement in air quality has been achieved under the Air Plan but continued effort is needed to clean up the air in some towns and cities and for some activities: Christchurch and Timaru are key polluted airsheds, though there is work to be done in each of the seven polluted airsheds in Canterbury. Communities have asked for better management of some activities in some areas such as dust, outdoor burning, odour and nuisance. has been working on building relationships and developing a plan with territorial authorities and interest groups on how these issues can be addressed and how emissions reductions can be achieved. Looking ahead over the next three years, there is a need to: continue to work closely with territorial authorities, health boards, industry and communities in order to implement solutions developed under a new Air Plan develop partnerships that directly influence the achievement of clean air and warm homes goals use science and information to inform and monitor local implementation and action improve woodburning technology, working with government agencies and industry on this. Over the longer term (ten years), our communities can look forward to enjoying the benefits of cleaner, healthier air. 34

38 Part A: LTP 21525, Page A38 Council priorities and services LTP Work priorities and direction The proposed direction and priorities for the Council's work in this portfolio include the following: We will have continued emphasis on: Achieving national air quality standards and targets while taking into consideration the complexities of continuing to allow wood burning, supporting warmer homes, addressing community needs and allowing time for technology and household changes to occur. Developing relationships and working jointly with government, industry and health boards to provide leadership and implement solutions. We will increase our emphasis on: Using science and information to improve our programmes and to target actions to where they are most effective. Providing incentives for good practice across all areas and issues, and undertaking targeted compliance and enforcement where warranted. Engaging the community in addressing air quality issues and sharing information on progress in each community. 35

39 Part A: LTP 21525, Page A39 Council priorities and services LTP Who we work with works with a range of key partners to achieve results across the work streams in this portfolio. Work streams Monitoring and investigating air quality issues Reducing household PM 1 emissions Managing air discharges and issues from odour, nuisance and dust Encouraging new technology development Key partners we work with central government agencies health boards territorial authorities industry heating providers Addressing local issues through Air Plan review and implementation Supporting both warm homes and clean air through heating help and assistance programmes 36

40 Part A: LTP 21525, Page A4 Council priorities and services LTP Levels of service and targets Levels of service air quality supports healthy communities and meets national standards works with territorial authorities, health boards, industry and social organisations to provide leadership on air quality issues and deliver shared local solutions delivers the air quality outcomes through the implementation of the Canterbury Air Plan 215 and agreed action plans for each polluted airshed in the region. Canterbury airsheds progress towards the National Environmental Standards for Air Quality. Measures Air quality monitoring and reporting occurs across Canterbury airsheds. Targets Airshed monitoring and reporting capability is maintained as required by the National Environmental Standard for Air Quality. Outcomesfocused reporting frameworks, e.g. polluted airshed graphs of PM 1 showing concentration reductions, are made public. Joint work programmes are developed with health boards and territorial authorities to support air quality outcomes. Measures Agreements are in place with health boards and territorial authorities. Targets Two joint work programmes in place and delivered each year. The Canterbury Air Plan 215 and airshed action plans are in place. Measures Adoption and implementation of the Canterbury Air Plan 215. Targets 215/16: Air Plan hearings commenced. 216/17: Revised Air Plan operative. Implementation plans are in place for seven polluted airsheds as agreed with territorial authorities and health boards. 37

41 Part A: LTP 21525, Page A41 Council priorities and services LTP Financial summary Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 1,957 1,344 1,193 1,218 1,242 1,271 1,33 1,149 1,171 1,519 1,57 Targeted rates 295 2,58 2,12 2,11 2,173 2,453 2,545 1,723 1,756 2,279 2,356 Grants 5 1 User pays/other Total income 2,653 3,797 3,457 3,513 3,57 3,86 3,99 2,918 2,981 3,854 3,982 Operating expenditure 3,83 4,36 3,785 3,794 3,833 3,896 3,97 2,927 2,981 3,854 3,982 Operating surplus/(deficit) (429) (59) (328) (282) (263) (9) (61) (8) 38

42 Part A: LTP 21525, Page A42 Council priorities and services LTP Biodiversity and biosecurity Portfolio statement The focus of this portfolio is the protection, maintenance and active restoration of indigenous biodiversity across the region, so that there is a full range of healthy ecosystems from the mountains to the sea, reflecting the unique and diverse natural character of the Canterbury region. The programmes associated with this portfolio include: 1. Biodiversity and ecosystem health 2. Biosecurity 3. Whakaora Te Waihora. The 'Levels of service and targets' section describes the objectives sought for each of these work streams and the headline measures the Council will use to help determine progress. 39

43 Part A: LTP 21525, Page A43 Council priorities and services LTP Factors influencing direction Strategic factors have been considered in the process of determining direction and priorities of work under this portfolio. The following are key factors that have influenced the services provided to date: Significant loss and degradation of indigenous biodiversity and ecosystem health have been experienced in many parts of the region to date, and there are continuing threats to remaining biodiversity from pests, weeds and the impacts of some land use and water management practices. These factors are recognised in our strategies for biodiversity and Canterbury water management, and our requirements under the Biosecurity Act We have: Aligned our programmes with the priorities and principles of these strategies such as focusing first on protecting what remains and then on restoring what has been lost. Contributed to the achievement of the strategic goals and targets, for example through the Immediate Steps and other incentive grants programmes, and regional restoration initiatives such as the Wainono Lagoon restoration project. Sought to understand community perspectives of and risk appetite for pests and their management. The Resource Management Act sets out a number of functions and responsibilities for regional councils that relate to biodiversity, such as to 'maintain indigenous biodiversity', and to protect significant areas of biodiversity. We will fulfil these responsibilities as part of the wider sustainable management of the region's natural resources. The health of our region's indigenous species and ecosystems is fundamental to Ngāi Tahu and therefore our work in this area is important to our relationship with Ngāi Tahu. There has also been a steady increase in awareness of and interest in indigenous biodiversity from the regional community, and a growing expectation that there is no further loss and degradation. Achieving this will require effort from agencies, communities and businesses alike, and a number of parallel efforts such as robust policy and regulations, direct funding for projects, education and awareness raising, voluntary community effort, and direct action by individuals. Consequently, a key focus of our biodiversity programmes is working with others. Looking ahead (next three years), the following additional factors have been considered: All of the CWMS committees have now produced Zone Implementation Programmes with recommendations to be actioned by a number of parties, including. A considerable proportion of these relate to biodiversity and ecosystem health. We will contribute to addressing these recommendations, such as through improvements to publicity and awareness, and further development of Immediate Steps. There has been strong support from CWMS committees for the continuation of the Immediate Steps programme. Ensuring that it is focusing on biodiversity priorities and projects that achieve added value will be important: better connectivity and corridors between habitats, contribution to improved water quality, and growing awareness through visibility and accessibility to the public. As district plans are reviewed, there will be opportunities to work closely with territorial authorities and communities to improve integration and ensure district and regional plan provisions and other council programmes give effect to the biodiversity provisions of the Regional Policy Statement, particularly in relation to protecting areas of significant biodiversity. The resilience of the Te Waihora CoGovernance Agreement is important to our relationship with Ngāi Tahu and we will continue our commitment to the Whakaora Te Waihora programme. There is an increasing need to improve monitoring of progress and outcomes related to the CWMS goals and targets, as well as central government and regional council sector initiatives to ensure consistency and alignment in regional environmental monitoring. This means we will continue to improve monitoring related to our biodiversity programmes. The proposed National Policy Direction for Pest Management prescribes new requirements for Regional Pest Management Plans. This and regional council sector initiatives to identify ways to improve alignment and consistency between Regional Pest Management Plans will impact on the review of our current Regional Pest Management Plan, and the development of a new Plan to be operational by the end of June 217. The biosecurity threats facing the region will continue to increase due to a number of factors such as changing climate, and growth in trade and the movement of goods and people. This will require an increased focus on preventing new pests and the spread of existing pests, and the management of pest risk pathways. Over the longer term (ten years), factors considered include: The potential for further cogovernance arrangements with Ngāi Tahu, the Crown and territorial authorities. Ongoing improvements in efficiencies related to measuring our progress and outcomes through increased and more effective use of technology to capture data related to our own programmes, and from other organisations and communities ('citizen science'). 4

44 Part A: LTP 21525, Page A44 Council priorities and services LTP Challenges of balancing expectations of easy access to biodiversity areas versus maintenance of areas more remote to larger urban populations and ratepayers. The secondary impacts of a changing climate and sea level rise for biodiversity and the location and type of protection and restoration projects undertaken. These factors will highlight the importance of buffers, corridors, migration pathways, networks of sites to enable adaptation, relocation and retreat. The increasing international and national evidence and understanding about the value and importance of the health of our natural ecosystems to the longterm health of our communities and economies, which highlights the importance of continuing our efforts to contribute to the maintenance of our region's biodiversity and ecosystem health. Challenges of meeting community expectations for managing pests that reflect the different values, e.g. production and indigenous biodiversity, and the possible increased pressure on resources used to meet these expectations. 41

45 Part A: LTP 21525, Page A45 Council priorities and services LTP Work priorities and direction The proposed direction and priorities for the Council's work in this portfolio includes the following: Continuing at the same level, we will: Provide incentive grants programmes, including Immediate Steps and the Canterbury Region Biodiversity Strategy fund, but working with zone committees to improve tactical planning for their biodiversity investments to ensure a focus on priorities, as well as projects that provide added value such as connected networks of projects and waterway corridor projects. Focus on working closely with others, particularly around longerterm projects, such as work with Ngāi Tahu and others on Whakaora Te Waihora; work with Department of Conservation (DOC) and landowners on the Upper Rakaia and Rangitata Rivers project; work with DOC and groups like BRAID around braided river management; and work with Papatipu Rūnanga on restoration projects through the Tuia programme. Administer and implement a Regional Pest Management Plan. Other priority areas are: Monitoring of biodiversity outcomes through the biodiversity component of a regional environmental monitoring programme, as well as improving efficiencies in the way we gather data, such as through more effective use of technology, data sharing with other organisations, and the use of information collected by the community ('citizen science'). The development of more effective communications methods and materials to celebrate the success stories around the region, and to grow the level of public awareness and engagement in biodiversity initiatives. Prioritising regional projects and responding, where appropriate, to national priorities. Completing the review of the Regional Pest Management Plan and notifying a new Plan to be operational by the end of June 217. Communication and advocacy to raise awareness and prompt behaviour change in relation to onfarm biosecurity and pest risk pathway management. In starting new work, we will: Work with territorial authorities and communities to ensure that the biodiversity provisions of the Regional Policy Statement are understood and given effect to, with pilot initiatives in Hurunui and Mackenzie and potentially expanding to other districts. Where potential opportunities arise, work with communitybased organisations to investigate more efficient ways of delivering biodiversity outcomes in particular areas. Deliver the objectives of a new Regional Pest Management Plan once operative considering development of pathway management plans; and working with industry on development of industryled initiatives such as 'good practice' pathway management systems, potential future integration of biosecurity compliance and onfarm biosecurity systems with water and land management tools, e.g. Farm Environment Plans. Reducing current work will involve: Refocusing the approach to biodiversity investment at the zone level to a more tactical approach of prioritised catchment or corridorfocused initiatives and connected networks of biodiversity sites. An anticipated shift in focus in our biosecurity programme following the Regional Pest Management review (post217) with reduced intervention in the management of longestablished, widespread pests, and a greater focus on preventing the arrival of new pests and the spread of existing lowincidence pests, and pathway management. Ceasing our regional contribution to the national Tbfree strategy, administered by OSPRI New Zealand, following a review of the current funding framework for the strategy. 42

46 Part A: LTP 21525, Page A46 Council priorities and services LTP Who we work with works with a range of key partners to achieve results across the programmes in this portfolio. Programme Biodiversity and ecosystem health Freshwater biodiversity, e.g. Immediate Steps, regional restoration initiatives (Wainono), CWMS committee support Regional biodiversity, e.g. CBS grants, Honda Tree Fund, advice and education, communications Monitoring and investigations, e.g. wetlands database, technical advice to consents, planning, reserves management, project assessments Key partners we work with landowners Department of Conservation Land Information New Zealand territorial authorities CWMS zone committees Papatipu Rūnanga Crown Research Institutes and universities community groups, QEII Trust, Banks Peninsula Conservation Trust, Fish & Game New Zealand, Royal Forest and Bird Protection Society of New Zealand Programme Biosecurity Key partners we work with landowners pest management liaison committees Ministry for Primary Industries regional councils Department of Conservation Land Information New Zealand Crown Research Institutes industry Papatipu Rūnanga Whakaora Te Waihora Kaituna, Halswell/Huritini and Waikekewai Improving inlake habitat Lake opening management Protecting lake shore habitat Monitoring and project management Te Rūnanga o Ngāi Tahu (Te Waihora Management Board) and Papatipu Rūnanga (Taumutu, Wairewa, Koukourārata, Ōnuku, Tūāhuriri, Ngāti Wheke) Selwyn Waihora CWMS Zone Committee Selwyn District Council, Christchurch City Council Ministry for the Environment Department of Conservation Lake Settlers' Association, Waihora Ellesmere Trust, Te Ara Kākāriki, Fish & Game New Zealand Lincoln University Fonterra 43

47 Part A: LTP 21525, Page A47 Council priorities and services LTP Levels of service and targets There are three programmes that contribute to this portfolio. The tables below describe the work streams for each programme via levels of service statements, measures of success and associated targets. This information reflects the strategic direction and resource allocation outlined earlier in this Plan. The measures and targets set the basis for Council annual reporting of performance to the community for the next three years. Programme 1 Biodiversity and ecosystem health Longterm objectives of the programme are that: Levels of service the indigenous biodiversity and ecosystem health of the Canterbury region is maintained from the mountains to the sea sites of significant indigenous biodiversity are protected Canterbury communities, businesses and landowners take shared responsibility for protecting, maintaining and restoring the region's indigenous biodiversity and ecosystem health. works with Ngāi Tahu, communities, territorial authorities, Department of Conservation, land occupiers and other recreational, environmental and industry parties to protect and restore Canterbury's indigenous biodiversity and aquatic ecosystem health. Measures Ontheground projects to protect and restore indigenous biodiversity. Regional biodiversity policy and strategies are given effect to. State of the Environment reporting information is published annually for biodiversity/ecosystem health environmental domain. Targets An annual increase in the area within the region that is protected (legally or physically), or subject to restoration activities, e.g. restoration planting. Tactical plans for ongoing biodiversity investment are agreed with CWMS zone committees by June 216. At least two biodiversity projects are initiated or progressed in each CWMS zone annually. All district plan reviews are supported and a regional approach that gives effect to regional biodiversity policy is developed with territorial authorities, Ngāi Tahu and other stakeholders, and solutions developed for at least two territorial authorities by June 216. Canterbury Region Biodiversity Strategy signatories decide by June 217 whether a review of the Strategy is required. State of the Environment reporting data and information are accessible on the website. State of the Environment reporting is published each year in accordance with Ministry for the Environment frameworks. Programme 2 Biosecurity limits the negative impacts of pests on the natural environment, economy and communities of Canterbury, and works with industry and landowners to achieve shared responsibility for proactive pest and pest pathway management. Levels of service administers and implements a Regional Pest Management Plan new pest incursions in the region are detected and appropriately managed, and alreadyidentified pests are costeffectively and equitably managed. 44

48 Part A: LTP 21525, Page A48 Council priorities and services LTP Measures Implementation of a Regional Pest Management Plan that meets the requirements of the Biosecurity Act Development and implementation of new pathway management initiatives. Regional incursion response capability is maintained. Targets A reducing trend in pest levels identified in the Regional Pest Management Plan. A Regional Pest Management Plan review discussion document is released for consultation by June 216. A proposed new Regional Pest Management Plan is notified by June 217, and is operative by June 218. A pathway management work programme is developed during 215/16 and implementation progressed from July 216. Management plans are in place and/or response decisions progressed for 1% of new pests detected. Regional incursion response capability and capacity are maintained as agreed under the National Biosecurity Capability Network. Programme 3 Whakaora Te Waihora Levels of service will work in partnership with Ngāi Tahu to implement a joint programme to progress the twogenerational vision to restore and rejuvenate the mauri and ecosystem health of Te Waihora/Lake Ellesmere. Measures Implementation of the Whakaora Te Waihora Joint Cultural and Ecological Restoration Plan. Parties to the Te Waihora CoGovernance Agreement are satisfied with the relationship and outcomes achieved with. Targets The Joint Restoration Plan is reviewed, updated and approved by programme partners by December 216. An annual work plan for progressing the Joint Restoration Plan is agreed by programme participants, and a report on the work plan delivery and wider Joint Restoration Plan progress is completed for programme participants annually. At least 7% of survey respondents rate the relationship as good or very good (on a scale of very poor, poor, fair, good and very good). By %. By 217 8%. Direction Annual survey undertaken, assessed and analysed. Performance of Service Level Agreements is monitored. 45

49 Part A: LTP 21525, Page A49 Council priorities and services LTP Financial summary Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 4,43 3,862 4,323 4,398 4,767 4,889 5,16 5,142 5,27 5,428 5,61 Targeted rates 3,277 2,938 3,717 3,841 4,915 5,43 5,178 5,317 5,465 5,634 5,817 Grants 1, User pays/other Total income 8,892 7,664 8,77 8,51 9,969 1,227 1,498 1,773 11,84 11,419 11,782 Operating expenditure 11,137 9,153 8,7 8,51 9,969 1,227 1,498 1,773 11,84 11,419 11,782 Operating surplus/(deficit) (2,245) (1,489) 8 46

50 Part A: LTP 21525, Page A5 Council priorities and services LTP Hazards, risks and safety Portfolio statement supports the region s communities to be informed and aware, better prepared and more resilient in the face of risks from natural and other hazards. helps to mitigate risks through investigations and monitoring work, efficient management systems, investment in infrastructure and development restrictions. The programmes associated with this portfolio include: 1. Natural hazards 2. Navigational and recreational boating safety 3. Flood protection and control works 4. Coastal hazards 5. Emergency management 6. Contaminated hazardous land and waste. The 'Levels of service and targets' section describes the objectives sought for each of these work streams and the headline measures the Council will use to help determine progress. 47

51 Part A: LTP 21525, Page A51 Council priorities and services LTP Factors influencing direction Strategic factors have been considered in the process of determining direction and priorities of work under this portfolio. Key factors that have influenced the services provided to date include: Statutory provisions and requirements (Soil Conservation and Rivers Control Act 1941, Civil Defence Emergency Management Act 22, Resource Management Act 1991 and National Environmental Standards). Establishing an understanding of hazard levels and communities' risk appetite, e.g. flooding, tsunami, navigational. Adopting regional strategies and policies that are fit for purpose by using the information and data we gather on risks and hazards to support the decisions and local councils make on things like where future housing developments go, key infrastructure (bridges, roads, powerlines) and the location of commercial enterprises. Looking ahead (the next three years), additional factors that have been considered include: Better infrastructure planning to continue to build and grow our understanding and knowledge of the region's rivers, to have regular river scheme reviews and to deliver the objectives of the 3year River Infrastructure Strategy. Timber drop from the September 213 storm continuing to investigate the impacts of this event on future revenue streams and operational management of our forest land, park areas and other land under our management. Interorganisational agreements for efficient and effective projects and beneficial collective outcomes (public agency focus and also private sector). We will continue to look for and work with current and future partners in the delivery of key priority work so we have the right people and necessary skills to deliver work in an efficient way. Dramatically improved local data management and aggregated Canterbury data supplied nationally. We are living in a world where good data and information are readily available and people are connected and able to access and provide data from a variety of locations. We have recognised that and are working on ways to use all data better in our decisionmaking and to make the information accessible by the community. Over the longer term (ten years), factors considered include: The Canterbury region's experience of some significant natural events over the last ten years, and projections showing that there is likely to be increased frequency and intensity of storms. As a region we need to understand how severe these extreme events might be and how often they may occur, and make sure that agencies, industry and communities are prepared and able to respond to keep people and property safe. Increased pressure on resources and how these are managed we are aware that the region's communities will continue to develop, shift and change and that expectations of what services they receive in their local community area will also shift and change. We need to understand these changes and adjust accordingly (equity of actions between rating schemes by changing rural demographics). Increased prioritisation of risks and what does improved understanding of communities level of acceptable risk (changing expectations on all areas). Ready access to information and data continues to grow. A more informed and aware community means that people are aware of and able to respond to the risks and hazards around them. Environment Canterbury needs to be able to meet the community's appetite for hazard information and support their understanding. Wider access to information by communities, agencies and industry (selfdetermination of risk) leading to increased community education. Making sure our risk assessments support ongoing regional economic growth, gives the community and business world a degree of stability in their operations and ensure ongoing sustainable management of the region's resources. The information and data we gather are used by the public and private agencies, who are looking for security and certainty as far as possible. 48

52 Part A: LTP 21525, Page A52 Council priorities and services LTP Work priorities and direction The proposed direction and priorities for the Council's work in this portfolio include the following: Continuing at the same level, we will: Undertake hazard monitoring, response provision, and administer statutory functions. Continue to facilitate regional and (where appropriate) national portfolio solutions (share our technical capability, benefit from others). Perform core statutory functions and services supporting waste, hazardous substances and contaminated sites management identifications, investigations, information management, communicating, consenting and implementation. Undertake regional and national sector collaboration and engagement (share technical capability, sector consistency, costefficiencies and alignment). Continuing at an increased level, we will: Develop the 3year Infrastructure Strategy, which will introduce river reviews for the region's main rivers. Focus on efficient delivery of joint statutory functions for waste, hazardous substance and contaminated lands through shared services with territorial authorities. Prioritise regional projects and responding, where appropriate, to national priorities. In starting new work, we will: Introduce a management strategy for endowment land. Improve information and data management/analysis. Reducing current work will involve: Port safety having no rating contribution with less nonproductive support. For Lyttelton and Timaru, port companies will cover all operating costs and get compensation from ship owners, which reduces our administration overheads. Broadly focused identification of Hazardous Activities and Industries List (HAIL) sites, as was done in Christchurch to support earthquake recovery. 49

53 Part A: LTP 21525, Page A53 Council priorities and services LTP Who we work with works with a range of key partners to achieve results across the programmes in this portfolio. Programme Natural hazards Navigational and recreational boating safety Flood protection and control works Coastal environment and hazards Marine oil spill response Contaminated hazardous land and waste Key partners we work with territorial authorities Civil Defence Emergency Management Group research providers Canterbury Earthquake Recovery Authority Ngāi Tahu port companies district councils ship owners boating community Papatipu Rūnanga territorial authorities Civil Defence Emergency Management Group New Zealand Transport Agency communitybased recreational groups Papatipu Rūnanga territorial authorities Department of Conservation Ministry for the Environment Civil Defence Emergency Management Group Ngāi Tahu Maritime New Zealand Papatipu Rūnanga territorial authorities Ministry for the Environment regional councils health boards environmental consultants 5

54 Part A: LTP 21525, Page A54 Council priorities and services LTP Levels of service and targets The six programmes that define this portfolio are broken down to the following detailed work streams. The tables below describe these work streams via service statements and provide measures and targets on what the Council seeks to achieve. This information reflects the strategic direction and resource allocation outlined in this Plan. The measures and targets set the basis for Council annual reporting of performance to the community for the next three years. Programme 1 Natural hazards aims to help reduce the risks to people and property arising from potential natural hazards, including earthquakes, landslides, tsunamis and flooding, by providing information to support risk reduction, readiness, response and recovery. Levels of service Natural hazards information collects and provides natural hazard information for tsunami, earthquake, landslide and floodplain hazards to increase community awareness and guide longerterm development. Measures Ensuring natural hazard information is available. Providing advice to partner organisations on implementing hazard risk reduction measures. Targets A total of 9% of advice regarding natural hazard information, in relation to private property, is provided within ten working days. New technical reports and information are available on Environment Canterbury s website within six months and are available at all times. Investigations undertaken and reports produced as scheduled and formally delivered to territorial authorities, with table of reports displayed annually. A total of 7% of councils and Civil Defence Emergency Management survey respondents rate the relationship and service as good or very good (on a scale of very poor, poor, fair, good and very good). By %. By 217 8%. Programme 2 Navigational and recreational boating safety This programme is made up of two work streams with the following objective: will meet its statutory obligations towards safe ports, harbours and waterways under the Maritime Transport Act 1994, and implement the New Zealand Port and Harbour Marine Safety Code. Levels of service Port safety enables safe navigation for ships and other commercial vessels in ports, harbours and coastal areas. Measure The operation of an approved risk assessment regime, safety management system and appropriate risk control measures for the ports of Lyttelton and Timaru, the harbour areas of Kaikōura and Akaroa, and the coastal waters of the region. Targets Risk assessment regime and Safety Management System approved by Maritime New Zealand. ISO 91:28 certification and monitoring of the Safety Management System. Operational overview and emergency response function available at all times. Qualified, experienced and independent harbour master. 51

55 Part A: LTP 21525, Page A55 Council priorities and services LTP Recreational boating enables safe navigation for recreational vessel users of the coast, harbours and inland waterways. Measure Navigation safety bylaws and a navigational safety officer are in place and provide guidance on the safe navigation of vessels within the region. Target A navigation safety officer is employed to liaise with communities, user groups and organisations. Programme 3 Flood protection and control works This programme is made up of three work streams with the following objective: manages rivers to reduce the risk to people and property arising from river flooding, and meets its statutory obligations under the Soil Conservation and Rivers Control Act 1941 and other legislation. Levels of service Reducing flood risk Measures s Infrastructure Strategy outlines river management for the next 3 years and includes a schedule of river reviews to deliver strategy outcomes. The river review schedule is made publicly available. Targets The 3Year Infrastructure Strategy and river reviews are completed as scheduled. All completed river reviews result in a river management plan that is consulted on and agreed with river rating committees. Flood protection infrastructure is maintained against agreed levels of service in consultation with river rating district committees. Flood prediction information and river flood warnings are provided to key agencies when agreed trigger levels are exceeded. Accurate regionwide warnings are issued in accordance with established flood protocols. Uptodate and timely river flow, rainfall and flood warning advice is available through s website. Construction of flood protection infrastructure will be completed in accordance with the capital expenditure programme. No deferred maintenance that would adversely affect performance of each scheme. Following any significant hazard event, e.g. earthquake, flood, fire, and when safe to do so, engineering staff undertake prompt onsite assessments of river protection infrastructure at affected locations. Police, Civil Defence management, media, KiwiRail, New Zealand Transport Agency and territorial authorities will receive flood warnings in accordance with established flood protocols. Flood warning protocols will be reviewed after each significant flood event. Appropriate flood warning advice is available on Environment Canterbury s website during flood events. Gravel extraction sustainably manages the extraction of gravel from rivers. Measure manages the sustainable extraction of gravel for flood management and erosion control purposes while protecting and enhancing environmental, cultural, social and economic values. Target Extraction of gravel from rivers does not increase flood or erosion risk. 52

56 Part A: LTP 21525, Page A56 Council priorities and services LTP Regional parks and land management provides costeffective and safe openspace leisure and recreation opportunities on Councilowned land. Measures Maintain a management plan for regional parks. Restoration projects on wetland and lowland forests. Management of Council ground lease and licences reflects best practice. Targets The one regional park management plan that is yet to be completed is developed and maintained and the two already completed plans are maintained, with a balance between safe and costeffective recreational use, biodiversity and efficient and appropriate forestry management. Restoration management will be applied to at least 14ha of wetland and lowland regenerating forest. Leases are monitored and at least 95% of those due for renewal in this financial year comply with lease terms and conditions and regional rules while maintaining acceptable risk levels and market rentals. 215/16 A land management plan will be developed. 216/17/18 All new leases will be managed in accordance with 's land management plan. Indigenous plant communities, including mahinga kai, are protected and enhanced. Ngāi Tahu sites are protected. Programme 4 Coastal environment and hazards meets its statutory obligations towards a safe coastal environment by providing information about coastal areas susceptible to coastal erosion and sea water flooding, maintaining a regional marine oil spill response capability, and supervising swing moorings. Levels of service provide information about coastal hazards maintain a regional marine oil spill response capability. Measures Coastal areas susceptible to coastal erosion and sea water flooding identified and mapped. Availability of a regional response capability that meets Maritime New Zealand s requirements. Targets A total of 1% of coastal erosion areas mapped. Available at all times. Programme 5 Emergency management meets its statutory obligations under the Civil Defence Emergency Management Act 22 and helps to ensure that Canterbury is well prepared for a range of potential emergency events. Levels of service is an active partner of the Canterbury Civil Defence Emergency Management Group and provides for the support, information and administration needs of the group office. 53

57 Part A: LTP 21525, Page A57 Council priorities and services LTP Measures is a supportive partner within the Canterbury Civil Defence Emergency Management Group. Targets Participate fully as an active partner in achieving the objectives of the Group plan. All emergency events are responded to as required. Programme 6 Contaminated hazardous land and waste Risks to human health and the environment from waste, hazardous substances and contaminated land are minimised through the efficient regional delivery of statutory functions, investigation and management of these hazards, and provision of information and technical advice. Levels of service reduces risk to human health and the environment from waste, hazardous substances and contaminated sites. Measures undertakes investigations for the purposes of identifying and monitoring contaminated land. Priority regional and national waste projects are supported in partnership with territorial authorities, industry and other agencies. Targets Information on the Listed Land Use Register is up to date, and 1% of technical enquiries are responded to. One joint contaminated land identification project is carried out with a territorial authority partner. Two projects are coordinated across the region. Improved understanding of options for the appropriate recycling/disposal of rural waste. Technical advice and support on waste and hazardous substance are provided to industry, other agencies and territorial authorities. 54

58 Part A: LTP 21525, Page A58 Council priorities and services LTP Financial summary Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 6,599 6,69 7,651 7,916 8,388 7,95 8,121 8,149 8,324 8,485 8,752 Targeted rates 1,825 1,786 11,297 11,757 12,29 12,728 12,754 12,14 12,162 11,993 12,352 Grants User pays/other 6,663 6,228 6,2 6,451 6,48 6,821 6,979 7,217 7,499 7,824 7,816 Total income 24,679 24,371 25,654 26,455 27,396 27,827 28,183 27,89 28,333 28,659 29,299 Operating expenditure 25,52 22,14 23,164 23,948 25,23 25,196 25,591 26,225 26,841 27,73 28,412 Operating surplus/(deficit) (823) 2,268 2,489 2,57 2,373 2,631 2,591 1,584 1,

59 Part A: LTP 21525, Page A59 Council priorities and services LTP Planning, consents and compliance Portfolio statement provides a focused and responsive regional planning, consents and compliance framework that supports regional development and sustainable resource management. The programmes associated with this portfolio include: 1. Regional planning 2. Processing applications for consents 3. Compliance with plans and consents. The 'Levels of service and targets' section describes the objectives sought for each of these work streams and the headline measures the Council will use to help determine progress. 56

60 Part A: LTP 21525, Page A6 Council priorities and services LTP Factors influencing direction Strategic factors have been considered in the process of determining direction and priorities of work under this portfolio. Key factors that have influenced the services provided to date include: Developing the Regional Policy Statement and Land and Water Regional Plan (and subregional planning) to deliver the CWMS and other portfolio work programmes under the (Temporary Commissioners and Improved Water Management) Act 21. Providing regulatory direction and certainty gives the community and business world a degree of stability in their operations and ensures ongoing sustainable management of the region's resources. Supporting sustainable regional growth in line with the Resource Management Act and national policy statements/directions, i.e. freshwater management. It is important not only that we focus on meeting our legislative requirements, but that we are focused on and involved in the changing policy framework and drivers nationally that influence Canterbury. We need to continue to make sure the Canterbury voice, alongside our regional partners, is clearly articulated and understood beyond our region. Looking ahead (next three years), additional factors that have been considered include the following: CWMS and ongoing water management are a high priority, and drive a significant level of the Council's workload. We will concurrently deliver five subregional plans and an Air Plan review, with an integrated approach with partners, and the expiry of the (Temporary Commissioners and Improved Water Management) Act in 216. Keeping up with this workload will place pressure on the resources of, and on those of Ngāi Tahu and other partners and the community. Alongside the plan development we also need to prepare for the management of risks associated with an increasingly challenging and technically complex consenting environment, for the times that a consent is still needed. Service Level Agreements with Tangata Whenua Advisory Services will engage services that provide specialist cultural advice and information to a majority of functions of Council, in particular consents and planning. Such advice ensures the Council meets the requirements of both the Local Government Act 22 and the Resource Management Act 199, and the Relationship Agreement between Ngāi Tahu Papatipu Rūnanga and. Data about the region continues to grow, as do improvements in science and technology solutions to the region's issues. How we manage this data will develop over time, while the groups we interact with in finding the solutions and options will continue to grow, and will include industry, communities and environmental organisations. We will work with key stakeholders to build a better understanding of the relationship between ecosystems, business practices and the economy, in the sustainable management of the region's resources. As regional growth continues, there will be increasingly intense competition for nutrient allocation and the impact on the headroom of nutrients across the region's catchments. We will continue to work with industry and agencies in the valuation of the environment in the economic model. Growing facilitative approaches to resource management compliance will be a focus. The community and landowners are aware the rules have changed and respond accordingly. In the development of policy we have responded to communities' expectations. We need to then support the policy expectations on the ground by using our full range of regulatory tools in a more focused way to achieve the planned results (including permitted activity monitoring). Over the longer term (ten years), the following factors considered are to be: With accessibility to information and open communication expected by the community, there will be increased focus and attention applied to the region's environmental performance. will play a key part in monitoring and performance reporting on the effectiveness of our policies, plans, consents and compliance functions and roles. Over the term of the LongTerm Plan there will be a number of significant national and regional policy statements and standards that must be realised or achieved. Some of these include the National Policy Statement on Freshwater Management and objectives framework, the National Environmental Standards for Air Quality targets (216 and 22), and giving effect to the New Zealand Coastal Policy Statement. The Canterbury Regional Policy Statement sets the policy platform for the region on all things we do (portfolio by portfolio). During this period we will need to make preparations for a future review of this important document. This preparation will involve discussions with and seek input from our partners and stakeholders. 57

61 Part A: LTP 21525, Page A61 Council priorities and services LTP Work priorities and direction The proposed direction and priorities for the Council's work in this portfolio include the following: Continuing at the same level, we will: Support CWMS outcomes, which is front and centre for planning. The portfolio is committed to a significant and challenging programme of work (five concurrent subregional plans). To help achieve our plans, we must ensure our operational implementation plans are in place for consents and compliance. Meet our statutory obligations for planning, consents and regulatory compliance in a timely and efficient way, and continue to ensure that we have the right skills in the delivery of our obligations. Continuing at an increased level, we will: Increase our ability and capacity to achieve acceptable results for the economy and the environment (parallel progress) and tangata whenua outcomes, and match our technical capability and capacity to our priorities (regional and internal integration of plan implementation). Deliver on the new planning and implementation framework outcomes, where we believe we will see increased and targeted consent reviews to ensure the delivery of the communities' agreed priorities across the region's various catchments. Improve the management of our data to better serve Council consent holders and the community. There will be increased volume and complexity of the data we utilise, and we will work with our partners to maximise its value. We aim to keep up with industry and community developments and growth. Post the expiry of the (Temporary Commissioners and Improved Water Management) Act in 216, be prepared for communities that have and will continue to influence our priorities and take an increasing ownership of the solutions required to achieve the results desired by the community and Council. We will monitor the progress of our plans and policies, through greater open access to our and the region's monitoring information. Strengthen relationships with others and realise that we alone do not have solutions or capabilities to deliver communities' expectations. We will continue to work more effectively with Ngāi Tahu and other key parties and to grow our customerfocused approach in everything that we do, using all the regulatory tools we have at our disposal. In starting new work, we will: Work in new areas of interorganisational agreements for efficient and effective projects and outcomes (public agency focus and also private sector), e.g. waste environment management team, land repair onestop shop, Canterbury Regional Policy Statement and district plan alignment, farm plan templates, and Service Level Agreements with Tangata Whenua Advisory Services. The following work will change: Over the term of this LongTerm Plan we have a high regional plan workload up front, which will decrease as the five subregional plans and Air Plan review are consulted on and made operative. The lessons we have learnt in plan development will see a reduction in uncollaborative practices and planning resources. Regional and subregional planning is seeking greater clarity on rules from the outset. The aim is to move to rules that establish very clear responsibilities for business and homeowners and in a setting where they can potentially carry out their activity without a consent. Our shift in emphasis from "consented" to "permitted" is accompanied by changes in how we monitor compliance, how we manage those not following the rules, and how we fund this approach. 58

62 Part A: LTP 21525, Page A62 Council priorities and services LTP Who we work with works with a range of key partners to achieve results across the programmes in this portfolio. Programmes Regional planning Processing applications for consents Compliance with plans and consents Key partners we work with central government, national industry bodies and organisations Ngāi Tahu: Te Rūnanga o Ngāi Tahu, ten Papatipu Rūnanga and Tangata Whenua Advisory Services industry, environmental nongovernment organisations and key stakeholders territorial authorities health boards communitybased organisations central government, national industry bodies and organisations Ngāi Tahu: Te Rūnanga o Ngāi Tahu, ten Papatipu Rūnunga and Tangata Whenua Advisory Services industry and key stakeholders territorial authorities health boards communitybased organisations central government, regional councils, territorial authorities Ngāi Tahu: Te Rūnanga o Ngāi Tahu, ten Papatipu Rūnunga and Tangata Whenua Advisory Services CWMS zone committees communitybased organisations, consent holders, national industry and key stakeholders 59

63 Part A: LTP 21525, Page A63 Council priorities and services LTP Levels of service and targets Programme 1 Regional planning works with the region s territorial authorities, communities, Ngāi Tahu and other groups to ensure a planning framework that supports regional development and sustainable environmental management. Levels of service 's regional policy and plans serve the community in an efficient and timely manner in line with the planning timetable set out in the LongTerm Plan. Measures A regional plan development timetable is established and maintained. The timetable is made publicly available. Targets Target dates for statutory plan public notification are met. Statutory plans are supported by implementation plans covering consents, compliance and communication activities. works collaboratively with the region s district and city councils in the review of their district plans. Measure District and city plans are supported by and these plans give effect to regional policies. Target Survey of territorial authorities regarding collaboration and support for review of district plans. Programme 2 Processing applications for consents s consent and compliance work is focused on delivering the outcomes of our key priorities and other regional strategies, and fulfilling the requirements of national legislation, policies and standards. Levels of service Information and support are provided to resource consent applicants and building control authority applicants (dams) to assist them in the delivery of highquality applications and information to ensure the efficient and timely processing of resource consents. Measures is customerfocused, resource consent applicants clearly understand the quality of application they need to submit (due to preapplication advice and guidance), and there is a reduced need to request further information from applicants. The median total time for all resource consent applications received is 21 days. Targets A reduction in the number of resource consent applications where further information is required (s92 requests) is achieved through preapplication meetings. A median of 21 days or less of total elapsed time is achieved. Resource consents support the delivery and outcomes of regional plans and building control legislation. Measure The percentage of resource consents consistent with the Resource Management Act 1991 requirements, including proposed and operative regional plan requirements and nonstatutory strategies. Target Achieve a score of 'very good' (being 9% or above) based on independent audit. 6

64 Part A: LTP 21525, Page A64 Council priorities and services LTP Programme 3 Compliance with plans and consents Levels of service Compliance and monitoring of natural and physical resources are aligned with s key priorities. Measures Targets Each year ten catchmentbased compliance work plans are discussed with CWMS zone committees. All identified moderate and major noncompliance issues and any consequent adverse effects are resolved or in the process of being resolved. An annual planning, consent and compliance implementation report is produced to support regional plan development and quarterly progress reporting. Ten compliance work plans are discussed and an annual report is provided to zone committees. All active moderate and major noncompliance issues are resolved or in the process of being resolved, i.e. an action plan has been developed, within the reporting year. Planning, consent and compliance reviews are completed and reported. s consent and compliance processes will ensure the safe and sustainable design and construction of dams and associated structures. Measures Dams classified as medium or high potential impact have a registered Dam Safety Assurance Programme. Once a complying building consent application is lodged, decisions are made within the statutory 2 working days. Targets 1% of medium or high potential impact dams have a registered Dam Safety Assurance Programme. 1% compliant building consent applications are processed and granted within 2 working days. 61

65 Part A: LTP 21525, Page A65 Council priorities and services LTP Financial summary Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 7,965 7,791 8,182 8,53 8,752 9,669 9,93 1,288 1,565 1,67 1,398 Targeted rates Grants User pays/other 7,761 7,83 7,377 7,525 7,749 7,94 8,139 8,37 8,622 8,856 9,114 Total income 16,26 15,174 15,866 16,343 16,52 17,69 18,69 18,658 19,187 18,923 19,512 Operating expenditure 16,26 15,225 15,866 16,343 16,52 17,69 18,69 18,658 19,187 18,923 19,512 Operating surplus/(deficit) (51) 62

66 Part A: LTP 21525, Page A66 Council priorities and services LTP What we jointly deliver Civil Defence Emergency Management Group The Canterbury region is exposed to many natural and manmade hazards. The Canterbury Civil Defence Emergency Management Group is a joint lead agency for emergency management and is responsible for the coordination of hazard reduction, readiness, response and recovery for emergency events, in partnership with councils, emergency response organisations and other stakeholders (Civil Defence Emergency Management Act 22). Hazard risk Canterbury s dynamic physical environment and developed economy mean that the region is vulnerable to a wide range of hazards, including the recent Canterbury earthquakes and emergencies such as flooding and storms. The greatest risk arises from being in close proximity to the Alpine Fault. In recent years a human disease pandemic has also been recognised as a risk that needs to be taken into account. Coordination Many different organisations are involved in hazard reduction, readiness, response and recovery from emergency events. The Canterbury Civil Defence Emergency Management Group s job is to provide coordination to achieve resilience to the impact of emergency events. The Civil Defence Emergency Management Group Joint Committee provides member councils with local political input into emergency management across the region, and is supported by the Coordinating Executive Group, which includes the emergency services and other Civil Defence Emergency Management stakeholders. is the administering authority for the Civil Defence Emergency Management Group and is further contracted to provide the Civil Defence Emergency Management Group s Emergency Management Office and Emergency Coordination Centre. Personal selfsufficiency During the first few days following a major emergency, such as a large tsunami or catastrophic earthquake, emergency services will be in high demand and people will need to fend for themselves. However, there is a widely held perception that in an emergency, no matter how large, Civil Defence will rescue them. People need to be prepared to look after themselves for at least three days. This will contribute to overall community resilience. The Regional Policy Statement, district plans, the Civil Defence Emergency Management Group Plan, and specific reports provide a solid basis of knowledge of the risks throughout the region. For more information on our hazard risk management and mitigation work, see the programmes listed under the Hazards, risks and safety portfolio. What we are planning to do Civil Defence Emergency Management Under our Civil Defence Emergency Management responsibilities, we contribute to: enhancing understandings of the consequences of all hazards facing the community enhancing community resilience/capacity assessing the effectiveness and efficiency of Civil Defence Emergency Management plans consulting on hazard risks implementing the national emergency management information system within Canterbury further developing response agency partnerships to ensure systems are in place to enable the community to respond to emergency events coordinating the planning, preparedness, response and recovery capability of emergency response agencies in Canterbury responding to emergency events maintaining the Group Emergency Coordination Centre in a state of response readiness, including maintaining a pool of trained emergency response personnel (staff and volunteers) to operate the Group Emergency Coordination Centre during emergencies 63

67 Part A: LTP 21525, Page A67 Council priorities and services LTP maintaining the Civil Defence Emergency Management Group s emergency communications network across Canterbury educating people about the hazards they face, how to reduce the likelihood and consequences of these hazards and how people can prepare for emergencies and care for themselves during such events providing regionallevel public information support during emergency events providing public consultation for the Civil Defence Emergency Management Group Plan review. What we will do over the term of this LongTerm Plan The National Civil Defence Emergency Management Strategy, most recently revised in 21, provides a set of goals and objectives that have direct relevance to Civil Defence Emergency Management work in Canterbury, particularly in light of the experience gained during the Canterbury earthquakes from 21 through to the present. Increasing community awareness and understanding of, preparedness for and participation in Civil Defence Emergency Management increase the level of community awareness and understanding of risks from hazards improve individual, community and business preparedness improve community participation in Civil Defence Emergency Management encourage and enable wider community participation in hazard risk management decisions. Reducing the risks from hazards to New Zealand improve coordination, promotion and accessibility of Civil Defence Emergency Management research develop a comprehensive understanding of New Zealand s hazardscape encourage all Civil Defence Emergency Management stakeholders to reduce the risks from hazards to acceptable levels improve the coordination of government policy relevant to Civil Defence Emergency Management. Enhancing New Zealand s capability to respond to emergencies promote continued and coordinated professional development of Civil Defence Emergency Management enhance the ability of Civil Defence Emergency Management Groups to prepare for and manage emergencies enhance the ability of emergency services to prepare for and manage emergencies enhance the ability of lifeline utilities to prepare for and manage emergencies. Enhancing New Zealand s capability to recover from emergencies Levels of service implement effective recovery planning and activities of communities and across the social, economic, natural and built environments enhancing the capability of agencies to manage the recovery process. Measures Providing advice to partner organisations on implementing hazard risk reduction measures. Canterbury Civil Defence Emergency Management Group office support. Supporting the information needs of the Canterbury Civil Defence Emergency Management Group relating to Canterbury hazard research. Targets A total of 7% of councils and Civil Defence Emergency Management survey respondents rate the relationship and service as good or very good (on a scale of very poor, poor, fair, good and very good). By %. By 217 8%. All Canterbury Civil Defence Emergency Management Group contract requirements are delivered as specified. Hazard information needs of the Canterbury Civil Defence Emergency Management Group are identified and adequately addressed. 64

68 Part A: LTP 21525, Page A68 Council priorities and services LTP How we deliver To achieve the direction outlined and results sought in the Consultation Document and supporting information, the Council requires an appropriate governance and executive structure. This is outlined below along with information about the Council organisation, the human resource required to deliver the planned results and the internal resources, e.g. financial staff and information system capacity. Commissioners Dame Margaret Bazley ONZ, DNZM, Hon D.Lit (Chair) Portfolios: Tuia, Regional Leadership, Economic Development Hon. David Caygill CNZM (Deputy Chair) Portfolios: Canterbury Water Management Strategy David Bedford Portfolios: Consents and Compliance, Air Quality, Rivers, Hazards Tom Lambie ONZM Portfolio: Biodiversity & Biosecurity Hon. Prof. Peter Skelton CNZM Portfolios: Planning, Earthquake Recovery, Coasts, Navigation Safety Rex Williams Portfolios: Transport, Contaminated Sites, Civil Defence and Emergency Management 65

69 Part A: LTP 21525, Page A69 Council priorities and services LTP Commissioners' responsibilities Performance, Audit and Risk Committee This Committee deals with audit, external financial reporting, financial risk management, internal control and strategic performance management. David Bedford, Dame Margaret Bazley and Rex Williams make up the Performance, Audit and Risk Committee, chaired by David Bedford. Canterbury Regional Transport Committee This is a joint standing committee with two Regional Council representatives, one elected member from each territorial authority, one representative from New Zealand Transport Authority and four independent transport sector experts. This group prepares a Regional Land Transport Strategy and a Regional Land Transport Programme. It also advises and assists the Regional Council on any other matters relating to its transport responsibilities. Rex Williams and Tom Lambie are the Regional Council representatives, with Rex Williams as chair. Canterbury Civil Defence and Emergency Management Group Joint Committee This is a joint standing committee under the Civil Defence Emergency Management Act 22, made up of elected representatives from territorial authorities and the Regional Council, exercising governance and determining Canterbury's emergency management policy. Rex Williams is the Regional Council representative. Canterbury Regional Water Management Committee This Committee, established under the Local Government Act 22 in accordance with the Canterbury Water Management Strategy 29, is a committee of the Regional Council until such time as legislative changes enable it to be a joint committee with Canterbury s territorial authorities. The Committee was formed to coordinate the development and periodic review of a regional implementation programme for the wider Canterbury region that gives effect to the Canterbury Water Management Strategy, takes into account the implementation programmes of the zone committees and monitors progress in the implementation of each programme by the water executive. David Caygill and Tom Lambie are the Regional Council representatives. Canterbury Water Management Strategy zone committees Kaikōura: David Bedford Hurunui Waiau: David Bedford Waimakariri: Rex Williams Christchurch West Melton: Rex Williams Banks Peninsula: Donald Couch Selwyn Waihora: Donald Couch Ashburton: David Caygill Orari Opihi Pareora: David Caygill Upper Waitaki: Peter Skelton Lower Waitaki South Coastal Canterbury: Tom Lambie Greater Christchurch Urban Development Strategy Implementation Committee Comprised of the Urban Development Strategy partners, Christchurch City Council, Waimakariri District Council, Selwyn District Council, Ngāi Tahu and New Zealand Transport Agency this group provides guidance and makes recommendations on the implementation of the greater Christchurch Urban Development Strategy. Dame Margaret Bazley, Peter Skelton and Rex Williams are the Regional Council representatives on the Committee. 66

70 Part A: LTP 21525, Page A7 Council priorities and services LTP Canterbury Earthquake Recovery Strategy Advisory Committee Representatives are drawn from, Christchurch City Council, Waimakariri District Council, Selwyn District Council, Ngāi Tahu, Canterbury Earthquake Recovery Authority and the New Zealand Transport Agency. Dame Margaret Bazley, Peter Skelton and Rex Williams are the Regional Council representatives on the Committee. Regional planning The Council develops regional policies, plans and strategies to promote sustainable management and give effect to the Regional Policy Statement. Peter Skelton is the Commissioner responsible for this function. Chief Executive performance review Dame Margaret Bazley, David Bedford and Rex Williams are the Commissioners responsible for the Chief Executive s performance review. Ngāi Tahu relationship The Council seeks to build durable relationships and partnerships with Māori (Ngāi Tahu Papatipu Rūnanga, Te Rūnanga o Ngāi Tahu and Ngā Maata Waka) and give effect to the Council s obligations under the Treaty of Waitangi, Ngāi Tahu Claims Settlement Act 1998, Local Government Act 22, and related obligations under the Resource Management Act Dame Margaret Bazley and Donald Couch are the Commissioners responsible for this function. Regulation overview The Council undertakes an ongoing review of the performance of the regulatory functions of. Peter Skelton and David Bedford are the Commissioners responsible for regulation overview. Regulation Hearing Committee This Council Committee has delegated functions to appoint hearings commissioners under Resource Management Act processes. Peter Skelton is chair of this Committee, with members Tom Lambie, Donald Couch and David Caygill. 67

71 Part A: LTP 21525, Page A71 Council priorities and services LTP Directorate Bill Bayfield, Chief Executive Don Rule, Director Planning and Consents Jill Atkinson, Director Strategy and Programmes Katherine Trought, Director Communications Ken Taylor, Director Investigations and Monitoring Kim Drummond, Director Resource Management Miles McConway, Director Finance and Corporate Services Wayne HoltonJeffreys, Director Operations 68

72 Part A: LTP 21525, Page A72 Council priorities and services LTP Contact details Christchurch PO Box 345, Christchurch 814 Phone Fax Timaru 75 Church Street, Timaru 791 PO Box 55, Timaru 794 Phone Fax Kaikōura Beach Road, Kaikōura 73 PO Box 59, Kaikōura 734 Phone Fax Customer services Phone (Christchurch) Freephone 8 EC INFO ( ) ecinfo@ecan.govt.nz Freephone for all areas 8 EC INFO ( ) Website 69

73 Māori Participation Policy Part A: LTP 21525, Page A73

74 Part A: LTP 21525, Page A74

75 Part A: LTP 21525, Page A75 Māori Participation Policy Contents Māori participation 3 2

76 Part A: LTP 21525, Page A76 Māori Participation Policy Māori participation The Local Government Act 22 provides principles and requirements for local authorities that are intended to facilitate participation by Māori in local authority decisionmaking processes. This is to recognise and respect the Crown s responsibility to take appropriate account of the principles of the Treaty of Waitangi and to maintain and improve opportunities for Māori to contribute to local government decisionmaking processes. In particular, 'participation of Māori' recognises and respects the mana whenua (customary tribal authority) status of Ngāi Tahu Whānui set out in section 5 of the Te Rūnanga o Ngāi Tahu Act The principles and requirements for participation are outlined as follows: Opportunities for Māori a local authority should provide opportunities for Māori to contribute to its decisionmaking processes. Local authority decisionmaking where, in the course of the decisionmaking process, a significant decision relates to land or a body of water, the local authority must take into account the relationship of Māori and their culture and traditions with their ancestral land, water, sites, wāhi tapu, valued flora and fauna, and other taonga (see below). Contributions to decisionmaking processes a local authority must establish processes to provide opportunities for Māori to contribute to decisionmaking processes, and also to consider ways to foster the development of Māori capacity. Consultation with Māori a local authority must ensure that it has in place processes for consulting with Māori that are in accordance with the principles of consultation as set out in section 82 of the Local Government Act. Working with Māori a local authority must work with Māori to further community outcomes. Development of Māori capacity a local authority must develop Māori capacity to contribute to the decisionmaking processes of the local authority. has a number of processes that give effect to these obligations and facilitate participation by all Māori. These include: Providing information to Māori to underpin processes that assist effective contribution to the decisionmaking processes of. Where practicable, continuing to make available resources and information such as maps and technical reports. Building capacity to enable contribution of Māori to the decisionmaking processes of, including the appointment of a Ngāi Tahunominated commissioner to the Council. Gaining a clear understanding of expectations through hui and ongoing relationships with Māori to agree and commit to practicable steps to building capacity. Giving ongoing consideration on a casebycase basis to the provision of support to assist all Māori with resourcing, opportunities for training and engagement, and promotion of matters that are of mutual benefit. Undertaking ongoing promotion and education of staff and governors to develop skills in Māoritanga and Tikanga Māori, and gain an appreciation of the needs and expectations of all Māori in relation to the Local Government Act and the Resource Management Act Undertaking effective and efficient consultation to improve existing relationships, processes and protocols related to local government and resource management issues. While the Local Government Act sets out provisions relating to all Māori, it is recognised that within the Canterbury region Ngāi Tahu is the tangata whenua. In addition to Local Government Act obligations, the Resource Management Act 1991 gives regional councils specific obligations regarding kaitiakitanga, the principles of the Treaty of Waitangi, and the relationship of Māori and their culture and traditions with their ancestral lands, water, sites, wāhi tapu and other taonga. To give effect to the obligations under both the Local Government Act and the Resource Management Act, must continue to develop its relationships with all ten Papatipu Rūnanga in Canterbury and with Te Rūnanga o Ngāi Tahu the iwi authority. 3

77 1year Financial Strategy Part A: LTP 21525, Page A77

78 Part A: LTP 21525, Page A78

79 Part A: LTP 21525, Page A79 1year Financial Strategy docx Contents What is our Financial Strategy? 3 Summary of our Financial Strategy 4 2

80 Part A: LTP 21525, Page A8 1year Financial Strategy docx What is our Financial Strategy? The Financial Strategy outlines the key financial parameters and limits that the Council will operate within. It will make clear how the Council s financial health will be maintained over the next ten years. In short, it s a summary of how we intend to manage your money carefully and sustainably. 3

81 Part A: LTP 21525, Page A81 1year Financial Strategy docx Summary of our Financial Strategy s financial policies aim to achieve efficient and effective regional governance. We will prudently manage the Council s finances in such a manner as to protect the public s investment and to minimise the exposure to risk. This acknowledges that at all times the Council is managing finances that belong to the Canterbury community. The purpose of this strategy is to outline these various financial policies and strategies in one location. In setting rates and charges must balance what is affordable both for the community and the Council. This balancing act takes account of the services that the Council delivers and who should pay for these services. The average annual rate of growth for the Canterbury region is projected to be around.8 per cent to 231, slowing to.3 per cent by 246. Population change impacts on demand for and the affordability of infrastructure and local services, Civil Defence Emergency Management, representation and local democracy, and the interaction of social and economic systems with the natural environment. Our Financial Strategy relies strongly on rates as a source of income because the Council does not have a large investment portfolio from which to earn substantial interest or dividends. Nevertheless, the Council s Financial Strategy is to maximise returns on what investments it holds, while maintaining a lowrisk profile for these investments. Preservation of capital is considered more important than the absolute return on investment. Further, the Council will undertake to leverage off any third party grants and financial assistance available to it, especially where there is a collaborative project being undertaken by the Council and other parties with a vested interest in the project activity. Where possible and prudent, the Council will fund from its own reserves before borrowing externally, because this provides a cheaper source of funding than external borrowing. Reserves can be used to help fund assets or to smooth the level of rates for the function concerned. This removes large peaks and troughs in the level of rates and so provides more predictability for the ratepayer. Reserves are also held at a level to help assist with the financial implications of unexpected events, and the impact of the earthquakes has proved the value of adopting this strategy. Any significant assets that have long service lives and provide benefits over a long period of time will be largely funded by the use of debt. This tool is used to ensure that current ratepayers do not subsidise future ratepayers who will also benefit from the asset s existence. The Financial Strategy has been developed to ensure the Council achieves and maintains financial sustainability throughout and at the completion of the tenyear period while delivering its agreed level of service to the community. To achieve this, the Council has considered the following matters: Introduction we have set revenues and funding at a level to cover all our expenses we have set our revenue and funding at a level so that we can afford an ongoing asset renewal and replacement programme the number of projects and the total cost of the projects are acceptable to the community we have considered the needs of current and future ratepayers we have balanced our budget. The Council must, under the Local Government Act 22, manage its revenue, expenses, assets, liabilities, investments and general financial dealings prudently, and in a manner that promotes the current and future interests of the community. Thus, the Financial Strategy is an important component of this LongTerm Plan. The purpose of the Financial Strategy is to allow: 4

82 Part A: LTP 21525, Page A82 1year Financial Strategy docx prudent financial management, by providing a guide for the Council to consider proposals for funding and expenditure against consultation on the Council s proposals for funding and expenditure by making transparent the overall effects of those proposals on services, rates, debt and investments. There is usually a balance to be struck between the amount of work to be done and the amount of funding available to do it. The Financial Strategy demonstrates the relationship between financial proposals and their effect on service delivery, rates, debt and investments, and ensures that this relationship is transparent to the community. Background and context The overarching objective for the Council is to facilitate sustainable development in the Canterbury region by ensuring sound environmental management, enabling community aspirations to be met, recognising and providing for cultural values, and supporting economic growth. The Council looks to operate a balanced budget whereby in each year the operating expenditure is covered by sufficient operating revenue unless it is prudent not to do so. The Council has done so in each year of the LongTerm Plan. Levels of service and operating programmes are established in the variety of policies, plans and strategies the Council has prepared and adopted under a number of pieces of legislation. Expenditure budgets are set to deliver upon the levels of service and operating programmes contained in this LongTerm Plan, including the estimated expenses associated with maintaining the service capacity and integrity of assets throughout their useful life. The Council undertakes a wide range of activities and services. Some of these relate to the entire Canterbury region, while others relate to particular areas or individuals within the region. As an overarching principle, the Council seeks to fund its activities as much as is practicable from those who benefit from its activities or cause those activities to be undertaken. For those activities where there is a regionwide benefit, a form of general rate is used. For those activities related to a defined area of the region, a form of targeted rate is used. Activities that are directly caused by an individual or confer a benefit on an individual are funded by a form of user pays charge. Population and land use In developing the LongTerm Plan, we must consider how population and land use changes could materially impact on our policies, plans and strategies. Population changes in Canterbury Population change impacts on: demand for and the affordability of infrastructure and local services Civil Defence Emergency Management representation and local democracy the interaction of social and economic systems with the natural environment. s only significant infrastructure relates to flood protection, river control and drainage schemes. We incorporate population information in our longterm planning and management of drains, stopbanks and other river control works, and in our Civil Defence Emergency Management planning. Population change since 26 will inform a representation review to be completed prior to local body elections in 216. Population information also directly informs our work in public transport and regional transport planning, and indirectly informs our facilitation of sustainable management of natural resources in the Canterbury region. What does this mean for the Council and the community? Rating base 5

83 Part A: LTP 21525, Page A83 1year Financial Strategy docx Changing patterns of household distribution, size and composition, the ageing of Canterbury s population, relatively low projections of population growth across the region and uncertainty about the future growth rate of Christchurch (home to twothirds of Cantabrians) combine to create a strong imperative to contain rates increases. In 215, is required to conduct a representation review prior to election of Councillors as determined by the Government following completion of a governance review. Public transport Shifts in the location of the population and business precincts in greater Christchurch have required reconfiguration of public transport planning and bus routes. The operating cost for public transport averages $79.8M per year over the tenyear life of the LongTerm Plan. If population growth does not occur where and as projected, this will likely affect bus patronage. Any shortfall in patronage will impact on income, which will need to be addressed by increasing fares, increasing targeted rates, seeking additional central government assistance, scaling back on services, or any combination of these options. Earthquake recovery and rebuild In light of the Canterbury earthquakes, we have developed a Land and Water Regional Plan to accommodate population movements and projected growth within greater Christchurch, and to integrate the use and planning of urban infrastructure. Urban and rural residential development increases the capital rating base but potentially reduces the amount of land available for agriculture. Delivery and implementation of planning related to earthquake recovery and rebuild averages $1.16M per year for the tenyear life of the LongTerm Plan. Residential development in southwest Christchurch is projected to result in an additional 3,269 households between 211 and 246 in the Halswell west area unit, increasing demand on the Halswell drainage scheme given the increasing frequency of extreme weather events. The cost of managing drainage schemes and flood protection and river control works averages $14.6M per year for the tenyear life of the LongTerm Plan. Civil Defence Emergency Management The cost of providing these services averages $1.8M per year for the tenyear life of the LongTerm Plan. Land use changes and economic activity High and consistent dollar returns from intensive farming are driving change in rural land use in Canterbury. Improvements in wateruse efficiency and integration of infrastructure will enable more irrigated land, which is in part driving the intensification of land use. Between 28 and 212, the Canterbury hinterland agricultural economy s real Gross Domestic Product (GDP) increased by 3 per cent, from $758M to $983M. Expansion was driven by increased contributions from Ashburton, Selwyn, Hurunui, Timaru and Waimate districts, where dairy growth is strong. Employment growth has also largely come from dairy farming both onfarm and offfarm (dairy processing, particularly in Timaru and Selwyn districts). The estimated net farm gate contribution of irrigation to Canterbury s GDP increased from $335M in 23 to $1,394M in 212. This increase was driven by an increase in gross margins per hectare from $1,167 to $3,134 as a result of high prices (dairy) and productivity gains associated with access to irrigation. 6

84 Part A: LTP 21525, Page A84 1year Financial Strategy docx Estimates by New Zealand Institute of Economic Research (NZIER) of future growth range between 2.1 per cent growth per year (lowproductivity scenario no new irrigation schemes, marginal efficiencies associated with better soil and water management practices) and 7.6 per cent growth per year (highproductivity scenario reflecting the Canterbury Water Management Strategy (CWMS) irrigation target of 85,ha by 24). Canterbury s hinterland agricultural GDP would increase by $.83B in the lowproductivity scenario, and $2.9B in the highproductivity scenario. On a conservative estimate, an additional 88,ha of irrigation will come onstream in the next ten years. More intensive farming will require greater innovation and application of technology. The availability of a skilled workforce is a potential brake on development both onfarm and offfarm, e.g. technical, data and systems skills, farm management, irrigation design and installation, trucking and transport, trades support, retail and advisory. Given a relatively low rate of projected population growth and an ageing population, particularly in rural Canterbury, a challenge is to attract and retain an appropriately skilled workforce both our own population (especially those aged years) and migrants. What does this mean for the Council and the community? Intensification of rural land use combined with rising expectations of water quality improvement increases expectations on Environment Canterbury to manage water wisely and well. These expectations require us to: monitor and understand surface and groundwater flows, water quality and ecology have comprehensive and effective resource management plans and consents facilitate ways for communities to progress both economic and environmental goals. A key response to the high levels of interest in water is the CWMS. leads the CWMS in partnership with Canterbury s territorial authorities and Ngāi Tahu. Sustainable development in Canterbury cannot be delivered by alone. It depends on effective working relationships and collaborative action between the Regional Council, territorial authorities, Ngāi Tahu and industry sector groups. This is a focus of s regional leadership portfolio of work, and the rationale for our investment in regional governance (including regional land transport planning), shared services and the Tuia relationship with Ngāi Tahu. The following section outlines the core components of the Financial Strategy. Rates The Council intends to provide a degree of certainty to ratepayers with respect to their rates bills. With this in mind, the overall increase in rates collected (based on the capital value used in setting the rating fraction) for each of the next ten years will not exceed 5.3 per cent per year. 7

85 Part A: LTP 21525, Page A85 1year Financial Strategy docx The slight decrease in rates in 222 comes about as follows: the specific air quality initiatives and rating for them cease at the end of 221 Waimakariri financial reserve will reach a level such that the demand for rate funding decreases. The level of rating ensures that current ratepayers are paying for the services they are using. The Council can achieve this by carefully managing costs, service levels and debts. The overall level of rates will be capped relative to total revenue. The Council is confident in its ability to provide and maintain existing levels of service and to meet additional demands for services within these limits. Limits Rates increase The increase in rates collected will be limited to 5.3 per cent plus any growth in rating base that occurs subsequent to setting the rating fraction. Total rates Rates will not exceed 6 per cent of total revenue in any given year. Net operating surplus/deficit The net operating surplus/deficit is defined as rates and other revenue excluding insurance proceeds, less expenditure including depreciation and interest. The net operating surplus demonstrates not only the Council s ability to deliver this LongTerm Plan s programmes, but also its ability to meet its future obligations. It represents the surplus available to the Council after having met its operating, financing and replacement capital expenditure obligations. The surplus is therefore available to set aside to meet future contingencies, reduce debt or fund capital expenditure arising from an increased level of service requirements or growth. The Council s forecast operating surplus margin is as follows. 8

86 Part A: LTP 21525, Page A86 1year Financial Strategy docx The noticeable spike in 221 arises from the New Zealand Transport Agency's contribution to fund a replacement of the bus ticketing system. The operating surpluses allow the Council to invest in the future and also ensure that debt levels are able to be managed. Asset development expenditure In terms of assets and investments, the Council s strategy is to maintain, in real terms, the value of the Council s assets and investments. There will be times when we will need to spend more on new assets. An asset or group of assets is identified as a strategic asset if it is considered that we need to retain ownership or control of it to meet our objectives. With respect to infrastructure assets such as flood protection works, the Council strategy is to maintain the current service potential of these assets in an as new condition and to standards set out in the asset management plans. (Refer 3year Infrastructure Strategy.) Where projects require a significant upfront cost but the projects provide longterm benefits, the strategy of the Council is to fund the initial cost by the use of debt. Debt is not a revenueraising tool but a method for spreading the upfront cost of a project over time. Debt spreads the responsibility for funding an activity across both current and future ratepayers, ensuring that all of those who benefit make a contribution to the funding of the project. This is referred to as intergenerational equity and ensures that one generation of ratepayers does not subsidise another generation of ratepayers. In borrowing to fund such projects, the Council s strategy is to first look for funding from any cash reserves it may have available prior to approaching external lenders. Effectively, this means that one section of the Council lends money to another; it it is referred to as internal borrowing, and is done because the cost of borrowing in this way is less than borrowing externally. Some longterm projects are of such a nature that financial contributions from third parties may be available provided the Council makes a matching contribution. The Council s strategy is to obtain as much financial leverage from this assistance as possible so as to reduce the financial burden on the ratepayer. The Council is looking to invest the $16.3M in longlife assets over the next ten years M 13.9M 9.2M 7.5M 8.6M 11.9M 4.3M 4.4M 3.5M 3.9M Expenditure on longlife projects can arise in three ways: 1. Renewals the replacement or maintenance of existing assets 9

87 Part A: LTP 21525, Page A87 1year Financial Strategy docx 2. LOS improvements where the Council believes the existing assets do not provide an appropriate level of service 3. Growth ensuring the Council has sufficient assets to support economic and population growth within the region. (Note that there is no capital expenditure specifically driven by population growth within the region, hence this does not appear in the graphs below.) The graphs show a nontypical high level of renewal in the first year, which is largely contributed to by the expenditure required to complete construction of the Tuam Street offices; other renewal amounts reflect typical asset replacement programmes. Renewals spike in 221, which represents investment in replacing our Metro ticketing system. The investment in levels of service increase is mostly related to improving the level of flood protection in the Waimakariri system over the next five years. Renewals In addition to regular asset replacements for vehicles and information technology, the major longlife assets or projects scheduled for renewal are as follows. Rebuild of our offices 1

88 Part A: LTP 21525, Page A88 1year Financial Strategy docx This item refers to the replacement Council office building currently under construction in Tuam Street, Christchurch, following the demolition of the existing building affected by earthquake damage. The site is to be rebuilt in a way that allows for flexibility in the future, and that would also protect ratepayer equity. The expected cost to complete construction of the Tuam Street offices over the next ten years is identified below: M.1M Level of service improvement A level of service improvement will result from the Waimakariri Flood Protection project which relates to the construction of a secondary stopbank to provide additional protection to the residents of Christchurch, Selwyn and Waimakariri. The estimated cost of the project is $19.9M over the remaining construction period. However, given the level of rates increase that would be required to achieve this, the Council has elected to spread the cost of construction over 25 years. The work will be funded by a loan to be repaid over 25 years via a targeted rate, general rate, works and services rate and income from reserve land leases. The loan has 2 years to run. The spreading of the cost is an important intergenerational issue; the stopbank will provide benefits to current ratepayers as well as future ratepayers. Using debt to spread the cost means that current ratepayers will not subsidise future ratepayers. The anticipated level of debt to fund the Waimakariri stopbank construction peaks at $18.8M in 22. There are also levels of service improvements being achieved through capital work on other schemes. These are detailed in the 3year Infrastructure Strategy M 5.6M 5.7M 4.1M 5.M 1.1M 1.M 1.1M.5M Growth There is no capital expenditure specifically and predominantly brought about by population growth. Asset management plans Asset management plans are the key planning tools for asset maintenance, future renewal and additional assets. Asset management plans have been prepared for critical assets based on assumptions consistent with this strategy, with the expectation that, within the parameters set for rates, levels of service can be maintained. This strategy supports the delivery of levels of service for each activity set out in the LongTerm Plan. The income and expenditure projections made within the financial estimates relate to the delivery plans for each activity. The financial implications for current levels of service have been assessed and included in the LongTerm Plan. Flood protection stopbanks and drainage schemes infrastructure maintenance These represent the Council s largest strategic asset at a value of $688M. Renewals of these assets are generally funded from operating revenue comprised of targeted rates, general rates, works and services rates, and income from reserve land leases. Rates are set at a level to ensure that renewals can be funded from this source and amount to $112.7M over the life of this tenyear Plan. Reserve land income amounting to $41M over the tenyear period is also used to fund renewal. Any surplus left after funding renewal of flood protection schemes is used either to pay off debt and interest associated with the schemes or to maintain flood protection financial reserves as a form of selfinsurance. 11

89 Part A: LTP 21525, Page A89 1year Financial Strategy docx Capital expenditure on flood protection and flood control works is undertaken to improve level of service and to renew assets not to maintain them. Existing levels of service are maintained by way of a regular repair and maintenance programme. The expected operating expenditure on flood protection and flood control works required to maintain existing levels of service currently provided by the Council over the next ten years is $12.5M. This covers keeping river fairways clear, maintaining berm buffer protection, repairing damage to stopbanks, keeping drains clear and stabilising works M 1.7M 11.3M 11.8M 12.3M 12.4M 12.7M 12.9M 13.3M 13.7M Debt and interest The Council retains the ability to use public debt to construct infrastructure assets or to finance investments where the benefits of the expenditure spread over a number of years. The use of public debt matches the costs of the expenditure with the benefits. The Council has the capacity to increase debt levels to cover additional expenditure. Council external debt is predicted at the end of the ten years to be $15.9M, with a peak in 218 of $32.2M. This level of debt represents a significant increase over the current existing levels and results from a combination of the following: Interestfree advances made by the Council as part of our Clean Heat project assistance programme were primarily funded by debt. No further advances are being made, so as these existing advances are repaid to us we will in turn repay and hence reduce our level of debt. These repayments will be completed in June 221. The reduction in debt levels resulting from the cessation of the Clean Heat project will be more than offset by the requirement to raise new debt to fund asset development expenditure proposed within this LongTerm Plan. The main contributor to this need will be the requirement to borrow to fund the construction of the Waimakariri secondary stopbank and the construction of new office premises in Tuam Street. The Council has considered the timing of the programmes and the associated borrowing required to ensure that this best meets the needs of current and future generations. The debt levels stated below are set as such to enable the Council to maintain the present levels of service and to meet the increased levels of service proposed in this Plan. 12

90 Part A: LTP 21525, Page A9 1year Financial Strategy docx Debt remains an important tool for ensuring intergenerational equity and for smoothing the demands made on ratepayers. When determining the sustainability of debt, a number of measures are used. While the limits on borrowing that form part of our liability management policy indicate that we could secure in excess of $15M of debt, the Council believes it is prudent to operate at a lower level and is targeting to keep the level of borrowing at no more than 6 per cent of annual rates. In 216 this limit equates to $54M. This level of debt enables planned capital expenditure for significant asset renewals such as the Tuam Street office rebuild, and for level of service increases such as the construction of the Waimakariri secondary stopbank. In addition, it provides the ability to increase debt funding in the event of unbudgeted disasters or emergencies and unforeseen events. Preserving the capacity to borrow in exceptional circumstances is part of the longterm strategy to be financially sustainable, and to be able to respond to emergencies and disasters. Limits Debt The absolute amount of external debt will not exceed 6 per cent of annual rates. The Council strategy to manage its interest rate risk is to ensure that core debt of $1M or more is funded by a proportion of fixed interest debt as follows: zero two years: 51 per cent two five years: 258 per cent five years+: 6 per cent. This is achieved by either using fixed rate loans or an interest rate swap derivative. This locks in a degree of certainty about interest costs for the Council. The Council's policy on the giving of securities for its borrowing is that the Council, in general, will not offer assets, other than special rates, as security for general liability management programmes without a separate Council resolution, other than for financing leases or hire purchase arrangements. Where appropriate, the Council may seek project funding that may have a charge over the project or specific assets rather than rates. The Council is intending to join the Local Government Funding Agency as a Guaranteeing Local Authority, in which case it is the Council s policy to provide as security a rates charge to secure obligations under the guarantee. The giving of rates as security means that our lenders can make us rate you more to repay their debts. This is why we have ensured that the proposed level of income is sufficient to meet principal and interest obligations associated with any debt we acquire. Insurance With the exception of flood protection stopbanks, the Council insures its assets against financial loss to the maximum level available within the insurance market, having regard to the associated risks and premium cost. The Council continues to selfinsure its flood protection stopbanks by maintaining financial reserves, which has proved to be an effective approach to date and removes reliance on the insurance market. Investments The Council holds treasury, equity and land investments on behalf of the regional community. In real terms, the Council intends to maintain the value of these investments in the long term. The Council intends to hold these investments for strategic reasons on behalf of the regional community. It should be noted that the Council does not rely heavily on investment income from its treasury and equity investments as these contribute only a very small percentage of revenue collected by the organisation. The Council s objectives in holding investments in land, treasury investments and equities are: to provide an income stream to reduce the Council s dependency on rates 13

91 Part A: LTP 21525, Page A91 1year Financial Strategy docx Cash to meet statutory obligations in relation to endowment properties to hold assets on behalf of the regional community for strategic protection/development of the region. The Council held $34.9M of cash, cash equivalents and treasury investments at 3 June 214. The Council s philosophy regarding managing financial investments is a conservative and riskaverse approach to ensure the security of public money. As a result of this, the Council s financial investment portfolio predominantly invests in money market securities and domestic bonds. The Council considers it prudent to hold cash to a level to support the balance of financial reserves to provide capacity to deal with unexpected events and to enable a smoother and more predictable rating level. The Council s financial reserves policy states that no less than 75 per cent of the minimum reserve level is held in a form readily converted to cash. This prudent approach helps ensure that when unexpected events occur we can continue to provide programmes delivering benefits to the community. The appropriateness of this approach was borne out during the earthquakes and global financial crisis as it reduced our reliance on banks, insurance and other lenders. This enabled a quick response to two expensive and pressing issues, namely repairs to stopbanks and reinstatement of bus services. Generally the Council s cash management practice is to use any surplus cash to support the financial reserves and minimise external levels of debt where this is consistent with its financial reserves policy. The minimum target rate of return on these investments is the rate determined by reference to the average of the ANZ/NZX 9 Day Bank Bill Index and the ANZ/NZX Corporate 'A' Grade index. Land At June 214 the Council held $186M of endowment land for soil conservation and river protection purposes. This land produces lease rental income and, by using these income streams to reduce the level of rating, the Council is effectively providing these returns back to the ratepaying community. There are statutory restrictions on the Council s ability to dispose of endowment properties; they are forecast to return $4.9M over the life of this LongTerm Plan. Equity The Council owns shares in Civic Assurance ($17,329 at 3 June 214). They are not expected to return a dividend over the next ten years due to uncertainty within the insurance industry. This investment had provided a regular dividend stream to the Council before the 21 earthquake. It is impractical and administratively inefficient to dispose of these shares. Civic Assurance benefits its shareholding councils with specific insurance products and by maintaining a competitive facility for local government. The Council sees value in having Civic Assurance in the market because of the broader benefits it will provide by helping maintain competitive tension. The Council also inherited a small holding of shares at no cost in the Marlborough Forestry Group as part of the reorganisation of local government in the late 198s. There is no targeted return on this investment as any dividend received is considered acceptable given there is no cost associated with this investment. This item is not significant and has returned an average of around $1, per annum over the past five years. Assumptions and uncertainties The LongTerm Plan and the Financial Strategy are prepared on the basis of certain assumptions and uncertainties. The nature of these assumptions means that each is sensitive to a range of factors that may lead to either over or underestimating the financial forecasts or the impacts of an activity. Assumptions Central government support levels The Financial Assistance Rate related to passenger transport, other than Total Mobility, is assumed as follows. 14

92 Part A: LTP 21525, Page A92 1year Financial Strategy docx % 51% 51% 51% 51% 51% 51% 51% 51% 51% The Financial Assistance Rate related to Total Mobility is assumed as follows % 6% 6% 6% 6% 6% 6% 6% 6% 6% Bus patronage The commerciality ratio, which refers to the amount of funding provided by farepaying passengers, is assumed to follow the pattern below % 48% 48% 48% 51% 52% 52% 55% 56% 56% 15

93 Part A: LTP 21525, Page A93 1year Financial Strategy docx Interest rates Interest rates over the life of this Plan are assumed as follows: Investing 4.69% 4.69% 4.69% 4.69% 4.69% 4.69% 4.69% 4.69% 4.69% 4.69% Borrowing 5.75% 5.75% 6.% 6.% 6.% 6.25% 6.25% 6.25% 6.25% 6.25% Cost adjustment local government and other indices The basket of goods that forms the inputs into local government is quite different from the basket that forms inputs into the running of a household. Therefore, the consumer price index is not an appropriate measure on which to base cost adjustments for local government. An independent assessment of likely cost increases facing local government has been prepared by Business and Economic Research Ltd. On this basis, the Council has applied the following ranges for cost indexation factors: Population labour: per cent per annum and averaging 2.25 per cent per annum over the tenyear period plant, goods and services: per cent per annum and averaging 2.75 per cent over the tenyear period capital expenditure: per cent per annum and averaging 2.96 per cent over the tenyear period public passenger services contracts subject to New Zealand Transport Agency indexation: 3 per cent per annum for the first year of the plan and 4 per cent each subsequent year flood engineering: 3.3 per cent per annum and average for the tenyear period. The average annual rate of growth for the Canterbury region is projected to be around.8 per cent to 231, slowing to.3 per cent by 246. Irrigation Demand for irrigation will continue to increase. Uncertainties Uncertainties are: Financial prudence population and land use development economic climate and effect on key producers in the region. Some of the key drivers that might have a significant impact include changes to national and international economic conditions the degree of third party support any review of statutory functions by central government. Planned performance will be achieved for: rates affordability for each year of the LongTerm Plan debt affordability for each year of the LongTerm Plan balanced budget benchmark for year preceding the LongTerm Plan and each LongTerm Plan year essential services benchmark for year preceding the LongTerm Plan and each LongTerm Plan year debt servicing benchmark for year preceding the LongTerm Plan and each LongTerm Plan year. Impacts of the Financial Strategy The Council has undertaken a rigorous prioritisation process across all planned work programmes. All work programmes have been reviewed to identify where changes in the levels of service, both increases and decreases, are possible or required. 16

94 Part A: LTP 21525, Page A94 1year Financial Strategy docx The Council has considered the overall impact of its Financial Strategy on the current and future environmental, economic, social and cultural wellbeing of the community and considers that the net overall effect of this LongTerm Plan will promote the four aspects of community wellbeing. 17

95 Part A: LTP 21525, Page A95 3Year Infrastructure Strategy

96 Part A: LTP 21525, Page A96

97 Part A: LTP 21525, Page A97 3year Infrastructure Strategy Contents Introduction 3 Purpose of Infrastructure Strategy and infrastructure covered 4 Geographic context 5 Infrastructure overview 6 Priorities and direction 7 Giving effect to the priorities 9 Most likely scenario, assumptions and uncertainties 13 Financial possible infrastructure work required over 3 years 14 2

98 Part A: LTP 21525, Page A98 3year Infrastructure Strategy Introduction The 214 amendment to the Local Government Act 22 required a 3year strategy to be prepared for the five different infrastructure types managed by territorial authorities and regional councils. manages only one of these infrastructure types flood protection and control works. This Strategy addresses only infrastructure relating to flood protection and control works. The Strategy describes the development and maintenance requirements of the key flood control infrastructure assets that Environment Canterbury looks after. These assets are made up in the main by stopbanks, floodgates and drains. 3

99 Part A: LTP 21525, Page A99 3year Infrastructure Strategy Purpose of Infrastructure Strategy and infrastructure covered The purpose of this Strategy is to identify any significant issues around flood protection and control works infrastructure that are facing the Canterbury community over the next 3 years ( ), and identify a mechanism for managing decisions around those issues, along with the timing for any key decisions required. This Strategy highlights that most of the required infrastructure is already in place, and the level of new infrastructure required over the next 3 years is minimal. A separate issue is the keeping of these existing infrastructure assets in 'as new' condition. The cost of the maintenance required to do this is more significant. 4

100 Part A: LTP 21525, Page A1 3year Infrastructure Strategy Geographic context Canterbury is New Zealand's largest region by area at 45,346km². The geography within the Canterbury region is widely varied, with quite different flood protection challenges: the braided river systems flowing from the Southern Alps with extensive floodplains steep valley systems and flat floodplains estuaries/tidal zones Kaikōura district with small, steep alluvial fans. Canterbury is the second largest region by population. Many of the urban areas are built on active floodplains. The flood risk to the greater Christchurch area from the Waimakariri River has required extensive flood control protection. manages 64 river and drainage schemes that collectively cover over 2,km of rivers and over 65km of drains. 5

101 Part A: LTP 21525, Page A11 3year Infrastructure Strategy Infrastructure overview The activity of flood protection began as an attempt to reduce the risk and create more certainty for settlement and development within the region. The infrastructure already built by has an asset value of $691M. The largest of these schemes, the Waimakariri Eyre Cust scheme, provides flood protection from the Waimakariri River to the greater Christchurch area. In 29, the value of assets on the floodplain afforded some benefit by the scheme was estimated to be $75B. The potential cost of a failure of the scheme to protect the greater Christchurch area from flooding from the Waimakariri River was estimated to be as much as $8B. Stopbanks The six schemes listed in the table below are particularly significant due to: Main stopbanks flood risk risk to resident populations size and value of the floodplain protected. Scheme Kaikōura rivers and drainage Ashley River/Rakahuri Waimakariri Eyre Cust Ashburton rivers/hakatere Orari Waihi Temuka Opihi catchment control Stopbank length (km) Communities and areas of direct benefit Kaikōura: 65km 2 Rangiora, Woodend, Pegasus, Kaiapoi: 126km 2 Christchurch, Kaiapoi: 895km 2 Ashburton: 27km 2 Temuka: 243km 2 Pleasant Point: approximately 18km 2 A further 25 mediumsized and small stopbank schemes, with a total of 176km of stopbanks, offer a level of flood protection to various smaller communities. These are of a small scale, serve rural areas and/or focus primarily on erosion control or drainage. Both the total value and the risk addressed by these medium/small scheme infrastructural assets are small compared with the major schemes. Other types of flood protection infrastructure As well as stopbanks, some areas are serviced by other types of erosion protection works or drainage infrastructure: Halswell drainage Te Waihora/Lake Ellesmere Rangitata River lower Rakaia River Ashburton Hinds drainage lower Waitaki River a number of smaller erosion protection and drainage schemes, which are maintained to reduce risks to localised communities. 6

102 Part A: LTP 21525, Page A12 3year Infrastructure Strategy Priorities and direction Direction set in the LongTerm Plan The three broad priority areas identified in the LongTerm Plan will continue: Canterbury Water Management Strategy (CWMS) Christchurch earthquake impacts and recovery Tuia work programme strengthening the relationship with Ngāi Tahu. The CWMS tends to support the continuation of existing flood protection infrastructure, but does not support further restriction of braided rivers. The CWMS targets most relevant to the provision of flood protection infrastructure are the goals to: maintain the extent of active braided floodplains and allow the dynamic nature of braided rivers to be exhibited apply integrated management Ki Uta Ki Tai mountainstosea approach improve quality of life and support economic prosperity. Under the CWMS, the Regional and Zone Implementation Programmes also include goals to implement catchmentbased approaches and management practices that support flood protection capacity and environmental outcomes. flood protection infrastructure earthquake recovery is largely completed. will continue to support Christchurch City Council in its earthquake recovery but, due to the provisions of the Christchurch District Drainage Act 1951, we are unlikely to become involved in building new river infrastructure within the city. The Tuia work programme is intended to improve the relationship with Ngāi Tahu. Principles of kaitiakitanga, protection of wāhi tapu, wāhi taonga, mauri and mahinga kai values need to be considered in any proposals for flood protection. The potential for negative impacts of flood management works on native biodiversity and mahinga kai values is of concern for rūnanga. For example, the use of willow and poplar for erosion protection rather than native vegetation, disturbance to bird nesting and fish habitat, and access to walkways and significant sites are of interest. The potential to improve drain management to support mahinga kai is identified as a significant opportunity. Floodplain management Flood protection and control works are longterm assets. They are built to reduce the risk to life and to assets, including land, buildings and other developments. Effective floodplain management planning reduces the need for new flood protection infrastructure by locating new developments in less hazardous areas or where there is already adequate flood protection infrastructure. has a programme of preparing floodplain management plans that will gradually cover the major floodplains of the region. These plans focus on avoiding risk for new development and protecting existing development. They consider the following issues: New developments provisions in the Regional Policy Statement require new building development to be located only where there is less than.5 per cent Annual Exceedance Probability (AEP). (An AEP of.5 per cent for a given flood level means that there is a.5 per cent chance of having a flood exceed that level in any one year.) This has largely removed the need for new largescale flood protection schemes. Protecting existing development we are presently increasing the level of flood protection for Christchurch city and Kaiapoi by building secondary stopbanks for the Waimakariri River. There is also ongoing work for the Ashley River, but for most other rivers the identified capital works have now been completed. Flood protection priorities In developing this strategy, has determined that the strategic priorities for the flood protection activity include: focusing on the significant infrastructure requirements while not losing sight of the specific communities and their needs maintaining an equitable and sustainable approach to funding flood protection at regional and local levels 7

103 Part A: LTP 21525, Page A13 3year Infrastructure Strategy providing agreed levels of flood protection introducing a system of improving information through river scheme reviews ensuring that the infrastructure remains aligned with and supportive of economic growth and/or changes to population and land use. These priorities will influence 's thinking and decisionmaking for flood protection infrastructure. 8

104 Part A: LTP 21525, Page A14 3year Infrastructure Strategy Giving effect to the priorities Community input and decisionmaking Targeted rates rely on accurate identification of who benefits from any improvements, and assessment of the degree of benefit. Decisions regarding river scheme targeted rates and financial expenditure are made by elected community committees. There is a public meeting every three years in each river rating district to elect a river rating district liaison committee (RDC). This committee then meets every year to make decisions around the flood protection required within the community and its funding, bearing in mind the cost that would have to be met through targeted rating within that community. These elected RDCs will continue to play an important role in decisionmaking for flood protection infrastructure. That approach centres on the committees deciding local needs and subsequent funding within 's broader policy and planning framework. This broader Council framework includes the Revenue and Financing Policy, which influence who pays and how, and strategic decisions and commitments on important infrastructure. The RDC s annual decisions on the levels of flood protection identify who benefits and to what extent within their communities. Specific funding arrangements can then be formalised, with targeted rating of property owners being an important mechanism. Committees preserve a relatively fair balance of rating, and generally operate with maintenance of the status quo as their normal state. Recommendations from the RDCs are conveyed to for adoption; remains the ultimate decisionmaker. Service levels, expenditure and funding Existing flood protection infrastructure such as stopbanks is fully maintained in an as new condition to meet service needs. It may incur damage in a flood or other hazard event and does need ongoing maintenance, but generally does not need replacement. There are some minor exemptions identified as replacements in the table on page 15, mainly as a result of coastal erosion. As such, Environment Canterbury does not depreciate this infrastructure and funds maintenance mainly through rates funding. However, income from endowed or vested land that manages also provides some funding. Each scheme has financial reserves and these are used also to smooth financial impacts of flood or other hazards. New flood protection infrastructure such as the Waimakariri Flood Protection Project (WFPP) that significantly increases current levels of service is typically debt funded. As Canterbury now has most of the flood control infrastructure it requires, there is little need for new infrastructure. The main exception to this is completion of the $4M tenyear programme of work making up the WFPP and construction of the secondary stopbank system protecting Christchurch city, Waimakariri district and Selwyn district in the event of overtopping or breaching of the primary system. Other new infrastructure still required is listed in the tables on pages Knowledge and planning is seeking to improve its understanding of Canterbury s major rivers the relationship between flood management and natural systems and associated values. River modelling is an essential approach that utilises information to assist decisionmaking associated with river management. requires better information to improve the quality of decisions based on those models. To reduce uncertainty and risk, we intend to introduce a programme of river scheme reviews to update what we know about each river and how we manage them. The proposed river scheme reviews will consider: history of the scheme and any resultant legacy issues asset condition and management, including the review of the maintenance work programme improved understanding of flood hydrology and prediction of flood events, both in terms of AEP flood levels and also prediction of climate change impact on intensity and frequency of storms that could change normal patterns 9

105 Part A: LTP 21525, Page A15 3year Infrastructure Strategy improved understanding of the relationship between flood management and natural systems and associated values flood capacity reviews, including setting target bed levels and effect of gravel extraction on capacity economic and social consequences ensuring flood protection aligns with changing population levels, land use and the value of assets protected. Schedule of river scheme reviews The order of priority for river scheme reviews is determined by the following: It is necessary to complete reviews of the 14 key rivers (refer to the table below). These rivers will all have at least one full river scheme review in each 3year period. Other priority criteria in selecting rivers for river scheme review are: population numbers that could be threatened by the river changes to local population or property value, or potential climate change impacts since the flood protection infrastructure was designed or when last reviewed time since last major review of the river degree of uncertainty as to whether flood works are presently adequate or the likelihood that the river may need improvements to infrastructure. This includes: understanding of flood hydrology, which changes in response to floods or their absence aggradation affecting flow capacity susceptibility to more extreme weather events and conditions arising from climate change adequacy of freeboard allowance structural integrity, including foundation conditions, adequacy of original design, physical condition, erosion protection community understanding and acceptance of risk. Future change economic, population and land use Changing land use from urbanisation or increased irrigation increases asset value and economic potential of assets protected. This is already a major factor in the decisionmaking process when RDCs meet. Committees consider what flood protection will be needed for the level of economic activity expected within the community and whether options proposed are affordable. Population and land value considerations are also built into the river scheme review process. As Canterbury now has most of the flood control infrastructure required, there is little need for new infrastructure. The main exception to this is completion of the $4M tenyear programme of work making up the WFPP. This project is currently in year five, and consists of the upgrade of existing Waimakariri River flood protection infrastructure and the construction of a secondary stopbanking system to reduce flood risk and protect Christchurch city, Waimakariri district and Selwyn district. Schedule of river scheme reviews in order of priority River scheme Year for river scheme review Year of last major review/ strategy Notes Scale of probable additional works (1) Lower Waitaki 215/ Draft report produced 215. Possible reduction in erosion protection works? Halswell drainage district 216/ Small. Increase capacity of some drains to counter increased flows (urbanisation and irrigation effects). 1 Assume small works occur one year after review, medium onetothree years after review and large onetoten years after review. 1

106 Part A: LTP 21525, Page A16 3year Infrastructure Strategy River scheme Year for river scheme review Year of last major review/ strategy Notes Scale of probable additional works (1) Kaikōura rivers and drainage 217/18 23 Works identified in 23 strategy mostly complete. Decision required re land acquisition for sediment traps. Medium. Increase resilience (greater allowance for channel and sediment movement). Ashley River 217/ Variety of recent reports relevant floodplain management plan, bed level investigation, flood frequency, floodplain modelling, stopbank condition assessment, geotechnical investigation, etc. CWMS Zone Implementation Programme asks if scheme should be extended. Medium. Increase resilience. Consider increased level of service. Opihi River 218/ (1996 Pleasant Point) Floodplain management plan Medium. Increase resilience. Reconsider level of service Selwyn River 218/ Aggradation identified as an issue. Floodplain management plan due 214/15. Lower reach sensitive to decisions about Te Waihora/Lake Ellesmere level. Small. Consider economics of additional structural works. Limited rating base so limited or no change to level of service likely. Ashburton Hinds drainage 219/ No known issues. Has operated well for many years. None anticipated. Upper and lower Hinds River 219/ Small. Increased resilience. Small rating base so no change to level of service likely. Rangitata River 22/21 Value of land protected has increased substantially. Small. Consider economics of improving resilience (erosion buffer). Limited rating base so limited or no change to level of service likely. Orari Waihi Temuka rivers 22/21 Floodplain management plan underway 214/15. Medium. Increase resilience. Pareora River 221/22 Floodplain management strategy 24. Small. Small rating base so no change to level of service likely. Ashburton rivers 221/22 2 Ashburton town stopbanking completed 21. North branch ongoing aggradation compromising capacity, managed by gravel extraction dependent on external demand. Medium. Increase resilience. Consider modest increase in level of service (freeboard). Lower Rakaia River 222/23 n/a Draft berm management strategy prepared 213/14. Small. Planting plan approximately $1M, timeframe uncertain. No structural works likely. 1 Assume small works occur one year after review, medium onetothree years after review and large onetoten years after review. 11

107 Part A: LTP 21525, Page A17 3year Infrastructure Strategy River scheme Year for river scheme review Year of last major review/ strategy Notes Scale of probable additional works (1) Waimakariri Eyre Cust rivers 222/ WFPP will be complete. Coastal reach sensitive to sea level rise. Large. Continued improvements to resilience (2) likely to remain economic. Response to projected sea level rise may not need to be immediate. Not included in the table is Te Waihora/Lake Ellesmere since many stakeholders are driving a variety of studies related more to lake health than drainage/flooding, and a review of drainage/flooding is not required. While the Selwyn Waihora Zone Committee is beginning to consider a possible outlet structure, it is still a long way from any understanding or agreement on how this might possibly be accomplished, and the assumption for Te Waihora/Lake Ellesmere is that the current opening regime will continue with no outlet structure. Sea level rise may eventually lead to the need to retreat from the lowest adjacent land since flood protection intervention is not likely to be economically viable. 1 Assume small works occur one year after review, medium onetothree years after review and large onetoten years after review. 2 Increased resilience refers to improving stopbank batter slopes or relocating sections of stopbank to reduce the likelihood of being affected by erosion, with no change to the level of service. 12

108 Part A: LTP 21525, Page A18 3year Infrastructure Strategy Most likely scenario, assumptions and uncertainties The 214 amendment to the Local Government Act requires identification of the most likely scenario impacting infrastructure requirements along with assumptions, uncertainties and potential impacts of these uncertainties. The probable future scenario is: 1. Climate change bringing greater frequency and intensity of storms and sea level rise; however, changes within the 3year planning horizon will be modest 2. Reduced, but still positive, economic growth as the greater Christchurch rebuild is completed 3. Some growth in demand for flood protection (as value of land and improvements increases with irrigation and intensification, and population grows around urban areas). This scenario is based on the following assumptions: Establishment of a programme of regular river scheme reviews may lead to recommendations for new infrastructure, but most needed infrastructure is now in place and it is anticipated that the scale of new infrastructure required will be low. Higher frequency and intensity of storms will require some additional funding for both maintenance and new infrastructure, but funding growth will be low. Costs of establishing and maintaining flood protection works will increase gradually in line with inflation. Earthquake resilience is already established, but some repairs will be required following an earthquake event. The current management strategy of perpetual renewal, i.e. maintaining as new, will continue. Uncertainties under this scenario are: The degree of increased intensity and frequency of storms. This is assumed to be low within the 3year strategy horizon. The rate of increase in value of assets that need to be protected. Community and cultural drivers the CWMS implementation programmes envisage a wide variety of investigations aimed at improving integration of water management. This may impact new flood protection provision and/or add cost to maintaining existing systems, but broad community representation in CWMS should ensure that recommendations are supported for funding by the community. The impact of greater cognisance of Ngāi Tahu values, which may alter how erosion protection plantings and drain management are undertaken. The potential impact of these uncertainties is as follows: Increases in the value of assets protected, and in storm intensity and frequency, will impact demand for flood protection, but this demand is largely selfcorrecting since communities, working through elected RDCs, will set their own priorities for the level of flood protection required in line with their ability to pay for it. A similar outcome may be expected for initiatives coming out of CWMS. Recommendations will be those supported by the community for community funding. 13

109 Part A: LTP 21525, Page A19 3year Infrastructure Strategy Financial possible infrastructure work required over 3 years The following tables provide 's projections of expenditure over the 3year period (LongTerm Plan for ten years , and the subsequent 2 years to 245). It also associates the timing of expenditure for various flood protection schemes over that 3year period. The funding associated with this expenditure is complex given the local interests and their relationship and contribution to various river schemes; however, it can be demonstrated in general terms as follows: 1. Larger, more significant flood protection schemes as a percentage of total funding for these schemes, there is a larger regional rating component, i.e. targeted rate across the region. 2. Modest to smaller schemes as a percentage of total funding for these schemes on page 12 there is a greater degree of local funding, i.e. targeted rate across a district and specific properties. The financial projections in the final table (page 15) embody the assumptions presented on page 12, with the following key assumptions: Higherfrequency storms will occur and their impact will require an increase, albeit small and gradual, in maintenance expenditure. These storm events will not require new assets, but rather the restoration of asset performance to current standards. In other words, the integrity of the infrastructure is expected to remain over the 3year period. Economic development within the region will not require new flood protection infrastructure. In other words, there is an expectation that economic development will not be constrained by the existing flood protection network, albeit it is subject to the two assumptions listed above. Implementation of the CWMS is expected to result in changes to aspects of 's approach to managing the flood protection infrastructure. There is an assumption that any such change can occur within the current financial projections. Projections for flood control infrastructure expenditure in the table on page 15 show expenditure for both maintenance and capital works. Details of major new infrastructure required Orari Waihi Temuka Realign Orari stopbank and berm upstream of SH1 within the next fivetoten years: $25,. Realign stopbanks and drainage system at Opihi mouth within the next tento15 years: $5,. Pareora Provide uniform capacity by increasing capacity at selected sites within the next five ten years: $15,. Rangitata Build new stopbank to protect south huts, probably within the next five years: $5,. Seadown drain Retreat and build new stopbank, etc., due to coastal erosion, 3yearly: $5,. Extend pipes inland due to coastal erosion: $55, within the next five years, then tenyearly at $75,. Taitarakihi Upgrade culverts under railway line within the next five ten years: $25,. Waimakariri Secondary stopbanks complete remaining five years of tenyear project. Continue improvements to primary stopbanks. Wainono Undertake major repair of existing back end of Box within the next five years: $1,. 14

110 Part A: LTP 21525, Page A11 3year Infrastructure Strategy Within the next ten 15 years, extend to the Box at landward end: $5,. Realign Hook Beach drain every 2 years due to coastal erosion: $25, each time. Waihao It is unlikely that Waimate District Council will replace the severely damaged Bradshaws Bridge. Capacity issues in the lower reach could be addressed through stopbank realignment, fairway and berm work over about 5m upstream and downstream of the damaged bridge: $25,. 15

111 Part A: LTP 21525, Page A111 3year Infrastructure Strategy Table 4 Financial 3year projections for infrastructure work Maintaining existing asset 15/16 16/17 17/18 Maintenance $ 1,449 1,694 11,251 Capital works to replace existing infrastructure $ Ashburton OrariWaihiTemuka Seadown 55 WaimakaririEyreCust Wainono Waihao Other Total replacement Capital works to improve levels of service (LOS) $ Pareora Rangitata Taitarakihi Waimakariri secondary 3,915 4,694 4,72 Ashley 79 Total to improve LOS 4,75 4,694 4,72 Total capital works $ 5,633 5,596 5,652 * Five years 18/19 11, ,176 3,191 4,135 19/2 12, , ,431 3,881 4,956 2/21 12, ,7 1,92 1,92 21/22 12,657 1,4 1,4 1,4 22/23 12,889 1,75 1,75 1,75 23/24 13, /25 13, * 73, ,25 1,25 335* 8, * 88, * 11,

112 Part A: LTP 21525, Page A112 Forecast financial information

113 Part A: LTP 21525, Page A113 To the reader Independent auditor s report on Environment Canterbury s 215/25 LongTerm Plan I am the AuditorGeneral s appointed auditor for (the Regional Council). Section 94 of the Local Government Act 22 (the Act) requires an audit report on the Council s LongTerm Plan (the plan). I have carried out this audit using the staff and resources of Audit New Zealand. We completed the audit on 25 June 215. Opinion In my opinion: the plan provides a reasonable basis for: longterm, integrated decisionmaking and coordination of the Council s resources; and accountability of the Council to the community; the information and assumptions underlying the forecast information in the plan are reasonable; and the disclosures on pages A189 to A193 of Part A of the LTP represent a complete list of the disclosures required by Part 2 of the Local Government (Financial Reporting and Prudence) Regulations 214 and accurately reflect the information drawn from the Regional Council s audited information. This opinion does not provide assurance that the forecasts in the plan will be achieved, because events do not always occur as expected and variations may be material. Nor does it guarantee complete accuracy of the information in the plan. Basis of Opinion We carried out our work in accordance with the AuditorGeneral s Auditing Standards, relevant international standards and the ethical requirements in those standards. 1 We assessed the evidence the Council has to support the information and disclosures in the plan and the application of its policies and strategies to the forecast information in the plan. To select appropriate audit procedures, we assessed the risk of material misstatement and the Council s systems and processes applying to the preparation of the plan. Our audit procedures included assessing whether: the Council s financial strategy, and the associated financial policies, support prudent financial management by the Council; the Council s infrastructure strategy identifies the significant infrastructure issues that the Council is likely to face over the next 3 years; the information in the plan is based on materially complete and reliable asset and activity information; 1 The International Standard on Assurance Engagements (New Zealand) 3 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and The International Standard on Assurance Engagements 34: The Examination of Prospective Financial Information. the Council s key plans and policies have been consistently applied in the development of the forecast information; the assumptions set out within the plan are based on the best information currently available to the Council and provide a reasonable and supportable basis for the preparation of the forecast information; the forecast financial information has been properly prepared on the basis of the underlying information and the assumptions adopted and complies with generally accepted accounting practice in New Zealand; the rationale for the Council s activities is clearly presented and agreed levels of service are reflected throughout the plan; the levels of service and performance measures are reasonable estimates and reflect the main aspects of the Council s intended service delivery and performance; and the relationship between the levels of service, performance measures and forecast financial information has been adequately explained within the plan. We did not evaluate the security and controls over the electronic publication of the plan. Responsibilities of the Council and auditor The Council is responsible for: meeting all legal requirements affecting its procedures, decisions, consultation, disclosures and other actions relating to the preparation of the plan; presenting forecast financial information in accordance with generally accepted accounting practice in New Zealand; and having systems and processes in place to enable the preparation of a plan that is free from material misstatement. I am responsible for expressing an independent opinion on aspects of the plan, as required by sections 94 and 259C of the Act. I do not express an opinion on the merits of the plan s policy content. Independence We have followed the independence requirements of the AuditorGeneral, which incorporate those of the External Reporting Board. Other than our work in carrying out all legally required external audits, we have no relationship with or interests in the Council or any of its subsidiaries. Bede Kearney Audit New Zealand On behalf of the AuditorGeneral Christchurch, New Zealand

114 Part A: LTP 21525, Page A114 Forecast financial information Contents Financial overview Te pūtea he tiro whānui 3 Groups of activities financial summary 5 Financial information He kōrero pūtea 7 Accounting policies Ngā kaupapa kaute 9 Appendix 1: Funding impact statement (rating disclosures) 24 Appendix 2: Funding impact statement 57 Appendix 3: Financial prudence 77 2

115 Part A: LTP 21525, Page A115 Forecast financial information Financial overview Te pūtea he tiro whānui Forecast financial information contained in this LongTerm Plan is developed on a projectbyproject basis incorporating a number of significant forecasting assumptions. The assumptions and risks underlying the financial estimates are outlined on page 6. The Council authorised the prospective financial statements on 25 June 215. Council and management of 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 results have been incorporated within the prospective financial statements. These financial statements shall not be updated. Financial summary operational expenditure We are forecasting total operational spending of $1.79B across our seven portfolios during Air quality 2. Biodiversity and biosecurity 3. Canterbury Water Management Strategy 4. Transport, greater Christchurch rebuild and urban development 5. Hazards, risks and safety 6. Planning, consents and compliance 7. Regional leadership. Operational expenditure is the cost of providing the level of service in a given year and includes depreciation on assets. Sources of funding During expects to receive $1.8B to fund portfolio expenditure from the following sources: General rates 2% Targeted rates 37% Government and other grants 16% User pays and other income 27%. The operating income and expenditure disclosed in this financial summary include income and expenditure for activities that form part of the groups of activities. An adjustment has been made to include interest on reserves other than general and targeted rate reserves, business unit results and insurance proceeds that do not relate specifically to a group of activities. Details are set out in the following table. 3

116 Part A: LTP 21525, Page A116 Forecast financial information Financial projection ($s) for all portfolios (including inflation) Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 General rates 3,95 31,18 33,51 34,138 35,54 36,454 37,46 37,988 38,937 39,598 4,782 Targeted rates 54,187 58,186 6,962 63,78 66,45 67,747 7,196 69,597 7,168 72,89 74,15 Grants 26,137 27,637 28,392 26,82 27,242 27,57 31,958 29,297 29,465 3,424 31,432 User pays/other 37,731 37,546 39,832 41,391 42,966 46,193 48,52 5,14 54,151 56,54 58,714 Total income 149,6 154, , ,38 172, ,91 187, , , ,651 24,942 Operating expenditure 153,94 155, , ,59 17, , ,48 186, , ,133 24,819 Operating surplus/(deficit) (4,898) (1,449) 3,314 1,53 1,374 2,53 5, , Reconciliation of group activities to financial statements Operating surplus/deficit (4,898) (1,449) 3,314 1,53 1,374 2,53 5, , Business unit results, insurance proceeds, interest on other reserves 13,944 1, ,15 1,313 1,577 1,835 2,91 Operating surplus/deficit per financial statements 9,45 (331) 3,358 2,98 2,161 3,433 6,632 1,738 2,63 2,352 2,214 In general, the forecasts contained in the individual group of activity summaries and in the financial statements indicate the following: Any deficits will be funded from existing reserves only to the extent that s ability to meet its annual commitments to maintain infrastructural assets and to reasonably provide for contingencies is not compromised. A healthy financial position will be maintained with net worth or equity increasing over time. Liquidity position will remain stable over time with shortterm assets outweighing shortterm debt and a healthy cash position. Borrowing will fund the Clean Heat Loan Scheme and will be offset by an advance to ratepayers of the same value and term secured by a targeted rate on the individual properties. In addition, borrowing is expected to fund the ongoing construction of the secondary Waimakariri stopbank flood protection scheme, which is also secured by a targeted rate in the catchment district. Figures for general and targeted rates are net of estimated remissions (adjusted annually for inflation). Remissions on Māori land are not significant. Details of capital expenditure, including renewals, replacements and maintenance and funding sources, are set out in Appendix 2. The basis for selecting funding sources is detailed in the funding and financial policies of this LongTerm Plan This document is available on our website ( from our Christchurch and Timaru offices, or through Customer Services on tel

117 Part A: LTP 21525, Page A117 Forecast financial information Groups of activities financial summary Operating revenue Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Air quality 2,653 3,797 3,457 3,513 3,57 3,86 3,99 2,918 2,981 3,854 3,982 Biodiversity and biosecurity 8,892 7,664 8,77 8,51 9,969 1,227 1,498 1,773 11,84 11,419 11,782 Canterbury water management strategy 22,21 23,937 24,298 25,79 26,312 27,16 28,67 28,233 28,976 29,84 3,732 Transport, Greater Christchurch rebuild and urban development 63,926 67,774 72,129 72,98 75,464 78,128 85,219 84,685 87,847 91,17 94,43 Hazards, risks and safety 24,679 24,371 25,654 26,455 27,396 27,827 28,183 27,89 28,333 28,659 29,299 Planning, consents and compliance 16,26 15,174 15,866 16,343 16,52 17,69 18,69 18,658 19,187 18,923 19,512 Regional leadership 1,629 11,76 12,125 12,529 12,951 13,288 13,721 13,91 14,314 14,822 15,24 Total revenue from groups of activities 149,6 154, , ,38 172, ,91 187, , , ,651 24,942 5

118 Part A: LTP 21525, Page A118 Forecast financial information Operating expenditure Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Air quality 3,83 4,36 3,785 3,794 3,833 3,896 3,97 2,927 2,981 3,854 3,982 Biodiversity and biosecurity 11,137 9,153 8,7 8,51 9,969 1,227 1,498 1,773 11,84 11,419 11,782 Canterbury water management strategy 22,551 23,967 24,281 25,775 26,293 26,997 28,46 28,211 28,944 29,772 3,7 Transport, Greater Christchurch rebuild and urban development 64,824 68,747 7,98 73,649 75,91 78,364 82,331 85,366 88,528 91,851 94,875 Hazards, risks and safety 25,52 22,14 23,164 23,948 25,23 25,196 25,591 26,225 26,841 27,73 28,412 Planning, consents and compliance 16,26 15,225 15,866 16,343 16,52 17,69 18,69 18,658 19,187 18,923 19,512 Regional leadership 1,783 12,425 12,145 12,499 13,268 13,11 13,543 14,41 14,14 14,611 15,554 Total expenditure on groups of activities 153,94 155, , ,59 17, , ,48 186, , ,133 24,819 6

119 Part A: LTP 21525, Page A119 Forecast financial information Financial information He kōrero pūtea Financial assumptions The forecast financial information contained in this LongTerm Plan is based on assumptions that the Council reasonably expects to occur at the date of adoption. The main purpose of this document is to provide users with information about the core services the Council intends to provide to ratepayers, the expected cost of those services and, as a consequence, how much the Council requires by way of rates to fund the intended levels of service. The information may not be suitable for other uses. Actual results achieved are likely to vary from the information presented and these variations may be material. Prospective financial information in this document will not be updated subsequent to its adoption. Significant assumptions The financial projections in this LongTerm Plan are based on the following assumptions: Pricelevel adjustments for inflation have been included in the figures. Pricelevel adjustments have been derived from a variety of sources including those recommended to local government by Business and Economic Research Ltd. An average pricelevel adjustment of approximately 3 per cent has been applied. The risk is that actual price movements may not reflect those projected and, therefore, the actual cost of services might be different to that indicated. Population growth across the Canterbury region has been addressed in the financial strategy. There remains the risk that the population, number of new properties or rating base will differ from that projected and those current levels of service may not be appropriate to meet the needs of the population: Where growth impacts directly on our functions, this has been factored directly into levels of service and targets, e.g. patronage targets for public passenger transport. Where the growth impact is indirect, such as that arising from increased subdivision or pressure on infrastructure, this is accommodated through implementation of policies and rules in plans and strategies. Rates of implementation reflect the pressure and demand for services experienced in the recent past. Rates Given the security provided under the Local Government (Rating) Act 22, all rates debts are considered collectable, but delays in payment may be more common in areas significantly affected by the earthquakes. An allowance for remissions has been provided for properties in the red zones and for properties affected by notices issued under section 124 of the Building Act 24 to properties in the Port Hills affected by rockfall hazards in the forecast for 215/16 as this facility will cease in July 216. Insurance The Council will continue to perform its existing range of activities in accordance with current Council policies. It is also assumed there will be no significant changes to legislation resulting in increased compliance or other costs to the Council. The risk remains that Council may revise these activities to reduce or increase levels of service to those currently provided. Central government grant and subsidy levels will be maintained at consistent levels from year to year. There remains a risk that central government financial assistance will be below the assumed rate. To meet the shortfall, an alternative source of funding will be required or levels of service will decrease. Investments will earn interest at an average of 4.7 per cent. The risk is that a lower return on cash investments will be received. Cash reserves will be available to fund some services, thereby reducing the amount to be funded by rates. The risk is that cash reserves will not be sufficient to meet requirements. 7

120 Part A: LTP 21525, Page A12 Forecast financial information The term of loans raised is three years for finance leases and up to 1 years for the Clean Heat Loan Scheme. The rate level has been set to ensure there is sufficient cash to repay the loan over this term. Internal borrowing will be charged interest at a rate equal to the average rate earned on investments during the year. Where external borrowing is required, market interest rates will be payable. On average, interest rates of 6.1 per cent have been applied. Interest rates on borrowings may differ from the assumed rate. The Council has modelled the balances of the Clean Heat Loans Scheme on the basis that 6 per cent will be repaid before the end of the term. The Council has made a number of assumptions about the useful lives of its assets. The detail for each asset category is reflected in the statement of accounting policies. The useful lives are consistent with the Council s experience with respect to replacement. The risk remains that the life of the asset may be different to the rate disclosed. Capital expenditure, excluding catchment works, Civil Defence, regional parks and public passenger transport, will be able to be funded from the Asset Replacement Reserve or Building Proceeds Reserve. Civil Defence, regional parks and public passenger transport capital expenditure will be able to be funded from funds held by the applicable reserve. Catchment works capital expenditure for the Waimakariri secondary stopbank will be funded by debt. Revaluations of fixed and infrastructural assets have not been included in these forecasts. They have not been included as the revaluation impact is uncertain and not considered to be material to the overall statement of comprehensive income or funding decisions and the level of rates the Council forecasts. No adjustment has been made to financial projections to reflect the potential impact of climate changerelated charges on the costs of electricity, natural gas and other charges. has not included estimated costs or income potentially derived from the Emissions Trading Scheme because of the uncertainty and difficulty in quantifying these costs. The Council is not aware of any information that indicates a high degree of uncertainty surrounding the above assumptions. All significant assumptions have been documented. Balanced budget The programme of work set out in this document will result in surpluses credited to existing reserves. Where programmes result in deficits for groups of activities, the Council approves the use of reserves on the basis that the Council's ability to meet longterm commitments is not compromised. 8

121 Part A: LTP 21525, Page A121 Forecast financial information Accounting policies Ngā kaupapa kaute Reporting entity is a regional local authority governed by the Local Government Act 22. is a Public Benefit Entity. The primary objective of a Public Benefit Entity is to provide goods and services for regional or social benefit. If any equity has been provided, it is with a view to supporting that primary objective rather than for a financial return. Basis of preparation The prospective financial statements of have been prepared in accordance with the requirements of the Local Government Act 22, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice (NZGAAP). The financial statements comply with Public Benefit Entity International Public Sector Accounting Standards (PBE IPSAS) and other applicable financial accounting standards. The financial statements have been prepared in accordance with Tier one PBE standards and with NZGAAP as it relates to prospective financial information and FRS 42 Prospective Financial Statements. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand ($). The functional currency of is New Zealand dollars. Measurement base The financial statements are prepared using a measurement base of historical cost modified by the revaluation of certain assets as set out in the specific accounting policies below. Specific accounting policies The following accounting policies, which materially affect the measurement of results and financial position, have been applied consistently to all years presented from 1 July 215 unless otherwise stated. Exchange and nonexchange transactions Exchange transactions are transactions in which the Council receives assets or services, or has liabilities extinguished, and directly gives approximately equal value to the other party in exchange. In a nonexchange transaction, the Council receives value from another entity without directly giving approximately equal value in exchange. Revenue recognition Revenue is measured at the fair value of consideration received. All revenue is recognised when it is billed or earned on an accrual basis, with the following exceptions: rates revenue is recognised when levied general rates and targeted rates are nonexchange transactions. Grants are recognised when any conditions are complied with. Grants are nonexchange transactions. New Zealand Transport Agency passenger services subsidies are recognised upon entitlement. New Zealand Transport Agency subsidies are grants and, therefore, are nonexchange transactions. Dividends are recognised net of imputation credits when the right to receive payment has been established. Dividends are exchange transactions. Profits on significant contracts are recognised on a percentage of completion basis. Profits on minor contracts are recognised when contracts are completed. 9

122 Part A: LTP 21525, Page A122 Forecast financial information Interest revenue is recognised using the effective interest method. Interest is an exchange transaction. User pays income is an exchange transaction. Other income is considered a nonexchange transaction. Budget figures The budget figures in the financial statements are those approved by as part of the annual planning process. The Council has approved no additional expenditure outside the planning process. The budget figures have been prepared in accordance with New Zealand Generally Accepted Accounting Practice and comply with NZ PBE IPSAS and are consistent with the accounting policies adopted by the Council for the preparation of these financial statements. Critical accounting estimates and assumptions The financial statements are prepared using estimates and assumptions concerning the future and may differ from the subsequent actual results. Estimates and assumptions are continually reviewed and are believed to be reasonable under the circumstances. There are no estimates or assumptions that are likely to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Taxation Income tax expense comprises both current tax and deferred tax, and is calculated using tax rates that have been enacted or substantively enacted by balance date. Current tax is the amount of income tax payable based on the taxable surplus for the current year, plus any adjustments to income tax payable in respect of prior years. Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Current tax and deferred tax are charged or credited to the surplus or deficit, except when the tax relates to items charged or credited directly to equity, in which case are dealt with in other comprehensive income. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that taxable surpluses will be available against which the deductible temporary differences or tax losses can be utilised. Goods and services tax The financial statements have been prepared exclusive of goods and services tax (GST) with the exception of receivables and payables, which are stated with GST included. The net amount of GST recoverable from, or payable to, Inland Revenue is included as part of receivables or payables in the statement of financial position. The net amount of GST paid to or received from Inland Revenue, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST. Receivables Receivables may include both current and annual amounts due and are stated at cost less any impairment losses. Trade and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Clean Heat loans issued at nil interest rates are initially recognised at the present value of their expected future cash flows, discounted at the current internal rate of return for a similar asset/investment. They are subsequently measured at amortised cost using the effective interest rate method. The difference between the face value and present value of expected future cash flows of the loan is recognised in the statement of comprehensive revenue and expense as an expense. 1

123 Part A: LTP 21525, Page A123 Forecast financial information A provision for impairment of receivables is established when there is evidence that will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the assets carrying amount and the present value of the estimated future cash flows, discounted using the effective interest rate method. Inventory Inventories (such as spare parts and other items) held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at the lower of cost and net realisable value. Investments classifies its financial assets into four categories: the classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and reevaluates this designation at every reporting date. Investments are valued according to the following classifications. Financial assets at fair value through surplus/deficit: This category has two subcategories: financial assets held for trading; and those designated at fair value through surplus/deficit at inception. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management. Derivatives are also categorised as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are either held for trading or are expected to be realised within 12 months of the balance date. After initial recognition they are measured at their fair values. Gains or losses on measurement are recognised in the surplus/deficit. The managed investment portfolio is recognised as held for trading and recorded under current investments. Loans and receivables: These are nonderivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the surplus/deficit. Clean Heat loans are categorised as loans and receivables and have both a current and noncurrent portion. Due to their material value they are disclosed separately in the statement of financial position. Held to maturity investments: These are assets with fixed or determinable payments and fixed maturities that has the positive intention and ability to hold to maturity. After initial recognition they are measured at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the surplus/deficit. Financial assets available for sale: These include those investments that are designated as fair value through other comprehensive revenue or are not classified in any of the other categories above. This category encompasses investments that intends to hold longterm but that may be realised before maturity, and shareholdings that holds for strategic purposes. After initial recognition, these investments are measured at their fair value. Gains and losses are recognised directly in other comprehensive revenue except for impairment losses, which are recognised in the surplus/deficit. In the event of impairment, any cumulative losses previously recognised in equity will be removed and recognised in the surplus/deficit even though the asset has not been derecognised. On derecognition, the cumulative gain or loss previously recognised in equity is recognised in the surplus/deficit. New Zealand Local Government Insurance Corporation and Marlborough Forestry Corporation are designated as available for sale (PBE IPSAS 29) and are required to be measured at fair value or cost (where fair value cannot be determined reliably). Impairment of financial assets At each balance date, assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. Any impairment losses are recognised in the surplus/deficit. Property, plant and equipment Property, plant and equipment is shown at cost or valuation, less any accumulated depreciation and impairment losses. 11

124 Part A: LTP 21525, Page A124 Forecast financial information Recognition: Property, plant and equipment consists of operational assets, infrastructural assets, and restricted assets. Expenditure is capitalised as property, plant and equipment when it creates a new asset or increases the economic benefits over the total life of an existing asset. Costs that do not meet the criteria for capitalisation are expensed. Operational assets: These include land, buildings, plant and equipment, motor vehicles, and furniture and fittings. Infrastructural assets: Infrastructural assets comprise mainly river control works, land drainage schemes, and forests that are planted with the primary objective of river and erosion control. Restricted assets: Restricted assets are reserves owned by that provide a benefit or service to the community and that cannot be disposed of because of legal or other restrictions. receives lease rental income from its reserve land under leases granted to a number of third parties. Environment Canterbury classifies all of its reserve land as property, plant and equipment as the land is held for strategic purposes and/or service delivery (river protection works). Additions The cost of an item of property, plant and equipment is recognised as an asset only if it is probable that future economic benefits or service potential associated with the item will flow to and the cost of the item can be measured reliably. In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value as at the date of acquisition. Subsequent costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to and the cost of the item can be measured reliably. Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in surplus/deficit. When revalued assets are sold, the amounts included in asset revaluation reserves in respect of those assets are transferred to retained earnings. Valuation All assets are initially valued at cost. For those asset classes that are revalued, they are revalued with sufficient regularity to ensure that their carrying amount does not differ materially from fair value. Between valuations expenditure on asset improvements is capitalised at cost. Revaluation methodologies applied are as follows. Land and buildings: These have been valued at fair value. Valuations were carried out by registered valuer Quotable Value NZ Ltd as at 31 May 213, and were determined from marketbased evidence and conditions as at that date. Infrastructural assets: River control works and land drainage schemes are valued at replacement cost. Valuations were carried out as at 31 May 214, based on a methodology developed by the Council s engineers. Floodgates and culverts are valued at depreciated replacement cost. The valuation was performed by Matthew Surman of. The method was independently reviewed by AECOM New Zealand Ltd, which determined the method to be appropriate. Restricted assets: These have been valued at fair value. Valuations were carried out by registered valuer Quotable Value NZ Ltd as at 31 May 213, and were determined from marketbased evidence and conditions as at that date. Forestry assets: A forestry valuation dated 31 May 214 has been prepared by staff and independently reviewed by registered forestry consultant Owen Springford. The forestry assets continue to be treated as property, plant and equipment due to the nature of the asset, which is primarily for river protection rather than being operated as a commercial enterprise. 12

125 Part A: LTP 21525, Page A125 Forecast financial information Accounting for revaluations: accounts for revaluations of property, plant and equipment on a class of asset basis. The results of revaluing are credited or debited to an asset revaluation reserve for that class of asset. Where this results in a debit balance in the asset revaluation reserve, this balance is expensed in the surplus/deficit. Any subsequent increase on revaluation that offsets a previous decrease in value recognised in the statement of comprehensive revenue and expense will be recognised first in the statement of comprehensive revenue and expense up to the amount previously expensed, and then credited to the revaluation reserve for that class of asset. Impairment of nonfinancial assets Nonfinancial assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value, less costs to sell and value in use. Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset s ability to generate net cash inflows and where the Council would, if deprived of the asset, replace its remaining future economic benefits or service potential. The value in use for cashgenerating assets is the present value of expected future cash flows. If an asset s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets, the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the surplus/deficit. For assets not carried at a revalued amount, the total impairment loss is recognised in the surplus/deficit. The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for that class of asset was previously recognised in the surplus/deficit, a reversal of the impairment loss is also recognised in the surplus/deficit. For assets not carried at a revalued amount (other than goodwill), the reversal of an impairment loss is recognised in surplus/deficit. Depreciation Estimated useful life of s assets Depreciation is provided on a straightline basis at rates, which will write off the cost or valuation of the assets to their estimated residual values over their useful lives. Land and forests are not depreciated. Depreciation is not provided for components of river control works and land drainage schemes except for culverts, floodgates, tracks and fences. An asset management plan has been prepared for these schemes and, in the absence of significant flood events, they are not considered to deteriorate. expenses as maintenance all repairs, and capitalises additions, which increase the service potential of the assets. The useful lives and associated depreciation rates of s assets have been estimated below. Asset category estimated useful life (years) Asset category Estimated useful life (years) Residual value (%) % of cost depreciated annually Fixed assets: Buildings: structure Buildings: fitout Motor vehicles Furniture and fittings Computer equipment Plant and equipment

126 Part A: LTP 21525, Page A126 Forecast financial information Asset category Estimated useful life (years) Residual value (%) % of cost depreciated annually Infrastructural assets: Culverts and floodgates Tracks and fences Wells 33 3 Intangible assets Intangible assets are the costs associated with acquired software. Acquired software licences are capitalised on the basis of the costs incurred to bring in to use the specific software. The carrying value of an intangible asset with a finite life is amortised on a straightline basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated in the table below. s intangible assets Asset category Estimated useful life (years) Residual value (%) Cost depreciated annually (%) Computer software Leases Leases under which assumes substantially all the risks and rewards of ownership are classified as finance leases. Assets acquired by way of finance lease are stated initially at an amount equal to the present value of the future minimum lease payments, and are depreciated over the period is expected to benefit from their use. Operating lease payments are representative of the pattern of benefits derived from the leased assets and, accordingly, are charged to the surplus/deficit in the periods of expected benefit. Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other shortterm highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown with borrowings in current liabilities in the statement of financial position. Borrowing costs Borrowing costs are recognised as an expense in the period in which they are incurred, except where funds have been borrowed for the purpose of acquiring qualifying assets, in which case borrowing costs have been capitalised. Statement of cash flows The statement of cash flows has been prepared using the direct approach subject to the netting of cash flows in respect of investments and borrowings that have been rolled over under arranged facilities to provide more meaningful information. The following are the definitions used in the statement of cash flows: cash means cash on hand and current accounts in banks net of overdrafts operating activities include all transactions and other events that are not investing or financing activities investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment, and of investments financing activities are those activities that result in changes in the size and composition of the capital structure of Environment Canterbury, including both equity and debt not falling within the definition of cash. 14

127 Part A: LTP 21525, Page A127 Forecast financial information Employee entitlements Annual, sick, long service and retirement leave, and time in lieu entitlements estimated to be payable to employees, are accounted for on the basis of statutory and contractual requirements as employees become entitled to them. Liability for sick leave is measured as the amount of unused entitlement accumulated at balance date that the Council anticipates employees will use in future periods in excess of the days that they are entitled to. Financial instruments is a party to financial instrument arrangements as part of everyday operations. These financial instruments include bank accounts, investments, loans, accounts receivable and accounts payable. All of these are recognised in the statement of financial position. Revenues and expenses in relation to financial instruments are recognised as set out in the relevant policy. Derivative financial instruments and hedging activities uses derivative financial instruments to hedge exposure to interest rate risks arising from financing activities. In accordance with Treasury policy, does not hold or issue derivative financial instruments for trading purposes. Hedging instruments held by are classified as hedges of highly probable forecast transactions (cash flow hedges) and are recognised initially at fair value. Subsequent to initial recognition, these derivative financial instruments are stated at fair value. The effective portion of changes in the fair value of derivatives is recognised in equity, and the gain or loss relating to the ineffective portion is recognised immediately through the statement of comprehensive revenue and expense. The fair value of interest rate swaps is the estimated amount that would receive or pay to terminate the swap at the balance sheet date, taking into account current interest rates. documents, at the inception of the transaction, the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. also documents its assessments, both at hedge inception and on an ongoing basis, of whether the derivatives used for hedging transitions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. Provisions recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, where it is probable that expenditures will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. Equity Equity is the community s interest in and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into a number of reserves. The components of equity are retained earnings, restricted reserves and asset revaluation reserves. Restricted reserves are a component of equity generally representing a particular use to which various parts of equity have been assigned. Reserves may be legally restricted or created by. Restricted reserves are those that are subject to specific conditions accepted as binding by and that may not be revised by without reference to the courts or a third party. Transfers from these reserves may be made only for certain specified purposes or when certain specified conditions are met. Also included in restricted reserves are reserves restricted by Council decision. The Council may alter them without reference to any third party or the courts. Transfers to and from these reserves are at the discretion of the Council. 15

128 Part A: LTP 21525, Page A128 Forecast financial information Changes in accounting policies The adoption of PBE IPSAS for these prospective statements has resulted in some minor changes to accounting policies, mainly in relation to classification of revenue and expenditure. is in the process of reviewing their accounting standards for Annual Reporting purposes as part of transitioning to the new Public Benefit Entity Accounting Standards. This may result in accounting policies that vary from those utilised for prospective financial statements. Standards, amendments and interpretations issued that are not yet effective and have not been early adopted With the adoption of PBE IPSAS there are no standards, amendments and interpretations issued that are not yet effective and have not been early adopted that are relevant to the Council. 16

129 Part A: LTP 21525, Page A129 Forecast financial information Forecast financial statements Statement of comprehensive revenue and expense This statement discloses the sources of income used to fund s activities. Adjusting for any other significant nonoperating events identifies the net surplus or deficit for each year. Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Revenue from nonexchange transactions General rates 3,95 31,18 33,51 34,138 35,54 36,454 37,46 37,988 38,937 39,598 4,782 Targeted rates 54,187 58,186 6,962 63,78 66,45 67,747 7,196 69,597 7,168 72,89 74,15 Grants 26,137 27,637 28,392 26,82 27,242 27,57 31,958 29,297 29,465 3,424 31,432 Revenue from exchange transactions User pays 37,428 36,713 39,261 4,892 42,399 45,661 47,514 49,543 53,359 55,735 57,893 Interest Other revenue 13,444 1, ,15 1,313 1,577 1,835 2,91 Total operating revenue 162, , , ,66 172, , ,68 188, ,298 2,485 27,33 Expenses Depreciation and amortisation 3,488 3,376 6,664 6,775 6,659 6,35 7,148 6,885 6,838 6,846 6,48 Finance costs ,562 1,61 1,771 1,852 1,736 1,592 1,434 1,267 1,86 Personnel expense 4,523 41,716 42,85 43,666 45,395 46,488 47,567 48,451 49,659 5,961 52,325 Other expense 18,879 11,18 17, , ,963 12,77 125, , , ,6 144,927 Total operating expense 153, , , ,59 17, , ,48 186, , ,133 24,819 Surplus/(deficit) before taxation 9,45 (331) 3,358 2,98 2,161 3,433 6,632 1,738 2,63 2,352 2,214 Surplus/(deficit) after taxation 9,45 (331) 3,358 2,98 2,161 3,433 6,632 1,738 2,63 2,352 2,214 Total comprehensive revenue 9,45 (331) 3,358 2,98 2,161 3,433 6,632 1,738 2,63 2,352 2,214 17

130 Part A: LTP 21525, Page A13 Forecast financial information Statement of financial position This statement has detailed information on the assets and liabilities controlled or owed by the Council. Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Current assets Cash and cash equivalents 14,994 8,18 8,39 8,486 8,636 8,352 8,854 9,74 9,864 9,958 1,684 Investments ,931 1,933 12,934 14,435 16,434 14,431 17,427 19,929 23,432 25,435 Recoverables from exchange transactions 11,21 1,892 11,424 11,648 12,6 12,489 13,224 13,179 13,629 14,67 14,521 Receivables from nonexchange transactions 9,568 9,279 9,731 9,922 1,273 1,639 11,265 11,227 11,61 11,983 12,37 Current portion of loans 1, Inventories Total current assets 37,618 42,876 41,6 44,358 46,656 48,988 48,596 51,751 55,897 6,326 63,918 Noncurrent assets Investment in CCOs and other similar entities Noncurrent portion of loans 2,425 2,69 1, Property, plant and equipment 721, , , ,56 975, ,156 98, , ,621 97, ,25 Intangibles 5,324 3,275 3,4 3,314 3,171 3,79 3,217 3,94 3,1 2,936 2,826 Total noncurrent assets 729, , ,931 98,4 979,456 98, , , ,67 973,963 97,521 Total assets 767,342 1,16,18 1,2,531 1,24,362 1,26,113 1,29,668 1,33,226 1,33,3 1,33,965 1,34,289 1,34,439 18

131 Part A: LTP 21525, Page A131 Forecast financial information Statement of financial position (cont'd) Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Current liabilities Payables under exchange transactions 13,797 15,86 15,943 16,634 16,93 17,539 18,224 18,698 19,371 2,118 2,867 Other payables 1,483 1,762 1,771 1,848 1,881 1,949 2,25 2,78 2,152 2,235 2,319 Employee benefits 2,899 3,12 3,19 3,179 3,213 3,281 3,357 3,42 3,55 3,596 3,693 Current portion of loans 1,965 2,934 2,795 2,671 2,537 4,53 2,692 2,643 3,91 3,134 1,52 Total current liabilities 29,144 23,569 23,619 24,333 24,561 26,823 26,298 26,839 28,12 29,84 28,38 Noncurrent liabilities 4,548 27,495 28,51 29,529 28,89 26,75 24,2 21,699 18,75 15,758 14,398 Total liabilities 33,692 51,64 52,128 53,862 53,451 53,573 5,498 48,538 46,87 44,842 42,778 Net assets 733, ,45 968,43 97,51 972, ,95 982, , ,95 989, ,661 Equity 733, ,45 968,43 97,51 972, ,95 982, , ,95 989, ,661 Statement of changes in net assets/equity This statement is the Council s investment in publicly owned assets. Equity is the difference between the Council s assets and liabilities, in other words the difference between what it owns and what it owes. Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Equity at the beginning of the year 724,64 965, ,45 968,43 97,51 972, ,95 982, , ,95 989,447 Surplus/(deficit) after taxation 9,45 (331) 3,358 2,98 2,161 3,433 6,632 1,738 2,63 2,352 2,214 Equity at the end of the year 733, ,45 968,43 97,51 972, ,95 982, , ,95 989, ,661 19

132 Part A: LTP 21525, Page A132 Forecast financial information Statement of cash flows This statement discloses the Council s expected cash receipts and payments and provides information on the Council s activities in generating cash for operating, investing and financing areas. Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Cash flows from operating activities: Cash provided from: Rates 84,896 88,537 93,73 97,616 11,78 14,66 17,448 17,589 19,14 111, ,61 Grants 26,137 27,637 28,392 26,82 27,242 27,57 31,958 29,297 29,465 3,424 31,432 Interest received Other income 36,748 36,713 39,261 4,892 42,399 45,661 47,514 49,543 53,359 55,735 57,893 Total cash provided from operating activities 148, ,72 161, ,88 171, , , ,99 192,63 198,496 24,755 Cash applied to: Interest paid ,562 1,61 1,771 1,852 1,736 1,592 1,434 1,267 1,86 Payments to employees and suppliers 146, ,37 151, , , , , , , , ,913 Total cash applied to operating activities 147, , , , , ,51 174, , , , ,999 Net cash from operating activities 1,285 (43) 9,27 9,276 8,4 9,715 13,239 9,279 9,444 9,284 8,757 Cash flow from investing activities: Cash provided from: Fixed assets and other investing proceeds 21,361 11,741 2, , Clean Heat rates repaid Total cash provided from investing activities 22,348 12,619 3,716 1,485 1,496 1,259 3,

133 Part A: LTP 21525, Page A133 Forecast financial information Statement of cash flows (cont'd) Annual Plan Long Term Plan ($'s) 214/15 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 Cash applied to: Purchase of fixed and intangible assets 37,267 39,152 13,94 9,29 7,473 8,634 11,95 4,28 4,398 3,467 3,881 Purchase of investments 2, 1,5 2, 3, 2,5 3,5 2, Total cash applied to investing activities 37,267 39,152 13,94 11,29 8,973 1,634 11,95 7,28 6,898 6,967 5,881 Net cash from investing activities (14,919) (26,533) (1,224) (9,724) (7,477) (9,375) (8,826) (6,58) (6,154) (6,241) (5,38) Cash flow from financing activities: Cash provided from: Loans raised 2,44 23,837 3,81 3,69 6,56 1, Total cash provided from financing activities 2,44 23,837 3,81 3,69 6,56 1, Cash applied to: Repayment of principal on loans 295 1,2 2,934 2,795 6,828 2,537 4,53 2,692 2,643 3,91 3,134 Total cash applied to financing activities 295 1,2 2,934 2,795 6,828 2,537 4,53 2,692 2,643 3,91 3,134 Net cash from financing activities 1,749 22, (772) (624) (3,911) (2,55) (2,51) (2,949) (2,992) Movement in cash Net increase/(decrease) in cash held (11,886) (3,759) (141) (284) Add cash brought forward 26,88 11,939 8,18 8,39 8,486 8,636 8,352 8,854 9,74 9,864 9,958 Cash carried forward 14,994 8,18 8,39 8,486 8,636 8,352 8,854 9,74 9,864 9,958 1,684 Made up of: Cash and bank 14,994 8,18 8,39 8,486 8,636 8,352 8,854 9,74 9,864 9,958 1,684 21

134 Part A: LTP 21525, Page A134 Forecast financial information Reserves The Council s capital is its equity (or ratepayers funds) which includes retained earnings and reserves. The Local Government Act 22 requires the Council to manage its finances prudently and in a manner that promotes the current and future interests of the community. Ratepayers funds are a derivative of managing revenues, expenses, assets, liabilities, investments and other general financial dealings. The objective of managing these items is to achieve intergenerational equity, which is a principle promoted in the Local Government Act 22 and applied by the Council. Intergenerational equity requires today s ratepayers to meet the costs of utilising the Council s assets and not require them to meet the full cost of longterm assets that will benefit ratepayers in future generations. Additionally, the Council has in place asset management plans for major classes of assets detailing renewal and maintenance programmes, to ensure ratepayers in the future generations are not required to meet the costs of deferred renewals and maintenance. The Act requires the Council to make adequate and effective provision in its LongTerm Plan and in its Annual Plan (where applicable) to meet the expenditure needs identified in those plans. The Act sets out the factors that the Council is required to consider when determining the most appropriate sources of funding for each of its activities. The sources and levels of funding are set out in the Council's Revenue and Financing Policy. Reserves for different areas of benefit are used where there is a discrete set of rate or levy payers as distinct from the general rate. Any surplus or deficit relating to these separate areas of benefit is applied to the specific reserves. Selfinsurance reserves are built up annually from general rates and are made available for specific unforeseen events. The release of these funds generally can only be approved by the Council. has the following reserve funds. Reserves Opening balance 1 July 215 Increases Decreases Closing balance 3 June 225 Targeted rate reserves Biosecurity threat response reserve Biodiversity & biosecurity related programmes: Reserves to assist with initial response to pest incursion Flood protection reserve Flood protection & control works programme: Reserves to fund planned and unplanned maintenance and repair of flood protection schemes. (6,8) 52,53 (57,619) (11,646) Emergency management response reserve Emergency management programme: Reserves for the provision of civil defence emergency management operation within the Canterbury region (1) 776 Clean Heat programme delivery reserve Air quality programme: Reserves that are restricted to energy efficiency programmes in the Canterbury region. 2,52 55 (2,92) 96 Passenger transport continuous service reserve Public passenger transport programmes: Reserves to ensure funding is available to provide an uninterrupted passenger transport service. 5,415 14,542 (15,681) 4,276 22

135 Part A: LTP 21525, Page A135 Forecast financial information Pest management reserve Biosecurity programmes: Reserves to enable quick response to meet obligations under the Regional Pest Management Strategy. 1, (451) 81 Regional park funding reserve Regional Parks programme: Reserves for the provision of regional park activities within the Canterbury region. (17) 6,127 (5,878) 79 CWMS water reserve Canterbury Water Management Strategy related programmes: Reserves for the provision of strategic water services for the Canterbury region. 3, (88) 2,819 Capital and asset reserves Asset replacement reserve All programmes: To provide sufficient funding to maintain level capability of existing assets. 2,867 58,263 (56,15) 5,25 Revaluation reserve All programmes: Reserves generated by movements in : Investments (note 5) Derivative financial instruments (note 7) Property plant and equipment (note 1) 83,125 83,125 Building redevelopment reserve All programmes: Used in the development of the Council's Christchurch offices funded by insurance proceeds. 11,243 17,335 (28,823) (245) Capital reserve All programmes: Represents the Council s investment in fixed and infrastructural assets. 133,4 19,977 (75,59) 167,391 Other reserves Property development reserve Environment Canterbury land (noncatchment) programme: Proceeds from sale of land. Legislation restricts how this can be applied. (93) (56) (149) General reserve All programmes: The income appropriation account for general funds. 8,22 14,61 (3,873) 18,48 Total equity 965, ,36 (247,75) 991,661 23

136 Part A: LTP 21525, Page A136 Forecast financial information Appendix 1: Funding impact statement (rating disclosures) This statement has been prepared in accordance with the Local Government Act 22 and the Local Government (Rating) Act 22. It provides guidelines for the types of rates to be set, collection of rates, payment options, discount for yearly payment and the use of estimated projected values. Background Rates provide the budgeted net funding requirement of the Council s programmes published in the LongTerm Plan or Annual Plan after income from other sources such as user pays, grants, interest and reserve usage has been allowed for. Rates are levied on each rating unit under the statutory provisions of the Local Government (Rating) Act 22. Objectives related to rates are to: provide the income needed to meet the Council s net funding requirements collect rates from properties that are the direct beneficiaries of services where these can be identified spread the incidence of rates as fairly as possible be consistent in charging rates. The projected number of rating units in the region is: 215/16 216/17 217/18 218/19 219/2 22/21 221/22 222/23 223/24 224/25 271, , , , , ,6 288, , ,88 296,632 Rate descriptions General rates General rates are applied to all rateable land under section 13 of the Local Government (Rating) Act 22. General rates are differentially based on location of the rateable properties within the respective territorial authorities' areas using capital values. The Council has used projected values to arrive at capital values for each territorial authority area. (See projected capital values on page 58 for more details.) General rates are collected by a rate in the dollar on the rateable capital value of each rating unit or by a uniform annual general charge as a fixed amount per rating unit. For details of the activities or group of activities funded by general rates, refer to the Revenue and Financing Policy. For details of the estimated level of general rates per $1, capital value and per rating unit, refer to the detailed rates information that forms part of this document. Targeted rates Section 16 of the Local Government (Rating) Act authorises the Council to set targeted rates and fixed targeted rates to fund functions that are identified in its LongTerm Plan or Annual Plan as functions for which targeted rates may be set. The Council has targeted rates as follows: Catchment Works Public Passenger Transport Pest Control Air Quality Clean Heat Loan Scheme 24

137 Part A: LTP 21525, Page A137 Forecast financial information Civil Defence Emergency Management Canterbury Water Management Strategy Regional Parks. No lump sum contribution will be sought for any targeted rate. Targeted rates are differentially based primarily on s within the respective territorial authorities' areas using capital values. The Council has used projected values to arrive at capital values for each Territorial Local authority Area. (See projected capital values on page 58 for more details.) For details of the activities or group of activities funded by each of these targeted rates refer to the Funding and Financial Policies in Part B of this LongTerm Plan. For details of the estimated level of each of these targeted rates, refer to the detailed rates information that forms part of this document. Rates collection by territorial authorities All rates shall be due and payable on such dates as are fixed by the territorial authorities within the Canterbury region collecting the rates on s behalf. Penalties An additional charge of ten per cent shall be added to the balance of the rates instalments levied in the current financial year that remain unpaid after the date fixed by the territorial authorities collecting rates on behalf of. Territorial authority Instalment No.1 Instalment No.2 Instalment No.3 Instalment No.4 Instalment No.5 Instalment No.6 Kaikōura The due date is the penalty date Hurunui 21Aug15 21Nov15 21Feb16 21May16 Waimakariri 27Aug15 27Nov15 27Feb16 27May16 Christchurch Area 1 2Aug15 19Nov15 18Dec16 19May16 Christchurch Area 2 18Sept15 18Dec15 18Mar16 2Jun16 Christchurch Area 3 3Sept15 3Dec15 3Mar16 3Jun16 Selwyn 2Sept15 2Dec15 2Mar16 2Jun16 Ashburton 21Aug15 21Oct15 23Dec16 23Feb16 21Apr16 23Jun16 Timaru 21Sept15 21Dec15 21Mar16 2Jun16 Waimate 31Aug15 3Nov15 29Feb16 3May16 Mackenzie Waitaki The due date is the penalty date The due date is the penalty date A further additional charge of ten per cent shall be added to the balance of rates levied in any previous financial year, including any additional charges previously imposed that remain unpaid, and an additional charge of ten per cent shall continue thereafter to all arrears and additional charges that remain unpaid (with the exception of current instalments) at sixmonthly intervals, by the date fixed for that purpose by the authority collecting rates on behalf of for that district. 25

138 Part A: LTP 21525, Page A138 Forecast financial information Instalments Rates instalment dates are to be determined by the territorial authorities collecting the rates on behalf of. Territorial authority Instalment No.1 Instalment No.2 Instalment No.3 Instalment No.4 Instalment No.5 Instalment No.6 Kaikōura 2Sep15 2Dec15 2Mar16 2Jun16 Hurunui 2Aug15 2Nov15 2Feb16 2May16 Waimakariri 2Aug15 2Nov15 2Feb16 2May16 Christchurch Area 1 15Aug15 15Nov15 15Feb16 15May16 Christchurch Area 2 15Sep15 15Dec15 15Mar16 15Jun16 Christchurch Area 3 31Aug15 3Nov15 28Feb16 31May16 Selwyn 19Aug15 18Nov15 17Feb16 19May16 Ashburton 2Aug15 2Oct15 2Dec15 2Feb16 2Apr16 2Jun16 Timaru 21Sep15 21Dec15 21Mar16 2Jun16 Waimate 28Aug15 27Nov15 26Feb16 27May16 Mackenzie 2Sep15 2Dec15 2Mar16 2Jun16 Waitaki 31Jan16 For any council where no penalty date is shown, the due date is also the penalty date. Venues and methods of payment Rates are to be paid at the venues determined by the territorial authorities collecting the rates on behalf of. Rates are to be paid by the methods determined by the territorial authorities collecting the rates on behalf of. Discount for early payment Discount for early payment of rates will be granted in accordance with the policy of the territorial authority collecting the rates on behalf of. Estimation of projected valuations (equalisation) Equalisation of the rating valuation base is a technique used when the revaluation of rating units does not occur at the same time across the rating base. Its effect is to smooth the impact of increases in the valuation base during the valuation cycle. Without equalisation, each district s share of the rating base will increase in the year they revalue then decrease in the following two years. With equalisation, each district s share of the rating base will be adjusted to take account of movements in property prices by adjusting the total value by a factor determined by a suitably qualified valuer. In general, and assuming no growth, e.g. subdivision, in the underlying rating base, this will mean the percentage of the total rating base will remain the same for each district unless there has been an increase in the predominant property type for the district, e.g. increased rural land values compared with urban properties due to market conditions for primary produce. Without equalisation over a threeyear period, the rates across the region will average out, but the amount of the increase in the districts that have revalued may be larger, in the year of its revaluation, than in a district that has not revalued. In the Canterbury region, there are ten territorial authorities with valuations occurring in threeyearly cycles as follows. 26

139 Part A: LTP 21525, Page A139 Forecast financial information Rating valuation date by territorial authority Territorial authority Ashburton Selwyn Mackenzie Kaikōura Waitaki Waimate Christchurch Hurunui Waimakariri Timaru Types of rates Revalued in July 212 July 212 July 214 September 212 September 214 July 213 November 213 September 213 August 213 September 214 Applied to rates from 213/14 213/14 215/16 213/14 215/16 214/15 214/15 214/15 214/15 215/16 This section provides details, for each rate mechanism, of the following: the group of activities to be funded by the rate the categories of rateable land used for setting a targeted rate (as per Schedule 2 Local Government (Rating) Act 22 how the liability for the targeted rate is to be calculated (as per Schedule 3 Local Government (Rating) Act 22. General rate General rates Uniform annual general charge Groups of activities funded All groups of activities Democratic and Ratepayer Servicing works in Regional Leadership and Air Quality Valuation system/how rate is calculated Capital value A fixed amount per rating unit Rate mechanism Groups of activities funded Categories of rating units for setting targeted rate How liability for targeted rate is to be calculated Uniform Targeted Passenger Transport Services Rate Public passenger transport Location of rating units within a territorial authority's areas The capital value of the rating units A fixed amount per rating unit Uniform Targeted Air Quality Rate and Air Quality Heating Assistance Rate Air quality Location of rating units within a territorial authority's areas The capital value of the rating units Targeted Differential Clean Heat Loan Rate (note 1) Air quality The provision or availability to the rating unit of a service provided by, or on behalf of, the territorial authority The extent of provision of any service to the rating units Uniform Targeted Civil Defence Emergency Management Rate Emergency management Location of rating units within a territorial authority's area excluding Waitaki district The capital value of the rating units 27

140 Part A: LTP 21525, Page A14 Forecast financial information Rate mechanism Groups of activities funded Categories of rating units for setting targeted rate How liability for targeted rate is to be calculated Uniform Targeted Canterbury Water Management Strategy Rate and Uniform Targeted CWMS Environmental Infrastructure Local Rate Canterbury Water Management Strategy All rating units situated in the defined areas The capital value of the rating units Uniform Targeted Regional Park Rates Land All rating units situated in the defined areas The capital value of the rating units A fixed amount per rating unit Uniform Targeted Possum Pest Control Rate Biodiversity and Biosecurity All rating units situated in the defined areas The land area of the rating units The land value of the rating units Uniform Targeted Animal and Plant Pest Inspection Rate Biodiversity and Biosecurity All rating units situated in the defined areas The land value of the rating units Uniform Targeted Animal and Plant Pest Monitoring Rate Biodiversity and Biosecurity All rating units situated in the defined areas The land value of the rating units Uniform Targeted Bovine Tb Pest Control Rate Biodiversity and Biosecurity All rating units situated in the defined areas The land value of the rating units Targeted Differential Rabbit Pest Control Rate Biodiversity and Biosecurity All rating units situated in the defined areas and rating units over four hectares The land area of the rating units Uniform Targeted Catchment Works and Services Rate Natural Hazards All rating units situated in the defined areas The capital value of the rating units Uniform Targeted Catchment Works Rate Natural Hazards All rating units situated in the defined areas A fixed amount per rating unit Targeted Differential Catchment Works Rate Natural Hazards All rating units situated in the defined areas The capital value of the rating units The land value of the rating units The land area of the rating units The extent of provision of any service to the rating units. Note 1, Clean Heat Loans and Energy Efficiency: The Council will allow multiple charges on a rating unit, provided there are multiple flats, apartments or residential houses existing under a single title and each part can be separately let and permanently occupied, but have a common ownership (referred to as an installation within a residential dwelling). The basis for a unit of occupancy is one that can be separately let and permanently occupied. All business and commercial operations operating as a rating unit or part thereof shall not qualify for this scheme. No rate remission will be granted under this policy. Targeted rates are set differentially using sections 16, 17 and 18 of the Local Government (Rating) Act 22, and by using the matters and factors of Schedules 2 and 3 to determine the rates. Our objectives in using funding mechanisms are set out in the Revenue and Financing Policy. 28

141 Part A: LTP 21525, Page A141 Forecast financial information Rating table for 215/16 The following are examples of rates on different categories of rateable land with a range of property values. District Last valuation Capital value of property 215/16 Capital value of property 214/15 215/16 rate 214/15 rate Movement in $ terms General Targeted General Targeted General Targeted Total Kaikōura Sept212 Rural $1,825, $1,825, Urban $31, $31, Hurunui Sept213 Rural $1,563, $1,563, Urban $3, $3, Waimakariri Aug213 Rural $3,65, $3,65, , , Rural $1,27, $1,27, Urban Rangiora $37, $37, Urban Kaiapoi $395, $395, Christchurch Nov213 Rural Wairewa $1,27, $1,27, , Rural Kaituna $35, $35, Urban City $53, $53, Urban Kainga $415, $415, Urban Lyttelton $375, $375, Urban Akaroa $465, $465, Ashburton July212 Rural $3,25, $3,25, , , Urban $23, $23, Selwyn July212 Rural Lincoln $4,575, $4,575, , , ,

142 Movement in $ terms 214/15 rate 215/16 rate Capital value of property 214/15 Capital value of property 215/16 Last valuation District Total Targeted General Targeted General Targeted General , , , ,8.57 $9,75, $9,75, Rural Dunsandel $395, $395, Urban Lincoln $29, $29, Urban Leeston Sept214 Timaru $1,79, $2,31, Rural $235, $26, Urban city $2, $225, Urban Temuka $255, $275, Urban Geraldine $26, $31, Urban Pleasant Point July214 Mackenzie , , $3,8, $4,62, Rural $2,6, $3,23, Rural $23, $23, Urban Fairlie $48, $53, Urban Tekapo $195, $215, Urban Twizel July213 Waimate , , $4,45, $4,45, Rural , $3,86, $3,86, Rural $23, $23, Urban Sept214 Waitaki $1,51, $1,86, Rural , , , , $6,5, $9,495, Rural $235, $235, Urban Kurow $17, $175, Urban Otematata 3 Forecast financial information Part A: LTP 21525, Page A142

143 Part A: LTP 21525, Page A143 Forecast financial information Detailed rates information This part provides the following details for each type of rate: Note: the category of land subjected to the rate if the rate is set on a differential basis, the relativity between each differential category. these figures are inclusive of GST at 15 per cent unless otherwise stated, the categories of rateable land pertain to properties within the city or district council area the figure disclosing revenue sought for each type of rate excludes contributions from other parties actual revenue from Targeted Differential Clean Heat Loan may differ to that disclosed, with house sales increasing repayments rates have been calculated using valuation information available at the time this report was prepared, adjusted for the best available estimate of growth for each district. Type of rate Categories of rateable land Rate Calculation basis 215/16 Revenue sought $ General rate Kaikōura $18.55 per $1, capital value 26,853 Hurunui $18.71 per $1, capital value 1,39,994 Waimakariri $18.2 per $1, capital value 2,369,789 Christchurch $18.4 per $1, capital value 15,531,853 Selwyn $2.31 per $1, capital value 3,22,189 Ashburton $2.94 per $1, capital value 2,714,287 Timaru $17.23 per $1, capital value 1,965,615 Mackenzie $17.29 per $1, capital value 54,913 Waimate $18.62 per $1, capital value 728,34 Waitaki $16.81 per $1, capital value 328,792 Uniform annual general charge Kaikōura $28.63 fixed amount per rating unit 81,25 Hurunui $28.63 fixed amount per rating unit 223,23 Waimakariri $28.63 fixed amount per rating unit 686,991 Christchurch $28.63 fixed amount per rating unit 4,422,525 Selwyn $28.63 fixed amount per rating unit 586,244 Ashburton $28.63 fixed amount per rating unit 426,91 Timaru $28.63 fixed amount per rating unit 585,7 Mackenzie $28.63 fixed amount per rating unit 114,23 Waimate $28.63 fixed amount per rating unit 95,794 Waitaki $28.63 fixed amount per rating unit 51,13 31

144 Part A: LTP 21525, Page A144 Forecast financial information Type of rate Categories of rateable land (subcategorised as the following targeted rates) Rate Calculation basis 215/16 Revenue sought $ Uniform Targeted Public Passenger Transport Services Rate Kaikōura Urban $.89 per $1, capital value 4,959 Christchurch City $24.33 per $1, capital value 19,428,668 Christchurch Kainga $8.9 per $1, capital value 74,111 Christchurch Governors Bay $2.57 per $1, capital value 5,95 Selwyn Ellesmere $.31 per $1, capital value 6,447 Ashburton (Total Mobility only) $1.67 per $1, capital value 41,524 Timaru City $12.5 per $1, capital value 524,896 Timaru Geraldine $2.7 per $1, capital value 9,224 Timaru Temuka $5.16 per $1, capital value 26,86 Mackenzie Twizel $1.43 per $1, capital value 5,253 Mackenzie Tekapo $.57 per $1, capital value 1,689 Mackenzie Fairlie $2.87 per $1, capital value 2,975 Waimate (Total Mobility only) $3.6 per $1, capital value 12,175 Hurunui Cheviot $5.7 fixed amount per rating unit 4,959 Waimakariri Urban $54.98 fixed amount per rating unit 56,876 Waimakariri Rural $6.11 fixed amount per rating unit 89,531 Selwyn Urban $84.64 fixed amount per rating unit 655,53 Selwyn Rural $9.4 fixed amount per rating unit 14,144 Selwyn Malvern Community $.93 fixed amount per rating unit 4,959 Timaru Pleasant Point $4.13 fixed amount per rating unit 4,959 Uniform Targeted Air Quality Rate Waimakariri $2.45 per $1, capital value 112,16 Christchurch $2.49 per $1, capital value 2,12,88 Ashburton $2.86 per $1, capital value 85,563 Timaru $2.35 per $1, capital value 97,362 Waimate $2.55 per $1, capital value 11,86 32

145 Part A: LTP 21525, Page A145 Forecast financial information Type of rate Categories of rateable land (subcategorised as the following targeted rates) Rate Calculation basis 215/16 Revenue sought $ Uniform Targeted Air Quality Heating Assistance Rate Rangiora nil per $1, capital value Kaiapoi nil per $1, capital value Christchurch nil per $1, capital value Ashburton nil per $1, capital value Timaru nil per $1, capital value Geraldine $4.55 per $1, capital value 23,596 Waimate $5.42 per $1, capital value 23,596 Uniform Targeted Civil Defence Emergency Management Rate Kaikōura $1.1 per $1, capital value 15,453 Hurunui $1.11 per $1, capital value 61,611 Waimakariri $1.7 per $1, capital value 14,389 Christchurch $1.9 per $1, capital value 92,127 Selwyn $1.2 per $1, capital value 179,38 Ashburton $1.24 per $1, capital value 16,798 Timaru $1.2 per $1, capital value 116,445 Mackenzie $1.2 per $1, capital value 32,44 Waimate $1.1 per $1, capital value 43,13 Uniform Targeted Canterbury Water Management Strategy Rate Kaikōura $18.57 per $1, capital value 261,11 Hurunui $18.73 per $1, capital value 1,4,984 Waimakariri $18.4 per $1, capital value 2,372,45 Christchurch $18.42 per $1, capital value 15,546,635 Selwyn $2.33 per $1, capital value 3,25,65 Ashburton $2.96 per $1, capital value 2,716,871 Timaru $17.25 per $1, capital value 1,967,486 Mackenzie $17.3 per $1, capital value 541,427 Waimate $18.64 per $1, capital value 728,727 Waitaki $16.82 per $1, capital value 329,15 33

146 Part A: LTP 21525, Page A146 Forecast financial information Type of rate Categories of rateable land (subcategorised as the following targeted rates) Rate Calculation basis 215/16 Revenue sought $ Uniform Targeted CWMS Environmental Infrastructure Local Rate Selwyn $.63 per $1, capital value 94,384 Ashburton $.73 per $1, capital value 94,384 Uniform Targeted Waimakariri River Regional Park Rate Waimakariri $.85 per $1, capital value 111,54 Christchurch $.86 per $1, capital value 699,48 Selwyn $.96 per $1, capital value 142,247 Uniform Targeted Ashley/Rakahuri River Regional Park Rate Waimakariri $.13 per $1, capital value 17,589 Christchurch $.14 per $1, capital value 11,299 Uniform Targeted Tekapo Regional Park Rate Mackenzie $.58 fixed amount per rating unit 11,846 Timaru $.58 fixed amount per rating unit 2,312 Uniform Targeted Possum Pest Control Rate Banks Peninsula Pest Rating District (Christchurch) $.75 per hectare of land 46,619 Banks Peninsula Pest Rating District (Christchurch) $7.21 per $1, land value 46,619 Uniform Targeted Animal & Plant Inspection Rate Kaikoura Pest Rating District (Kaikoura) $15.58 per $1, land value 75,54 Kaikoura Pest Rating District (Hurunui) $15.63 per $1, land value 9,922 Amuri Pest Rating District (Hurunui) $6.34 per $1, land value 99,58 Waikari Pest Rating District (Hurunui) $6.46 per $1, land value 65,599 Ashley Pest Rating District (Hurunui) $1.9 per $1, land value 7,545 Ashley Pest Rating District (Waimakariri) $1.98 per $1, land value 74,269 34

147 Part A: LTP 21525, Page A147 Forecast financial information Type of rate Categories of rateable land (subcategorised as the following targeted rates) Rate Calculation basis 215/16 Revenue sought $ Selwyn Pest Rating District (Christchurch) $1.39 per $1, land value 33,494 Selwyn Pest Rating District (Selwyn) $1.79 per $1, land value 1,159 Banks Peninsula Pest Rating District (Christchurch) $12.86 per $1, land value 9,667 Ashburton Pest Rating District (Ashburton) $.83 per $1, land value 58,887 Mackenzie Pest Rating District (Mackenzie) $12.13 per $1, land value 37,844 Mackenzie Pest Rating District (Waimate) $13.55 per $1, land value 631 Mackenzie Pest Rating District (Waitaki) $15.1 per $1, land value 762 South Canterbury Pest Rating District (Timaru) $1.65 per $1, land value 44,79 South Canterbury Pest Rating District (Mackenzie) $1.24 per $1, land value 11,393 South Canterbury Pest Rating District (Waimate) $1.38 per $1, land value 29,539 Omarama Pest Rating District (Waitaki) $4.94 per $1, Land Value 1,411 Kurow Pest Rating District (Mackenzie) $5.3 per $1, Land Value 83 Kurow Pest Rating District (Waimate) $5.62 per $1, Land Value 11,875 Kurow Pest Rating District (Waitaki) $6.23 per $1, Land Value 2,269 Hurunui (Nassella) Pest Rating District $6.7 per $1, Land Value 18,656 Uniform Targeted Animal & Plant Monitoring Rate Kaikoura $1.38 per $1, Land Value 6,691 Hurunui $1.39 per $1, Land Value 42,112 Waimakariri $1.31 per $1, Land Value 49,429 Christchurch $1.19 per $1, Land Value 37,7 Selwyn $1.53 per $1, Land Value 85,693 Ashburton $1.59 per $1, Land Value 113,151 Timaru $1.68 per $1, Land Value 45,346 35

148 Part A: LTP 21525, Page A148 Forecast financial information Type of rate Categories of rateable land (subcategorised as the following targeted rates) Rate Calculation basis 215/16 Revenue sought $ Mackenzie $1.26 per $1, Land Value 15,495 Waimate $1.4 per $1, Land Value 32,988 Waitaki $1.55 per $1, Land Value 8,412 Uniform Targeted Bovine Tb Pest Control Rate Kaikoura $2.42 per $1, Land Value 11,745 Hurunui $2.43 per $1, Land Value 73,922 Waimakariri $2.31 per $1, Land Value 86,766 Christchurch $.52 per $1, Land Value 16,74 Selwyn $.66 per $1, Land Value 37,158 Ashburton $.69 per $1, Land Value 49,65 Timaru $1.7 per $1, Land Value 46,4 Mackenzie $1.27 per $1, Land Value 15,72 Waimate $1.42 per $1, Land Value 33,466 Waitaki $1.58 per $1, Land Value 8,534 Uniform Targeted Catchment Works and Services Rate Kaikoura $ ,878 Hurunui $.93 51,693 Waimakariri $ ,893 Christchurch $ ,467 Selwyn $ ,241 Ashburton $ ,872 Timaru $2.2 25,579 Mackenzie $ ,879 Waimate $ ,94 Waitaki $.67 13,111 Uniform Targeted Catchment Works Rate Little River Wairewa Rating District Class A $94.58 fixed amount per rating Unit 35,372 36

149 Part A: LTP 21525, Page A149 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Targeted Differential Clean Heat Loan Rate Loan Advanced Band AD: 1 to 12 the provision of service to the rating unit $1. the extent of provision of service to the rating unit 1 Loan Advanced Band AC: 12 to 14 the provision of service to the rating unit $12. the extent of provision of service to the rating unit 24 Loan Advanced Band AB: 14 to 16 the provision of service to the rating unit $14. the extent of provision of service to the rating unit 98 Loan Advanced Band AA: 16 to 18 the provision of service to the rating unit $16. the extent of provision of service to the rating unit 1,28 Loan Advanced Band A: 18 to 2 the provision of service to the rating unit $18. the extent of provision of service to the rating unit 2,88 Loan Advanced Band B: 2 to 22 the provision of service to the rating unit $2. the extent of provision of service to the rating unit 3,2 Loan Advanced Band C: 22 to 24 the provision of service to the rating unit $22. the extent of provision of service to the rating unit 6,38 Loan Advanced Band D: 24 to 26 the provision of service to the rating unit $24. the extent of provision of service to the rating unit 24,24 Loan Advanced Band E: 26 to 28 the provision of service to the rating unit $26. the extent of provision of service to the rating unit 26,52 Loan Advanced Band F: 28 to 3 the provision of service to the rating unit $28. the extent of provision of service to the rating unit 54,6 Loan Advanced Band G: 3 to 32 the provision of service to the rating unit $3. the extent of provision of service to the rating unit 51, Loan Advanced Band H: 32 to 34 the provision of service to the rating unit $32. the extent of provision of service to the rating unit 53,44 Loan Advanced Band I: 34 to 36 the provision of service to the rating unit $34. the extent of provision of service to the rating unit 86,36 Loan Advanced Band J: 36 to 38 the provision of service to the rating unit $36. the extent of provision of service to the rating unit 71,28 Loan Advanced Band K: 38 to 4 the provision of service to the rating unit $38. the extent of provision of service to the rating unit 8,18 Loan Advanced Band L: 4 to 42 the provision of service to the rating unit $4. the extent of provision of service to the rating unit 7,4 Loan Advanced Band M: 42 to 44 the provision of service to the rating unit $42. the extent of provision of service to the rating unit 135,66 Loan Advanced Band N: 44 to 46 the provision of service to the rating unit $44. the extent of provision of service to the rating unit 37,4 Loan Advanced Band O: 46 to 48 the provision of service to the rating unit $46. the extent of provision of service to the rating unit 39,56 37

150 Part A: LTP 21525, Page A15 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Loan Advanced Band P: 48 to 5 the provision of service to the rating unit $48. the extent of provision of service to the rating unit 48, Loan Advanced Band Q: 5 to 52 the provision of service to the rating unit $5. the extent of provision of service to the rating unit 42,5 Loan Advanced Band R: 52 the provision of service to the rating unit $52. the extent of provision of service to the rating unit 26,96 Targeted Differential Rabbit Pest Control Rate Banks Peninsula Rabbit Rating District Negligible $.31 per Hectare of Land 3,888 Low Plains $.4 per Hectare of Land 15,554 Moderate $1.31 per Hectare of Land 19,442 Targeted Differential Catchment Works Rate Waimakariri Eyre Cust Rating District Class A (Waimakariri) $ ,347 Class B $ ,489 Class C $2.33 7,265 Class D $1.75 7,424 Class E $ ,256 Class F $.58 12,642 Class A (Christchurch) $8.86 3,129 Class B $ ,368 Class C $ ,868 Class D $1.77 1,216,16 Class E $1.18 3,686 Class F $.59 4,416 Class B (Selwyn) $6.54 1,231 Class C $2.62 2,18 Class D $1.96 4,295 38

151 Part A: LTP 21525, Page A151 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class E $ ,116 Class F $.65 15,33 Targeted Differential Catchment Works Rate Waimakariri Flood Protection Project Class A (Waimakariri) $1.5 22,111 Class B $.21 12,618 Class A (Christchurch) $ ,999 Class B $.21 12,741 Class A (Selwyn) $ ,136 Class B $.24 5,469 Targeted Differential Catchment Works Rate Ashley River Rating District Class A $ ,776 Class B $ ,858 Class C $11. 46,426 Class D $ Class U1 $ ,55 Class U2 $8.8 31,87 Class U3 $8.8 28,532 Targeted Differential Catchment Works Rate Selwyn River Rating District Class A $ ,326 Class B $ ,885 Class C $ ,489 Class D $ ,22 39

152 Part A: LTP 21525, Page A152 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class E $ ,632 Class F $ ,479 Class U1 $7.43 4,499 Class U2 $ Targeted Differential Catchment Works Rate Lake Ellesmere Rating District Class A (Christchurch) $ ,123 Class B $87.8 1,85 Class C $ ,286 Class D $ Class E $ Class A (Selwyn) $ ,163 Class B $ ,27 Class C $ ,492 Class E $7.78 9,469 Targeted Differential Catchment Works Rate Ashburton Rivers 1999 Stopbank Rating District Class A $ ,875 Class B $4.13 8,89 Class C $2.6 6,146 Targeted Differential Catchment Works Rate Ashburton Rivers Rating District Class AA $ ,773 Class AB $ ,89 Class AL $ ,367 4

153 Part A: LTP 21525, Page A153 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class BL $ ,73 Class CL $ ,96 Class DL $ ,233 Class EL $7.48 1,383 Class FL $2.56 3,118 Class U1 $4.6 95,437 Class AU $ ,637 Class BU $ ,13 Class CU $ ,122 Class DU $ Targeted Differential Catchment Works Rate North Rakaia River Rating District Class A $ ,36 Targeted Differential Catchment Works Rate Prices Valley Drainage District Class A $ Class C $ Class D $ Class E $ Targeted Differential Catchment Works Rate Sefton Ashley Rating District Class A $2.92 1,258 Class B $1.46 3,545 Targeted Differential Lower Hinds River Rating District 41

154 Part A: LTP 21525, Page A154 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Catchment Works Rate Class Main $ ,515 Targeted Differential Catchment Works Rate Upper Hinds River Rating District Class A $ ,532 Class B $ ,968 Class C $ ,519 Targeted Differential Catchment Works Rate OrariWaihiTemuka Rating District Class A $ ,136 Class B $ ,564 Class C $ ,494 Class D $ ,19 Class E $ ,535 Class F $ ,22 Targeted Differential Catchment Works Rate WaihaoWainono Flood & Drainage District Class HA $ Class HB $ Class HC $ Class HD $ ,47 Class HE $ Class HF $ Class MA $18.3 2,254 42

155 Part A: LTP 21525, Page A155 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class MB $9.15 1,427 Class WA $97.23 per $1, Land Value 2,23 Class WB $68.6 per $1, Land Value 7,592 Class WC $38.89 per $1, Land Value 4,178 Class SA $7.59 per Hectare of Land 1,929 Class SB $6. per Hectare of Land 2,937 Class SC $35.29 per Hectare of Land 1,575 Class OA $34.69 per Hectare of Land 15,696 Class OB $22.55 per Hectare of Land 5,392 Class OC $15.61 per Hectare of Land 5,431 Class OD $5.2 per Hectare of Land 86 Class OE $1.73 per Hectare of Land 23 Class LA (prorated) $28.99 per provision of service 2,899 Targeted Differential Catchment Works Rate Opihi River Rating District Class A (Timaru) $ ,484 Class B $ ,354 Class C $ ,24 Class D $ ,212 Class E $ ,996 Class F $8.3 27,3 Class U1 $ ,217 Class U2 $ ,42 Class U3 $ ,94 Class U4 $8.3 3,249 43

156 Part A: LTP 21525, Page A156 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class U4A $16.5 7,934 Class B (Mackenzie) $ ,4 Class C $ ,77 Class D $ ,659 Class E $23. 1,719 Class F $8.5 7,425 Class U3 $23. 21,255 Targeted Differential Catchment Works Rate Lower Pareora River Rating District Class A (Timaru) $ ,4 Class B $ ,687 Class C $ ,336 Class D $ ,637 Class E $ Class F $ Class U1 $ ,125 Class U2 $ ,452 Class B (Waimate) $ ,429 Class C $ ,49 Class D $ ,9 Class E $ ,427 Class F $ Targeted Differential Catchment Works Rate Kapua Drainage District Class A $ Class C $

157 Part A: LTP 21525, Page A157 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Targeted Differential Catchment Works Rate Lower Waitaki River Rating District Class A (Waimate) $ ,3 Class B $ ,951 Class A (Waitaki) $ ,873 Class B $33.5 7,23 Class U1 $ Targeted Differential Catchment Works Rate Waiau RiverBourne Rating District Class A $2, ,683 Targeted Differential Catchment Works Rate Waiau RiverRotherham Rating District Class A $ ,128 Class B $ ,54 Targeted Differential Catchment Works Rate Waiau Township Area Rating District Class A $ ,666 Targeted Differential Catchment Works Rate Kaikoura River Rating District Class A $ ,698 Class B $ ,555 Class C $ ,27 Class D $19.9 1,557 45

158 Part A: LTP 21525, Page A158 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class E $ ,617 Class F $7.96 8,484 Class U1 $ ,17 Class U2 $19.9 1,558 Class U3 $ ,728 Class U4 $ ,2 Targeted Differential Catchment Works Rate Kowai River Leithfield Rating District Class A $5.93 5,751 Targeted Differential Catchment Works Rate North Kowai Rating District Class A $ ,733 Class B $ ,83 Targeted Differential Catchment Works Rate Conway River Rating District Class A $ ,639 Targeted Differential Catchment Works Rate Sefton Town Rating District Class A $4.71 2,31 Targeted Differential Catchment Works Rate Washdyke Rating District Class A $ ,362 46

159 Part A: LTP 21525, Page A159 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class B $ ,475 Targeted Differential Catchment Works Rate Halswell River Drainage District Class B (Christchurch) $65.25 per $1, Land Value 17,68 Class C $46.6 per $1, Land Value 37,977 Class D $3.71 per $1, Land Value 15,74 Class E $4.61 per $1, Land Value 7,155 Class F $11.52 per $1, Land Value 11,764 Class A (Selwyn) $85.6 per $1, Land Value 15,358 Class B $72.76 per $1, Land Value 177,533 Class C $51.36 per $1, Land Value 78,625 Class D $34.24 per $1, Land Value 16,523 Class E $5.14 per $1, Land Value 18,72 Class F $12.84 per $1, Land Value 11,93 Class U1 $85.6 per $1, Land Value 35,622 Class U2 $17.12 per $1, Land Value 8,21 Targeted Differential Catchment Works Rate Halswell Earthquake Recovery District Class B (Christchurch) $5.13 per $1, Land Value 8,455 Class C $3.62 per $1, Land Value 2,984 Class D $2.41 per $1, Land Value 1,237 Class E $.36 per $1, Land Value 562 Class F $.9 per $1, Land Value 924 Class A (Selwyn) $6.73 per $1, Land Value 1,27 Class B $5.72 per $1, Land Value 13,949 Class C $4.4 per $1, Land Value 6,178 Class D $2.69 per $1, Land Value 1,298 47

160 Part A: LTP 21525, Page A16 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class E $.4 per $1, Land Value 1,469 Class F $1.1 per $1, Land Value 937 Class U1 $6.73 per $1, Land Value 2,799 Class U2 $1.35 per $1, Land Value 63 Targeted Differential Catchment Works Rate Rangitata River Rating District Class A $ per $1, Land Value 152,769 Class B $82.29 per $1, Land Value 39,77 Class C $54.86 per $1, Land Value 13,77 Class D $27.43 per $1, Land Value 4,966 Class AA $1,632. per $1, Land Value 7,344 Targeted Differential Catchment Works Rate Staveley Storm Channel Rating District Class A $5.83 per $1, Land Value 343 Class B $4.67 per $1, Land Value 199 Class C $1.75 per $1, Land Value 79 Targeted Differential Catchment Works Rate Upper Chatterton & Hanmer West Rating District Class A $39.53 per $1, Land Value 3,477 Class B $25.41 per $1, Land Value 1,436 Class C $16.94 per $1, Land Value 3,365 Class D $48.1 per $1, Land Value 16,29 Class U $77.66 per $1, Land Value 7,733 Targeted Differential Makikihi River Rating District 48

161 Part A: LTP 21525, Page A161 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Catchment Works Rate Class A $15.11 per $1, Land Value 1,445 Class B $42.4 per $1, Land Value 142 Class C $1.51 per $1, Land Value 56 Targeted Differential Catchment Works Rate Dry Creek Rating District Class A $48.36 per $1, Land Value 5,41 Class B $33.85 per $1, Land Value 4,431 Class C $7.25 per $1, Land Value 88 Targeted Differential Catchment Works Rate Lower Pahau River Rating District Class A $34.1 per $1, Land Value 11,53 Targeted Differential Catchment Works Rate Lower Hurunui Rating District Class A $7.39 per Hectare of Land 3,451 Targeted Differential Catchment Works Rate Lower Flats Groyne Waiau Rating District Class A $17.69 per Hectare of Land 129 Class B $12.38 per Hectare of Land 1,32 Class C $8.84 per Hectare of Land 1,739 Targeted Differential Catchment Works Rate Lyndon Rating District 49

162 Part A: LTP 21525, Page A162 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class A $22.4 per Hectare of Land 57 Class B $13.22 per Hectare of Land 595 Class C $9.7 per Hectare of Land 54 Targeted Differential Catchment Works Rate Waiau River Spotswood Rating District Class A $16.8 per Hectare of Land 3,38 Class B $14.47 per Hectare of Land 21 Targeted Differential Catchment Works Rate Pahau River Rating District Class A $3.71 per Hectare of Land 923 Class B $3.39 per Hectare of Land 94 Class C $2.21 per Hectare of Land 453 Class D $1.4 per Hectare of Land 314 Class E $1.32 per Hectare of Land 246 Targeted Differential Catchment Works Rate Lower Rakaia River Rating District Class A $25.84 per Hectare of Land 3,73 Class B $12.54 per Hectare of Land 35,523 Class C $1.3 per Hectare of Land 9,243 Class D $7.53 per Hectare of Land 3,824 Class E $5.2 per Hectare of Land 4,97 Class F $2.51 per Hectare of Land 226 Class HA $28. $. per Hectare of Land Class HB $21. $. per Hectare of Land Class HC $14. $. per Hectare of Land 5

163 Part A: LTP 21525, Page A163 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class HD $7. $. per Hectare of Land Class HE $35. $. per Hectare of Land Class HF $17.5 $. per Hectare of Land Targeted Differential Catchment Works Rate AshburtonHinds Drainage District Class A $8.97 per Hectare of Land 126,554 Class B $6.28 per Hectare of Land 32,187 Class C $4.48 per Hectare of Land 26,29 Class D $2.69 per Hectare of Land 4,2 Class E $1.79 per Hectare of Land 6,291 Class F $.9 per Hectare of Land 5,43 Class U1 $36.15 per Hectare of Land 6,75 Targeted Differential Catchment Works Rate Seadown Drainage District Class A $44.73 per Hectare of Land 16,891 Class B $26.84 per Hectare of Land 12,496 Class C $8.95 per Hectare of Land 4,816 Class D $4.47 per Hectare of Land 42 Targeted Differential Catchment Works Rate Otaio River Rating District Class A $61.91 per Hectare of Land 25,89 Class B $24.76 per Hectare of Land 1,717 Targeted Differential Catchment Works Rate Kaikoura Drainage District 51

164 Part A: LTP 21525, Page A164 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Class A $24.37 per Hectare of Land 32,4 Class B $12.19 per Hectare of Land 761 Class C $7.31 per Hectare of Land 557 Targeted Differential Catchment Works Rate Cleardale Rating District Class A $.88 per Hectare of Land 1,13 Class B $.5 per Hectare of Land 132 Class C $.3 per Hectare of Land 38 Class D $.6 per Hectare of Land 132 Class E $.1 per Hectare of Land 124 Class F $. per Hectare of Land 33 Targeted Differential Catchment Works Rate Rakaia Double Hill Rating District Class A (prorated) $ the extent of provision of service to the rating unit 51,764 Targeted Differential Catchment Works Rate Buttericks Road Drainage District Class A (prorated) $13.81 the extent of provision of service to the rating unit 1,381 Targeted Differential Catchment Works Rate Chertsey Road Drainage District Class A (prorated) $8.63 the extent of provision of service to the rating unit 863 Targeted Differential Green Street Creek Drainage District 52

165 Part A: LTP 21525, Page A165 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Catchment Works Rate Class A (prorated) nil the extent of provision of service to the rating unit Targeted Differential Catchment Works Rate Lower Makikihi River Rating District Class A (prorated) $18.8 the extent of provision of service to the rating unit 1,88 Targeted Differential Catchment Works Rate Esk Valley Rating District Class A (prorated) $11.79 the extent of provision of service to the rating unit 1,179 Targeted Differential Catchment Works Rate Mount Harding Creek Rating District Class A (prorated) $46.1 the extent of provision of service to the rating unit 4,61 Targeted Differential Catchment Works Rate Omarama Stream Rating District Class A (prorated) nil the extent of provision of service to the rating unit Targeted Differential Catchment Works Rate Penticotico River Rating District Class A (prorated) $ the extent of provision of service to the rating unit 17,255 53

166 Part A: LTP 21525, Page A166 Forecast financial information TYPE OF RATE CATEGORIES OF RATEABLE LAND Subcatergorised as the following targeted rates: DIFFERENTIAL RELATIONSHIP BETWEEN CATEGORIES RATE $ CALCULATION BASIS 215/16 REVENUE SOUGHT $ Targeted Differential Catchment Works Rate Seadown Road Drain Rating District Class A (prorated) nil the extent of provision of service to the rating unit Targeted Differential Catchment Works Rate Twizel River Rating District Class A (prorated) nil the extent of provision of service to the rating unit 54

167 Part A: LTP 21525, Page A167 Forecast financial information Projected capital value The Canterbury region is made up of ten districts. Each district is valued at different times. It is important to take into account timing differences, so that ratepayers in districts that have been revalued more recently do not unfairly pay more than districts valued two or three years ago. To adjust for timing differences, we annually project all district values to work out an individual district's share of the general rate. This service is done by Quotable Value Ltd under contract to. General and targeted rate differentiation across the region District / City ECV $ District / City Valuation ECV $ District / City Valuation as at 3/9/14 % of ECV Revision Date as at 3/9/13 % of ECV Revision Date KAIKOURA 1,55,71,487.92% 1September212 1,385,416,388.93% 1September212 HURUNUI 6,,572,2 3.65% 1September213 5,573,672, % 1September21 WAIMAKARIRI 13,673,239, % 1August213 12,711,412, % 1July28 CHRISTCHURCH 89,615,865, % 1November213 81,37,815, % 1August27 SELWYN 17,437,462,25 1.6% 1July212 15,271,122, % 1July212 ASHBURTON 15,66,927, % 1July212 13,98,453, % 1July212 TIMARU 11,341,227,3 6.9% 1September214 1,496,771, % 1September211 MACKENZIE 3,12,963,85 1.9% 1July214 2,889,531, % 1August212 WAIMATE 4,2,62, % 1July213 3,887,345,22 2.6% 1September21 WAITAKI (pt) 1,897,69, % 1September214 1,763,395, % 1September212 Total 164,453,19, ,329,936,44 Projected land value Halswell River targeted rate differentiation District / City ELV $ District / City Valuation ELV $ District / City Valuation as at 3/9/14 % of ELV Revision Date as at 3/9/13 % of ELV Revision Date CHRISTCHURCH 67,38, % 1November ,389, % 1August27 SELWYN 1,228,542, % 1July212 1,12,86, % 1July212 Total 1,835,922,48 1,56,195,923 Projected rural land value targeted rate differentiation across the region District / City ERLV $ District / City Valuation ERLV $ District / City Valuation as at 3/9/14 % of ERLV Revision Date as at 3/9/13 % of ERLV Revision Date KAIKOURA 543,12, % 1September ,319, % 1September212 HURUNUI 3,418,428, % 1September213 3,15,12,4 9.77% 1September21 WAIMAKARIRI 4,12,38, % 1August213 3,832,834, % 1July28 55

168 Part A: LTP 21525, Page A168 Forecast financial information District / City ERLV $ District / City Valuation ERLV $ District / City Valuation as at 3/9/14 % of ERLV Revision Date as at 3/9/13 % of ERLV Revision Date CHRISTCHURCH 3,9,97, % 1November213 2,253,728, % 1August27 SELWYN 6,956,41, % 1July212 6,144,454, % 1July212 ASHBURTON 9,184,935, % 1July212 7,973,254, % 1July212 TIMARU 3,68,948, % 1September214 3,143,182, % 1September211 MACKENZIE 1,257,789, 3.55% 1July214 1,76,315, % 1August212 WAIMATE 2,677,731, % 1July213 2,412,748, % 1September21 WAITAKI 682,835,1 1.93% 1September ,191, % 1September212 Total 35,423,37,562 3,847,151,332 56

169 Part A: LTP 21525, Page A169 Forecast financial information Appendix 2: Funding impact statement The Local Government Act 22 and the Local Government (Financial Reporting) Regulations 211 require the Council to adopt a funding impact statement for both the Council and each group of activity. The objective of the policy makers is to provide information that is more easily understood. The funding impact statement must identify the sources of funding to be used, the amount of funds expected to be produced from each source and how the funds are to be applied. Income and expenditure in the funding impact statements are recognised on a basis consistent with the forecast financial statements. However, transactions with no funding impact, such as depreciation, have been removed. The Regulations also require each group of activity funding impact statement to disclose internal charges and cost allocation and not eliminate these as required by Generally Accepted Accounting Practice (GAAP). The activity statements exclude all transactions derived by business units. s business units include accommodation and fleet services and survey services; these costs do not directly relate to any group of activity. However, business unit transactions have been incorporated into the funding impact statement completed at a Council level. A reconciliation between the operating funding per the funding impact statement and the statement of comprehensive income has been performed at the end of the Council funding impact statement. The Revenue and Financing Policy sets out s policies with respect to which funding mechanisms are to be used to finance the operating and capital expenditure. Copies are available on our website ( or through Customer Services on tel

170 Part A: LTP 21525, Page A17 Forecast financial information Funding impact statement for Council Sources of operating funding General rates, uniform annual general charges, rates penalties Capital value UAGC Total general rates Targeted rates Catchment works Air quality Civil Defence Emergency Management Pest control Public Passenger Transport Regional parks Canterbury Water Management Strategy Total targeted rates Subsidies and grants for operating purposes Fees and charges Interest and dividends from investments Local authorities' fuel tax, fines, infringement fees, and other receipts Total operating funding Annual Plan 214/15 27,221 3,729 3,95 8, ,441 2,276 18, ,226 54,188 26,138 38, ,698 Long Term Plan 215/16 24,785 6,324 31,18 8,382 2,58 1,451 2,885 18, ,748 58,186 27,637 37, , /17 26,76 6,345 33,51 8,792 2,12 1,493 3,296 19,654 1,12 24,72 6,962 28,392 39, , /18 27,493 6,645 34,138 9,11 2,11 1,579 3,46 2,225 1,78 26,21 63,78 26,82 41, ,66 218/19 28,919 6,585 35,54 9,492 2,173 1,59 4,486 2,861 1,128 26,722 66,45 27,242 43, , /2 29,677 6,777 36,454 9,894 2,453 1,657 4,63 2,527 1,177 27,437 67,747 27,57 46, ,831 22/21 3,331 7,129 37,46 9,878 2,545 1,654 4,726 21,673 1,223 28,498 7,196 31,958 48, ,68 221/22 31,13 6,857 37,988 9,162 1,723 1,729 4,852 22,242 1,213 28,676 69,597 29,297 5, , /23 31,871 7,66 38,937 9,267 1,756 1,757 4,986 21,841 1,139 29,423 7,168 29,465 54, , /24 31,819 7,778 39,598 9,8 2,279 1,811 5,14 22,411 1,173 3,266 72,89 3,424 57, ,485 ($'s) 224/25 32,96 7,822 4,782 9,311 2,356 1,833 5,36 22,79 1,28 31,211 74,15 31,432 59, ,33 58

171 Part A: LTP 21525, Page A171 Forecast financial information Applications of operating funding Payments to staff and suppliers Finance costs Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Insurance proceeds Other dedicated capital funding Total sources of capital funding Application of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance Annual Plan 214/15 15, ,266 (568) 7,726 7,956 Long Term Plan 215/16 151, ,55 3,45 22, ,1 28,782 4,972 32,293 (9,52) 28, ,47 6,685 32,493 (12,726) 26,452 (3,45) 216/17 15,696 1, ,258 1, ,568 6,48 7,54 (2,321) 11,59 (1,23) 217/18 156,124 1,61 157,733 8, ,489 6,167 3,42 1,153 1,362 (8,873) 218/19 162,358 1, ,129 8,82 3, ,251 4,244 3,229 5,598 13,71 (8,82) 219/2 167,196 1, ,48 9,784 (624) 79 22/21 173,165 1, ,91 13,779 (3,911) ,16 3,474 1,315 9,949 (9,784) (3,12) 1,467 1,438 (1,228) 1,677 (13,779) 221/22 178,84 1, ,675 8,623 (2,55) 772 (1,778) 899 3,381 2,565 6,845 (8,623) 222/23 183,396 1, ,83 9,468 (2,51) 744 (1,757) 843 3,555 3,313 7,711 (9,468) 223/24 19,21 1, ,287 9,198 (2,949) 726 (2,223) 814 2,653 3,58 6,975 (9,198) ($'s) 224/25 197,252 1,86 198,339 8,694 (2,992) 843 (2,149) 747 3,134 2,664 6,545 (8,694) 59

172 Part A: LTP 21525, Page A172 Forecast financial information Annual Plan Long Term Plan 214/15 215/16 216/17 Reconciliation of operating funding to statement of comprehensive revenue and expense Surplus/(deficit) of operating funding (568) 3,45 1,23 Adjust for other sources of noncash funding excluded from the funding impact statement Depreciation expense (3,488) (3,376) (6,664) Insurance proceeds for capital works 13,1 Other nonoperating income/(expenditure) Surplus/(deficit) per statement of comprehensive revenue and expense 9,45 (331) 3, /18 8,873 (6,775) 2,98 218/19 8,82 (6,659) 2, /2 9,784 (6,35) 22/21 13,779 (7,148) 3,433 6, /22 8,623 (6,885) 1, /23 9,468 (6,838) 2,63 223/24 9,198 (6,846) 2,352 ($'s) 224/25 8,694 (6,48) 2,214 6

173 Part A: LTP 21525, Page A173 Forecast financial information Air quality Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/15 1, ,653 1, ,857 (24) (1,1) (1,1) Long Term Plan 215/16 216/17 1,344 1,193 2,58 2, ,797 3,457 2,843 2, ,65 1,31 4,17 3,582 (31) (125) (878) (866) (878) (866) 217/18 1,218 2, ,513 2, ,67 3,592 (8) (727) (727) 218/19 1,242 2, ,57 2, ,164 3,627 (57) (63) (63) 219/2 1,271 2, ,86 2, ,196 3, (469) (469) 22/21 1,33 2, ,99 2,532 1,227 3, (27) (27) 221/22 1,149 1, ,918 1, , /23 1,171 1, ,981 1,771 1,22 2, /24 1,519 2, ,854 2,417 1,246 3, ($'s) 224/25 1,57 2, ,982 2,492 1,285 3,

174 Part A: LTP 21525, Page A174 Forecast financial information Air quality Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/15 16 (1,463) (1,34) Long Term Plan 215/16 216/ (1,369) (1,164) (1,188) (991) / (969) (87) / (828) (66) /2 172 (526) (354) (115) 25 22/ (297) (12) (15) / (192) 2 222/ () 189 (189) / (4) 191 (191) 191 ($'s) 224/ (26) 26 62

175 Part A: LTP 21525, Page A175 Forecast financial information Biodiversity and biosecurity Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/15 4,43 3,277 1, ,892 1, ,13 (2,238) Long Term Plan 215/16 216/17 3,862 4,323 2,938 3, ,664 8,77 7,172 6,594 1,952 2,71 9,123 8,665 (1,459) /18 4,398 3, ,51 6,35 2,168 8, /19 4,767 4, ,969 7,676 2,276 9, /2 4,889 5, ,227 7,873 2,338 1, /21 5,16 5, ,498 8,83 2,399 1, /22 5,142 5, ,773 8,313 2,446 1, /23 5,27 5, ,84 8,557 2,513 11, /24 5,428 5, ,419 8,822 2,584 11,45 14 ($'s) 224/25 5,61 5, ,782 9,16 2,663 11,

176 Part A: LTP 21525, Page A176 Forecast financial information Biodiversity and biosecurity Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/15 3 (2,241) (2,238) 2,238 7 Long Term Plan 215/16 216/ (1,469) 32 (1,459) 42 1,459 (42) / (27) / (16) / (16) 16 22/ (16) / (14) / (14) / (14) 14 ($'s) 224/ (14) 14 64

177 Part A: LTP 21525, Page A177 Forecast financial information Canterbury Water Management Strategy Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/ , ,21 15,467 6,335 21, Long Term Plan 215/16 216/17 23,695 24, ,937 24,298 16,397 16,52 6,991 7,451 23,387 23, /18 25, ,79 17,125 7,846 24, /19 26, ,312 17,24 8,2 25, /2 26, ,16 17,681 8,421 26, /21 28, ,67 18,491 8,64 27, /22 28, ,233 18,474 8,876 27, /23 28, ,976 18,968 9,119 28, /24 29, ,84 19,541 9,375 28, ($'s) 224/25 3,7 32 3,732 2,149 9,662 29,

178 Part A: LTP 21525, Page A178 Forecast financial information Canterbury Water Management Strategy Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/ (264) 614 Long Term Plan 215/16 216/ (454) (391) (55) (795) / (333) 818 (818) / (98) / (128) 913 (913) /21 1,3 285 (352) 936 (936) / (883) / (888) / (888) 856 ($'s) 224/ (921)

179 Part A: LTP 21525, Page A179 Forecast financial information Transport, Greater Christchurch Rebuild and Urban Development Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/ ,566 23,193 21,274 63,926 62,11 1,866 64,2 (76) Long Term Plan 215/16 216/17 1, ,79 19,654 25,474 26,952 22,417 24,546 67,774 72,129 65,916 67,574 2,128 2,224 68,43 69,798 (269) 2, /18 1,1 2,225 25,931 25,742 72,98 7,138 2,326 72, / ,861 26,693 27,39 75,464 72,728 2,343 75, / ,527 26,942 29,766 78,128 75,434 2,413 77, / ,673 31,386 31,243 85,219 78,46 2,478 8,938 4,28 221/ ,242 28,79 32,795 84,685 81,454 2,527 83, / ,841 28,861 36,182 87,847 84,547 2,597 87, / ,411 29,83 37,965 91,17 87,797 2,671 9, ($'s) 224/25 1,21 22,79 3,783 39,836 94,43 91,22 2,753 93,

180 Part A: LTP 21525, Page A18 Forecast financial information Transport, Greater Christchurch Rebuild and Urban Development Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/15 42 (118) (76) Long Term Plan 215/16 216/17 3,7 (269) (1,369) (269) 2, (2,331) 74 1, / (444) 1, / (392) / (281) /21 7, (2,72) 4,28 (4,28) 1, / (74) 1, / (72) 1, / (72) 1,383 ($'s) 224/ (475)

181 Part A: LTP 21525, Page A181 Forecast financial information Flood Protection and Control Works Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/15 1,744 8, ,219 15,77 12, ,94 15, , ,23 Long Term Plan 215/16 216/17 1,761 1,845 8,382 8, ,817 4,821 15,29 15,789 9,423 9, ,22 2,145 11,936 12,114 3,355 3,675 1,268 3, ,54 3, /18 1,98 9, ,46 16,386 9, ,248 12,694 3,692 3, , /19 2,86 9, ,26 16,922 9,966 1,13 2,353 13,332 3,59 1, , /2 2,18 9, ,325 17,727 1,385 1,15 2,415 13,95 3,822 1, ,35 22/21 2,193 9, ,437 17,836 1,478 1,1 2,477 14,54 3,782 (1,715) 267 (1,448) 221/22 2,76 9, ,627 17,23 1,816 1,69 2,525 14,41 2,792 (624) 213 (411) 222/23 2,19 9, ,837 17,56 11,19 1,32 2,594 14,735 2,826 (575) 168 (47) 223/24 2,72 9, ,115 17,554 11, ,667 15,249 2,34 (1,23) 133 (89) ($'s) 224/25 2,142 9, ,59 17,89 11, ,749 15,637 2,253 (1,66) 232 (834) 69

182 Part A: LTP 21525, Page A182 Forecast financial information Flood Protection and Control Works Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/15 4,829 2, ,416 (393) 654 Long Term Plan 215/16 216/17 4,75 4,694 1,397 1,41 7,793 1,671 13,895 7,46 (3,355) (3,675) /18 4,72 1,33 1,584 7,337 (3,692) /19 3,191 1,36 1,475 5,72 (3,59) /2 3,881 1, ,857 (3,822) /21 1,19 1,144 2,334 (3,782) /22 1,15 1,231 2,381 (2,792) /23 1,176 1,243 2,419 (2,826) / ,292 1,414 (2,34) 7 ($'s) 224/ ,419 (2,253) 699 7

183 Part A: LTP 21525, Page A183 Forecast financial information Hazards, Risks and Safety Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/15 4,855 2, ,444 8,99 5,517 3,659 9,275 (366) Long Term Plan 215/16 216/17 4,849 5,86 2,44 2, ,412 1,379 9,81 9,864 6,718 7,74 2,627 2,944 9,345 1,17 (264) (153) 217/18 6,8 2,656 1,45 1,69 7,16 3,86 1,192 (122) 218/19 6,32 2,718 1,454 1,473 7,355 3,23 1,558 (85) 219/2 5,77 2,834 1,496 1,1 7,68 3,114 1,182 (81) 22/21 5,928 2,877 1,542 1,347 7,222 3,195 1,417 (7) 221/22 6,73 2,942 1,59 1,66 7,496 3,258 1,755 (149) 222/23 6,215 2,895 1,662 1,773 7,711 3,348 11,59 (286) 223/24 6,413 2,984 1,78 11,16 7,969 3,442 11,411 (36) ($'s) 224/25 6,61 3,41 1,758 11,49 8,179 3,547 11,726 (318) 71

184 Part A: LTP 21525, Page A184 Forecast financial information Hazards, Risks and Safety Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/ (643) (366) Long Term Plan 215/16 216/ (718) (775) (264) (153) / (235) (122) / (21) (85) /2 119 (21) (81) / (193) (7) / (275) (149) / (417) (286) / (441) (36) ($'s) 224/25 14 (458) (318)

185 Part A: LTP 21525, Page A185 Forecast financial information Planning, Consents and Compliance Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/15 7, ,761 16,26 8,466 7,295 15, Long Term Plan 215/16 216/17 7,791 8, ,83 7,377 15,174 15,866 7,934 8,93 7,129 7,536 15,62 15, /18 8, ,525 16,343 8,195 7,94 16, /19 8,752 7,749 16,52 8,43 8,181 16, /2 9,669 7,94 17,69 8,77 8,576 17, /21 9,93 8,139 18,69 9,9 8,796 17, /22 1,288 8,37 18,658 9,275 9,148 18, /23 1,565 8,622 19,187 9,563 9,398 18, /24 1,67 8,856 18,923 9,236 9,465 18, ($'s) 224/25 1,398 9,114 19,512 9,535 9,755 19,

186 Part A: LTP 21525, Page A186 Forecast financial information Planning, Consents and Compliance Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/ (143) 142 Long Term Plan 215/16 216/ (111) (238) / (244) / (277) / (263) / (264) / (235) / (226) / (223) 223 ($'s) 224/ (222)

187 Part A: LTP 21525, Page A187 Forecast financial information Regional Leadership Sources of operating funding General rates, uniform annual general charges, rates penalties Targeted rates Subsidies and grants for operating purposes Fees and charges Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding Applications of operating funding Payments to staff and suppliers Finance costs Internal charges and overheads applied Other operating funding applications Total applications of operating funding Surplus/(deficit) of operating funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase/(decrease) in debt Gross proceeds from sale of assets Lump sum contributions Other dedicated capital funding Total sources of capital funding Annual Plan 214/15 8, ,542 1,629 7,441 3,292 1,733 (14) Long Term Plan 215/16 216/17 1,327 1, ,367 1,333 11,76 12,125 8,91 8,48 3,459 3,62 12,359 12,9 (6) /18 11, ,368 12,529 8,523 3,828 12, /19 11, ,396 12,951 9,6 4,5 13,111 (16) 219/2 11, ,433 13,288 8,793 4,163 12, /21 12, ,472 13,721 9,113 4,272 13, /22 12, ,511 13,91 9,952 4,357 14,38 (398) 222/23 12, ,587 14,314 9,544 4,481 14, /24 13, ,631 14,822 9,934 4,67 14, ($'s) 224/25 13, ,68 15,24 1,734 4,749 15,482 (278) 75

188 Part A: LTP 21525, Page A188 Forecast financial information Regional Leadership Applications of capital funding Capital expenditure to meet additional demand to improve the level of service to replace existing assets Increase/(decrease) in reserves Total applications of capital funding Surplus/(deficit) of capital funding Funding balance The above table excludes depreciation and amortisation of Annual Plan 214/15 2 (124) (14) 14 5 Long Term Plan 215/16 216/ (955) 18 (6) (116) / (178) /19 16 (176) (16) / (332) / (336) /22 24 (422) (398) / (289) / (281) 7 ($'s) 224/25 26 (34) (278)

189 Part A: LTP 21525, Page A189 Forecast financial information Appendix 3: Financial prudence LongTerm Plan disclosure statement for the period commencing 1 July 215 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 LongTerm Plan in accordance with the Local Government (Financial Reporting and Prudence) Regulations 214 (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. Rates (income) affordability The following graph compares the Council's planned rates income with a quantified limit on rates contained in the Financial Strategy included in this LongTerm Plan. The quantified limit on total rates will not exceed 6 per cent of total revenue in any given year. Rates (increases) affordability The following graph compares the Council's planned rates increases with a quantified limit on rates increases contained in the Financial Strategy included in this LongTerm Plan. The quantified limit is the three year average annual increase in Local Government Cost Index +1 per cent. 77

190 Part A: LTP 21525, Page A19 Forecast financial information Debt affordability benchmark The Council meets the debt affordability benchmark if its planned borrowing is within each quantified limit on borrowing. The following graph compares the Council's planned debt and quantified limit on borrowing contained in the Financial Strategy included in this LongTerm Plan. The quantified limit is 6 per cent of total rates revenue. 78

191 Part A: LTP 21525, Page A191 Forecast financial information Balanced budget benchmark The following graph displays the Council's planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments and revaluations of property, plant or equipment) as a proportion of operating expenses (excluding losses on derivative financial instruments and revaluations of property, plant and equipment). The Council meets this benchmark if its planned revenue equals or is greater than its planned operating expenses. The Council has planned for a small use of financial reserves in 216. This use of reserves reduces the amount required from other revenue sources, while still enabling the Council to undertake its planned work programme. While the graph reports a rounded figure of 1 per cent, the actual measure is 99.8 per cent. Essential services benchmark The following graph displays the Council's planned capital expenditure on network services, i.e flood protection, as a proportion of depreciation on network services. The Council meets this benchmark if its planned capital expenditure on network services equals or is greater than expected depreciation on network services. 79

192 Part A: LTP 21525, Page A192 Forecast financial information Additional information or comment The Council does not depreciate flood protection stopbanks because these are maintained to an agreed level of service. Items such as floodgates are depreciated but the value of that is small in comparison with the overall flood protection capital spend. In addition, a major construction and capitalisation of a new stopbank is underway. Not meeting the benchmark usually implies that infrastructure is running down. This is not the case here because the vast majority of the capital expenditure spend is on creating new stopbanks, which are maintained thereafter. Therefore, upon completion in 223, they will be in a state where low or no levels of further capital expenditure are appropriate. Debt servicing benchmark The following graph displays the Council's planned borrowing costs as a proportion of planned revenue (excluding development contributions, financial contributions, vested assets, gains on derivative financial instruments and revaluations of property, plant or equipment). Because Statistics New Zealand projects the Council's population will grow faster than the national population growth rate, it meets the debt servicing benchmark if its borrowing costs equal or are less than 1 per cent of its revenue. 8

193 Part A: LTP 21525, Page A193 Forecast financial information 81

194 Part A: LTP 21525, Page A194 Significance and Engagement Policy (summary)