ISSN 1173-4477(print) ISSN 1177-9896 (online)
N APIE R CITY COUNCIL
Annual Plan 2014/15
Adopted 18 June 2014
Prepared in accordance with the requirements of the Local Government Act 2002 Hastings Street Private Bag 6010, Napier 4142 Telephone: (06) 835 7579 Fax: (06) 835 7574
Cover Photograph courtesy of Kirsten Simcox
Contents Mayor and Councillors
Mayor ‘s Message
Annual Plan Responding to Napier’s Changing Needs
Strategic Priorities
Regional Collaboration and Shared Services
Financial Performance Measures
Changes to Council’s Reporting
Financial Prudence Benchmarks
Statement of Accounting Policies
Significant Forecasting Assumptions
Prospective Statement of Comprehensive Revenue and Expense
Prospective Statement of Revenue and Expense
Prospective Statement of Changes in Net Assets/ Equity
Prospective Statement of Financial Postion
Prospective Statement of Cash Flows
Notes of Changes Between the 2014/15 Ten Year Plan and 2014/15 Annual Plan
Special Funds
Borrowing Programme
Prospective Capital Plan
Funding Impact Statement (Whole of Council)
Consultation Process
Mandatory Non-Financial Performance Measures
Financial Information
Activity Groups Democracy and Governance
Roading
Solid Waste
Stormwater
Sewerage
Water Supply
Recreation
Social and Cultural
City and Business Promotion
Planning and Regulatory
Property Assets
Support Units
Glossary of Terms
Mayor and Councillors Mayor
Mission Statement To provide the Facilities and Services and the Environment, Leadership, Encouragement and Economic Opportunity to make Napier the best city in New Zealand in which to live, work, raise a family, and enjoy a safe and satisfying life.
Bill Dalton
Councillors
Maxine Boag
Annette Brosnan
Mark Hamilton
Mark Herbert
Tony Jeffery JP
Nelson Park
Onekawa/Tamatea
Nelson Park
Ahuriri
At Large
Keith Price
Michelle Pyke
Roy Sye
At Large
At Large
At Large
Graeme Taylor
Faye White
Kirsten Wise
Taradale
At Large
Taradale
Rob Lutter resigned from his position of Councillor at Large on 22 May 2014. A By-Election is underway to fill the vacancy.
Napier City Wards: Ahuriri Ward, Taradale Ward, Nelson Park Ward, Onekawa-Tamatea Ward
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Napier City Council Annual Plan 2014/2015
Mayor’s Message Our Annual Plan details what we are proposing in the 2014/15 financial year and what variations are planned to the Ten Year Plan adopted by the city in 2012.
The Annual Plan provides a sensible path to follow in the development of our city. We have managed to keep our rate increase to 1.8% whilst at the same time maintaining the high level of service that Napier residents have come to expect.
We have recently had the status of our infrastructure and our plans for infrastructure upgrades independently assessed. To quote the consultant:
“The findings of the report outline that Napier:
Has very low debt levels and higher than average equity per ratepayer, and as a result is in a highly enviable position compared to most city councils in New Zealand.
Is sufficiently funding current asset renewals.
Has no observable backlog of renewals.
Has assets that can provide current service levels.”
One area of concern is the reduction in the levels of NZ Transport Authority project funding. The decision by Napier City Council to fund the extension of Ford Road is a direct result of the redirection of NZTA funding. The Ford Road extension is vital for unlocking Onekawa and providing economic development opportunities as well as addressing transport issues on Prebensen Drive.
Major Capital Projects In addition to Council’s programme of infrastructural asset renewal and other routine capital expenditure, the major capital projects included in the Prospective Capital Plan are:
Taradale Stormwater Upgrade
Wastewater Outfall Replacement
Awatoto Water Supply Trunk Main
Park Island Sportsgrounds expansion
Napier Aquatic Centre Enclosure Building
Passive Recreation Reserves and Reserves Pathways and Linkages. Additional Reserve facilities which will cater for Napier’s population growth
Omarunui Landfill Development
Te Awa Structure Plan Stages 1 & 2 – Roading, Stormwater, Wastewater and Water Supply
We are continuing to investigate the provision of a world class Skate Park on the former Marineland site. We will be undertaking a special consultative process on the project. Funding has been set aside should the project proceed.
Thank you to all submitters to the plan and congratulations to everyone for making Napier such a wonderful place in which to live, work and play.
Bill Dalton MAYOR
Napier City Council Annual Plan 2014/2015
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Consultation Process Explaining the Plan This Annual Plan 2014/15 has been prepared in accordance with the Local Government Act 2002. Its purpose is to identify any variations from the Ten Year Plan (TYP) for the coming financial year. Information for consultation contained in the Plan includes:
The proposed Annual Budget and Funding Impact Statement for 2014/15.
Variations from the Financial Statements and Funding Impact Statement included in the TYP related to 2014/15.
Performance Targets for Council Activities for 2014/15.
This Annual Plan must be read in conjunction with the 2012/13 to 2021/22 TYP. Copies of this document are available from the Napier City Council Civic Building and Council’s website www.napier.govt.nz.
Annual Plan Consultation Process
Draft Annual Plan adopted by Council on Wednesday 9 April 2014
Draft Annual Plan available for the public from Monday 14 April 2014.
Draft Annual Plan Summary contained in Proudly Napier distributed to households on Wednesday 16 April 2014.
An invitation was extended to any groups of citizens or individual citizens who wish to meet with the members of Council to discuss issues contained in the Draft Annual Plan.
Submissions closed NOON Friday 16 May 2014
Long Term Plan and Annual Plan Committee Meeting heard and considered submissions 5 and 6 June 2014.
Annual Plan adopted by Council on Wednesday 18 June 2014.
Changes from the Draft Annual Plan Changes from the Draft Annual Plan The consultation process resulted in one change to the Annual Plan:
Napier Sailing Club. A one off grant of $34,000 for the Southern Ramp Project funded from the Hawke’s Bay Harbour Board Land Income Account
Other financial changes arising from decisions since the preparation of the Draft Annual Plan:
Art Deco grant - CPI adjustment of $400 funded from rates.
Trade Waste Income. Reduction of $223,400 funded from rates. The Trade Waste income included in the Draft Annual Plan was calculated using an anticipated level of user charge income. Due to user affordability the Fees and Charges adopted by Council on 21 May 2014 were set at a lower level.
Sewerage Depreciation reduced by $233,400 and Sportsgrounds Depreciation (non funded) reduced by $216,000. The timing of the completion of some capital projects has been updated.
Dog Agility Track Riverside Park. $60,000 funded from the Dog Control Account has been added to the Capital Plan for this project.
Loan Servicing Costs reduced by $228,300 funded from rates. This reduction is due to timing of roading capital expenditure where loan funding will not be required until 2015/16.
Art Deco Buses have been taken out of the plan. The removal of the operating income and costs will add $9,000 to rates and depreciation (non funded) will reduce by $133,400.
Borrowing Programme. The projected level of public debt at June 2015 in the Annual Plan is $3million below the level projected in the Draft Annual Plan as a result of savings in the capital cost of the Wastewater Treatment project.
The net change for rates funding is an increase of $4,500 which is able to be accommodated without impact on the overall rates increase of 1.8%. Other decisions from the consultation process that do not impact on the Annual Plan are as follows:
Additional Surf Life Saving NZ grant for services at Waipatiki Beach $12,500 funded from existing Community Development Grant Budget (rates)
Napier Civic Choir grant of $7,500 pa for the next three years funded from existing Community Development Grant Budget (rates)
Ahuriri Business Association grant of $10,000 funded from existing City Promotion Budget (rates)
Te Matau a Maui Voyaging Trust grant of $9,000 funded from Council Contingency (rates)
Historic Places Trust grant of $500 pa funded from existing Planning Heritage Grant Budget (rates)
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Napier City Council Annual Plan 2014/2015
Annual Plan - Responding to Napier’s Changing Needs The Annual Plan gives shape to the changing dynamics of our city, outlining the Napier City Council’s spending programme for the coming year and beyond. This, the 2014/15 Annual Plan, considers “housekeeping” needs, addresses infrastructural maintenance and improvements and looks to big picture developments aimed at progressing the city and making Napier a better place for all. Parklands development helps fund most new capital undertakings – such as the newly completed intercity bus depot and Marine Parade developments. Rates fund infrastructure construction, maintenance and operating costs.
Changes from the Ten Year Plan and 2013/14 Annual Plan The Annual Plan includes an increase of 1.8% for rates revenue (excluding the increase arising from growth). This is in accordance with the 10 year plan’s commitments of no more than 1.1% above CPI (using 2012/13 CPI) but varies from the 2014/15 year forecast in the Ten Year Plan increase by 0.4% or $188,300. Differences arise from the operating costs of the new projects undertaken in 2013/14. These are the Bus Terminal $62,000, dangerous trees in Napier Cemetery $75,000 and the cost of additional staff (Tourism and event related) $51,300. Two new Capital projects have been added since the Ten Year Plan and last year’s 2013/14 Annual Plan: a.
Perfume Point Reserve Beach Landscaping has been included in the Prospective Capital Plan. This project is scheduled for 2014/15 and the cost of $105,000 will be funded from the HB Harbour Board Endowment Land Income Account. The costs of ongoing maintenance, $5,000 pa, has been included in the plan.
b.
A Dog Agility Track at Riverside Park, Taradale has been included in the Prospective Capital Plan. This project is scheduled for 2014/15 and the cost of $60,000 will be funded from the Dog Control Account. The costs of ongoing maintenance are expected to be able to be funded within existing maintenance budgets.
Additional items under consideration by Council are: a.
Marine Parade Development. Council is currently developing plans for the next stage of this development. An outline of the proposed concepts for a roller sports venue, Reef Garden, replacement carpark, and grassed amphitheatre on the current Marineland site and a pump track south of the carpark opposite the Ellison Street entrance are included in the plan for information purposes only. These projects are not included in the financial provisions of the Annual Plan and will be consulted separately at a later date if Council elects to proceed to public consultation.
b.
An Artificial Surfing Lagoon project is under consideration by Council and currently subject to a Business Case. The project is in the plan for information purposes only. It is not included in the financial provisions of the Annual Plan and further progress is dependent on the conclusions reached in the Business Case.
Rate Changes This plan includes an average 1.8% increase in rates. 2014/15 is also year three of the phase in of the revised basis of allocation of general rates between residential and non-residential properties. This change, adopted in the 2012 TYP, shifted the allocation basis for general rates from 66% Residential and 34% Non-Residential to 67% Residential and 33% Non-Residential. This changed the general rate differentials, effectively increasing residential rates by about 1%, with a corresponding decrease in non-residential rates. For 2014/15, the combined rating effect of the proposed rate increase and the change in general rate differentials results in increases for residential properties, averaging between 2.7% to 3.2% , while commercial / industrial properties see reductions averaging between 1% to 3%. Examples of the impact of the rating proposals are shown on page 79.
Roading Projects The Annual Plan includes ongoing renewals and maintence of Council’s road and footpath network. Stage 2 of the refurbishment of Hastings Street, from Albion Street to Tennyson Street, which was delayed for a year due to the the extensive building work in Hastings Street was postponed but is due to start May 2015. The delayed upgrade of the Browning Street/Marine Parade intersection, on hold during the reconstruction of the MTG Hawke’s Bay, will proceed during 2014/15 with the construction of a new roundabout. Once funding is identified, further roundabouts may be constructed on the Marine Parade to address heavy traffic issues. This will be considered in the process for the 2015/25 TYP.
Domett Street Extension Planning and Traffic Reports on future traffic requirements for Ahuriri identified the future need for improved traffic flow in the Ahuriri area. The proposed solution was to build an extension to Domett Street. Napier City Council Annual Plan 2014/2015
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Annual Plan - Responding to Napier’s Changing Needs continued To enable Council to proceed with investigation work on this project a budget of $1.5M funded from Financial Contributions has been included in the Ten Year Plan. This is estimated at half the requirement for the project. The balance of the project will be included in the next Ten Year Plan.
West Quay Parking There is an identified need for additional parking at West Quay. Solutions and funding options for this project will be investigated during the year. When a viable solution is determined it will be included in a future plan.
Single Lane West Quay Funding options for this project will be investigated this year. However the project is dependent on the solution for West Quay parking issues. (See above)
Ford Road Extension The extension of Ford Road onto the Severn Street roundabout is required for four-laning of Prebensen Drive. This project enables the intersection of Austin Street and Prebensen Drive to be reduced to left in left out operation. NZTA has decided to not fund this project in the current 3 year funding round. In order for work to proceed Council has decided to forgo the subsidy on this project. Council will use the funding provided in past plans for the Prebensen Drive / Ford Rd project and review the source of Council’s share of the Prebensen Drive four laning at the next Council Ten Year Plan. Council will continue to seek subsidy for the Prebensen Drive four laning either as a whole or as part of a split funded package of works based on the renewal requirements of the current road. Ford Road extension will commence in mid 2014 and is expected to be completed by early 2015.
Park Island Expansion $5.1M is included in the Annual Plan for the development of the Park Island sports complex. Development work is guided by Council’s adopted master plan for the complex and in 2014/15 preparatory groundwork for the Northern Sports Hub will commence.
PARK ISLAND MASTER PLAN
Sportsgrounds, Reserves and Green Spaces With Napier being a host city for the 2015 Cricket World Cup, funding of $0.25M has been included in the plan. Funding is proposed to be spread over two years to ensure our sportsgrounds are looking their best.
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Napier City Council Annual Plan 2014/2015
Annual Plan - Responding to Napier’s Changing Needs continued Council will continue to develop and expand its reserve network through appropriate walkways and linkages throughout the city. Funding contained in this Annual Plan and past plans for the reprofiling of Westshore beach is subject to the granting of a consent to construct a breakwater to stabilize the southern end of the beach.
Marine Parade Development - Progress to Date Marine Parade Development is progressing and the extension to the May and Peter Harris Playground, Junior Cycle Track and the landscaping project between the playground and the National Aquarium of New Zealand, have all been completed. The revitalized Marine Parade will play an important role in securing Napier’s future as a key tourism destination. Council has been investigating options for the future development of the current Marineland site and the carpark area to the north of Marineland. Work is proceeding on development of an option for a world class roller sports venue, an adjacent interactive water-play recreation area (Reef Garden), a replacement carpark, and a grassed amphitheatre linked to the southern end of the sunken gardens. A feasibility study of options for the development of the site has been completed and a business case for this option is in progress but has yet to be approved by Council. The cost of this redevelopment option is estimated at $5.7M. Should the project proceed, funding has been identified for $5.7M which will not impact rates.
PROPOSED SKATE PARK
PROPOSED REEF GARDEN Napier City Council Annual Plan 2014/2015
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Annual Plan - Responding to Napier’s Changing Needs continued Any option chosen by Council will require an amendment to the Ten Year Plan and Council will conduct a separate consultation process for the amendment.
Artificial Surfing Lagoon - Progress to Date As part of the redevelopment of the Marine Parade,Council is also considering an artificial surfing lagoon. The technology used by Wavegarden generates perfectly formed tubing waves that peel for more than 220 metres without losing power or shape. It is the longest artificial surfing wave in existence, and the wave quality, shape and speed, are suitable for the highest levels of performance surfing. The development of an artificial surfing lagoon within Napier would provide a unique tourist attraction and a high quality recreation experience for visitors and locals. Council is considering the concept and has requested that an indicative Business Case be prepared which will enable Council to decide whether to proceed to develop a full Business Case for the project. Council’s proposed involvement in this project will be determined by Council following the development of the business case.
Marine Parade Pump Track - Progress to Date The Napier City Council is considering a proposal to develop a pump track on Marine Parade, south of the carpark opposite the Ellison Street entrance. A pump track is a continuous circuit of rollers, berms and jumps that loops back on itself allowing the rider to continuously ride it. This full size pump track will replace the junior pump track that is currently on the site and will cater for a much wider range of skills, abilities and ages. The pump track will cover an area of 60 metres long by 30 metres wide and will consist of 500 metres of continuous tracks as shown in the concept drawings. Cost of construction is estimated at $140,000. Council is seeking external funding for the project.
PROPOSED PUMP TRACK Should the project proceed, the cost of on-going maintenance will apply from the 2015/16 year and will be included in the 2015 Ten Year Plan.
Arts Centre Fund raising is well underway for the refurbishment of the relocated former Borough Council Building. The building, registered as a Category II historic place, will become a base for Creative Napier and a venue for exhibitions and community arts programmes. Funding will be provided from the creative sector for part of the cost of this project.
Napier Aquatic Centre Funds are included in the Annual Plan for the upgrade of the old Lap Pool enclosure. However, before the project is commenced,
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Napier City Council Annual Plan 2014/2015
Annual Plan - Responding to Napier’s Changing Needs continued a seismic assessment of the full Onekawa complex will be undertaken to ensure that the complex meets present earthquake standards, prior to any new capital expenditure.
Water Supply Upgrades Construction will commence in 2014/15 of a staged construction extending a new Trunk main from Erikson Road Te Awa, adjacent to the cross country drain, north to Georges Drive, Latham Street and McDonald Street. This will transfer water from an additional new well in the Meeanee/Awatoto area to the city wide network, and provide additional capacity for the growth of the Te Awa development.
Sewerage The Biological Trickling Filter Treatment Plant is due for completion by the end of August 2014. The Annual Plan includes a number of sewer pipe renewals carried out as part of Council’s normal infrastructure maintenance
The Annual Plan includes a number of stormwater projects. These include:
Te Awa – a stormwater detention reserve will be constructed in the Te Awa area to provide retention capacity for rainfall events. The reserve will cover 5.5 Ha and include stream and wetland plantings, grassed areas and walkways enabling it to be used as a recreational area. Construction is weather dependent and may occur over two years.
Scale - Not to Sclae
NORTH
Stormwater
CONCEPT PLAN
Walkway connecting to adjacent streets
Open grass area
Open grass area
Grass batter slope 1:5 to meet reserve level at RL11.28m
Batter slope to wetland channels to be mass planted with Carex secta
Pump forebay Pump Station (location yet to be determined)
Open grass area
Wetland margins planted with ax and divaricating plant species (saltmarsh ribbonwood)
Boardwalk through wetland basin
Channels to be fully planted with riparian plant species Open grass area
Wetland channel and margins to be planted with jointed twig rush, bamboo spike sedge and oioi grass
Minimum 4m width reserve area $5.0M will be spent over this and the around perimeter of the pond to allow for maintenance access next two financial years providing piped drainage in the Perry Crescent, Walkway connecting to adjacent streets Guppy Road and Osier Road areas to Te Awa Estates NCC Pond Concept alleviate flooding risks in these areas. The piped drains will ultimately connect to an extended and refurbished open drain adjacent to the Expressway which transfers stormwater to the Pirimu drain.
CBD – in addition to completing the viewing platform over the new Tennyson Street marine outfall, continuing capacity upgrades to reduce flooding risks in the CBD are included in this Annual Plan. These include extending the network on Tennyson street from Hastings Street to Milton Road which will take place over a number of years.
Seismic Assessments of Council Owned Buildings Seismic assessments of major Council owned buildings is being carried out on a priority basis. This will enable Council to obtain an overall picture of the costs Council will potentially be facing to meet revised building standards and enable Council to plan and prioritise any required remedial work. Once the assessments are completed funding requirements for required building works will be considered in the 2015/25 Ten Year Plan. Any urgent works will be dealt with case by case.
Art Deco buses At its meeting on 9 April 2014 Council resolved that the Art Deco bus service be discontinued. Council will consider this recommendation at its meeting on 9 April 2014.
Napier City Council Annual Plan 2014/2015
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Annual Plan - Responding to Napier’s Changing Needs continued Perfume Point Reserve Beach Landscaping Council has added a project to the Prospective Capital Plan for the landscaping of the section of the foreshore at the Perfume Point reserve, between the two public car parks. This will create a more attractive, sheltered and ‘user friendly’ environment along this part of the popular Ahuriri Beach.
Dog Agility Track Council has added a project to the Prospective Capital Plan to develop a Dog Agility Track at Riverside Park in Taradale. This will provide a valuable area for owners to exercise their dogs.
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Napier City Council Annual Plan 2014/2015
Strategic Priorities Napier City Council’s Strategic Plan is represented by the following table. The Strategic Plan was included in the 2012 Ten Year Plan and has been reviewed as part of this budget process.
Rates
Napier citizens will have affordable services and quality infrastructure.
Essential Services
Security & Community
Recreation
Napier will offer lifestyle opportunities for citizens and visitors.
Cultural
Environment
Commercial
Napier is a leading commercial and tourist centre.
Growth
Economic Development
Napier City Council Annual Plan 2014/2015
Maintaining affordability
Equity
Fairness
Funding review
Fees and charges
Quality not quantity
Ford Road Extension
Stormwater upgrades
Completion of BTF Wastewater Treatment Plant
Pathways
Marine Parade family friendly upgrades
Maraenui upgrade phase 2
Youth programme
Support for community initiatives
Aquatic Centre upgrade
Guppy Road Sports Village
Park Island Sportsgrounds implementation
Heritage inventory
Arts & Cultural policy review
Art in public places
Community Art Centre
Tree planting
Reducing solid waste to landfill
Minimising carbon footprint
Education
Westshore/Whakarire reprofiling
Urban design guide
Hastings Street upgrade - stages 2 & 3
Master Plan for CBD
Heretaunga Plains Urban Strategy Implementation
Joint District Plan
City promotion and marketing
Napier Tourism
Napier Promotion
Lagoon Farm Business Park
Regional initiatives/Shared Services
Master
Plan
Development
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Strategic Priorities continued The Community’s Desired Outcomes The Community Outcomes were originally determined from an extensive consultation process with the community in 2003/04, which included telephone surveys, district meetings with key stakeholders, mail outs, media campaigns and interviews. The outcomes that have been developed represent the views of individuals and organisations on the important ingredients for the future economic, social, cultural and environmental wellbeing of the region.
Napier City Community Outcomes
Indicator
••A lifetime of good health and wellbeing.
Health
••Safe and secure communities.
Safety
••An environment that is appreciated, protected and sustained for future generations.
Sustainability
••Transport infrastructure and services that are safe, effective and integrated.
Transport
••A strong, prosperous and thriving economy.
Economy
••Strong leadership.
Leadership
••Supportive, caring and inclusive communities.
Community
••Safe and accessible recreational facilities.
Recreation
••Communities that value and promote their unique culture and heritage.
Cultural
Community outcomes provide a longer-term perspective on the development of Napier City and provide the Napier City Council with a framework for contributing to these community aspirations through Council activities. Each of Council’s activities contributes to some or all of the Community Outcomes, thus contributing to the general wellbeing of Napier. The broad scope of the outcomes and their highly integrated nature require a great emphasis on cooperative and collaborative approaches with other organisations in the City and region to address these important community issues. The Napier City Council will continue to work closely with other organisations, as appropriate, in addressing the Community Outcomes. Where practical collaborative planning, policy, funding and service delivery initiatives are being pursued on an ongoing basis with all local Councils.
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Napier City Council Annual Plan 2014/2015
Regional Collaboration and Shared Services Napier City Council, Hastings District Council, Hawke’s Bay Regional Council, Wairoa District Council and Central Hawke’s Bay District Council have for some time been exploring “Shared Services” initiatives. A number of joint activities have already been undertaken by the authorities with the aim of reducing the cost of performing those activities for the community at large. For example the Councils cooperate in the areas of rating valuation services, purchase of insurance, and strategy development such as the Heretaunga Plains Urban Development Strategy (HPUDS). The Heretaunga Plains Urban Development Strategy has been completed with urban containment being a principle philosophy. The Omarunui Landfill is an example where the Councils jointly operate a facility for the benefit of the collective communities at Napier and Hastings where it is unlikely that one council on its own could achieve such benefits. In 2012, the Hawke’s Bay Local Authority Shares Services Limited (HBLASS) was formed. The company is jointly owned by the five Hawke’s Bay local authorities and has as its purpose to facilitate shared services, promote joint procurement and facilitate best practise and efficiencies in delivering activities and services. The table below sets out many of the areas where the five Hawke’s Bay Councils have or are currently working together to provide effective and efficient services to the people of Hawke’s Bay. Hawke's Bay Regional Council
Wairoa
Napier
Hastings
District Council
City Council
District Council
Hawke's Bay Museum Trust
Settlement Support Service
Youth Transition Service
Initiatives
Central Hawke's Bay District Council
Community Services Pettigrew Green Arena Sport Hawke's Bay Shared Library Service Pathway Development
Regional Cultural Archives
Road Safety Initiatives
Joint Property Valuation Contract
Joint Insurance and Energy Procurement
Business Hawke’s Bay
Tourism Hawke's Bay
Corporate Support
Economic Hawke's Bay Airport Ltd
Essential Infrastructure Recreational Water Quality Monitoring Joint Recycling and Refuse Collection Contracts Strategy and Planning Omarunui Joint Landfill Stormwater Drainage
Regional Transportation Strategy
Heretaunga Plains Urban Growth
Napier / Hastings Joint District Plan
Solid Waste Management Plan
Regional Strategic Coordination Group
Civil Defence Group
HBLASS
Policy Sharing
Joint Alcohol Strategy Joint Regulatory Training
Joint Regulatory Purchasing
Local Alcohol Policy
Napier City Council Annual Plan 2014/2015
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Financial Performance Measures Actual 2012/13 ($000) 45,938 7,837 80,147 2,021 32,750 1,378,123 53.48% 0.15% 7.5% -
Rates Revenue Net Surplus Working Capital
Annual Plan 2014/15 ($000)
TYP 2014/15 ($000)
TYP/ AP 2013/14 ($000)
47,081
48,846
46,134
7,730
10,478
12,425
15,937
8,142
12,650
4
5
12
54,252
60,022
53,819
1,454,344
1,470,159
1,375,197
Net Public Debt (External) Internal Debt Total Assets % Rates Revenue to Total Revenue
52.2%
48.6%
47.9%
Net Public Debt as a percentage of Total Assets
0.0%
0.0%
0.0%
Proportion of Rates Revenue applied to service Total Debt (%)
8.2%
10.3%
9.2%
Rates increase to existing ratepayers year on year *
1.8%
3.1%
1.2%
Note (*): *Excludes expected rating revenue increase arising from growth in the rating base. Revenue from rates including growth is expected to increase 2.0% over the 2013/14 Annual Plan.
This is where each of your rates dollars go Roading Wastewater Stormwater Water Supply Sportsgrounds Libraries Reserves Democracy and Governance Solid Waste HB Museum and Art Gallery Napier Aquatic Centre Community Planning Public Toilets Regulatory Consents City and Business Promotion National Aquarium of NZ Planning Policy Cemeteries Emergency Management Environmental Health Building Consents Napier i-SITE Visitor Centre Napier Municipal Theatre Inner Harbour Animal Control War Memorial Conference Centre Marine Parade Pools Halls Retirement and Rental Housing
22.52c 13.40c 7.52c 7.43c 6.40c 6.13c 5.64c 4.43c 4.04c 3.34c 2.79c 2.54c 1.62c 1.51c 1.47c 1.27c 1.25c 0.85c 0.82c 0.72c 0.72c 0.65c 0.63c 0.52c 0.43c 0.43c 0.40c 0.32c 0.22c
0.00c
16
5.00c
10.00c
15.00c
20.00c
Napier City Council Annual Plan 2014/2015
25.00c
Changes to Council’s Reporting The Annual Plan 2014/15, Council’s Annual Report for the year ended 30 June 2014 and the Ten Year Plan 2015/25 have been impacted by a number of legislative and Accounting Standard changes, all designed to promote greater accountability and transparency by local authorities.
Non Financial Performance Measures In 2010 amendments to the Local Government Act 2002 required local authorities to use a standard set of non financial performance measures when reporting the delivery of water supply, sewerage, stormwater drainage and roads and footpaths, to their communities. These mandatory measures apply from 30 July 2014 and have been incorporated into the performance frameworks of the relevant activity management plans for 2014/15 and will be monitored for that year. These will be formally reported in the 2014/15 Annual Report. Details of these measures are included on page 20.
Better Local Government Reform In March 2012 the Government announced an eight point reform programme for local government. This was described as Government’s broader programme for building a more productive, competitive economy and better public services, and has widely been referred to as “Better Local Government”. The first phase of the Better Local Government programme culminated in legislation that was passed in December 2012. This amended the Local Government Act 2002 to provide for: a new purpose of local government;
financial prudence requirements;
changes to council governance arrangements, including new mayoral powers, and a menu of assistance and intervention options for the Minister of Local Government; and
changes to the process for reorganising local government.
Most of these changes came into effect as soon as the Act was passed (whilst the new mayoral powers applied from the October 2013 elections.) Resultant changes from the 2012 Act amendments that affect Councils reporting include:
Benchmarks set to measure the financial prudence of Council’s plans and performance. Disclosures under these regulations are first required to be reported in Councils Annual Report for the year ended 30 June 2014. Forecast performance will be required when Council prepares its Ten Year Plan 2015/25. As would be expected, these benchmarks will be audited. There is no requirement that these be included in this Annual Plan, however Council has included these measures as a voluntary disclosure.
Additional disclosures required under amended Financial Reporting regulations affecting the Annual Report. This will enable the construction of a national balance sheet for core local authority assets (water, wastewater, storm water, flood protection and roading).
Further changes to the Local Government Act 2002 are contained in the Local Government Act 2002 Amendment Bill (No 3) which was introduced into Parliament on 4 November 2013. The Bill amends the Local Government Act 2002 to:
change the charging basis for development contributions;
change the process for objections to development contributions charges;
encourage more collaboration and shared services between local authorities;
allow for different methods of undertaking consultation;
changes to the significance policy and require an engagement policy;
Change the consultation requirements on long-term plans and annual plans;
remove the requirement for an annual plan where there are no changes proposed to the long-term plans;
introduce new requirements for infrastructure strategies and asset management planning;
enable elected members to use technology to participate in council meetings, rather than attending in person.
The Bill is presently at its committee stage.
Napier City Council Annual Plan 2014/2015
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Changes to Council’s Reporting continued Reporting changes from the 2013 Act Amendments The enactment of a Local Government Act 2002 Amendment Number 3 will modify future Ten Year Plans and Council’s public consultation processes. There will also potentially be changes required to Infrastructure Asset Management Plans. This Council has addressed much of the proposed changes contained in the Bill.
Changes to Accounting Standards For a number of years, New Zealand financial reporting operated under a common set of financial standards which applied to public and private sector entities (NZIFRS). Changes to the Financial Reporting Act saw the formation of the External Reporting Board (XRB) which has been tasked with preparing multi standards and a multi -tiered framework of accounting standards, this includes standars specifically for public benefit entities. As a consequence Council will from its 2014/15 financial year, prepare its financial reports based on the new Public Benefit Entity standards (which are based on International Public Sector Accounting Standards). These standards apply to this Annual Plan as well as the 2015/25 Ten Year Plan and the 2014/15 Annual Report. Most obvious are changes of description eg income is now referred to as revenue. Council believes that other than changes in description, there will be minimal impact on Councils financial statements as a result of this change.
Financial Reporting – Prudence Benchmarks Regulations introduced from May 2014 require Council to disclose additional information regarding its revenue streams and core assets as well as benchmark its financial performance against benchmarks set out in legislation. These benchmarks cover - rates affordability, debt affordability, balanced budget (income equals expenditure), essential services (infrastructure renewals vs depreciaton) and debt service benchmarks Disclosure of prudence benchmarks in Council’s Annual Report will be on the basis of the year being reported and comparatives of the four preceeding years. Whilst the benchmark information is not required in the 2014/15 Annual Plan, Council has included this information as a voluntarily disclosure for the 2014/15 year only.
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Napier City Council Annual Plan 2014/2015
Financial Prudence Benchmarks Regulations were introduced in May 2014 requiring Council to disclose its performance in relation to 5 specific benchmarks. This information is required for Council’s Annual Report 2014 and upon its review of the TYP 2015/25, but Council has included this information as a voluntary disclosure in the Annual Plan. Council’s planned performance in this Annual Plan against these specified benchmarks is shown below.
Benchmarks
Target
Met (Y/N)
Rates revenue equals or is less than quantified limits
Y
Planned rate increases are equal to or less than planned limits
Y
Planned borrowing is within quantified limits
Y
Target ‐ 100% ‐ Revenue exceeds Expenditure
Y
127%
Target ‐ 100% Capital expenditure exceeds Depreciation
Y
Council has no external debt
Target ‐ borrowing costs are less than 10% of revenue (less Development and Financial contributions/vested assets/revaluations)
Y
Planned
Rates Affordability Benchmark Forecast 2014/15 TYP $48,846
$ 47,080
Forecast 2014/15 TYP 3.3% 1
1.8%
Debt Affordability Benchmark 2 Limit 16% of rates revenue applied to service total debt Net Debt as a % of Total Income
Zero
Net rate funded Debt per Capita
Zero
Balanced Budget Benchmark Revenue (less Development and Financial contributions/vested assets/revaluations)
$ 87,122
Expenditure
$ 82,712 $ 4,410
Essential Services Benchmark % of Capital Expenditure on network services/Depreciation on network services Debt Servicing Benchmark
Borrowing costs as a % of specified revenue
1. Forecast 2014/15 TYP based on inflation of 2.4%. Actual inflation for the poan 0.7%. 2. Council's external debt is forecast to be $4k as at 30 June 2015 . Due to the low value it has been ignored for the purposes of these benchmarks.
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19
Mandatory Non-Financial Performance Measures The following Mandatory Non Financial Performance Measures have been gazetted under S261B of the Local Government Act 2002 and will be reported in the Annual Report for the year ended 30 June 2015.
Roads and Footpaths 1
Road Safety
The change from the previous financial year in the number of fatalities and serious injury crashes on the local road network, expressed as a number.
2
Road Condition
The average quality of ride on the sealed road network, as measured by the Smooth Travel Exposure Index.
3
Road Maintenance
The percentage of sealed road network resurfaced annually.
4 Footpaths The % of footpaths within a Territorial Authority District that fall within the level of service or service standard for the condition of footpaths that is set out in the territorial authorities relevant document (such as its annual plan, activity managemment plan, asset management plan, annual works program or Ten Year Plan).
5
Response to Service Requests
The percentage of customer service requests relating to roads and footpaths to which the territorial authority responds within the time frame specified in the Ten Year Plan.
Stormwater Drainage 1
2
System Adequacy a)
The number of flooding events that occur in a territorial authority district.
b)
For each flooding event, the number of habitable floors affected. (Expressed per 1000 properties connected to the territorial authority’s stormwater system).
Discharge Compliance
Compliance with the territorial authority’s resource consents for discharge from its stormwater system, measured by the number of, a)
abatement notices
b)
infringement notices
c)
enforcement orders; and
d) convictions received by the territorial authority in relation to those resource consents.
3
Fault Response Times
The median response time to attend a flooding event, measured from the time that the territorial authority receives notification to the time that service personnel reach the site.
4
Customer Satisfaction
The number of complaints received by a territorial authority about the performance of its stormwater system, expressed per 1000 properties connected to the territorial authority’s stormwater system.
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Napier City Council Annual Plan 2014/2015
Mandatory Non-Financial Performance Measures continued Sewerage and the Treatment and disposal of Sewage 1
System Adequacy
The number of dry weather sewerage overflows from the territorial authority’s sewerage system, expressed per 1000 sewerage connections to that sewerage system.
2
Discharge Compliance
Compliance with the territorial authority’s resource consents for discharge from its sewage system, measured by the number of, a)
abatement notices
b)
infringement notices
c)
enforcement orders; and
d) convictions received by the territorial authority in relation to those resource consents.
3
Fault Response Times
Where the territorial authority attends to sewerage overflows resulting from a blockage or other fault in the territorial authority’s sewerage system, the following median response times measured ;
4
a)
attendance time ; from the time that the teritorial authority receives notification to the time that service personnel reach the site ; and
b)
resolution time ; from the time that the territorial authority receives notification to the time that the service personnel confirm resolution of the blockage or other fault.
Customer Satisfaction
The total number of complaints received by the territorial authority about any of the following ; a)
sewerage odour
b)
sewerage system faults
c)
sewerage system blockages; and
d)
the territorial authority’s response to issues with its sewerage system,
expressed per 1000 connections to the territorial authorities sewerage system.
Water Supply 1
Safety of drinking water
The extent to which the local authority’s drinking water supply complies with ;
2
a)
part 4 of the drinking water standards (bacteria compliance criteria), and
b)
part 5 of the drnking water standards (protozoal compliance criteria)
Maintenance of the reticulation network
The percentage of real water loss from the local authority’s networked reticulation system (including a description of the methodology used to calculate this).
3
Fault Response Times
Where the local authority attends a call-out in response to a fault or unplanned interruption to its networked reticulation system, the following median response times measured: a)
Attendance for urgent call-outs: from the time that the local authority receives notification to the time that service personnel reach the site, and
b)
resolution of urgent call-outs: from the time that the local authoirity receives notification to the time that
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21
Mandatory Non-Financial Performance Measures continued service personnel confirm resolution of the fault or interruption
4
c)
attendance for non-urgent call-outs: from the time that the local authoirity receives notification to the time that service personnel reach the site, and
d)
resolution of non-urgent call-outs: from the time that the local authoirity receives notification to the time that service personnel confirm resolution of the fault or interruption.
Customer Satisfaction
The total number of complaints received by the local authority about any of the following ; a)
drinking water clarity
b)
drinking water taste
c)
drinking water odour
d)
drinking water pressure or flow
e)
continuity of supply; and
f)
the local authority’s response to any of these issues
expressed per 1000 connections to the local authority’s networked reticulation system.
5
Demand Management
The average consumption of drinking water per day per resident within the territorial local authority district.
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Napier City Council Annual Plan 2014/2015
Financial Information
Statement of Accounting Policies The principle accounting policies adopted in the preparation of the 2014/15 Annual Plan are set out below. The financial statements comprise the financial statements for Napier City Council (the Council) as an individual entity. The main purpose of the Annual Plan is to –
Contain the proposed annual budget and funding impact statement for the year ended 30 June 2015
Identify any variation from the financial statements and funding impact statement included in year three of Council’s Ten Year Plan 2012/22
Support the Ten Year Plan in providing integrated decision making and co-ordination of the resources of Council
Contribute to the accountability of Council to its community
Extend opportunities for participation by the public in decision making processes relating to the costs and funding of activities to be undertaken by Council.
1.1.
Reporting Entity
Napier City Council (the Council) is a New Zealand territorial local authority and is governed by the Local Government Act 2002 The Council holds a 26% share of Hawke’s Bay Airport Limited, which is equity accounted. Council does not hold any investment in any Council Controlled Organisation. The primary objective of the Council is to provide goods and services for the community or social benefit rather than making a financial return. Accordingly, the Council has designated itself as a public benefit entity for the purposes of financial reporting. The Annual Plan was authorised for issue by Council on 18 June 2014
1.2.
Basis of Preparation
Statement of Compliance The prospective financial statements of the Council have been prepared in accordance with the requirements of the Local Government Act 2002: Part 6, Section 98 and Part 3 of Schedule 10, which include the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP). The prospective financial statements have been prepared to comply with Public Benefit Entity standards (PBE Standards) for a Tier 1 Entity. Council is adopting PBE standards for the first time. The Ten Year Plan and Annual Plan 2013/14 were prepared under previous PBE NZ IFRS Accounting Standards. There is minimal impact to Council’s financial statements as a result of this. The financial statements use forecast opening balances for the period ending 30 June 2014 and estimates have been restated accordingly if required. The information in the prospective financial statements is uncertain and the preparation requires the exercise of judgement. Actual financial results achieved for the period covered are likely to vary from the information presented, and the variations may be significant. Events and circumstances may not occur as expected and predicted, or Napier City Council may subsequently take actions that differ from the proposed courses of action on which the prospective financial statements are based. Council, which is authorised to do so, and believes that the assumptions underlying these propective financial statements are appropriate, has approved the Annual Plan for distribution.
Measurement Base These financial statements have been prepared on a historical cost basis, except where modified by the revaluation of certain assets and liabilities as specifically stated in these accounting policies.
Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). The functional currency of the Council and its associates is New Zealand dollars.
1.3.
Changes in Accounting Policies
Other than for transition to the new Public Benefit Entity Accounting Standards there have been no changes to accounting policies.
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Napier City Council Annual Plan 2014/2015
Statement of Accounting Policies continued 1.4.
Changes in Accounting Standard Framework
A new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB) was approved by the Minister of Commerce. The new framework consists of a two-sector, four tier structure with different accounting standards applying to each tier. Under this Accounting Standards Framework, Napier City Council is classified as a Tier 1 reportng entity required to apply full public sector Public Benefit Entity Accounting Standars (PBE) developed by the XRB based on current International Public Sector Accounting Standards (PBE IPSAS), certain current International Accounting Standards (PBE IAS) and certain Financial Reporting Standards (PBE FRS). The effective date for the new standards for public sector entities is for reporting periods beginning on, or after 1st July 2014. This means Council is required to transition to the new standards in preparing its 30 June 2015 financial statements, including this Plan. To date there has been minimal impact to Council’s financial statements as a result of this. Council is in the process of transitioning to the revised standards and some further changes resulting from the transition may be identified. These are reflected in the Annual Plan 2014/15.
1.5.
Basis of Consolidation
Consolidated financial statements are prepared adding together like items of assets, liabilities, equity, income, and expenses on a line-by-line basis. All significant intra-group balances, transactions, income, and expenses are eliminated on consolidation.
Investment in Associates The Council’s associate investment is accounted for in the financial statements using the equity method. An associate is an entity over which the Council has significant influence and that is neither a subsidiary nor an interest in a joint venture. The investment in an associate is initially recognised at cost and the carrying amount in the financial statements is increased or decreased to recognise the Council’s share of the surplus or deficit of the associate after the date of acquisition. Distributions received from an associate reduce the carrying amount of the investment. If the share of deficits of an associate equals or exceeds its interest in the associate, the Council discontinues recognising its share of further deficits. After the Council’s interest is reduced to zero, additional deficits are provided for, and a liability is recognised, only to the extent that the Council has incurred legal or constructive obligations or made payments on behalf of the associate. If the associate subsequently reports surpluses, the Council will resume recognising its share of those surpluses only after its share of the surpluses equals the share of deficits not recognised. Where the Council transacts with an associate, surplus or deficits are eliminated to the extent of the group’s interest in the associate. Dilution gains or losses arising from investments in associates are recognised in the surplus or deficit. Entities are required to disclose all accounting policies that are relevant to an understanding of the financial statements. The investment in the associate is carried at cost in the Council’s financial statements.
Subsidiaries As at 30th June 2014 the Council has no subsidiaries.
1.6.
Joint Ventures
Jointly Controlled Assets The proportionate interests in the assets, liabilities, income and expenses of the jointly controlled assets have been incorporated into the financial statements under the appropriate headings, together with any liabilities incurred.
1.7.
Foreign Currency Translation
Functional and Presentation Currency Items included in the financial statements of each of the Council’s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statements are presented in New Zealand dollars, which is the Council’s functional and presentation currency. All values are rounded to the nearest thousand dollars ($000).
Transactions and Balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income, except when deferred in equity as qualifying cash flow hedges.
Napier City Council Annual Plan 2014/2015
25
Statement of Accounting Policies continued 1.8.
Revenue Recognition
Revenue is measured at the fair value of considerantion received or receivable.
Exchange Transactions Exchange transactions are transactions where Council receives assets (primarily cash) or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services, or use of assets) to another entity in exchange.
Non Exchange Transactions Non exchange transactions are transactions that are not exchange transactions. In a non exchange transaction the Council either receives value from or gives value to another entity without directly giving or receiving approximately equal value in exchange. Specific accounting policies for major categories of revenue are outlined below Rates Rates are recognised when levied. Penalties and discounts relating to rates are included where applicable. Rates revenue is classified as non exchange except for metered water rates which are classified as exchange revenue. The following categories (except where noted) are generally classified as transfers of non exchange revenue. Residential Developments Sales of sections in residential developments are recognised when contracts for sale are unconditional. Traffic and Parking Infringements Traffic and parking infringements are recognised when tickets are issued. Licences and Permits Revenue derived from licences and permits are recognised on application. Development and Financial Contributions Development contributions are recognised when the work is carried out and are no longer refundable. Sales of Goods (Retail) The sale of goods is classified as exchange revenue. Sales of goods are recognised when a product is sold to the customer. Retail sales are usually in cash or by credit card. The recorded revenue is the gross amount of sale, including credit card fees payable for the transaction. Such fees are included in distribution costs. Sales of Services Sales of services are recognised in the accounting period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided. Rental Revenue Rental revenue is recognised in the period that it relates to. Interest Income Interest revenue is exchange revenue and is recognised on a time proportion basis using the effective interest method. When a receivable is impaired, the Council reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Dividend Income Dividends are classified as exchange revenue and are recognised when the right to receive payment is established. Donated, Subsidised or Vested Assets Where a physical asset is acquired for nil or nominal consideration the fair value of the asset received is recognised as revenue. Grants and Subsidies Grants and subsidies received in relation to the provision of services are recognised on a percentage of completion basis. Other
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Napier City Council Annual Plan 2014/2015
Statement of Accounting Policies continued grants and subsidies are recognised when receivable. The Council receives the majority of grants and subsidies income from New Zealand Transport Agency (NZTA) which subsidises part of the Council’s costs in maintaining the local road infrastructure.
1.9.
Income Tax
The Council is exempt from income tax except on interest or other income received from certain trading activities. The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
1.10.
Goods and Services (GST)
The Statement of Comprehensive Revenue has been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST, with the exception of receivables and payables, which include GST invoiced. Commitments and contingencies are disclosed exclusive of GST.
1.11. Leases The Council is the Lessee Leases of property, plant and equipment where the Council has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in other long term payables. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The interest element of the finance cost is charged to the Statement of Comprehensive Income over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the asset’s useful life and the lease term. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the Statement of Comprehensive Income on a straight line basis over the period of the lease.
The Council is the Lessor Assets leased to third parties under operating leases are included in property, plant and equipment in the Statement of Financial Position. They are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and equipment. Rental revenue (net of any incentives given to lessees) is recognised on a straight line basis over the lease term.
1.12.
Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which
Napier City Council Annual Plan 2014/2015
27
Statement of Accounting Policies continued are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.
1.13.
Trade Receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Trade receivables are due for settlement no more than 150 days from the date of recognition for land development and resale debtors, and no more than 30 days for other debtors. Collectability of trade receivables is reviewed on an on going basis. Debts which are known to be uncollectible are written off. A provision for impairment of receivables is established when there is objective evidence that the Council 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 asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the Statement of Comprehensive Revenue and Expenditure.
1.14. Inventories Raw Materials and Stores, Work In Progress and Finished Goods Raw materials and stores, and finished goods are stated at the lower of cost and net realisable value costs are assigned to individual items of inventory on the basis of weighted average costs. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
Inventory Held for Distribution Inventories held for distribution are measured either at cost or at cost adjusted where applicable for any loss of service potential. These assets are held for distribution at no charge in the ordinary course of the Council’s operations.
1.15.
Non-current Assets Held For Sale
Non-current assets are classified as held for sale and stated at the lower of their carrying amount and fair value less costs to sell if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. An impairment loss is recognised for any initial or subsequent write down of the asset to fair value less costs to sell in the Council’s operating costs. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset, but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset is recognised at the date of derecognition. Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognised. Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Statement of Financial Position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Statement of Financial Position.
1.16.
Investments and Other Financial Assets
Financial Assets at Fair Value through surplus or deficit This category has two sub categories: financial assets held for trading, and those designated at fair value through the surplus or deficit on initial recognition. A financial asset is classified as held for trading if acquired principally for the purpose of selling in the short term or if so designated by management. The policy of management is to designate a financial asset if there exists the possibility it will be sold in the short term and the asset is subject to frequent changes in fair value. 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 Statement of Financial Position date.
Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
28
Napier City Council Annual Plan 2014/2015
Statement of Accounting Policies continued active market. They arise when the Council provides money, goods or services directly to a debtor with no intention of selling the receivable. They are included in current assets. Those with maturities greater than 12 months after the balance date are classified as non-current assets.
Held to Maturity Investments Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Council’s management has the positive intention and ability to hold to maturity. They are included in current assets, except for maturities greater than 12 months after balance date, which are included in non-current assets. Financial Assets at Fair Value through Comprehensive Revenue and Expenditure Available for sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category at initial recognition, or not classified in any of the other categories above. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the Statement of Financial Position date. Purchases and sales of investments are recognised on trade date, the date on which the Council commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value in the surplus or deficit. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Council has transferred substantially all the risks and rewards of ownership.
Measurement of Investments and Other Financial Assets Available for sale financial assets and financial assets at fair value through surplus or deficit are subsequently carried at fair value. Loans and receivables and held to maturity investments are carried at amortised cost using the effective interest method. Realised and unrealised gains and losses arising from changes in the fair value of the financial assets at fair value through surplus or deficit category are included in the i Statement of Comprehensive Revenue and Expenditure in the period in which they arise. Unrealised gains and losses arising from changes in the fair value of non-monetary securities classified as fair value through comprehensive revenue are recognised in comprehensive revenue in the fair value investments revaluation reserve. When securities classified as available for sale are sold or impaired, the accumulated fair value adjustments are included in the Statement of Comprehensive Revenue and Expenditure as gains and losses from investment securities.
Fair Value Changes The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted securities), the Council establishes fair value by using valuation techniques. These include reference to the fair values of recent arm’s length transactions, involving the same instruments or other instruments that are substantially the same, discounted cash flow analysis, and option pricing models refined to reflect the issuer’s specific circumstances.
Impairment of Financial Assets The Council assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available for sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for available for sale financial assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the surplus or deficit is removed from equity and recognised in the Statement of Comprehensive Revenue and Expenditure. Impairment losses recognised in the Statement of Comprehensive Revenue and Expenditure on equity instruments are not reversed through the Statement of Comprehensive Revenue and Expenditure.
1.17. Derivatives Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each balance date. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Council designates certain derivatives as either; (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or (2) hedges of highly probable forecast transactions (cash flow hedges). The Council documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. The Council also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.
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Statement of Accounting Policies continued Fair Value Hedge Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the surplus or deficit, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash Flow Hedge The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in equity in the hedging reserve. The gain or loss relating to the ineffective portion is recognised immediately in the Statement of Comprehensive Revenue and Expenditure . Amounts accumulated in equity are recycled in the Statement of Comprehensive Revenue and Expenditure in the periods when the hedged item will affect surplus or deficit (for instance when the forecast sale that is hedged takes place). However, when the forecast transaction that is hedged results in the recognition of a non-financial asset (for example, plant) or a non-financial liability, the gains and losses previously deferred in equity are transferred from equity and included in the measurement of the initial cost or carrying amount of the asset or liability When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the Statement of Comprehensive Revenue and Expenditure. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the Statement of Comprehensive Revenue and Expenditure.
Derivatives that do not qualify for Hedge Accounting Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognised immediately in the Statement of Comprehensive Revenue and Expenditure.
1.18.
Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of forward exchange contracts is determined using forward exchange market rates at the Statement of Financial Position date. The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Council for similar financial instruments.
1.19.
Property, Plant and Equipment
Items of property, plant and equipment are initially recognised at cost, which includes purchase price plus directly attributable costs of bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Where a physical asset is acquired for nil or nominal consideration the fair value of the asset received is recognised as revenue. Assets which are revalued are shown at fair value (which is based on periodic valuations by external independent valuers that are performed with sufficient regularity to ensure that the carrying value does not differ materially from fair value) less subsequent depreciation. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Roading infrastructure assets are valued at depreciated replacement cost and revalued annually. Investment properties are revalued annually and shown at fair value. Land and Buildings are revalued three yearly are shown at fair value. Library Books are revalued annually and shown at fair value. All other property, plant and equipment is stated at historical cost less depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Council and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Comprehensive Revenue and Expenditure during the financial period in which they are incurred. Increases in the carrying amounts arising on revalued assets are credited to a revaluation reserve in public equity. To the
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Napier City Council Annual Plan 2014/2015
Statement of Accounting Policies continued extent that the increase reverses a decrease previously recognised in the surplus or deficit, the increase is first recognised in the surplus or deficit. Decreases that reverse previous increases of the same asset are first charged against revaluation reserve directly in equity to the extent of the remaining reserve attributable to the asset; all other decreases are charged to the Statement of Comprehensive Revenue and Expenditure. Depreciation of property, plant and equipment other than land is calculated on a straight line basis at rates that will write off the cost or valuation, less estimated residual value, over their expected useful economic lives. The following rates have been applied: Buildings and structural improvements Fixed plant and equipment Mobile plant and equipment Motor vehicles Furniture and fittings Office equipment Library bookstock
Depreciation % 2 to 10% 5 to 20% 5 to 50% 10 to 33.33% 4 to 20% 8 to 66.67% 7 to 25%
Depreciation of infrastructural and restricted assets is calculated on a straight line basis at rates that will write off their cost or valuation over their expected useful economic lives. The expected lives, in years, of major classes of infrastructural and restricted assets are as follows: Useful Life (Years) Roading* Base course Surfacings Concrete pavers Footpaths and pathways/walkways Drainage Bridges and structures Road lighting Traffic services and safety Water Reticulation Reservoirs Pump stations Stormwater Reticulation Pump stations Sewerage Reticulation Pump stations Milliscreen Outfall Others Grandstands, community and sports halls Sportsgrounds, parks and reserves improvements Buildings on reserves Pools Inner harbour
70 12 70 15 - 80 14 - 80 20 - 100 4 - 50 10 -25 56 - 107 100 15 - 80 80 - 100 15 - 80 80 - 100 15 - 80 10 - 80 60 50 10 - 50 10 - 50 10 - 50 20 - 50
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each Statement of Financial Position date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 1.15). Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are recognised in the surplus or deficit. When revalued assets are sold, it is Council’s policy to transfer the amounts included in other reserves in respect of those assets to retained earnings.
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Statement of Accounting Policies continued Note(*): The expected lives of Roading Assets is currently under review by specialist professional staff of an independent organisation. This may result in changes to the depreciation rates applied to these assets.
1.20.
Investment Property
Investment property is held for long term rental yields and capital appreciation and is not occupied by the Council or held to meet service delivery objectives. Properties leased to third parties under operating leases will generally be classified as investment property unless:
the property is held to meet service delivery objectives, rather than to earn rentals or for capital appreciation;
the occupants provide services that are integral to the operation of the owner’s business and/or these services could not be provided efficiently and effectively by the lessee in another location;
the property is being held for future delivery of services;
the lessor uses services of the owner and those services are integral to the reasons for their occupancy of the property.
Investment property is carried at fair value, representing open market value determined annually by external valuers. Changes in fair values are recognised in the surplus or deficit.
1.21.
Intangible Assets
Trademarks and Licences Trademarks and licences have a finite useful life and are carried at cost less accumulated amortisation and impairment losses. Amortisation is calculated using the straight line method to allocate the cost of trademarks and licences over their estimated useful lives, which vary from 3 to 5 years.
Computer Software Acquired computer software and software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised over their estimates useful lives of 3 to 5 years. Cost associated with developing or maintaining computer software are recognised as an expense as incurred. Costs that are directly associated with the production of identifiable and unique software products controlled by the Council, and that will generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Direct costs include the software development employee costs and an appropriate portion of relevant overheads. Computer software development costs recognised as assets are amortised over their estimated useful lives not exceeding 3 years.
1.22.
Impairment of Assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation or depreciation 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. Where the future economic benefits of an 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, value in use is determined as the depreciated replacement cost of the asset. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).
1.23.
Trade and Other Payables
These amounts are recorded at their face value and represent liabilities for goods and services provided to the Council prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
1.24. Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost . Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Comprehensive Revenue and Expenditure over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Council has an unconditional right to defer settlement of the liability for at least 12 months after the Statement of Financial Position date.
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Napier City Council Annual Plan 2014/2015
Statement of Accounting Policies continued 1.25.
Borrowing Costs
Borrowing costs are recognised as an expense in the period in which they are incurred.
1.26. Provisions Provisions are recognised when the Council has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating deficits . Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pretax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. An increase in the provision due to the passage of time is recognised as an interest expense.
1.27.
Grant Expenditure
Non-discretionary grants are those grants that are awarded if the grant application meets the specified criteria and are recognised as expenditure when an application that meets the specified criteria for the grant has been received. Discretionary grants are those grants where the Council has no obligation to award on receipt of the grant application and are recognised as expenditure when a successful applicant has been notified of the Council’s decision.
1.28.
Employee Benefits
Wages and Salaries, Annual Leave and Sick Leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for nonaccumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
Long Service Leave and Gratuities The liability for long service leave and gratuities is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Retirement Benefit Obligations Current and former employees of the Council are entitled to benefits on retirement, disability or death from the Council’s multi-employer benefit scheme. The scheme manager, National Provident Fund, have advised Council there is no consistent and reliable basis for allocating the obligation scheme assets and cost of the multi-employer defined benefit scheme to individual participating employers. As a result, the scheme is accounted for as a defined contribution plan and contributions are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset if a cash refund or a reduction in the future payments is available.
Bonus Plans The Council recognises a liability and an expense for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation.
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Statement of Accounting Policies continued 1.29.
Biological Assets
Livestock Livestock are measured at their fair value less estimated point-of-sale costs. The fair value of livestock is determined based on market prices of livestock of similar age, breed and genetic merit.
1.30.
Net Assets/Equity
Net Assets/Equity is the community’s interest in the Council and is measured as the difference between total assets and total liabilities. Net Assets or Equity is disaggregated and classified into a number of components. The components of net assets or equity are:
Retained Earnings
Restricted Reserves
Fair Value and Hedging Reserves
Asset Revaluation Reserves
Restricted and Council Created 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 the Council. Restricted reserves are those subject to specific conditions accepted as binding by the Council and which may not be revised by the Council 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 references to any third party or the Courts. Transfers to and from these reserves are at the discretion of the Council.
1.31.
Budget Figures
The budget figures are those approved by the Council and adopted as a part of the Council’s Ten Year Plan or as revised and approved by Council prior to the commencement of the year in the Annual Plan. The budget figures have been prepared in accordance with previous NZ GAAP, using accounting policies that are consistent with those adopted by the Council for the preparation of the financial statements. These prospective statements have been prepared to comply with new PBE standards but there is considered to be a minimal impact as a result of this.
1.32.
Cost Allocation
Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs, which cannot be identified in an economically feasible manner, with a significant activity. Direct costs are charged directly to significant activities. Indirect costs are charged to significant activities using appropriate cost drivers such as actual usage, staff numbers and floor area.
1.33.
Critical Accounting Estimates and Assumptions
In preparing these prospective financial statements the Council has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed as follows.
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Napier City Council Annual Plan 2014/2015
Statement of Accounting Policies continued Infrastructural Assets There are a number of assumptions and estimates used when performing depreciated replacement cost valuations over infrastructural assets. These include: The physical deterioration and condition of an asset, for example the Council could be carrying an asset at an amount that does not reflect its actual condition. This is particularly so for those assets which are underground such as stormwater, wastewater and water supply pipes. This risk is minimised by Council performing a combination of physical inspections and condition modelling assessments of underground assets;
estimating any obsolescence or surplus capacity of an asset; and
estimating the remaining useful lives over which the asset will be depreciated. These estimates can be impacted by the local conditions, for example weather patterns and traffic growth. If useful lives do not reflect the actual consumption of the benefits of the asset, then the Council could be over or under estimating the annual depreciation charge recognised as an expense in the Statement of Comprehensive Income. To minimise this risk, the Council’s infrastructural asset useful lives have been determined with reference to the NZ Infrastructural Asset Valuation and Depreciation Guidelines published by the National Asset Management Steering Group, and have been adjusted for local conditions based on past experience. Asset inspections and deterioration and condition modelling are also carried out regularly as part of the Council asset management planning activities, which gives the Council further assurance over its useful life estimates.
Experienced independent valuers perform the Council’s infrastructural asset revaluations except for above and below ground water, wastewater and stormwater assets where the independent valuer peer reviews Council’s valuations.
Critical Judgements in Applying Napier City Council’s Accounting Policies Management has exercised the following critical judgements in applying the Council’s accounting policies for the period ended 30 June 2015.
Classification of Property The Council owns a number of leasehold land and rental properties. The receipt of market-based rentals from these properties is incidental to the holding of these properties. In the case of residential leasehold properties, there are legal restrictions applying to how Council can manage these properties and in the case of rental properties, these are held as part of the Council’s social housing policy or to secure the ability to undertake long term city development projects. As these properties are held for service delivery objectives, they have been accounted for as property, plant and equipment.
1.34.
Prospective Financial Information
The financial information contained in this document is propective financial information in terms of accounting standard PBE FRS 42. The actual results achieved for any financial year, are also likely to vary from the information presented and may vary materially depending on the circumstances that arise during that period. These prospective financial statements were authorised for issue on 18th June 2014 by Napier City Council. The Council is responsible for the prospective financial statements presented, including the assumptions underlying these prospective financial statements and all other disclosures. The Annual Plan is prospective and as such contains no actual operating results.
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Significant Forecasting Assumptions Introduction Schedule 10 (section 17) of the Local Government Act 2002, No. 84, requires that Council identifies the significant forecasting assumptions and risks underlying the financial estimates. Where there is a high level of uncertainty Council is required to state the reason for that level of uncertainty and provide an estimate of the potential effects on the financial assumptions. Council has made a number of assumptions which apply organisation wide. These assumptions are outlined below. Assumptions that apply only to specific activities are outlined in the Activity Management Plans for the activities concerned. The broad basis upon which the financial summaries were prepared is as follows:
Capital costs – based on the Prospective Ten Year Capital Plan, with rates and loans funding determined in accordance with Council’s policy on Funding of Capital Expenditure in the Revenue and Financing Policy on page 37 to page 70 of Appendix A of the 2012 – 2022 Ten Year Plan. The costs for 2014/15 have been inflated as detailed in Corporate Assumption 1.
Personnel, operating and maintenance costs. The 2014/15 forecasts include forecast cost of existing services plus the cost of approved new services and/or increases in the level of existing services. The costs for 2014/15 are based either on actual costs and prices at 1 November 2013, or with the addition of CPI of 0.7%, PPI of 1.1%, or LCI of 2.1% as appropriate. The inflation rates used are based on Statistics New Zealand reported levels at June 2013.
Internal borrowings have been estimated on current borrowings and planned new internal borrowings, with calculations based on Corporate Assumption 17.
Specific Corporate Assumptions 1.
Inflation
Assumption Inflation has been assumed at 0.7% or CPI, at 1.1% or PPI where applicable and 1.5% for contract costs falling under NZS3910. These indices are those reported by New Zealand Statistics at 30 June 2013 and increases are added to operating and capital expenditure where applicable.
Risk Underlying Financial Estimates The inflation forecasts could be incorrect, affecting the validity of the plan costs. There is consensus that inflation rates will rise in the next two to five years. The timing of these increases are still unknown.
Level of Uncertainty Moderate.
2.
Capital Plan - Inflation Forecasts Future Years Capital
15/16
16/17
17/18
18/19
19/20
20/21
21/22
3.9
3.3
3.4
3.6
3.8
4.0
4.3
3. Contracts Assumption Apart from the general provision for inflation, as per Corporate Assumption 1, other significant variations to the terms or prices of contracts which will apply when contracts are renewed or retendered have been included in the estimates where these are known.
Risk Underlying Financial Estimates Contract terms and prices could differ, although the inclusion of inflation in the estimates will largely mitigate any unfavourable effects.
Level of Uncertainty Low.
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Napier City Council Annual Plan 2014/2015
Significant Forecasting Assumptions continued 4.
Population Growth
Assumption The following population growth projection figures are based on New Zealand Statistics subnational population projections at 30 June 2013 for the 2013 year. Population projections have been calculated using an average of the medium and high population projection data for Napier, as at March 2014. 30 June 2013
57,240 (2013 Census)
30 June 2014
57,720 (Projection)
30 June 2015
58,200 (Projection)
Risk Underlying Financial Estimates Actual population growth could differ.
Level of Uncertainty Moderate to High.
5.
Household Growth
Assumption The following household growth projection figures are based on the actual Napier City Council new households consents records. The projections have been calculated based on a slower than average uptake for years 2014 and 2015 to take into consideration the downturn in the property development market Total Households
Infill
Greenfield
Rural Residential
2013 (Actual)
Year to 30 June
24,869
40%
50%
10%
2014 (Estimate)
25,029
45%
49%
6%
2015 (Estimate)
25,189
50%
44%
6%
The accumulating growth in the rating base resulting from the increase in the number of rateable properties has been transferred to the Subdivision and Urban Growth Fund. This fund is used to meet the cost of servicing new loans internally raised for the purposes of this plan) to provide additional infrastructural assets required as a result of urban growth, and to meet any shortfall from financial contributions funding. From the excess to requirements accumulating in the Subdivision and Urban Growth Fund, transfers back to General Rates have been provided at $1.25M for 2014/15.
Risk Underlying Financial Estimates Actual physical growth could differ, although the financial implications of this are largely mitigated by the way Council funds and accounts for growth, and by altering the timing of projects in the Ten Year Capital Plan to coincide with actual trigger points or demand.
Level of Uncertainty Moderate to High.
Effects of High Level of Uncertainty Slower growth than that assumed could result in lower revenue from Development Levies/Financial Contributions and Consents. The financial implications of this can however be managed. Council carefully monitors growth and adjusts the timing of expenditure for growth related projects based on both revised market demand and revenue timing. Timing adjustments would be made in future annual plans.
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Significant Forecasting Assumptions continued 6.
Visitor Numbers
Assumption The 2013 actual quantity is from information provided by Statistics New Zealand. The estimated visitor numbers the 2013/14 and 2014/15 years have been used for the purposes of the plan. These are based on forecasts received from Council’s economic adviser. Year ended 30 June
2013 (Actual)
500,206
2014 (Estimate)
525,000
2015 (Estimate)
540,000
Risk Underlying Financial Estimates Actual visitor numbers could differ, affecting the financial returns in tourism activities
Level of Uncertainty Moderate.
7.
Levels of Service
Assumption No significant changes in levels of service are assumed, except where there are changes specifically outlined in particular Activity Management Plans or are able to be achieved without increased cost.
Risk Underlying Financial Estimates Any significant changes to the level of future services would need to be identified in a future Ten Year Plan or as an amendment to the current Annual Plan, and the cost implications outlined.
Level of Uncertainty Low.
8. Technology Assumption While it is recognised that advances in technology over the forecast period could change the way activity is carried out, the forecasts are based on known technology as currently applied within the Council.
Risk Underlying Financial Estimates New technology could change the way activity is carried out, affecting both financial estimates and levels of service.
Level of Uncertainty High.
Effects of High Level of Uncertainty The impact of changing technology is unknown but is reviewed on an on-going basis and would be taken into account in the Ten Year Plan. The effects are also considered in Annual Plans and have been provided for where necessary.
9.
Useful Life of Significant Assets
Assumption The assumed useful lives are outlined in the Statement of Accounting Policies.
Risk Underlying Financial Estimates Any significant change in useful life could affect the validity of the estimates, but the financial implications would not be significant
Level of Uncertainty Low.
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Napier City Council Annual Plan 2014/2015
Significant Forecasting Assumptions continued 10.
Sources of Funds for Future Replacement of Significant Assets
Assumption It is assumed that significant infrastructural assets will be subject to continual renewal, and funded in the Ten Year Capital Plan at the levels reflected in the various Asset Management Plans for infrastructural assets. The source of funding any replacement of other significant assets is determined and disclosed in the Ten Year Capital Plan. Refer also to the Funding of Capital Expenditure section of the Revenue and Financing Policy and the Financial Strategy.
Risk Underlying Financial Estimates A future Council could change the basis and level of funding, but this should only be done through a future Ten Year Plan or an amendment to the Ten Year Plan, with the implications clearly outlined.
Level of Uncertainty Low.
11.
Asset Sales
Assumption It is assumed there will be no asset sales apart from: Freeholding of residential leasehold properties at the request of lessees – has been estimated at two for the year. All proceeds from asset sales will be applied in accordance with Council’s policy on the use of proceeds from asset sales.
Risk Underlying Financial Estimates 1
A higher or lower level of freeholding of leasehold properties.
2
A future Council could change the use of the proceeds from future asset sales, but this should only be done through a future Ten Year Plan or an amendment to the Ten Year Plan.
Level of Uncertainty 1 High. 2 Low.
Effects of High Level of Uncertainty No significant effect as the use of the proceeds has not been ascertained.
12.
Asset Revaluations
Assumption Comprehensive asset revaluations are undertaken every three years. The financial statements are based on the cyclical revaluation at 30 June 2014 having been completed. Roading, Library and Investment property are revalued annually. A general revaluation is planned for the 2013/14 year. Revaluation indices used for the plan are based on the BERL revised inflation factors. The three yearly revaluation adjustment in the Ten Year Plan was reflected in 2014/15 instead of 2013/14 as per the cycle. These are now being correctly shown in the comparative Annual Plan amounts for the Ten Year Plan.
Risk Underlying Financial Estimates The forecast valuation of assets could be incorrect, affecting the validity of the estimates
Level of Uncertainty High
Effects of High Level of Uncertainty Variations in asset values following a general revaluation will affect the 2013/14 value of assets and the comprehensive income statement total comprehensive income. However there would be no impact to the level of rates required to fund operations in the plan year. Impacts would be in the year following the plan with higher levels of depreciation. Note: there would be no impact on succeeding years capital plans as the same inflation factors applied to revaluations are applied to the capital plan.
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Significant Forecasting Assumptions continued 13.
Completion of Capital Projects
Assumption Capital projects are assumed to be completed in the year budgeted, except for the following major projects, where expenditure budgeted in previous years will be incurred during 2014/15. Park Island Bond Field Extension Whakarire Avenue Breakwater Westshore Beach Reprofiling
Risk Underlying Financial Estimates Actual experience shows some projects are not completed in the year budgeted.
Level of Uncertainty High. Expected project timing is based on the best estimate available.
Effects of High Level of Uncertainty No significant effect as unutilised budgets are carried forward. Where projects are funded from loans, budgeted interest costs are allocated to the project to offset price changes due to inflation.
14.
New Zealand Transport Agency (NZTA)
Assumption The NZTA are currently consulting with Councils and other parties on changes to their existing funding models. It is assumed that NZTA requirements, specifications and subsidy levels will not change before 30 June 2015.
Risk Underlying Financial Estimates A change in the requirements could affect the validity of the estimates by way of funding available for subsidised work and the level of service delivered. The extent of any change would influence the significance on the estimates.
Level of Uncertainty High.
Effects of High Level of Uncertainty A 1% reduction in subsidy received from NZTA would reduce funding for maintenance and renewal work by $65,000. In the short to medium term it would be necessary to reprioritise work, from renewal to maintenance, to ensure there is a minimal perceivable effect on the condition of the roads. Over the longer term a backlog of renewal work would be created that would need to be caught up on in the future.
15.
Vested Assets
Assumption Assets vested in the Council following subdivision have been included in the forecasts at an average annual expected value over the period of the plan. Calculation of average annual expected value is based on the Napier Urban Growth Strategy and timing of known or proposed developments over the next 2 years.
Risk Underlying Financial Estimates Subdivisions may not proceed, or costs/timing will differ. Annual value of vested assets may fluctuate significantly between plan years and in total. Impact would be to both Statement of Income and Statement of Financial Position.
Level of Uncertainty Moderate.
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Napier City Council Annual Plan 2014/2015
Significant Forecasting Assumptions continued 16. Depreciation Assumption Depreciation rates applying to existing assets are outlined in the Statement of Accounting Policies. Depreciation on new major infrastructural assets is calculated on the expected asset life and commencing from expected time of completion of the project. The depreciation for other items is based on actual expected depreciation rates with a half year applied in the year of purchase. Depreciation is calculated on book values projected immediately preceding 30 June, plus new capital.
Risk Underlying Financial Estimates The inflation forecasts could be incorrect, affecting the validity of the value of assets. Capital projects could take longer to complete than budgeted. To some extent these factors mitigate against each other.
Level of Uncertainty Moderate.
17.
Internal Borrowing
Assumption Actual interest rates for existing loans for 2014/15 Loan interest at 4.60% on new loans expected to be uplifted in 2014/15 Actual principal repayments apply for 2014/15. For new loans, principal repayments are calculated on a table loan basis. Actual interest on non-rate-funded loans is allocated directly to the activity to which the loan applies. In addition, interest on some ratefunded loans is allocated similarly, namely:
Interest on Rental Housing loans allocated to Retirement and Rental Housing Activity.
Interest on National Aquarium of NZ loans allocated to National Aquarium of NZ Activity.
Interest on Museum building loan allocated to MTG Hawke’s Bay Activity.
Interest on Kennedy Park Cabins upgrade allocated to Kennedy Park Resort Activity.
All other rate-funded loan interest is allocated as a “capital charge” to activities based on book value of assets. To establish book value the following assumptions apply:
Support units have been excluded.
Assets funded from finance leases have been excluded.
Excludes activities funded from non-rating sources e.g. Parking, Transfer Station, Lagoon Farm, Plant, Vehicle and Settlement Support.
Book values for Omarunui Landfill, Hawke’s Bay Museum and Art Gallery, Rental Housing, National Aquarium of NZ, Kennedy Park Cabins and industries’ share of the Advanced Sewage Treatment Plant have been excluded.
Risk Underlying Financial Estimates 1.
Interest rates on borrowed funds are largely influenced by factors external to New Zealand’s environment. A significant change to interest rates would affect the validity of the estimates.
2.
The financial statements assume reserves and special funds revenues received are sufficient to provide internal funding for loan funded capital items. Significant reductions in the cash flow generated by the Parklands Residential Development would alter the ability to fund these items internally and increase Council’s external loans. A change from internal to external debt funding would have no rating impact as the interest rate used to calculate interest payable is not varied according to the source of loans.
Level of Uncertainty 1. N/A 2. Moderate
Effects of High Level of Uncertainty 1.
Changes to interest rates will not impact loan charges in the 2013/14 year due to fixed interest rates for all loans
2. N/A
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Significant Forecasting Assumptions continued 18.
Forecast Return on Investments
Assumption Interest rate on funds invested assumed to be between 3% and 4.5% pa
Risk Underlying Financial Estimates Changes in market interest rates and average levels of cash on deposit or invested may differ significantly from plan.
Level of Uncertainty Moderate.
19.
Resource Consents
Assumption Except as may be outlined in particular Activity Management Plans, it is assumed the conditions of Resource Consents held by Council will not be altered significantly.
Risk Underlying Financial Estimates Conditions of Resource Consents may be altered significantly without Council receiving sufficient warning.
Level of Uncertainty Low.
20.
Council Policy
Assumption No significant changes in Council policy are assumed.
Risk Underlying Financial Estimates Council could change its policy on any matter in a way that would significantly affect the estimates. Any such change would be identified in a future Ten Year Plan or as an amendment to the current Ten Year Plan and the financial implications outlined.
21.
Local Government Reorganisation
Assumption Council is currently subject to a reorganisation proposal being considered by the Local Government Commission, which in its draft proposal, has recommended a single Unitary Authority for Hawke’s Bay. The draft proposal does not quantify any potential costs or savings and proposes a unified rating system by 2018. There is therefore little expected impact on this Annual Plan.
Risk Underlying Financial Estimates It is not considered likely that proposed changes to local government structures in Hawke’s Bay will be implemented before the end of the financial year covered by this Annual Plan.
Level of Uncertainty Low for the Plan period.
22.
External Factors
Assumption External factors and changes arising from central governments “Better Local Government “ initiatives and consequent amendments to the Local Government Act, are not expected to alter the nature of Council’s services.
Risk Underlying Financial Estimates Unexpected changes, particularly unforeseen legislative changes, could arise that affect the services delivered by Council.
Level of Uncertainty Moderate for the Plan period.
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Napier City Council Annual Plan 2014/2015
Significant Forecasting Assumptions continued 23.
Natural Disasters
Assumption It is assumed there will be no level of major natural disaster or similar event that cannot be funded out of budgetary provisions.
Risk Underlying Financial Estimates Natural Adverse Event(s) could occur at a level where the affects could not be funded within budget. The financial effects are partly mitigated by special risk insurance related to underground infrastructural assets.
Level of Uncertainty Low.
24.
Building Industry
Assumption No significant impact on costs has been observed arising from the demands for resources to rebuild Christchurch following the earthquakes of September 2010 and February 2011, and a building industry upturn has resulted from the improvement in the economy.
Risk Underlying Financial Estimates Legislative and economic change can have a significant impact on the building industry. Recent examples are the changes to loan deposit requirements and increases in the Official Cash Rate on borrowing costs.
Level of Uncertainty High.
Effects of High Level of Uncertainty As Council budgets its capital requirements within a fixed level of rates funding which is increased annually by inflation, the effects will be on the timing of delivery of projects within the Capital Plan. The budgets for projects not completed would be carried forward as outlined in Corporate Assumption 13.
25.
Seismic Assessments - Council Owned Buildings
Assumption The Canterbury earthquakes have heightened awareness of the risk that building owners face and Council has implemented a seismic review of its building stock. The review is taking place on a prioritised basis and the full outcome and financial implications of the review will take time to be determined. Council believes that the outcomes of the seismic assessments will best be considered once the majority of the assessments are completed, when any work required can be planned and prioritised. This will be addressed when Council reviews its TYP in 2015.
Risk Underlying Financial Estimates Early assessments might indicate significant remedial costs to Council.
Level of Uncertainty Moderate.
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Significant Forecasting Assumptions continued 26.
Climate Change
Assumption It is assumed that any climate change arising from global warming will not impact in any significant way on the Napier community during the period covered by the plan. This assumption is based on assessments carried out by the Works Asset Department on changes to rainfall intensity with regard to possible climate change outcomes on Local Government functions and also to the guidance document regarding sea level rise, provided by the Ministry for the Environment. Council also commissioned and received from NIWA a report titled “Impacts of Climate Change on High Intensity Rainfall in Napier” and whilst the report is more directly specific to stormwater management, it is applicable to all services. The Works Asset Department will periodically review the current knowledge on climate change and possible effects. While Council recognises the increasing incidence in ‘rain bomb’ events, the forecasts do not provide for any mitigation of future events. However funding is provided for improving stormwater drainage in the CBD and Taradale, resulting from past events during the last decade.
Risk Underlying Financial Estimates Any impact in the short to medium term is likely to be by way of a natural adverse event - see Corporate Assumption 23
Level of Uncertainty Moderate.
27.
Emissions Trading Scheme
Assumption It is assumed that Council will not be eligible for any additional Emission Units under the NZ Emissions Trading Scheme and Council does not undertake activities that require purchase of emission units except indirectly through Council’s holdings in respect of the Omarunui Landfill joint venture (see below). No increase in operating costs arising from emissions related changes to energy costs have been included in the plan due to the uncertainty surrounding these. Reporting obligations under the Emissions Trading Scheme are undertaken by Hastings District Council as the administrative body for the Omarunui Regional Landfill. Emissions related landfill costs are incurred in the landfill, as a separate entity, and passed on to the landfill users through charges to users.
Risk Underlying Financial Estimates That Council could become eligible for additional Emissions Units or that energy costs including fuel may increase as a result of the pass through of emission related charges or government changes to fuel charges.
Level of Uncertainty Moderate.
28.
Local Economy
Assumption That Hawke’s Bay economy will continue to have moderate growth rates.
Risk Underlying Financial Estimates There is a risk that the local economic growth may not be maintained or may be higher.
Level of Uncertainty High.
Effects of High Level of Uncertainty As this Annual Plan is based around a conservative financial strategy, which encompasses an affordable and sustainable level on rating, impacts on individual ratepayers will not be significant.
44
Napier City Council Annual Plan 2014/2015
Significant Forecasting Assumptions continued 29
World Economy
Assumption New Zealand’s economy is directly affected by the world economy. The forecasts assume that the world economy will continue its slow recovery.
Risk Underlying Financial Estimates That the world economy could worsen, putting pressure on increasing costs.
Level of Uncertainty Moderate to high.
Effects of High Level of Uncertainty As this Annual Plan is based on a conservative financial strategy, which encompasses an affordable and sustainable level of rating, impacts on individual ratepayers will not be significant.
Napier City Council Annual Plan 2014/2015
45
Prospective Statement of Comprehensive Revenue and Expense For the Year Ended 30 June 2015 Actual
Annual Plan
TYP
AP
2013/14
2014/15
2014/15
2013/14
($000)
($000)
($000)
($000)
Revenue 45,938 Rates revenue
47,081
48,846
46,134
3,491 Finance revenue
1,500
720
1,500
1,616 Development and financial contributions
1,985
2,308
1,879
7,782 Subsidies and grants
3,792
4,169
4,789
34,749
43,375
40,898
31,472 Other revenue (4,400) Other gains/(losses) 85,899 Total revenue
1,098
1,094
1,098
90,205
100,512
96,298
Expenditure 25,429 Employee benefit expense
27,463
27,026
26,392
21,099 Depreciation and amortisation
23,013
25,131
22,334
31,570 Other expenses
32,236
38,196
35,231
-
-
141
82,712
90,353
84,098
7,493
10,159
12,200
237
319
225
7,730
10,478
12,425
255 Finance costs 78,353 Total expenditure 7,546 Operating surplus/(deficit) before tax 291 Share of associate surplus/(deficit) 7,837 Surplus/(deficit) before tax - Income tax expense 7,837 Surplus/(deficit) after tax
-
-
-
7,730
10,478
12,425
Other comprehensive revenue (412) Valuation gains/(losses) taken to equity 7,425 Total comprehensive revenue
46
5,048
-
-
12,778
10,478
12,425
Napier City Council Annual Plan 2014/2015
Prospective Statement of Revenue and Expense For the Year Ended 30 June 2015 Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
($000)
($000)
($000)
($000)
5,153 Roading
6,045
6,542
5,876
5,047 Solid Waste
5,382
5,800
5,274
674 Stormwater
759
948
847
7,943 Sewerage
8,213
9,029
7,549
3,910 Water Supply
4,724
4,979
4,484
2,479 Recreation
2,538
2,682
2,487
8,097 Social and Cultural
5,188
5,723
5,898
6,783 City Promotion
7,438
8,129
7,640
4,612 Planning and Regulatory
4,977
4,940
4,963
4,123 Property Assets
8,313
15,423
14,875
53,577
64,195
59,893
32,783 Non targeted rates
34,211
34,625
33,995
3,491 Interest Revenue
1,500
720
1,500
592 Rendering of services
596
632
596
212 Other Revenue
321
340
314
90,205
100,512
96,298
Total operating revenue (Activity Cost of Service Statements)
48,821 Total operating revenue Other revenue (as per Statement of Comprehensive Revenue)
85,899 Total revenue Total operating expenditure (Activity Cost of Service Statements) 1,799 Democracy and Governance 16,531 Roading
2,289
2,232
2,122
15,239
16,732
14,631
4,933 Solid Waste
5,215
5,597
5,079
3,308 Stormwater
3,908
3,919
3,524
6,549 Sewerage
7,461
8,201
6,786
4,025 Water Supply
4,304
4,479
4,034
10,386 Recreation
11,434
11,604
10,965
12,752 Social and Cultural
14,487
14,881
14,010
9,061 City Promotion
9,447
10,443
9,855
5,629 Planning and Regulatory
6,341
6,466
6,148
4,283 Property Assets
3,778
8,321
7,968
83,903
92,875
85,122
79,256 Total operating expenditure Other expenditure (as per Statement of Comprehensive Revenue) (1,543) Internal expenditure
(2,082)
(3,342)
(1,980)
223 Rates remissions
183
160
164
417 Other expenses
708
660
792
82,712
90,353
84,098
7,493
10,159
12,200
237
319
225
7,730
10,478
12,425
-
-
-
7,730
10,478
12,425
78,353 Total expenditure
7,546
Operating surplus/(deficit) before tax (as per Statement of Comprehensive Revenue)
291 Share of associate surplus/(deficit) 7,837 Surplus/(deficit) before tax (as per Statement of Comprehensive Revenue) - Income tax expense 7,837 Surplus/(deficit) after tax
Napier City Council Annual Plan 2014/2015
47
Prospective Statement of Changes in Net Assets/Equity For the Year Ended 30 June 2015 Actual
Annual Plan
TYP
Annual Plan
2012/13
2014/15
2014/15
2013/14
($000)
($000)
($000)
($000)
729,276
743,873
730,621
7,730
10,478
12,425
(21)
(80)
-203
736,986
754,271
742,843
716,220 7,837 865 724,922
Retained earnings at beginning of period Surplus/(Deficit) after tax [i] Transfers to/from Restricted Reserves Retained earnings at close of period Other reserves
627,733
690,469
690,953
634,324
9,106
Restricted reserves at beginning of period
3,714
3,600
2,680
(100)
Fair value through equity reserve at beginning of period
(120)
(107)
(100)
694,063
694,446
636,904
5,048
0
62,446
21
80
203
5,069
80
62,649
636,739
Revaluation reserves at beginning of period
Other reserves at beginning of period Movements
(412)
Valuation gains/(losses) on revaluation [ii]
(863)
Transfers to/from Retained earnings
(1,275) 625,514 10,070 (120) 635,464 1,360,386
7,425
48
Total movements in other reserves Revaluation reserves at close of period
695,517
690,953
696,770
Restricted reserves at close of period
3,735
3,680
2,883
Fair value through equity reserve at close of period
(120)
(107)
(100)
699,132
694,526
699,553
1,436,118
1,448,797
1,442,396
12,778
10,478
74,871
Other reserves at close of period Total Equity Total comprehensive income includes items [i] and [ii] above
Napier City Council Annual Plan 2014/2015
Prospective Statement of Financial Position For the Year Ended 30 June 2015 Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
($000)
($000)
($000)
($000)
ASSETS Current assets 8,003
Cash and cash equivalents
8,233
2,976
5,829
8,450
Debtors and other receivables
9,582
12,450
12,654
3,938
Inventories
4,447
4,662
4,677
300
300
300
8,000
5,033
5,000
30,562
25,421
28,460
1,382,176
1,392,916
1,383,756
418
811
903
2,740
5,053
2,058
33,482
38,806
35,992
4,617
4,906
4,439
349
2,246
7,075
264
Biological assets
73,374
Other financial assets
94,029
Total current assets Non-current assets
1,244,745 390 2,480 31,290 4,340 849
Property, plant and equipment Intangible assets Inventories Investment property Investment in associates Other financial assets
1,284,094
Total non-current assets
1,423,782
1,444,738
1,434,223
1,378,123
Total assets
1,454,344
1,470,159
1,462,683
10,811
13,859
12,133
3,810
3,416
3,669
4
4
8
14,625
17,279
15,810
1,260
1,524
1,420
780
780
1,040
1,561
1,779
2,013
0
0
4
3,601
4,083
4,477
18,226
21,362
20,287
LIABILITIES Current liabilities 8,649
Creditors and other payables
3,226
Employee benefit liabilities
2,008
Borrowings
13,883
Total current liabilities Non-current liabilities
1,007
Provisions
1,294
Revenue Received in Advance
1,540
Employee benefit liabilities
13 3,854 17,737
Borrowings Total non-current liabilities Total liabilities EQUITY
724,922
Retained earnings
736,986
754,271
742,843
635,464
Other reserves
699,132
694,526
699,553
1,360,386
Total public equity
1,436,118
1,448,797
1,442,396
1,378,123
Total liabilities and equity
1,454,344
1,470,159
1,462,683
Napier City Council Annual Plan 2014/2015
49
Prospective Statement of Cash Flows For the Year Ended 30 June 2015 Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
($000)
($000)
($000)
($000)
47,070
48,818
46,124
1,500
720
1,500
38,585
46,761
44,550
(61,605)
(64,188)
(61,570)
-
-
(141)
25,550
32,111
30,463
Cash flows from operating activities 45,682 3,317 43,353 (57,440) (289) 34,623
Receipts from rates revenue Interest received Receipts from other revenue Payments to suppliers and employees Interest paid Net cash from operating activities Cash flows from investing activities
1,707
Proceeds from sale of property, plant and equipment
139,489
Proceeds from withdrawal of investments
(28,384)
Purchase of property, plant, equipment and intangibles
(142,036) (29,224)
Acquisition of investments Net cash from investing activities
1,124
213
172
17,000
5,000
19,925
(38,983)
(40,428)
(50,500)
(4,735)
(205)
(5,000)
(25,594)
(35,417)
(35,403)
Cash flows from financing activities -
Proceeds from borrowings
-
-
-
(2,008)
Repayment of borrowings
(2,004)
(8)
(2,008)
(2,008)
Net cash from financing activities
(2,004)
(8)
(2,008)
Net (decrease)/increase in cash, cash equivalents and bank overdrafts
(2,106)
(3,317)
(7,044)
10,339
6,293
12,873
8,233
2,976
5,829
3,391 4,612 8,003
50
Cash, cash equivalents and bank overdrafts at the beginning of the period Cash, cash equivalents and bank overdrafts at the close of the period
Napier City Council Annual Plan 2014/2015
Notes of Changes between the TYP for 2014/15 and the 2014/15 Annual Plan Significant variances between the 2014/15 Ten Year Plan (TYP) and 2014/15 Annual Plan are outlined below. Reference numbers indicated correspond with note references in the Prospective Statement of Revenue and Expense, the Prospective Statement of Changes in Net Assets/Equity, the Prospective Statement of Financial Position and the Prospective Statement of Cash Flows in the 2014/15 Annual Plan.
1) General a)
The opening equity forecast as at 1 July 2014 shown in the Prospective Statement of Financial Changes in Net Assets/ Equity has been updated to reflect the most recent information available. This update includes changes flowing from the reported results for the 2012/13 financial year.
b)
Inflation factors used for the forecast variance from revaluation of assets applied to the TYP for 2014/15 varies from the plan. This reflects the lower actual inflation for the 12/13 year and forecast inflation for the 14/15 year.
c)
The TYP comparatives in the Prospective Statement of Income have been adjusted to include the Municipal Theatre Activity in the City Promotion Group instead of the Social and Cultural Group.
d)
Valuation gains/losses were incorrectly shown in the Prospective Statement of Comprehensive Revenue and Expense TYP for 2014/15. This has been removed for comparative purposes.
e)
In the Funding Impact Statements, Whole of Council and Activity Groups, the comparatives for the 2014/15 year of the TYP and 2013/14 Annual Plan have been restated to correct an error in the documents. The Application of Capital funding and Capital expenditure includes Vested Asset expenditure in “Increase/(decrease) in reserves” rather than in “to meet additional demand”.
2)
Prospective Statement of Income
The TYP 2014/15 and AP 2014/15 operating revenue and expenditure has been restated for the Social and Cultural and City Promotion Groups to correctly include the Municipal Theatre activity in City Promotion rather than in Social and Cultural as in past plans.
3)
Prospective Statement of Comprehensive Income - Revenue
Council Forecast Revenue Finance Income 120,000 Other Gains Losses
Thousands
100,000 80,000
Development & Financial Contributions
60,000
Subsidies & Grants
40,000
Other Revenue
20,000 ‐
Rates Annual Plan 14/15
TYP 14/15
a)
Rates Revenue – The level of rates revenue proposed in the Annual Plan is 3.8% lower than anticipated in the TYP. The variance is the result of forecast inflation levels for the 2014/15 year. Actual recorded inflation is substantially lower than that forecast for the 2013/14 year as is the 2014/15 year forecast. The TYP included an expected $1.2M of inflation for the 2013/14 year. The lower actual and forecast inflation levels have impacted Council operating costs and the direct and indirect costs of the capital plan resulting in a rating level of $47.1M compared to the TYP forecast of $48.8M. This is around $71 per rateable property lower than forecast when the TYP was prepared.
b)
Finance Income – Finance Income or interest received on funds invested is expected to be +$0.8M above that forecast in the 2014/15 TYP. This is due to a cash position above the opening level assumed in the TYP for the commencement of the 2014/15 year.
c)
Other Revenue – Other revenue for 2014/15 Annual Plan is $8.6M below that forecast in the TYP. Significant variations from the plan are:
Napier City Council Annual Plan 2014/2015
51
Explanatory Notes of Changes continued Description
Increase+/Decrease –
Million Rental Income
-$0.6
Retail & Product Sales
-$0.6
Financial contributions
-$0.3
Sales Residential Development
-$6.7
Rendering of Services
-$0.3
Rental Income, Retail & Product Sales and User Charges & Rendering of Services have been reduced in line with the cumulative lower inflation rates now forecast compared to those forecast for the 2014/15 TYP and to reflect reduced demand for residential sections.
4)
Prospective Statement of Comprehensive Income – Operating Expenditure
Council Operating Expenditure $100,000
Finance costs
Thousands
$80,000 Other expenses
$60,000 $40,000
Depreciation and amortisation
$20,000 $0 Annual Plan 14/15
a)
Employee benefit expenses Ten Year Plan 14/15
Employee Benefit Expense
Employee benefit expense is in line with the forecast for the 2014/15 TYP. The level forecast is 4.0% above the Annual Plan for 2013/14. The increase is due to change in the level of Kiwisaver +1% (full year) and an anticipated increase in Kiwisaver uptake, changes in wages and salary rates and additional staff employed for new services including cleaning and maintenance of the bus depot. b)
Other expenses – Other expenses are planned to be 15% or -$5.9M below the 2014/15 TYP inflated forecast level.
Significant items contributing to this reduction: Description
Increase+/Decrease –
Million Inflation Variance
-$2.8
Electricity +$0.1 Insurance +$0.3 Omarunui Landfill Fees
-$0.3
Roading
-$0.2
Residential Development
-$3.5
Tree removal
+$0.1
Operating Costs
+$0.4
52
Napier City Council Annual Plan 2014/2015
Explanatory Notes of Changes continued Inflation Variance: The inflation variance is the difference between the TYP other expenses and the uninflated TYP values adjusted for inflation at 0.7%. Other variances listed above are after adjustment for inflation differences. Electricity Variance: The electricity variance has been driven by the opening of MTG Hawkes Bay (Museum) due to the larger facility. This has increased costs by $0.1M above the TYP. Insurance Increase: Insurance cost increases for 2014/15 have been advised at $0.3M above the TYP 2014/15 level. This is around 16% above the TYP 2014/15 level and now sits at 4.4% of the total rates revenue. Insurance costs appear to have plateaued since the earthquakes and large future increases are looking unlikely. Omarunui Landfill Fees: Increases in landfill fees as a result of the expected Emissions Trading Scheme cost increases. This scheme has not advanced to the stage forecast in the TYP consequently costs are below those expected. Residential Development: Due to lower forecast sales, costs of development are forecast to be lower than anticipated in the 2014/15 TYP. Any actual increase in sales in the forecast year will also result in increased costs. Roading: Lower levels of work in road amenities will be undertaken due to a decrease in New Zealand Transport Agency funding. The lower level of activity is not expected to impact service levels in the 2014/15 year. Lower operating costs have also been offset by higher total capital expenditure. Operating Costs: Operating costs from goods and services delivered are anticipated to be lower than forecast. This is a result of lower forecast sales in the Annual Plan for 2014/15 than forecast in the 2014/15 TYP. See 3) c) above regarding forecast decrease in retail and product sales.
.
Council Expenditure by Group 2014/15 Annual Plan Democracy and Governance Planning and Regulatory
Operating Expenditure Annual Plan
Social and Cultural
Capital Expenditure Annual Plan
Water Supply Stormwater Roading $0
$10,000 $20,000 $30,000 Thousands
Council Expenditure by Group 2014/15 Ten Year Plan Democracy and Governance Property Assets
Operating Expenditure TYP
Planning and Regulatory City Promotion Social and Cultural
Capital Expenditure TYP
Recreation Water Supply Sewerage Stormwater Solid Waste Roading $0
$10,000
$20,000
$30,000
Thousands
Napier City Council Annual Plan 2014/2015
53
Explanatory Notes of Changes continued 5)
Prospective Statement of Financial Position
a)
Cash and Cash Equivalents: Cash and Cash Equivalents are forecast to be $5.3M above the level forecast in the Ten Year Plan. This is due to a lower property plant and equipment than indicated in the TYP and lower current liabilities than previously planned.
b)
Property Plant and Equipment: Property Plant and Equipment is forecast to be $10.7M below the level forecast in the 2014/15 Ten Year Plan. The decrease is mostly due to a timing of projects, lower than anticipated expenditure on the Sewerage Treatment Plant, and inflation savings compared to the TYP budget. Capital expenditure is planned at $0.7M below the 2014/15 TYP level. Parklands development and associated sales continue to be lower than the TYP. The TYP had forecast this land to be transferred to inventory in the 2013/14 year. It is now expected that this will occur a year later (2016/17) due to lower residential section sales than previously anticipated.
2014/15 Capital Plan ‐ Expenditure by Activity Group $000's Roading
436 182
9,425
0
Solid Waste Stormwater
6,499
398
Sewerage
1,370
Water Supply
2,678
6,637
Recreation
3,233
Social and Cultural City Promotion Planning and Regulatory
2014/15 Capital Plan ‐ Expenditure by Funding $000's 12,070 Financial Contributions
5,938
Loans ‐ Growth 2,341
Loans ‐ Rates Rates
2,548 6,920 1,017
1,460
Reserve Funds NZTA Subsidy Vested Assets
54
Napier City Council Annual Plan 2014/2015
Explanatory Notes of Changes continued
2014/15 Capital Plan ‐ Expenditure by Classification $000's 13,925 43%
8,060 25%
10,309 32%
Growth Increased Level of Service Renewal
c) Inventories – Non Current Assets: Non-current inventories are land and land development lots which are expected to be sold in a time frame outside the year of the plan. These inventories relate only to the Parklands Residential Development. The Ten Year Plan forecast non-current inventories to be $2.3M higher than now forecast in the 2014/15 Annual Plan. Due to lower than forecast sales of residential sections, land that was expected to have been transferred to inventory in the 13/14 TYP year, is now expected to be transferred to inventory in the 16/17 plan year. This will increase inventory value in the year of transfer and decrease Property Plant and Equipment value by the same amount. d)
Creditors and Other Payables: Creditors and other payables have been reforecast in the 2014/15 Annual Plan using the 2012/13 actual data as an opening value and as an indicative basis.
e) Equity: There are no material variances between the 2014/15 Annual Plan forecast and the 2014/15 Ten Year Plan. Further information in regard to individual components of Equity is detailed in Note 6) below.
6)
Prospective Statement of Changes in Equity
Significant changes between the 2012 – 2022 TYP and the 2014/15 Annual Plan are: a)
Retained Earnings
Lower surplus forecast for the plan year due to lower revenue, mostly offset by lower expenses, results in a lower retained earnings at 30 June 2015. The variance is 0.5%
b)
Revaluation Reserve
Revaluation Reserves are forecast to be $4.6M above the forecast 2014/15 TYP value. Note: Due to a change in accounting policy at 30 June 2012, Road assets are now revalued on an annual basis. The TYP was prepared under the previous accounting policy where Road assets were revalued on a 3 yearly cycle with all other assets.
c)
Restricted Reserves
Restricted Reserves are forecast to be $0.1M above the value forecast in the 2014/15 TYP. This is in mainly due to the proposal to the establishment of a loan reserve account to manage internal loan requirements partially offset by lower than anticipated funds from the sale of Endowment Land.
7)
Prospective Statement of Cash Flows
Notable variances in the 2014/15 Annual Plan compared to the 2014/15 TYP are lower receipts from rates revenue, receipts from other revenue, purchase of property plant and equipment, net decrease in cash and bank overdrafts and cash and cash equivalents at the beginning of the period. Lower receipts from rates revenue, receipts from other revenue and purchase of property plant and equipment have been reviewed in items 1) and 4) above. The decrease in cash and cash equivalents is the net result forecast changes in levels of income and costs. However due to an opening cash balance higher than that forecast in the 2014/15 TYP Councils closing cash position is expected to be $5.3M above that forecast in the 2014/15 TYP. This is due to the lower than anticipated spend on infrastructure asset renewal reserves.
Napier City Council Annual Plan 2014/2015
55
Special Funds Reserve Funds As defined by the Local Government Act 2002 (the Act), a reserve fund means money set aside by a local authority for a specific purpose. Under Schedule 10 Section 16, of the Act, the Ten Year Plan must identify the following in regard to each reserve: The purpose of the fund, the activities to which the fund relates, the opening balance of the fund, the closing balance of the fund, the amount expected to be deposited into the fund, and the amount expected to be withdrawn from the fund over the term of the plan. These values are shown in the table below. The Council’s Reserve Funds are classified into three categories:
Council Created Reserves - established by Council for specific purposes.
Restricted Reserves - where there are legal obligations which restrict the use of the funds.
Bequest and Trust Funds - amounts received from Bequests, Donations or Funds held on behalf of a community organisation.
TITLE
Activity to which fund relates
Opening 1 July 2014 ($000)
Deposits
Expenditure
$000
$000
Closing Balance 30 June 2015 $000
COUNCIL CREATED RESERVES Advanced Wastewater Treatment Establishment Fund Accumulation of Advanced Wastewater Levies collected from Napier ratepayers along with interest earned on these funds.
Wastewater
(668)
-
668
-
Dog Control
(430)
(652)
633
(449)
(123)
(123)
103
(143)
(331)
-
331
-
(7,630)
(2,599)
7,944
(2,285)
(17,182)
(6,923)
8,364
(15,741)
-
-
Dog Control Fund This fund is a requirement under the Dog Control Act 1996. All transactions related to the dog owner’s share of the costs of Animal Control, both operating and capital, flow to this account. Amounts include dog related fees received and the operating and capital costs of the dog related activity of Animal Control. General Reserve No.1 Derived from rates arising from NZ Railway land in Munro and Station Streets. The reserve is used to fund the provision of infrastructure (including debt servicing) for any
Roading, Stormwater, Parking
development on this site. MTG Hawke’s Bay Funds collected from donations and government grants for the Museum Redevelopment Project.
MTG Hawkes Bay
Financial Contributions Roading, Collected from financial contributions from developers on the
Stormwater, Water,
subdivision of land and various land use activities. Used to
Wastewater, Reserves,
fund capital works and services.
Sportsgrounds, Pools, Library
Infrastructural Asset Renewal and Upgrade Fund Water Supply, Collected from the annual rate funded allocation as per the Capital Plan. Used for capital expenditure on infrastructural asset renewals and associated upgrades.
Wastewater, Stormwater, Solid Waste, Reserves, Sportsgrounds, Libraries, Pools
Keep Napier Beautiful Originally derived from surplus revenue in Keep Napier Beautiful project. Currently credited with annual grant for garden competition and used for competition expenses and
Reserves
administration costs.
56
Napier City Council Annual Plan 2014/2015
Special Funds continued TITLE
Activity to which fund relates
Opening 1 July 2014 ($000)
Deposits
Expenditure
$000
$000
Closing Balance 30 June 2015 $000
Marine Parade Disability Hoist Derived from fundraising carried out by Mr N Bains. Funds intended to be used to purchase a disability hoist for the
Pools
(3)
-
-
(3)
(205)
-
205
-
Parking
(2,011)
(242)
12
(2,241)
Parking
(5,860)
(2,569)
1,579
(6,849)
Parking
(663)
(102)
102
(663)
Parking, Roading
30
(220)
215
25
Solid Waste
(858)
(1,969)
1,099
(1,728)
Reserves
(1,448)
(65)
-
(1,513)
All Activities
(1,228)
-
(101)
(1,330)
(31,011)
(12,645)
12,995
(30,661)
Wastewater
-
-
-
-
Community Planning
-
-
-
-
Property Holdings
(869)
(39)
-
(908)
Marine Parade Pool. Pensioner Housing Upgrade Reserve Established from a contribution from rates equivalent to the annual depreciation on pensioner flats and houses owned by Council. The reserve is available to provide capital upgrade
Retirement & Rental Housing
of these facilities. Parking Contributions Account Funds derived for the provision of parking facilities. Parking Account Funds are derived from the surplus revenue from the Parking Business Unit and are used to provide for parking facilities within the Central Business District. Parking Equipment Reserve Account To provide funds for replacement of parking equipment on a regular basis. Taradale Parking Meters Funds collected from Parking Meters in Taradale Town Centre to fund the upgrade of the Town Centre (including parking) 2009 - 2019 Ten Year Plan. Solid Waste Disposal Income Account This account is derived from returns from solid waste disposal facilities and is used to fund the facilities’ capital development and net operating costs, including the Transfer Station Reserve Subdivision of Land This account is derived from contributions on the subdivision of land towards the development of reserves and subject to Council approval as part of the annual budget process. Subdivision and Urban Growth Fund To service all borrowing in relation to Council’s share of subdivision and urban growth projects, and to meet any servicing costs on financing the developer’s share of projects where expenditure requirements precede the receipt of financial contributions. A part of the surplus is also used to reduce the general rate requirement. Total Council Created Reserves
RESTRICTED RESERVES Advanced Wastewater Treatment Establishment Fund (HB Regional Council Distribution) Established in 1999/2000 by a special distribution from HBRC for advanced treatment of wastewater. The funds are held in separate investments. Creative New Zealand Derived from a grant from Creative NZ. This fund has been established to support local arts projects within the Napier area. Endowment Land Account Derived from the sale of BCP Faraday Street land and the transfer of the Criterion Account capital sum previously advanced to the Land Development Account. This account is now used for the sale and purchase of other endowment land.
Napier City Council Annual Plan 2014/2015
57
Special Funds continued TITLE
Activity to which fund relates
Opening 1 July 2014 ($000)
Deposits
Expenditure
$000
$000
Closing Balance 30 June 2015 $000
Hawke’s Bay Harbour Board Endowment Land Income Account This account was derived from proceeds from the sale of former Harbour Board leasehold properties up to 30 March 2002. Council resolution of 26.6.02 states “That the full uncommitted balance of the Harbour Board Land Account at 30 March 2002 be used to fund maintenance and capital
Inner Harbour, Reserves
(263)
(2,357)
2,473
(147)
improvements of the Inner Harbour and any other future capital expenditure related to Napier Harbour as defined by the Act”. Loan Reserve Established to manage internal loan requirements.
Corporate
Total Restricted Reserves
(1,353)
(68)
-
(1,421)
(2,485)
(2,464)
2,473
(2,476)
-
(33)
-
(147)
-
(22)
BEQUESTS AND TRUST FUNDS Colenso Bequest Bequest is invested and the income derived used to: i) Provide a fund for the assistance of poor families. (Capital $2500) ii) Provide assistance for prisoners released from Napier jail. (Capital $500)
Community Planning
(32)
iii) Provide a fund for the assistance of distressed seamen and strangers. (Capital $1000) iv) Provide prizes for senior scholars at Napier Boys, Napier Girls & Colenso High Schools. (Capital $1000) Estate Henry Hodge For charitable purposes, with a wish that it be used for the erection of flats for the needy.
Retirement & Rental Housing
(140)
(6)
Eskdale Cemetery Trust This Trust fund, comprising a number of bequests totalling $1,400, was taken over from the former Hawke’s Bay County Council, and is available for the maintenance and upkeep of
Cemeteries
(21)
the Eskdale Cemetery. Hawke’s Bay Municipal Theatre Funds held on behalf of Hawke’s Bay Arts and Municipal Theatre Trust.
Napier Municipal
(5)
-
-
(5)
Community Planning
(50)
(2)
-
(52)
Sportsgrounds
(12)
-
(13)
Community Planning
(15)
-
(16)
-
(288)
Theatre
John Close Bequest Bequest is invested and income used in two ways: i) Cemetery Trust - for upkeep and maintenance of the Close burial plot, with surplus income to provide ham and ale at Christmas to the poor, old and needy. ii) Coal Trust - provided wood and coal to the needy. A scheme for arrangement for the disposition of income in terms of the Charitable Trusts Act 1957 was to have been initiated in 1993. Morecroft Bequest To provide a Municipal gymnasium or gymnasium equipment, either as a separate building or as part of any memorial or centennial hall which Napier City Council may decide to erect. Napier Christmas Cheer For community fundraising through the HB Today for the preparation of Christmas parcels to be distributed to disadvantaged individuals and families within the Napier District. Total Bequests Trust Funds
58
(275)
(12)
Napier City Council Annual Plan 2014/2015
Borrowing Programme Actual 2012/13
Annual Plan
(000)
2014/15 ($000)
TYP 2014/15 ($000)
AP 2013/14 ($000)
New Loans 5,749 0 51
- Rate Funded
4,905
5,792
- Growth Funded
1,017
1,061
1,267
431
0
3,709
- Non-Rate Funded
5,800
8,758
6,353
6,853
10,477
(2,748)
(2,714)
(4,546)
3,605
4,139
5,931
36,777 Opening Public Debt
50,651
56,088
46,900
37,281 Gross Public Debt
54,256
60,226
52,831
(54,252)
(60,222)
(56,076)
4
4
(3,245)
(5,296) Less Repayments (Net) 504
(35,261) Internal Funding 2,020 Net Public Debt
Loan Funding Loan funding measures compared to borrowing policy limits. Annual Plan
TYP
TYP/ AP
Actual 2012/13
2014/15
2014/15
2013/14
($000)
($000)
($000)
($000)
Debt Servicing Proportion of Rates Revenue applied to Service Debt (External & Internal Debt) 16%
Policy limit
7.5%
Actual
16%
16%
16%
8.27%
10.3%
9.2%
100%
100%
100%
60%
60%
56%
$1,000
$1,000
$1,000
$665
$777
$694
Debt / Income Net Debt as a % of total income 100% 42%
Policy limit Actual Rate Funded Debt per Capita Net Rate-funded Debt
$1,000 $480
Policy limit Actual
Napier City Council Annual Plan 2014/2015
59
Prospective Capital Plan The Prospective Capital Plan for 2014/15 is based on the TYP Capital Plan as amended in the 2013/14 Annual Plan. Differences arise from changes to the inflation factors used to calculate the cost of the Capital Plan, variations to timing of planned projects and additional projects added to the Prospective Capital Plan. Costs in the 2013/14 Annual Plan assumed an inflation factor for the 2014/15 year of 4.3%. The costs for this Prospective Capital Plan are calculated using the factor 0.7% (CPI for December 2013). The timing of some projects has been adjusted to achieve rates funding levels in accordance with Council’s policies. The following projects have been added: Year
Budget ($000)
Perfume Point Reserve Beach Landscaping
2014/15
105
Dog Agility Track
2014/15
60
Description
Funding HB Harbour Board Endowment Land Income Account Dog Control Account
Major Capital Projects In addition to Council’s programme of infrastructural asset renewal and other routine capital expenditure, the major capital projects included in the Prospective Capital Plan are:
Taradale Stormwater Upgrade
Ellison Street Stormwater Pump Station
Wastewater Outfall Replacement
Additional Water Reservoir Taradale
Awatoto Water Supply Trunk Main
Park Island Sportsgrounds expansion
McLean Park Turnstiles and Returf
Napier Aquatic Centre Enclosure Building
Passive Recreation Reserves and Reserves Pathways and Linkages. Additional Reserve facilities which will cater for Napier’s population growth
Napier Library Redevelopment
Additional Parking Facilities - to cater for demand
Omarunui Landfill Development
Te Awa Structure Plan Stages 1 & 2 – Roading, Stormwater, Wastewater and Water Supply
60
Napier City Council Annual Plan 2014/2015
Napier City Council Annual Plan 2014/2015 652
436
92
595
316
279
14
-
520
476
858
181
677
998
96
124
2
145
631
10,259
-
-
-
-
14
-
531
930
887
187
700
492
99
128
2
12
251
12,156
1,513
-
-
-
-
2,574
2,054
1,392
4,623
1,611
3,012
2016/17
-
-
-
2,493
1,989
1,363
4,414
1,539
2,875
2015/16
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
35
35
-
Upgrade Taipo Stream
-
13 -
Georges Drive Drain
-
Extend Outfalls Marine Parade
13
Stormwater Vested Assets
439
54
458
455 448
808
Stormwater I.A.R.
802
156
Upgrading Stormwater Catchments
Stormwater
STORMWATER
SOLID WASTE TOTAL
Solid Waste I.A.R.
119
2
54
169
9,425
-
-
-
-
-
2,146
155
647
488
91
Omarunui Development - Valleys B & C
Omarunui Development - Forestry
6
121
Omarunui Development - Plant
Omarunui Development - Valley D
Solid Waste
9
261
SOLID WASTE
ROADING TOTAL
Domett Street Extension
-
11,278
Te Awa Structure Plan Stages 1 & 2
-
Jervois Road Footpath
CBD Development
1,414
120
Transportation Proposals
2,131
Clive Square Bus Shelter
Roading Capital Projects (Bulk Funded)
1,901
460
1,175
Roading Vested Assets
1,151 1,914
4,190
4,101
2,730
2014/15
1,460
Roading I.A.R.
Roading
ROADING
Description
1,426
2,675
2013/14
-
-
-
14
60
595
508
927
203
724
471
102
132
2
1
234
14,262
-
2,935
-
-
-
2,803
2,125
1,558
4,841
1,689
3,152
2017/18
-
-
-
15
-
616
527
960
210
750
1,155
106
137
2
345
565
11,797
-
-
-
-
-
2,904
2,201
1,615
5,077
1,773
3,304
2018/19
-
-
-
16
-
640
1,644
997
219
778
773
110
142
2
142
377
12,271
-
-
-
-
-
3,015
2,285
1,676
5,295
1,865
3,430
2019/20
-
-
-
16
-
666
2,438
-
-
-
17
70
695
2,685
1,082
237 1,037
845 227
495
119
154
3
-
219
13,376
-
-
-
-
-
3,272
2,481
1,820
5,803
2,080
3,723
2021/22
810
612
114
148
2
-
348
12,792
-
-
-
-
-
3,136
2,377
1,744
5,535
1,967
3,568
2020/21
Funding
630
316 Financial Contributions
314 Rates
119 Rates
130 Rates
4,711 Vested Assets
9,666 Rates
7,556
1,620 Financial Contributions
5,936 Rates
5,432
838 Rates
1,084 Regional Landfill Inc A/c
17 Regional Landfill Inc A/c
699 Regional Landfill Inc A/c
2,794 Regional Landfill Inc A/c
96,338
1,513 Financial Contributions
2,935 Financial Contributions
- Capital Reserve
- Capital Projects Fund
- Loans - Rates
22,343 Financial Contributions
17,426 Rates
12,343 Vested Assets
39,778
13,984 TNZ Subsidy
25,794 Rates
Total
Eight Year
100%
100%
100%
100%
100%
100%
G
100%
100%
100%
100%
100%
100%
100%
L
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
R
Prospective Capital Plan Continued
61
62
Napier City Council Annual Plan 2014/2015
Awatoto Trunk Main
-
2,179
-
-
221
121
22
90
600
2,678
-
-
2,831
-
257
126
23
94
623
2,761
-
-
699
-
-
-
529
-
238
263
-
-
-
262
130
24
97
644
3,115
-
-
714
-
-
-
546
-
246
271
1,338
3,844
4,214
1,032
-
-
-
1,419
-
-
-
-
63
2016/17
-
-
-
1,690
-
-
-
-
61
2015/16
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
New Reservoir Taradale
New Well - Awatoto
-
Water Supply Vested Assets
838
with IAR
216
120
Water Meters I.A.R.
22
Water Supply - Capital Upgrade Associated
Water Pump Stations I.A.R.
Water Pipes I.A.R.
Water Supply
WATER SUPPLY
SEWERAGE TOTAL
89
596
5,198
Te Awa Structure Plan Stages 1 & 2
-
-
602
Wastewater Outfall Replacement
590
Wastewater Vested Assets
-
-
-
-
509
657
BTF Wastewater Treatment Plant
Wastewater Outfall I.A.R.
-
229
253
1,085
6,499
-
-
1,627
2,034
2,576
1,919
505
Wastewater Treatment Plant I.A.R.
Wastewater Pump Stations I.A.R.
227
-
Milliscreen I.A.R.
Wastewater Pipe I.A.R.
Wastewater
SEWERAGE
STORMWATER TOTAL
251
1,049
4,033
Jervoistown Stormwater Improvements
Te Awa Structure Plan Stages 1 & 2
-
140
Te Awa Stormwater Pond
Taradale Stormwater Upgrade
-
51
1,017
CBD Stormwater Upgrade
-
2,020
-
59
2014/15
-
Ellison Street Pump Station
Drain Improvements
Description
-
-
59
2013/14
-
-
-
294
134
24
100
666
4,590
1,096
-
798
-
-
-
565
-
254
281
1,596
2,966
-
797
-
-
-
-
-
-
65
2017/18
-
-
-
305
139
25
104
690
3,284
-
-
827
-
-
-
585
59
263
291
1,259
2,901
-
-
-
-
-
-
-
-
783
2018/19
-
-
-
316
144
26
107
716
3,348
-
-
858
-
-
-
608
-
273
302
1,307
8,571
-
-
-
-
-
5,204
1,041
4,163
70
2019/20
-
-
-
329
150
27
112
745
3,483
-
-
893
-
-
-
632
-
284
314
1,360
4,230
-
-
-
-
-
-
-
-
73
2020/21
-
-
-
343
157
29
117
778
12,994
-
9,226
932
-
-
-
660
132
297
328
1,419
4,625
-
-
-
-
-
-
-
-
76
2021/22
Funding
2,179 Financial Contributions
2,831 Financial Contributions
- Financial Contributions
2,327 Vested Assets
1,101 Rates
200 Rates
821 Rates
5,462 Rates
36,253
1,096 Financial Contributions
9,226 Loans - Rates
6,323 Vested Assets
-
- Loans - Rates
- AWT Fund
4,634 Rates
191 Rates
2,084 Rates
2,303 Rates
10,396 Rates
37,850
- Financial Contributions
797 Financial Contributions
1,627 Financial Contributions
5,143 Catchments Upgrade
1,017 Catchments Upgrade
5,204
1,041 Financial Contributions
4,163 Loans - Growth
1,250 Rates
Total
Eight Year
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
G
100%
42%
100%
100%
70%
70%
100%
100%
L
100%
100%
100%
58%
100%
100%
100%
100%
100%
30%
30%
R
Prospective Capital Plan continued
Napier City Council Annual Plan 2014/2015 -
Install Automatic Irrigation Systems
Replace RGC Events Centre Floor
Guppy Road Sports Village Stage 2
McLean Park Turnstiles
McLean Park Returf
Park Island Expansion
-
-
-
-
-
-
500
Passive Recreation Reserves
101
63
Reserves, Pathways and Linkages
Westshore Beach Reprofiling
Hardinge Road Erosion
New Playground
-
-
-
-
517
-
213
431
1,361
55
69
102
102
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
Playground Equipment
-
Tree Planting Programme
Reserves Vested Assets
101
69
Reserves I.A.R.
513
Reserves
NAC Total
455
1,138
158 980
NAC I.A.R.
NAC Enclosure Building
298
2,035
157
Napier Aquatic Centre (NAC)
Sportsgrounds Total
Extension of Suburban Sportsgrounds
125
2,158.0
-
Light tower upgrade
-
690 1,707
-
1,017
-
-
-
-
-
-
-
-
1,414
-
72
-
106
537
164
-
164
3,058
-
-
2,009
-
2,009
-
369
339
-
-
-
-
-
402
341
1,207
328
-
-
-
3,954
2015/16
-
Sportsgrounds Development
-
-
-
3,233
2014/15
-
Sportsgrounds I.A.R.
805
Sportsgrounds
RECREATION
WATER SUPPLY TOTAL
326
2,349
Upgrade Water Supply Control System
360
Te Awa Structure Plan Stages 1 & 2
Severn Street Extension
-
Description
108
2013/14
-
-
-
-
-
-
-
-
74
3,274
109
555
170
-
170
2,165
-
-
1,408
1,408
-
358
47
-
159
113
-
-
61
77
-
113
574
175
-
175
897
-
-
-
-
-
533
-
-
-
-
-
-
-
364
1,540
-
-
322
2017/18
-
-
-
-
352
1,157
2016/17
-
-
-
-
-
53
662
-
-
-
82
-
122
617
189
-
189
1,104
-
-
-
-
-
-
-
-
498
214
-
-
-
392
1,309
2019/20
-
-
-
-
79
-
117
595
182
-
182
583
-
-
-
-
-
-
-
-
-
206
-
-
-
377
1,263
2018/19
-
-
-
-
-
-
-
68
86
-
127
642
196
-
196
566
-
-
-
-
-
-
-
-
-
159
-
-
-
407
1,363
2020/21
-
-
-
-
-
-
-
-
89
-
132
670
205
-
205
496
-
-
-
-
-
-
-
-
71
-
-
-
-
425
1,424
2021/22
Funding
874 Rates
326 HBHBELI A/c
431 Loan HBHBELI A/c
2,775 Loans - Rates
184 Rates
628 Rates
3,376 Financial Contributions
928 Vested Assets
4,707 Rates
2,419
980 Loans - Rates
1,439 Rates
10,904
- Endowment Land Account
- Capital Reserve
5,124
2,098 Financial Contributions
3,026 Loans - Growth
891 Rates
416 Rates
339 Rates
569 Rates
579 Loans - Rates
-
- Financial Contributions
- Loans - Growth
2,986 Rates
15,243
- Rates
- Rates
322 Financial Contributions
Total
Eight Year
60%
100%
100%
100%
100%
33%
100%
100%
100%
G
40%
100%
100%
100%
100%
100%
100%
20%
67%
100%
100%
L
100%
100%
100%
100%
100%
80%
100%
R
Prospective Capital Plan continued
64
RECREATION TOTAL
4,754
NMT Total
29
HBMAG Total
27
Napier City Council Annual Plan 2014/2015
Halls Total
300
-
-
27
27
29
29
502
-
-
-
-
-
28
28
30
30
522
-
522
21
501
5,515
164
164
2,129
2015/16
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
Memorial Square Building Development
300
Halls
MTG Minor Capital
27
Museum, Theatre, Gallery Hawkes Bay (MTG)
NMT Minor Capital
29
Napier Municipal Theatre (NMT)
Libraries Total
-
567
502
-
Napier Library Redevelopment
567
482 20
Library Stock
Libraries
6,637
158
158
3,306
-
105
351
2014/15
64
503
Inner Harbour Total
157
SOCIAL AND CULTURAL
Inner Harbour Facilities I.A.R.
157
Inner Harbour
Reserves Total
1,984
Perfume Point Reserve Beach Landscaping
-
Marine Parade Development Projects
Relocate Nursery
-
Description
1,200
2013/14
-
-
-
-
-
29
29
31
31
538
-
538
21
517
6,517
170
170
4,012
2016/17
-
-
-
-
-
30
30
32
32
557
-
557
22
535
2,344
175
175
1,097
2017/18
-
-
-
-
-
-
-
31
31
33
33
577
-
-
32
32
35
35
600
-
600
577 -
24
576
2,356
189
189
874
2019/20
23
554
2,400
182
182
1,453
2018/19
-
-
-
-
-
34
34
36
36
624
-
624
25
599
1,881
196
196
923
2020/21
-
-
-
-
-
35
35
38
38
1,178
527
651
26
625
1,797
205
205
891
2021/22
Funding
-
- Capital Reserve
246
246 Rates
264
264 Rates
5,098
527 Rates
4,571
182 Financial Contributions
4,389 Rates
29,447
1,439
1,439 HBHBELI A/c
14,685
- Capital Projects Fund
105 HBHBELI A/c
351 Rates
Total
Eight Year
100%
G
100%
L
100%
100%
100%
100%
100%
100%
100%
100%
R
Prospective Capital Plan continued
Napier City Council Annual Plan 2014/2015
WMC Total
18
NANZ Plant & Equipment
NANZ Total
34
54
54
34
20
18
18
1,370
148
38
110
345
12
86
247
56
35
21
19
19
908
114
-
114
101
12
89
-
113
22
-
22
91
-
91
2015/16
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
NANZ Minor Capital
20
National Aquarium of New Zealand (NANZ)
WMC Minor Capital
War Memorial Conference Centre (WMC)
CITY PROMOTION
SOCIAL AND CULTURAL TOTAL
Public Toilets Total
New Toilet Programme
Public Toilets I.A.R.
Public Toilets
18
1,644
147
38
109
Cemeteries Total
Cemeteries - Beams
12
256
Cemeteries I.A.R.
85
Western Hills Extension
Cemeteries
319
318
159
45
44
Retirement and Rental Housing Total
24
21
23
274
21
Rental Housing Minor Capital
274
88
2014/15
186
Retirement Housing Minor Capital
Retirement and Rental Housing
Description
187
87
2013/14
57
36
21
19
19
979
159
41
118
105
13
92
-
117
23
-
23
94
-
94
2016/17
60
38
22
20
20
1,012
164
42
122
108
13
95
-
121
23
-
23
98
-
98
2017/18
62
39
23
21
21
1,006
127
-
127
113
14
99
-
125
24
-
24
101
-
101
2018/19
65
41
24
21
21
1,090
176
45
131
117
14
103
-
130
25
-
25
105
-
105
2019/20
67
42
25
22
22
1,135
184
47
137
122
15
107
-
135
26
-
26
109
-
109
2020/21
70
44
26
23
23
1,662
143
-
143
491
309 Rates
182 Rates
163
163 Rates
9,162
1,215
213 Rates
1,002 Rates
1,138
109 Rates
16
247 Rates
1,201
215
24 PH Upgrade Res
191 Rates
986
782 Rates
127
Funding
186 PH Upgrade Res
800 Rates
Total
Eight Year
111
-
141
27
-
27
114
-
114
2021/22
G
100%
100%
100%
L
100%
100%
100%
100%
100%
100%
100%
100%
100%
R
Prospective Capital Plan continued
65
66
Napier i-SITE Visitor Centre Total
12
Par2 MiniGolf Total
6
Kennedy Park Total
CITY PROMOTION TOTAL
306
396
Napier City Council Annual Plan 2014/2015
Parking Total
662
122
102
20
-
-
60
-
60
-
398
308
120
188
6
6
12
12
2014/15
127
106
21
-
-
-
-
-
-
413
320
125
195
6
6
12
12
2015/16
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
Parking Equipment Replacement
Parking Minor Capital
Suburban Parking
CBD Parking Projects
101
20
541
Parking
Animal Control Total
51
-
Animal Control Minor Capital
Dog Agility Track
Animal Control
51
-
Kennedy Park Minor Capital
119
PLANNING AND REGULATORY
Kennedy Park I.A.R.
187
Kennedy Park Resort
Par 2 Minor Capital
6
Par2 MiniGolf
i-SITE Minor Capital
Napier i-SITE Visitor Centre
Description
12
2013/14
130
109
21
-
-
-
-
-
-
426
331
129
202
6
6
13
13
2016/17
2,393
113
22
-
2,258
-
-
-
-
442
342
133
209
7
7
13
13
2017/18
140
117
23
-
-
-
-
-
-
458
354
138
216
7
7
14
14
2018/19
2,818
122
24
-
2,672
-
-
-
-
474
367
143
224
7
7
14
14
2019/20
152
127
25
-
-
-
-
-
-
493
382
149
233
7
7
15
15
2020/21
3,322
132
26
-
3,164
-
-
-
-
517
400
156
244
8
8
16
16
2021/22
Funding
9,204
928 Parking Equipment Res
182 Parking Account
- Parking Cont CBD A/c
8,094 Parking Account
60
- Dog Control Account
60 Dog Control Account
3,621
2,804
1,093 Rates
1,711 Rates
54
54 Rates
109
109 Rates
Total
Eight Year
100%
G
100%
L
100%
100%
100%
100%
100%
100%
100%
100%
R
Prospective Capital Plan continued
Napier City Council Annual Plan 2014/2015 69
13
TOTAL FUNDING
SUPPORT UNITS TOTAL 32,294
1,436 30,545
1,396
598
14
73
42
597
72
-
-
-
-
-
127
2015/16
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
36,792
1,656
576
Corporate IT Network
572
Technology Equipment Renewals
70
PC and Printer Replacement
70
13
40
668
Software Replacement and Upgrades
Replacement of Mobile Plant and Vehicle
Minor Capital General Provision
Support Units & General Provisions
-
-
-
-
-
182
2014/15
40
892
69
PROPERTY ASSETS TOTAL
4,283
SUPPORT UNITS
Land Development for growth
Art Centre Building (Old Council Chambers)
Civic Building
Lagoon Farm Business Park
Property Holdings
PROPERTY ASSETS
PLANNING AND REGULATORY TOTAL
Description
3,500
350
-
433
713
2013/14
30,599
1,783
618
14
75
43
959
74
-
-
-
-
-
130
2016/17
31,873
1,853
639
14
78
44
1,001
77
-
-
-
-
-
2,393
2017/18
26,619
2,215
662
15
81
46
1,332
79
-
-
-
-
-
140
2018/19
35,570
2,560
688
16
84
48
1,642
82
-
-
-
-
-
2,818
2019/20
28,151
2,010
715
16
87
50
1,056
86
-
-
-
-
-
152
2020/21
43,080
2,208
746
17
91
52
1,213
89
660
-
-
660
-
3,322
2021/22
Funding
258,731
15,461
5,242 TER Reserve
119 Rates
639 Rates
365 Rates
8,468 Plant Purch & Renewals
628 Rates
660
- Capital Projects Fund
- Capital Projects Fund
660 Capital Projects Fund
- Capital Projects Fund
9,264
Total
Eight Year
100%
G
100%
100%
100%
L
100%
100%
100%
100%
100%
100%
R
Prospective Capital Plan continued
67
68
-
Financial Contributions
3,831
Plant Purchase & Renewals A/c
Regional Landfill Income A/c
Technology Equipment Renewal Reserve
892
397
572
Advanced Wastewater T/ment Fund
Vested Assets
1,919
2,497 32,294
2,548
-
3,051
-
1,460
576
344
668
210
102
30,545
2,945
-
1,690
-
1,539
598
902
597
-
106
-
21
-
-
-
164
5,842
1,414
2,009
-
12,718
2015/16
Note: % improvement split: G – Growth, L – Increased Level of Service, R – Renewels
36,792 Total
Stormwater Catchments Upgrade
Capital Reserve
2,071
545
TNZ Subsidy
Pensioner Housing Upgrade Res
210
1,426
Parking Equipment Reserve A/c
101
-
20
Parking Account
Parking Contributions CBD A/c
60
-
-
476
6,920
2,341
1,017
431
12,070
2014/15
Dog Control Account
Endowment Land Account
Capital Projects Fund
541
20
51
500
5,943
HB HB Endowment Land Income
Loans - Rates
2,369
157
Loans - Growth
Loan HBHB Endowment Land Income
Rates
FUNDING
Description
805
-
11,945
2013/14
30,599
3,008
-
1,419
-
1,611
618
393
959
-
109
-
21
-
-
-
170
8,977
-
-
-
13,314
2016/17
31,873
3,358
-
-
-
1,689
639
369
1,001
-
113
-
2,280
-
-
-
288
8,178
-
-
-
13,958
2017/18
-
26,619
3,480
-
-
-
1,773
662
1,049
1,332
35,570
3,612
-
-
-
1,865
688
663
1,642
-
122
-
117
2,696
-
-
-
-
189
4,299
214
4,163
-
15,417
2019/20
23
-
-
-
182
3,137
206
-
-
14,658
2018/19
28,151
3,759
-
-
-
1,967
715
498
1,056
-
127
-
25
-
-
-
196
3,388
159
-
-
16,261
2020/21
43,080
3,922
-
-
-
2,080
746
376
1,213
-
132
-
3,190
-
-
660
205
3,535
9,226
-
-
17,795
2021/22
258,731
26,632
-
6,160
-
13,984
5,242
4,594
8,468
210
928
-
8,276
60
-
660
1,870
44,276
13,560
7,189
431
116,191
Total
Eight Year Funding
G
L
R
Prospective Capital Plan continued
Napier City Council Annual Plan 2014/2015
Funding Impact Statement (Whole of Council) Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
32,783 General rates, uniform annual general charges, rates penalties
34,211
34,624
33,995
13,156 Targeted rates (other than water by meter charges)
12,869
14,222
12,140
2,345
2,646
2,394
18,894
20,070
18,998
Sources of operating funding
4,098 Subsidies and grants for operating purposes 16,987 Fees, charges and targeted rates for water supply
1,502
722
1,502
13,520 Local authorities fuel tax, fines, infringement fees, and other receipts
3,494 Interest and dividends from investments
13,305
20,644
19,400
84,039 Total operating funding (A)
83,126
92,929
88,429
59,514
65,046
61,445
-
-
141
185
175
178
57,253 Total applications of operating funding (B)
59,699
65,221
61,764
26,786 Surplus/(deficit) of operating funding (A - B)
23,427
27,708
26,665
3,684 Subsidies and grants for capital expenditure
1,448
1,523
2,395
1,616 Development and financial contributions
1,985
2,308
1,879
1,894
2,267
1,039
177
212
6,784
-
-
-
5,503
6,310
12,098
Applications of operating funding 56,769 Payments to staff and suppliers 255 Finance costs 230 Other operating funding applications
Sources of capital funding
(2,008) Increase/(decrease) in debt 1,707 Gross proceeds from sale of assets - Lump sum contributions 4,999 Total sources of capital funding (C) Application of capital funding Capital expenditure 1,920 - to meet additional demand 14,373 - to improve the level of service 11,801 - to replace existing assets 3,691 Increase/(decrease) in reserves - Increase/(decrease) of investments 31,785 Total application of capital funding (D) (26,786) Surplus/(deficit) of capital funding (C - D) - Funding balance ((A-B) + (C-D))
7,761
8,095
5,251
8,060
7,813
14,079
13,925
14,449
14,965
(816)
3,661
4,467
-
-
-
28,930
34,019
38,762
(23,427)
(27,708)
(26,665)
-
-
-
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act. The FIS is intended to make the sources and applications of Council funds more transparent manner than might be the case if only the usual GAAP financial statements were provided. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. It is therefore, by necessity, exempt from the GAAP requirements as it follows the prescribed format required under the Act. The FIS links the Council’s Revenue and Financing Policy, the annual setting of rates, fees, development contributions and annual borrowing requirements. The FIS sets out the revenue and financing mechanisms that will be used in each year along with an indicative level of rates, together with examples of the impact of rating proposals in year 1 of the LTP over a range of different categories of property and a range of different values.
Napier City Council Annual Plan 2014/2015
69
Funding Impact Statement continued Rating System The following describes in full the rating system to apply from 1 July 2014:
General Rate
Based on land value of all rating units.
Differentially applied. The differentials applying for 2014/15 are set in accordance with the Rating Policy to enable: - 67% of the total general rate together with the Uniform Annual General Charge to be collected from residential properties and 33% from non residential properties. - The recovery of the assessed actual costs of services supplied to rural properties, excluding those in the Bay View Differential Rating Area. -
The standardising of the rate for properties in the Bay View Differential Rating Area with those residential properties in Napier City, but adjusted to reflect assessed actual cost of services supplied to Bay View for roading, stormwater, and reserves activities.
The application of the same rate for miscellaneous non residential properties as for residential properties. Differentials City Residential
Group/Code
2014/15
1
100%
Commercial and Industrial
2
275.49%
Miscellaneous
3
100%
Ex-City Rural
4
59.70%
Other Rural
5
59.70%
Bay View
6
59.06%
The general rate, together with the Uniform Annual General Charge, recovers the balance of the rating requirement not recovered from the targeted rates outlined below, and apply to activities where the direct user benefit is recovered by way of separate fees and charges, and where all or the remainder of the activity benefits ratepayers indirectly or the community as a whole, and also where Council has determined that some direct user benefit should be met by the community as a whole in line with particular activity funding policies.
Uniform Annual General Charge
Council’s Uniform Annual General Charge is set at a level that enables all Targeted Rates that are set on a uniform basis as a fixed amount, excluding those related to Water Supply and Sewage Disposal, to recover about 20% of total rates.
The charge is applied to each separately used or inhabited part of a rating unit.
The Uniform Annual General Charge, together with the General Rate, recovers the balance of the rating requirement not recovered from the targeted rates.
Water Rates (apply to both City & Bay View water supply systems) Fire Protection Rate
A targeted rate based on Capital Value of properties connected to the systems.
Differentially applied, in recognition that the carrying capacity of water required in the reticulation system to protect commercial and industrial properties is greater than that required for residential properties. Differentials
%
Central Business District and Fringe Area
400%
Suburban Shopping Centres, Hotels and Motels and Industrial properties outside of the CBD
200%
Other properties connected to the water supply systems
100%
This rate recovers 13.24% of the net costs of the water supply systems before the deduction of water by meter income.
50% of the base rate applies for each property not connected but located within 100 metres of the systems.
70
Napier City Council Annual Plan 2014/2015
Funding Impact Statement continued Water Rate
A targeted rate of a fixed amount set on a uniform basis, applied to each separately used or inhabited part of a rating unit connected to the systems.
This rate recovers the balance of the total net cost of the water supply systems.
50% of the rate applies for each rating unit not connected but located within 100 metres of the systems.
Refuse Collection and Disposal Rate
A targeted rate of a fixed amount set on a uniform basis, applied to each separately used or inhabited part of a rating unit for which a rubbish collection service is available.
For units for which 2 or 3 rubbish collection services per week are available, the rate is 2 or 3 times the weekly charge respectively.
This rate recovers the net cost of the Solid Waste Activity, excluding costs related to litter control and the kerbside recycling collection service.
Kerbside Recycling Rate
A targeted rate of a fixed amount set on a uniform basis, applied to each separately used or inhabited part of a rating unit for which the kerbside recycling collection service is available.
The rate recovers the net cost of the kerbside recycling collection service.
Sewerage Rate
A targeted rate of a fixed amount set on a uniform basis, applied to each separately used or inhabited part of a rating unit connected to the City Sewerage System.
50% of the rate applies to each rating unit (excluding Bay View properties) not connected but located within 30 metres of the system.
For Bay View properties located within the Stage 1 Urban Drainage Area, 50% of the rate applies to each rating unit not connected but located within 30 metres of the system.
This rate recovers the net cost of the Wastewater Activity.
Bay View Sewerage Connection Rate The Bay View Sewerage Scheme involves reticulation and pipeline connection to the City Sewerage System. Prior to 1 November 2005 property owners could elect to connect either under a lump sum payment option, or by way of a targeted rate payable over 20 years.
A targeted rate of a fixed amount set on a uniform basis, applied to each separately used or inhabited part of a rating unit connected to the Bay View Sewerage Scheme, where the lump sum payment option was not elected.
The rate applies from 1 July following the date of connection for a maximum period of 20 years, or until such time as a lump sum payment for the cost of connection is made.
The category of rateable land for setting the targeted rate is defined as the provision of a service to those properties connected to the sewerage system, but have not paid the lump sum connection fee.
The liability for the targeted rate is calculated as a fixed amount per separately used or inhabited part of a rating unit based on the provision of a service by the Council, including any conditions that apply to the provision of the service.
The rate is used to recover loan servicing costs required to finance the cost of connection to the Bay View Sewerage Scheme for properties connecting under the targeted rate payment option.
Off Street Car Parking Rates Targeted rates based on land value. The following rates apply:
CBD Off Street Car Parking Rate
Differentially applied.
Relates to all properties in the Central Business District only (except for vacant properties, not contiguous with other separately rateable commercial properties occupied by the same ratepayer, which are used solely as a carpark) and reflects the parking dispensation status of those properties.
Napier City Council Annual Plan 2014/2015
71
Funding Impact Statement continued Differentials
%
Properties with full parking dispensation
100%
Properties with half parking dispensation
50%
Properties with no parking dispensation
NIL
The rate is used to provide additional off street car parking in the Central Business District.
Taradale Off Street Car Parking Rate
Uniformly applied.
Relates to properties in the Taradale Suburban Commercial area only.
The rate is used to provide additional off street car parking in the Taradale Suburban Commercial area.
Suburban Shopping Centre Off Street Car Parking Rate
Uniformly applied.
Relates to properties in suburban shopping centres and to commercial properties located in residential areas which are served by Council supplied off street car parking.
The rate is used to provide additional off street car parking at each of these areas served by Council supplied off street car parking, and to maintain the existing off street car parking areas.
Ahuriri Beautification Rate
Targeted rate based on land value.
Uniformly applied.
Applies to commercial rating units located at the Ahuriri Shopping Centre.
The rate is used to recover loan servicing costs on loans raised to meet the Ahuriri Commercial ratepayers share of beautification carried out at the Ahuriri Shopping Centre.
CBD Promotion Rate
Targeted rate based on land value.
Uniformly applied.
Applies to each commercial and industrial rating unit situated within the area bounded by the Marine Parade/Tennyson Street intersection, along Tennyson Street to Herschell Street to Browning Street to Cathedral Lane to the Cathedral Lane/Tennyson Street intersection, then west along Tennyson Street to the intersection with Milton Road and including properties on the northern side of Tennyson Street, then along Clive Square West to Dickens Street, then from Dickens Street to Dalton Street and including properties on the southern side of Dickens Street, from Dalton Street to Station Street, Station Street to Hastings Street, Hastings Street to Faulknor Lane, Faulknor Lane to Marine Parade, and north along Marine Parade to the intersection with Tennyson Street.
This rate recovers at least 70% of the cost of the promotional activities run by Napier Inner City Marketing. The remainder is met from non targeted rates to reflect the wider community benefit of promoting the CBD to realise its full economic potential.
Taradale Promotion Rate
Targeted rate based on land value.
Uniformly applied.
Applies to all rating units in the Taradale Suburban Commercial area.
This rate recovers the full cost of the Taradale Marketing Association’s promotional activities.
Water by Meter Charges
Targeted rate based on actual water use after the first 300m3 per annum.
Applies to all non domestic water supplies in the Napier Water Supply Area, and metered domestic supplies outside the Napier Water Supply Area.
72
Napier City Council Annual Plan 2014/2015
Funding Impact Statement continued Targeted Rates Note: For the purposes of Schedule 10, clause 15(4)(e) or clause 20(4)(e) of the Local Government Act 2002, lump sum contributions will not be invited in respect of targeted rates, unless this is provided within the description of a particular targeted rate.
Separately Used or Inhabited Parts of a Rating Unit Definition For the purposes of the Uniform Annual General Charge and Targeted Rates outlined above, a separately used or inhabited part of a rating unit is defined as:
Any part of a rating unit that is, or is able to be, separately used or inhabited by the owner or by any other person or body having the right to use or inhabit that part by virtue of a tenancy, lease, licence or other agreement.
Examples of separately used or inhabited parts of a rating unit include:
For residential rating units, each self contained area is considered a separately used or inhabited part, unless used solely as a single family residence. Each situation is assessed on its merits, but factors considered in determining whether an area is self contained would include the provision of independent facilities such as cooking / kitchen or bathroom, and its own separate entrance.
Residential properties, where a separate area is used for the purpose of operating a business, such as a medical or dental practice. The business area is considered a separately used or inhabited part.
For commercial or industrial properties, two or more different businesses operating from or making separate use of the different parts of the rating unit. Each separate business is considered a separately used or inhabited part. A degree of common area would not necessarily negate the separate parts.
These examples are not inclusive of all situations.
Description of Differential Categories GROUP 1: City Residential Properties Every separately assessed property used exclusively as a home or residence of one or more households, and also including all vacant utilisable residential land, but excluding properties classified under Diff Groups 5 and 6, formerly within Hawke’s Bay County but which became part of Napier City with effect from 1 November 1989 following Local Government Reform.
Code 1.1.1
Improved Residential Properties – Single Unit
1.1.2
Improved Residential Properties – Multi Unit
1.2.1
Vacant Utilisable Residential Land
GROUP 2: Commercial and Industrial Properties Every separately assessed commercial and industrial property in accordance with the subgroups listed below, but excluding properties classified under Diff Groups 5 and 6, formerly within the Hawke’s Bay County but which became part of Napier City with effect from 1 November 1989 following Local Government Reform.
Sub Group 2.1: Central Business District Every separately assessed commercial and industrial property situated within the area bounded by the base of the Hill, from Marine Parade to Milton Road, south along Clive Square East and south along Munro Street to Edwardes Street south along Hastings Street, east along Sale Street, and north along Marine Parade.
Code 2.1.1
Properties Receiving 100% Parking Dispensation
Every separately assessed commercial property in the commercial retail zone bounded by the corner of Clive Square East and Emerson Street, south to Dickens Street excluding Lot 1 DP 18592 then along Dickens Street east at the rear of the sites on the southern side including Pt Lot 14 DP 2015, then south at Dalton Street, then east along Station Street, excluding the corner site on Station Street (being Lot 1 DP 11954) across to Albion Street to the Marine Parade, then north along Marine Parade to Emerson Street, then north along the rear of Pt Town Sec 173, Lot 1 DP 4833, Pt Town Sec 173, then east to include the site on the corner of Tennyson Street and Herschell Street being Pt Town Sec 172 as well as the site opposite being Lot 1 DP 19183, then continuing north along the rear of properties that front Hastings Street across Browning Street to include the property
Napier City Council Annual Plan 2014/2015
73
Funding Impact Statement continued on the corner of Browning Street and Shakespeare Road, then across Shakespeare Road to include the corner of the property on the western corner of Shakespeare Road and Browning Street, then south down Hastings Street ,excluding the Cathedral, along the rear of properties down Hastings Street, then west along the rear of the properties fronting Tennyson Street to Dalton Street then across Tennyson Street south to include the property on the corner of Tennyson Street and Dalton Street (Public Trust), and Pt Town Sec 162, Pt Town Sec 162, Lot 2 DP 6176 west along the rear of properties fronting Emerson Street to Clive Square East. 2.1.2
Properties Receiving 50% Parking Dispensation
Every separately assessed commercial property in part of the Commercial Fringe Retail Zone bounded by the corner of Dickens and Munro Streets, south down Munro Street, east along Edwardes Street, south along Hastings Street, east along Sale Street, north along Marine Parade, west along Albion Street, south west along the rear of the property on the corner of Station Street, and Hastings Street, excluding the next three sites fronting Station Street to the corner at Dalton Street, north along Dalton Street, then west along the rear of the properties fronting Station Street. 2.1.3
Properties Receiving 0% Parking Dispensation
Every separately assessed commercial and industrial property situated within Sub Group 1, excluding the properties in differential codes 2.1.1 and 2.1.2 above.
Sub Group 2.2: Central Business District Fringe Area Every separately assessed commercial and industrial property situated within the area bounded by the base of the Hill, from Marine Parade to Faraday Street, south along Faraday Street to Thackeray Street, east along Thackeray Street to Wellesley Road, south along Wellesley Road to Sale Street and east along Sale Street to the Marine Parade, excluding the properties included in Sub Group 2.1 above, and also includes every separately assessed industrial property fronting the remainder of Owen Street and Faulknor Street and every separately assessed industrial property positioned immediately south of Sale Street and fronting Wellesley Road.
Code 2.2.1
Improved Fringe Commercial
2.2.2
Unimproved Fringe Commercial
2.2.3
Improved Fringe Industrial
2.2.4
Unimproved Fringe Industrial
Sub Group 2.3: Taradale Every separately assessed commercial property situated in the suburban shopping centre of Taradale which is zoned for commercial purposes.
Code 2.3.1
Taradale Suburban Commercial Properties south of Puketapu Road
2.3.2
Taradale Suburban Commercial – others not covered in 2.3.1 or 2.3.3
2.3.3
Taradale Suburban Commercial – properties owned by JH McDonald Holdings Ltd
Sub Group 2.4: Other Suburban Shopping Centres Every separately assessed commercial property situated in the following suburban shopping centres in Napier, which centres are zoned Commercial A, Special Commercial or Industrial; Greenmeadows, Trinity Crescent, Pirimai Plaza, Onekawa, Maraenui, Marewa, Wycliffe Street, League Park, Balmoral, Port Ahuriri, Westshore, Tamatea and Marewa (Latham Street).
Code 2.4.1
Suburban Commercial – privately owned
2.4.2
Suburban Commercial – no off street car parking provided
2.4.3 Suburban Commercial – served by Council supplied off street car parking except Marewa Shopping Centre, Onekawa Shopping Centre and Ahuriri Shopping Centre 2.4.4
Suburban Commercial – Marewa Shopping Centre
2.4.5
Suburban Commercial – Onekawa Shopping Centre
2.4.6
Suburban Commercial – Ahuriri Shopping Centre
74
Napier City Council Annual Plan 2014/2015
Funding Impact Statement continued Sub Group 2.5: Commercial Properties in Residential Areas All other commercial properties, including retail shops, professional offices, doctors surgeries, dental surgeries, veterinary clinics, garages, service stations and the like, not included in Sub Groups 2.1, 2.2, 2.3 and 2.4.
Code 2.5.1
Shops and Commercial Properties in Residential Areas – other than in 2.5.2
2.5.2
Shops and Commercial Properties in Residential Areas – served by Council supplied off street car parking
Sub Group 2.6: Industrial – Outer City Areas Properties used for industrial purposes and not included in Sub Groups 2.1 and 2.2.
Code 2.6.1
Improved Outer Industrial
2.6.2
Unimproved Outer Industrial
Sub Group 2.7: Hotels and Motels – Outer City Areas Hotels and Motels situated in residential and industrially zoned areas and not included in Sub Groups 2.1 and 2.2.
Code 2.7.1
Hotels and Motels in Residential and Industrial zoned areas
GROUP 3: Miscellaneous Properties Every separately assessed property in accordance with the sub groups listed below used exclusively for the purposes indicated but excluding properties classified under Diff Groups 5 and 6, formerly within the Hawke’s Bay County but which became part of Napier City with effect from 1 November 1989 following Local Government Reform.
Sub Group 3.1: Vacant Substandard Sections Every separately assessed vacant residential property which, because of its zone or location, cannot be utilised for residential purposes.
Code 3.1.1
Vacant Substandard Sections
Sub Group 3.2: Other Miscellaneous Rateable Properties Every separately assessed rateable property used exclusively for the following purposes:
Code 3.2.1
Lodge Rooms, Halls and the like in Residential Areas
3.2.2
Land Occupied and/or Used for Churches and Private Schools
3.2.3
Homes for the Elderly, Private Hospitals, etc
3.2.4
Public Schools, Kindergartens and Playcentres
3.2.5
Miscellaneous Crown Properties
3.2.6
Public Utilities (not Council)
3.2.7
Pensioner Flats and Housing for the Aged
3.2.8
Sports Clubs previously eligible for rates remission under Section 179 of the Rating Powers Act 1988
3.2.9 Non Profit Making Organisations, excluding Sports Clubs, previously eligible for rates remission under Section 179 of the Rating Powers Act 1988 3.3.8
Council Properties (other than leased)
Sub Group 3.3: Miscellaneous Non Rateable Properties Every separately non rateable property used exclusively for the following purposes:
Code 3.3.1
Land Occupied and/or Used for Churches and Private Schools
Napier City Council Annual Plan 2014/2015
75
Funding Impact Statement continued 3.3.2
Homes for the Elderly, Private Hospitals, etc
3.3.3
Public Schools, Kindergartens and Playcentres
3.3.4
Miscellaneous Crown Properties
3.3.5
Public Utilities (not Council)
3.3.6
Sports Clubs and Other Non Profit Making Organisations previously eligible for rates remission under Section 179 of the Rating Powers Act 1988
3.3.7
Council Properties (used for purposes outlined in subsection 4 of part 1 of schedule 1 of Local Government (Rating) Act 2002)
GROUP 4: Ex-City Rural Areas Every separately assessed rural property, which is situated in an area not provided with normal city services, and which is not capable of development because of the lack of city services, but excluding all properties formally within the Hawke’s Bay County but which became part of Napier City with effect from 1 November 1989 following Local Government Reform.
Code 4.1.1
Ex-City Rural Properties
GROUP 5: Other Rural Areas Every separately assessed property, formerly within the Hawke’s Bay County, but which became part of Napier City with effect from 1 November 1989 following Local Government Reform, except for those properties included in Group 6, or any subdivided property since reclassified to other Differential Groups.
Code 5.1.1
Other Rural Properties (not included under 5.1.2)
5.1.2 Other Rural Properties (under 1500m2) for which Special Rateable Values (SRV) for ‘Existing use’ applied under Section 26 of the Rating Valuations Act 1998, prior to 1 July 2003.
GROUP 6: Bay View Differential Rating Area Every separately assessed property falling within the Bay View Differential Rating Area as defined in the following three schedules:
Schedule 1 All of those properties in the Bay View Township contained in the area west of State Highway 2, Main North Road, and on the north side of and fronting onto Hill Road from Terrace Road up to and including number 36 Hill Road to and along the rear boundaries of 25 Hill Road and the Bay View Hotel to Petane Road and along the rear boundary of number 23 Petane Road and adjacent properties to 38 Grey Street and including 6 Sheehan Street, then along the south eastern side of Sheehan Street and the eastern side of Buchanan Street to and along the northern side of Villers Street to Grey Street, then 40.23m along the south western boundary of Lot 2 DP 17781 and then easterly along the alignments of the rear boundaries of numbers 3 and 1 Villers Street to State Highway 2, Main North Road.
Schedule 2 All of those properties contained in the area north of 66 Ferguson Street south on the eastern side of State Highway 2, Main North Road, up to number 500 Main North Road and across the State Highway and along the rear boundaries of numbers 511 to 535 Main North Road, then back across the State Highway to Rogers Road and along the eastern side of the Petane Stream continuing along the rear boundaries of numbers 15 to 31 Rogers Road and along Rogers Road to and along the rear boundary of numbers 65 to 117 Rogers Road in the north and then to Rogers Road and southerly along its eastern side to number 72 Rogers Road, then along the rear boundaries of numbers 72 to 22 Rogers Road, then easterly across the Railway line to and along the northern boundary of Pt Lot 1 DP 7911 to the coast, then southerly along the coastal boundary to 66 Ferguson Street south.
Schedule 3 All of those properties in the vicinity of Le Quesne Road contained in the area north of Franklin Road including numbers 49 to 64 Franklin Road and those properties east of the Railway line up to Thurley Place, then northerly along the alignment of the rear boundaries of the properties extending from 15 Thurley Place up to 86 Le Quesne Road including the access legs to Pt Lot 5 and Pt Lot 7 DP 11888, then easterly across the boundaries of 86 and 87 Le Quesne Road, then southerly along the eastern side of Le Quesne Road to Franklin Road.
76
Napier City Council Annual Plan 2014/2015
Funding Impact Statement continued Code 6.1.1
Bay View Residential Properties
6.1.2
Bay View Non Residential Properties
Other Rating Issues Instalment Rating Rates for 2014/15 are set and assessed effective from Instalment 1 and are due and payable in four equal instalments as follows: First Instalment due 20 August 2014 Second Instalment due 19 November 2014 Third Instalment due 25 February 2015 Fourth Instalment due 20 May 2015
Penalties In accordance with sections 57 and 58 of the Local Government (Rating) Act 2002, a penalty of 10 per cent is added to each instalment or part thereof which is unpaid 2 full working days after the due date for payment. Previous years rates which remain unpaid will have a further 10 per cent added 2 full working days after the due date for instalments one and three.
Fees and Charges Council applies a range of fees and charges to fully or partially recover the costs of various activities. The level of fees and charges are reviewed annually and a schedule of Council Fees and Charges is prepared as a separate document. The schedule is available upon request from the Council office.
Napier City Council Annual Plan 2014/2015
77
Funding Impact Statement continued Indicative Rates Indicative Rates 2014/15 (incl GST)
Rates (incl. GST)
Rates and Charges (incl GST) General Rate (cents per $ LV) Diff 1
City Residential
0.57686
Diff 2
Commercial and Industrial
1.58919
Diff 3
Miscellaneous
0.57686
Diff 4
Ex-City Rural
0.34439
Diff 5
Other Rural
0.34439
Diff 6
Bay View
0.34069
Uniform Annual General Charge (UAGC)
$330.00
Targeted Rates Fire Protection Rate (cents per $ CV) Diff 1, 2.5, 3, 4, 5, 6
0.00601
Diff 2.1, 2.2
0.02404
Diff 2.3, 2.4, 2.6, 2.7
0.01202
Water Rate - City
$147.00
Water Rate - Bay View
$147.00
Refuse Collection & Disposal Rate 1 collection per week
$61.00
2 collections per week
$122.00
3 collections per week
$183.00
Kerbside Recycling Rate
$17.00
Sewerage Rate
$317.00
Bay View Sewerage Connection Rate
$941.36
Off Street Car Parking Rate (cents per $ LV) Diff 2.1.1
0.14690
Diff 2.1.2
0.07345
Diff 2.3.2, 2.4.3, 2.4.4, 2.4.5, 2.5.2
0.11045
Suburban Beautification Rate - Ahuriri (cents per $ LV)
0.25873
Promotion Rate - CBD (cents per $ LV)
0.19665
Promotion Rate - Taradale (cents per $ LV)
0.14221
Water By Meter Charges Non Domestic Supplies ($/m3)
0.40123
Metered Domestic Supplies outside Napier Water Supply Area ($/m3)
0.74450
Note: For Council properties under differential codes 3.3.8 and 3.3.7, a nil rate will apply. The indicative rates and charges are provisional only, and are subject to Council setting and assessing its rates during July 2014.
78
Napier City Council Annual Plan 2014/2015
%
Napier City Council Annual Plan 2014/2015
325.00
298.00
0.14221
Promotion Levy - Taradale
45.12
3.12%
% Increase / -Decrease
1,489.42
0.00
0.00
0.00
0.00
317.00
Change in Rates
Total Proposed
0.11045
0.19665
Car Parking - Tdle / Suburban
Promotion Levy - CBD
0.14690
317.00
Car Parking - CBD
Sewerage Rate
17.00
17.00
61.00
61.00
Refuse Rate
Kerbside Recycling Rate
11.72
147.00
0.00601
147.00
Water Rate
Fire Protection Rate - CV
605.70
330.00
General Rate - LV
1,444.31
0.00
0.00
0.00
0.00
298.00
Uniform Annual Gen Charge
Proposed Rates 2014/15
330.00
0.14139
Promotion Levy - Taradale
Total Actual
0.11045
0.19533
Car Parking - Tdle / Suburban
Promotion Levy - CBD
0.14690
Car Parking - CBD
Sewerage Rate
60.00
16.00
60.00
16.00
Refuse Rate
Kerbside Recycling Rate
11.19
141.00
0.00574
141.00
Water Rate
Fire Protection Rate - CV
593.11
325.00
General Rate - LV
1
Uniform Annual Gen Charge
Rates 2013/14
Number of Charges
0.56487
0.57686
- 2013/14 - Actual
- 2014/15 - Proposed
General Rate (cents per $ LV)
$150,000
$105,000
$195,000
Previous Land Value
Previous Capital Value
79
2.98%
50.83
1,756.16
0.00
0.00
0.00
0.00
317.00
17.00
61.00
147.00
18.87
330.00
865.29
1,705.33
0.00
0.00
0.00
0.00
298.00
16.00
60.00
141.00
18.02
325.00
847.31
1
0.57686
0.56487
$314,000
0%
$314,000
$150,000
Average
2.92%
54.29
1,910.65
0.00
0.00
0.00
0.00
317.00
17.00
61.00
147.00
29.15
330.00
1,009.51
1,856.36
0.00
0.00
0.00
0.00
298.00
16.00
60.00
141.00
27.84
325.00
988.52
1
0.57686
0.56487
$485,000
$175,000
0%
$485,000
$175,000
80%
City Residential
0%
LV Increase
$105,000
$195,000
Land Value (2011 Values)
20%
Capital Value (2011 Values)
Property Category
3.49%
346.77
10,282.99
0.00
0.00
0.00
0.00
3,170.00
0.00
610.00
1,470.00
31.25
3,300.00
1,701.74
9,936.21
0.00
0.00
0.00
0.00
2,980.00
0.00
600.00
1,410.00
29.85
3,250.00
1,666.37
10
0.57686
0.56487
$520,000
$295,000
0%
$520,000
$295,000
Multi-Unit
-1.77%
-143.97
8,000.02
0.00
688.28
0.00
514.15
317.00
0.00
183.00
147.00
258.43
330.00
5,562.17
8,143.99
0.00
683.66
0.00
514.15
298.00
0.00
180.00
141.00
246.82
325.00
5,755.37
1
1.58919
1.64439
$1,075,000
$350,000
0%
$1,075,000
$350,000
Retail
CBD
Examples of the Impact of Rating Proposals for 2014/2015
$265,000
-2.97%
-708.02
-1.99%
-111.26
5,487.36
0.00
0.00
23,151.10
0.00
292.69
0.00
317.00
0.00
122.00
147.00
67.31
330.00
4,211.35
5,598.61
0.00
0.00
292.69
0.00
298.00
0.00
120.00
141.00
64.29
325.00
4,357.63
1
1.58919
1.64439
$560,000
$265,000
0%
$560,000
0.00
0.00
0.00
317.00
0.00
61.00
147.00
444.74
330.00
21,851.36
23,859.12
0.00
0.00
0.00
0.00
298.00
0.00
60.00
141.00
424.76
325.00
22,610.36
1
1.58919
1.64439
$1,850,000
$1,375,000
0%
$1,850,000
Retail
Suburban
Commercial / Industrial
$1,375,000
Fringe
CBD
0.00
0.00
0.00
0.00
-2.83%
-425.03
14,617.64
0.00
0.00
0.00
0.00
317.00
0.00
-3.10%
-541.80
16,936.20
0.00
0.00
0.00
0.00
317.00
0.00
0.00
0.00
315.53 147.00
330.00
16,289.20
17,478.00
0.00
0.00
0.91%
18.00
1,996.06
0.00
0.00
0.00
0.00
0.00
17.00
61.00
147.00
46.28
330.00
1,394.78
1,978.06
0.00
0.00
0.00
0.00
298.00 0.00
16.00
60.00
141.00
44.20
325.00
1,391.86
1
0.51%
10.49
2,078.29
0.00
0.00
0.00
0.00
0.00
17.00
61.00
0.00
0.00
330.00
1,670.29
2,067.80
0.00
0.00
0.00
0.00
0.00
16.00
60.00
0.00
0.00
325.00
1,666.80
1
0.34367 0.34439
0.34367
$1,025,000
$485,000
0%
$1,025,000
$485,000
Diff 511
Rural
0.34439
$770,000
$405,000
0%
$770,000
$405,000
Diff 4
0.00
0.00
0.00
0.00
325.00
16,855.00
1
1.58919
1.64439
$2,750,000
$1,025,000
0%
$2,750,000
$1,025,000
Awatoto
Industriial
330.00
13,508.12
15,042.67
0.00
0.00
0.00
0.00
298.00
0.00
0.00
141.00
301.35
325.00
13,977.32
1
1.58919
1.64439
$2,625,000
$850,000
0%
$2,625,000
$850,000
Onekawa
Industrial
0.78%
8.44
1,096.78
0.00
0.00
0.00
0.00
0.00
17.00
61.00
0.00
0.00
330.00
688.78
1,088.34
0.00
0.00
0.00
0.00
0.00
16.00
60.00
0.00
0.00
325.00
687.34
1
0.34439
0.34367
$430,000
$200,000
0%
$430,000
$200,000
Diff 512
2.50%
33.26
1,362.68
0.00
0.00
0.00
0.00
317.00
17.00
61.00
147.00
27.35
330.00
463.34
1,329.43
0.00
0.00
0.00
0.00
298.00
16.00
60.00
141.00
26.12
325.00
463.31
1
0.34069
0.34067
$455,000
$136,000
0%
$455,000
$136,000
Township
2.19%
33.09
1,542.69
0.00
0.00
0.00
0.00
317.00
17.00
61.00
147.00
23.38
330.00
647.31
1,509.60
0.00
0.00
0.00
0.00
298.00
16.00
60.00
141.00
22.33
325.00
647.27
1
0.34069
0.34067
$389,000
$190,000
0%
$389,000
$190,000
Average
Bay View
0.99%
14.48
1,472.65
0.00
0.00
0.00
0.00
0.00
17.00
61.00
147.00
31.85
330.00
885.79
1,458.16
0.00
0.00
0.00
0.00
0.00
16.00
60.00
141.00
30.42
325.00
885.74
1
0.34069
0.34067
$530,000
$260,000
0%
$530,000
$260,000
Front
Beach
Funding Impact Statement continued
Activity Groups
Democracy and Governance Scope The Democracy and Governance Group comprises
Democracy and Governance
Mayor and six Councillors elected by the City as a whole
Ahuriri Ward – 1 Councillor
Onekawa-Tamatea Ward – 1 Councillor
Nelson Park Ward – 2 Councillors
Taradale Ward – 2 Councillors
Through Democracy and Governance, Council provides a democratic and consultative system for decision making. The Council, consisting of a Mayor and twelve Councillors, is elected three yearly. Through its structure of Committees, Subcommittees, Working Parties and Forums, Council carries out the requirements of the Local Government Act 2002 and other related legislation.
Key Issues Napier City Council is currently an “affected” Council within a reorganisation proposal under consideration by the Local Government Commission. The current draft Reorganisation Proposal would see the present Napier City Council be replaced by a Community Board, as part of a unitary authority called Hawke’s Bay Council. Elections for the Hawke’s Bay Council and Community Boards would take place in October 2015.
Local Government Act Amendments Changes to the Local Government Act 2002 during the past year have been incorporated into this Annual Plan as required. This includes the legislated change to the Purpose of Local Government. Performance measures mandated by the Act will impact the next Ten Year Plan 2015 - 2025. Council is currently reviewing policies and procedures to enable efficient and effective implementation of the required changes.
Performance Measures Levels of Service
Measures
Council holds regular Council and
Number of Council Meeting cycles.
Council Committee meetings that are
All significant issues as defined by the
accessible and notified to the local
Policy on Significance are subject to public
community.
consultation
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
7 cycles
7 cycles
7 cycles
Report on all
Report on all
Report on all
consultation carried
consultation carried
consultation carried
out
out
out
80%
80%
80%
Community Perceptions Percentage of residents satisfied with the ‘Sufficiency of Public Information’ in the NRB Public Opinion Survey.
82
Napier City Council Annual Plan 2014/2015
Democracy and Governance continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
Sources of operating funding 1,799 General rates, uniform annual general charges, rates penalties
2,289
2,232
2,122
- Targeted rates (other than water by meter charges)
-
-
-
- Subsidies and grants for operating purposes
-
-
-
- Fees charges and targeted rates for water supply
-
-
-
- Internal charges and overhead recoveries
-
-
-
- Local authorities fuel tax, fines, infringement fees, and other receipts
-
-
-
2,289
2,232
2,122
- Payments to staff and suppliers
-
-
-
- Finance costs
-
-
-
2,289
2,232
2,122
1,799 Total operating funding (A) Applications of operating funding
1,799 Internal charges and overhead applied - Other operating funding applications
-
-
-
2,289
2,232
2,122
-
-
-
- Subsidies and grants for capital expenditure
-
-
-
- Development and financial contributions
-
-
-
- Increase (decrease) in debt
-
-
-
- Gross proceeds from sale of assets
-
-
-
- Lump sum contributions
-
-
-
- Total sources of capital funding (C)
-
-
-
- - to meet additional demand
-
-
-
- - to improve the level of service
-
-
-
- - to replace existing assets
-
-
-
- Increase (decrease) in reserves
-
-
-
- Increase (decrease) of investments
-
-
-
- Total application of capital funding (D)
-
-
-
- Surplus (deficit) of capital funding (C - D)
-
-
-
- Funding balance ((A-B) + (C-D))
-
-
-
- Group depreciation and amortisation
-
-
-
1,799 Total applications of operating funding (B) - Surplus (deficit) of operating funding (A - B) Sources of capital funding
Application of capital funding Capital expenditure
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
Napier City Council Annual Plan 2014/2015
83
Roading Scope The Roading Group comprises:
363km of Roads (100% sealed)
306km Urban Standard Roads (approx. 10% not constructed to Council’s current urban standards)
57km Rural Roads (70% requiring widening to cope with current traffic volumes)
46.4km State Highways
5,441 sumps and manholes to be cleaned
480km of kerb and channel to be swept
The City’s road network provides accessibility to Napier residents and visitors within a safe, clean and aesthetic environment. The services cover the installation and maintenance of the physical components; carriageways, footpaths, steps, ramps, traffic and pedestrian bridges and structures, road and amenity lighting, drainage, traffic services and safety (e.g. street furniture, traffic lights, signage), as well as the planning, management and amenity and safety maintenance to ensure the system is clean, safe and able to cope with future needs.
Key Issues The plan is based around the assumption that there will not be any changes to New Zealand Transport Agency (NZTA) subsidies. The NZTA are currently reviewing their funding arrangements from 2015/16. If subsidies are reduced, Council will need to reevaluate priorities and assess the impact on rates. Growth, changing public perceptions and a desire for a better road environment are giving rise to a demand for environmental projects in the CBD and residential suburbs. A number of projects have been identified throughout the City as a result of various studies undertaken over the last few years. The Prospective Capital Plan includes the following roading projects implemented:
Roading Bulk Funded Non-Subsidised Council is currently bulk funding some of the $41.0M deferred capital works. For deferred capital works it is allocating expenditure of $1.9M plus inflation per annum from rates. In addition to bulk funding, major transportation projects are funded through financial contributions from developers aimed at mitigating the direct effect of new residential and commercial developments.
Roading Transportation Proposals Miscellaneous Transportation Deficiencies The Heretaunga Plains Transportation Study 2004 (for the period 2001 to 2026) identified $51.9M of transportation projects in the first 20 years of the plan. The Prospective Capital Plan includes funding for these works at an average of $2.4M per annum, funded from financial contributions. In the short to medium term Prebensen Drive requires four-laning. The extension of Ford Road onto the Severn Street roundabout is an integral part of this project as it enables the intersection of Austin Street and Prebensen Drive to be reduced to left in left out operation. Ford Road extension will commence in mid 2014 and is expected to be completed by early 2015. Several intersections, particularly through Meeanee Road and Kennedy Road will require capacity improvements.
CBD Transportation and Environmental Improvements $12.4M of transportation and environmental projects is identified in the CBD area. Council’s Capital Plan has budgeted for only some of these projects to be undertaken. These include:
Hastings Street: Stage 1 of the redevelopment from Vautier Street to Albion Lane is now completed and Stage 2 from Albion Lane to Tennyson Street has been deferred to 2015 due to extensive building work in Hastings Street. Stage 3 covers Tennyson Street to Shakespeare Road. The Capital Plan includes $1.4M for the last year of the project. The redevelopment will add to the revitalisation of the CBD, and result in improved parking, while traffic calming measures will ensure a safer street environment.
Emerson Street: Within the next 10 years, Council will be undertaking a review of Emerson Street with a view to refurbishing this environment. Details will be defined in a concept plan which are yet to be prepared, and will look at the carriageway, kerb and channels, pavers and painting of hardware in the street.
84
Napier City Council Annual Plan 2014/2015
Roading continued Performance Measures Levels of Service
Measures
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Reduce by 4% on
Reduce by 4% on
Reduce by 4% on
previous year
previous year (110)
previous year (114)
Less than 100
Less than 100
Less than 100
NAASRA
NAASRA
NAASRA
Percentage of residents satisfied with Roads in the NRB Public Opinion Survey.
87%
87%
87%
Percentage of residents satisfied with Footpaths in the NRB Public Opinion Survey.
82%
82%
82%
$611
$665
$616
Council provides a transport system
Number of Injury crashes in Napier City.
Annual Plan Targets
that is safe and efficient and enables users to move around effectively.
Average roughness of sealed roads. (NAASRA – National Association of Australian State Road Authorities. Ratings: 70 considered smooth, 150 considered rough.)
Community Perceptions
Economic and Financial Performance Rating cost per rateable property
Napier City Council Annual Plan 2014/2015
85
Roading continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
10,426
11,708
10,350
162
163
162
1,762
1,979
1,721
Sources of operating funding 9,466 155 3,339 120 409 13,489
General rates, uniform annual general charges, rates penalties Targeted rates (other than water by meter charges) Subsidies and grants for operating purposes Fees charges and targeted rates for water supply Internal charges and overhead recoveries Local authorities fuel tax, fines, infringement fees, and other receipts Total operating funding (A)
20
40
38
247
851
763
403
385
385
13,020
15,126
13,419
6,848
7,667
6,680
-
-
-
1,207
1,746
1,326
Applications of operating funding 8,099 1,126 -
Payments to staff and suppliers Finance costs Internal charges and overhead applied
-
-
-
9,226
Other operating funding applications Total applications of operating funding (B)
8,055
9,413
8,006
4,264
Surplus (deficit) of operating funding (A - B)
4,965
5,713
5,412
Subsidies and grants for capital expenditure
1,448
1,523
1,426
Development and financial contributions
1,076
1,227
994
Increase (decrease) in debt
-
-
1,414
Gross proceeds from sale of assets
-
-
-
Lump sum contributions
-
-
-
2,524
2,750
3,834
2,131
Sources of capital funding 669 1,616 347 2,632
Total sources of capital funding (C) Application of capital funding Capital expenditure
19
- to meet additional demand
2,146
2,239
1,689
- to improve the level of service
1,914
1,997
2,481
5,008
- to replace existing assets
4,190
4,370
5,515
Increase (decrease) in reserves
(761)
(143)
(881)
-
-
-
7,489
8,463
9,246
(4,965)
(5,713)
(5,412)
-
-
-
7,433
8,170
7,388
-
8,859
-
181 6,896 (4,264) 7,305 -
Increase (decrease) of investments Total application of capital funding (D) Surplus (deficit) of capital funding (C - D) Funding balance ((A-B) + (C-D)) Group depreciation and amortisation Capital Items in progress consulted in prior years plans, not included in the Prospective Capital Plan
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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Napier City Council Annual Plan 2014/2015
Solid Waste Scope The Solid Waste Group comprises:
Domestic refuse collection
Kerbside recycling
Litter control
Redclyffe Transfer Station
Omarunui Landfill
Council provides a domestic refuse collection service for both residential and commercial properties within the City as follows:
Residential Properties – once per week
Commercial (Suburban Shops) – twice per week
Commercial (Central Business District) – three times per week
A kerbside recycling service for residential properties is provided fortnightly. Litter bins and drums are located throughout the City and serviced on a daily basis. Council’s Refuse Transfer Station at Redclyffe accepts most domestic, garden and building waste, and recyclables. Currently Napier disposes of approximately 17,000 tonnes of refuse annually at the landfill from the domestic collection, litter collection and the Transfer Station. The Omarunui Landfill is the final disposal point for waste generated by the combined populations of Hastings District and Napier City. It is jointly owned by both the Hastings District and Napier City Councils (63.68% and 36.32% ownership respectively) and is managed on a day to day basis by the Hastings District Council.
Key Issues Tonnages to landfill have increased and tonnages diverted from landfill have reached a plateau; the current diversion rate for solid waste for Napier City 2013/2014 year is 27%. To combat this trend other methods of solid waste disposal are being explored. Napier City Council is undertaking a joint study with Hastings District Council to consider various long term options for the disposal of solid waste. This is being undertaken now, and is to be completed for the 2015/25 Ten Year Plan; at which time a decision regarding the future of solid waste disposal will be made. Discussion on a Ten Year Plan is timely because if the preferred option is to develop the next valley (Valley C) at Omarunui Landfill, the work to prepare consent applications would have to begin shortly in 2016 in order for Valley C to be ready to receive waste by 2027. If the preferred option for solid waste disposal is to develop the next valley at Omarunui Landfill, a preliminary estimate of capital costs is approximately $15.0M for the first five years of development and a total capital cost of $50.0M over Valley C’s fifty year life (based on current rates of disposal). Napier City Council’s contribution to the capital costs would be in proportion to its ownership share of the landfill.
Napier City Council Annual Plan 2014/2015
87
Solid Waste continued Performance Measures Levels of Service
Measures
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Council provides a kerbside refuse
Weekly household kerbside waste collection
100%
100%
100%
collection service weekly to city
Transfer Station open for 362 days per year
100%
100%
100%
<306kgs
<306kgs
<306kg
Refuse Diversion Rate
31%
31%
31%
solid waste management decisions
Compliance with resource consent
100%
100%
100%
through education initiatives and a
parameters.
hazardous waste collection programme.
Education and waste reduction promotion
1,000 students per
1,000 students per
1,000 students per
annum
annum
annum
92%
92%
92%
87%
87%
87%
$207
$222
$218
residents to ensure city household waste is able to be removed from kerbside. In addition this activity provides a user pays facility at the Transfer Station for disposal of nonhousehold refuse. These services are provided to promote community health through the prevention and spread of disease. Council provides a kerbside recycling
Waste to Landfill per capita.
collection service fortnightly to reduce the quantity of waste to landfill. Council also actively promotes waste minimisation activities and responsible
Council also provides green waste and recycling facilities at the Redclyffe
programmes in place.
Transfer Station Community Perceptions Percentage of residents satisfied with Refuse Collection in the NRB Public Opinion Survey. Percentage of residents satisfied with Control of Litter, Graffiti, and Vandalism in the NRB Public Opinion Survey. Economic and Financial Performance Cost per rateable property.
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Napier City Council Annual Plan 2014/2015
Solid Waste continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
Sources of operating funding 424 1,809 166 1,337 -
General rates, uniform annual general charges, rates penalties Targeted rates (other than water by meter charges) Subsidies and grants for operating purposes Fees charges and targeted rates for water supply Internal charges and overhead recoveries
426
454
435
1,750
1,980
1,722
173
173
173
1,547
1,619
1,468
-
-
-
1,725
Local authorities fuel tax, fines, infringement fees, and other receipts
1,912
2,028
1,912
5,461
Total operating funding (A)
5,808
6,254
5,709
4,208
4,572
4,122
-
-
-
232
234
224
Applications of operating funding 4,015 211 -
Payments to staff and suppliers Finance costs Internal charges and overhead applied
-
-
-
4,226
Other operating funding applications Total applications of operating funding (B)
4,440
4,806
4,346
1,234
Surplus (deficit) of operating funding (A - B)
1,368
1,448
1,363
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
-
-
-
Total sources of capital funding (C)
-
-
-
-
10 10
Application of capital funding Capital expenditure -
- to meet additional demand
-
-
-
- to improve the level of service
-
-
-
464
- to replace existing assets
436
454
488
781
Increase (decrease) in reserves
932
994
875
-
-
-
1,368
1,448
1,363
(1,368)
(1,448)
(1,363)
-
-
-
774
792
733
1,245 (1,234) 707
Increase (decrease) of investments Total application of capital funding (D) Surplus (deficit) of capital funding (C - D) Funding balance ((A-B) + (C-D)) Group depreciation and amortisation
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
Napier City Council Annual Plan 2014/2015
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Stormwater Scope The Stormwater Group comprises:
226km Stormwater Mains
58km Open Drains
13 Pump Stations (Napier City Council and Hawke’s Bay Regional Council managed)
Council provides and maintains a stormwater disposal system for the 13 separate drainage areas or catchments in the City with the aim to minimise the effects of flooding. The system, serving approximately 97% of the City’s population, consists of open drains, stormwater mains and pump stations with about 75% of the City reliant on pumped systems for stormwater drainage.
Key Issues The plan provides for continued investment in the upgrading of the City stormwater catchments ($25.4M over the next eight years), which will be funded from a combination of rates and financial contributions. Ongoing upgrades and renewals of network and pump stations, to meet the demands of growth and development, will continue.
Napier CBD - Tennyson Street The first stage of this project has now been completed. A total of 195 meters of 2.0m diameter pipe has been laid from the cycleway between 2 pairs of Norfolk Pines, through the gardens and the seawall, across Marine Parade and down Tennyson Street stopping just short of Hastings Street. The next stage of the project includes the construction of the outfall and the associated viewing platform. These works are currently proposed to begin late this year. The extension of the new stormwater main from Albion Street to connect to the 2.0m pipe which has been laid in Tennyson Street is programmed to commence in 2015 in conjunction with the Hastings Street upgrade works. These works will provide for future stages of the pipeline to continue from the intersection further along Hastings Street towards Shakespeare Road, and down Tennyson Street towards Milton Road.
Georges Drive Pump Station The Georges Drive Pump Station is an important infrastructure asset. The pump station discharges water from the Plantation/ Georges Drive Drain under Kennedy Road, lifting it to a level that allows it to drain to the estuary. Works are underway for the replacement of one of the pump stations original pumps. The pump station was constructed in 1954, and the pumps installed at that time are now operating well below their original capacity and have ongoing maintenance issues. Strengthening of the pump station building will be undertaken in conjunction with these works in order to satisfy the appropriate structural requirements. The total cost of the project is projected to be $80k.
Taradale Stormwater Upgrade Council has recognised inadequacies of the stormwater infrastructure in the Taradale CBD and residential area highlighted by recent flooding issues. Provision has been made in the plan to carry out major stormwater upgrading works in the area. Planning works have begun for this project for which a staged approach for the construction will be employed over several years. The project will be funded from the Stormwater Catchments Upgrade Renewal Fund.
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Napier City Council Annual Plan 2014/2015
Stormwater continued Performance Measures Levels of Service
Measures
People, property, infrastructure and
Reported number of properties inundated
the environment are reasonably
during events smaller than a 1 in a 50 year
safeguarded from the adverse effects of
return period
surface water.
Percentage time total pumping capacity
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
0
0
0
97%
97%
97%
100%
100%
100%
87%
87%
87%
$1,447
$1,451
$1,336
available to prevent flooding. Council provides this service, which
Compliance with discharge consent
collects, conveys and disposes of
conditions
stormwater, with no significant adverse environmental effects to protect the environment and the health of the cityâ&#x20AC;&#x2122;s population. Community Perceptions Percentage of residents satisfied with Stormwater in the NRB Public Opinion Survey. Economic and Financial Performance Cost per hectare drained
Napier City Council Annual Plan 2014/2015
91
Stormwater continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
Sources of operating funding 2,538
3,041
3,115
2,933
-
General rates, uniform annual general charges, rates penalties Targeted rates (other than water by meter charges)
-
-
-
-
Subsidies and grants for operating purposes
-
-
-
-
Fees charges and targeted rates for water supply
-
-
-
51
226
160
55
Internal charges and overhead recoveries
57
Local authorities fuel tax, fines, infringement fees, and other receipts
2,650
Total operating funding (A)
61
65
61
3,153
3,406
3,154
1,102
1,121
1,012
-
-
-
796
903
767
Applications of operating funding 807 730 2
Payments to staff and suppliers Finance costs Internal charges and overhead applied
-
-
-
1,539
Other operating funding applications Total applications of operating funding (B)
1,898
2,024
1,779
1,111
Surplus (deficit) of operating funding (A - B)
1,255
1,382
1,376
Sources of capital funding -
Subsidies and grants for capital expenditure
273
Development and financial contributions
258
-
-
-
250
415
347
Increase (decrease) in debt
-
-
-
-
Gross proceeds from sale of assets
-
-
-
-
Lump sum contributions
-
-
-
250
415
347
531
Total sources of capital funding (C) Application of capital funding Capital expenditure
3 1,561 297 (219) 1,642 (1,111) 1,824
- to meet additional demand
1,626
1,697
-
- to improve the level of service
3,966
4,100
2,945
- to replace existing assets Increase (decrease) in reserves Increase (decrease) of investments Total application of capital funding (D) Surplus (deficit) of capital funding (C - D) Funding balance ((A-B) + (C-D)) Group depreciation and amortisation
458
477
649
(4,545)
(4,477)
(1,872)
-
-
-
1,505
1,797
1,722
(1,255)
(1,382)
(1,376)
-
-
-
2,060
2,120
1,906
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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Napier City Council Annual Plan 2014/2015
Sewage Scope The Sewerage Group comprises:
Wastewater
42 Pump Stations
367km Wastewater Mains
Milliscreen Plant (Awatoto)
1,607m Marine Outfall
93% of Napier’s population serviced by reticulation system
Council provides and maintains a safe domestic and industrial sewage collection, screening and disposal system to maintain the community’s health. Properties are currently being connected to Stage 1 of the Bay View system.
Key Issues Wastewater Marine Outfall Replacement A condition assessment of the outfall indicates there is severe corrosion on the pipe that conveys sewage to the drain downstream of the pressure manhole on the beach of the Awatoto Marine Outfall. Replacement of the outfall is necessary to ensure reliable operation and to provide capacity into the future. Provisionally $9.2M is provided in the Prospective Capital Plan and additional funding requirements will be determined once detailed costs have been prepared.
Completion of Wastewater Treatment Plant A major project included in the Ten Year Plan is the Biological Trickling Filter Wastewater Treatment Plant funded from the Advanced Wastewater Treatment Establishment Fund. Council committed to providing advanced sewage treatment following thorough investigations and a public consultation process which was initiated in 1993/94. There is no other single project with significant capital, operational and maintenance costs that has had a greater impact on Council’s finances over the past two decades. Construction of the new Biological Trickling Filter Plant is well underway. Several contracts have been tendered and awarded, and construction is on programme and scheduled to be completed in August 2014 .
Napier City Council Annual Plan 2014/2015
93
Sewage continued Performance Measures Levels of Service
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Zero
Zero
Zero
Blockage resulting in overflow
Zero
Zero
Zero
Compliance with requirements of resource
100%
100%
100%
Zero
Zero
Zero
90%
90%
90%
Measures
Provide and maintain the city sewerage
Number of reticulated properties that are
system to ensure public health and the
unable to dispose of wastewater, due to
environment are safeguarded.
stormwater infiltration, for longer than 6 hours.
consents for quality and volume. Ensure the sewerage system is effective
Number of complaints relating to odour
and reliable. Community Perceptions Percentage of residents satisfied with Wastewater in the NRB Public Opinion Survey. Economic and Financial Performance Cost per m3 of wastewater Cost per km of wastewater mains Cost per rateable property
94
$0.84
$0.90
$0.76
$20,705
$22,470
$18,892
$305
$326
$276
Napier City Council Annual Plan 2014/2015
Sewage continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
Sources of operating funding 7,406 407
General rates, uniform annual general charges, rates penalties Targeted rates (other than water by meter charges) Subsidies and grants for operating purposes Fees charges and targeted rates for water supply
-
Internal charges and overhead recoveries
3
Local authorities fuel tax, fines, infringement fees, and other receipts
7,816
Total operating funding (A)
-
-
-
6,951
7,840
6,444
-
-
-
547
457
432
26
84
80
-
-
-
7,524
8,381
6,956
2,299
2,336
2,260
-
-
-
1,008
1,358
996
Applications of operating funding 2,085 948 -
Payments to staff and suppliers Finance costs Internal charges and overhead applied
-
-
-
3,033
Other operating funding applications Total applications of operating funding (B)
3,307
3,694
3,256
4,783
Surplus (deficit) of operating funding (A - B)
4,218
4,687
3,700
Sources of capital funding -
Subsidies and grants for capital expenditure
124
Development and financial contributions
490
-
-
-
113
104
83
Increase (decrease) in debt
-
-
657
-
Gross proceeds from sale of assets
-
-
-
-
Lump sum contributions
-
-
-
113
104
740
- to meet additional demand
-
-
-
- to improve the level of service
-
-
2,576
614
Total sources of capital funding (C) Application of capital funding Capital expenditure
631 1,747 1,320
- to replace existing assets
2,076
2,164
2,032
1,699
Increase (decrease) in reserves
2,255
2,627
(168)
-
-
-
4,331
4,791
4,440
(4,218)
(4,687)
(3,700)
-
-
-
4,181
4,592
3,610
5,397 (4,783) 3,516
Increase (decrease) of investments Total application of capital funding (D) Surplus (deficit) of capital funding (C - D) Funding balance ((A-B) + (C-D)) Group depreciation and amortisation
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
Napier City Council Annual Plan 2014/2015
95
Water Supply Scope The Water Supply Group comprises:
9.8 million m3 water consumed annually
10 wells
10 ground water and 8 booster Pump Stations
8 reservoir sites
30 million litres service reservoir storage
469 km mains
95.5% of Napier’s population serviced by reticulation system
Council provides a water supply system for the supply of potable water as well as for fire fighting purposes. Water is drawn from the Heretaunga Plains aquifer, is free from harmful contamination and no water treatment is required. It is reticulated to the Napier urban area and to Bay View. Council has a programme in place to manage the usage of water, a precious natural resource, to minimise wastage and shortages.
Key Issues Upgrades to the City’s Water Supply will continue with emphasis on managing demand, ensuring that levels of service are maintained and building more resilience in the system. The Prospective Capital Plan includes $15.2M for Water Supply projects. The plan provides for the ongoing renewal and upgrades of the reticulation and pump stations as assets reach the end of their lives.
Awatoto Trunk Main This is the second stage of the Awatoto trunk main which will extend from the end of the first stage in Eriksen Road to Latham Street. The primary purpose of the Awatoto trunk main is to convey water from the source wells in Awatoto to the reservoirs in town. However, it will also supply water from reservoir storage to reticulation in the Napier South and Te Awa areas as required to satisfy demand. This project will be funded by financial contributions. The final stage of this project from Latham Street to Hyderabad Road will be included in the next Ten Year Plan.
Taradale Reservoir The existing 9.2 million litre reservoir will be supplemented with a second tank of the same size to increase total storage capacity to approximately 39 million litres. This will provide capacity for future growth across all of the reticulated areas. The project will be funded by financial contributions.
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Napier City Council Annual Plan 2014/2015
Water Supply continued Performance Measures Levels of Service
Measures
Minimise the adverse effects of water
Compliance with requirements of Resource
supply quality on human health by
Consent conditions
providing a water supply system with
Water quality adherence to Drinking Water
adequate capacity and pressure that
Standards for New Zealand 2005 (Revised
meets the NZ Drinking Water Standards
2008). Percentage of water mains > 100mm in
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
100%
100%
100%
100%
100%
100%
20%
20%
20%
0
0
0
90%
90%
90%
diameter cleaned No fire hydrants reported by NZ Fire Service not meeting code of practice pressure and flow requirements Community Perceptions Percentage of residents satisfied with Water Supply in the NRB Public Opinion Survey.
Economic and Financial Performance Cost per m3 of water
$0.44
$0.46
$0.43
Cost per km of water mains
$9,164
$9,673
$9,035
$171
$178
$167
Operating cost per rateable property
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97
Water Supply continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
Sources of operating funding 3,619 503 10 4,132
General rates, uniform annual general charges, rates penalties Targeted rates (other than water by meter charges) Subsidies and grants for operating purposes
-
-
-
3,838
4,064
3,645
-
-
-
492
518
488
Internal charges and overhead recoveries
37
116
111
Local authorities fuel tax, fines, infringement fees, and other receipts
11
12
11
4,378
4,710
4,255
2,096
2,264
2,067
-
-
-
665
754
650
Fees charges and targeted rates for water supply
Total operating funding (A) Applications of operating funding
1,911 638 -
Payments to staff and suppliers Finance costs Internal charges and overhead applied
-
-
-
2,549
Other operating funding applications Total applications of operating funding (B)
2,761
3,018
2,717
1,583
Surplus (deficit) of operating funding (A - B)
1,617
1,692
1,538
Sources of capital funding 101
Subsidies and grants for capital expenditure Development and financial contributions
-
-
-
161
155
124
-
Increase (decrease) in debt
-
-
-
-
Gross proceeds from sale of assets
-
-
-
-
Lump sum contributions
-
-
-
161
155
124
101
Total sources of capital funding (C) Application of capital funding
-
Capital expenditure
-
- to meet additional demand
440 1,244 1,684 (1,583) -
-
-
-
2,179
2,273
838
- to improve the level of service
121
126
120
- to replace existing assets
712
743
1,175
(1,234)
(1,295)
(471)
-
-
-
1,778
1,847
1,662
(1,617)
(1,692)
(1,538)
-
-
-
Increase (decrease) in reserves Increase (decrease) of investments Total application of capital funding (D) Surplus (deficit) of capital funding (C - D) Funding balance ((A-B) + (C-D))
1,475
Group depreciation and amortisation
1,579
1,576
1,428
(503)
Water by Meter Charges
(492)
(518)
(488)
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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Napier City Council Annual Plan 2014/2015
Recreation Scope Sportsgrounds
16 sports parks (213 hectares)
Major facilities – McLean Park Complex, Park Island, Nelson Park and Tareha Recreation Reserve.
Sportsgrounds are provided throughout the City to cater for a range of recreational and sporting needs.
Napier Aquatic Centre
Indoor facilities (heated) – 5 lane 25m pool, 6 lane 25m pool, 15m learner’s pool, 2 toddler pools, 2 spa pools, 2 water slides.
A comprehensive aquatic facility providing educational and recreational programmes, and a range of outdoor activities.
Marine Parade Pools
4 heated outdoor pools
5 spa pools
A complex with a range of heated pools and spas managed under contract.
Reserves
36 neighbourhood parks, 46 greenbelt reserves, 9 foreshore reserves and 9 public gardens
75m2 recreational reserves per residential lot
A range of passive recreation facilities providing an open space network and formal gardens of a high standard throughout the City.
Inner Harbour
95 berths
An area of wharves and catwalks in Ahuriri providing berths for commercial and recreational vessels, and popular for recreational fishing.
Key Issues Sportsgrounds Sportsgrounds Development A master plan which will guide development of the Park Island sports complex over the next 20 plus years was adopted by Council in early 2013. The plan, which was carefully developed over almost two years, strategically provides for the growth and change in local, regional and national outdoor sporting activity in the city and provides the city with direction to further develop Park Island as an integral part of Napier’s open space network. The first stages of implementing the plan are underway. The planned work programme in the 2014/15 annual plan year includes safety improvements to Clyde Jeffery Drive, construction of all weather pathways on popular walking routes and initial groundworks in the new northern sports ground hub adjacent to the Parklands residential development. Council will continue to work with Hawke’s Bay Regional Council and Hawke’s Bay Hockey Association in regard to restoring the Taipo Stream where it runs through the park and developing a new artificial hockey turf.
Sport and Active Recreation Strategy Council is committed to ensuring that the development of sport and active recreation facilities and the provision of sport and active recreation services for the community is undertaken in a strategic, collaborative, transparent and affordable way. Council considers that an effective Sport and Active Recreation Strategy will contribute to this goal and to this end Council will continue to work in partnership with other Councils in the region, regional sports organisations and Sport Hawke’s Bay towards redeveloping the existing Sport and Active Recreation Strategy into a better plan for Hawke’s Bay.
Napier City Council Annual Plan 2014/2015
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Recreation continued Napier Aquatic Centre The need for an upgrade of the Old Lap Pool enclosure has been identified in previous plans. A detailed condition assessment report, recently carried out by a structural engineer, recommends improvements to the facility that include adequate roof insulation, a vapour barrier, new flooring to replace the deteriorated rubber studded tile, double glazed windows and ceiling replacement. The funding is provided in the Prospective Capital Plan to cover this work. Investigation into the addition of a dedicated Learn to Swim pool (as part of a regional strategy) may lead to additional requirements which are not included in this plan.
Regional Aquatic Strategy With growing demand for swimming pool space, and an increasing diversity of swimming sports and recreation opportunities available, there is a need to identify how we can best meet these needs and demands as a region. A Regional Aquatic Strategy is being developed that will investigate opportunities for coordination and collaboration across the region’s facilities and how we might most effectively meet increasing demand for pool space using existing facilities and/or by the development of new facilities.
Reserves The plan allows for additional Reserve facilities which will cater for Napier’s population growth. The major works proposed concern the establishment and development of neighbourhood reserves (together with the provision of play equipment where appropriate), walkway reserves, and a number of greenbelt reserves in areas particularly subject to intensive infill development. The establishment and development of reserves in green-field areas is considered to be an on-site cost carried by each developer. Reserve development is funded from combination of rates and financial contributions.
Whakakire Avenue Breakwater and Westshore Beach Reprofiling A resource consent for a breakwater at Whakakire Avenue has now been lodged and is being considered by the Hawke’s Bay Regional Council. The granting of a consent and subsequent construction of a breakwater will stabilize the southern end of the beach and enable subsequent reprofiling of Westshore Beach to enhance the aesthetics of the beach and make it more user friendly. The construction of a breakwater will also enable more houses to be taken out of the coastal hazard zone.
Tree Planting Programme A tree planting programme will continue throughout the term of this plan. Funds allocated to this are in excess of the normal Reserves budget and are in the plan as a response to the community’s desire to enhance the City’s physical environment.
Reserves Walkway/Cycleway Linkages A network of formed and unformed walkway/cycleway tracks are located throughout the city to promote and encourage healthy exercise and to provide for the enjoyment of all residents and visitors to the city. A conscious effort has been made to establish a series of linkages between various areas in order to maximise the enjoyment of these walkways/cycleways. Pathways extend through many of the Foreshore Reserves and linear reserves catering for the dual activities of walking and cycling. Council will continue to develop walkway linkages and has included $2.8M in the Prospective Capital Plan, funded from loans.
Inner Harbour Investigation into whether the Meeanee Quay jetties should be renewed, or redeveloped with a view to providing additional berthage for the future is required. An engineering survey will be undertaken during the next 3 years to establish the remaining life and estimated replacement cost of the jetties. There is no provision for the renewal of the Meeanee Quay jetties within the current renewals programme. No issues have arisen that would facilitate the need to commence this project.
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Napier City Council Annual Plan 2014/2015
Recreation continued Performance Measures Sportsgrounds Levels of Service
Measures
Council provides a sufficient number
Sportsgrounds area per 1,000 residents.
and range of sports and recreation
Number of sports grounds suitable for
facilities to satisfy the needs of the
hosting national outdoor sports events.
community.
Number of sports grounds suitable for
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
3.5ha
3.5 Ha
3.5 ha
Minimum of 3
Minimum of 3
Minimum of 3
Minimum of 1
Minimum of 1
Minimum of 1
90%
90%
90%
$182
$170
$166
$21,695
$20,244
$19,675
hosting international outdoor sports events. Community Perceptions Percentage of residents satisfied with Parks and Sportsfields in the NRB Public Opinion Survey. Economic and Financial Performance Operating Cost per rateable property Operating cost per hectare
Napier Aquatic Centre Levels of Service
Measures
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Council provides a sufficient number
Accredited as meeting Poolsafe standards.
100%
100%
100%
and range of sports and recreation
Water quality adherence rate to NZ Water
100%
100%
100%
facilities to satisfy the needs of the
Treatment Standards 5826:2000. 204,000
204,000
204,000
82%
82%
82%
$90
$92
$89
community. Number of users. Community Perceptions Percentage of residents satisfied with Pools in the NRB Public Opinion Survey. Economic and Financial Performance Operating cost per rateable property
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Recreation continued Reserves Levels of Service
Council provides a sufficient number and range of sports and recreation facilities to satisfy the needs of the community.
Measures
Recreational land per residential lot.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
75m2
75m2
75m2 <60
Complaints per annum
<60
<60
Number of playgrounds
32
32
32
Playground accidents per annum
<10
<10
<10
195,000
195,000
195,000
95%
95%
95%
$153
$158
$142
$9,700
$9,971
$8,922
Council sustainably manages the
Annuals propagated and planted throughout
development and use of reserves as a
the city.
natural recreational resource for both local residents and visitors. Community Perceptions Percentage of residents satisfied with Public Gardens, Street Beds and Trees in the NRB Opinion Survey Economic and Financial Performance Cost per rateable property Operating cost per hectare of Reserve
Inner Harbour Levels of Service
Measures
To provide and maintain Inner Harbour
Berths available for commercial and
facilities to enable the safe berthing of
recreational vessels.
commercial and recreational vessels.
Channel depth sufficient for commercial
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
98 berths
98 berths
98 berths
18 months
18 months
18 months
and recreational vessels. Maintain maximum time between depth soundings of inner harbour.
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Recreation continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
7,889
7,631
7,328
-
-
-
24
24
24
1,454
1,495
1,458
87
208
199
616
698
611
10,070
10,056
9,620
7,296
7,305
7,103
-
-
-
1,956
2,061
1,880
Sources of operating funding 7,437 General rates, uniform annual general charges, rates penalties - Targeted rates (other than water by meter charges) 12 Subsidies and grants for operating purposes 1,507 Fees charges and targeted rates for water supply 8 Internal charges and overhead recoveries 613 Local authorities fuel tax, fines, infringement fees, and other receipts 9,577 Total operating funding (A) Applications of operating funding 6,968 Payments to staff and suppliers - Finance costs 1,479 Internal charges and overhead applied 3 Other operating funding applications 8,450 Total applications of operating funding (B) 1,127 Surplus (deficit) of operating funding (A - B)
2
2
2
9,254
9,368
8,986
816
688
634
Sources of capital funding - Subsidies and grants for capital expenditure 359 Development and financial contributions 22 Increase (decrease) in debt
-
-
-
343
358
293
3,789
3,503
1,103
- Gross proceeds from sale of assets
-
-
-
- Lump sum contributions
-
-
-
4,132
3,861
1,396
146 - to meet additional demand
1,809
1,886
1,308
1,805 - to improve the level of service
2,021
1,550
1,769
741 - to replace existing assets
2,705
2,512
1,576
(1,184) Increase (decrease) in reserves
(1,587)
(1,399)
(2,623)
-
-
-
1,508 Total application of capital funding (D)
4,948
4,549
2,030
(1,127) Surplus (deficit) of capital funding (C - D)
(816)
(690)
(634)
-
-
-
2,268
2,444
2,179
5,911
-
-
381 Total sources of capital funding (C) Application of capital funding Capital expenditure
- Increase (decrease) of investments
- Funding balance ((A-B) + (C-D)) 1,945 Group depreciation and amortisation -
Capital Items in progress consulted in prior years plans, not included in the Prospective Capital Plan
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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Social and Cultural Scope The Social and Cultural Group comprises:
Libraries
2 Libraries – Napier and Taradale
38,000 members
Libraries offer free-to-all services and a stimulating and pleasant environment. Services include recreational, educational, historical, genealogical, cultural and current affairs material together with online facilities, reading and outreach programmes.
War Memorial Conference Centre The facility houses the eternal flame and roll of honour as a memorial to Napier citizens who served and died in the conflicts of the 20th century.
Napier Municipal Theatre The Art Deco heritage building in Tennyson Street provides modern theatre facilities for local, national and international live theatre, performing arts, exhibitions, and other community functions and events. The auditorium has a seating capacity of 993. Other features include the Pan Pac Foyer for exhibitions, functions and conferences, bar and catering facilities and a Ticketing Box Office.
MTG Hawke’s Bay Arts, culture and museum facilities and a regional archive are provided by the Hawke’s Bay Museum and Art Gallery and Century Theatre. The regional collection of heritage, art and artefacts are managed under an agreement with the Hawke’s Bay Museums Trust. The complex reopened in September 2013 after extensive renovations which increased and improved exhibition space, has enabled better quality display of collection and loan items, and created more opportunities to accommodate touring exhibitions.
Community Planning Development of strategies and policies, community facilitation and advice, administration and distribution of community grants, safer community and youth development are the main components of Community Planning. Community facilitation and grants support and encourage voluntary and community based organisations to address social issues in the City through selfhelp processes. Safer community’s purpose is to develop community based crime prevention initiatives, promote safety in the community, and provide coordination and liaison between community groups and organisations. Youth development supports and fosters the role of young people in our community, providing opportunities for young people to participate and engage in decision making.
Halls
6 casual hire facilities, 2 leased facilities
Council provides a range of facilities with a good geographic spread for recreational, community or leisure activities at affordable prices.
Retirement and Rental Housing Retirement and Rental Housing
303 retirement flats in 9 villages – all 1 bedroom
72 rental flats in 3 villages - mostly 2 bedrooms
Flats are provided for people with special housing needs, low assets, and low income, with the emphasis on providing for the welfare of the tenants. Council flats are in high demand with the average occupancy rate exceeding 97%.
Cemeteries
6 cemeteries - 4 operational and 2 historic
Comprehensive areas for burials, ash interments, and ash scattering. The recently restored historic cemeteries ensure the historical and cultural significance is preserved. Records are available for genealogical enquiries. Note the crematorium for the Hawke’s Bay region, located in Hastings, is owned and operated by Hastings District Council.
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Social and Cultural continued Public Toilets
45 toilet facilities
Public toilets are provided in key areas generally related to tourism, recreation and shopping activities. Facilities are cleaned and inspected daily with the emphasis on hygiene, safety and mitigation of graffiti. New toilet block opened February 2014, at the new Clive Square Bus Terminus.
Emergency Management
1 fixed Emergency Management Operations Centre
1 Mobile Emergency Management Operations Centre (Satellite Trailer)
9 fixed Civil Defence Centres
Emergency Management combines Council staff, volunteers, other organisations and agencies to facilitate a planned response to emergencies in Napier. Integration of policies and planning as a region is coordinated by the Hawke’s Bay Civil Defence Emergency Management Group.
Key Issues Libraries E Books were made available to members in December 2011. It is anticipated that the take up of this service will be gradual. Changes in technology will be reflected in the services offered by the Libraries. In the latter part of the Prospective Capital Plan, funding has been allocated for an upgrade of the Napier Library. The impact of electronic media on library services and library facilities required for the future will be assessed during the intervening time.
MTG Hawke’s Bay After a successful relaunch of the facility following its closure for renovation, a planned review of operations is underway to ensure the facility is delivering its services most effectively and efficiently. Storage issues are being addressed through the review.
Community Planning Population changes present challenges in the medium to long term. Demand will come from both the ageing population and youth. Napier City Council takes a key role in the Napier Connects initiative, which aims to encourage stronger connections for our senior citizens with their community. Youth unemployment is a growing concern and is exacerbated in a poor economic climate. Work is underway at a regional level to address this issue. Technology has an important role to play in service provision (the use of online polling, consultation, information sharing etc) and for community organisations. It will be important for Council to utilise technology where possible and to support both the community and voluntary sector in this area. Funding sources continue to decline for community organisations and demand for their services is on the increase. Council will continue to offer support, resources and advice to organisations, both at individual organisational levels and in group settings.
Maraenui The Maraenui Urban Renewal Plan Review and Maraenui Shopping Centre Crime Prevention Through Environmental Design (CPTED) Assessment were adopted by Council on 10 August 2011. The recommendations of these reports have been prioritised. The Maraenui CPTED Assessment contained sixty-nine specific recommendations to improve the area, with the overall recommendation being to enhance the shopping centre and reserve, ensuring it is safe, secure and functional, and with a view to encourage economic development in the area. The first stages of the upgrade project focussing on the reserve by replacing and improving the playground area, skate park and toilets, and creating a larger open green space is complete. The final stages to upgrade roading, walkways and parking areas will be funded from other existing Council budgets and may require additional funding through future Annual Planning processes.
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Social and Cultural continued Pukemokimoki Marae The Pukemokimoki Marae is now well established within Napier, although not currently reaching its original vision and potential for the facility. In order to achieve its growth aspirations, funding of $50,000 pa has been approved for development of the Marae for three years in order to establish and build capacity and sustainability by growing tourism and service provision while continuing to serve the community of Napier.
Community Arts Centre Napier City Council has agreed to allow Creative Napier the use of the Old Borough Council Building located in Byron Street to create a Community Arts Centre. Creative Napier has initiated fund raising to complete a fit out of the building which will be overseen by Council.
Halls Memorial Square Community Rooms This facility is presently closed until further notice due to structural issues identified in a seismic assessment. Budget for refurbishment of Memorial Hall has been provided in past years. A decision on this project will be made once the seismic assessment of major Council owned buildings is completed and any work identified can be planned and prioritised.
Retirement and Rental Housing Background Napier City Council has a long and proud history of providing affordable Retirement and Rental Housing for people who have low assets and low income. This fills a known gap in the rental market, as it provides both affordable housing and security of tenure with an emphasis on the social and community wellbeing of the tenants. Due to modern medicine and equipment the elderly, despite physical disabilities and illnesses, are being encouraged and supported to remain independent in their homes longer. In addition the average age of the general population is increasing. This increases demand for retirement housing, which provides functional and accessible accommodation and caters for all levels of disability. To meet the growth in demand for retirement housing, Council also allocates its general rental flats to the more fit and able elderly, and the ground floor flats to the less mobile, who are in wheelchairs or require easy access.
Current/Future In 2011 Council resolved that the funds in the Pensioner Housing Upgrade Reserve, that had been retained to finance additional flats, would be extended to include improvements to existing Retirement Flats. From a feasibility study carried out 2008 one of the main areas identified was improvement of Retirement flats insulation and ventilation. The insulation has been upgraded over the past 3 years to bring the ceilings up to the recommended standard R2.9 and the under floor to R 1.3. with a small amount of remedial under floor insulation to be carried out. Bathroom ventilation has been installed in all Retirement Flats and 74% of the vanities required are now completed, the remainder will take place over the following year. Currently investigations to provide the best ventilation for the various kitchen designs is being undertaken, installation will take place over the next two years. The total value of this work is expected to be $658,000.
Minor Capital Projects Bulk funding for minor capital projects is provided to maintain Councilâ&#x20AC;&#x2122;s flats to a reasonable standard. Funding has been included in the Prospective Capital Plan of $1.2M funded from rental income received.
Cemeteries In order to cater to the burial requirements of Napier City into the future development of the second stage of Western Hills Cemetery is currently being considered. Initial design concepts have been developed and once completed construction work is anticipated to commence in 2015.
Public Toilets Investigation of vandal proof methods/means of improving public health protection may result in additional requirements not currently provided in this plan. These investigations are ongoing.
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Napier City Council Annual Plan 2014/2015
Social and Cultural continued New Toilet Programme Council has developed a standardised precast design for new toilet facilities which can be relocated in future should the need occur. This standardised design has tiled floors and walls and improvements in natural lighting, significantly improving the overall standard of toilets in Napier. $213,000 has been included in the Prospective Capital Plan for new public toilets, funded from rates. The toilets at Taradale Park have been replaced, and the toilets in Westshore are under review. New toilets have been opened at the new Clive Square Bus Terminus.
Emergency Management A review of the Hawke’s Bay Civil Defence Emergency Management Group Plan is required to identify where regional priorities may conflict with this plan. Current legislation particularly the Civil Defence Emergency Management Act 2002 will need to be reviewed due to significant national events. This may place additional requirements on Council which are not included in this plan. These requirements will include the 4R’s (Reduction, Readiness, Response and Recovery). There is an increased requirement for reduction of risk and in the area of readiness, the building of resilient communities to help reduce the commitment in the response phase of a Civil Defence activation. The methods of all Emergency Management service delivery will be reviewed.
Performance Measures Libraries Levels of Service
Measures
Council provides library and library
Percentage of Napier City residents who are
membership services to meet the
active borrowers (two year average)
community’s recreational, social and
New stock items per 1,000 residents -
educational needs.
including electronic
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
39%
39%
37%
>350
>350
>350
85%
85%
85%
Community Perceptions Percentage of residents satisfied with the Library Service in the NRB Public Opinion Survey Economic and Financial Performance Total cost per door and web entry
$6
$7
$6
Rating cost per rateable property
$124
$130
$125
Napier Municipal Theatre Levels of Service
Measures
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
97,808*
173,000
173,000
163
163
163
Operating cost per entry
$11
$12
$12
Rating cost per rateable property
$25
$25
$24
Council provides a quality performing
Visitor and local entries to facility
arts venue experience for local and
Number of hire days for theatrical and
visitor use
cultural events.
Economic and Financial Performance
*Calculation basis for the TYP was inappropriate and has been changed for the Annual Plan.
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Social and Cultural continued MTG Hawkeâ&#x20AC;&#x2122;s Bay Levels of Service
Measures
Provide a facility to display art, culture
Visitor and local entries to MTG Hawkeâ&#x20AC;&#x2122;s Bay
and heritage.
Number of events per annum
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
150,000*
690,000
690,000
12
12
12
Number of collection items lost or damaged
0
0
0
Number of exhibitions per annum
12
12
12
80%
80%
80%
Operating cost per entry
$33*
$6
$5
Rating cost per rateable property
$88
$79
$52
Community Perceptions Percentage of residents satisfied with MTG Hawkeâ&#x20AC;&#x2122;s Bay (including Century Theatre) in the NRB Public Opinion Survey Economic and Financial Performance
*Calculation basis for the TYP was inappropriate and has been changed for the Annual Plan.
Community Planning Levels of Service
Measures
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
50
50
50
0
18
18
4
4
4
20
20
20
95%
95%
95%
120
120
120
Percentage of residents with safety during the day in the NRB Public Opinion Survey
96%
96%
96%
Percentage of residents satisfied with safety during the night in the NRB Public Opinion
61%
61%
61%
$52
$58
$57
Council offers financial support for
Number of local community events
community initiatives and to secure
coordinated
key community services through grants
Number of youth forums coordinated per
and service contracts. Council promotes
annum
community safety with an emphasis
Minimum number of community based crime
on implementing crime prevention
reduction strategies supported
measures. Council also supports youth initiatives in Napier.
Number of community training and networking meetings facilitated per annum
Council regularly liaises with
Satisfaction rating of attendees at
community groups, social services
workshops
and key community organisations
Number of community organisations
and agencies to share community
receiving information via email 4 times per
information and advice
year
Community Perceptions
Survey Economic and Financial Performance Operating cost per rateable property
Halls Levels of Service
Council provides a sufficient number
Measures
Number of Halls
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
6
6
6
95%
95%
95%
$34,800
$44,760
$42,984
and range of cultural and social facilities to satisfy the needs of the community. Community Perceptions Customer satisfaction that the service provided meets acceptable standards. Economic and Financial Performance Average rating cost per Hall
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Napier City Council Annual Plan 2014/2015
Social and Cultural continued Retirement and Rental Housing Levels of Service
Measures
Council promotes community safety by
Village Coordinators available during normal
providing a safe environment for its
working hours and on call for emergencies
tenants in council housing.
after hours
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
100%
100%
100%
100%
100%
100%
100%
100%
100%
97%
97%
97%
Inspections per unit per year •
Retirement Flats – fortnightly [welfare]
•
Retirement and Rental Flats – annually [maintenance)
Economic and Financial Performance Occupancy Rate
Cemeteries Levels of Service
Measures
Council provides and maintains a
Cemeteries records are well maintained and
tranquil environment for burial,
accessible
reflection and placing of memorials to
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Online cemetery
Online cemetery
Online cemetery
records system
records system
records system
available 90% of
available 90% of
available 90% of
the time
the time
the time
< 10 complaints per
< 10 complaints per
< 10 complaints per
a quiet environment for visitors
annum
annum
annum
Interment and Burial spaces are available
100%
100%
100%
80%
80%
80%
$27
$24
$24
deceased family members. Council also maintains both the burial records and
Cemeteries are well maintained and provide
the historical features for all cemeteries managed.
on request Community Perceptions Percentage of residents satisfied with Cemeteries in the NRB Public Opinion Survey. Economic and Financial Performance Operating cost per rateable property
Public Toilets Levels of Service
To ensure the health of the community
Measures
Public toilets cleaned daily.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
100%
100%
100%
80%
80%
80%
$34
$33
$32
through the appropriate disposal of human waste in high traffic community areas, Council provides adequate toilets that are accessible, available and appropriately located for use by the public throughout the community Community Perceptions Percentage of residents satisfied with Public Toilets in the NRB Public Opinion Survey. Economic and Financial Performance Operating cost per rateable property
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Social and Cultural continued Emergency Management Levels of Service
Council protects communities by
Measures
Public Warning Systems are in place
coordinating and integrating all activities necessary to build, sustain
Population prepared in accordance with
and improve the capability to mitigate
national guidelines for an emergency event.
against, prepare for, respond to, and
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
80% of population
80% of population
80% of population
receive warnings
receive warnings
receive warnings
60% of survey
60% of survey
60% of survey
respondents have an
respondents have an
respondents have an
emergency kit
emergency kit
emergency kit
75%
75%
75%
recover from threatened or natural disasters or man-made events. Community Perceptions Percentage of residents satisfied with Civil Defence Organisation in the NRB Opinion Survey
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Napier City Council Annual Plan 2014/2015
Social and Cultural continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
8,565
8,365
7,921
-
-
-
255
353
356
Sources of operating funding 7,492 420
General rates, uniform annual general charges, rates penalties Targeted rates (other than water by meter charges) Subsidies and grants for operating purposes
1,762
Fees charges and targeted rates for water supply
2,569
2,904
2,651
1,658
Internal charges and overhead recoveries
2,267
1,968
2,319
2,450
Local authorities fuel tax, fines, infringement fees, and other receipts
2,321
2,417
2,233
15,977
16,009
15,479
8,951
9,240
8,795
-
-
-
5,887
5,417
5,595
13,782
Total operating funding (A) Applications of operating funding
8,491 4,457 12,948 834
Payments to staff and suppliers Finance costs Internal charges and overhead applied Other operating funding applications
-
-
-
Total applications of operating funding (B)
14,838
14,657
14,390
Surplus (deficit) of operating funding (A - B)
1,139
1,352
1,089
Sources of capital funding 3,683
-
-
619
42
48
39
Increase (decrease) in debt
-
-
-
-
Gross proceeds from sale of assets
-
-
-
-
Lump sum contributions
-
-
-
42
48
658
-
20 1,990
5,693
Subsidies and grants for capital expenditure Development and financial contributions
Total sources of capital funding (C) Application of capital funding
-
Capital expenditure
-
-
-
- to meet additional demand
-
-
-
38
40
338
7,145
- to improve the level of service
1,067
- to replace existing assets
1,332
1,578
1,306
Increase (decrease) in reserves
(189)
(219)
103
-
-
-
1,181
1,400
1,747
(1,139)
(1,352)
(1,089)
-
-
-
1,916
2,193
1,939
(1,685) -
Increase (decrease) of investments
6,527
Total application of capital funding (D)
(834)
Surplus (deficit) of capital funding (C - D)
1,462
Funding balance ((A-B) + (C-D)) Group depreciation and amortisation
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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City and Business Promotion Scope The City and Business Promotion Group comprises:
City and Business Promotion The City and Business Promotion activity supports local businesses, maintains Sister City relations with Tomakomai (Japan) Lianyungang (China) and Victoria (Canada), and provides grants to local tourism organisations. The activity supports marketing initiatives aimed at informing national and international audiences about Napier. Art Deco is an important tourism feature of the City and Council assists the Art Deco Trust in its promotion of Art Deco in Napier by way of a contract for service.
War Memorial Conference Centre A multi-functional facility located on the beach front along Marine Parade, consisting of a ballroom, an exhibition hall, a gallery and three breakout rooms. This venue is suitable for conferences, exhibitions, weddings and other functions. The facility also houses an eternal flame as a memorial to Napier citizens who served and died in the conflicts of the 20th century.
National Aquarium of New Zealand The National Aquarium of New Zealand, on Marine Parade, houses sharks, penguins, stingray, live coral, tuatara, alligators, hundreds of fish species, reptiles and kiwi. There are keeper talks and shows daily, swimming with the sharks opportunities, a souvenir shop and a cafĂŠ. The National Aquarium also has an extensive education programme. It regularly hosts school groups, tour groups, birthday parties, sleepovers, and many other functions.
Napier i-Site Visitor Centre Napier i-SITE Visitor Centre on Marine Parade is part of the NZ Visitor Information Network and offers information and booking services including accommodation and travel, attractions and activities, itinerary planning and advice, gifts, souvenirs, stamps and phone cards, local business events and entertainment information, maps, guides and books. It is a key information source for cruise ship passengers.
Par 2 MiniGolf Two 18 hole themed miniature golf courses situated next to the Napier i-SITE Visitor Centre on Marine Parade providing entertainment for all ages. Par 2 can host birthday parties and other events and offer group discount rates and a loyalty card option.
Kennedy Park Resort, Napier Kennedy Park Resort is one of the busiest holiday parks in New Zealand set in spacious park like surroundings. Facilities include 91 rooms, 170 powered and non powered sites, as well as a restaurant, bar, conference facility, childrenâ&#x20AC;&#x2122;s playground, commercial laundry, service buildings, shop and a pool complex.
Key Issues Marineland of New Zealand Marineland has been closed to the public by decisions of Council dated 2 July 2008 and 9 December 2010. Work is on-going for the re-homing of the remaining animals and birds.
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City and Business Promotion continued Performance Measures City Promotion Levels of Service
Measures
Council has processes in place to
Growth in business numbers
encourage new business enterprises to
Number of visitor nights in commercial
establish in the City which contribute to
accommodation
the economic wellbeing of the city.
Cruise ship visitor numbers
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
To be reported
To be reported
To be reported
615,000
615,000
600,000
95,000
95,000
108,000
80%
80%
80%
88%
88%
88%
To be reported
To be reported
To be reported
Community Perceptions Percentage of residents satisfied with Councilâ&#x20AC;&#x2122;s Policies to Promote Job Opportunities in the NRB Public Opinion Survey Percentage of residents satisfied with Tourism Promotion in the NRB Public Opinion Survey Economic and Financial Performance City GDP per capita
War Memorial Conference Centre (WMC) Levels of Service
Measures
Provide and manage a conference and
Qualmark rating maintained.
function facility.
Number of National and International hires.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Rating maintained
Rating maintained
Rating maintained
260
290
290
$1,423
$1,329
$1,267
Economic and Financial Performance Rates cost per hire
National Aquarium of New Zealand Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
99,000
99,000
99,000
364
364
364
Rating cost per visitor
$11
$10
$10
Operating cost per rateable property
$118
$114
$112
Levels of Service
Measures
Provide an aquarium for visitors
Number of visitors.
and local citizens for recreation and
Days Open
education. Economic and Financial Performance
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City and Business Promotion continued Napier i-Site Visitor Centre Levels of Service
Measures
Council provides an i-SITE facility for
Number of visitors through the centre.
visitors to Napier and Hawkeâ&#x20AC;&#x2122;s Bay
Opening hours per days.
to deliver tourism information and
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
310,000
310,000
310,000
Minimum 8 hrs / 364
Minimum 8 hrs /
Minimum 8 hrs / 364
days
364 days
days
tour and accommodation services to encourage visitors to stay longer and to revisit. Economic and Financial Performance I-Site revenue per visitor Rating cost per visitor
$2
$2
$2
$1.21
$1.30
$1.30
Par 2 MiniGolf Levels of Service
Council provides a Mini Golf facility
Measures
Visitor Admissions per annum.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
39,700
39,500
39,700
as a visitor attraction and for local community use. Economic and Financial Performance Revenue per admission
$8
$9
$8
Rating return per visitor
$0*
$0.15
$0.15
Return on Assets
11%
13%
12%
*Visitor baseline now reflects Par2 only
Kennedy Park Resort, Napier Levels of Service
Council provides this facility to
Measures
Room nights per annum.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
25,000
25,000
25,000.
6%
6%
6%
contribute to the promotion of Napier as a visitor destination and to provide, within a single location, a mixture of accommodation types and facilities for visitors. Economic and Financial Performance Return on Assets
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City and Business Promotion continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
1,504
Sources of operating funding 1,554
1,479
1,549
165
Targeted rates (other than water by meter charges)
168
175
167
142
Subsidies and grants for operating purposes
131
117
121
6,428
General rates, uniform annual general charges, rates penalties
7,122
7,784
7,322
71
Internal charges and overhead recoveries
61
75
52
47
Local authorities fuel tax, fines, infringement fees, and other receipts
18
52
31
8,979
9,752
9,196
7,255
7,946
7,468
-
-
-
1,326
1,389
1,332
8,407
Fees charges and targeted rates for water supply
Total operating funding (A) Applications of operating funding
6,912 1,251 1 8,164 243
Payments to staff and suppliers Finance costs Internal charges and overhead applied Other operating funding applications Total applications of operating funding (B) Surplus (deficit) of operating funding (A - B)
-
-
-
8,581
9,335
8,800
398
417
396
Sources of capital funding -
Subsidies and grants for capital expenditure
-
-
-
-
Development and financial contributions
-
-
-
-
Increase (decrease) in debt
-
-
-
1
Gross proceeds from sale of assets
-
-
-
-
Lump sum contributions
-
-
-
1
Total sources of capital funding (C)
-
-
-
Capital expenditure
-
-
-
- to meet additional demand
-
-
-
- to improve the level of service
-
-
-
398
417
396
-
-
-
-
-
-
398
417
396
(398)
(417)
(396)
-
-
-
928
1,183
1,107
Application of capital funding 899 614 (1,269)
- to replace existing assets Increase (decrease) in reserves - Increase (decrease) of investments
244 (243) 969
Total application of capital funding (D) Surplus (deficit) of capital funding (C - D) Funding balance ((A-B) + (C-D)) Group depreciation and amortisation
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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Planning and Regulatory Scope The Planning and Regulatory Group Comprises:
Planning Policy Planning Policy manages the development of the natural and built environment of Napier, via the District Plan, under the Resource Management Act 1991 (RMA) in a sustainable manner, ensuring the quality and quantity of the City’s resources are maintained and enhanced.
Regulatory Consents Council ensures that development of the City is within the RMA and the policies of the District Plan through Regulatory Consents. This includes processing non notified Resource Consents and Land Information Memorandum, preparing resource applications for land subdivisions and an annual environmental programme to gauge the effectiveness of Council’s environmental management policies. Also covered is enforcement work to ensure compliance with Resource Consent approvals and the operative District Plan.
Building Consents The Council ensures that building development within the City is in accordance with the Building Act 2004 through the process of the Building Consents. Services include counter advisory service, processing Building Consent applications, providing Codes of Compliance and Building Warrants of Fitness, and investigating complaints.
Environmental Health Council deals with the environmental problems of noise, smoke, smell and refuse pollution through its Environmental Health Services through investigation and enforcement under a range of Acts. Licences are processed and premises inspected for food premises, hairdressers, offensive trades, camping grounds, skin piercing, mobile shops, funeral directors and street occupation. Also covered is the administration of matters relating to the Sale of Liquor Act, monitoring compliance with household swimming pool regulations, and investigations and advice on environmental and any other health matters and nuisances such as vermin, pests and fire hazards.
Animal Control Animal Control ensures that all animals within the City are under proper control. Dogs are the primary animal and these must all be registered. Emphasis is placed on responsible dog ownership, education and classification of dogs and owners in line with the provisions of the Dog Control Act 1996.
Parking Public Parking Spaces: CBD – 2,451; Taradale – 339 Parking areas are provided in the Central Business District and Taradale Shopping Centre as well as the smaller commercial areas of the city, with long and short term spaces providing parking to meet reasonable public expectations. In addition to fees from parking meters, car park ticket machines and leased spaces, parking is funded through a levy on rates on commercial and retail properties in Napier and Taradale and other smaller suburban shopping and commercial areas. Monitoring and enforcement of parking bylaws ensures equitable use.
Key Issues Planning Policy As a result of the Heretaunga Plains Urban Development Strategy (HPUDS), Napier City Council and Hastings District Council have undertaken a project to harmonise the District Plans where possible. This means that needless differences are eliminted, while recognising that there will still be rated differences that relate to the different characteristics of specific locations. Napier has undertaken a series of changes to the district plan and Hastings had undertaken a full review of their plan which will incorporate the results of this process, and bring the District Plans closer together in terms of both the content and format.
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Napier City Council Annual Plan 2014/2015
Planning and Regulatory continued Environmental Health Legislation covering the sale of liquor has recently been reviewed and substantial work will be required to institute the Sale and Supply of Alcohol Act 2012 and associated statutes. Promulgation of a Local Alcohol Policy and review of Liquor Control Bylaws are underway. A review of food safety legislation is also underway. Council officers are contributing to this review. If passed by Parliament, this legislation will have additional impact on officer service delivery.
Animal Control Council’s program of rewarding responsible dog owners and taking appropriate action against owners who do not control their dogs in a responsible manner will continue in the 2014/2015 year. Responsible dog owners have now enjoyed their second year of unchanged registration fees. Council’s focus will remain communicating the importance of being a responsible dog owner within the provisions of the Dog Control Act 1996 and Council’s Dog Control Bylaw. Those dog owners who fail to comply these requirements will be faced with increased penalties. Council’s on-going focus of identifying and registering previously unregistered dogs is making it difficult to increase the proportion of licensed dog owners in the City. The addition of previously non-compliant dog owners has driven down the overall percentage of licensed dog owners. However the identification and registration of the additional dogs has allowed Council to hold registration fees steady for most compliant dog owners.
Parking The evolution of technology in the field of parking services is rapid and is likely to have a large impact in future years. The Parking Department is monitoring the deployment of new forms of technology nationally and will seek to see deployment of proven technologies if they are appropriate to Napier’s situation. Over time it is intended to replace individual meters with parking machines as used in Taradale, pay and display.
CBD Parking Capital expenditure is in place for several inner city projects including additional CBD parking, parking for cyclists and motorcyclists, development of walkways from parking facilities to inner city areas and security for major parking facilities. As demand for parking begins to show signs of increase, Council will seek to increase the availability of parking facilities. In the longer term an option being pursued as part of current planning is to build multi-level parking facilities to minimise the need for land purchase in the CBD. $8.1M has been included in the Prospective Capital Plan for CBD parking projects, funded from parking reserve funds. Re-development of large sections of the City and deployment of ultra-fast broadband infrastructure is likely to put considerable stress on the stock of available parking over the next two years.
Performance Measures Planning Policy Levels of Service
Measures
Council monitors and enforces
Ensure the integrity of the District Plan is
compliance with legislation intended
maintained through strategic reviews.
to protect its citizens from threats to
Manage District Plan modifications within
their safety (building quality, animal
legal requirements.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Report on progress
Report on progress
Report on progress
Report on progress
Report on progress
Report on progress
$26
$26
$26
nuisance). Economic and Financial Performance Cost per rateable property
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Planning and Regulatory continued Regulatory Consents Levels of Service
Measures
Council monitors and enforces
Land Information Memorandums processed
compliance with legislation intended to
within the statutory time frame of 10
protect its citizens from threats to their
working days.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
100%
100%
100%
safety through the resource consent process. Planning complaints are responded to
Response rate to complaints.
efficiently and effectively in a manner that is fair to all parties.
All urgent
All urgent
All urgent
complaints are
complaints are
complaints are
investigated within
investigated within
investigated within
3 days
3 days.
3 days.
Building Consents Levels of Service
Measures
Council monitors and enforces
Audit 20% of all buildings (100% over 5
compliance with legislation intended
years) requiring building warrants of fitness
to protect its citizens from threats to
registered from owners of buildings, subject
their safety (building quality, animal
to code of compliance schedule.
nuisance).
Maintain Building Consent Authority (BCA) accreditation. Process building consents within 20 working
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
20%
20%
20%
Accreditation
Accreditation
Accreditation
maintained
maintained
maintained
100%
100%
100%
100%
100%
100%
$258*
$410
$401
days. Process code of compliance certificates within 20 working days. Economic and Financial Performance Rates cost per building consent
*The decrease in rates cost per building consent is driven by increased volume as a result of the Hawkeâ&#x20AC;&#x2122;s Bay Regional Bylaw regarding fireplaces (not included in the TYP)
Environmental Health Levels of Service
Measures
Council monitors and enforces
Proportion of all food premises inspected
compliance with legislation intended
twice per year (including re-checking) and
to protect its citizens from threats
non-food premises inspected once per year.
to their health (food handling, water
Number of water samples taken compared
quality) and wellbeing (noise and
to number of the National Standard.
environmental effects).
Requests for swimming pool fencing
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
100%
100%
100%
165%
165%
165%
100%
100%
100%
80%
80%
80%
$25
$27
$26
inspections initiated within 10 working days. Community Perceptions Percentage of residents satisfied with Noise Control in the NRB Public Opinion Survey. Economic and Financial Performance Operating cost per rateable property
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Planning and Regulatory continued Animal Control Levels of Service
Measures
Council monitors and enforces
Number of service requests/Number of
compliance with legislation intended
licensed dogs
to protect its citizens from threats to
Number of licensed dog owners.
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
41%
41%
42%
22.5%
22.5%
20%
75%
75%
75%
$7
$8
$8
their safety (building quality, animal nuisance). Community Perceptions Percentage of residents satisfied with Animal Control in the NRB Public Opinion Survey. Economic and Financial Performance Rating cost per rateable property
Parking Services Levels of Service
Measures
Council provides on and off street
CBD parking occupancy rate (off street and
parking facilities
on street).
to provide sufficient parking to meet
Taradale parking occupancy rate (off street
reasonable public expectations,
and on street).
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
Less than 75%
Less than 75%
Less than 75%
Less than 75%
Less than 75%
Less than 75%
60%
60%
60%
80%
80%
80%
to ensure the equitable sharing of parking resources, and
to
ensure
safe
and
effective
passenger vehicle flow Community Perceptions Percentage of residents satisfied with Parking in the Inner City in the NRB Public Opinion Survey. Percentage of residents satisfied with Parking in the Suburbs in the NRB Public Opinion Survey.
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119
Planning and Regulatory continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
Sources of operating funding 2,130
2,363
2,264
2,150
-
Targeted rates (other than water by meter charges)
-
-
-
-
Subsidies and grants for operating purposes
-
-
-
3,910
3,954
3,918
3,488 124
General rates, uniform annual general charges, rates penalties
Fees charges and targeted rates for water supply
143
145
141
1,052
Internal charges and overhead recoveries Local authorities fuel tax, fines, infringement fees, and other receipts
1,067
985
1,046
6,794
Total operating funding (A)
7,483
7,348
7,255
3,722
3,664
3,513
-
-
-
2,469
2,524
2,368
Applications of operating funding 3,324 2,174 -
Payments to staff and suppliers Finance costs Internal charges and overhead applied
-
-
-
5,498
Other operating funding applications Total applications of operating funding (B)
6,191
6,188
5,881
1,296
Surplus (deficit) of operating funding (A - B)
1,292
1,160
1,374
Subsidies and grants for capital expenditure
-
-
-
Development and financial contributions
-
-
-
-
Increase (decrease) in debt
-
-
-
-
Gross proceeds from sale of assets
-
-
-
-
Lump sum contributions
-
-
-
Total sources of capital funding (C)
-
-
-
Capital expenditure
-
-
-
- to meet additional demand
-
-
541
Sources of capital funding 72
72
Application of capital funding 10 257 44 1,057 1,368 (1,296) 254
- to improve the level of service - to replace existing assets Increase (decrease) in reserves Increase (decrease) of investments Total application of capital funding (D) Surplus (deficit) of capital funding (C - D) Funding balance ((A-B) + (C-D)) Group depreciation and amortisation
-
-
-
182
127
172
1,110
1,033
661
-
-
-
1,292
1,160
1,374
(1,292)
(1,160)
(1,374)
-
-
-
293
422
408
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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Property Assets Scope Lagoon Farm The 350 hectare farm is situated on the south side of the Ahuriri Estuary. It currently runs cattle, sheep, and has some Kiwi Fruit plantings and cropping leases. A quarter acts as a flood ponding area during unusual and extreme weather events. As residential or business park development occurs, farming operations will reduce. The farming operation has already been impacted upon by construction of the Prebensen Drive extension, which bisects the farm. As these activities progressively impact on the farm operations, it is likely that Council will cease to operate Lagoon Farm as a commercial farm.
Parklands Residential Development The Council’s Parklands Residential Development on 120 hectares of former Lagoon Farm land providing 440 residential sections for sale during 2012-2022. This plan includes land for sportsgrounds. The rate of development will be driven by market demand.
Property Holdings Leasehold Properties:
Commercial – 80
Residential – 30
This business unit is responsible for the management of leases and licences which have been established for parks, reserves, commercial, industrial and residential properties. The majority of leases are perpetually renewable. It is also responsible for the management, including maintenance and renewal, of all Council buildings not specifically allocated to other activities.
Key Issues Lagoon Farm Business Park Council has approval for a District Plan change for the Business Park zone. A concept plan is currently being prepared on staged development of the area. The land is considered a strategic asset and will remain Council owned as leasehold land. Funding for the project from the Capital Projects Funds has been provided in past years.
Lagoon Farm Business Park Council has implemented a seismic review of its building stock. The review is taking place on a prioritised basis. To date most high priority older buildings have been assessed and of these only three smaller community facilities have been deemed Earthquake Prone. The more modern buildings are yet to be assessed and will have initial assessments carried out to determine if further investigation is required. Council believes that the outcomes of the seismic assessments will best be considered once the majority of the assessments are completed, when any work required can be planned and prioritised. This will be addressed when Council reviews its TYP in 2015.
Performance Measures Lagoon Farm Levels of Service
Net operating surplus
Napier City Council Annual Plan 2014/2015
Measures
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
$17,133
18,689
$6,200
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Property Assets continued Parklands Residential Levels of Service
Measures
Target for sections sold
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
64
65
64
Property Holdings Levels of Service
Measures
Council maintains and manages both
All freeholding requests handled in
its commercial and leasehold land
accordance with Council policy.
portfolio in accordance with legislation
Buildings comply with Building Act and
where applicable and in accordance
Health & Safety Act and hold current
with individual lease agreements.
warrant of fitness certificates
Annual Plan Targets
TYP
AP
2014/15
Targets
Targets
2014/15
2013/14
100%
100%
100%
100%
100%
100%
6%
7%
6%
Economic and Financial Performance Return on Assets
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Napier City Council Annual Plan 2014/2015
Property Assets continued Funding Impact Statement Actual
Annual Plan
TYP
AP
2012/13
2014/15
2014/15
2013/14
$000
$000
$000
$000
- General rates, uniform annual general charges, rates penalties
-
-
-
- Targeted rates (other than water by meter charges)
-
-
-
- Subsidies and grants for operating purposes
-
-
-
448
475
448
1,640
1,673
1,610
2
2
2
7,132 Local authorities fuel tax, fines, infringement fees, and other receipts
6,765
13,853
12,977
9,397 Total operating funding (A)
8,855
16,003
15,037
3,607
7,211
6,840
-
-
-
1,455
2,300
2,332
Sources of operating funding
681 Fees charges and targeted rates for water supply 1,581 Internal charges and overhead recoveries 3 Interest and dividends from investments
Applications of operating funding 4,673 Payments to staff and suppliers - Finance costs 823 Internal charges and overhead applied
-
-
-
5,496 Total applications of operating funding (B)
- Other operating funding applications
5,062
9,511
9,172
3,901 Surplus (deficit) of operating funding (A - B)
3,793
6,492
5,865
- Subsidies and grants for capital expenditure
-
-
350
- Development and financial contributions
-
-
-
- Increase (decrease) in debt
-
-
-
177
212
6,784
Sources of capital funding
1,290 Gross proceeds from sale of assets - Lump sum contributions 1,290 Total sources of capital funding (C)
-
-
-
177
212
7,134
-
-
-
-
-
433
-
-
3,850
-
-
-
3,969
6,704
8,716
Application of capital funding - Capital expenditure 213 - to meet additional demand - - to improve the level of service 354 - to replace existing assets 4,624 Increase (decrease) in reserves - Increase (decrease) of investments 5,191 Total application of capital funding (D) (3,901) Surplus (deficit) of capital funding (C - D) - Funding balance ((A-B) + (C-D)) 368 Group depreciation and amortisation -
Capital Items in progress consulted in prior years plans, not included in the Prospective Capital Plan
-
-
-
3,969
6,704
12,999
(3,793)
(6,492)
(5,865)
-
-
-
355
483
406
1,010
1,219
-
The Funding Impact Statement (FIS) is provided in accordance with Section 95 and Schedule 10 of the Local Government Act 2002. The FIS is intended to disclose the sources and applications of Council funds. The FIS includes only transactions involving monetary funding and therefore excludes vested assets, revaluations and depreciation. This statement is not GAAP compliant.
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Support Units Scope Council has a number of cost centres of a corporate and support nature. These cost centres provide the technical and support services necessary for the function of Councilâ&#x20AC;&#x2122;s activities Costs of the support services are reallocated to activities either as overheads based on the support each activity receives, or recharged direct on a usage basis. Support Units include the Services Depot units which provide the support for the Utilities and Reserves divisions, including a store and mechanical workshop. Design Services Unit provides scientific and technical services to other Council departments ensuring the community receives engineering services of maximum quality and safety.
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Napier City Council Annual Plan 2014/2015
Glossary of Terms Activities and Activity Groups The main elements of the Council’s services offered to the Napier community are divided into Activities. These Activities are described in detail in the Activity Groups section of the Plan including the performance measures and targets and the financial budgets for 2014/15.
Allocation of Overheads The Council’s support units provide “internal” or “support” services to the service delivery business units. The costs of these internal services are allocated across the other business units either as “overheads” based on the support each output receives or recharged directly on a usage basis. This ensures that the true cost of providing specific services to the public is reflected in all budget figures.
Carrying Amount The net amount at which an asset or liability is recognised in the balance sheet.
Community Outcomes These are goals determined by the community that it believes are important for its present and future economic, social, cultural and environmental wellbeing.
Derecognition When an asset value is no longer recorded in the balance sheet it has been derecognized, e.g. when an asset is sold it is no longer recorded on the balance sheet as from the date of the sale.
Financial Contributions The share of the cost of new developments and subdivisions met by developers.
Impairment The amount by which the carrying amount of an asset exceeds its recoverable amount.
Infrastructural Assets Stationary systems forming a network and serving whole communities, where the system as a whole is intended to be maintained indefinitely at a particular level of service potential by the continuing replacement and refurbishment of its components. The network may include normally recognised ordinary assets as components. These include roads, water, sewerage and stormwater systems.
Infrastructural Asset Renewal A statutory requirement to provide for maintenance of infrastructural assets in serviceable condition in perpetuity. The amount required is calculated from asset management plans, and “smoothed” to provide a relatively even flow of funds from year to year.
Levels of Service A measure of the quality and quantity of services delivered. They are determined by customer expectations, legislative requirements and affordability.
Non Targeted Rate Rates other than targeted rates. These are general rates and Uniform Annual General Charges. These fund a wide range of activities that are considered to be of general benefit to the community.
NRB Public Opinion Survey (CommunitrakTM) A wide ranging public opinion survey prepared for the Council by the National Research Bureau Ltd. The survey is of public perceptions and interpretations of Council services and representation with comparisons to National and Peer Group averages.
Prospective Financial Statements Refers to future-oriented financial statements.
Targeted Rate A rate set under section 16 or 19 of the Local Government (Rating) Act 2002 to fund a specific function or service provided. It may be charged as a fixed dollar amount per rating unit, a fixed charge per factor, such as property value, or a differential charge per factor.
Ten Year Plan Napier City Council’s Long Term Plan, as defined in the Local Government Act 2002 is referred to as the Ten Year Plan (TYP).
Napier City Council Annual Plan 2014/2015
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