Napier City Council Annual Report 2009/2010 Summary

NAPIER CITY COUNCIL ANNUAL REPORT SUMMARY for the year ended 30 June 2010

A Message from the Mayor and Chief Executive Our aim is to give residents of Napier a fabulous city to work and play in as well as keeping the city affordable for ratepayers.

This year kicked off (literally) at McLean Park on 1st August 2009. The opening of the Graeme Lowe Stand is the culmination of a $13million upgrade of the park and Hawke’s Bay celebrated in style as the Magpies took the game away from Auckland.

Thank you to all staff who take pride in their work and our city. The results of their excellent work can be seen for themselves. Thank you to the Council. Much can be achieved when people work together for a common cause. Thank you to the people of Napier who have given us feedback, support, ideas and are helping us to build a great community.

Three other large projects were completed: •• The Overland Drain - $15 million and relief for stormwater from Greenmeadows and Taradale.

•• The Taradale Library – opened on time and on budget.

This is an amenity well used and appreciated.

•• Kennedy Park facilities were redeveloped to add $1million of cabin accommodation.

Barbara Arnott

Neil Taylor

MAYOR

CHIEF EXECUTIVE

The Secondary Sewage pipe from Greenmeadows to Awatoto – back up infrastructure for the future is underway.

The Council added to our attractive clean green city by starting the $500,000 greening project which aims to put trees and planting in streets and pathways. Our environmental work as a city has reaped rewards which include reduced waste to our landfill. The other side of successful recycling is less income for the facility, which resulted in a $450,000 top up to maintain operations.

Recycling is worthy, but expensive for ratepayers.

The Parklands development even in this difficult economic climate has produced better returns than anticipated and this gives Napier a positive income for capital works which alleviates pressure on rates.

Regionally, the big issue was the Heretaunga Plains Urban Development Strategy (HPUDS). Napier City, Hastings District and Hawke’s Bay Regional Councils were part of this huge planning project which aims to protect our versatile soils, manage growth responsibly and give certainty of where growth can and cannot occur to the people of Hawke’s Bay now and in the future.

7

-984

70

ISSN

Copies of the Annual Report

NA

PIE

•• Pick up a copy from the Civic Building, Hastings Street •• Phone 835 7579 and we will send you a copy •• Download or view on www.napier.govt.nz keyword: annualreport •• View copies at the Napier and Taradale libraries

R

Y CIT

UN

CIL

T OR 10 EP JUNE 20 L R09 TO 30 A 0 U Y2

N

AN

CO

17

L

1 JU

6O

0

01

r2

be

cto

ted

op

Ad

Social and Cultural Social and Cultural activities include the Libraries, War Memorial Centre, Municipal Theatre, Hawke’s Bay Museum and Art Gallery, Community Development, Safer Community, Halls, Retirement and Rental Housing, Cemeteries, Public Toilets and Emergency Management.

•

Influenza A (H1N1) outbreak (2009/2010) During this period of time the Emergency Operations Centre was partially activated on a number of occasions as the situation increased in our district. This was mostly monitoring and preparing plans for a welfare response should it be required.

Libraries

•

Weather Warnings/Swell Warnings/ Thunderstorm Warnings/Alerts (2009/2010) – Throughout the year the Napier Civil Defence Duty Manger has responded to (according to prescribed procedures) over 55 warnings/ alerts.

The extension and redevelopment of the Taradale Library was completed in May 2009 when the building was handed over to Napier City Council. The new building re-opened to the public on 13 July 2009. Unspent budget from this project is to be used for some short term redevelopment in the Napier Library.

In April 2010, a major upgrade of the SPYDUS Library management System commenced. The new system is scheduled to go live early in August 2010.

HB Museum and Art Gallery Redevelopment The Government announced on 2 July 2010 that it will contribute $6m toward the $18m redevelopment of the HB Museum and Art Gallery. This commitment adds to the confirmed funding from Napier City Council, HB Regional Council, Hastings District Council, Lotteries, and other Trusts and individuals.

The consent and tender process will be progressed over the next 6 months. During this time community fundraising will continue in order to secure the small outstanding portion of required funding.

The museum will officially close on 25 July 2010 and staff will begin relocation of the collection to off-site storage prior to building works beginning. Building is expected to begin in April 2011 with the redevelopment expected to take around 2 years.

Housing Council’s application for funding from the Government Housing Innovation Fund was not successful. By the time of lodgement of the claim the criteria for qualification had been changed by the incoming Government and the Fund was no longer available for modernising existing housing. Napier City Council’s current focus is providing insulation for Retirement Flats with the costs funded from existing budgets.

Emergency Management Emergency Operations Activations for 2009/2010 were:

The Hawke’s Bay Region Exercise Bay Vac was carried out on 13th November 2009 with the main objective to test Emergency Operation Centre processes and operations. The Napier Emergency Management response for this exercise was evaluated by independent Evaluators from the Ministry of Civil Defence and Emergency Management and other Emergency Management Officers from around the country. Their feedback was extremely positive complimenting the Emergency Operation Centre setup and procedures, the leadership within the Emergency Operation Centre at all levels and enthusiasm of all staff involved.

•

Alleged bomber on bus (23 September 2009) – Partial Activation of the Emergency Operations Centre for monitoring and setting up of a Welfare Centre and all associated resources.

•

Tsunami Warning (30 September 2009) – Emergency Operations Centre, partially activated.

•

Napier/Taupo Snow Event (4 October 2009) – Welfare Team from Napier went out to Hukurere Girls College to run a Welfare Centre for Hastings Emergency Management.

Performance Measures

Tsunami Warning (8 October 2009) – Emergency Operations Centre, partially activated with situation monitored and website updated and press releases produced.

Hawke’s Bay Museum and Art Gallery – 36,087 admissions (target 28,000)

•

•

•

2

Civil Defence volunteers assist with an emergency services exercise

Tsunami Warning (28 February 2010) – Emergency Operations Centre partially activated with situation monitored and website updated and press releases produced.

Flooding Event (29 and 30 May 2010) – Emergency Operations Centre partially activated and evacuees taken to hotel.

Napier City Council 24hrs/7 days

835 7579 www.napier.govt.nz

Libraries – 922,471 items issued (target 850,000)

Napier War Memorial Conference Centre – 350 national and international hires (target 290) Retirement and Rental Housing – average of 98.5% occupancy rate (target 97%) Emergency Management – 100% radio communications operative during weekly checks (target 95%) The tests ensure the radios will be operative in an emergency.

Water and Wastes Solid Waste, Stormwater, Wastwater and Water Supply provide the service and infrastructure for a healthy environment.

Cross Country Drain The Cross Country Drain and pump station was commissioned during the year. This major, long term project will provide for current and future stormwater requirements. The drain runs from the intersection of the Napier/Hastings motorway and Tannery Road to Te Awa Avenue, where the stormwater is pumped via pipe to the sea. As well as draining Taradale South it intercepts stormwater from the upper Pirimu Drain which makes capacity available in the Pirimu Station to service North West development areas (Oaklands, Parklands, Park Island).

There has been a major event since the drain’s completion during which time the system worked effectively providing bulk stormwater pumping capacity. An aerial view of the Cross Country Drain is shown on this page.

Taradale Pumping Station and Main

Resource Consents The resource consents associated with the Solid Waste, Water Supply, Wastewater and Stormwater activities are administered by the Hawke’s Bay Regional Council. The consent conditions are set pursuant to provisions under the Resource Management Act. All the consents contain reporting requirements. The HBRC uses this information to assess compliance. Any known areas on noncompliance are contained in the Annual Report.

Performance Measures Solid Waste – 21,269 tonnes of waste to landfill or 368 kg per capita is an improvement on the target of 27,500 tonnes or 476 kg per capita.

91% of residents are satisfied with refuse collection in the NRB Customer Satisfaction Survey (target 92%).

Stormwater – pumping capacity was available 100% of the year (target 97%)

Construction of the 800mm diameter pumping main started during the year. Construction of the remainder of the main and the pumping station will continue into 2010/11.

86% of residents are satisfied with stormwater in the NRB Customer Satisfaction Survey (target 85%).

Wastewater Treatment

Wastewater – Urban main residential and rural settlement population served by reticulated system as a proportion of total city population 93% (target 93%).

The 2010/11 Annual Plan provides $6.443 million for the Biological Trickling Filter Treatment Plant which is additional to the amount of $26.3 million already provided for the Advanced Primary Treatment Plant. The total cost of implementing the Biological Trickling Filter Treatment process is $32 million.

A resource consent application to discharge treated wastewater into Hawke’s Bay following treatment of all domestic and non-separated industrial effluent in the proposed Biological Trickling Filter Wastewater Treatment Plant, and treatment of all separated industrial trade waste effluent to meet the Trade Waste Bylaw, has been lodged with the Hawke’s Bay Regional Council. A request for further information has been received and it will take until the end of March 2011 to complete the oceanographic work needed to collate the information. It is expected that the consent application will be notified after receipt of the additional information. The new treatment plant is programmed for commissioning during the last quarter of 2013.

91% of residents are satisfied with waste water in the NRB Customer Satisfaction Survey (target 85%).

Water Supply – 100% compliance with drinking water standards (target 100%).

95% of residents are satisfied with water supply in the NRB Customer Satisfaction Survey (target 95%).

100% compliance with resource consent parameters for solid waste, water supply, storm water, and waste water (target 100%). www.abovehawkesbay.co.nz

Water Supply A new 900m3 reservoir in Bay View is now in service to replace the original 200m3 reservoir. The net storage increase of 700m3 provides capacity for an additional 1,300 population.

All mains at the reservoir site were renewed in conjunction with this project to ensure continued supply reliability.

Completion of the Awatoto Water Trunk Main project was delayed due to a delay in the supply of some fittings. The trunk main is now expected to be commissioned before the end of 2010 and will provide increased supply capacity to the City for the coming summer.

With focus on these two projects work on the Water Pipes I.A.R. and Capital Upgrade Associated with I.A.R. has been delayed.

The new Taradale reservoir has been delayed for two years and budget will be carried forward. The replacement of the Water Supply Control System was delayed due to delays in obtaining equipment for evaluation. This equipment is now being evaluated and the system is expected to be in service by end of 2010/11 year.

Aerial view of cross country drain Napier City Council 24hrs/7 days

835 7579 www.napier.govt.nz

3

Financial Summary for the year ended 30 June 2010 Actual

Budget

Actual

2010

2010

2009

$000

$000

$000

Total Income

89,220

90,271

75,093

Less Operating Expenditure

72,358

73,759

70,112

424

1,124

747

69

117

207

Summary Statement of Comprehensive Income for the Year Ended 30 June 2010

Less Finance costs Share of associate surplus/(deficit) Income tax expense Surplus/(deficit) after tax Valuation gain/(loss) taken to equity Total comprehensive income

-

-

-

16,507

15,505

4,441

470

-

(1,200)

16,977

15,505

3,241

1,263,790

1,277,269

1,260,549

16,507

15,505

4,441

470

-

(1,200)

1,280,767

1,292,774

1,263,790

Statement of Changes in Equity for the Year Ended 30 June 2010 Balance at 1 July Surplus/(deficit) after tax Valuation gain/(loss) taken to Equity Total Equity Statement of Financial Position as at 30 June 2010 Total current assets

61,001

28,822

42,320

Total non-current assets

1,243,778

1,291,746

1,246,402

Total assets

1,304,779

1,320,568

1,288,722

Total current liabilities

13,796

13,423

14,617

Total non-current liabilities

10,216

14,371

10,315

Total liabilities Total public equity

24,012

27,794

24,932

1,280,767

1,292,774

1,263,790

Statement of Cash Flows for the Year Ended 30 June 2010 Net cash from operating activities

40,936

25,125

30,196

Net cash from investing activities

(40,200)

(24,670)

(23,300)

Net cash from financing activities

(1,023)

231

(4,559)

Net (decrease)/increase in cash, cash equivalents and bank overdrafts

(287)

686

2,337

Cash, cash equivalents and bank overdrafts at the beginning of the year

5,805

4,097

3,468

Cash, cash equivalents and bank overdrafts at the end of the year

5,518

4,783

5,805

1.

2.

3.

4.

Part 6 Section 98 (4) (b) of the Local Government Act 2002 requires Council to make publicly available a summary of information contained in its Annual Report.

The specific disclosures included in the summary financial report have been extracted from the full financial report and were authorised for issue by the Mayor and Chief Executive on 27 October 2010. This summary has been prepared in accordance with FRS-43: Summary Financial Statements.

The summary financial report cannot be expected to provide as complete an understanding as provided by the full financial report. The full financial report dated 6 October 2010 has received an unqualified audit report. A copy of the financial report may be obtained from Council’s offices.

This summary financial report has been examined by the auditor for consistency with the full financial report. An unqualified auditor’s report is included with this summary.

5.

6.

7.

8.

The Summary Financial Statements are for Napier City Council as an individual entity and are presented in New Zealand dollars rounded to $000’s The primary objective of Napier City Council is to provide goods and services for the community or social benefit rather than making a financial return. Accordingly, Napier City Council has designated itself as a public benefit entity for the purposes of New Zealand equivalents to NZ IFRS. There have been no significant events since balance date.

The full financial report was prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP) and comply with New Zealand equivalents to International Financial Reporting Standards (IFRS) as appropriate for public benefit entities.

Explanation of Major Variances Against Budget Explanations for major variations from Napier City Council’s estimated figures in the 2009/10 Annual Plan are as follows: Statement of Comprehensive Income Income Income is $1.0m below 2009/10 budget and $14.1m above 2008/09 year in total. Notes 4 and 5 detail income received for 2008/09 and 2009/10 years. These notes detail the income components of the items comprising ‘other revenue’ and ‘other gains/(losses)’. Significant items of variance to budget are: a) Finance income - this is the interest received by Council from placing cash on deposit, both short and medium term, with banks or in corporate bonds. The income received is above budget due to higher than budget average interest rates achieved during 2009/10 ($375,000 increase), and from having higher than budget cash on deposit during 2009/10 ($734,000 increase). b) Other revenue - The current slow down in housing and subdivision development is reflected in the other revenue for 2009/10. Revenues from financial contributions and vested assets from the private sector are $2.0m below budget and revenue from Council’s Parklands Residential Development, combined section sales and vested assets, is $1.4m below budget for the year. These reductions have been offset by revenues from donations and grants $4.7m above budget. The most significant donation received was from the McLean Park Trust for the development of the Graeme Lowe Stand of $4.0m. At the time budgets

4

Napier City Council 24hrs/7 days

835 7579 www.napier.govt.nz

c)

were prepared, it was anticipated that this donation would be received in the 2008/09 year.

Additional unbudgeted donations of $0.5m were received for the Museum building project.

These were from the Dobson Trust $479,000 and the Kingdom Foundation $50,000. These donations are held in a separate fund and will be applied to the cost of the new building during the course of the building project Other gains/(losses) are $4.2m below budget. BERL forecast price change indexes were used in the budget preparation process. Based on these indexes it was anticipated that there would be a small increase in the value of Council’s investment property for the 2009/10 year of $1.2m. The valuation undertaken at 30 June assessed that there was a reduction in investment property values since 2008/09 of -$1.4m.

Expenditure Total expenditure is $2.1m below budget and $1.9m above 2008/09 actual outcome. Significant items of variance are as follows: a) Employee benefit expenses were $0.7m or 3% above budget and $0.4m or 2% above 2008/09 year. The difference between 2008/09 actual costs and 2009/10 actual costs was due to: - Full Time Equivalents ‘FTE’s’ hours worked were 0.6% above 2008/09 or $0.1m, - Increased holiday pay accruals $0.1m - Increase in the average hourly cost per FTE of 1% or $0.2m.

The average hourly cost increase includes additional costs arising from the employer

Explanation of Major Variances Against Budget continued

b) c)

d)

subsidy cost of increased staff participation in the Kiwi saver scheme between 2008/09 year and 2009/10 year. The 2009/10 budget was prepared on the basis of FTE hours and costs at September 2008.

Depreciation charges were $1.3m below budget for the year. This variance to budget arises from timing differences of capital additions between budget 2009/10 and actual 2009/10.

Other expenses are $0.7m below 2009/10 budget and $1.0m above 2008/09. The cost of development of residential sections sold were $2.3m above 2009/10 year budget due to the increase in the number of sections sold in 2009/10 (40% above budget quantity).

This increase of costs was offset by below budget operating costs refuse -$0.7m including lower operating costs Omarunui landfill -$0.5m, lower refuse costs due to reduced volume and lower litter collection costs -$0.2m. In addition Council building and rental housing maintenance was -$0.4m below budget, roading maintenance expenditure -$0.4m and -$0.2 decrease in potential liabilities arising from guarantees to community organisations.

During the 2009/10 year significant internal works, both capital and operating, were undertaken by Council staff. This resulted in recoveries from jobs, plant and labour of -$1.3m above the level budgeted for 2009/10. Variances between 2008/09 year and 2009/10 include the cost of development of residential sections sold which were $3.4m above 2008/09 year due to the increase in the number of sections sold in 2009/10 and refuse costs which were $0.5m above 2008/09. Cost increases in refuse included increased recycling costs and increased landfill costs arising from the central government landfill levy.

Increased costs between the 2 years were offset by costs incurred in 2008/09 and not in 2009/10. These included a change in the value of guarantees to community organisations -$1.0m, inner harbour dredging -$0.6 (undertaken every 3 - 5 years), contribution to Hawke’s Bay Inc. -$0.4m which was taken over by Hawke’s Bay Regional Council from 2009/10 year, lower roading maintenance expenditure -$0.4m and lower Council building and rental housing maintenance -$0.4m. In addition internal recoveries from jobs, plant and labour were above 2008/09 by $0.6m.

Finance costs were -$0.7 below 2009/10 budget and -$0.3 below 2008/09 levels. This was due lower average loans than 2009/10 budget and the 2008/09 year.

Statement of Financial Position Current Assets Significant variances in current assets are: a) The current portion of other financial assets consisted of cash on deposit where the deposit is held for more than 3 months and investments in local authority stock. At 30 June 2010 funds held in this classification were $34.8m above budget and $20.4m above 2008/09.

The reasons for the variance in this item are reflected in the Statement of Cash Flow.

Cash from operating activities is $15.8m above budget and $10.7m above 2008/09. This is the result of a combination of items including revenue above budget $6.0m McLean Park (partially included in prior year budgets) from grants, donations the sale of corporate boxes and the sale of naming rights, sale of residential sections at Parklands $2.1m above budget, payments to suppliers and employees $6.7m below budget, interest received $0.4m above budget and interest paid $0.7m below budget. In addition cash outflows for fixed assets purchases were $10.7m below budget. Council also started the year with cash on deposit $8.6m above that opening balance anticipated in the 2009/10 budget. The significant variances between 2008/09 year and 2009/10 year arose from the additional revenue received for the McLean Park project $6.0m, additional Parklands residential section sales $4.7m and lower fixed assets purchases 2009/10 than 2008/09 $7.9m. b) The current asset portion of inventories are below budget for 2009/10 year $2.3m. This is due to Parklands residential section sales above budget for 2009/10 and a higher portion of non-current inventory than that anticipated in the preparation of the 2009/10 budget.

Non-Current Assets Significant variances in non-current assets are: a) Property, plant and equipment was $34.8m below budget at year end. This is attributable to expenditure below budget $17.0m and opening fixed assets $17.3 below the value anticipated in the budget. $2.8m of the lower expenditure in the 2009/10 year was as a result of significantly lower than budget vested assets. The remainder, $14.2m, comprises projects that will be carried forward to 2010/11 year and amounts set aside for infrastructure asset renewal (IAR). b) Investment properties are revalued annually and at 30 June 2010 the valuation was lower than budget expectations. As noted above for Income - Other gains and losses it was expected during the budget process that investment properties would increase in value in the 2009/10 year by $1.2m. However the valuation of these properties resulted in a further decrease from the 2008/09 year of -$1.4m. The balance of the difference between 2009/10 budget and 2009/10 outturn arose from a lower opening value than that anticipated in the budget. c) Other financial assets comprise corporate bonds, local authority stock and unlisted shares. During the 2008/09 year this classification also included some term deposits.

The variance between budget 2009/10, 2008/09 actual and 2009/10 actual arises from a move to maintain cash assets in shorter term deposits rather than deposits for a period of more than 12 months. There were no term deposits classified as non-current at 30 June 2010. The budget was prepared on the basis that some cash assets, in line with 2008/09, would be held on deposit with repayment due more than 12 months in the future. See also current assets a) above.

Current Liabilities Significant variances in current liabilities are: a) Employee benefit liabilities classified as current were $0.7m above budget. However, this difference is $0.4m when both current and Non-Current employee benefit liabilities are viewed as a single item. Both current and non-current values are in line with 2008/09 actual amounts.

Non-Current Liabilities Significant variances in non-current liabilities are: a) Revenue received in advance relates largely to McLean Park corporate boxes where the licence to occupy is granted for 10 years. Under NZ IAS revenue received for these licences, although the cash has been received, is required to be allocated over the 10 years of the box holder licence. The amount included in this classification is for the 8 years from 2011/12 to 2018/19. b) Borrowings are $6.7m lower than budget for the period. This arises from loan funds budgeted but not yet drawn for projects planned to be in progress or completed either in 2009/10 or earlier. Funding of projects by internal loan, when cash flow requirements permit, have also reduced actual external borrowings required compared to the position forecast when the budget was prepared.IL Annual Report 2009/2010 35 Equity Significant variances in equity are; a) Retained earnings are $9.9m below budget for the 2009/10 year. This resulted from a lower opening retained earnings balance than budgeted, $12.1m, and was offset by above budget transfers from revaluation reserves on sale of assets to retained earnings.

Statement of Movements In Equity There are no significant variances in the statement of movements in equity for the year ended 30 June 2010.

Audit Report Audit Report To the readers of Napier City Council’s summary annual financial statements, activity statements and the other requirements for the year ended 30 June 2010 We have audited the summary financial statements, activity statements and the other requirements of Schedule 10 of the Local Government Act 2002 as set out in pages 1 to 8.

Unqualified opinion In our opinion: 

the summary financial statements, activity statements and the other requirements represent, fairly and consistently, the information regarding the major matters dealt with in the annual report; and



the information reported in the summary financial statements, activity statements and the other requirements complies with FRS-43: Summary Financial Statements and is consistent with the full financial statements, activity statements and the other requirements from which they are derived.

We expressed an unqualified audit opinion, in our report dated 6 October 2010, on: 

the full financial statements;



the activity statements; and



the Council and group’s compliance with the other requirements of Schedule 10 of the Local Government Act 2002 that are applicable to the annual report.

Basis of opinion Our audit was conducted in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards. Other than in our capacity as auditor, we have no relationship with or interests in Napier City Council.

Responsibilities of the Council and the Auditor The Council is responsible for preparing the summary financial statements, activity statements and the other requirements of Schedule 10 of the Local Government Act 2002 and we are responsible for expressing an opinion on those summary financial statements, activity statements and the other requirements of Schedule 10 of the Local Government Act 2002. These responsibilities arise from the Local Government Act 2002.

Pania of the Reef and Tom Parker Fountain, Marine Parade

Mark Maloney Audit New Zealand On behalf of the Auditor-General Palmerston North, New Zealand 27 October 2010

Napier City Council 24hrs/7 days

835 7579 www.napier.govt.nz

5

Property Assets

City Promotion

Council’s property assets include the Lagoon Farm, Parklands Residential Development and Property Holdings.

Council activities City and Business Promotion, City Promotion Grants, Marineland of NZ, National Aquarium of NZ, Napier i-SITE Visitor Centre, Par 2 MiniGolf and Kennedy Park.

Council is now able to provide significant project funding from surpluses of the Parklands Subdivision for projects that would otherwise not have been able to be included in the capital plan or would have resulted in a direct impact on rates. The projects included in the 2010/11 Annual Plan are Planting and Landscaping, Lagoon Farm Business Park, Marine Parade/CBD Upgrade and Council Chambers and Weatherproofing.

Marineland As part of the Annual Plan consultation, submissions on Marineland were received. Research of an option for the Marineland site is ongoing. Information from the submitters is being considered and further consultation will be undertaken at the appropriate time.

Kennedy Park

Business Park Proposal Like other sectors of the economy the requirements for business development are forever changing. The Napier City Council believes that taking a proactive approach in meeting the changing land needs of all of the City’s business sectors is the most beneficial way to plan for growth while avoiding and minimising any adverse effects associated with development.

The Business Park Zone was created to meet an identified regional need for a zone where industry/business interests could establish businesses on larger sites in a high quality environment. The intention is that this zone will compliment and not compete with the established industrial zones. The zone is located on part of the Lagoon Farm backing onto the ecologically important Ahuriri Estuary. The sensitive nature of the site and its proximity to the Hawke’s Bay Airport and the ecologically significant Ahuriri Estuary mean that any activities must be low impact and environmentally aware.

The replacement cabins project was completed on time and within budget in December 2009. Other capital projects identified in last year’s Annual Plan have been temporarily deferred.

Performance Measures City and Business Promotion – 109 Be Your Own Boss clients serviced (target 108) National Aquarium of NZ – 99,216 visitors (target 96,000) Napier i-SITE Visitor Centre – 9,824 information packs and e-mails distributed (target 2,800). The target was exceeded due to the popularity of e-mails.

Kennedy Park – 28,153 room nights booked (target 33,000).

The Business Park is located on Council owned land. It is intended that the land will be developed in a staged manner over time in response to industry driven demand for industrial developments on larger sites that rely on technology and do not create the discharges or other environmental effects usually associated with ‘heavy’ industrial activity. Consideration may be given to entering into a strategic alliance with an appropriate partner to develop the land as a means of reducing risk.

Development of the land in utility terms is expected to ultimately be cost neutral with the costs of developing the land being recouped off the end users of the land via development contributions and/ or financial contributions in accordance with Council’s philosophy of any new development being required to pay its fair share of the costs of providing services necessary to support that development in order to avoid, remedy or mitigate the effects of such development.

Soundshell, Napier i-SITE and Par 2 Golf, Marine Parade

Performance Measures 30 lots were created in the Parklands Residential Development. (target 41) The number of lots created is aimed at demand rather than target.

Sunken Gardens , Marine Parade

Veronica Sun Bay and Rotary Pathway, Marine Parade

6

Napier City Council 24hrs/7 days

835 7579 www.napier.govt.nz

Planning and Regulatory Activities required by legislation are City Development Planning, Regulatory Consents, Building Consents, Animal Control and Environmental Health Services. Parking is also included in this group.

Customer Satisfaction Survey:

Parking

Animal Control – 99.5% complaints investigated within 5 working days (target 100%). Staff illness and rostered days off account for the few delays.

The Taradale Town Centre Upgrade is under way and Pay and Display parking meters will be introduced in Taradale late 2010.

The decision to delay the introduction of charging for parking will give local residents time to adjust to the new layout and charging regime and alterations to the time restrictions.

One large single factor that may impact Napier City parking demand is the potential development of land that is currently used for parking close to the CBD. This would cause the displacement of 250 vehicles currently parking free of charge. At present there are no plans for development of the “free parking” site. Accordingly, with the current economic climate, work towards the development of a multi-level parking building is on hold. Peripheral development may still occur to enhance current parking facilities or assist is preparation for the future multi-level facility.

Inner City

64% (target 60%)

Suburbs

72% (target 80%)

Building Consents – 99.6% (1,212 of 1,217) processed within 20 working days (target 100%) Building Consent Accreditation (BCA) and International Organisation for Standardisation (ISO) accreditation maintained.

Heretaunga Plains Urban Development Study (HPUDS) Hastings District Council, Hawke’s Bay Regional Council and Napier City Council have recently collaborated on developing a strategy for the future development of the Heretaunga Plains from 2015 through to 2045. The chosen option was to encourage more intensive development within the present urban boundaries rather than spreading across the versatile soils that are needed for future food production.

The findings of HPUDs will be incorporated in the Regional and District Plans, in the decisions on when and where development occurs in the Long Term Council Community Plans and in the individual council budgets. It is intended to review HPUDs after each 5 year census.

The HPUDs scenario is for a total of 8200 extra people living on the Heretaunga Plains area by 2045, and 8000 extra houses or dwelling units. During the period up to 2045 the average number of people per household is expected to drop and the nature of the housing development will change.

The average age of the overall population will increase. The most obvious effect of the strategy will be seen in the residential development in Napier. The main areas for residential development are;

Taradale Shopping Centre upgrade

Democracy and Governance Through Democracy and Governance Council provides a democratic and consultative system for decision making.

Council prepared for the Napier City Council election held on 9 October 2010.

Performance Measures 75% residents satisfied with sufficiency of Public Information Supplied in the NRB Customer Satisfaction Survey (target 75%)

Council as at 30 June 2010 Mayor Barbara Arnott

-

Te Awa

Maxine Boag

(Nelson Park Ward)

-

Mission Heights in Poraiti

John Cocking

(At Large)

-

Parklands Oroutu

Bill Dalton

(At Large)

-

Bay View

Kathie Furlong

(At Large)

The areas for industrial and commercial development in Napier will be largely unchanged from the present. It is likely that the bulk of future industrial in the Heretaunga Plains area development will be located within the Whakatu and Tomoana areas at Hastings.

Mark Herbert

(Ahuriri Ward)

Tony Jeffery

(At Large)

Harry Lawson

(At Large)

The bulk of the new residential development within Napier will be done by individual private developers who will meet the cost of the development and make financial contributions towards the provision of public infrastructure. Napier City Council will also need to fund a proportion of the infrastructure costs. This funding is likely to come from general rates.

Rob Lutter

(Taradale Ward)

Dave Pipe

(Nelson Park Ward)

Keith Price

(Onekawa/Tamatea Ward)

Faye White

(At Large)

Tania Wright

(Taradale Ward)

There will be transportation and roading effects from HPUDs, and the information from this study will be used to help formulate the transportation plans for the Heretaunga Plains. The roading projects will be paid for by a mixture of central and local government funding.

Maori Consultative Committee Bevan Taylor

Tipu Tareha

Performance Measures

Te Reo Spooner

Dan Wakefield

Environment Health – All Food and Non-Food premises were inspected (target 100%)

Riordan Kemp

Parking – Percentage of residents satisfied with parking in the NRB

Napier City Council 24hrs/7 days

835 7579 www.napier.govt.nz

7

Roading

Recreation

The city’s road network provides accessibility to Napier residents and visitors within a safe, clean and aesthetic environment.

Recreation activities include Sportsgrounds, the Napier Aquatic Centre, Marine Parade Pools (managed by external contract), Reserves and the Inner Harbour.

Roading Projects

Sportsgrounds

Major projects for the year were:

Construction of the Graeme Lowe Stand at McLean Park was completed. The new stand increased the park’s seated capacity to approximately 8,400, and further enhanced McLean Park’s corporate facilities, with the addition of two corporate lounges and 26 corporate boxes. The stand was opened for the Magpies’ first home game of the Air New Zealand Cup.

-

Taradale Town Centre upgrade

-

Roading capital projects (bulk funded)

-

Transportation proposals

-

Cycleway projects

Crash Statistics The number of injury crashes over the past two years is showing a trend upwards. While this is somewhat concerning it has to be remembered that Council is only one part of the road safety equation. Enforcement undertaken by the Police and Education, which in the past has been largely undertaken

by Roadsafe HB and the Police both have a major impact on crash statistics.

While full analysis of the data will be undertaken as part of the upcoming Crash Reduction Study, it is evident from the base information that “road factors”, as a contributor to a crash, is present in less than 30% of recorded crashes. The road factors or the engineering of a road are the main areas where Council has influence.

Council will continue to work with its road safety partners to try to reduce the number of road crashes on our network. Council will also be undertaking a formal Crash Reduction Study over the coming months to determine if there are sites that would benefit from low cost remedial measures and we will continue to safety audit all major road work proposals.

Reduced NZTA funding As a result of the Government’s revised targets for the Land Transport Programme, subsidy levels for maintenance and renewal works for the three years from 2009/10 to 2011/12 have been reduced by approximately 10%. The Council decided to “fund” the shortfall in the 2009/10 year from outturn surplus from the 2008/09 year. Therefore there has been no impact on the level of service to date. For the coming two years however careful prioritisation of works will be required to minimise any adverse affect of this shortfall in funding.

Increase in Mass and Dimensions for Trucks Council is working with NZTA and their consultants to accurately determine the likely effects of the increased mass and dimension of trucks on parts of the network. Initial indications are that the effect on straight sections of road are likely to be minimal (less than 5% increase in maintenance and renewal) largely because the increased tonnage per vehicle is expected to result in less vehicles on the road. The effects on high stress areas however, (intersections and tight bends) could be more pronounced because of the additional shear forces generated by the additional axle loadings.

Three new light towers (two additional) and generator power were installed at McLean Park, ensuring some of the best and most reliable lighting of any outdoor venue in the country.

The ongoing project to upgrade sportsground irrigation progressed, with two upgrades implemented at Park Island (Bluewater Stadium and Tremain Field).

Planting and Landscaping – Greening of Napier A report on the programme was prepared by consultants, Isthmus Group Limited, which identified priority streets for the project. The first stage has been completed with plantings down Prebensen Drive from the Expressway to Church Road.

Whakarire Ave Breakwater and Westshore Beach Reprofiling The remainder of funding for the reprofiling of Westshore Beach and the Whakarire Ave Breakwater is included in the Capital Plan. The total of $1.314 million for the Breakwater and $2.473 million for the Beach reprofiling will be funded by loan.

Council is currently preparing a Resource Consent application for the replacement of the Whakarire Ave breakwater.

Napier Aquatic Centre A condition report was carried out in May 2010 on the Napier Aquatic Centre old 25m pool. No remedial work is needed at this time and another report will be carried out in 2012.

Performance Measures Sportsgrounds – 91% residents satisfied with Parks and Sportsfields in the NRB Customer Satisfaction Survey (target 92%) Napier Aquatic Centre – 97% water quality adherence rate (target 95%) Reserves – 198,290 annuals propagated throughout the City (target 180,000)

and

Performance Measures 87% residents satisfied with footpaths in the NRB Customer Satisfaction Survey (target 82%) and 91% residents satisfied with roads (target 87%).

Centennial Park Waterwheel, Taradale

8

Napier City Council 24hrs/7 days

835 7579 www.napier.govt.nz

planted